UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM N-CSR |
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT |
INVESTMENT COMPANIES |
Investment Company Act file number 811-6490
Dreyfus Premier International Funds, Inc. |
(Exact name of Registrant as specified in charter) |
c/o The Dreyfus Corporation |
200 Park Avenue |
New York, New York 10166 |
(Address of principal executive offices) (Zip code) |
Mark N. Jacobs, Esq. |
200 Park Avenue |
New York, New York 10166 |
(Name and address of agent for service) |
Registrant's telephone number, including area code: | (212) 922-6000 | |||
Date of fiscal year end: | 10/31 | |||
Date of reporting period: | 4/30/06 |
FORM N-CSR |
Item 1. | Reports to Stockholders. |
Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.
The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
Contents | ||
THE FUND | ||
2 | Letter from the Chairman | |
3 | Discussion of Fund Performance | |
6 | Understanding Your Fund’s Expenses | |
6 | Comparing Your Fund’s Expenses | |
With Those of Other Funds | ||
7 | Statement of Investments | |
10 | Statement of Assets and Liabilities | |
11 | Statement of Operations | |
12 | Statement of Changes in Net Assets | |
15 | Financial Highlights | |
20 | Notes to Financial Statements | |
FOR MORE INFORMATION | ||
Back Cover |
LETTER FROM THE CHAIRMAN
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Greater China Fund, covering the six-month period from November 1, 2005, through April 30, 2006.
International stock markets have continued to rally, boosted by continued expectations for low inflation, relatively benign monetary policies among central banks and the recovery of domestic consumption in Japan and Europe. Although stock prices have increased over the past few years, so have earnings for most international companies, keeping valuations at what we believe to be reasonable levels.
Our international portfolio managers report that they are beginning to see early signs of a potentially broader market advance, beyond merely the energy and mining sectors that have led the rally so far. In Europe, high-profile mergers and acquisitions in the financial services, pharmaceuticals and industrials sectors have supported a generally upbeat economic outlook. While Japan recently has lagged Europe, greater economic stability and liquidity have brought an end to price deflation, which may support further gains if interest rates rise only moderately as the global economic cycle matures. As always, we urge you to discuss with your financial advisor the potential implications of these possibilities on your investments.
For information about how the fund performed, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s portfolio manager.
Thank you for your continued confidence and support.
Stephen E. Canter Chairman and Chief Executive Officer The Dreyfus Corporation May 15, 2006 |
2 |
DISCUSSION OF FUND PERFORMANCE
Adrian Au, Portfolio Manager
How did Dreyfus Premier Greater China Fund perform relative to its benchmark?
For the six-month period ended April 30, 2006, the fund’s Class A, B, C, R and T shares produced total returns of 61.28%, 60.66%, 60.68%, 61.55% and 60.97%, respectively.1 In contrast, the fund’s benchmark, the Hang Seng Index (the “Index”), produced a total return of 17.34% for the same period.2
A rapidly growing Chinese economy propelled its stock market higher during the reporting period. The fund significantly outperformed its benchmark, partly due to its emphasis on fast-growing midcap companies that are not part of the Index as well as our focus on businesses benefiting from greater domestic consumption. These returns were achieved during the market conditions that were favorable for companies in the Chinese market in general, and the fund’s investment strategy in particular.These types of returns should not be expected to continue.
What is the fund’s investment approach?
The fund seeks long-term capital appreciation.The fund normally invests at least 80% of its assets in stocks of companies that (i) are principally traded in China, Hong Kong or Taiwan (Greater China), (ii) derive at least 50% of their revenues from Greater China, or (iii) have at least 50% of their assets in Greater China.The fund’s investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings.To determine where the fund will invest, the portfolio manager analyzes several factors, including economic and political trends in Greater China; the current financial condition and future prospects of individual companies and sectors in the region; and the valuation of one market or company relative to that of another.
We generally seek companies with accelerating earnings outlooks and whose share prices appear to be reasonably valued relative to their growth potential. Characteristics of such companies include high-quality management with a commitment to increasing shareholder value, strong earnings momentum with consistent free cash flow
The Fund 3 |
DISCUSSION OF FUND PERFORMANCE (continued) |
generation, sound business fundamentals and long-term vision. Generally, the companies in which the fund invests have leadership potential in their respective industries, with strong recognition.
Many of the securities in which the fund invests are denominated in foreign currencies, such as Hong Kong dollars or Taiwan dollars. To protect the fund against potential depreciation of the region’s currencies versus the U.S. dollar, the fund may engage in currency hedging.
What other factors influenced the fund’s performance?
Economic growth in China continued to exceed expectations during the reporting period, with GDP growth advancing at an annualized rate of 10.2% during the first quarter of 2006.As a result, China’s stock market rose sharply, with particular strength among midcap stocks that tend to benefit when investors are more comfortable assuming risk. In addition, the fund benefited from the success of sector allocation and security selection strategies, which emphasized midcap companies and businesses prospering in a strong domestic economy.
Financial services stocks were among the greater beneficiaries of the strong economy, primarily due to higher rates of loan growth and government deregulation. For example, China Construction Bank and China Life Insurance posted gains after the government granted them permission to enter allied businesses. Commodity stocks represented another main driver of performance, as strong demand sent the stock prices of Jiangxi Copper, Zijin Mining Group and Xiwang Sugar Holdings higher. Retail stocks also gained value as the government continued to encourage domestic consumption to achieve a better balance between the consumer and industrial sectors of the economy. Parkson Retail Group, a leading operator of department stores, delivered high levels of earnings growth through store expansion.
In Taiwan, wireless telephone handset manufacturers such as High Tech Computer and Compal Communications fared well amid strong demand for replacement products in developed markets and new customers in emerging markets. However, semiconductor stocks in Taiwan stalled when Microsoft, a major customer, announced delays in its next-generation computer operating system.
4 |
What is the fund’s current strategy?
Despite a move in late April by China’s Central Bank to raise short-term interest rates in an attempt to forestall potential inflationary pressures, we believe that Chinese companies could continue to benefit from a strong economy.While some investors may recall the negative impact on stock prices of the last rate hike in 2004, we believe that economic conditions are more stable today. Indicators of a potentially overheated economy —such as inflation, fixed asset investment growth and money supply growth — have remained subdued compared to the peak levels of 2004. More important, issues such as transportation bottlenecks that contributed to inflationary pressures in 2004 appear to be under control.
We recently have identified several new areas of potential growth. For example, the Chinese government has announced a series of measures designed to improve rural living standards, including the repeal of the income tax on farmers, free education, improved medical care and land reforms. Accordingly, we recently established positions in companies that we expect to benefit from rural spending, such as manufacturers of farm machinery, fertilizer and Chinese herbal medicine. We also have increased the fund’s exposure to environmental services providers, such as water supply and sewage treatment companies.
May 15, 2006 |
Emerging markets, such as those of China and Taiwan, tend to be more volatile than the markets | ||
of more mature economies, and generally have less diverse and less mature economic structures and | ||
less stable political systems than those of developed countries.The securities of companies located in | ||
emerging markets are often subject to rapid and large changes in price. An investment in this fund | ||
should be considered only as a supplement to a complete investment program. | ||
1 | Total return includes reinvestment of dividends and any capital gains paid, and does not take into | |
consideration the maximum initial sales charges in the case of Class A and Class T shares, or the | ||
applicable contingent deferred sales charges 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. | ||
A significant portion of the fund’s performance is attributable to positive returns from its | ||
initial public offering (IPO) investments.There can be no guarantee that IPOs will have or | ||
continue to have a positive effect on the fund’s performance. IPOs tend to have a reduced | ||
effect on performance as a fund’s asset base grows. | ||
2 | SOURCE: BLOOMBERG L.P. – Reflects reinvestment of net dividends and, where | |
applicable, capital gain distributions.The Hang Seng Index is a capitalization-weighted index of | ||
approximately 33 companies that represent 70 percent of the total market capitalization of the | ||
Stock Exchange of Hong Kong.The components of the index are divided into 4 subindices: | ||
Commerce, Finance, Utilities and Properties. |
The Fund 5
U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Premier Greater China Fund from November 1, 2005 to April 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
Expenses and Value of a $1,000 Investment | ||||||||||
assuming actual returns for the six months ended April 30, 2006 | ||||||||||
Class A | Class B | Class C | Class R | Class T | ||||||
Expenses paid per $1,000 † | $ 12.37 | $ 17.64 | $ 17.39 | $ 10.31 | $ 15.46 | |||||
Ending value (after expenses) | $1,612.80 | $1,606.60 | $1,606.80 | $1,615.50 | $1,609.70 |
COMPARING YOUR FUND’S EXPENSES |
WITH THOSE OF OTHER FUNDS (Unaudited) |
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2006
Class A | Class B | Class C | Class R | Class T | ||||||
Expenses paid per $1,000 † | $ 9.54 | $ 13.61 | $ 13.42 | $ 7.95 | $ 11.93 | |||||
Ending value (after expenses) | $1,015.32 | $1,011.26 | $1,011.46 | $1,016.91 | $1,012.94 |
† Expenses are equal to the fund’s annualized expense ratio of 1.91% for Class A, 2.73% for Class B, 2.69% for Class C, 1.59% for Class R and 2.39% for Class T; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
6 |
STATEMENT OF INVESTMENTS |
April 30, 2006 (Unaudited) |
Common Stocks—94.8% | Shares | Value ($) | ||||
China—53.0% | ||||||
Aluminum Corp. of China, Cl. H | 3,178,000 | 3,135,699 | ||||
Beijing Capital Land, Cl. H | 9,574,000 | 3,735,406 | ||||
Bio-Treat Technology | 3,241,000 | 2,705,958 | ||||
Celestial NutriFoods | 5,844,000 | 5,507,628 | ||||
China Construction Bank, Cl. H | 5,790,000 | a | 2,501,741 | |||
China Fishery Group | 1,188,000 | 2,524,782 | ||||
China Life Insurance, Cl. H | 6,463,000 | 8,752,709 | ||||
China Milk Products Group | 7,750,000 | b | 6,372,549 | |||
China Oilfield Services, Cl. H | 9,594,000 | 5,351,861 | ||||
China Shineway Pharmaceutical Group | 6,778,000 | 5,595,006 | ||||
Dongfang Electrical Machinery, Cl. H | 3,372,000 | 6,958,675 | ||||
Dongfeng Motor Group, Cl. H | 5,350,000 | b | 2,656,645 | |||
Golden Eagle Retail Group | 4,425,000 | b | 2,468,416 | |||
Golding Soft | 5,220,000 | b | 12,455 | |||
Guangshen Railway, Cl. H | 9,272,000 | 3,557,783 | ||||
Harbin Power Equipment, Cl. H | 9,836,000 | 9,007,326 | ||||
Jiangxi Copper, Cl. H | 8,600,000 | 9,040,138 | ||||
PetroChina, Cl. H | 8,230,000 | 9,075,801 | ||||
PICC Property & Casualty, Cl. H | 12,708,000 | 4,589,382 | ||||
Shanghai Electric Group | 12,500,000 | 4,836,713 | ||||
Shanghai Zhenhua Port Machinery, Cl. B | 1,469,058 | 2,921,956 | ||||
Sino-Environment Technology Group | 4,240,000 | b | 2,038,204 | |||
Sinopec Shanghai Petrochemical, Cl. H | 5,450,000 | b | 3,233,504 | |||
Sohu.com | 200,000 | b | 5,550,000 | |||
Tencent Holdings | 1,922,000 | 3,879,598 | ||||
The9, ADR | 155,800 | b | 4,672,442 | |||
Tom Online | 12,784,000 | b | 4,122,169 | |||
Tong Ren Tang Technologies, Cl. H | 2,321,000 | 5,148,997 | ||||
Xinjiang Tianye Water Saving Irrigation System | 15,510,000 | 5,151,196 | ||||
Zijin Mining Group, Cl. H | 14,836,000 | 8,323,866 | ||||
ZTE, Cl. H | 1,525,200 | 5,213,047 | ||||
148,641,652 | ||||||
Hong Kong—35.8% | ||||||
Beijing Enterprises Holdings | 2,025,000 | 4,440,102 | ||||
Cheung Kong Holdings | 360,000 | 4,058,195 | ||||
China Mengniu Dairy | 4,672,000 | 5,332,921 |
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Common Stocks (continued) | Shares | Value ($) | ||||
Hong Kong (continued) | ||||||
China Mobile (Hong Kong) | 700,000 | 4,071,867 | ||||
China Overseas Land & Investment | 4,400,000 | 2,823,350 | ||||
China Sciences Conservational Power | 19,450,000 | b,c | 878,025 | |||
CNOOC | 6,452,000 | 5,201,078 | ||||
Henderson Land Development | 1,152,000 | 6,767,993 | ||||
Hongkong Land Holdings | 945,000 | 3,704,400 | ||||
HSBC Holdings (warrants 6/19/2006) | 28,100,000 | b | 1,594,696 | |||
HSBC Holdings (warrants 7/3/2006) | 10,000,000 | b | 722,282 | |||
Hua Han Bio-Pharmaceutical Holdings, Cl. H | 22,572,000 | 4,192,292 | ||||
Jiangxi Copper (warrants 8/30/06) | 578,000 | b | 283,289 | |||
Kerry Properties | 1,713,500 | 6,077,652 | ||||
Lifestyle International Holdings | 1,818,500 | 3,060,856 | ||||
Lung Kee (Bermuda) Holdings | 382,500 | 273,806 | ||||
MTR | 2,090,000 | 5,580,019 | ||||
New Heritage Holdings | 15,700,000 | 1,538,977 | ||||
NWS Holdings | 3,102,000 | 5,661,314 | ||||
Parkson Retail Group | 1,951,000 | 6,391,606 | ||||
PetroChina, Cl. H (warrants 5/10/2006) | 8,280,000 | b | 2,189,290 | |||
Sinochem Hong Kong Holdings | 17,480,000 | 7,383,661 | ||||
Tianjin Development Holdings | 8,770,000 | 6,899,990 | ||||
Wing Hang Bank | 549,000 | 5,098,282 | ||||
Xiwang Sugar Holdings | 9,224,000 | 6,305,422 | ||||
100,531,365 | ||||||
Taiwan—5.1% | ||||||
Compal Communications | 564,500 | b | 3,963,080 | |||
Everlight Electronics | 426 | b | 1,211 | |||
King Yuan Electronics | 4,930,000 | b | 5,492,972 | |||
Shin Kong Financial Holding | 4,500,000 | b | 4,795,261 | |||
14,252,524 | ||||||
United States—.9% | ||||||
Far East Energy | 1,250,000 | b | 2,575,000 | |||
Far East Energy (warrants) | 625,000 | b | 0 | |||
2,575,000 | ||||||
Total Common Stocks | ||||||
(cost $197,191,828) | 266,000,541 |
8 |
Option—.1% | Contracts | Value ($) | ||
Put Option | ||||
Hang Seng China Enterprises Index | ||||
Sept. 2006 @ 6500 HKD | ||||
(cost $502,745) | 200 | 410,153 | ||
Total Investments (cost $197,694,573) | 94.9% | 266,410,694 | ||
Cash and Receivables (Net) | 5.1% | 14,273,645 | ||
Net Assets | 100.0% | 280,684,339 | ||
ADR—American Depository Receipts. | ||||
a 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 April 30, 2006 this security | ||||
amounted to $2,501,741 or .9% of net assets. | ||||
b Non-income producing security. | ||||
c The value of this security has been determined in good faith under the direction of the Board of Directors. |
Portfolio Summary (Unaudited) † | ||||||
Value (%) | Value (%) | |||||
Finance | 20.3 | Consumer Discretionary | 7.7 | |||
Industrial | 17.3 | Health Care | 5.3 | |||
Technology | 11.7 | Telecommunications | 1.5 | |||
Consumer Staples | 11.2 | Options | .1 | |||
Materials | 10.8 | |||||
Energy | 9.0 | 94.9 | ||||
† Based on net assets. | ||||||
See notes to financial statements. |
The Fund 9 |
STATEMENT OF ASSETS AND LIABILITIES |
April 30, 2006 (Unaudited) |
Cost | Value | |||||||||
Assets ($): | ||||||||||
Investments in securities—See Statement of Investments | 197,694,573 | 266,410,694 | ||||||||
Cash | 5,808,898 | |||||||||
Cash denominated in foreign currencies | 7,239,359 | 7,269,791 | ||||||||
Receivable for shares of Common Stock subscribed | 4,842,369 | |||||||||
Dividends receivable | 1,263,466 | |||||||||
Receivable for investment securities sold | 393,769 | |||||||||
Prepaid expenses | 61,730 | |||||||||
286,050,717 | ||||||||||
Liabilities ($): | ||||||||||
Due to The Dreyfus Corporation and affiliates—Note 3(c) | 398,248 | |||||||||
Payable for investment securities purchased | 4,308,347 | |||||||||
Payable for shares of Common Stock redeemed | 491,878 | |||||||||
Accrued expenses | 167,905 | |||||||||
5,366,378 | ||||||||||
Net Assets ($) | 280,684,339 | |||||||||
Composition of Net Assets ($): | ||||||||||
Paid-in capital | 199,364,611 | |||||||||
Accumulated investment (loss)—net | (489,720) | |||||||||
Accumulated net realized gain (loss) on investments | 13,065,829 | |||||||||
Accumulated net unrealized appreciation (depreciation) | ||||||||||
on investments, foreign currency transactions | ||||||||||
and options transactions | 68,743,619 | |||||||||
Net Assets ($) | 280,684,339 | |||||||||
Net Asset Value Per Share | ||||||||||
Class A | Class B | Class C | Class R | Class T | ||||||
Net Assets ($) | 152,465,826 | 34,693,018 | 75,030,755 | 17,143,027 | 1,351,713 | |||||
Shares Outstanding | 4,896,489 | 1,165,405 | 2,518,638 | 544,089 | 44,414 | |||||
Net Asset Value | ||||||||||
Per Share ($) | 31.14 | 29.77 | 29.79 | 31.51 | 30.43 | |||||
See notes to financial statements. |
10 |
STATEMENT OF OPERATIONS |
Six Months Ended April 30, 2006 (Unaudited) |
Investment Income ($): | ||
Cash dividends | 1,445,305 | |
Expenses: | ||
Investment advisory fee—Note 3(a) | 1,077,572 | |
Shareholder servicing costs—Note 3(c) | 341,138 | |
Distribution fees—Note 3(b) | 283,691 | |
Custodian fees | 167,521 | |
Registration fees | 33,690 | |
Professional fees | 29,228 | |
Prospectus and shareholders' reports | 13,127 | |
Directors' fees and expenses—Note 3(d) | 10,108 | |
Miscellaneous | 7,689 | |
Total Expenses | 1,963,764 | |
Less—reduction in custody fees due to | ||
earnings credits—Note 1(c) | (29,004) | |
Net Expenses | 1,934,760 | |
Investment (Loss)—Net | (489,455) | |
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | ||
Net realized gain (loss) on investments and foreign currency transactions | 14,737,961 | |
Net realized gain (loss) on forward currency exchange contracts | (239,257) | |
Net Realized Gain (Loss) | 14,498,704 | |
Net unrealized appreciation (depreciation) on investments, | ||
foreign currency transactions and options transactions | 67,606,285 | |
Net Realized and Unrealized Gain (Loss) on Investments | 82,104,989 | |
Net Increase in Net Assets Resulting from Operations | 81,615,534 |
See notes to financial statements. |
The Fund 11 |
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended | ||||
April 30, 2006 | Year Ended | |||
(Unaudited) | October 31, 2005 | |||
Operations ($): | ||||
Investment income (loss)—net | (489,455) | 324,413 | ||
Net realized gain (loss) on investments | 14,498,704 | (392,308) | ||
Net unrealized appreciation | ||||
(depreciation) on investments | 67,606,285 | (378,635) | ||
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 81,615,534 | (446,530) | ||
Dividends to Shareholders from ($): | ||||
Investment income—net: | ||||
Class A shares | (42,341) | (478,111) | ||
Class B shares | — | (17,881) | ||
Class C shares | — | (42,014) | ||
Class R shares | (9,713) | (40,559) | ||
Class T shares | — | (3,939) | ||
Net realized gain on investments: | ||||
Class A shares | — | (603,177) | ||
Class B shares | — | (183,278) | ||
Class C shares | — | (362,645) | ||
Class R shares | — | (38,686) | ||
Class T shares | — | (6,946) | ||
Total Dividends | (52,054) | (1,777,236) |
12 |
Six Months Ended | ||||
April 30, 2006 | Year Ended | |||
(Unaudited) | October 31, 2005 | |||
Capital Stock Transactions ($): | ||||
Net proceeds from shares sold: | ||||
Class A shares | 61,573,168 | 25,455,808 | ||
Class B shares | 6,434,627 | 5,054,046 | ||
Class C shares | 19,595,570 | 14,064,308 | ||
Class R shares | 16,480,938 | 808,053 | ||
Class T shares | 648,388 | 1,156,807 | ||
Dividends reinvested: | ||||
Class A shares | 33,289 | 824,935 | ||
Class B shares | — | 152,463 | ||
Class C shares | — | 219,860 | ||
Class R shares | 8,607 | 68,811 | ||
Class T shares | — | 7,761 | ||
Cost of shares redeemed: | ||||
Class A shares | (17,281,671) | (30,046,440) | ||
Class B shares | (3,941,301) | (5,243,336) | ||
Class C shares | (8,073,128) | (14,070,703) | ||
Class R shares | (5,184,216) | (2,597,821) | ||
Class T shares | (248,309) | (1,359,927) | ||
Increase (Decrease) in Net Assets | ||||
from Capital Stock Transactions | 70,045,962 | (5,505,375) | ||
Total Increase (Decrease) in Net Assets | 151,609,442 | (7,729,141) | ||
Net Assets ($): | ||||
Beginning of Period | 129,074,897 | 136,804,038 | ||
End of Period | 280,684,339 | 129,074,897 | ||
Undistributed investment income (loss)—net | (489,720) | 51,789 |
The Fund 13 |
STATEMENT OF CHANGES IN NET ASSETS (continued)
Six Months Ended | ||||
April 30, 2006 | Year Ended | |||
(Unaudited) | October 31, 2005 | |||
Capital Share Transactions: | ||||
Class A a | ||||
Shares sold | 2,204,458 | 1,219,692 | ||
Shares issued for dividends reinvested | 1,545 | 39,641 | ||
Shares redeemed | (693,550) | (1,442,338) | ||
Net Increase (Decrease) in Shares Outstanding | 1,512,453 | (183,005) | ||
Class B a | ||||
Shares sold | 245,547 | 251,559 | ||
Shares issued for dividends reinvested | — | 7,589 | ||
Shares redeemed | (168,139) | (261,481) | ||
Net Increase (Decrease) in Shares Outstanding | 77,408 | (2,333) | ||
Class C | ||||
Shares sold | 732,379 | 698,048 | ||
Shares issued for dividends reinvested | — | 10,933 | ||
Shares redeemed | (357,454) | (703,339) | ||
Net Increase (Decrease) in Shares Outstanding | 374,925 | 5,642 | ||
Class R | ||||
Shares sold | 571,619 | 38,181 | ||
Shares issued for dividends reinvested | 395 | 3,272 | ||
Shares redeemed | (190,438) | (123,086) | ||
Net Increase (Decrease) in Shares Outstanding | 381,576 | (81,633) | ||
Class T | ||||
Shares sold | 22,260 | 55,136 | ||
Shares issued for dividends reinvested | — | 380 | ||
Shares redeemed | (10,492) | (67,284) | ||
Net Increase (Decrease) in Shares Outstanding | 11,768 | (11,768) |
a | During the period ended April 30, 2006, 13,555 Class B shares representing $319,856 were automatically | |
converted to 12,985 Class A shares and during the period ended October 31, 2005, 15,623 Class B shares | ||
representing $315,213 were automatically converted to 15,037 Class A shares. | ||
See notes to financial statements. |
14 |
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class A Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 19.32 | 19.64 | 19.18 | 12.26 | 12.32 | 18.20 | ||||||||
Investment Operations: | ||||||||||||||
Investment income | ||||||||||||||
(loss)—net a | (.02) | .12 | .21 | .10 | .09 | .03 | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 11.85 | (.15) | .48 | 6.88 | (.11) | (1.24) | ||||||||
Total from | ||||||||||||||
Investment Operations | 11.83 | (.03) | .69 | 6.98 | (.02) | (1.21) | ||||||||
Distributions: | ||||||||||||||
Dividends from investment | ||||||||||||||
income—net | (.01) | (.13) | (.04) | (.06) | (.04) | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | (.16) | (.19) | — | — | (4.67) | ||||||||
Total Distributions | (.01) | (.29) | (.23) | (.06) | (.04) | (4.67) | ||||||||
Net asset value, end of period | 31.14 | 19.32 | 19.64 | 19.18 | 12.26 | 12.32 | ||||||||
Total Return (%) b | 61.28c | (.29) | 3.70 | 57.25 | (.19) | (10.04) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | .96c | 2.05 | 2.09 | 2.82 | 3.80 | 4.63 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | .95c | 2.04 | 2.09 | 2.25 | 2.25 | 2.25 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | (.09)c | .56 | 1.02 | .68 | .61 | .19 | ||||||||
Portfolio Turnover Rate | 81.54c | 178.32 | 154.41 | 194.40 | 327.93 | 553.68 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 152,466 | 65,371 | 70,072 | 33,324 | 5,165 | 3,151 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Exclusive of sales charge. | |||||||||||||
c | Not annualized. | |||||||||||||
See notes to financial statements. |
The Fund 15
FINANCIAL HIGHLIGHTS (continued)
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class B Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 18.53 | 18.89 | 18.56 | 11.89 | 12.00 | 17.97 | ||||||||
Investment Operations: | ||||||||||||||
Investment income | ||||||||||||||
(loss)—net a | (.14) | (.05) | .08 | .00b | (.01) | (.07) | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 11.38 | (.13) | .44 | 6.67 | (.10) | (1.23) | ||||||||
Total from | ||||||||||||||
Investment Operations | 11.24 | (.18) | .52 | 6.67 | (.11) | (1.30) | ||||||||
Distributions: | ||||||||||||||
Dividends from investment | ||||||||||||||
income—net | — | (.02) | — | — | — | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | (.16) | (.19) | — | — | (4.67) | ||||||||
Total Distributions | — | (.18) | (.19) | — | — | (4.67) | ||||||||
Net asset value, end of period | 29.77 | 18.53 | 18.89 | 18.56 | 11.89 | 12.00 | ||||||||
Total Return (%) c | 60.66d | (1.08) | 2.88 | 56.10 | (1.00) | (10.73) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | 1.37d | 2.84 | 2.87 | 3.66 | 4.58 | 5.40 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | 1.35d | 2.83 | 2.86 | 3.00 | 3.00 | 3.00 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | (.60)d | (.23) | .38 | .01 | (.08) | (.49) | ||||||||
Portfolio Turnover Rate | 81.54d | 178.32 | 154.41 | 194.40 | 327.93 | 553.68 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 34,693 | 20,160 | 20,601 | 6,420 | 1,565 | 947 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Amount represents less than $.01 per share. | |||||||||||||
c | Exclusive of sales charge. | |||||||||||||
d | Not annualized. | |||||||||||||
See notes to financial statements. |
16
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class C Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 18.54 | 18.91 | 18.57 | 11.90 | 12.01 | 17.98 | ||||||||
Investment Operations: | ||||||||||||||
Investment income | ||||||||||||||
(loss)—net a | (.13) | (.04) | .07 | (.01) | (.00)b | (.06) | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 11.38 | (.15) | .46 | 6.68 | (.11) | (1.24) | ||||||||
Total from | ||||||||||||||
Investment Operations | 11.25 | (.19) | .53 | 6.67 | (.11) | (1.30) | ||||||||
Distributions: | ||||||||||||||
Dividends from investment | ||||||||||||||
income—net | — | (.02) | (.00)b | (.00)b | — | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | (.16) | (.19) | — | — | (4.67) | ||||||||
Total Distributions | — | (.18) | (.19) | (.00)b | — | (4.67) | ||||||||
Net asset value, end of period | 29.79 | 18.54 | 18.91 | 18.57 | 11.90 | 12.01 | ||||||||
Total Return (%) c | 60.68d | (1.07) | 2.90 | 56.08 | (.92) | (10.83) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | 1.35d | 2.82 | 2.83 | 3.42 | 4.55 | 5.41 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | 1.33d | 2.82 | 2.83 | 2.97 | 3.00 | 3.00 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | (.55)d | (.21) | .33 | (.08) | (.00)e | (.46) | ||||||||
Portfolio Turnover Rate | 81.54d | 178.32 | 154.41 | 194.40 | 327.93 | 553.68 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 75,031 | 39,748 | 40,423 | 14,363 | 984 | 515 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Amount represents less than $.01 per share. | |||||||||||||
c | Exclusive of sales charge. | |||||||||||||
d | Not annualized. | |||||||||||||
e | Amount represents less than .01%. | |||||||||||||
See notes to financial statements. |
The Fund 17
FINANCIAL HIGHLIGHTS (continued) |
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class R Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 19.56 | 19.88 | 19.38 | 12.36 | 12.41 | 18.27 | ||||||||
Investment Operations: | ||||||||||||||
Investment income—net a | .12 | .14 | .28 | .14 | .11 | .06 | ||||||||
Net realized and unrealized gain | ||||||||||||||
(loss) on investments | 11.89 | (.13) | .48 | 6.97 | (.08) | (1.25) | ||||||||
Total from | ||||||||||||||
Investment Operations | 12.01 | .01 | .76 | 7.11 | .03 | (1.19) | ||||||||
Distributions: | ||||||||||||||
Dividends from investment | ||||||||||||||
income—net | (.06) | (.17) | (.07) | (.09) | (.08) | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | (.16) | (.19) | — | — | (4.67) | ||||||||
Total Distributions | (.06) | (.33) | (.26) | (.09) | (.08) | (4.67) | ||||||||
Net asset value, end of period | 31.51 | 19.56 | 19.88 | 19.38 | 12.36 | 12.41 | ||||||||
Total Return (%) | 61.55b | (.04) | 3.96 | 57.93 | .10 | (9.78) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | .82b | 1.77 | 1.80 | 2.56 | 3.63 | 4.42 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | .79b | 1.77 | 1.80 | 1.92 | 2.00 | 2.00 | ||||||||
Ratio of net investment income | ||||||||||||||
to average net assets | .48b | .68 | 1.28 | 1.04 | .78 | .46 | ||||||||
Portfolio Turnover Rate | 81.54b | 178.32 | 154.41 | 194.40 | 327.93 | 553.68 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 17,143 | 3,179 | 4,854 | 1,570 | 310 | 290 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Not annualized. | |||||||||||||
See notes to financial statements. |
18 |
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class T Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 18.91 | 19.26 | 18.83 | 12.07 | 12.15 | 17.99 | ||||||||
Investment Operations: | ||||||||||||||
Investment income | ||||||||||||||
(loss)—net a | (.09) | .17 | .18 | .21 | .10 | .01 | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 11.61 | (.27) | .46 | 6.64 | (.13) | (1.18) | ||||||||
Total from | ||||||||||||||
Investment Operations | 11.52 | (.10) | .64 | 6.85 | (.03) | (1.17) | ||||||||
Distributions: | ||||||||||||||
Dividends from investment | ||||||||||||||
income—net | — | (.09) | (.02) | (.09) | (.05) | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | (.16) | (.19) | — | — | (4.67) | ||||||||
Total Distributions | — | (.25) | (.21) | (.09) | (.05) | (4.67) | ||||||||
Net asset value, end of period | 30.43 | 18.91 | 19.26 | 18.83 | 12.07 | 12.15 | ||||||||
Total Return (%) b | 60.97c | (.58) | 3.44 | 57.16 | (.32) | (9.78) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | 1.20c | 2.29 | 2.43 | 3.46 | 5.80 | 8.28 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | 1.18c | 2.29 | 2.40 | 2.36 | 2.50 | 2.50 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | (.42)c | .81 | .85 | 1.51 | .69 | .06 | ||||||||
Portfolio Turnover Rate | 81.54c | 178.32 | 154.41 | 194.40 | 327.93 | 553.68 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 1,352 | 617 | 855 | 295 | 20 | 2 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Exclusive of sales charge. | |||||||||||||
c | Not annualized. | |||||||||||||
See notes to financial statements. |
The Fund 19
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
Dreyfus Premier Greater China Fund (the “fund”) is a separate non-diversified portfolio of Dreyfus Premier International 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 two series, including the fund.The fund’s investment objective is long-term capital appreciation. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Hamon U.S. Investment Advisors Limited (“Hamon”) serves as the fund’s sub-investment adviser. Hamon is an affiliate of Dreyfus.
Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares. The fund is authorized to issue 200 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class B, Class C, Class R and Class T. 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 and 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 services offered to and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
Effective March 1, 2006, Class A shares of the fund may be purchased at net asset value (“NAV”) without payment of a sales charge:
• By qualified investors who (i) purchase Class A shares directly through the Distributor, and (ii) have, or whose spouse or minor children have, beneficially owned shares and continuously maintained an open
20 |
account directly through the Distributor in a Dreyfus-managed fund, including the fund, or a Founders Asset Management LLC (“Founders”) managed fund since on or before February 28, 2006. Founders is a wholly-owned subsidiary of the Distributor.
• With the cash proceeds from an investor’s exercise of employment-related stock options, whether invested in the fund directly or indirectly through an exchange from a Dreyfus-managed money market fund, provided that the proceeds are processed through an entity that has entered into an agreement with the Distributor specifically relating to processing stock options. Upon establishing the account in the fund or the Dreyfus-managed money market fund, the investor and the investor’s spouse and minor children become eligible to purchase Class A shares of the fund at NAV, whether or not using the proceeds of the employment-related stock options.
• By members of qualified affinity groups who purchase Class A shares directly through the Distributor, provided that the qualified affinity group has entered into an affinity agreement with the Distributor.
Effective March 1, 2006, Class A and Class T shares of the fund may be purchased at NAV without payment of a sales charge:
• For Dreyfus-sponsored IRA “Rollover Accounts” with the distribution proceeds from qualified and non-qualified retirement plans or a Dreyfus-sponsored 403(b)(7) plan, provided that, in the case of a qualified or non-qualified retirement plan, the rollover is processed through an entity that has entered into an agreement with the Distributor specifically relating to processing rollovers. Upon establishing the Dreyfus-sponsored IRA rollover account in the fund, the shareholder becomes eligible to make subsequent purchases of Class A or Class T shares of the fund at NAV in such account.
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 21 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available, are valued at the official closing price or, if there is no official closing price that day, at the last sale price. 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 in registered investment companies are valued at their NAV. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its NAV, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which
22 |
the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures and options are valued at the last sales price.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 on 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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.
The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.
The Fund 23 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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 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. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
(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.
The fund has an unused capital loss carryover of $1,137,741 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2005. If not applied, the capital loss carryover expires in fiscal 2013.
The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2005 were as follows: ordinary income $934,087 and long-term capital gains $843,149. The tax character of current year distributions will be determined at the end of the current fiscal year.
NOTE 2—Bank Lines of Credit:
The fund may borrow up to $5 million for leveraging purposes under a short-term unsecured line of credit and participates with other Dreyfus-managed funds in a $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowing. During the period ended April 30, 2006, the fund did not borrow under either line of credit.
24 |
NOTE 3—Investment Advisory Fee, Sub-Investment Advisory Fee and Other Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement (“Agreement”) with Dreyfus, the investment advisory fee is computed at the annual rate of 1.25% of the value of the fund’s average daily net assets and is payable monthly.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Hamon, Dreyfus pays Hamon a fee payable monthly at the annual rate of .625% of the value of the fund’s average daily net assets.
During the period ended April 30, 2006, the Distributor retained $104,260 and $2,080 from commissions earned on sales of the fund’s Class A and Class T shares, respectively, and $67,721 and $15,383 from CDSC on redemptions of the fund’s Class B and Class C shares, respectively.
(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 the value of the average daily net assets of Class B and Class C shares and .25% of the value of the average daily net assets of Class T shares. During the period ended April 30, 2006, Class B, Class C and Class T shares were charged $94,675, $188,115 and $901, respectively, pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T shares pay the Distributor at an annual rate of .25% 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 other industry professional) in respect of these services. The
The Fund 25 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2006, Class A, Class B, Class C and Class T shares were charged $112,978, $31,558, $62,705 and $901, respectively, pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2006, the fund was charged $59,477 pursuant to the transfer agency agreement.
During the period ended April 30, 2006, the fund was charged $1,926 for services performed by the Chief Compliance Officer.
The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $262,403, Rule 12b-1 distribution plan fees $63,656, shareholder services plan fees $49,705, chief compliance officer fees $1,284 and transfer agency per account fees $21,200.
(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding short-term securities and forward currency exchange contracts, during the period ended April 30, 2006, amounted to $202,672,193 and $137,789,489, respectively.
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 transac-tions.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
26 |
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. At April 30, 2006, there were no forward currency exchange contracts outstanding.
At April 30, 2006, accumulated net unrealized appreciation on investments was $68,716,121, consisting of $72,739,485 gross unrealized appreciation and $4,023,364 gross unrealized depreciation.
At April 30, 2006, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
NOTE 5—Subsequent Event:
Effective on or about June 1, 2006, the fund will no longer offer Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares.
The Fund 27 |
NOTES
For More Information | ||
Dreyfus Premier | Custodian | |
Greater China Fund | ||
The Bank of New York | ||
200 Park Avenue | ||
One Wall Street | ||
New York, NY 10166 | ||
New York, NY 10286 | ||
Investment Adviser | Transfer Agent & | |
The Dreyfus Corporation | Dividend Disbursing Agent | |
200 Park Avenue | ||
Dreyfus Transfer, Inc. | ||
New York, NY 10166 | ||
200 Park Avenue | ||
Sub-Investment Adviser | New York, NY 10166 | |
Hamon U.S. Investment Advisors Ltd. | Distributor | |
4310-4315 Jardine House | ||
Dreyfus Service Corporation | ||
1 Connaught Place, Central | ||
200 Park Avenue | ||
Hong Kong | ||
New York, NY 10166 |
Telephone Call your financial representative or 1-800-554-4611
The Dreyfus Premier Family of Funds | ||
144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 |
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2005, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.
Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.
The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
Contents | ||
THE FUND | ||
2 | Letter from the Chairman | |
3 | Discussion of Fund Performance | |
6 | Understanding Your Fund’s Expenses | |
6 | Comparing Your Fund’s Expenses | |
With Those of Other Funds | ||
7 | Statement of Investments | |
12 | Statement of Financial Futures | |
13 | Statement of Assets and Liabilities | |
14 | Statement of Operations | |
15 | Statement of Changes in Net Assets | |
17 | Financial Highlights | |
22 | Notes to Financial Statements | |
FOR MORE INFORMATION | ||
Back Cover |
LETTER FROM THE CHAIRMAN
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier International Growth Fund, covering the six-month period from November 1, 2005, through April 30, 2006.
International stock markets have continued to rally, boosted by continued expectations for low inflation, relatively benign monetary policies among central banks and the recovery of domestic consumption in Japan and Europe. Although stock prices have increased over the past few years, so have earnings for most international companies, keeping valuations at what we believe to be reasonable levels.
Our international portfolio managers report that they are beginning to see early signs of a potentially broader market advance,beyond merely the energy and mining sectors that have led the rally so far. In Europe, high-profile mergers and acquisitions in the financial services, pharmaceuticals and industrials sectors have supported a generally upbeat economic out-look.While Japan recently has lagged Europe, greater economic stability and liquidity have brought an end to price deflation, which may support further gains if interest rates rise only moderately as the global economic cycle matures.As always,we urge you to discuss with your financial advisor the potential implications of these possibilities on your investments.
For information about how the fund performed, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s portfolio manager.
Thank you for your continued confidence and support.
2 |
DISCUSSION OF FUND PERFORMANCE
Remi Browne, Portfolio Manager
How did Dreyfus Premier International Growth Fund perform relative to its benchmark?
For the six-month period ended April 30, 2006, the fund produced total returns of 23.23% for Class A shares, 22.79% for Class B shares, 22.84% for Class C shares, 23.48% for Class R shares and 22.96% for Class T shares.1 This compares with a 23.04% total return produced by the fund’s benchmark, the Morgan Stanley Capital International World ex U.S. Index, for the same period.2 In addition, the Morgan Stanley Capital International World ex U.S. Growth Index produced a total return of 22.84% for the same period.3
International equity markets produced strong returns during the period across all industry groups in an environment of robust global economic growth.The fund’s performance was in line with its benchmark, mainly due to our stock selection strategy, which produced positive results in a majority of countries and sectors.
What is the fund’s investment approach?
The fund invests primarily in growth stocks of foreign companies. Normally, the fund invests at least 80% of its assets in stocks, including common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings.
In choosing stocks, we seek to identify companies with positive growth characteristics and improving business momentum that have not been recognized by the market. We look to add value through security selection and focus on earnings growth (particularly the trend in current earnings and changes in expectations) and valuation (as measured by traditional value measures, such as price-to-earnings, price-to-cash flow and price-to-book value). Companies are then ranked within region, country and economic sector. Higher ranked companies then are reviewed, and an investment decision made, using traditional fundamental techniques.
The Fund 3 |
DISCUSSION OF FUND PERFORMANCE (continued)
What other factors influenced the fund’s performance?
Throughout much of the reporting period, the international equity markets demonstrated continued resilience, fueled in large part by robust global economic growth, historically low inflation expectations and relatively benign monetary policies from central banks worldwide. The market’s strength was broad-based, with all 10 sectors and all 22 countries represented in the benchmark ending the reporting period in positive territory. In Europe, the market’s greatest gains were achieved in Finland and Norway. In addition, stocks in Italy and France rallied amid a rise in mergers-and-acquisitions activity across a number of industry groups. Japan’s stock market posted strong results when the domestic economy recovered in the wake of long-awaited reforms to the nation’s banking system.Along sector lines, the basic materials sector was the star as many momentum investors shifted money into metals and mining stocks.
The fund’s performance was driven by successful stock selection in a majority of countries and sectors, including double-digit performance advantages in Germany and the Netherlands. Among market sectors, the biggest sources of added value during the reporting period came from the financials and materials areas.
Individual financial stocks that contributed the most to the fund’s relative performance included the Netherlands’ ING Group N.V., which we had purchased at relatively low valuations, and Switzerland’s Credit Suisse Group. Both companies’ financial results demonstrated a relative lack of sensitivity to rising interest rates and benefited from higher levels of activity in the capital markets. In the materials sectors, stand-outs included U.K.-based coal and copper producer Xstrata and Australian mining company BHP Billiton, which achieved higher profit margins as global commodity prices escalated amid robust industrial demand from emerging markets, such as China.
Individual stocks in a variety of other sectors also supported the fund’s relative performance. For example, earnings of German tire and auto-parts company Continental continued to grow amid strong demand for its winter and high-end professional tires and its anti-rollover braking and steering technology for SUVs, which enabled the company to pass along high raw materials costs to its customers. German pharmaceutical company Schering gained value after accepting a take-over bid by rival Bayer.
4 |
Other strong performers for the reporting period included electronics maker Canon and general trading conglomerate Mitsubishi Corp. in Japan, as well as wireless telephone handset provider Nokia in Finland.
A relatively small number of holdings produced more lackluster results. Laggards during the reporting period included Japan’s Sanyo Shinpan Finance Co., which fell after issuing disappointing earnings guidance. U.K. wireless telephone company Vodafone Group struggled due to unexpectedly high expenses and an apparent change of course in its global expansion strategy. Other detractors from relative performance included BlueScope Steel in Australia and Santen Pharmaceutical Co. in Japan.
What is the fund’s current strategy?
Although international stocks have become more richly valued on average, favorable economic and market conditions have persisted, including rebounding corporate confidence and stronger-than-expected consumer spending. We have continued to employ our longstanding investment strategy, in which we maintain generally country- and sector-neutral positions in order to focus on adding value through individual stock selection.
May 15, 2006
Investing in foreign companies involves special risks, including changes in currency rates, | ||
political, economic and social instability, a lack of comprehensive company information, | ||
differing auditing and legal standards and less market liquidity. An investment in this fund | ||
should be considered only as a supplement to an overall investment program. | ||
1 | Total return includes reinvestment of dividends and any capital gains paid, and does not take into | |
consideration the maximum initial sales charges in the case of Class A and Class T shares, or the | ||
applicable contingent deferred sales charges 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 prices 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 certain fund expenses by The Dreyfus Corporation pursuant to | ||
an agreement in effect through October 31, 2006, 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 reinvestment of net dividends and, where applicable, | |
capital gain distributions.The Morgan Stanley Capital International (MSCI) World ex U.S. | ||
Index is an unmanaged index of global stock market performance, excluding the U.S., consisting | ||
solely of equity securities. | ||
3 | SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital | |
gain distributions.The Morgan Stanley Capital International World ex U.S. Growth Index | ||
measures global developed market equity performance of growth securities outside the U.S. |
The Fund 5
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Premier International Growth Fund from November 1, 2005 to April 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
Expenses and Value of a $1,000 Investment | ||||||||||
assuming actual returns for the six months ended April 30, 2006 | ||||||||||
Class A | Class B | Class C | Class R | Class T | ||||||
Expenses paid per $1,000 † | $ 8.58 | $ 13.09 | $ 12.93 | $ 6.54 | $ 10.84 | |||||
Ending value (after expenses) | $1,232.30 | $1,227.90 | $1,228.40 | $1,234.80 | $1,229.60 |
COMPARING YOUR FUND’S EXPENSES |
WITH THOSE OF OTHER FUNDS (Unaudited) |
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2006
Class A | Class B | Class C | Class R | Class T | ||||||
Expenses paid per $1,000 † | $ 7.75 | $ 11.83 | $ 11.68 | $ 5.91 | $ 9.79 | |||||
Ending value (after expenses) | $1,017.11 | $1,013.04 | $1,013.19 | $1,018.94 | $1,015.08 |
† Expenses are equal to the fund’s annualized expense ratio of 1.55% for Class A, 2.37% for Class B, 2.34% for Class C, 1.18% for Class R and 1.96% for Class T; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
6 |
STATEMENT OF INVESTMENTS |
April 30, 2006 (Unaudited) |
Common Stocks—97.5% | Shares | Value ($) | ||
Australia—5.2% | ||||
BHP Billiton | 30,500 | 679,174 | ||
Billabong International | 21,200 | 248,447 | ||
CSL | 11,600 | 508,683 | ||
Rinker Group | 39,900 | 642,869 | ||
Woolworths | 14,600 | 207,051 | ||
2,286,224 | ||||
Belgium—2.4% | ||||
Delhaize Group | 5,700 | 410,613 | ||
InBev | 12,600 | 635,528 | ||
1,046,141 | ||||
Canada—5.5% | ||||
Alcan | 4,500 | 235,214 | ||
ATI Technologies | 12,500 a | 193,616 | ||
Canadian National Railway | 10,000 | 448,832 | ||
Gildan Activewear | 4,300 a | 206,164 | ||
Shaw Communications, Cl. B | 8,000 | 215,597 | ||
Sun Life Financial | 6,200 | 261,733 | ||
Teck Cominco, Cl. B | 8,700 | 600,408 | ||
Trican Well Service | 6,000 a | 291,109 | ||
2,452,673 | ||||
Denmark—1.3% | ||||
Novo-Nordisk, Cl. B | 9,030 | 586,364 | ||
Finland—1.5% | ||||
Nokia | 29,600 | 674,048 | ||
France—9.2% | ||||
BNP Paribas | 5,832 | 551,088 | ||
Bouygues | 6,800 | 371,037 | ||
Sanofi-Aventis | 9,427 | 889,009 | ||
Schneider Electric | 3,200 | 362,332 | ||
Societe Generale | 3,750 | 572,924 | ||
Total | 2,138 | 591,248 | ||
Vivendi | 19,900 | 726,563 | ||
4,064,201 |
The Fund 7 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Common Stocks (continued) | Shares | Value ($) | ||
Germany—7.4% | ||||
BASF | 7,810 | 669,616 | ||
Continental | 6,100 | 725,325 | ||
DaimlerChrysler | 3,800 | 208,351 | ||
E.ON | 3,620 | 443,683 | ||
MAN | 4,100 | 310,819 | ||
SAP | 1,390 | 303,728 | ||
Schering | 2,400 | 257,730 | ||
ThyssenKrupp | 10,700 | 352,732 | ||
3,271,984 | ||||
Greece—.9% | ||||
Coca-Cola Hellenic Bottling | 12,800 | 419,538 | ||
Hong Kong—1.5% | ||||
China Mobile Hong Kong | 111,100 | 646,263 | ||
Italy—3.1% | ||||
Banca Intesa | 83,600 | 495,708 | ||
Capitalia | 33,800 | 293,378 | ||
ENI | 18,502 | 564,879 | ||
1,353,965 | ||||
Japan—22.3% | ||||
Advantest | 1,700 | 196,071 | ||
Astellas Pharma | 8,500 | 354,929 | ||
Canon | 11,500 | 880,533 | ||
Daiwa Securities Group | 33,200 | 460,839 | ||
Denso | 7,800 | 306,501 | ||
Eisai | 7,200 | 329,761 | ||
Fujitsu | 43,000 | 358,727 | ||
Honda Motor | 11,300 | 803,631 | ||
Hoya | 10,400 | 421,467 | ||
Matsushita Electric Industrial | 21,000 | 507,670 | ||
Mitsubishi | 43,500 | 1,053,514 | ||
Mitsubishi Electric | 30,200 | 263,093 | ||
Mitsui & Co | 27,000 | 408,483 | ||
Nomura Holdings | 20,700 | 468,573 | ||
ORIX | 700 | 210,452 | ||
Rengo | 24,900 | 196,565 | ||
Sony | 4,100 | 206,162 |
8
Common Stocks (continued) | Shares | Value ($) | ||
Japan (continued) | ||||
Sumitomo Electric Industries | 35,500 | 564,230 | ||
Takeda Pharmaceutical | 9,400 | 575,131 | ||
Tokyo Electron | 4,000 | 288,339 | ||
Toshiba | 64,000 | 407,894 | ||
TV Asahi | 100 | 261,967 | ||
Yamada Denki | 3,100 | 338,192 | ||
9,862,724 | ||||
Netherlands—3.4% | ||||
European Aeronautic Defence and Space | 7,600 | 299,918 | ||
ING Groep | 23,800 | 968,641 | ||
Royal KPN | 19,500 | 229,037 | ||
1,497,596 | ||||
Norway—2.6% | ||||
Norsk Hydro | 2,145 | 329,930 | ||
Orkla | 7,100 | 373,424 | ||
Telenor | 39,000 | 451,960 | ||
1,155,314 | ||||
Spain—3.3% | ||||
ACS, Actividades de Construccion y Servicios | 10,800 | 448,409 | ||
Banco Santander Central Hispano | 14,700 | 227,924 | ||
Repsol YPF | 6,900 | 206,135 | ||
Telefonica | 35,400 | 567,190 | ||
1,449,658 | ||||
Sweden—.9% | ||||
Telefonaktiebolaget LM Ericsson, Cl. B | 108,100 | 384,666 | ||
Switzerland—7.6% | ||||
Baloise Holding | 3,650 | 278,485 | ||
Compagnie Financiere Richemont, Cl. A | 8,700 | 451,051 | ||
Credit Suisse Group | 13,400 | 841,009 | ||
Nestle | 1,030 | 313,888 | ||
Novartis | 5,514 | 316,082 | ||
Roche Holding | 4,060 | 623,785 | ||
UBS | 2,265 | 267,559 | ||
Zurich Financial Services | 1,057 | 256,969 | ||
3,348,828 |
The Fund 9 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Common Stocks (continued) | Shares | Value ($) | ||
United Kingdom—19.4% | ||||
AstraZeneca | 11,800 | 651,366 | ||
Aviva | 16,600 | 242,237 | ||
Barclays | 16,099 | 200,905 | ||
BG Group | 27,600 | 370,576 | ||
BP | 68,700 | 846,692 | ||
British Airways | 71,800 a | 439,833 | ||
British American Tobacco | 29,500 | 753,478 | ||
BT Group | 96,900 | 387,047 | ||
Diageo | 19,400 | 319,853 | ||
First Choice Holidays | 58,400 | 236,725 | ||
GlaxoSmithKline | 24,000 | 680,334 | ||
HBOS | 18,100 | 317,380 | ||
International Power | 96,700 | 524,540 | ||
Next | 8,300 | 243,750 | ||
Royal Bank of Scotland Group | 6,500 | 212,085 | ||
Royal Dutch Shell, Cl. A | 7,500 | 256,327 | ||
Sage Group | 53,100 | 241,844 | ||
Schroders | 12,300 | 252,988 | ||
Vedanta Resources | 17,100 | 491,591 | ||
Vodafone Group | 106,832 | 252,041 | ||
Xstrata | 18,200 | 657,830 | ||
8,579,422 | ||||
Total Common Stocks | ||||
(cost $31,698,522) | 43,079,609 | |||
Preferred Stock—.6% | ||||
Germany; | ||||
Fresenius | ||||
(cost $180,617) | 1,440 | 250,251 |
10 |
Principal | ||||||||
Short-Term Investment—.1% | Amount ($) | Value ($) | ||||||
U.S. Treasury Bills; | ||||||||
4.51%, 6/15/06 | ||||||||
(cost $39,776) | 40,000 b | 39,774 | ||||||
Total Investments (cost $31,918,915) | 98.2% | 43,369,634 | ||||||
Cash and Receivables (Net) | 1.8% | 812,464 | ||||||
Net Assets | 100.0% | 44,182,098 | ||||||
a | Non-income producing security. | |||||||
b | Held by a broker as collateral for open financial futures positions. | |||||||
Portfolio Summary (Unaudited) † | ||||||||
Value (%) | Value (%) | |||||||
Financial | 16.7 | Consumer Staples | 6.9 | |||||
Health Care | 13.7 | Telecommunication Services | 6.6 | |||||
Consumer Discretionary | 12.9 | Utilities | 2.2 | |||||
Industrial | 11.3 | Short-Term Investment | .1 | |||||
Materials | 10.2 | Financial Futures | .0 | |||||
Information Technology | 9.8 | |||||||
Energy | 7.8 | 98.2 | ||||||
† | Based on net assets. | |||||||
See notes to financial statements. |
The Fund 11 |
STATEMENT OF FINANCIAL FUTURES |
April 30, 2006 (Unaudited) |
Market Value | Unrealized | |||||||
Covered by | Appreciation | |||||||
Contracts | Contracts ($) | Expiration | at 4/30/2006 ($) | |||||
Financial Futures Long | ||||||||
MSCI PAN EURO | 19 | 539,622 | June 2006 | 2,887 | ||||
TOPIX | 1 | 151,554 | June 2006 | 4,769 | ||||
7,656 |
See notes to financial statements. |
12 |
STATEMENT OF ASSETS AND LIABILITIES |
April 30, 2006 (Unaudited) |
Cost | Value | |||||||||
Assets ($): | ||||||||||
Investments in securities—See Statement of Investments | 31,918,915 | 43,369,634 | ||||||||
Cash | 194,106 | |||||||||
Cash denominated in foreign currencies | 489,429 | 505,227 | ||||||||
Dividends receivable | 133,214 | |||||||||
Receivable for shares of Common Stock subscribed | 34,044 | |||||||||
Prepaid expenses | 33,738 | |||||||||
44,269,963 | ||||||||||
Liabilities ($): | ||||||||||
Due to The Dreyfus Corporation and affiliates—Note 3(c) | 46,339 | |||||||||
Payable for futures variation margin—Note 4 | 3,058 | |||||||||
Payable for shares of Common Stock redeemed | 349 | |||||||||
Accrued expenses | 38,119 | |||||||||
87,865 | ||||||||||
Net Assets ($) | 44,182,098 | |||||||||
Composition of Net Assets ($): | ||||||||||
Paid-in capital | 46,376,996 | |||||||||
Accumulated undistributed investment income—net | 1,430 | |||||||||
Accumulated net realized gain (loss) on investments | (13,673,904) | |||||||||
Accumulated net unrealized appreciation (depreciation) | ||||||||||
on investments and foreign currency transactions (including | ||||||||||
$7,656 net unrealized appreciation of financial futures) | 11,477,576 | |||||||||
Net Assets ($) | 44,182,098 | |||||||||
Net Asset Value Per Share | ||||||||||
Class A | Class B | Class C | Class R | Class T | ||||||
Net Assets ($) | 39,474,295 | 2,867,223 | 1,674,031 | 129,591 | 36,958 | |||||
Shares Outstanding | 3,245,780 | 254,480 | 156,084 | 10,442 | 3,117 | |||||
Net Asset Value | ||||||||||
Per Share ($) | 12.16 | 11.27 | 10.73 | 12.41 | 11.86 | |||||
See notes to financial statements. |
The Fund 13 |
STATEMENT OF OPERATIONS |
Six Months Ended April 30, 2006 (Unaudited) |
Investment Income ($): | ||
Income: | ||
Cash dividends (net of $37,775 foreign taxes withheld at source) | 355,328 | |
Interest | 1,362 | |
Total Income | 356,690 | |
Expenses: | ||
Investment advisory fee—Note 3(a) | 150,603 | |
Shareholder servicing costs—Note 3(c) | 74,510 | |
Custodian fees | 30,684 | |
Registration fees | 28,736 | |
Professional fees | 18,664 | |
Distribution fees—Note 3(b) | 14,861 | |
Prospectus and shareholders’ reports | 6,182 | |
Directors’ fees and expenses—Note 3(d) | 4,873 | |
Miscellaneous | 7,081 | |
Total Expenses | 336,194 | |
Less—reduction in investment advisory fee | ||
due to undertaking—Note 3(a) | (45) | |
Less—reduction in custody fees due to | ||
earnings credits—Note 1(c) | (8,475) | |
Net Expenses | 327,674 | |
Investment Income—Net | 29,016 | |
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | ||
Net realized gain (loss) on investments and | ||
foreign currency transactions | 2,457,587 | |
Net realized gain (loss) on financial futures | 166,387 | |
Net realized gain (loss) on forward currency exchange contracts | (12,887) | |
Net Realized Gain (Loss) | 2,611,087 | |
Net unrealized appreciation (depreciation) on investments | ||
and foreign currency transactions [including ($19,296) | ||
net unrealized (depreciation) on financial futures] | 5,827,194 | |
Net Realized and Unrealized Gain (Loss) on Investments | 8,438,281 | |
Net Increase in Net Assets Resulting from Operations | 8,467,297 |
See notes to financial statements. |
14 |
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended | ||||
April 30, 2006 | Year Ended | |||
(Unaudited) | October 31, 2005 | |||
Operations ($): | ||||
Investment income—net | 29,016 | 282,765 | ||
Net realized gain (loss) on investments | 2,611,087 | 3,940,037 | ||
Net unrealized appreciation | ||||
(depreciation) on investments | 5,827,194 | 3,162,799 | ||
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 8,467,297 | 7,385,601 | ||
Dividends to Shareholders from ($): | ||||
Investment income—net: | ||||
Class A shares | (255,718) | (980,992) | ||
Class B shares | (3,223) | (32,498) | ||
Class C shares | (5,191) | (14,421) | ||
Class R shares | (721) | (334) | ||
Class T shares | (98) | (505) | ||
Total Dividends | (264,951) | (1,028,750) | ||
Capital Stock Transactions ($): | ||||
Net proceeds from shares sold: | ||||
Class A shares | 1,824,878 | 5,966,123 | ||
Class B shares | 483,115 | 691,625 | ||
Class C shares | 202,698 | 367,921 | ||
Class R shares | 63,482 | 23,349 | ||
Class T shares | 5,095 | 34,268 | ||
Dividends reinvested: | ||||
Class A shares | 244,082 | 896,746 | ||
Class B shares | 2,762 | 27,633 | ||
Class C shares | 3,538 | 9,666 | ||
Class R shares | 721 | 334 | ||
Class T shares | 98 | 458 | ||
Cost of shares redeemed: | ||||
Class A shares | (4,018,996) | (24,119,771) | ||
Class B shares | (567,451) | (802,413) | ||
Class C shares | (28,319) | (143,255) | ||
Class R shares | (610) | (20) | ||
Class T shares | (104) | (14,986) | ||
Increase (Decrease) in Net Assets | ||||
from Capital Stock Transactions | (1,785,011) | (17,062,322) | ||
Total Increase (Decrease) in Net Assets | 6,417,335 | (10,705,471) | ||
Net Assets ($): | ||||
Beginning of Period | 37,764,763 | 48,470,234 | ||
End of Period | 44,182,098 | 37,764,763 | ||
Undistributed investment income—net | 1,430 | 237,365 | ||
The Fund 15 |
STATEMENT OF CHANGES IN NET ASSETS (continued) |
Six Months Ended | ||||
April 30, 2006 | Year Ended | |||
(Unaudited) | October 31, 2005 | |||
Capital Share Transactions: | ||||
Class A a | ||||
Shares sold | 166,615 | 643,370 | ||
Shares issued for dividends reinvested | 23,155 | 98,112 | ||
Shares redeemed | (370,514) | (2,614,513) | ||
Net Increase (Decrease) in Shares Outstanding | (180,744) | (1,873,031) | ||
Class B a | ||||
Shares sold | 47,397 | 80,097 | ||
Shares issued for dividends reinvested | 282 | 3,247 | ||
Shares redeemed | (56,306) | (93,291) | ||
Net Increase (Decrease) in Shares Outstanding | (8,627) | (9,947) | ||
Class C | ||||
Shares sold | 20,751 | 43,347 | ||
Shares issued for dividends reinvested | 380 | 1,190 | ||
Shares redeemed | (2,960) | (17,317) | ||
Net Increase (Decrease) in Shares Outstanding | 18,171 | 27,220 | ||
Class R | ||||
Shares sold | 5,795 | 2,469 | ||
Shares issued for dividends reinvested | 67 | 36 | ||
Shares redeemed | (58) | (2) | ||
Net Increase (Decrease) in Shares Outstanding | 5,804 | 2,503 | ||
Class T | ||||
Shares sold | 448 | 3,838 | ||
Shares issued for dividends reinvested | 10 | 51 | ||
Shares redeemed | (10) | (1,633) | ||
Net Increase (Decrease) in Shares Outstanding | 448 | 2,256 |
a During the period ended April 30, 2006, 33,025 Class B shares representing $333,612 were automatically converted to 30,614 Class A shares and during the year ended October 31, 2005, 54,558 Class B shares representing $467,559 were automatically converted to 50,601 Class A shares.
See notes to financial statements.
16 |
FINANCIAL HIGHLIGHTS |
The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class A Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 9.94 | 8.57 | 7.28 | 5.97 | 7.42 | 17.21 | ||||||||
Investment Operations: | ||||||||||||||
Investment income (loss)—net a | .01 | .07 | .09 | .03 | (.00)b | (.04) | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 2.29 | 1.48 | 1.42 | 1.41 | (1.45) | (4.91) | ||||||||
Total from Investment Operations | 2.30 | 1.55 | 1.51 | 1.44 | (1.45) | (4.95) | ||||||||
Distributions: | ||||||||||||||
Dividends from | ||||||||||||||
investment income—net | (.08) | (.18) | (.22) | (.13) | — | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | — | — | — | — | (4.84) | ||||||||
Total Distributions | (.08) | (.18) | (.22) | (.13) | — | (4.84) | ||||||||
Net asset value, end of period | 12.16 | 9.94 | 8.57 | 7.28 | 5.97 | 7.42 | ||||||||
Total Return (%) c | 23.23d | 18.18 | 21.40 | 24.53 | (19.54) | (39.33) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | .79d | 1.72 | 1.95 | 2.02 | 1.83 | 1.51 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | .77d | 1.39 | 1.95 | 2.02 | 1.83 | 1.51 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | .11d | .74 | 1.08 | .45 | (.05) | (.37) | ||||||||
Portfolio Turnover Rate | 34.13d | 64.27 | 174.49 | 122.55 | 146.03 | 223.72 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 39,474 | 34,063 | 45,440 | 29,246 | 26,334 | 36,546 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Amount represents less than $.01 per share. | |||||||||||||
c | Exclusive of sales charge. | |||||||||||||
d | Not annualized. | |||||||||||||
See notes to financial statements. |
The Fund 17
FINANCIAL HIGHLIGHTS (continued)
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class B Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 9.19 | 7.94 | 6.75 | 5.54 | 6.94 | 16.54 | ||||||||
Investment Operations: | ||||||||||||||
Investment income (loss)—net a | (.03) | .00b | .02 | (.03) | (.07) | (.13) | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 2.12 | 1.37 | 1.33 | 1.30 | (1.33) | (4.63) | ||||||||
Total from Investment Operations | 2.09 | 1.37 | 1.35 | 1.27 | (1.40) | (4.76) | ||||||||
Distributions: | ||||||||||||||
Dividends from | ||||||||||||||
investment income—net | (.01) | (.12) | (.16) | (.06) | — | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | — | — | — | — | (4.84) | ||||||||
Total Distributions | (.01) | (.12) | (.16) | (.06) | — | (4.84) | ||||||||
Net asset value, end of period | 11.27 | 9.19 | 7.94 | 6.75 | 5.54 | 6.94 | ||||||||
Total Return (%) c | 22.79d | 17.32 | 20.30 | 23.07 | (20.17) | (39.90) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | 1.19d | 2.53 | 2.78 | 3.04 | 2.80 | 2.42 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | 1.17d | 2.19 | 2.78 | 3.04 | 2.80 | 2.42 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | (.30)d | .04 | .24 | (.60) | (1.11) | (1.30) | ||||||||
Portfolio Turnover Rate | 34.13d | 64.27 | 174.49 | 122.55 | 146.03 | 223.72 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 2,867 | 2,419 | 2,168 | 1,936 | 1,965 | 3,520 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Amount represents less than $.01 per share. | |||||||||||||
c | Exclusive of sales charge. | |||||||||||||
d | Not annualized. | |||||||||||||
See notes to financial statements. |
18
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class C Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 8.77 | 7.59 | 6.47 | 5.30 | 6.67 | 16.02 | ||||||||
Investment Operations: | ||||||||||||||
Investment income (loss)—net a | (.03) | .01 | .02 | (.02) | (.05) | (.11) | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 2.03 | 1.30 | �� | 1.27 | 1.25 | (1.32) | (4.40) | |||||||
Total from Investment Operations | 2.00 | 1.31 | 1.29 | 1.23 | (1.37) | (4.51) | ||||||||
Distributions: | ||||||||||||||
Dividends from | ||||||||||||||
investment income—net | (.04) | (.13) | (.17) | (.06) | — | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | — | — | — | — | (4.84) | ||||||||
Total Distributions | (.04) | (.13) | (.17) | (.06) | — | (4.84) | ||||||||
Net asset value, end of period | 10.73 | 8.77 | 7.59 | 6.47 | 5.30 | 6.67 | ||||||||
Total Return (%) b | 22.84c | 17.35 | 20.33 | 23.45 | (20.54) | (39.56) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | 1.19c | 2.48 | 2.77 | 2.89 | 2.71 | 2.33 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | 1.16c | 2.14 | 2.77 | 2.89 | 2.71 | 2.33 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | (.26)c | .11 | .23 | (.41) | (.93) | (1.17) | ||||||||
Portfolio Turnover Rate | 34.13c | 64.27 | 174.49 | 122.55 | 146.03 | 223.72 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 1,674 | 1,210 | 840 | 663 | 563 | 754 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Exclusive of sales charge. | |||||||||||||
c | Not annualized. | |||||||||||||
See notes to financial statements. |
The Fund 19 |
FINANCIAL HIGHLIGHTS (continued)
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class R Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 10.15 | 8.72 | 7.40 | 6.08 | 7.45 | 17.22 | ||||||||
Investment Operations: | ||||||||||||||
Investment income (loss)—net a | .04 | .09 | .06 | .11 | .02 | (.01) | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 2.33 | 1.49 | 1.45 | 1.30 | (1.39) | (4.92) | ||||||||
Total from Investment Operations | 2.37 | 1.58 | 1.51 | 1.41 | (1.37) | (4.93) | ||||||||
Distributions: | ||||||||||||||
Dividends from | ||||||||||||||
investment income—net | (.11) | (.15) | (.19) | (.09) | — | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | — | — | — | — | (4.84) | ||||||||
Total Distributions | (.11) | (.15) | (.19) | (.09) | — | (4.84) | ||||||||
Net asset value, end of period | 12.41 | 10.15 | 8.72 | 7.40 | 6.08 | 7.45 | ||||||||
Total Return (%) | 23.48b | 18.31 | 20.89 | 23.21 | (18.26) | (39.10) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | .61b | 1.63 | 2.24 | 2.21 | 1.47 | 1.19 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | .59b | 1.28 | 2.24 | 2.21 | 1.47 | 1.19 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | .38b | .98 | .69 | 1.24 | .29 | (.09) | ||||||||
Portfolio Turnover Rate | 34.13b | 64.27 | 174.49 | 122.55 | 146.03 | 223.72 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 130 | 47 | 19 | 20 | 32 | 734 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Not annualized. | |||||||||||||
See notes to financial statements. |
20 |
Six Months Ended | ||||||||||||||
April 30, 2006 | Year Ended October 31, | |||||||||||||
Class T Shares | (Unaudited) | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||
Per Share Data ($): | ||||||||||||||
Net asset value, | ||||||||||||||
beginning of period | 9.68 | 8.39 | 7.17 | 5.84 | 7.33 | 17.13 | ||||||||
Investment Operations: | ||||||||||||||
Investment income (loss)—net a | (.01) | .08 | (.03) | (.06) | (.09) | (.08) | ||||||||
Net realized and unrealized | ||||||||||||||
gain (loss) on investments | 2.23 | 1.40 | 1.39 | 1.39 | (1.40) | (4.88) | ||||||||
Total from Investment Operations | 2.22 | 1.48 | 1.36 | 1.33 | (1.49) | (4.96) | ||||||||
Distributions: | ||||||||||||||
Dividends from | ||||||||||||||
investment income—net | (.04) | (.19) | (.14) | — | — | — | ||||||||
Dividends from net realized | ||||||||||||||
gain on investments | — | — | — | — | — | (4.84) | ||||||||
Total Distributions | (.04) | (.19) | (.14) | — | — | (4.84) | ||||||||
Net asset value, end of period | 11.86 | 9.68 | 8.39 | 7.17 | 5.84 | 7.33 | ||||||||
Total Return (%) b | 22.96c | 17.87 | 19.22 | 22.77 | (20.33) | (39.62) | ||||||||
Ratios/Supplemental Data (%): | ||||||||||||||
Ratio of total expenses | ||||||||||||||
to average net assets | 1.15c | 2.13 | 3.75 | 3.47 | 2.72 | 1.93 | ||||||||
Ratio of net expenses | ||||||||||||||
to average net assets | .97c | 1.78 | 3.75 | 3.47 | 2.72 | 1.93 | ||||||||
Ratio of net investment income | ||||||||||||||
(loss) to average net assets | (.07)c | .77 | (.44) | (1.05) | (1.14) | (.81) | ||||||||
Portfolio Turnover Rate | 34.13c | 64.27 | 174.49 | 122.55 | 146.03 | 223.72 | ||||||||
Net Assets, end of period | ||||||||||||||
($ x 1,000) | 37 | 26 | 3 | 1 | 1 | 7 | ||||||||
a | Based on average shares outstanding at each month end. | |||||||||||||
b | Exclusive of sales charge. | |||||||||||||
c | Not annualized. | |||||||||||||
See notes to financial statements. |
The Fund 21 |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
Dreyfus Premier International Growth Fund (the “fund”) is a separate non-diversified series of Dreyfus Premier International 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 two series including the fund.The fund’s investment objective is to maximize capital growth. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).
Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares. The fund is authorized to issue 300 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class B, Class C, Class R and Class T. 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 and 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. Class R shares are sold at net asset value per share only to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
Effective March 1, 2006, Class A shares of the fund may be purchased at net asset value (“NAV”) without payment of a sales charge:
• | By qualified investors who (i) purchase Class A shares directly through | |
the Distributor, and (ii) have, or whose spouse or minor children have, | ||
beneficially owned shares and continuously maintained an open | ||
account directly through the Distributor in a Dreyfus-managed fund, | ||
including the fund, or a Founders Asset Management LLC | ||
(“Founders”) managed fund since on or before February 28, 2006. | ||
Founders is a wholly-owned subsidiary of the Distributor. |
22 |
• | With the cash proceeds from an investor’s exercise of employment- | |
related stock options, whether invested in the fund directly or indi- | ||
rectly through an exchange from a Dreyfus-managed money market | ||
fund, provided that the proceeds are processed through an entity that | ||
has entered into an agreement with the Distributor specifically relat- | ||
ing to processing stock options. Upon establishing the account in the | ||
fund or the Dreyfus-managed money market fund, the investor and | ||
the investor’s spouse and minor children become eligible to purchase | ||
Class A shares of the fund at NAV, whether or not using the proceeds | ||
of the employment-related stock options. |
• | By members of qualified affinity groups who purchase Class A shares | |
directly through the Distributor, provided that the qualified affinity | ||
group has entered into an affinity agreement with the Distributor. |
Effective March 1, 2006, Class A and Class T shares of the fund may be purchased at NAV without payment of a sales charge:
• | For Dreyfus-sponsored IRA “Rollover Accounts” with the distrib- | |
ution proceeds from qualified and non-qualified retirement plans or | ||
a Dreyfus-sponsored 403(b)(7) plan, provided that, in the case of a | ||
qualified or non-qualified retirement plan, the rollover is processed | ||
through an entity that has entered into an agreement with the | ||
Distributor specifically relating to processing rollovers. Upon estab- | ||
lishing the Dreyfus-sponsored IRA rollover account in the fund, the | ||
shareholder becomes eligible to make subsequent purchases of | ||
Class A or Class T shares of the fund at NAV in such account. |
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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The Fund 23 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available, are valued at the official closing price or, if there is no official closing price that day, at the last sale price. 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 in registered investment companies are valued at their NAV. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its NAV, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. 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.
24 |
(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 on 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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.
The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.
(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 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
The Fund 25 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
(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.
The fund has an unused capital loss carryover of $16,157,634 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2005. If not applied, $11,605,405 of the carryover expires in fiscal 2009, $3,503,697 expires in fiscal 2010 and $1,048,532 expires in fiscal 2011.
The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2005 were as follows: ordinary income $1,028,750. The tax character of current year distributions will be determined at the end of the current fiscal year.
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 based on prevailing market rates in effect at the time of borrowing. During the period ended April 30, 2006, the fund did not borrow under either line of credit.
NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement (“Agreement”) with Dreyfus, the investment advisory fee is computed at the annual rate of .75% of the value of the fund’s average daily net assets and is payable monthly. Dreyfus has undertaken from November 1, 2005 through
26 |
October 31, 2006, that if the aggregate expenses of the fund exclusive of taxes, brokerage fees, interest on borrowings, Rule 12b-1 distribution plan fees, shareholder services plan fees and extraordinary expenses, exceed an annual rate of 1.50% of the value of the fund’s average daily net assets the fund may deduct from the payment to be made to Dreyfus under the Agreement, or Dreyfus will bear, such excess expense. The reduction in investment advisory fee, pursuant to the undertaking, amounted to $45 during the period ended April 30, 2006.
During the period ended April 30, 2006, the Distributor retained $3,278 from commissions earned on sales of the fund’s Class A shares and $2,462 and $1 from CDSC on redemptions of the fund’s Class B and Class C shares, respectively.
(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 the value of the average daily net assets of Class B and Class C shares and .25% of the value of the average daily net assets of Class T shares. During the period ended April 30,2006,Class B,Class C and Class T shares were charged $9,598, $5,227 and $36, respectively, pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T shares pay the Distributor at an annual rate of .25% 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 other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2006, Class A, Class B, Class C and Class T shares were charged $45,105, $3,199, $1,742 and $36, respectively, pursuant to the Shareholder Services Plan.
The Fund 27 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2006, the fund was charged $17,423 pursuant to the transfer agency agreement.
During the period ended April 30, 2006, the fund was charged $1,926 for services performed by the Chief Compliance Officer.
The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $26,607, Rule 12b-1 distribution plan fees $2,679, shareholder services plan fees $8,843, chief compliance officer fees $1,284 and transfer agency per account fees $6,930, which are offset against an expense reimbursement currently in effect in the amount of $4.
(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding short-term securities, financial futures and forward currency exchange contracts, during the period ended April 30, 2006, amounted to $13,415,736 and $14,146,047, respectively.
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
28 |
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 counterparty nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract. At April 30,2006,there were no open forward currency exchange contracts.
The fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The fund is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the fund to “mark to market” on a daily basis, which reflects the change in market value of the contracts at the close of each day’s trading.Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses.When the contracts are closed, the fund recognizes a realized gain or loss.These investments require initial margin deposits with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at April 30, 2006, are set forth in the Statement of Financial Futures.
At April 30, 2006, accumulated net unrealized appreciation on investments was $11,450,719, consisting of $11,528,880 gross unrealized appreciation and $78,161 gross unrealized depreciation.
At April 30, 2006, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
NOTE 5—Subsequent Event:
Effective on or about June 1, 2006, the fund will no longer offer Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares.
The Fund 29 |
For More | Information | |
Dreyfus Premier | Transfer Agent & | |
International Growth Fund | Dividend Disbursing Agent | |
200 Park Avenue | ||
Dreyfus Transfer, Inc. | ||
New York, NY 10166 | ||
200 Park Avenue | ||
Manager | New York, NY 10166 | |
The Dreyfus Corporation | Distributor | |
200 Park Avenue | ||
Dreyfus Service Corporation | ||
New York, NY 10166 | ||
200 Park Avenue | ||
Custodian | New York, NY 10166 | |
The Bank of New York | ||
One Wall Street | ||
New York, NY 10286 |
Telephone Call your financial representative or 1-800-554-4611
The Dreyfus Premier Family of Funds | ||
144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 |
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2005, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.
Item 2. | Code of Ethics. | |
Not applicable. | ||
Item 3. | Audit Committee Financial Expert. | |
Not applicable. | ||
Item 4. | Principal Accountant Fees and Services. | |
Not applicable. | ||
Item 5. | Audit Committee of Listed Registrants. | |
Not applicable. | ||
Item 6. | Schedule of Investments. | |
Not applicable. | ||
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management | |
Investment Companies. | ||
Not applicable. | ||
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. | |
Not applicable. | ||
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies | |
Affiliated Purchasers. | ||
Not applicable. [CLOSED-END FUNDS ONLY] | ||
Item 10. | Submission of Matters to a Vote of Security Holders. |
The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.
-2- |
Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) | Not applicable. | |
(a)(2) | Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) | |
under the Investment Company Act of 1940. | ||
(a)(3) | Not applicable. | |
(b) | Certification of principal executive and principal financial officers as required by Rule 30a-2(b) | |
under the Investment Company Act of 1940. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dreyfus Premier International Funds, Inc. |
By: | /s/Stephen E. Canter | |
Stephen E. Canter | ||
President | ||
Date: | June 30, 2006 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
-3- |
Item 11. Controls and Procedures.
By: | /s/Stephen E. Canter | |
Stephen E. Canter | ||
Chief Executive Officer | ||
Date: | June 30, 2006 | |
By: | /s/James Windels | |
James Windels | ||
Chief Financial Officer | ||
Date: | June 30, 2006 | |
EXHIBIT INDEX | ||
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a- | ||
2(a) under the Investment Company Act of 1940. (EX-99.CERT) | ||
(b) Certification of principal executive and principal financial officers as required by Rule 30a- | ||
2(b) under the Investment Company Act of 1940. (EX-99.906CERT) |
-4- |