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 811-4688
Dreyfus Premier Value Equity Funds
(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: October, 31
Date of reporting period: April 30, 2003
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus Premier
International
Opportunities Fund
SEMIANNUAL REPORT April 30, 2003
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
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
16 Financial Highlights
21 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier
International Opportunities Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus Premier International Opportunities Fund
covers the six-month period from November 1, 2002, through April 30, 2003.
Inside, you'll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
D. Kirk Henry.
We have recently seen what we believe are encouraging signs of stability in the
U.S. financial markets. Perhaps most important, the war in Iraq ended quickly,
without disruptions in oil supplies or major incidents of terrorism. Many major
stock market indices have posted modest gains since the start of 2003,
suggesting greater investor optimism. At the same time, yield differences
between U.S. Treasury securities and corporate bonds have moved closer to
historical norms as many companies have strengthened their balance sheets.
Of course, problems and concerns remain. In international markets, Europe's
economy remains stagnant, and Asia's economy has been weakened by the spread of
SARS. Positive factors appear to outweigh negative ones, however, and we believe
that the U.S. will lead the global economy to recovery.
What are the implications for your investments? We are generally optimistic
about stocks, although security selection by region, sector and company should
remain a key factor. Your financial advisor can help you to ensure that your
portfolio reflects your investment needs, long-term goals and attitudes toward
risk.
Thank you for your continued confidence and support.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
May 15, 2003
DISCUSSION OF FUND PERFORMANCE
D. Kirk Henry, Senior Portfolio Manager
How did Dreyfus Premier International Opportunities Fund perform relative to its
benchmark?
For the six-month period ended April 30, 2003, the fund produced a total return
of -0.89% for Class A shares, -1.23% for Class B shares, -1.28% for Class C
shares, -0.60% for Class R shares and 0.93% for Class T shares.(1) This compares
with a 3.08% return for the fund's current benchmark, the Morgan Stanley Capital
International All Country World ex United States Free Index, for the same
period.(2) The fund' s previous benchmark, the Morgan Stanley Capital
International Europe, Australasia, Far East Index ("MSCI EAFE Index"), produced
a 1.81% return for the same period.(3) The change from the previous benchmark to
the current one occurred on January 1, 2003.
We attribute the fund's and market's generally negative returns to an uncertain
global economic environment that was adversely affected by escalating
geopolitical tensions. The fund's returns underperformed that of its current and
previous benchmarks, primarily because of its limited exposure to stocks within
the telecommunications industry as well as its heavier emphasis on investments
in Asia, which suffered during the reporting period due to the SARS outbreak
What is the fund's investment approach?
The fund seeks long-term capital growth. To pursue this goal, the fund
ordinarily invests most of its assets in equity securities of companies located
throughout the world, including emerging market countries. At least 80% of the
fund' s assets will be invested in stocks. Beginning January 1, 2003, the fund
normally can be expected to invest up to 35% of its total assets in the stocks
of emerging market companies.
The fund's investment approach is value-oriented, research driven and risk
adverse. In selecting stocks, we seek to identify potential investments through
extensive quantitative and fundamental research. Emphasizing individual stock
selection rather than economic and industry trends, the fund focuses on three
key factors: value; business health; and business momentum.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
The fund employs strict risk control guidelines with respect to portfolio,
country and sector diversification. Under normal market conditions:
* no single issue, at the time of purchase, will account for more than 2% of
the portfolio or 5% of the outstanding common stock of the issuer;
* the fund will be invested in at least 12 to 15 countries and country
weightings will deviate from the weightings of the fund's benchmark index
only within specific percentage ranges established by the portfolio
managers; and
* the weighting in any one sector will be no more than 10% of the weighting
of that sector in the benchmark index; nor will any sector represent more
than 25% of the portfolio.
What other factors influenced the fund's performance?
During the reporting period, a confluence of generally negative factors resulted
in an uncertain and volatile investment environment for the global equity
markets.
In addition, the fund' s performance relative to its current and previous
benchmarks suffered during the reporting period because of its limited exposure
to some of the indices' better-performing industry sectors. For example, the
fund had limited representation to stocks within the telecommunications industry
due to the concerns about the long-term earnings prospects of companies that had
been hit particularly hard during the bear market. Three key companies within
the telecommunications industry staged a rebound during the reporting period:
Vodaphone, Deutsche Telecom and France Telecom. However, the fund was not
invested in any of these stocks, hurting its relative performance.
Another factor negatively influencing the fund's performance was its relatively
heavy emphasis on stocks in Asian markets, most notably in Japan, China,
Singapore and Hong Kong. The SARS outbreak created negative investor sentiment
toward these countries.
On the other hand, the fund enjoyed solid returns from its investments in oil
and electrical companies in Spain, several Brazilian banks and Mexican consumer
discretionary stocks. The fund also produced relatively strong returns in
France, primarily by investing in banks and avoiding semiconductor stocks; in
Hungary, where we focused on generic pharmaceutical stocks; and in a wide array
of stocks in India.
As for our sector allocation strategy, the fund's strongest returns stemmed from
the energy, utilities and financials areas, while the weakest returns occurred
in the materials, consumer staples and consumer discretionary industry sectors.
What is the fund's current strategy?
As mentioned in our report to shareholders six months ago, we revised the fund's
investment strategy and benchmark index as of January 1, 2003. The most
significant change is that up to 35% of the fund's total assets may be invested
in stocks from the emerging markets, which we believe gives us greater
flexibility to capture potential opportunities in those growing markets. Of
course, the risks of investing in emerging markets are greater than those of
investing in more established foreign companies.
At the same time, we continue to adhere to our longstanding diversification
strategy, spreading risk among regions, sectors and individual securities that,
in our view, are attractively priced and enjoy strong business fundamentals
As of the end of the reporting period, we are finding what we believe to be
attractive investment opportunities in Asian stocks that have fallen sharply as
a result of the SARS outbreak, including a bank in Hong Kong and a Chinese
utility company that should benefit from industry liberation. In contrast, we
have reduced the fund' s investments in Russian oil and Chinese aluminum
companies by locking in profits after their stocks had appreciated.
May 15, 2003
(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. RETURN FIGURES PROVIDED
REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT
TO AN AGREEMENT IN EFFECT THROUGH OCTOBER 31, 2003, AT WHICH TIME IT MAY BE
EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT BEEN ABSORBED, THE
FUND'S RETURNS WOULD HAVE BEEN LOWER.
() INVESTING INTERNATIONALLY INVOLVES SPECIAL RISKS, INCLUDING CHANGES IN
CURRENCY EXCHANGE RATES; POLITICAL, ECONOMIC AND SOCIAL INSTABILITY; A LACK
OF COMPREHENSIVE COMPANY INFORMATION; DIFFERENT AUDITING AND LEGAL
STANDARDS; AND LESS MARKET LIQUIDITY. THESE RISKS ARE GREATER WITH EMERGING
MARKET COUNTRIES.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF GROSS DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL
INTERNATIONAL ALL COUNTRY WORLD EX U.S. FREE INDEX IS A FREE FLOAT-ADJUSTED
MARKET CAPITALIZATION WEIGHTED INDEX THAT IS DESIGNED TO TRACK THE
PERFORMANCE OF BOTH DEVELOPED AND EMERGING MARKET COUNTRIES, EXCLUDING THE
UNITED STATES.
(3) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL
INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (MSCI EAFE) INDEX IS AN
UNMANAGED INDEX COMPOSED OF A SAMPLE OF COMPANIES REPRESENTATIVE OF THE
MARKET STRUCTURE OF EUROPEAN AND PACIFIC BASIN COUNTRIES.
The Fund
STATEMENT OF INVESTMENTS
April 30, 2003 (Unaudited)
COMMON STOCKS--82.1% Shares Value ($)
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AUSTRALIA--1.4%
Australia and New Zealand Banking 6,105 71,298
Santos 18,900 68,644
139,942
BELGIUM--2.0%
Dexia 8,970 102,974
Dexia (Strips) 4,730 (a) 53
Fortis 6,550 109,238
212,265
BRAZIL--1.3%
Banco Itau, ADR 1,230 40,959
Petroleo Brasileiro, ADR 2,750 51,012
Telecomunicacoes Brasileiras, ADR 1,824 47,388
139,359
CANADA--1.7%
Magna International, Cl. A 1,050 61,562
Quebecor World 6,650 111,182
172,744
CHINA--.7%
PetroChina, Cl. H 129,500 29,556
Shandong International Power Development, Cl. H 196,000 42,471
72,027
CROATIA--.3%
Pliva, GDR 2,100 (b) 28,593
FINLAND--1.4%
Nokia, ADR 4,359 72,229
Sampo, Cl. A 9,650 70,114
142,343
FRANCE--6.5%
Air France 1,920 21,419
Assurances Generales de France 1,665 55,257
Aventis 2,350 119,547
BNP Paribas 1,050 49,365
Compagnie Generale des Etablissements Michelin, Cl. B 1,836 68,033
Pechiney, Cl. A 2,825 81,629
Schneider Electric 940 44,572
COMMON STOCKS (CONTINUED) Shares Value ($)
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FRANCE (CONTINUED)
Thomson 6,000 (a) 88,060
Total Fina Elf 705 92,596
Total Fina Elf, ADR 784 51,509
671,987
GERMANY--4.5%
Deutsche Bank 1,100 56,807
Deutsche Lufthansa 4,290 (a) 44,117
Deutsche Post 7,120 85,556
E.ON 2,734 129,883
KarstadtQuelle 4,400 74,513
Volkswagen 2,190 76,866
467,742
GREECE--.9%
Hellenic Telecommunications Organization 8,240 88,607
HONG KONG--1.9%
Bank of East Asia 30,195 55,944
China Mobile (Hong Kong) 27,000 54,179
MTR 38,012 40,940
Swire Pacific, Cl. A 12,500 49,524
200,587
HUNGARY--.8%
Gedeon Richter 575 41,833
Magyar Tavkozlesi 10,300 40,653
82,486
INDIA--1.4%
Hindalco Industries, GDR 3,200 (b) 40,928
Mahanagar Telephone Nigam, ADR 11,700 45,630
Reliance Industries, GDR 4,800 (b) 55,200
141,758
INDONESIA--.8%
PT Gudang Garam 42,500 42,385
PT Indonesian Satellite 44,800 44,937
87,322
IRELAND--1.1%
Bank of Ireland 9,570 117,136
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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ITALY--3.0%
Banca Popolare di Bergamo-Credito Varesino 3,190 64,113
Eni 4,605 65,733
Finmeccanica 136,760 81,327
Sanpaolo IMI 6,570 54,272
Telecom Italia 8,390 41,358
306,803
JAPAN--15.5%
AIFUL 1,250 47,102
CANON 3,000 121,625
Credit Saison 5,900 111,410
Eisai 3,800 67,281
Fuji Heavy Industries 9,600 34,479
HONDA MOTOR 2,400 79,738
KONAMI 2,400 31,653
Kao 3,300 60,371
LAWSON 1,700 52,334
MABUCHI MOTOR 1,000 74,943
MINEBEA 16,500 49,129
MURATA MANUFACTURING 1,400 50,046
Matsumotokiyoshi 1,800 80,242
NIPPON TELEGRAPH AND TELEPHONE 13 45,706
NISSAN MOTOR 5,100 39,251
Nippon Express 20,000 74,859
RINNAI 2,800 61,233
SFCG 690 48,171
SKYLARK 4,200 45,218
Sekisui House 3,000 22,105
77 Bank 14,000 59,584
Shin-Etsu Chemical 2,300 69,064
Sumitomo Bakelite 12,000 42,594
TDK 900 31,340
Takeda Chemical Industries 2,600 95,567
Toyota Motor 1,300 29,523
Yamaha Motor 10,000 74,691
1,599,259
COMMON STOCKS (CONTINUED) Shares Value ($)
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LUXEMBOURG--.7%
Arcelor 6,100 69,140
MALAYSIA--.6%
Malaysia International Shipping 14,000 27,447
Sime Darby 29,000 38,158
65,605
MEXICO--1.4%
Coca-Cola Femsa, ADR 2,600 55,250
Kimberly-Clark de Mexico, Cl. A 19,200 47,290
Telefonos de Mexico, ADR 1,560 47,128
149,668
NETHERLANDS--3.6%
ABN AMRO 4,524 76,562
Akzo Nobel 3,930 87,507
Hunter Douglas 1,538 45,042
Koninklijke (Royal) Philips Electronics, ADR 3,650 68,182
Vedior 5,034 33,256
Wolters Kluwer 4,652 60,684
371,233
NEW ZEALAND--.6%
Telecom Corporation of New Zealand 23,696 63,573
NORWAY--1.1%
Norsk Hydro 1,250 52,857
Statoil 7,340 58,196
111,053
POLAND--.4%
KGHM Polska Miedz 12,800 (a) 38,808
PORTUGAL--1.2%
EDP 38,380 69,500
Portugal Telecom 7,527 53,932
123,432
SINGAPORE--1.5%
Creative Technology 4,590 29,234
DBS 22,100 108,370
MobileOne 26,200 18,607
156,211
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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SOUTH AFRICA--1.4%
Nampak 26,600 41,312
Nedcor 3,500 47,018
Tiger Brands 5,900 51,640
139,970
SOUTH KOREA--1.9%
Hyundai Motor 900 21,268
KT, ADR 2,100 42,504
Kookmin Bank, ADR 1,750 48,213
Korea Electric Power, ADR 5,360 50,491
POSCO, ADR 1,900 39,045
201,521
SPAIN--2.1%
Endesa 9,790 139,089
Repsol YPF, ADR 5,620 81,771
220,860
SWEDEN--.8%
Autoliv 1,465 35,912
Investor, Cl. B 7,260 47,606
83,518
SWITZERLAND--4.9%
Clariant 4,140 46,289
Nestle 510 104,070
Novartis 3,280 129,506
Roche 1,710 108,909
UBS 2,460 116,827
505,601
TAIWAN--.5%
United Microelectronics, ADR 16,550 (a) 53,622
UNITED KINGDOM--14.2%
Allied Domecq 22,820 128,069
Anglo American 3,800 54,439
BAE SYSTEMS 35,045 71,163
BOC 7,354 92,773
Barclays 17,314 119,661
Bunzl 11,192 80,617
Cadbury Schweppes 20,648 115,054
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED KINGDOM (CONTINUED)
Centrica 22,500 59,809
Debenhams 9,200 47,807
GKN 29,650 97,659
GlaxoSmithKline 6,970 139,750
Old Mutual 25,200 36,968
Rio Tinto 4,453 85,154
Sainsbury (J) 30,947 117,023
Scottish and Southern Energy 7,560 77,724
Shell Transport & Trading 23,376 140,066
1,463,736
TOTAL COMMON STOCKS
(cost $9,015,541) 8,488,511
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Principal
SHORT-TERM INVESTMENTS--18.9% Amount ($) Value ($)
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U.S. TREASURY BILLS:
1.08%, 5/8/2003 200,000 199,958
1.08%, 5/22/2003 1,750,000 1,748,880
TOTAL SHORT-TERM INVESTMENTS
(cost $1,948,852) 1,948,838
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TOTAL INVESTMENTS (cost $10,964,393) 101.0% 10,437,349
LIABILITIES, LESS CASH AND RECEIVABLES (1.0%) (102,274)
NET ASSETS 100.0% 10,335,075
(A) NON-INCOME PRODUCING.
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT APRIL 30,
2003, THESE SECURITIES AMOUNTED TO $124,721 OR 1.2% OF NET ASSETS.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2003 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 10,964,393 10,437,349
Cash 256,214
Cash denominated in foreign currencies 73,261 81,960
Dividends receivable 58,341
Receivable for shares of Beneficial Interest subscribed 31,794
Net unrealized appreciation on forward
currency exchange contracts--Note 4 917
Prepaid expenses 38,427
Due from The Dreyfus Corporation and affiliates 3,955
10,908,957
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LIABILITIES ($):
Payable for shares of Beneficial Interest redeemed 187,055
Payable for investment securities purchased 340,961
Accrued expenses 45,866
573,882
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NET ASSETS ($) 10,335,075
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 12,140,962
Accumulated undistributed investment income--net 6,043
Accumulated net realized gain (loss) on investments (1,294,726)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (517,204)
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NET ASSETS ($) 10,335,075
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
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Net Assets ($) 5,720,046 1,987,034 2,169,206 384,008 74,781
Shares Outstanding 617,705 221,540 241,883 41,147 8,007
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NET ASSET VALUE
PER SHARE ($) 9.26 8.97 8.97 9.33 9.34
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2003 (Unaudited)
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INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $12,782 foreign taxes withheld at source) 100,595
Interest 3,512
TOTAL INCOME 104,107
EXPENSES:
Management fee--Note 3(a) 41,956
Registration fees 30,669
Shareholder servicing costs--Note 3(c) 26,683
Custodian fees 26,682
Auditing fees 15,120
Distribution fees--Note 3(b) 14,034
Prospectus and shareholders' reports 8,751
Trustees' fees and expenses--Note 3(d) 1,669
Legal fees 893
Loan commitment fees--Note 2 59
Miscellaneous 8,987
TOTAL EXPENSES 175,503
Less--expense reimbursement from The Dreyfus Corporation
due to undertaking--Note 3(a) (78,033)
NET EXPENSES 97,470
INVESTMENT INCOME--NET 6,637
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions (539,933)
Net realized gain (loss) on forward currency exchange contracts 6,756
NET REALIZED GAIN (LOSS) (533,177)
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions 442,445
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (90,732)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (84,095)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2003 Year Ended
(Unaudited) October 31, 2002
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OPERATIONS ($):
Investment income--net 6,637 24,091
Net realized gain (loss) on investments (533,177) (488,437)
Net unrealized appreciation
(depreciation) on investments 442,445 (119,868)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (84,095) (584,214)
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (59,889) --
Class B shares (18,053) --
Class C shares (20,906) --
Class R shares (6,701) --
Class T shares (369) --
TOTAL DIVIDENDS (105,918) --
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 4,352,839 14,001,010
Class B shares 2,917,560 2,346,603
Class C shares 1,428,919 1,779,616
Class T shares 846,606 41,952
Dividends reinvested:
Class A shares 23,749 --
Class B shares 13,802 --
Class C shares 9,041 --
Class R shares 323 --
Class T shares 467 --
Cost of shares redeemed:
Class A shares (2,427,030) (13,569,321)
Class B shares (2,534,367) (1,361,574)
Class C shares (781,821) (679,631)
Class R shares (49,662) (412,441)
Class T shares (793,244) (15,668)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS 3,007,182 2,130,546
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,817,169 1,546,332
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NET ASSETS ($):
Beginning of Period 7,517,906 5,971,574
END OF PERIOD 10,335,075 7,517,906
Undistributed investment income--net 6,043 105,324
Six Months Ended
April 30, 2003 Year Ended
(Unaudited) October 31, 2002
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CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 471,124 1,305,639
Shares issued for dividends reinvested 2,559 --
Shares redeemed (265,863) (1,255,625)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 207,820 50,014
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CLASS B(A)
Shares sold 328,193 240,429
Shares issued for dividends reinvested 1,532 --
Shares redeemed (285,242) (143,436)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 44,483 96,993
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CLASS C
Shares sold 158,759 179,878
Shares issued for dividends reinvested 1,003 --
Shares redeemed (86,515) (66,150)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 73,247 113,728
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CLASS R
Shares issued for dividends reinvested 35 --
Shares redeemed (5,130) (38,428)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (5,095) (38,428)
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CLASS T
Shares sold 90,264 3,906
Shares issued for dividends reinvested 50 --
Shares redeemed (84,583) (1,713)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 5,731 2,193
(A) DURING THE PERIODS ENDED APRIL 30, 2003 AND OCTOBER 31, 2002, THERE WERE NO
SHARES CONVERTED
FROM CLASS B TO CLASS A.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Six Months Ended Year Ended October 31,
April 30, 2003 ------------------------------------------------------------------
CLASS A SHARES (Unaudited) 2002 2001 2000 1999 1998(a)
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PER SHARE DATA ($):
Net asset value,
beginning of period 9.47 10.35 12.96 13.98 11.32 12.50
Investment Operations:
Investment income--net .02(b) .06(b) .04(b) .03(b) .03(b) .05
Net realized and unrealized
gain (loss) on investments (.10) (.94) (1.63) (.10) 2.75 (1.23)
Total from
Investment Operations (.08) (.88) (1.59) (.07) 2.78 (1.18)
Distributions:
Dividends from investment
income--net (.13) -- -- (.04) (.07) --
Dividends from net realized
gain on investments -- -- (1.02) (.91) (.05) --
Total Distributions (.13) -- (1.02) (.95) (.12) --
Net asset value, end of period 9.26 9.47 10.35 12.96 13.98 11.32
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TOTAL RETURN (%)(C) (.89)(d) (8.50) (13.57) (.69) 24.75 (9.44)(d)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .99(d) 2.00 2.00 2.00 2.00 1.19(d)
Ratio of net investment income
to average net assets .24(d) .52 .35 .24 .22 .39(d)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .93(d) 1.47 1.69 1.16 1.31 .92(d)
Portfolio Turnover Rate 27.29(d) 65.83 49.65 42.16 41.73 17.71(d)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 5,720 3,882 3,724 4,121 4,110 3,213
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended Year Ended October 31,
April 30, 2003 ----------------------------------------------------------------
CLASS B SHARES (Unaudited) 2002 2001 2000 1999 1998(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 9.17 10.11 12.78 13.86 11.27 12.50
Investment Operations:
Investment (loss)--net (.01)(b) (.03)(b) (.05)(b) (.07)(b) (.08)(b) (.01)
Net realized and unrealized
gain (loss) on investments (.10) (.91) (1.60) (.10) 2.74 (1.22)
Total from
Investment Operations (.11) (.94) (1.65) (.17) 2.66 (1.23)
Distributions:
Dividends from investment
income--net (.09) -- -- -- (.02) --
Dividends from net realized
gain on investments -- -- (1.02) (.91) (.05) --
Total Distributions (.09) -- (1.02) (.91) (.07) --
Net asset value, end of period 8.97 9.17 10.11 12.78 13.86 11.27
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (1.23)(d) (9.30) (14.28) (1.42) 23.70 (9.84)(d)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.36(d) 2.75 2.75 2.75 2.75 1.64(d)
Ratio of net investment
(loss) to average net assets (.14)(d) (.34) (.45) (.52) (.60) (.07)(d)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .91(d) 1.49 1.72 1.14 1.27 .92(d)
Portfolio Turnover Rate 27.29(d) 65.83 49.65 42.16 41.73 17.71(d)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 1,987 1,624 809 799 960 483
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended Year Ended October 31,
April 30, 2003 ----------------------------------------------------------------
CLASS C SHARES (Unaudited) 2002 2001 2000 1999 1998(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 9.19 10.12 12.79 13.87 11.27 12.50
Investment Operations:
Investment (loss)--net (.01)(b) (.04)(b) (.05)(b) (.06)(b) (.07)(b) (.01)
Net realized and unrealized
gain (loss) on investments (.11) (.89) (1.60) (.11) 2.74 (1.22)
Total from
Investment Operations (.12) (.93) (1.65) (.17) 2.67 (1.23)
Distributions:
Dividends from investment
income--net (.10) -- -- -- (.02) --
Dividends from net realized
gain on investments -- -- (1.02) (.91) (.05) --
Total Distributions (.10) -- (1.02) (.91) (.07) --
Net asset value, end of period 8.97 9.19 10.12 12.79 13.87 11.27
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (1.28)(d) (9.19) (14.27) (1.42) 23.77 (9.84)(d)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.36(d) 2.75 2.75 2.75 2.75 1.64(d)
Ratio of net investment
(loss) to average net assets (.12)(d) (.43) (.44) (.47) (.55) (.06)(d)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .92(d) 1.54 1.68 1.17 1.31 .92(d)
Portfolio Turnover Rate 27.29(d) 65.83 49.65 42.16 41.73 17.71(d)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 2,169 1,549 556 677 585 451
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended Year Ended October 31,
April 30, 2003 ----------------------------------------------------------------
CLASS R SHARES (Unaudited) 2002 2001 2000 1999 1998(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 9.55 10.41 13.00 14.01 11.33 12.50
Investment Operations:
Investment income--net .03(b) .08(b) .07(b) .07(b) .08(b) .06
Net realized and unrealized
gain (loss) on investments (.09) (.94) (1.64) (.10) 2.74 (1.23)
Total from
Investment Operations (.06) (.86) (1.57) (.03) 2.82 (1.17)
Distributions:
Dividends from investment
income--net (.16) -- -- (.07) (.09) --
Dividends from net realized
gain on investments -- -- (1.02) (.91) (.05) --
Total Distributions (.16) -- (1.02) (.98) (.14) --
Net asset value, end of period 9.33 9.55 10.41 13.00 14.01 11.33
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (.60)(c) (8.26) (13.36) (.39) 25.12 (9.36)(c)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .87(c) 1.75 1.75 1.75 1.75 1.04(c)
Ratio of net investment income
to average net assets .31(c) .73 .55 .48 .62 .53(c)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .90(c) 1.46 1.68 1.16 1.32 .92(c)
Portfolio Turnover Rate 27.29(c) 65.83 49.65 42.16 41.73 17.71(c)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 384 442 881 1,147 1,116 453
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended Year Ended October 31,
April 30, 2003 ----------------------------------------------
CLASS T SHARES (Unaudited) 2002 2001 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.39 10.29 12.91 13.06
Investment Operations:
Investment income (loss)--net .04(b) (.04)(b) .00(b,c) .05(b)
Net realized and unrealized gain
(loss) on investments .05 (.86) (1.60) (.20)
Total from Investment Operations .09 (.90) (1.60) (.15)
Distributions:
Dividends from investment income--net (.14) -- -- --
Dividends from net realized gain
on investments -- -- (1.02) --
Total Distributions (.14) -- (1.02) --
Net asset value, end of period 9.34 9.39 10.29 12.91
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(D) .93(e) (8.75) (13.70) (1.15)(e)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.11(e) 2.25 2.25 1.51(e)
Ratio of net investment income
(loss) to average net assets .31(e) (.41) .04 .35(e)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.30(e) 2.96 1.70 .85(e)
Portfolio Turnover Rate 27.29(e) 65.83 49.65 42.16
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 75 21 1 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier International Opportunities Fund (the "fund") is a separate
non-diversified series of Dreyfus Premier Value Equity Funds (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 a series
company, currently offering two series, including the fund. The fund' s
investment objective is long-term capital growth. The Dreyfus Corporation (the
"Manager") serves as the fund' s investment adviser. The Manager is a
wholly-owned subsidiary of Mellon Bank, N.A. ("Mellon"), which is a wholly-owned
subsidiary of Mellon Financial Corporation.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of
the Manager, is the distributor of the fund's shares. The fund is authorized to
issue an unlimited number of $.001 par value shares of Beneficial Interest 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.
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 accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market. Effective April 14, 2003, the fund began pricing
securities traded on the NASDAQ stock market using the NASDAQ official closing
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. Securities for which there are no such valuations are valued
at fair value as determined in good faith under the direction of the Board of
Trustees. Investments denominated in foreign currencies are translated to U.S.
dollars at the prevailing rates of exchange. Forward currency exchange contracts
are valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis.
Dividend income is recognized on the ex-dividend date and interest income,
including, where applicable, amortization of discount and premium on
investments, is recognized on the accrual basis. Under the terms of the custody
agreement, the fund receives net earnings credits based on available cash
balances left on deposit.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, 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.
(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 $569,958 available for federal
income tax purposes to be applied against future net securities profits, if any,
realized subsequent to October 31, 2002. If not applied, $153,123 of the
carryover expires in fiscal 2009 and $416,835 expires in fiscal 2010.
During the period ended October 31, 2002, the fund did not pay distributions.
The tax character of current year distributions will be determined at the end of
the current fiscal year.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commit
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
ment fees on its pro rata portion of the Facility. Interest is charged to the
fund based on prevailing market rates in effect at the time of borrowings.
During the period ended April 30, 2003, the fund did not borrow under the
Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of 1% of the value of the fund's
average daily net assets and is payable monthly. The Manager has undertaken from
November 1, 2002 through October 31, 2003, that, if the aggregate expenses of
the fund exclusive of taxes, brokerage fees, interest on borrowings, 12b-1
distribution plan fees, shareholder services plan fees, commitment fees and
extraordinary expenses, exceed an annual rate of 1.75% of the value of the
fund's average daily net assets, the fund may deduct from the payment to be made
to the Manager under the Agreement, or the Manager will bear such excess
expenses. The expense reimbursement, pursuant to the undertaking, amounted to
$78,033 during the period ended April 30, 2003.
During the period ended April 30, 2003, the Distributor retained $426 from
commissions earned on sales of fund Class A shares and $1,759 and $964 from
contingent deferred sales charges on redemptions of the fund's Class B and 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 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
April 30, 2003, Class B, Class C and Class T shares were charged $6,868, $7,096
and $70, 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 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or 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, 2003, Class A, Class B, Class C and
Class T shares were charged $5,288, $2,289, $2,365 and $70, respectively,
pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2003, the fund was charged $4,508 pursuant to the transfer
agency agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $25,000
and an attendance fee of $4,000 for each in-person meeting and $500 for
telephone meetings. These fees are allocated among the funds in the Fund Group
in proportion to each fund' s relative net assets. The Chairman of the Board
receives an additional 25% of such compensation. Subject to the Company's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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, 2003, amounted to $3,625,296 and $2,168,623, respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the fund would incur a loss if the value
of the contract decreases between the date the forward contract is opened and
the date the forward contract is closed. The fund realizes a gain if the value
of the contract increases between those dates. The fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gains
on each open contract. The following summarizes open forward currency exchange
contracts at April 30, 2003:
Foreign Unrealized
Forward Currency Currency Appreciation
Exchange Contracts Amounts Cost ($) Value ($) (Depreciation) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PURCHASES:
Australian Dollars,
expiring 5/2/2003 18,937 11,807 11,858 51
British Pounds,
expiring 5/2/2003 52,247 83,491 83,538 47
Euro, expiring 5/2/2003 135,948 151,242 151,963 721
Hong Kong Dollar,
expiring 5/2/2003 57,608 7,387 7,386 (1)
Swiss Francs,
expiring 5/2/2003 33,078 24,313 24,412 99
TOTAL 917
At April 30, 2003, accumulated net unrealized depreciation on investments was
$527,044, consisting of $518,065 gross unrealized appreciation and $1,045,109
gross unrealized depreciation.
At April 30, 2003, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
NOTES
For More Information
Dreyfus Premier
International Opportunities Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call your financial
representative or
1-800-554-4611
BY MAIL Write to:
The Dreyfus Premier Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
(c) 2003 Dreyfus Service Corporation 173SA0403
Dreyfus Premier
Value Fund
SEMIANNUAL REPORT April 30, 2003
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 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
27 Proxy Results
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Value Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus Premier Value Fund covers the six-month
period from November 1, 2002, through April 30, 2003. Inside, you'll find
valuable information about how the fund was managed during the reporting period,
including a discussion with the fund's portfolio manager, Douglas D. Ramos, CFA
We have recently seen what we believe are encouraging signs of stability in the
U.S. financial markets. Perhaps most important, the war in Iraq ended quickly,
without disruptions in oil supplies or major incidents of terrorism. Many major
stock market indices have posted modest gains since the start of 2003,
suggesting greater investor optimism. At the same time, yield differences
between U.S. Treasury securities and corporate bonds have moved closer to
historical norms as many companies have strengthened their balance sheets.
Of course, problems and concerns remain. In the U.S. economy, unemployment has
risen to multiyear highs and corporations remain reluctant to spend. Positive
factors appear to outweigh negative ones, however, and we believe that the U.S.
economy is on the path to recovery.
What are the implications for your investments? We are generally optimistic
about the stock market, although security selection should remain a key factor.
We continue to favor areas of the bond market that are more credit-sensitive and
believe municipal bonds may benefit if state and local tax rates rise. Your
financial advisor can help you to ensure that your portfolio reflects your
investment needs, long-term goals and attitudes toward risk.
Thank you for your continued confidence and support.
Sincerely,
/s/STEPHEN E. CANTER
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
May 15, 2003
DISCUSSION OF FUND PERFORMANCE
Douglas D. Ramos, CFA, Portfolio Manager
How did Dreyfus Premier Value Fund perform relative to its benchmark?
For the six-month period ended April 30, 2003, the fund's Class A shares
produced a total return of 3.01%, Class B shares produced a total return of
2.60% , Class C shares produced a total return of 2.56%, Class R shares produced
a total return of 2.81% and Class T shares produced a total return of 2.02%.(1)
This compares with the performance of the fund's benchmark, the Russell 1000
Value Index (the "Index"), which produced a total return of 5.25% for the same
period.(2)
We attribute these results to economic and geopolitical uncertainties, which led
to heightened levels of volatility for many stocks. Markets edged upward
primarily due to brief, speculative rallies in November 2002 and April 2003.
While the fund shared in these advances to a degree, the market's strongest
moves occurred among relatively small companies that we believe have relatively
weak fundamentals. Since the fund tends to avoid such stocks, the fund
underperformed its benchmark.
What is the fund's investment approach?
The fund seeks capital growth. To pursue this goal, it invests at least 80% of
its assets in stocks. The fund focuses on larger, more-established companies
that the fund's manager believes are "undervalued," but the fund can invest in
companies of any size. The fund's stock investments may include common stocks,
preferred stocks and convertible securities of both U.S. and foreign issuers,
including those purchased in initial public offerings. The fund expects to
invest mainly in the stocks of U.S. issuers, but may invest up to 30% of its
assets in foreign stocks.
In choosing stocks, the portfolio manager looks for value companies that provide
opportunities for capital growth. We select investments one stock and one
company at a time. Our investment process starts with computerized, quantitative
analysis of the universe of stocks, first to identify those
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
that appear underpriced in relation to their intrinsic values, and then to focus
on those value stocks we believe are positioned to grow in the prevailing market
environment. Our team of experienced analysts examines the fundamentals of each
candidate, providing additional information to help the portfolio manager decide
which to purchase or sell.
We select stocks based on value, or how a stock is priced relative to its
intrinsic worth; growth, in this case the sustainability or growth of earnings
or cash flow; and financial profile, which measures the financial health of the
company.
What other factors influenced the fund's performance?
Stock prices gyrated during the reporting period in response to uncertainties
over the strength of U.S. economic growth, along with shifts in sentiment
regarding the war in Iraq. The market enjoyed its sharpest gains in November
2002, when promising data led many investors to anticipate accelerating U.S.
economic growth. The rally was concentrated in the beaten-down areas of
technology and telecommunications, particularly among lower quality, more
speculative stocks, which the fund generally avoided.
In addition, a handful of individual holdings in various other areas also
undermined the fund's performance relative to its benchmark. For example, in the
consumer discretionary area, the stock price of clothing retailer Jones Apparel
Group declined when the company unexpectedly lost licensing rights to a major
brand label. In the financial area, insurer AIG lost ground when the company
assigned additional funds to litigation-related reserves, and JP Morgan Chase &
Co. declined in response to loan losses. In each of these cases, we believed
these companies remained fundamentally well-positioned to prosper over the long
term. Accordingly, we took advantage of declining stock prices to increase the
fund's holdings in these names.
On a more positive note, the fund achieved better than average returns in
several areas as a result of our emphasis on stocks we believed were likely to
benefit from a cyclical upturn in business. In the materials an
processing area, the fund enjoyed strong performance from chemical producers,
such as Dow Chemical that gained value as a result of rising commodity prices.
We also enhanced performance by allocating relatively few assets to the
traditionally defensive area of consumer staples, and to telecommunications
companies, which continued to suffer from overcapacity and weak demand.
What is the fund's current strategy?
As of April 30, 2003, the fund holds a relatively small position in the
utilities area, where we believe stocks are plagued by a combination of balance
sheet, regulatory and commodity price concerns. We also hold a relatively few
number of consumer discretionary stocks that appear overpriced to us and that we
believe offer relatively little exposure to improving economic conditions.
Instead, we have emphasized consumer discretionary and materials and processing
stocks that we believe are well-positioned to benefit from a more robust
economic recovery.
May 15, 2003
(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.
() PART OF THE PORTFOLIO'S RECENT PERFORMANCE IS ATTRIBUTABLE TO ITS INITIAL
PUBLIC OFFERING (IPO) INVESTMENTS. THERE CAN BE NO GUARANTEE THAT IPOS WILL
HAVE OR CONTINUE TO HAVE A POSITIVE EFFECT ON THE PORTFOLIO'S PERFORMANCE.
(2) SOURCE: LIPPER INC. -- REFLECTS THE REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAINS DISTRIBUTIONS. THE RUSSELL 1000 VALUE INDEX IS AN
UNMANAGED INDEX WHICH MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000
COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH
VALUES.
The Fund
STATEMENT OF INVESTMENTS
April 30, 2003 (Unaudited)
COMMON STOCKS--97.7% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
BANKING--11.9%
Bank of America 51,300 3,798,765
Bank of New York 46,600 1,232,570
FleetBoston Financial 63,500 1,684,020
HSBC Holdings, ADR 7,074 386,877
JPMorgan Chase & Co. 39,900 1,171,065
US Bancorp 53,000 1,173,950
Washington Mutual 33,000 1,303,500
Wells Fargo 59,800 2,885,948
13,636,695
CONSUMER DISCRETIONARY--14.7%
AOL Time Warner 72,000 (a) 984,960
Best Buy 18,000 622,440
Carnival 47,000 1,296,730
Clear Channel Communications 22,300 (a) 872,153
Comcast, Cl. A 55,691 (a) 1,777,100
Disney (Walt) 84,100 1,569,306
Hilton Hotels 27,000 359,640
Home Depot 21,000 590,730
Jones Apparel Group 32,700 (a) 932,604
Lamar Advertising 17,000 (a) 610,640
Liberty Media 119,400 (a) 1,313,400
Liz Claiborne 38,600 1,255,658
Magna International 6,000 351,780
May Department Stores 25,800 557,796
McDonald's 60,500 1,034,550
Target 41,300 1,381,072
Viacom, Cl. B 32,800 (a) 1,423,848
16,934,407
CONSUMER STAPLES--3.5%
Altria Group 20,800 639,808
Dean Foods 17,000 (a) 740,010
Dial 11,000 229,130
Kimberly-Clark 12,400 617,148
Kraft Foods 14,500 448,050
PepsiCo 17,700 766,056
UST 18,700 585,871
4,026,073
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY--9.9%
Anadarko Petroleum 25,700 1,141,080
Devon Energy 49,556 2,341,511
Exxon Mobil 164,260 5,781,952
Schlumberger 37,000 1,551,410
Transocean 15,600 (a) 297,180
XTO Energy 11,400 222,300
11,335,433
FINANCIALS--24.6%
American Express 69,500 2,631,270
American International Group 83,927 4,863,570
Bank One 31,600 1,139,180
Banknorth Group 26,000 620,880
Citigroup 133,301 5,232,064
Countrywide Financial 12,200 824,720
E*TRADE Group 146,000 (a) 803,000
Federal Home Loan Mortgage 28,100 1,626,990
Federal National Mortgage Association 21,300 1,541,907
Goldman Sachs Group 5,000 379,500
MBNA 45,500 859,950
Marsh & McLennan Cos. 19,000 905,920
Morgan Stanley 48,600 2,174,850
RenaissanceRe Holdings 26,000 1,151,540
SLM 4,400 492,800
Sovereign Bancorp 42,000 648,900
St. Paul Cos. 17,500 600,950
Travelers Property Casualty, Cl. A 97,197 1,577,507
Travelers Property Casualty, Cl. B 11,678 189,768
28,265,266
HEALTH CARE--4.7%
Anthem 9,500 (a) 652,080
Bard (C.R.) 9,000 570,420
Bristol-Myers Squibb 22,000 561,880
Merck & Co. 39,200 2,280,656
WellPoint Health Networks 9,400 (a) 713,836
Wyeth 15,000 652,950
5,431,822
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--6.5%
CSX 20,000 639,600
Caterpillar 17,000 894,200
Deere & Co. 13,000 572,390
Emerson Electric 18,100 917,670
Manpower 11,000 361,680
Norfolk Southern 25,400 538,734
Northrop Grumman 7,000 615,650
Raytheon 20,000 598,600
Republic Services 28,000 (a) 600,880
Tyco International 35,000 546,000
United Technologies 11,000 679,910
Waste Management 26,000 564,720
7,530,034
INFORMATION TECHNOLOGY--6.7%
Accenture, Cl. A 45,400 (a) 727,308
Computer Sciences 20,000 (a) 659,000
EMC 74,000 (a) 672,660
Electronic Data Systems 34,000 617,100
Flextronics International 93,000 (a) 813,750
Hewlett-Packard 34,280 558,764
International Business Machines 20,800 1,765,920
Motorola 76,900 608,279
Novellus Systems 17,000 (a) 476,680
Oracle 66,000 (a) 784,080
7,683,541
MATERIALS--7.5%
Alcoa 28,300 648,919
Boise Cascade 38,200 877,454
Dow Chemical 72,750 2,374,560
duPont (EI) deNemours 22,100 939,913
International Paper 42,100 1,505,075
PPG Industries 13,000 630,630
Praxair 13,000 755,040
Weyerhaeuser 17,800 882,702
8,614,293
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--5.3%
AT&T 21,000 358,050
BellSouth 70,800 1,804,692
SBC Communications 94,996 2,219,107
Verizon Communications 46,000 1,719,480
6,101,329
UTILITES--2.4%
Consolidated Edison 21,000 816,270
Exelon 22,100 1,172,184
Progress Energy 18,000 752,040
2,740,494
TOTAL COMMON STOCKS
(cost $107,945,716) 112,299,387
- ------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--1.8% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S TREASURY BILLS:
1.12%, 5/1/2003 150,000 149,996
1.09%, 5/22/2003 1,079,000 1,078,313
1.13%, 6/26/2003 80,000 79,866
1.08%, 7/31/2003 743,000 740,934
TOTAL SHORT-TERM INVESTMENTS
(cost $2,049,143) 2,049,109
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $109,994,859) 99.5% 114,348,496
CASH AND RECEIVABLES (NET) .5% 619,377
NET ASSETS 100.0% 114,967,873
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 109,994,859 114,348,496
Cash 619
Receivable for investment securities sold 675,033
Dividends receivable 149,362
Receivable for shares of Beneficial Interest subscribed 1,555
Prepaid expenses 20,767
115,195,832
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 116,147
Payable for shares of Beneficial Interest redeemed 57,163
Accrued expenses and other liabilities 54,649
227,959
- --------------------------------------------------------------------------------
NET ASSETS ($) 114,967,873
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 121,159,268
Accumulated undistributed investment income--net 389,275
Accumulated net realized gain (loss) on investments (10,934,307)
Accumulated net unrealized appreciation
(depreciation) on investments 4,353,637
- --------------------------------------------------------------------------------
NET ASSETS ($) 114,967,873
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 105,464,140 8,316,187 1,104,400 11,268 71,878
Shares Outstanding 7,071,326 585,484 78,791 773.569 4,925
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 14.91 14.20 14.02 14.57 14.59
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $306 foreign taxes withheld at source) 1,123,273
Interest 23,284
TOTAL INCOME 1,146,557
EXPENSES:
Management fee--Note 3(a) 420,849
Shareholder servicing costs--Note 3(c) 226,014
Distribution fees--Note 3(b) 34,996
Registration fees 25,131
Professional fees 14,977
Trustees' fees and expenses--Note 3(d) 14,337
Prospectus and shareholders' reports 6,696
Custodian fees--Note 3(c) 6,607
Loan commitment fees--Note 2 914
Interest expense--Note 2 37
Miscellaneous 2,073
TOTAL EXPENSES 752,631
INVESTMENT INCOME--NET 393,926
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments:
Long transactions (5,523,050)
Short-sale transactions 38,847
Net realized gain (loss) on financial futures 407,680
NET REALIZED GAIN (LOSS) (5,076,523)
Net unrealized appreciation (depreciation) on investments
[including ($280,082) net unrealized (depreciation) on financial
futures] 7,914,103
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 2,837,580
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,231,506
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2003 Year Ended
(Unaudited) October 31, 2002
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 393,926 869,425
Net realized gain (loss) on investments (5,076,523) (5,554,870)
Net unrealized appreciation
(depreciation) on investments 7,914,103 (9,614,776)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 3,231,506 (14,300,221)
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (860,419) (980,302)
Class B shares -- (1,309)
Class C shares (880) (909)
Class R shares (52) --
Class T shares (61) (119)
Net realized gain on investments:
Class A shares -- (6,080,937)
Class B shares -- (519,444)
Class C shares -- (60,155)
Class R shares -- (324)
Class T shares -- (1,128)
TOTAL DIVIDENDS (861,412) (7,644,627)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 1,759,663 9,740,061
Class B shares 711,297 2,835,292
Class C shares 90,556 814,179
Class R shares 3,465 1,555
Class T shares 48,069 27,230
Six Months Ended
April 30, 2003 Year Ended
(Unaudited) October 31, 2002
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($) (CONTINUED):
Dividends reinvested:
Class A shares 788,483 6,531,192
Class B shares -- 377,170
Class C shares 414 38,619
Class R shares 52 324
Class T shares 61 1,247
Cost of shares redeemed:
Class A shares (6,445,780) (21,868,921)
Class B shares (1,400,357) (3,253,833)
Class C shares (192,587) (700,119)
Class R shares (5) (5)
Class T shares (19,592) (483)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (4,656,261) (5,456,492)
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,286,167) (27,401,340)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 117,254,040 144,655,380
END OF PERIOD 114,967,873 117,254,040
Undistributed investment income--net 389,275 856,761
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
April 30, 2003 Year Ended
(Unaudited) October 31, 2002
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 123,128 560,940
Shares issued for dividends reinvested 53,565 379,072
Shares redeemed (454,084) (1,302,332)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (277,391) (362,320)
- --------------------------------------------------------------------------------
CLASS B(A)
Shares sold 51,823 176,724
Shares issued for dividends reinvested -- 22,900
Shares redeemed (102,056) (208,899)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (50,233) (9,275)
- --------------------------------------------------------------------------------
CLASS C
Shares sold 6,643 50,899
Shares issued for dividends reinvested 30 2,372
Shares redeemed (14,555) (43,212)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (7,882) 10,059
- --------------------------------------------------------------------------------
CLASS R
Shares sold 247 98
Shares issued for dividends reinvested 4 19
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 251 117
- --------------------------------------------------------------------------------
CLASS T
Shares sold 3,323 1,775
Shares issued for dividends reinvested 4 73
Shares redeemed (1,445) (23)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,882 1,825
(A) DURING THE PERIOD ENDED APRIL 30, 2003, 27,031 CLASS B SHARES REPRESENTING
$363,062 WERE AUTOMATICALLY CONVERTED TO 25,755 CLASS A SHARES AND DURING
THE PERIOD ENDED OCTOBER 31, 2002, 42,785 CLASS B SHARES REPRESENTING
$700,082 WERE AUTOMATICALLY CONVERTED TO 40,794 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Six Months Ended
April 30, 2003 Year Ended October 31,
--------------------------------------------------------------------
CLASS A SHARES (Unaudited) 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 14.59 17.22 21.85 22.00 21.07 24.30
Investment Operations:
Investment income--net .06(a) .12(a) .13(a) .10(a) .11(a) .13
Net realized and unrealized
gain (loss) on investments .38 (1.83) (3.08) 1.74 2.50 .23
Total from
Investment Operations .44 (1.71) (2.95) 1.84 2.61 .36
Distributions:
Dividends from investment
income--net (.12) (.13) (.11) (.11) (.11) (.11)
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57) (3.48)
Total Distributions (.12) (.92) (1.68) (1.99) (1.68) (3.59)
Net asset value, end of period 14.91 14.59 17.22 21.85 22.00 21.07
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .63(c) 1.28 1.20 1.20 1.18 1.19
Ratio of net investment income
to average net assets .38(c) .69 .66 .50 .51 .54
Portfolio Turnover Rate 25.72(c) 57.49 91.91 150.24 141.85 159.30
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 105,464 107,217 132,810 164,534 171,526 178,593
(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
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
April 30, 2003 Year Ended October 31,
-----------------------------------------------------------------
CLASS B SHARES (Unaudited) 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 13.84 16.40 20.93 21.21 20.41 23.70
Investment Operations:
Investment (loss)--net (.01)(a) (.02)(a) (.03)(a) (.04)(a) (.05)(a) (.04)
Net realized and unrealized
gain (loss) on investments .37 (1.75) (2.93) 1.64 2.42 .23
Total from
Investment Operations .36 (1.77) (2.96) 1.60 2.37 .19
Distributions:
Dividends from investment
income--net -- (.00)(b) -- -- -- --
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57) (3.48)
Total Distributions -- (.79) (1.57) (1.88) (1.57) (3.48)
Net asset value, end of period 14.20 13.84 16.40 20.93 21.21 20.41
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 2.60(d) (11.48) (15.02) 8.12 12.38 .75
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.06(d) 2.10 2.02 1.99 1.94 1.95
Ratio of net investment (loss)
to average net assets (.04)(d) (.13) (.16) (.23) (.25) (.22)
Portfolio Turnover Rate 25.72(d) 57.49 91.91 150.24 141.85 159.30
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 8,316 8,801 10,575 11,936 26,897 47,512
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
April 30, 2003 Year Ended October 31,
-------------------------------------------------------------------
CLASS C SHARES (Unaudited) 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 13.68 16.22 20.75 21.06 20.28 23.67
Investment Operations:
Investment (loss)--net (.01)(a) (.02)(a) (.04)(a) (.11)(a) (.06)(a) (.05)
Net realized and unrealized
gain (loss) on investments .36 (1.72) (2.89) 1.68 2.41 .20
Total from
Investment Operations .35 (1.74) (2.93) 1.57 2.35 .15
Distributions:
Dividends from investment
income--net (.01) (.01) (.03) -- -- (.06)
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57) (3.48)
Total Distributions (.01) (.80) (1.60) (1.88) (1.57) (3.54)
Net asset value, end of period 14.02 13.68 16.22 20.75 21.06 20.28
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 2.56(c) (11.48) (14.99) 8.02 12.25 .65
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.08(c) 2.11 2.04 2.03 1.96 2.08
Ratio of net investment
(loss) to average net assets (.07)(c) (.15) (.20) (.59) (.29) (.35)
Portfolio Turnover Rate 25.72(c) 57.49 91.91 150.24 141.85 159.30
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 1,104 1,185 1,243 714 712 652
(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
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
April 30, 2003 Year Ended October 31,
--------------------------------------------------------------------------
CLASS R SHARES (Unaudited) 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 14.26 16.78 21.55 21.70 20.87 24.30
Investment Operations:
Investment income (loss)--net .01(a) .07(a) (.05)(a) .05(a) .06(a) .21
Net realized and unrealized
gain (loss) on investments .39 (1.80) (3.01) 1.75 2.47 (.01)
Total from
Investment Operations .40 (1.73) (3.06) 1.80 2.53 .20
Distributions:
Dividends from investment
income--net (.09) -- (.14) (.07) (.13) (.15)
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57) (3.48)
Total Distributions (.09) (.79) (1.71) (1.95) (1.70) (3.63)
Net asset value, end of period 14.57 14.26 16.78 21.55 21.70 20.87
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.81(b) (10.97) (15.15) 8.97 12.99 .77
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .91(b) 1.56 2.13 1.37 1.40 1.00
Ratio of net investment income
(loss) to average net assets .10(b) .41 (.27) .26 .29 .51
Portfolio Turnover Rate 25.72(b) 57.49 91.91 150.24 141.85 159.30
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 11 7 7 6 8 6
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
April 30, 2003 Year Ended October 31,
-----------------------------------------------
CLASS T SHARES (Unaudited) 2002 2001 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.32 17.05 21.77 19.15
Investment Operations:
Investment (loss)--net (.08)(b) (.07)(b) (.02)(b) (.02)(b)
Net realized and unrealized gain
(loss) on investments .37 (1.79) (3.08) 2.64
Total from Investment Operations .29 (1.86) (3.10) 2.62
Distributions:
Dividends from investment income--net (.02) (.08) (.05) --
Dividends from net realized gain
on investments -- (.79) (1.57) --
Total Distributions (.02) (.87) (1.62) --
Net asset value, end of period 14.59 14.32 17.05 21.77
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 2.02(d) (11.69) (15.08) 13.68(d)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.53(d) 2.38 1.92 1.17(d)
Ratio of net investment
(loss) to average net assets (.53)(d) (.41) (.11) (.09)(d)
Portfolio Turnover Rate 25.72(d) 57.49 91.91 150.24
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 72 44 21 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Value Fund (the "fund") is a separate non-diversified series of
Dreyfus Premier Value Equity Funds (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
capital growth. The Dreyfus Corporation (the "Manager") serves as the fund's
investment adviser. The Manager is a wholly-owned subsidiary of Mellon Bank,
N.A. (" Mellon" ), which is a wholly-owned subsidiary of Mellon Finanicial
Corporation.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of
the Manager, is the distributor of the fund's shares. The fund is authorized to
issue an unlimited number of $.001 par value shares of Beneficial Interest in
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.
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 accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market. Effective April 14, 2003, the fund began pricing
securities traded on the NASDAQ stock market using the NASDAQ official closing
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. Securities for which there are no such valuations are valued
at fair value as determined in good faith under the direction of the Board of
Trustees. Investments denominated in foreign currencies are translated to U.S.
dollars at the prevailing rates of exchange. Forward currency exchange contracts
are valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount and premium on investments, is recognized
on the accrual basis. Under the terms of the custody agreement, the fund
received net earnings credits of $60 during the period ended April 30, 2003
based on available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, 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.
(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 $5,489,687 available for
federal income tax purposes to be applied against future net securities profits,
if any, realized subsequent to October 31, 2002. If not applied, the carryover
expires in fiscal 2010.
The tax character of distributions paid to shareholders during the fiscal year
ended October 31, 2002 was as follows: ordinary income $2,299,913 and long-term
capital gain $5,344,714. The tax character of current year distributions will be
determined at the end of the current fiscal year.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund based on prevailing market rates
in effect at the time of borrowings.
The average daily amount of borrowings outstanding under the Facility during the
period ended April 30, 2003 was approximately $4,400, with a related weighted
average annualized interest rate of 1.66%.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly.
During the period ended April 30, 2003, the Distributor retained $9,010 from
commissions earned on sales of fund Class A shares and $9,658 and $36 from
contingent deferred sales charges on redemptions of the fund's Class B and C
shares, respectively.
(B) Under a Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1 under
the Act, Class B, Class C and Class T shares pay the Distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares, and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
April 30, 2003, Class B, Class C and Class T shares were charged $30,672, $4,245
and $79, 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 1% of the value of their
average daily net assets for the provision of certain ser The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
vices. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the fund
and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or 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, 2003,
Class A, Class B, Class C and Class T shares were charged $128,554, $10,224,
$1,415 and $79, respectively, pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2003, the fund was charged $52,218 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended April 30, 2003, the fund was
charged $6,607 pursuant to the custody agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $25,000
and an attendance fee of $4,000 for each in-person meeting and $500 for
telephone meetings. These fees are allocated among the funds in the Fund Group
in proportion to each fund' s relative net assets. The Chairman of the Board
receives an additional 25% of such compensation. Subject to the Company's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
(E) During the period ended April 30, 2003, the fund incurred total brokerage
commissions of $112,678, of which $168 was paid to Harborside Plus Inc., a
wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term securities
and financial futures, during the period ended April 30, 2003:
Purchases ($) Sales ($)
- --------------------------------------------------------------------------------
Long transactions 28,150,464 28,927,010
Short sale transactions 476,449 515,296
TOTAL 28,626,913 29,442,306
The fund is engaged in short-selling which obligates the fund to replace the
security borrowed by purchasing the security at current market value. The fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the fund replaces the borrowed security.
The fund would realize a gain if the price of the security declines between
those dates. Until the fund replaces the borrowed security, the fund will
maintain a segregated account with a broker or custodian, of permissible liquid
assets sufficient to cover its short position. At April 30, 2003, there were no
securities sold short outstanding.
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 the market value of the contract at the
close of each day's trading. Accordingly, variation margin payments are received
or made to reflect The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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, up to
approximately 10% of the contract amount. 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. At April 30, 2003, there was no financial futures
contracts outstanding.
At April 30, 2003, accumulated net unrealized appreciation on investments was
$4,353,637, consisting of $13,597,461 gross unrealized appreciation and
$9,243,824 gross unrealized depreciation.
At April 30, 2003, 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).
PROXY RESULTS (Unaudited)
The fund held a special meeting of shareholders on December 18, 2002. The
proposal considered at the meeting, and the results, are as follows:
Shares
--------------------------------------------
For Against Abstained
-------------------------------------------------------------------------
To approve changes to certain of the
fundamental policies and investment
restrictions to permit investment in
other investment companies 3,489,652 398,803 238,128
The Fund
NOTES
For More Information
Dreyfus Premier
Value Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call your financial representative
or 1-800-554-4611
BY MAIL Write to:
The Dreyfus Premier Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
(c) 2003 Dreyfus Service Corporation 037SA0403
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. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the Disclosure Controls and Procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940, the
"Disclosure Controls") as of a date within 90 days prior to the filing date
(the "Filing Date") of this Form N-CSR (the "Report"), the Disclosure
Controls are effectively designed to ensure that information required to be
disclosed by the Registrant in the Report is recorded, processed, summarized
and reported by the Filing Date, including ensuring that information required
to be disclosed in the Report is accumulated and communicated to the
Registrant's management, including the Registrant's principal executive
officer and principal financial officer, as appropriate to allow timely
decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
or in other factors that could significantly affect these controls subsequent
to the date of their evaluation, and there were no corrective actions with
regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b)(1) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2 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 VALUE EQUITY FUNDS
By: /s/STEPHEN E. CANTER
Stephen E. Canter
Chief Executive Officer
Date: June 26, 2003
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.
By: /S/ STEPHEN E. CANTER
Stephen E. Canter
Chief Executive Officer
Date: June 26, 2003
By: /S/ JAMES WINDELS
James Windels
Chief Financial Officer
Date: June 26, 2003
EXHIBIT INDEX
(b)(1) Certifications of principal executive officer and
principal financial officer as required by Rule 30a-2 under the
Investment Company Act of 1940.
(b)(2) Certification of principal executive officer and
principal financial officer as required by Section 906 of the
Sarbanes-Oxley Act of 2002.