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: 10/31
Date of reporting period: 10/31/03
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus Premier
Value Fund
ANNUAL REPORT October 31, 2003
YOU, YOUR ADVISOR AND
DREYFUS
A MELLON FINANCIAL COMPANY(SM)
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 Fund Performance
8 Statement of Investments
13 Statement of Financial Futures
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
19 Financial Highlights
24 Notes to Financial Statements
31 Report of Independent Auditors
32 Important Tax Information
33 Proxy Results
34 Board Members Information
36 Officers of the Fund
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier
Value Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This annual report for Dreyfus Premier Value Fund covers the 12-month period
from November 1, 2002, through October 31, 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
Recent estimates of greater than expected U.S. Gross Domestic Product annualized
growth during the third quarter of 2003 suggest that the economy has started to
turn the corner. Tax cuts and low mortgage rates have put cash in consumers'
pockets, and corporations have begun to increase spending and investment. As a
result, stocks rallied over the reporting period, posting gains in virtually
every market sector and capitalization range.
We have seen strong quarters before, only to be disappointed when growth proved
unsustainable. Based on recent data, we are cautiously optimistic about the
current economic environment. As always, we urge you to speak regularly with
your financial advisor, who may be in the best position to suggest investments
that are right for your current needs, future 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
November 17, 2003
DISCUSSION OF FUND PERFORMANCE
Douglas D. Ramos, CFA, Portfolio Manager
HOW DID DREYFUS PREMIER VALUE FUND PERFORM RELATIVE TO ITS BENCHMARK?
For the 12-month period ended October 31, 2003, the fund's Class A shares
produced a total return of 17.04%, Class B shares produced a total return of
16.04%, Class C shares produced a total return of 15.95%, Class R shares
produced a total return of 16.64% and Class T shares produced a total return of
15.45% .(1) This compares with the performance of the fund's benchmark, the
Russell 1000 Value Index (the "Index"), which produced a total return of 22.87%
for the same period. (2)
We attribute the fund's performance primarily to a favorable shift in investor
sentiment beginning in mid-March 2003. This shift in investor sentiment that was
prompted by decisive military action in Iraq and improving prospects for
domestic economic growth drove most stock prices sharply higher during the
second half of the reporting period. While the portfolio participated in the
stock market's rise to a significant degree, the market's greatest gains were
concentrated among smaller more volatile stocks with weak underlying
fundamentals. Since our disciplined stock selection approach generally focuses
on larger-cap stocks and avoids such speculative investments, the fund
underperformed the Index.
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.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
In choosing stocks, the fund employs a "bottom-up" approach, primarily focusing
on large companies with strong positions in their industries and a catalyst that
can trigger a price increase (such as corporate restructuring or change in
management). The portfolio manager uses fundamental analysis to create a broadly
diversified portfolio, normally with a weighted average p/e ratio less than or
equal to that of the S&P 500 Index and a long-term projected earnings growth
rate greater than or equal to that of the S&P 500 Index. The manager selects
stocks based on:
* VALUE, or how a stock is priced relative to its perceived 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.
The fund typically sells a security when the portfolio manager believes that
there has been a negative change in the fundamental factors surrounding the
company, the company has been fully valued, the company has lost favor in the
current market or economic environment, or a more attractive opportunity has
been identified.
What other factors influenced the fund's performance?
The market's bias in favor of smaller, lower-quality stocks during the reporting
period was most evident in the financial services group. Although investments in
large-cap financial stocks provided many of the fund's greatest overall gains,
stocks of smaller regional banks propelled the benchmark's return even higher.
Nevertheless, the fund achieved strongly positive performance from investments
in money center banks such as Citigroup, consumer finance companies such as
American Express and mortgage lenders such as Countrywide Financial.
The fund outperformed the Index in other areas. In the consumer discretionary
group, returns benefited from the fund' s overweighted position and strong
individual stock selections among retailers such as Best Buy and Target; media
and entertainment companies such as Disney and Comcast; leisure and travel firms
such as Carnival and Mandalay Resort Group; and food service providers such as
McDonald's. Such holdings more than compensated for disappointments such as
Office
Depot and Jones Apparel Group. A slightly overweighted position and relatively
good stock selection also enhanced the fund's performance among materials and
processing stocks. Top performers included chemical producers Dow Chemical and
Praxair, as well as aluminum and paper products companies such as Alcoa and
Weyerhaeuser.
On the other hand, a small number of stocks undermined the fund's performance in
health care. Company-specific problems hurt several holdings, such as Biovail,
King Pharmaceuticals, Merck & Co. and HCA. Strong performance from other health
care holdings, such as Omnicare, C. R. Bard and Wyeth, failed to compensate
fully for these disappointments.
WHAT IS THE FUND'S CURRENT STRATEGY?
Historically, smaller, more speculative stocks have tended to lead in the early
stages of economic recoveries, while higher-quality stocks have tended to
perform better later in the cycle. Accordingly, we believe the fund's holdings
of fundamentally sound companies position it well for today's market
environment.
As of October 31, 2003, we have continued to emphasize stocks that we believe
are well-positioned to benefit from continuing, gradual improvement in the U.S.
economy. We have found a relatively large number of such opportunities in the
consumer discretionary, technology and industrial areas. Conversely, we have
found relatively few attractive investments in the areas of consumer staples,
interest-sensitive financials and energy, which we believe are less well-suited
to prosper in a moderately expanding economy.
November 17, 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.
(2) SOURCE: LIPPER INC. -- REFLECTS THE REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL 1000 VALUE INDEX IS AN
UNMANAGED INDEX WHICH MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000
COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH
VALUES.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Value
Fund Class A shares and Class B shares and the Russell 1000 Value Index
EXHIBIT A:
Dreyfus Dreyfus
Premier Premier
Value Value Russell
Fund Fund 1000
PERIOD (Class A (Class B Value
shares) shares) Index *
10/31/93 9,425 10,000 10,000
10/31/94 8,773 9,242 10,076
10/31/95 9,863 10,305 12,566
10/31/96 11,436 11,856 15,549
10/31/97 14,574 15,003 20,710
10/31/98 14,797 15,116 23,781
10/31/99 16,756 16,988 27,712
10/31/00 18,263 18,516 29,241
10/31/01 15,648 15,865 25,773
10/31/02 13,968 14,161 23,191
10/31/03 16,348 16,574 28,491
* Source: Lipper Inc.
((+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES AND CLASS B
SHARES OF DREYFUS PREMIER VALUE FUND ON 10/31/93 TO A $10,000 INVESTMENT MADE IN
THE RUSSELL 1000 VALUE INDEX (THE "INDEX") ON THAT DATE. ALL DIVIDENDS AND
CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS C, CLASS R AND
CLASS T SHARES WILL VARY FROM THE PERFORMANCE OF CLASS A AND CLASS B SHARES
SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND
EXPENSES. THE 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 INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND
OTHER EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING
EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS
SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 10/31/03
Inception From
Date 1 Year 5 Years 10 Years Inception
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CLASS A SHARES
WITH MAXIMUM SALES CHARGE (5.75%) 10.31% 0.81% 5.04%
WITHOUT SALES CHARGE 17.04% 2.01% 5.66%
CLASS B SHARES
WITH APPLICABLE REDEMPTION CHARGE ((+)) 12.04% 0.88% 5.18%
WITHOUT REDEMPTION 16.04% 1.19% 5.18%
CLASS C SHARES
WITH APPLICABLE REDEMPTION CHARGE ((+)(+)) 9/1/95 14.95% 1.13% -- 5.54%
WITHOUT REDEMPTION 9/1/95 15.95% 1.13% -- 5.54%
CLASS R SHARES 9/1/95 16.64% 1.64% -- 6.10%
CLASS T SHARES
WITH APPLICABLE SALES CHARGE (4.5%) 3/1/00 10.29% -- -- (1.67)%
WITHOUT SALES CHARGE 3/1/00 15.45% -- -- (0.43)%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE FUND'S PERFORMANCE
SHOWN IN THE GRAPH AND TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
PERFORMANCE FOR CLASS B SHARES ASSUMES THE CONVERSION OF CLASS B SHARES TO CLASS
A SHARES AT THE END OF THE SIXTH YEAR FOLLOWING THE DATE OF PURCHASE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%.
AFTER SIX YEARS CLASS B SHARES CONVERT TO CLASS A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
October 31, 2003
STATEMENT OF INVESTMENTS
COMMON STOCKS--97.5% Shares Value ($)
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BANKING--10.2%
Bank of America 40,300 3,051,919
Bank of New York 29,600 923,224
FleetBoston Financial 24,500 989,555
J.P Morgan Chase & Co. 38,900 1,396,510
US Bancorp 63,000 1,714,860
Wachovia 16,000 733,920
Washington Mutual 32,000 1,400,000
Wells Fargo 46,800 2,635,776
12,845,764
CONSUMER DISCRETIONARY--15.0%
Abercrombie & Fitch 22,000 (a) 627,000
Best Buy 7,000 408,170
Blockbuster, Cl. A 17,000 327,590
Carnival 18,000 628,380
Clear Channel Communications 22,300 910,286
Comcast, Cl. A 19,691 (a) 667,919
Darden Restaurants 37,000 775,150
Disney (Walt) 56,100 1,270,104
General Motors 13,000 (b) 554,710
Hilton Hotels 27,000 427,680
Home Depot 29,000 1,075,030
Johnson Controls 6,000 645,180
Lamar Advertising 17,000 (a) 515,100
Liberty Media, Cl. A 116,400 (a) 1,174,476
Magna International, Cl. A 6,000 481,380
Mandalay Resort Group 24,000 942,000
McDonald's 61,500 1,538,115
PetsMart 23,000 589,030
Royal Caribbean Cruises 21,000 623,910
Target 24,300 965,682
Time Warner 58,000 (a) 886,820
TJX Cos. 47,000 986,530
Toyota Motor, ADR 10,000 580,200
Viacom, Cl. B 31,800 1,267,866
18,868,308
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--2.9%
Altria Group 55,800 2,594,700
Dial 11,000 264,000
PepsiCo 17,700 846,414
3,705,114
ENERGY--8.1%
BJ Services 18,000 (a) 590,580
Devon Energy 48,555 2,354,918
Exxon Mobil 159,260 5,825,731
Schlumberger 25,000 1,174,250
XTO Energy 11,400 269,838
10,215,317
FINANCIALS--24.4%
ACE 18,000 648,000
American Express 54,500 2,557,685
American International Group 47,927 2,915,399
Axis Capital Holdings 25,400 636,270
Bank One 30,600 1,298,970
Capital One Financial 8,000 486,400
CIT Group 19,000 638,780
Citigroup 128,301 6,081,467
Countrywide Financial 13,200 1,387,584
E*TRADE Group 91,000 (a) 937,300
Fannie Mae 21,300 1,526,997
Freddie Mac 12,100 679,173
Goldman Sachs Group 5,000 469,500
GreenPoint Financial 20,000 623,000
Marsh & McLennan Cos. 19,000 812,250
MBNA 47,500 1,175,625
Merrill Lynch 16,000 947,200
Morgan Stanley 31,600 1,733,892
National City 12,000 391,920
New York Community Bancorp 23,000 832,600
RenaissanceRe Holdings 33,000 1,484,340
St. Paul Cos. 16,500 629,145
Travelers Property Casualty, Cl. A 39,197 638,911
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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FINANCIALS (CONTINUED)
Willis Group Holdings 32,400 1,078,920
30,611,328
HEALTH CARE--3.7%
Becton, Dickinson & Co. 13,000 475,280
Bristol-Myers Squibb 22,000 558,140
Fisher Scientific International 15,000 (a) 603,750
Merck & Co. 19,200 849,600
Novartis, ADR 16,000 613,920
Omnicare 23,000 881,820
Wyeth 15,000 662,100
4,644,610
INDUSTRIALS--9.0%
Caterpillar 17,000 1,245,760
Cooper Industries, Cl. A 12,000 634,800
Cummins 8,000 379,200
CSX 20,000 636,400
Deere & Co. 13,000 788,060
Emerson Electric 18,100 1,027,175
Honeywell International 12,000 367,320
Illinois Tool Works 9,000 661,950
Ingersoll-Rand, Cl. A 22,000 1,328,800
Manpower 11,000 510,400
Navistar International 15,000 (a) 606,450
Republic Services 27,000 627,750
Rockwell Collins 14,000 384,300
Tyco International 34,000 709,920
United Technologies 9,000 762,210
Waste Management 25,000 648,000
11,318,495
INFORMATION TECHNOLOGY--8.4%
Accenture 33,400 (a) 781,560
Agere Systems, Cl. A 179,000 (a) 622,920
Computer Sciences 20,000 (a) 792,400
EMC 72,000 (a) 996,480
Flextronics International 56,000 (a) 784,000
Hewlett-Packard 62,280 1,389,467
International Business Machines 20,800 1,861,184
COMMON STOCKS (CONTINUED) Shares Value ($)
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INFORMATION TECHNOLOGY (CONTINUED)
Micron Technology 47,000 (a) 673,980
Motorola 50,900 688,677
Oracle 64,000 (a) 765,440
PeopleSoft 30,000 (a) 622,800
Teradyne 25,300 (a) 576,334
10,555,242
MATERIALS--5.7%
Air Products & Chemicals 9,000 408,690
Alcoa 27,300 861,861
Dow Chemical 17,750 668,998
duPont (EI) deNemours 22,100 892,840
International Paper 41,100 1,617,285
PPG Industries 13,000 749,450
Praxair 13,000 904,540
Weyerhaeuser 17,800 1,072,094
7,175,758
TELECOMMUNICATION SERVICES--4.7%
AT&T 17,000 316,030
BellSouth 68,800 1,810,128
SBC Communications 65,996 1,582,584
Telefonos de Mexico, ADR 20,000 643,000
Verizon Communications 45,000 1,512,000
5,863,742
UTILITES--5.4%
Consolidated Edison 21,000 849,870
Exelon 22,100 1,402,245
FPL Group 10,000 637,400
NiSource 30,000 621,300
PG&E 29,000 (a) 709,050
Progress Energy 18,000 775,800
Southern 22,000 655,600
TXU 16,000 365,120
Wisconsin Energy 22,000 720,500
6,736,885
TOTAL COMMON STOCKS
(cost $103,731,202) 122,540,563
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--2.7% Amount ($) Value ($)
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U.S TREASURY BILLS:
..84%, 11/6/2003 1,385,000 1,384,889
..86%, 11/13/2003 712,000 711,822
..89%, 11/20/2003 1,232,000 (c) 1,231,470
..92%, 11/28/2003 100,000 99,935
TOTAL SHORT-TERM INVESTMENTS
(cost $3,427,986) 3,428,116
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INVESTMENT OF CASH COLLATERAL
FOR SECURITIES LOANED--.5% Shares Value ($)
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REGISTERED INVESTMENT COMPANY;
Dreyfus Institutional Preferred Money Market Fund
(cost $572,000) 572,000 572,000
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TOTAL INVESTMENTS (cost $107,731,188) 100.7% 126,540,679
LIABILITIES, LESS CASH AND RECEIVABLES (.7%) (881,463)
NET ASSSETS 100.0% 125,659,216
(A) NON-INCOME PRODUCING.
(B) ALL OF THIS SECURITY IS ON LOAN. AT OCTOBER 31, 2003, THE TOTAL MARKET
VALUE OF THE FUND'S SECURITY ON LOAN IS $554,710 AND THE TOTAL MARKET VALUE
OF THE COLLATERAL HELD BY THE PORTFOLIO IS $572,000.
(C) PARTIALLY HELD BY THE BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN
FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF FINANCIAL FUTURES
October 31, 2003
Market Value Unrealized
Covered by Appreciation
Contracts Contracts ($) Expiration at 10/31/2003 ($)
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FINANCIAL FUTURE LONG
Standard & Poor's 500 4 1,049,500 December 2003 5,898
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2003
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments
(including securities loaned
valued at $554,710)--Note 1(c) 107,731,188 126,540,679
Cash 186,392
Receivable for investment securities sold 1,842,105
Dividends receivable 211,405
Receivable for futures variation margin--Note 4 1,000
Receivable for shares of Beneficial Interest subscribed 859
Prepaid expenses 27,867
128,810,307
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 122,161
Payable for investment securities purchased 2,223,633
Liability for securities loaned--Note 1(c) 572,000
Payable for shares of Beneficial Interest redeemed 159,821
Accrued expenses 73,476
3,151,091
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NET ASSETS ($) 125,659,216
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 116,503,464
Accumulated undistributed investment income--net 805,396
Accumulated net realized gain (loss) on investments (10,465,033)
Accumulated net unrealized appreciation (depreciation)
on investments (including $5,898 net unrealized
appreciation on financial futures) 18,815,389
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NET ASSETS ($) 125,659,216
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
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Net Assets ($) 115,872,457 8,590,544 1,095,705 15,386 85,124
Shares Outstanding 6,840,072 534,771 69,126 931 5,156
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NET ASSET VALUE
PER SHARE ($) 16.94 16.06 15.85 16.53 16.51
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended October 31, 2003
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $918 foreign taxes withheld at source) 2,340,700
Interest 33,973
Income on securities lending 666
TOTAL INCOME 2,375,339
EXPENSES:
Management fee--Note 3(a) 882,350
Shareholder servicing costs--Note 3(c) 453,357
Distribution fees--Note 3(b) 71,342
Professional fees 50,664
Registration fees 49,730
Trustees' fees and expenses--Note 3(d) 17,957
Prospectus and shareholders' reports 16,686
Custodian fees--Note 3(c) 14,014
Loan commitment fees--Note 2 1,412
Interest expense--Note 2 37
Miscellaneous 7,743
TOTAL EXPENSES 1,565,292
INVESTMENT INCOME--NET 810,047
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments:
Long transactions (5,089,945)
Short sale transactions 35,162
Net realized gain (loss) on financial futures 447,534
NET REALIZED GAIN (LOSS) (4,607,249)
Net unrealized appreciation (depreciation) on investments
[including ($274,184) net unrealized depreciation on financial
futures] 22,375,855
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 17,768,606
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 18,578,653
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
----------------------------------
2003 2002
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 810,047 869,425
Net realized gain (loss) on investments (4,607,249) (5,554,870)
Net unrealized appreciation (depreciation)
on investments 22,375,855 (9,614,776)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 18,578,653 (14,300,221)
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (860,419) (980,302)
Class B shares -- (1,309)
Class C shares (880) (909)
Class R shares (52) --
Class T shares (61) (119)
Net realized gain on investments:
Class A shares -- (6,080,937)
Class B shares -- (519,444)
Class C shares -- (60,155)
Class R shares -- (324)
Class T shares -- (1,128)
TOTAL DIVIDENDS (861,412) (7,644,627)
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 4,322,990 9,740,061
Class B shares 1,397,706 2,835,292
Class C shares 169,865 814,179
Class R shares 5,952 1,555
Class T shares 96,501 27,230
Year Ended October 31,
-----------------------------------
2003 2002
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($) (CONTINUED):
Dividends reinvested:
Class A shares 788,483 6,531,192
Class B shares -- 377,170
Class C shares 414 38,619
Class R shares 52 324
Class T shares 61 1,247
Cost of shares redeemed:
Class A shares (12,753,414) (21,868,921)
Class B shares (2,858,681) (3,253,833)
Class C shares (417,423) (700,119)
Class R shares (5) (5)
Class T shares (64,566) (483)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (9,312,065) (5,456,492)
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,405,176 (27,401,340)
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NET ASSETS ($):
Beginning of Period 117,254,040 144,655,380
END OF PERIOD 125,659,216 117,254,040
Undistributed investment income--net 805,396 856,761
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
--------------------------------
2003 2002
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 282,949 560,940
Shares issued for dividends reinvested 53,566 379,072
Shares redeemed (845,160) (1,302,332)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (508,645) (362,320)
- --------------------------------------------------------------------------------
CLASS B(A)
Shares sold 96,625 176,724
Shares issued for dividends reinvested -- 22,900
Shares redeemed (197,571) (208,899)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (100,946) (9,275)
- --------------------------------------------------------------------------------
CLASS C
Shares sold 11,839 50,899
Shares issued for dividends reinvested 30 2,372
Shares redeemed (29,416) (43,212)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (17,547) 10,059
- --------------------------------------------------------------------------------
CLASS R
Shares sold 405 98
Shares issued for dividends reinvested 3 19
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 408 117
- --------------------------------------------------------------------------------
CLASS T
Shares sold 6,406 1,775
Shares issued for dividends reinvested 4 73
Shares redeemed (4,297) (23)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,113 1,825
(A) DURING THE PERIOD ENDED OCTOBER 31, 2003, 54,027 CLASS B SHARES
REPRESENTING $775,619 WERE AUTOMATICALLY CONVERTED TO 51,421 CLASS A SHARES
AND DURING THE PERIOD ENDED OCTOBER 31, 2002, 42,785 CLASS B SHARES
REPRESENTING $700,082 WERE AUTOMATICALLY CONVERTED TO 40,794 CLASS A
SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended October 31,
-------------------------------------------------------------------
CLASS A SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.59 17.22 21.85 22.00 21.07
Investment Operations:
Investment income--net(a) .12 .12 .13 .10 .11
Net realized and unrealized
gain (loss) on investments 2.35 (1.83) (3.08) 1.74 2.50
Total from Investment Operations 2.47 (1.71) (2.95) 1.84 2.61
Distributions:
Dividends from investment income--net (.12) (.13) (.11) (.11) (.11)
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57)
Total Distributions (.12) (.92) (1.68) (1.99) (1.68)
Net asset value, end of period 16.94 14.59 17.22 21.85 22.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 17.04 (10.74) (14.32) 9.00 13.24
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.26 1.28 1.20 1.20 1.18
Ratio of net investment income
to average net assets .76 .69 .66 .50 .51
Portfolio Turnover Rate 59.66 57.49 91.91 150.24 141.85
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 115,872 107,217 132,810 164,534 171,526
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
-------------------------------------------------------------------
CLASS B SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.84 16.40 20.93 21.21 20.41
Investment Operations:
Investment (loss)--net(a) (.01) (.02) (.03) (.04) (.05)
Net realized and unrealized
gain (loss) on investments 2.23 (1.75) (2.93) 1.64 2.42
Total from Investment Operations 2.22 (1.77) (2.96) 1.60 2.37
Distributions:
Dividends from investment income--net -- (.00)(b) -- -- --
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57)
Total Distributions -- (.79) (1.57) (1.88) (1.57)
Net asset value, end of period 16.06 13.84 16.40 20.93 21.21
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 16.04 (11.48) (15.02) 8.12 12.38
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.12 2.10 2.02 1.99 1.94
Ratio of net investment (loss)
to average net assets (.10) (.13) (.16) (.23) (.25)
Portfolio Turnover Rate 59.66 57.49 91.91 150.24 141.85
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 8,591 8,801 10,575 11,936 26,897
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-------------------------------------------------------------------
CLASS C SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.68 16.22 20.75 21.06 20.28
Investment Operations:
Investment (loss)--net(a) (.02) (.02) (.04) (.11) (.06)
Net realized and unrealized
gain (loss) on investments 2.20 (1.72) (2.89) 1.68 2.41
Total from Investment Operations 2.18 (1.74) (2.93) 1.57 2.35
Distributions:
Dividends from investment income--net (.01) (.01) (.03) -- --
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57)
Total Distributions (.01) (.80) (1.60) (1.88) (1.57)
Net asset value, end of period 15.85 13.68 16.22 20.75 21.06
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 15.95 (11.48) (14.99) 8.02 12.25
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.16 2.11 2.04 2.03 1.96
Ratio of net investment (loss)
to average net assets (.13) (.15) (.20) (.59) (.29)
Portfolio Turnover Rate 59.66 57.49 91.91 150.24 141.85
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,096 1,185 1,243 714 712
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
-------------------------------------------------------------------
CLASS R SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.26 16.78 21.55 21.70 20.87
Investment Operations:
Investment income (loss)--net(a) .06 .07 (.05) .05 .06
Net realized and unrealized
gain (loss) on investments 2.30 (1.80) (3.01) 1.75 2.47
Total from Investment Operations 2.36 (1.73) (3.06) 1.80 2.53
Distributions:
Dividends from investment income--net (.09) -- (.14) (.07) (.13)
Dividends from net realized
gain on investments -- (.79) (1.57) (1.88) (1.57)
Total Distributions (.09) (.79) (1.71) (1.95) (1.70)
Net asset value, end of period 16.53 14.26 16.78 21.55 21.70
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 16.64 (10.97) (15.15) 8.97 12.99
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.59 1.56 2.13 1.37 1.40
Ratio of net investment income (loss)
to average net assets .42 .41 (.27) .26 .29
Portfolio Turnover Rate 59.66 57.49 91.91 150.24 141.85
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 15 7 7 6 8
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
--------------------------------------------------------------
CLASS T SHARES 2003 2002 2001 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.32 17.05 21.77 19.15
Investment Operations:
Investment (loss)--net(b) (.07) (.07) (.02) (.02)
Net realized and unrealized
gain (loss) on investments 2.28 (1.79) (3.08) 2.64
Total from Investment Operations 2.21 (1.86) (3.10) 2.62
Distributions:
Dividends from investment income--net (.02) (.08) (.05) --
Dividends from net realized
gain on investments -- (.79) (1.57) --
Total Distributions (.02) (.87) (1.62) --
Net asset value, end of period 16.51 14.32 17.05 21.77
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 15.45 (11.69) (15.08) 13.68(d)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.48 2.38 1.92 1.17(d)
Ratio of net investment (loss)
to average net assets (.48) (.41) (.11) (.09)(d)
Portfolio Turnover Rate 59.66 57.49 91.91 150.24
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 85 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
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 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
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.
(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.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 based on available cash
balances left on deposit.
The fund may lend securities to qualified institutions. At origination, all
loans are secured by cash collateral of at least 102% of the value of U.S.
securities loaned and 105% of the value of foreign securities loaned. Collateral
equivalent to at least 100% of the market value of securities on loan will be
maintained at all times. Cash collateral is invested in certain money market
mutual funds managed by the Manager as shown in the fund's statement of
investments. The fund will be entitled to receive all income on securities
loaned, in addition to income earned as a result of the leading transaction.
Although each security loaned is fully collateralized, the fund would bear the
risk of delay in recovery of, or loss of rights in, the securities loaned should
a borrower fail to return the securities in a timely manner.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, if any, are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the fund not to distribute such gain. Income and
capital gain distributions are determined in accordance with incomes tax
regulations, which may differ from accounting principles generally accepted in
the United States.
(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 suffi
cient to relieve it from substantially all federal income and excise taxes.
At October 31, 2003, the components of accumulated earnings on a tax basis were
as follows: undistributed ordinary income $805,396, accumulated capital losses
$10,232,229 and unrealized appreciation $18,588,482.
The accumulated capital loss carryover is available to be applied against future
net securities profits, if any, realized subsequent to October 31, 2003. If not
applied, $5,489,687 of the carryover expires in fiscal 2010 and $4,742,542
expires in fiscal 2011.
The tax character of distributions paid to shareholders during the fiscal
periods ended October 31, 2003 and October 31, 2002, were as follows: ordinary
income $861,412 and $2,299,913 and long-term capital gains $0 and $5,344,714,
respectively.
NOTE 2--BANK LINE OF CREDIT:
The fund participates with other Dreyfus-managed funds in a $350 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 October 31, 2003 was approximately $2,200, with a related weighted
average annualized interest rate of 1.69%.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During the period ended October 31, 2003, the Distributor retained $24,770 and
$1 from commissions earned on sales of fund's Class A shares and T shares,
respectively, and $18,044 and $53 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
October 31, 2003, Class B, Class C and Class T shares were charged $62,658,
$8,486 and $198, 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 October 31, 2003, Class A, Class B, Class C and
Class T shares were charged $270,175, $20,886, $2,829 and $198, 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 October 31, 2003, the fund was charged $101,534 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 October 31, 2003, the fund was
charged $14,014 pursuant to the custody agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex. Annual retainer fees and attendance fees are allocated to each
fund based on net assets.
(E) During the period ended October 31, 2003, the fund incurred total brokerage
commissions of $265,518, of which $258 was paid to Harborside Plus Inc., a
wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--SECURITIES TRANSACTIONS:
The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term securities
and financial futures, during the period ended October 31, 2003:
Purchases ($) Sales ($)
- --------------------------------------------------------------------------------
Long transactions 68,286,764 73,654,801
Short sale transactions 581,541 616,703
TOTAL 68,868,305 74,271,504
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 October 31, 2003, there were
no securities sold short outstanding.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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. Contracts open at October 31, 2003, are set
forth in the Statement of Financial Futures.
At October 31, 2003, the cost of investments for federal income tax purposes was
$107,958,095; accordingly, accumulated net unrealized appreciation on
investments was $18,582,525, consisting of $22,526,140 gross unrealized
appreciation and $3,943,615 gross unrealized depreciation.
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees Dreyfus Premier Value Fund
We have audited the accompanying statement of assets and liabilities, including
the statements of investments and financial futures, of Dreyfus Premier Value
Fund (one of the funds comprising Dreyfus Premier Value Equity Funds) as of
October 31, 2003, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of October
31, 2003 and confirmation of securities not held by the custodian by
correspondence with others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Value Fund, at October 31, 2003, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the indicated
periods, in conformity with accounting principles generally accepted in the
United States.
/S/ERNST & YOUNG LLP
New York, New York
December 11, 2003
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund hereby designates 100% of the
ordinary dividends paid during the fiscal year ended October 31, 2003 as
qualifying for the corporate dividends received deduction. Shareholders will
receive notification in January 2004 of the percentage applicable to the
preparation of their 2003 income tax returns.
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
BOARD MEMBERS INFORMATION (Unaudited)
JOSEPH S. DIMARTINO (60)
CHAIRMAN OF THE BOARD (1995)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* The Muscular Dystrophy Association, Director
* Levcor International, Inc., an apparel fabric processor, Director
* Century Business Services, Inc., a provider of outsourcing functions for small
and medium size companies, Director
* The Newark Group, a provider of a national market of paper recovery
facilities, paperboard mills and paperboard converting plants, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 191
--------------
DAVID W. BURKE (67)
BOARD MEMBER (1994)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* John F. Kennedy Library Foundation, Director
* U.S.S. Constitution Museum, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 87
--------------
DIANE DUNST (64)
BOARD MEMBER (1990)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President, Huntting House Antiques
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 13
--------------
ROSALIND GERSTEN JACOBS (78)
BOARD MEMBER (1994)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Merchandise and marketing consultant
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 37
--------------
JAY I. MELTZER (75)
BOARD MEMBER (1991)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Physician, Internist and Specialist in Clinical Hypertension
* Clinical Professor of Medicine at Columbia University & College of Physicians
and Surgeons
* Adjunct Clinical Professor of Medicine at Cornell Medical College
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 13
DANIEL ROSE (74)
BOARD MEMBER (1992)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Chairman and Chief Executive Officer of Rose Associates, Inc., a New York
based real estate development and management firm
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Baltic-American Enterprise Fund, Vice Chairman
* Harlem Educational Activities Fund, Inc., Chairman
* Housing Committee of the Real Estate Board of New York, Inc., Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 24
--------------
WARREN B. RUDMAN (73)
BOARD MEMBER (1993)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Of Counsel to (from January 1993 to December 31, 2002, Partner in) the law
firm Paul, Weiss, Rifkind, Wharton & Garrison LLP
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Collins & Aikman Corporation, Director
* Allied Waste Corporation, Director
* Chubb Corporation, Director
* Raytheon Company, Director
* Boston Scientific, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 21
--------------
SANDER VANOCUR (75)
BOARD MEMBER (1992)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President of Old Owl Communications
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 24
--------------
ONCE ELECTED ALL BOARD MEMBERS SERVE FOR AN INDEFINITE TERM. ADDITIONAL
INFORMATION ABOUT THE BOARD MEMBERS, INCLUDING THEIR ADDRESS IS AVAILABLE IN THE
FUND'S STATEMENT OF ADDITIONAL INFORMATION WHICH CAN BE OBTAINED FROM DREYFUS
FREE OF CHARGE BY CALLING THIS TOLL FREE NUMBER: 1-800-554-4611.
The Fund
OFFICERS OF THE FUND (Unaudited)
STEPHEN E. CANTER, PRESIDENT SINCE MARCH 2000.
Chairman of the Board, Chief Executive Officer and Chief Operating Officer
of the Manager, and an officer of 95 investment companies (comprised of 189
portfolios) managed by the Manager. Mr. Canter also is a Board member and, where
applicable, an Executive Committee Member of the other investment management
subsidiaries of Mellon Financial Corporation, each of which is an affiliate of
the Manager. He is 58 years old and has been an employee of the Manager since
May 1995.
STEPHEN R. BYERS, EXECUTIVE VICE PRESIDENT SINCE NOVEMBER 2002.
Chief Investment Officer, Vice Chairman and a Director of the Manager, and
an officer of 95 investment companies (comprised of 189 portfolios) managed by
the Manager. Mr. Byers also is an officer, director or an Executive Committee
Member of certain other investment management subsidiaries of Mellon Financial
Corporation, each of which is an affiliate of the Manager. He is 50 years old
and has been an employee of the Manager since January 2000. Prior to joining the
Manager, he served as an Executive Vice President-Capital Markets, Chief
Financial Officer and Treasurer at Gruntal & Co., L.L.C.
MARK N. JACOBS, VICE PRESIDENT SINCE MARCH 2000.
Executive Vice President, Secretary and General Counsel of the Manager, and
an officer of 96 investment companies (comprised of 205 portfolios) managed by
the Manager. He is 57 years old and has been an employee of the Manager since
June 1977.
JOHN B. HAMMALIAN, SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 37 investment
companies (comprised of 46 portfolios) managed by the Manager. He is 40 years
old and has been an employee of the Manager since February 1991.
STEVEN F. NEWMAN, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel and Assistant Secretary of the Manager, and an
officer of 96 investment companies (comprised of 205 portfolios) managed by the
Manager. He is 54 years old and has been an employee of the Manager since July
1980.
MICHAEL A. ROSENBERG, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 93 investment
companies (comprised of 198 portfolios) managed by the Manager. He is 43 years
old and has been an employee of the Manager since October 1991.
JAMES WINDELS, TREASURER SINCE NOVEMBER 2001.
Director - Mutual Fund Accounting of the Manager, and an officer of 96
investment companies (comprised of 205 portfolios) managed by the Manager. He is
45 years old and has been an employee of the Manager since April 1985.
RICHARD CASSARO, ASSISTANT TREASURER SINCE AUGUST 2003.
Senior Accounting Manager - Equity Funds of the Manager, and an officer of
25 investment companies (comprised of 105 portfolios) managed by the Manager. He
is 44 years old and has been an employee of the Manager since September 1982.
ROBERT SVAGNA, ASSISTANT TREASURER SINCE DECEMBER 2002.
Senior Accounting Manager - Equity Funds of the Manager, and an officer of
25 investment companies (comprised of 105 portfolios) managed by the Manager. He
is 36 years old and has been an employee of the Manager since November 1990.
KENNETH J. SANDGREN, ASSISTANT TREASURER SINCE NOVEMBER 2001.
Mutual Funds Tax Director of the Manager, and an officer of 96 investment
companies (comprised of 205 portfolios) managed by the Manager. He is 49 years
old and has been an employee of the Manager since June 1993.
WILLIAM GERMENIS, ANTI-MONEY LAUNDERING COMPLIANCE OFFICER SINCE AUGUST 2002.
Vice President and Anti-Money Laundering Compliance Officer of the
Distributor, and the Anti-Money Laundering Compliance Officer of 91 investment
companies (comprised of 200 portfolios) managed by the Manager. He is 33 years
old and has been an employee of the Distributor since October 1998. Prior to
joining the Distributor, he was a Vice President of Compliance Data Center, Inc.
The Fund
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
A description of the policies
and procedures that the fund
uses to determine how to
vote proxies relating to
portfolio securities is
available, without charge,
by calling the telephone
number listed above, or by
visiting the SEC's website at
http://www.sec.gov
(c) 2003 Dreyfus Service Corporation 037AR1003
Dreyfus Premier
International
Opportunities Fund
ANNUAL REPORT October 31, 2003
YOU, YOUR ADVISOR AND
DREYFUS
A MELLON FINANCIAL COMPANY(SM)
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 Fund Performance
8 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
18 Financial Highlights
23 Notes to Financial Statements
30 Report of Independent Auditors
31 Important Tax Information
32 Board Members Information
34 Officers of the Fund
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
International Opportunities Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This annual report for Dreyfus Premier International Opportunities Fund covers
the 12-month period from November 1, 2002, through October 31, 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.
Recent estimates of greater than expected U.S. Gross Domestic Product annualized
growth during the third quarter of 2003 suggest that the economy has started to
turn the corner. Tax cuts and low mortgage rates have put cash in consumers'
pockets, and corporations have begun to increase spending and investment. As
U.S. growth has strengthened, so have the prospects for many international
economies. As a result, stock markets throughout the world rallied over the
reporting period, posting gains in virtually every geographical region and
capitalization range.
We have seen strong quarters before, only to be disappointed when growth proved
unsustainable. Based on recent data, we are cautiously optimistic about the
current economic environment. As always, we urge you to speak regularly with
your financial advisor, who may be in the best position to suggest investments
that are right for your current needs, future 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
November 17, 2003
DISCUSSION OF FUND PERFORMANCE
D. Kirk Henry, Portfolio Manager
HOW DID DREYFUS PREMIER INTERNATIONAL OPPORTUNITIES FUND
PERFORM RELATIVE TO ITS BENCHMARK?
For the 12-month period ended October 31, 2003, the fund produced total returns
of 25.23% for Class A shares, 23.99% for Class B shares, 23.92% for Class C
shares, 25.72% for Class R shares and 27.18% for Class T shares.(1) This
compares with a 30.40% 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, produced a 27.03% 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 and market's overall performance to improving investor
sentiment and higher stock prices during the second half of the reporting
period. The fund's returns modestly trailed its benchmark and were approximately
on the same level as its previous benchmark, primarily because the market's
greatest returns were concentrated among lower-quality and severely depressed
stocks and technology stocks, many of which did not meet our valuation criteria.
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. Since 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
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
industry trends, the fund focuses on three key factors: value; business health;
and business momentum.
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% above the
weighting of that sector in the benchmark, nor will any sector represent
more than 25% of the portfolio.
WHAT OTHER FACTORS INFLUENCED THE FUND'S PERFORMANCE?
During the first half of the reporting period, international stock markets
remained volatile amid growing geopolitical tensions and an unsettled global
economy. However, most markets staged a strong rally during the second half of
the reporting period, especially after major combat ended in Iraq and the U.S.
economy began to show signs of sustainable improvement.
The fund' s emerging-markets stocks generated the reporting period's strongest
returns, as rising industrial production drove demand for raw materials produced
by the world' s developing nations. Accordingly, the fund's returns received
strong contributions from Petroleo Brasileiro, a Brazilian oil and gas company;
Indian aluminum company Hindalco Industries; and Polish copper producer KGHM
Polska Miedz. Consumer-related stocks such as Banco Itau in Brazil and Korean
automobile manufacturer Hyundai Motor also helped boost the fund's performance
as their domestic markets continued to benefit from consumer spending.
In developed markets, Japan's economy began to improve on export activity, and a
rebound in Europe was led by Germany, where business and consumer sentiment
improved in anticipation of tax cuts. Mail and logistics company Deutsche Post
rallied on expectations for a rebound in German business activity.
Technology stocks generally achieved the strongest gains of any market sector
during the reporting period. However, many of the better-performing technology
stocks failed to meet our valuation criteria, and the fund's slightly lower
exposure to the sector hindered its relative performance. On the other hand, as
noted previously, the fund benefited greatly from its exposure to materials
stocks, including Pechiney, the French aluminum manufacturer and Anglo American,
the South African metals company. The fund's financial stocks also flourished,
with solid returns posted by Japanese consumer credit company Credit Saison and
Sun Hung Kai Properties, a Hong Kong real estate firm.
WHAT IS THE FUND'S CURRENT STRATEGY?
We continue to adhere to our longstanding diversification strategy, which
attempts to spread the risks of investing among various regions, sectors and
individual securities that, in our view, are attractively priced and enjoy
strong business fundamentals.
We recently have found what we believe to be attractive investment opportunities
in South African energy company Sasol, as well as banking firms such as
UniCredito Italiano in Italy and Royal Bank of Scotland in the United Kingdom.
Conversely, we have sold stock from Air France, PetroChina and Australia and New
Zealand Banking during the reporting period.
November 17, 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.
(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
FLOATED-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
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier
International Opportunities Fund Class A shares, Class B shares, Class C shares
and Class R shares with the Morgan Stanley Capital International All Country
World ex U.S. Free Index and the Morgan Stanley Capital International Europe,
Australasia, Far East Index
EXHIBIT A:
Morgan Morgan
Dreyfus Dreyfus Dreyfus Dreyfus Stanley Stanley
Premier Premier Premier Premier Capital Capital
International International International International International International
Opportunities Opportunities Opportunities Opportunities All Country Europe,
PERIOD Fund Fund Fund Fund World Australasia,
(Class A (Class B (Class C (Class R ex U. S. Free Far East
shares) shares) shares) shares) Index * Index *
3/31/98 9,427 10,000 10,000 10,000 10,000 10,000
10/31/98 8,537 9,016 9,016 9,064 9,238 9,573
10/31/99 10,650 11,153 11,159 11,341 11,572 11,778
10/31/00 10,577 10,995 11,001 11,297 11,332 11,436
10/31/01 9,141 9,425 9,431 9,788 8,507 8,585
10/31/02 8,364 8,549 8,564 8,979 7,581 7,451
10/31/03 10,474 10,509 10,613 11,288 9,886 9,466
* Source: Lipper Inc.
((+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE CLASS A, CLASS
B, CLASS C AND CLASS R SHARES OF DREYFUS PREMIER INTERNATIONAL OPPORTUNITIES
FUND ON 3/31/98 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE MORGAN
STANLEY CAPITAL INTERNATIONAL ALL COUNTRY WORLD EX U.S. FREE INDEX (THE "MSCI
ACW EX US FREE INDEX") AND THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE,
AUSTRALASIA, FAR EAST INDEX (THE "MSCI EAFE INDEX") ON THAT DATE. ALL DIVIDENDS
AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS T SHARES
WILL VARY FROM THE PERFORMANCE OF CLASS A, CLASS B, CLASS C AND CLASS R SHARES
SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES.
ON JANUARY 1, 2003, THE FUND'S BENCHMARK WAS CHANGED TO THE MSCI ACW EX US FREE
INDEX FROM THE MSCI EAFE INDEX TO CORRESPOND WITH THE FUND'S EXPANDED INVESTMENT
IN EMERGING MARKET COUNTRIES.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES, THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE ON CLASS B SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES ON ALL
CLASSES. THE MSCI ACW EX US 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 UNITES STATES. THE MSCI
EAFE INDEX IS AN UNMANAGED INDEX COMPOSED OF A SAMPLE OF COMPANIES
REPRESENTATIVE OF THE MARKET STRUCTURE OF EUROPEAN AND PACIFIC BASIN COUNTRIES
AND INCLUDES NET DIVIDENDS REINVESTED. THE INDICES DO NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. FURTHER INFORMATION RELATING TO FUND
PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN
THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT
Average Annual Total Returns AS OF 10/31/03
Inception From
Date 1 Year 5 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
WITH MAXIMUM SALES CHARGE (5.75%) 3/31/98 18.00% 2.95% 0.83%
WITHOUT SALES CHARGE 3/31/98 25.23% 4.17% 1.90%
CLASS B SHARES
WITH APPLICABLE REDEMPTION CHARGE ((+)) 3/31/98 19.99% 2.94% 0.89%
WITHOUT REDEMPTION 3/31/98 23.99% 3.29% 1.05%
CLASS C SHARES
WITH APPLICABLE REDEMPTION CHARGE ((+)(+)) 3/31/98 22.92% 3.32% 1.07%
WITHOUT REDEMPTION 3/31/98 23.92% 3.32% 1.07%
CLASS R SHARES 3/31/98 25.72% 4.49% 2.19%
CLASS T SHARES
WITH APPLICABLE SALES CHARGE (4.5%) 3/1/00 21.49% -- (1.52)%
WITHOUT SALES CHARGE 3/1/00 27.18% -- (0.27)%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE FUND'S PERFORMANCE
SHOWN IN THE GRAPH AND TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%.
AFTER SIX YEARS CLASS B SHARES CONVERT TO CLASS A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
STATEMENT OF INVESTMENTS
October 31, 2003
COMMON STOCKS--94.3% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA--1.8%
AMP 11,971 55,713
AMP (Rights) 11,971 694
National Australia Bank 3,100 67,073
Santos 18,100 78,221
201,701
BELGIUM--2.2%
Dexia 6,770 106,154
Dexia (Strips) 4,730 (a) 55
Fortis 8,250 145,972
252,181
BRAZIL--1.0%
Banco Itau, ADR 880 35,948
Petroleo Brasileiro, ADR 1,700 39,950
Telecomunicacoes Brasileiras, ADR 1,224 42,154
118,052
CANADA--1.7%
Quebecor World 6,750 115,153
Sobeys 3,500 82,717
197,870
CHINA--.5%
Shandong International Power Development, Cl. H 173,400 55,824
CROATIA--.3%
Pliva, GDR 2,200 (b) 32,780
FINLAND--1.7%
Nokia, ADR 4,259 72,360
Sampo, Cl. A 7,450 62,417
UPM-Kymmene 2,900 54,030
188,807
FRANCE--6.1%
Assurances Generales de France 965 50,698
Aventis 2,850 150,225
BNP Paribas 1,250 65,382
Compagnie Generale des Etablissements Michelin, Cl. B 1,636 63,895
Schneider Electric 1,340 78,075
Thomson 5,900 123,714
Total 1,045 161,680
693,669
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
GERMANY--4.5%
Deutsche Bank 1,100 72,175
Deutsche Lufthansa 3,890 60,320
Deutsche Post 4,520 87,089
E.ON 2,834 142,003
KarstadtQuelle 2,600 64,086
Volkswagen 1,790 89,898
515,571
GREECE--1.0%
Hellenic Telecommunications Organization 10,140 114,055
HONG KONG--2.0%
Bank of East Asia 16,447 49,243
China Mobile (Hong Kong) 20,500 58,209
MTR 23,651 31,979
Sun Hung Kai Properties 5,200 43,693
Swire Pacific, Cl. A 6,400 39,065
222,189
HUNGARY--.5%
Magyar Tavkozlesi 17,200 61,536
INDIA--1.2%
Hindalco Industries, GDR 2,700 (b) 65,883
Mahanagar Telephone Nigam, ADR 8,900 43,076
Reliance Industries, GDR 1,000 (b) 23,900
132,859
INDONESIA--1.0%
PT Gudang Garam 32,500 50,300
PT Indonesian Satellite 41,800 58,790
109,090
IRELAND--1.5%
Bank of Ireland 13,370 165,393
ITALY--2.9%
Banche Popolari Unite Scrl 1,235 (a) 18,722
Eni 7,205 113,892
Finmeccanica 131,160 93,040
Sanpaolo IMI 2,470 27,668
UniCredito Italiano 15,700 77,033
330,355
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
JAPAN--21.2%
AIFUL 1,100 69,481
CANON 2,000 96,701
Credit Saison 8,300 173,498
DENTSU 10 44,988
Eisai 4,700 110,206
FUNAI ELECTRIC 300 39,944
Fuji Heavy Industries 10,600 48,072
Fuji Photo Film 3,000 88,340
HONDA MOTOR 3,000 118,331
Kao 5,300 108,861
LAWSON 2,400 91,611
MABUCHI MOTOR 1,300 99,009
MINEBEA 13,500 76,806
MURATA MANUFACTURING 1,200 68,163
Matsumotokiyoshi 1,800 90,466
NIPPON TELEGRAPH AND TELEPHONE 14 62,474
Nippon Express 25,000 112,697
RINNAI 3,600 86,049
SFCG 490 71,342
SKYLARK CO. 4,900 80,650
SUMITOMO CHEMICAL 14,600 54,403
Sekisui House 5,000 49,032
77 Bank 11,000 57,584
Shin-Etsu Chemical 2,300 85,495
Shiseido 4,000 41,952
Sumitomo Bakelite 8,000 49,078
TDK 900 58,893
Takeda Chemical Industries 3,050 107,830
Toyota Motor 2,200 62,583
Yamaha Motor 8,000 90,666
2,395,205
LUXEMBOURG--.6%
Arcelor 4,600 65,315
MALAYSIA--.6%
Sime Darby 47,000 69,263
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
MEXICO--2.2%
Cemex, ADR 2,300 55,200
Coca-Cola Femsa, ADR 2,800 56,560
Kimberly-Clark de Mexico, Cl. A 29,000 70,542
Telefonos de Mexico, ADR 2,160 69,444
251,746
NETHERLANDS--4.5%
ABN AMRO 3,859 80,605
Akzo Nobel 3,030 95,372
Heineken 600 21,316
Hunter Douglas 1,402 52,241
Koninklijke (Royal) Philips Electronics 900 24,152
Koninklijke (Royal) Philips Electronics, ADR 2,650 71,126
Royal Dutch Petroleum 1,200 53,004
Vedior 1,777 25,499
Wolters Kluwer 6,318 88,392
511,707
NEW ZEALAND--.8%
Carter Holt Harvey 26,000 29,186
Telecom Corporation of New Zealand 19,854 58,944
88,130
NORWAY--1.3%
Norsk Hydro 1,350 75,480
Statoil 7,240 67,636
143,116
POLAND--.3%
KGHM Polska Miedz 4,700 (a) 30,150
PORTUGAL--1.2%
EDP 38,680 87,283
Portugal Telecom 5,527 46,242
133,525
SINGAPORE--1.3%
DBS 13,900 114,268
MobileOne 37,200 29,084
143,352
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA--2.3%
Nampak 32,900 61,948
Nedcor 6,600 60,317
Sasol 6,100 79,639
Tiger Brands 5,300 56,355
258,259
SOUTH KOREA--2.3%
Hyundai Motor, GDR 2,100 (b) 35,700
KT, ADR 2,500 49,275
Kookmin Bank, ADR 1,350 49,612
Korea Electric Power, ADR 6,860 74,431
POSCO, ADR 1,800 52,164
261,182
SPAIN--1.9%
Endesa 8,390 132,527
Repsol YPF, ADR 5,020 87,197
219,724
SWEDEN--1.0%
Investor, Cl. B 7,560 67,414
Nordea 8,500 52,408
119,822
SWITZERLAND--4.8%
Clariant 3,990 55,904
Nestle 600 131,465
Novartis 4,380 166,151
UBS 2,260 138,113
Zurich Financial Services 450 (a) 57,348
548,981
TAIWAN--.6%
United Microelectronics, ADR 12,157 (a) 63,824
UNITED KINGDOM--17.5%
Allied Domecq 22,020 147,089
Anglo American 2,333 47,671
BAE SYSTEMS 22,945 71,143
BOC 7,754 105,561
BT 29,300 92,088
Barclays 12,189 102,640
Bunzl 12,387 96,542
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
Cadbury Schweppes 21,848 139,832
Centrica 22,500 70,335
GKN 28,850 134,910
GlaxoSmithKline 7,320 156,517
Lloyds TSB 7,000 48,537
Marks & Spencer 20,000 97,507
Old Mutual 29,900 51,799
Rexam 6,600 48,084
Rio Tinto 4,203 101,761
Royal Bank of Scotland 4,100 109,687
Sainsbury (J) 21,132 101,415
Scottish and Southern Energy 9,360 97,293
Shell Transport & Trading 25,176 156,973
1,977,384
TOTAL COMMON STOCKS
(cost $9,018,235) 10,672,617
- ------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--6.2% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
..80%, 11/6/2003 200,000 199,984
..85%, 11/13/2003 151,000 150,962
..89%, 11/20/2003 151,000 150,935
..93%, 11/28/2003 200,000 199,870
TOTAL SHORT-TERM INVESTMENTS
(cost $701,725) 701,751
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $9,719,960) 100.5% 11,374,368
LIABILITIES, LESS CASH AND RECEIVABLES (.5%) (55,581)
NET ASSETS 100.0% 11,318,787
(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 OCTOBER 31,
2003, THESE SECURITIES AMOUNTED TO $158,263 OR 1.4% OF NET ASSETS.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2003
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 9,719,960 11,374,368
Cash 260,977
Cash denominated in foreign currencies 52,152 54,440
Dividends and interest receivable 29,022
Receivable for investment securities sold 23,141
Receivable for shares of Beneficial Interest subscribed 13,171
Prepaid expenses 28,260
11,783,379
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 6,172
Payable for investment securities purchased 402,480
Net unrealized depreciation on forward
currency exchange contracts--Note 4 4,273
Payable for shares of Beneficial Interest redeemed 1,300
Accrued expenses 50,367
464,592
- --------------------------------------------------------------------------------
NET ASSETS ($) 11,318,787
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 10,750,376
Accumulated undistributed investment income--net 78,243
Accumulated net realized gain (loss) on investments (1,166,792)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 1,656,960
- --------------------------------------------------------------------------------
NET ASSETS ($) 11,318,787
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 4,746,715 2,512,110 3,455,156 485,481 119,325
Shares Outstanding 405,826 223,017 306,786 41,147 10,137
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 11.70 11.26 11.26 11.80 11.77
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended October 31, 2003
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $30,467 foreign taxes withheld at source) 262,100
Interest 1,312
TOTAL INCOME 263,412
EXPENSES:
Management fee--Note 3(a) 93,361
Registration fees 62,177
Custodian fees 57,760
Shareholder servicing costs--Note 3(c) 55,120
Distribution fees--Note 3(b) 32,737
Auditing fees 29,433
Prospectus and shareholders' reports 19,741
Legal fees 2,069
Trustees' fees and expenses--Note 3(d) 1,593
Loan commitment fees--Note 2 99
Miscellaneous 15,407
TOTAL EXPENSES 369,497
Less--expense reimbursement from The Dreyfus Corporation
due to undertaking--Note 3(a) (151,070)
NET EXPENSES 218,427
INVESTMENT INCOME--NET 44,985
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions (388,909)
Net realized gain (loss) on forward currency exchange contracts 15,651
NET REALIZED GAIN (LOSS) (373,258)
Net unrealized appreciation (depreciation)
on investments and foreign currency transactions 2,616,609
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 2,243,351
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,288,336
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
----------------------------------
2003 2002
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 44,985 24,091
Net realized gain (loss) on investments (373,258) (488,437)
Net unrealized appreciation
(depreciation) on investments 2,616,609 (119,868)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,288,336 (584,214)
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
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) --
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 11,578,164 14,001,010
Class B shares 3,593,944 2,346,603
Class C shares 2,473,249 1,779,616
Class T shares 877,761 41,952
Dividends reinvested:
Class A shares 23,852 --
Class B shares 13,802 --
Class C shares 9,041 --
Class R shares 323 --
Class T shares 369 --
Cost of shares redeemed:
Class A shares (11,792,371) (13,569,321)
Class B shares (3,185,577) (1,361,574)
Class C shares (1,122,391) (679,631)
Class R shares (49,662) (412,441)
Class T shares (802,041) (15,668)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS 1,618,463 2,130,546
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,800,881 1,546,332
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 7,517,906 5,971,574
END OF PERIOD 11,318,787 7,517,906
Undistributed investment income--net 78,243 105,324
Year Ended October 31,
---------------------------------
2003 2002
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 1,188,196 1,305,639
Shares issued for dividends reinvested 2,560 --
Shares redeemed (1,194,815) (1,255,625)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (4,059) 50,014
- --------------------------------------------------------------------------------
CLASS B(A)
Shares sold 395,578 240,429
Shares issued for dividends reinvested 1,532 --
Shares redeemed (351,150) (143,436)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 45,960 96,993
- --------------------------------------------------------------------------------
CLASS C
Shares sold 256,526 179,878
Shares issued for dividends reinvested 1,004 --
Shares redeemed (119,380) (66,150)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 138,150 113,728
- --------------------------------------------------------------------------------
CLASS R
Shares issued for dividends reinvested 35 --
Shares redeemed (5,130) (38,428)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (5,095) (38,428)
- --------------------------------------------------------------------------------
CLASS T
Shares sold 93,227 3,906
Shares issued for dividends reinvested 51 --
Shares redeemed (85,417) (1,713)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 7,861 2,193
(A) DURING THE PERIOD ENDED OCTOBER 31, 2003, 2,780 CLASS B SHARES REPRESENTING
$28,985 WERE AUTOMATICALLY CONVERTED TO 2,684 CLASS A SHARES AND DURING THE
PERIOD ENDED OCTOBER 31, 2002, THERE WERE NO SHARES CONVERTED FROM CLASS B
TO CLASS A.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended October 31,
---------------------------------------------------------------------
CLASS A SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.47 10.35 12.96 13.98 11.32
Investment Operations:
Investment income--net(a) .09 .06 .04 .03 .03
Net realized and unrealized gain
(loss) on investments 2.27 (.94) (1.63) (.10) 2.75
Total from Investment Operations 2.36 (.88) (1.59) (.07) 2.78
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 11.70 9.47 10.35 12.96 13.98
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 25.23 (8.50) (13.57) (.69) 24.75
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.00 2.00 2.00 2.00 2.00
Ratio of net investment income
to average net assets .92 .52 .35 .24 .22
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.61 1.47 1.69 1.16 1.31
Portfolio Turnover Rate 78.42 65.83 49.65 42.16 41.73
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 4,747 3,882 3,724 4,121 4,110
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
---------------------------------------------------------------------
CLASS B SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.17 10.11 12.78 13.86 11.27
Investment Operations:
Investment income (loss)--net(a) .00(b) (.03) (.05) (.07) (.08)
Net realized and unrealized gain
(loss) on investments 2.18 (.91) (1.60) (.10) 2.74
Total from Investment Operations 2.18 (.94) (1.65) (.17) 2.66
Distributions:
Dividends from investment income--net (.09) -- -- -- (.02)
Dividends from net realized
gain on investments -- -- (1.02) (.91) (.05)
Total Distributions (.09) -- (1.02) (.91) (.07)
Net asset value, end of period 11.26 9.17 10.11 12.78 13.86
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 23.99 (9.30) (14.28) (1.42) 23.70
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.75 2.75 2.75 2.75 2.75
Ratio of net investment income
(loss) to average net assets .01 (.34) (.45) (.52) (.60)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.62 1.49 1.72 1.14 1.27
Portfolio Turnover Rate 78.42 65.83 49.65 42.16 41.73
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 2,512 1,624 809 799 960
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
----------------------------------------------------------------------
CLASS C SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.19 10.12 12.79 13.87 11.27
Investment Operations:
Investment (loss)--net(a) (.00)(b) (.04) (.05) (.06) (.07)
Net realized and unrealized gain
(loss) on investments 2.17 (.89) (1.60) (.11) 2.74
Total from Investment Operations 2.17 (.93) (1.65) (.17) 2.67
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 11.26 9.19 10.12 12.79 13.87
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 23.92 (9.19) (14.27) (1.42) 23.77
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.75 2.75 2.75 2.75 2.75
Ratio of net investment
(loss) to average net assets (.04) (.43) (.44) (.47) (.55)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.62 1.54 1.68 1.17 1.31
Portfolio Turnover Rate 78.42 65.83 49.65 42.16 41.73
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 3,455 1,549 556 677 585
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-----------------------------------------------------------------------
CLASS R SHARES 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.55 10.41 13.00 14.01 11.33
Investment Operations:
Investment income--net(a) .09 .08 .07 .07 .08
Net realized and unrealized gain
(loss) on investments 2.32 (.94) (1.64) (.10) 2.74
Total from Investment Operations 2.41 (.86) (1.57) (.03) 2.82
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 11.80 9.55 10.41 13.00 14.01
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 25.72 (8.26) (13.36) (.39) 25.12
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.75 1.75 1.75 1.75 1.75
Ratio of net investment income
to average net assets .94 .73 .55 .48 .62
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.62 1.46 1.68 1.16 1.32
Portfolio Turnover Rate 78.42 65.83 49.65 42.16 41.73
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 485 442 881 1,147 1,116
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
--------------------------------------------------------------------
CLASS T SHARES 2003 2002 2001 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.39 10.29 12.91 13.06
Investment Operations:
Investment income (loss)--net(b) .07 (.04) .00(c) .05
Net realized and unrealized gain
(loss) on investments 2.45 (.86) (1.60) (.20)
Total from Investment Operations 2.52 (.90) (1.60) (.15)
Distributions:
Dividends from investment income--net (.14) -- -- --
Dividends from net realized
gain on investments -- -- (1.02) --
Total Distributions (.14) -- (1.02) --
Net asset value, end of period 11.77 9.39 10.29 12.91
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(D) 27.18 (8.75) (13.70) (1.15)(e)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.25 2.25 2.25 1.51(e)
Ratio of net investment income
(loss) to average net assets .61 (.41) .04 .35(e)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 2.19 2.96 1.70 .85(e)
Portfolio Turnover Rate 78.42 65.83 49.65 42.16
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 119 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
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
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
(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. Income and
capital gain distributions are determined in accordance with income tax
regulations, which may differ from accounting principles generally accepted in
the United States.
(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.
At October 31, 2003, the components of accumulated earnings on a tax basis were
as follows: undistributed ordinary income $85,921, accumulated capital losses
$867,594 and unrealized appreciation $1,350,084.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The accumulated capital loss carryover is available to be applied against future
net securities profits, if any, realized subsequent to October 31, 2003. If not
applied, $153,123 of the carryover expires in fiscal 2009, $416,835 expires in
fiscal 2010 and $297,636 expires in fiscal 2011.
The tax character of distributions paid to shareholders during the fiscal
periods ended October 31, 2003 and October 31, 2002, were as follows: ordinary
income $105,918 and $0, respectively.
During the period ended October 31, 2003, as a result of permanent book to tax
differences, the fund increased accumulated undistributed investment income-net
by $33,852, decreased accumulated net realized gain (loss) on investments by
$31,985 and decreased paid-in capital by $1,867. Net assets were not affected by
this reclassification.
NOTE 2--BANK LINE OF CREDIT:
The fund participates with other Dreyfus-managed funds in a $350 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. During the period ended October 31, 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, 2004, that, if the aggregate expenses of
the fund exclusive of taxes, brokerage fees, interest on borrowings, Rule 12b-1
distribution plan fees, shareholder services plan fees, commitment fees and
extraordinaryexpenses, 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 $151,070 during
the period ended October 31, 2003.
During the period ended October 31, 2003, the Distributor retained $2,738 from
commissions earned on sales of fund Class A shares and $3,627 and $2,080 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
October 31, 2003, Class B, Class C and Class T shares were charged $15,335,
$17,208 and $194, 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 October 31, 2003, Class A, Class B, Class C and
Class T shares were charged $11,266, $5,112, $5,736 and $194, respectively,
pursuant to the Shareholder Services Plan.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 October 31, 2003, the fund was charged $9,931 pursuant to the transfer
agency agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex. Annual retainer fees and attendance fees are allocated to each
fund based on net assets.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities and forward currency exchange contracts, during the period
ended October 31, 2003, amounted to $8,222,014 and $6,923,480, respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the fund would incur a loss if the value
of the contract decreases between the date the forward contract is opened and
the date the forward contract is closed. The fund realizes a gain if the value
of the contract increases between those dates. The fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gains
on each open contract. The following summarizes open forward currency exchange
contracts at October 31, 2003:
Foreign Unrealized
Forward Currency Currency Appreciation
Exchange Contracts Amounts Cost ($) Value ($) (Depreciation) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PURCHASES:
British Pounds,
expiring 11/3/2003 51,874 88,419 87,890 (529)
Canadian Dollar,
expiring 11/4/2003 28,000 21,212 21,230 18
Euro, expiring 11/3/2003 140,898 165,132 163,047 (2,085)
Euro, expiring 11/4/2003 10,764 12,513 12,456 (57)
Japanese Yen,
expiring 11/3/2003 7,633,235 70,613 69,374 (1,239)
Malaysian Ringgit,
expiring 11/3/2003 66,926 17,619 17,612 (7)
New Zealand Dollar,
expiring 11/3/2003 59,255 36,412 36,347 (65)
South Africa Rand,
expiring 11/3/2003 224,017 32,644 32,496 (148)
Swiss Francs,
expiring 11/3/2003 15,233 11,514 11,353 (161)
TOTAL (4,273)
At October 31, 2003, the cost of investments for federal income tax purposes was
$10,031,102; accordingly, accumulated net unrealized appreciation on investments
was $1,343,266, consisting of $1,758,109 gross unrealized appreciation and
$414,843 gross unrealized depreciation.
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees Dreyfus Premier International Opportunities
Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Premier International Opportunities
Fund (one of the funds comprising Dreyfus Premier Value Equity Funds) as of
October 31, 2003, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2003 by correspondence with
the custodian and others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier International Opportunities Fund, at October 31, 2003, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the indicated periods, in conformity with accounting principles
generally accepted in the United States.
/S/ERNST & YOUNG LLP
New York, New York
December 11, 2003
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund elects to provide each shareholder
with their portion of the fund's foreign taxes paid and the income sourced from
foreign countries. Accordingly, the fund hereby makes the following designations
regarding its fiscal year ended October 31, 2003:
-- the total amount of taxes paid to foreign countries was $30,467
-- the total amount of income sourced from foreign countries was $102,497
As required by Federal tax law rules, shareholders will receive notification of
their proportionate share of foreign taxes paid, foreign sourced income and
qualifying dividends for the 2003 calendar year with Form 1099-DIV which will be
mailed by January 31, 2004.
The Fund
BOARD MEMBERS INFORMATION (Unaudited)
Joseph S. DiMartino (60)
Chairman of the Board (1995)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* The Muscular Dystrophy Association, Director
* Levcor International, Inc., an apparel fabric processor, Director
* Century Business Services, Inc., a provider of outsourcing functions for small
and medium size companies, Director
* The Newark Group, a provider of a national market of paper recovery
facilities, paperboard mills and paperboard converting plants, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 191
--------------
David W. Burke (67)
Board Member (1994)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Corporate Director and Trustee
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* John F. Kennedy Library Foundation, Director
* U.S.S. Constitution Museum, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 87
--------------
Diane Dunst (64)
Board Member (1990)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President, Huntting House Antiques
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 13
--------------
Rosalind Gersten Jacobs (78)
Board Member (1994)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Merchandise and marketing consultant
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 37
--------------
Jay I. Meltzer (75)
Board Member (1991)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Physician, Internist and Specialist in Clinical Hypertension
* Clinical Professor of Medicine at Columbia University & College of Physicians
and Surgeons
* Adjunct Clinical Professor of Medicine at Cornell Medical College
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 13
Daniel Rose (74)
Board Member (1992)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Chairman and Chief Executive Officer of Rose Associates, Inc., a New York
based real estate development and management firm
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Baltic-American Enterprise Fund, Vice Chairman
* Harlem Educational Activities Fund, Inc., Chairman
* Housing Committee of the Real Estate Board of New York, Inc., Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 24
--------------
Warren B. Rudman (73)
Board Member (1993)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* Of Counsel to (from January 1993 to December 31, 2002, Partner in) the law
firm Paul, Weiss, Rifkind, Wharton & Garrison LLP
OTHER BOARD MEMBERSHIPS AND AFFILIATIONS:
* Collins & Aikman Corporation, Director
* Allied Waste Corporation, Director
* Chubb Corporation, Director
* Raytheon Company, Director
* Boston Scientific, Director
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 21
--------------
Sander Vanocur (75)
Board Member (1992)
PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
* President of Old Owl Communications
NO. OF PORTFOLIOS FOR WHICH BOARD MEMBER SERVES: 24
--------------
ONCE ELECTED ALL BOARD MEMBERS SERVE FOR AN INDEFINITE TERM. ADDITIONAL
INFORMATION ABOUT THE BOARD MEMBERS, INCLUDING THEIR ADDRESS IS AVAILABLE IN THE
FUND'S STATEMENT OF ADDITIONAL INFORMATION WHICH CAN BE OBTAINED FROM DREYFUS
FREE OF CHARGE BY CALLING THIS TOLL FREE NUMBER: 1-800-554-4611.
The Fund
OFFICERS OF THE FUND (Unaudited)
STEPHEN E. CANTER, PRESIDENT SINCE MARCH 2000.
Chairman of the Board, Chief Executive Officer and Chief Operating Officer
of the Manager, and an officer of 95 investment companies (comprised of 189
portfolios) managed by the Manager. Mr. Canter also is a Board member and, where
applicable, an Executive Committee Member of the other investment management
subsidiaries of Mellon Financial Corporation, each of which is an affiliate of
the Manager. He is 58 years old and has been an employee of the Manager since
May 1995.
STEPHEN R. BYERS, EXECUTIVE VICE PRESIDENT SINCE NOVEMBER 2002.
Chief Investment Officer, Vice Chairman and a Director of the Manager, and
an officer of 95 investment companies (comprised of 189 portfolios) managed by
the Manager. Mr. Byers also is an officer, director or an Executive Committee
Member of certain other investment management subsidiaries of Mellon Financial
Corporation, each of which is an affiliate of the Manager. He is 50 years old
and has been an employee of the Manager since January 2000. Prior to joining the
Manager, he served as an Executive Vice President-Capital Markets, Chief
Financial Officer and Treasurer at Gruntal & Co., L.L.C.
MARK N. JACOBS, VICE PRESIDENT SINCE MARCH 2000.
Executive Vice President, Secretary and General Counsel of the Manager, and
an officer of 96 investment companies (comprised of 205 portfolios) managed by
the Manager. He is 57 years old and has been an employee of the Manager since
June 1977.
JOHN B. HAMMALIAN, SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 37 investment
companies (comprised of 46 portfolios) managed by the Manager. He is 40 years
old and has been an employee of the Manager since February 1991.
STEVEN F. NEWMAN, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel and Assistant Secretary of the Manager, and an
officer of 96 investment companies (comprised of 205 portfolios) managed by the
Manager. He is 54 years old and has been an employee of the Manager since July
1980.
MICHAEL A. ROSENBERG, ASSISTANT SECRETARY SINCE MARCH 2000.
Associate General Counsel of the Manager, and an officer of 93 investment
companies (comprised of 198 portfolios) managed by the Manager. He is 43 years
old and has been an employee of the Manager since October 1991.
JAMES WINDELS, TREASURER SINCE NOVEMBER 2001.
Director - Mutual Fund Accounting of the Manager, and an officer of 96
investment companies (comprised of 205 portfolios) managed by the Manager. He is
45 years old and has been an employee of the Manager since April 1985.
RICHARD CASSARO, ASSISTANT TREASURER SINCE AUGUST 2003.
Senior Accounting Manager - Equity Funds of the Manager, and an officer of
25 investment companies (comprised of 105 portfolios) managed by the Manager. He
is 44 years old and has been an employee of the Manager since September 1982.
ROBERT SVAGNA, ASSISTANT TREASURER SINCE DECEMBER 2002.
Senior Accounting Manager - Equity Funds of the Manager, and an officer of
25 investment companies (comprised of 105 portfolios) managed by the Manager. He
is 36 years old and has been an employee of the Manager since November 1990.
KENNETH J. SANDGREN, ASSISTANT TREASURER SINCE NOVEMBER 2001.
Mutual Funds Tax Director of the Manager, and an officer of 96 investment
companies (comprised of 205 portfolios) managed by the Manager. He is 49 years
old and has been an employee of the Manager since June 1993.
WILLIAM GERMENIS, ANTI-MONEY LAUNDERING COMPLIANCE OFFICER SINCE AUGUST 2002.
Vice President and Anti-Money Laundering Compliance Officer of the
Distributor, and the Anti-Money Laundering Compliance Officer of 91 investment
companies (comprised of 200 portfolios) managed by the Manager. He is 33 years
old and has been an employee of the Distributor since October 1998. Prior to
joining the Distributor, he was a Vice President of Compliance Data Center, Inc.
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
A description of the policies
and procedures that the fund
uses to determine how to
vote proxies relating to
portfolio securities is
available, without charge,
by calling the telephone
number listed above, or by
visiting the SEC's website at
http://www.sec.gov
(c) 2003 Dreyfus Service Corporation 173AR1003
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board has determined that Joseph S. DiMartino, a
member of the Audit Committee of the Board, is an audit committee financial
expert as defined by the Securities and Exchange Commission (the "SEC").
Joseph S. DiMartino is "independent" as defined by the SEC for purposes of
audit committee financial expert determinations.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
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) The Registrant's principal executive and principal financial officers
have concluded, based on their evaluation of the Registrant's disclosure
controls and procedures as of a date within 90 days of the filing date of
this report, that the Registrant's disclosure controls and procedures are
reasonably designed to ensure that information required to be disclosed by
the Registrant on Form N-CSR is recorded, processed, summarized and reported
within the required time periods and that information required to be
disclosed by the Registrant in the reports that it files or submits on Form
N-CSR is accumulated and communicated to the Registrant's management,
including its principal executive and principal financial officers, as
appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over
financial reporting that occurred during the Registrant's most recently ended
fiscal half-year that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 10. EXHIBITS.
(a)(1) Code of ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(b) Certification of principal executive and principal financial officers
as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this Report to
be signed on its behalf by the undersigned, thereunto duly authorized.
DREYFUS PREMIER VALUE EQUITY FUNDS
By: /S/ STEPHEN E. CANTER
Stephen E. Canter
President
Date: December 19, 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: December 19, 2003
By: /S/ JAMES WINDELS
James Windels
Chief Financial Officer
Date: December 19, 2003
EXHIBIT INDEX
(a)(1) Code of ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of
1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial
officers as required by Rule 30a-2(b) under the Investment Company Act of
1940. (EX-99.906CERT)