N-CSR 1 form-6096.htm ANNUAL REPORT form-6096
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 811-3940 
Strategic Funds, Inc. 
(Exact name of Registrant as specified in charter) 

c/o The Dreyfus Corporation 
200 Park Avenue 
New York, New York 10166 
(Address of principal executive offices) (Zip code) 
 
Michael A. Rosenberg, 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:    5/31 
Date of reporting period:    5/31/07 

The following N-CSR relates only to the Registrant’s series listed below and does not affect the other series of the Registrant, which have different fiscal year ends and, therefore, different N-CSR reporting requirements. Separate N-CSR Forms will be filed for these series, as appropriate.

Emerging Markets Opportunity Fund

FORM N-CSR

Item 1. Reports to Stockholders.

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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    A Letter from the CEO 
3    Discussion of Fund Performance 
6    Fund Performance 
8    Understanding Your Fund’s Expenses 
8    Comparing Your Fund’s Expenses 
With Those of Other Funds
9    Statement of Investments 
15    Statement of Assets and Liabilities 
16    Statement of Operations 
17    Statement of Changes in Net Assets 
19    Financial Highlights 
20    Notes to Financial Statements 
29    Report of Independent Registered 
    Public Accounting Firm 
30    Important Tax Information 
31    Board Members Information 
34    Officers of the Fund 
FOR MORE INFORMATION
    Back Cover 

The Fund

Emerging Markets 
Opportunity Fund 

A LETTER FROM THE CEO

Dear Shareholder:

We are pleased to present this annual report for Emerging Markets Opportunity Fund, covering the period from the fund’s inception on July 13, 2006, through May 31, 2007.

Conditions in the global economy have remained relatively robust, even as U.S. economic growth has moderated. While we expect the global expansion to continue, it probably will do so at a somewhat reduced pace as softer U.S. consumer and business spending reduces demand for imports and some high-flying emerging markets, notably China, take steps to reduce unsustainably high growth rates. These factors may compel global investors to proceed with a sense of greater caution.

The U.S. dollar, however, has continued to decline relative to most other currencies, making investments denominated in foreign currencies more valuable for U.S. residents.We expect this trend to persist, as a stubborn U.S. trade deficit and stronger economic growth in some overseas markets continue to attract global capital away from U.S. markets and toward those with higher potential returns. These factors, combined with a weakening U.S. dollar, could lead to new opportunities and challenges in international equity markets. As always, your financial advisor can help you position your investments for these developments.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Managers.

Thank you for your continued confidence and support.

2

DISCUSSION OF FUND PERFORMANCE

For the period between the fund’s inception on July 13, 2006, and May 31, 2007, as provided by Hugh Hunter,Tony Hann, Richard Fairgrieve and Bill Rudman, Portfolio Managers, WestLB Mellon Asset Management (USA) LLC, Sub-Investment Adviser

Fund and Market Performance Overview

The emerging markets continued to advance during the reporting period, benefiting from expanding economies in many regions of the world.Although the fund participated in the market’s gains to a significant degree and posted a strong absolute return since its inception date, its returns fell short of the benchmark index, as good results from our bottom-up security selection strategy were partly offset by more disappointing returns from our top-down country allocation strategy.

Between its inception on July 13, 2006, and the end of its annual reporting period on May 31, 2007, the fund achieved total returns of 35.12% for Class A shares, 34.32% for Class C shares, 35.44% for Class I shares and 34.88% for Class T shares.1 In comparison, the fund’s benchmark, the Morgan Stanley Capital International Emerging Markets Index (the “Index”), produced a 38.50% total return for the period from June 30, 2006, through May 31, 2007.2

Effective 6/1/07, Class R shares were renamed Class I shares.

The Fund’s Investment Approach

The fund seeks long-term capital appreciation by investing in the stocks of companies organized, or with a majority of their assets and operations, in emerging market countries.The fund may invest in companies of any size.We allocate the fund’s assets among emerging market countries using a top-down, quantitative model that incorporates valuation, currency, momentum, growth, interest-rate and risk factors to determine each country’s weighting relative to the Index.We also consider qualitative factors, such as political and economic developments, and market factors, such as liquidity.To select individual stocks, our bottom-up process focuses on fundamental analysis, including assessments of each company’s management, product lines and competitive positions.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

Emerging Markets Continued to Advance in Expanding Global 
and Domestic Economies 

The world’s emerging markets continued to post high absolute returns during the reporting period, with gains fueled by strong demand for exports and increased domestic consumption by a growing middle class. Growth was particularly strong in former third-world countries, such as China and India, where low-cost labor has attracted manufacturing operations and investment capital from higher-cost, developed nations.

The fund also produced strong absolute returns, but its results lagged its benchmark index, primarily due to our value-oriented country allocation strategy. Our allocation model tends to favor markets where stocks are more reasonably priced relative to earnings growth. In particular, our model regarded India as richly valued, leading to a generally underweighted position in the subcontinent relative to the benchmark index. However, India’s stock market continued to rally. Conversely, our model determined that stocks in Russia were more attractively valued, leading to relatively heavy exposure during a time in which Russian stocks underperformed the averages. In addition, the fund’s start-up costs detracted from returns during the reporting period, as did the inflow of new investments. Because it took time to deploy new capital, a larger-than-average cash position prevented the fund from participating more fully in the emerging markets’ gains.

The fund achieved better results in other markets. Overweighted positions in Malaysia and Peru contributed positively to performance, as rising commodity prices benefited materials producers and higher lending volumes boosted earnings for banks.

Successful Security Selections Boosted Fund Performance

Our stock selection strategy proved to be especially successful in China, Thailand and South Africa. Among Thai companies, coal producer Banpu Public benefited from rising industrial demand for energy throughout the Pacific Rim. Oil services and refining company PTT fared well due to tight refinery capacity and improving profit margins. A number of stocks in China produced strong gains in a rapidly growing economy, including electric utility China Resources Power, which was sold during the reporting period, and financial services provider China Merchants Bank.Among the fund’s South Africa

4

holdings, Impala Platinum Holdings rose on the strength of higher prices for precious metals.

The fund also received positive contributions from its holdings in Brazil and Taiwan. In Brazil, integrated oil producers such as Petróleo Brasileiro and Cia Vale Do Rio Doce helped satisfy ongoing demand from China for energy commodities.Taiwan posted strong results from shipping companies and manufacturers of flat-screen televisions. On the other hand, results in Russia were undermined by lackluster performance from Gazprom and other energy companies.

Finding Value-Oriented Opportunities in Rising Markets

Global economic growth has remained robust despite signs of a slowdown in the United States, a major trading partner of many emerging-markets nations. Robust growth has produced a reacceler-ation of inflation in some markets, such as India and China, requiring their central banks to raise short-term interest rates. However, other markets including Brazil and Thailand have reduced interest rates as inflationary pressures subsided. In addition, valuations in some markets have become stretched, in our judgment, after sustained market rallies. In other areas, where explosive earnings growth has justified higher stock prices, valuations have remained more attractive.

Our investment approach is designed to identify those markets where conditions are conducive to higher stock prices.Within those regions, we seek to take advantage of periods of heightened market volatility to purchase stocks of growing companies at reasonable prices.

June 15, 2007

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 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 certain fund expenses by The Dreyfus Corporation in effect through September 30, 
    2008, at which time it may be extended, terminated or modified. Had these expenses not been 
    absorbed, the fund’s returns would have been lower. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable, capital 
    gain distributions.The Morgan Stanley Capital International Emerging Markets (MSCI EM) Index 
    is a market capitalization-weighted index composed of companies representative of the market structure 
    of 26 emerging market countries in Europe, Latin America and the Pacific Basin. For comparative 
    purposes, the value of the Index on 6/30/06 is used as the beginning value on 7/13/06. 

The Fund 5

FUND PERFORMANCE

† Source: Lipper Inc. 
Past performance is not predictive of future performance. 
The above graph compares a $10,000 investment made in Class A, Class C, Class I and Class T shares of Emerging 
Markets Opportunity Fund on 7/13/06 (inception date) to a $10,000 investment made in the Morgan Stanley Capital 
International Emerging Markets Index (the “Index”) on that date. For comparative purposes, the value of the Index on 
6/30/06 is used as the beginning value on 7/13/06.All dividends and capital gain distributions are reinvested. 
The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A 
shares, the applicable contingent deferred sales charge on Class C shares and all other applicable fees and expenses on all 
classes.The Index is a market capitalization-weighted index composed of companies representative of the market structure 
of 26 emerging market countries in Europe, Latin America and the Pacific Basin.The Index excludes closed markets and 
those shares in otherwise free markets that are not purchasable by foreigners.The Index includes gross dividends reinvested 
and does not take into account charges, fees and other expenses.These factors can contribute to the Index potentially 
outperforming the fund. 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. 

6

Actual Aggregate Total Returns    as of    5/31/07         
 
            Inception    From 
            Date    Inception 
Class A shares                 
with maximum sales charge (5.75%)            7/13/06    27.38% 
without sales charge            7/13/06    35.12% 
Class C shares                 
with applicable redemption charge †            7/13/06    33.32% 
without redemption            7/13/06    34.32% 
Class I shares            7/13/06    35.44% 
Class T shares                 
with applicable sales charge (4.5%)            7/13/06    28.80% 
without sales charge            7/13/06    34.88% 

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 C shares is 1% for shares redeemed within one year of the 
date of purchase. 

The Fund 7

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Emerging Markets Opportunity Fund from December 1, 2006 to May 31, 2007. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment             
assuming actual returns for the six months ended May 31, 2007         
    Class A    Class C    Class R    Class T 
Expenses paid per $1,000 †    $ 10.73    $ 14.73    $ 9.40    $ 12.07 
Ending value (after expenses)    $1,152.10    $1,148.40    $1,154.10    $1,151.70 

COMPARING YOUR FUND’S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment             
assuming a hypothetical 5% annualized return for the six months ended May 31, 2007 
    Class A    Class C    Class R    Class T 
Expenses paid per $1,000 †    $ 10.05    $ 13.79    $ 8.80    $ 11.30 
Ending value (after expenses)    $1,014.96    $1,011.22    $1,016.21    $1,013.71 
 
† Expenses are equal to the fund’s annualized expense ratio of 2.00% for Class A, 2.75% for Class C, 1.75% for 
Class R and 2.25% for Class T, multiplied by the average account value over the period, multiplied by 182/365 (to 
reflect the one-half year period).                 

8

STATEMENT OF INVESTMENTS 
May 31, 2007 

Common Stocks—96.1%    Shares        Value ($) 
Argentina—.4%             
BBVA Banco Frances, ADR    5,500        65,890 
Brazil—9.6%             
Banco Bradesco, ADR    6,000        152,340 
Cia de Bebidas das Americas (AmBev), ADR    800        53,440 
Cia de Bebidas das Americas (AmBev), ADR (Preferred)    900        61,020 
Cia Vale do Rio Doce (CVRD), ADR    2,400        109,080 
Cia Vale do Rio Doce (CVRD), ADR (Preferred)    7,600        291,688 
EDP—Energias do Brasil    3,200        56,845 
Empresa Brasileira de Aeronautica, ADR    2,000        96,960 
Equatorial Energia    5,600        56,140 
GAFISA, ADR    1,700 a        57,596 
GVT Holding    3,900 a        58,322 
JBS    11,000 a        46,281 
Petroleo Brasileiro, ADR    800        86,528 
Petroleo Brasileiro, ADR (Preferred)    4,000        383,520 
Positivo Informatica    2,500        50,644 
Tam, ADR    900        30,582 
Unibanco—Uniao de Bancos Brasileiros, GDR    700        78,617 
            1,669,603 
China—9.2%             
Aluminum Corp. of China, Cl. H    90,000        119,181 
China Construction Bank, Cl. H    262,000 b        157,033 
China Life Insurance, Cl. H    102,000        315,472 
China Merchants Bank, Cl. H    72,000        185,802 
China Petroleum & Chemical, ADR    100        10,980 
China Petroleum & Chemical, Cl. H    126,000        140,712 
China Shenhua Energy, Cl. H    58,701        172,157 
China Telecom, Cl. H    354,000        190,413 
Datang International Power Generation, Cl. H    134,000        174,358 
PetroChina, Cl. H    110,000        143,975 
            1,610,083 
Egypt—.9%             
Orascom Construction, GDR    1,200        158,651 

The Fund 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares        Value ($) 
Hong Kong—4.5%             
China Mobile    25,500        238,400 
China Mobile, ADR    4,700        218,174 
China Overseas Land & Investment    106,000        145,527 
Shangri-La Asia    72,000        187,185 
            789,286 
Hungary—.8%             
Magyar Telecom, ADR    1,600        40,464 
MOL Hungarian Oil, ADR    800        97,113 
            137,577 
India—1.5%             
Bharat Heavy Electricals    2,640        89,901 
iPath MSCI India Index ETN    1,200 a        72,372 
Reliance Industries    1,800        76,197 
Reliance Industries, GDR    200 b        17,439 
            255,909 
Israel—2.3%             
Bank Hapoalim    18,000        97,304 
Bezeq Israeli Telecommunication    47,660        83,915 
Elbit Systems Ltd    1,050        45,269 
Teva Pharmaceutical Industries, ADR    4,400        172,480 
            398,968 
Luxembourg—1.3%             
Tenaris, ADR    4,600        228,390 
Malaysia—5.7%             
Bumiputra-Commerce Holdings    57,700        202,039 
Genting Berhad    78,200        181,780 
IOI    14,800        119,759 
KNM Group Berhad    39,000        160,659 
Public Bank    49,500        145,652 
YTL Berhad    74,200        194,315 
            1,004,204 

10

Common Stocks (continued)    Shares    Value ($) 
Mexico—1.2%         
America Movil, ADR, Ser. L    1,800    108,990 
Consorcio ARA    34,000    54,745 
Wal-Mart de Mexico, Ser. V    11,426    43,218 
        206,953 
Peru—2.2%         
Credicorp    6,653    387,737 
Poland—1.7%         
Bank Pekao    834    74,152 
KGHM Polska Miedz    580    23,729 
Powszechna Kasa Oszczednosci Bank Polski    7,612    142,957 
Telekomunikacja Polska    6,719    49,763 
        290,601 
Russia—11.6%         
Cherepovets MK Severstal, GDR    9,700    124,388 
Gazprom, ADR    16,930    617,945 
LUKOIL, ADR    5,500    412,651 
MMC Norilsk Nickel, ADR    1,030    196,305 
Mobile Telesystems, ADR    3,400    184,212 
RAO Unified Energy System of Russia, GDR    1,600    195,962 
VTB Bank, GDR    26,700 a    301,710 
        2,033,173 
South Africa—3.0%         
Anglo Platinum    275    46,447 
Exxaro Resources    2,183    21,052 
FirstRand    23,164    74,971 
Gold Fields    2,541    43,239 
Impala Platinum Holdings    666    20,814 
Mittal Steel South Africa    1,950    34,440 
MTN Group    5,128    70,212 
Murray & Roberts Holdings    7,330    69,866 
Naspers, Cl. N    2,100    56,037 

The Fund 11

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares        Value ($) 
South Africa (continued)             
Sasol    1,567        57,108 
Truworths International    6,672        38,428 
            532,614 
South Korea—15.7%             
Daelim Industrial    1,250        188,628 
GS Engineering & Construction    1,870        248,930 
Hana Financial Group    3,260        165,152 
Hanjin Heavy Industries & Construction    3,700        227,324 
Kookmin Bank, ADR    2,400        216,936 
Korea Exchange Bank    10,820        169,108 
LG    3,830        183,708 
LG.Philips LCD, ADR    8,700 a        175,566 
Mirae Asset Securities    1,786        132,446 
Orion    551        156,198 
POSCO, ADR    2,100        250,530 
Samsung Electronics    281        162,043 
Samsung Electronics, GDR (Common)    706 b        204,705 
Samsung Electronics, GDR (Preferred)    598 b        134,251 
Shinsegae    149        106,801 
            2,722,326 
Taiwan—14.0%             
Acer    25,000        46,163 
Advanced Semiconductor Engineering    54,000 a        62,116 
Au Optronics    82,000        126,593 
Cathay Financial Holding    101,889        214,974 
Cathay Financial Holding, GDR    1,000        21,220 
China Steel    82,000        95,565 
Delta Electronics    18,000        58,847 
HON HAI Precision Industry    39,200        277,076 
MediaTek    12,300        194,730 
Morgan Stanley Capital International             
Taiwan Index (warrants 10/30/07)    35,342 a,b        340,630 

12

Common Stocks (continued)    Shares        Value ($) 
Taiwan (continued)             
NAN YA Plastic    40,000        77,494 
President Chain Store    75,000        204,102 
SinoPac Financial Holdings    133,000        57,975 
Taiwan Fertilizer    42,000        78,698 
Taiwan Semiconductor Manufacturing, ADR    48,000        523,680 
Vanguard International Semiconductor    70,000        71,303 
            2,451,166 
Thailand—4.6%             
Advanced Info Service Public Company    33,900        92,736 
Banpu Public    28,100        186,195 
PTT    39,000        301,094 
Siam Commercial Bank    104,700        219,584 
            799,609 
Turkey—1.6%             
Turk Hava Yollari Anonim Ortakligi    15,880 a        101,246 
Turkiye Garanti Bankasi    33,060        181,924 
            283,170 
United Kingdom—.0%             
Hochschild Mining    722        4,404 
United States—4.3%             
iShares MSCI Emerging Markets Index Fund    4,000        507,200 
Southern Copper    2,838        251,674 
            758,874 
Total Common Stocks             
(cost $14,044,238)            16,789,188 
 
Preferred Stocks—1.5%             
Brazil:             
Bradespar    2,800        106,462 
Investimentos Itau    24,558        153,456 
Total Preferred Stocks             
(cost $131,451)            259,918 

The Fund 13

STATEMENT OF INVESTMENTS (continued)

Other Investment—1.7%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $300,000)    300,000 c    300,000 
 
Total Investments (cost $14,475,689)    99.3%    17,349,106 
 
Cash and Receivables (Net)    .7%    124,470 
 
Net Assets    100.0%    17,473,576 
 
ADR—American Depository Receipts         
GDR—Global Depository Receipts         
a Non-income producing security.         
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 May 31, 2007, these securities 
amounted to $854,058 or 4.9% of net assets.         
c Investment in affiliated money market mutual fund.     

Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Financial    22.4    Utilities    2.8 
Energy    17.4    Consumer Discretionary    1.9 
Industrial    14.1    Money Market Investment    1.7 
Basic Materials    12.5    Health Care    1.0 
Information Technology    8.3    Real Estate Management     
Telecommunication Services    7.2    & Development    .3 
Exchange Traded Funds    4.9    Other    .1 
Consumer Staples    4.7        99.3 
 
† Based on net assets.             
See notes to financial statements.             

14

STATEMENT OF ASSETS AND LIABILITIES 
May 31, 2007 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments:     
Unaffiliated issuers    14,175,689    17,049,106 
Affiliated issuers    300,000    300,000 
Cash        83,010 
Cash denominated in foreign currencies    10,123    10,011 
Receivable for investment securities sold        295,230 
Dividends and interest receivable        40,598 
Receivable for shares of Common Stock subscribed    7,655 
Unrealized appreciation on forward         
currency exchange contracts—Note 4        13 
Prepaid expenses        47,052 
        17,832,675 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(c)    14,605 
Payable for investment securities purchased    256,741 
Payable for shares of Common Stock redeemed    14,974 
Unrealized depreciation on forward         
currency exchange contracts—Note 4        125 
Accrued expenses        72,654 
        359,099 
Net Assets ($)        17,473,576 
Composition of Net Assets ($):         
Paid-in capital        13,812,987 
Accumulated undistributed investment income—net    45,213 
Accumulated net realized gain (loss) on investments    741,924 
Accumulated net unrealized appreciation (depreciation)     
on investments and foreign currency transactions    2,873,452 
Net Assets ($)        17,473,576 

Net Asset Value Per Share                 
    Class A    Class C    Class R    Class T 
Net Assets ($)    15,693,843    985,812    440,146    353,775 
Shares Outstanding    933,352    59,013    26,119    21,086 
Net Asset Value Per Share ($)    16.81    16.70    16.85    16.78 
 
See notes to financial statements.                 

The Fund 15

STATEMENT OF OPERATIONS 
From July 13, 2006 (commencement of operations) to May 31, 2007 

Investment Income ($):     
Income:     
Cash dividends (net of $22,195 foreign taxes withheld at source):     
Unaffiliated issuers    202,856 
Affiliated issuers    24,422 
Interest    59 
Total Income    227,337 
Expenses:     
Management fee—Note 3(a)    132,634 
Custodian fees    89,180 
Legal fees    56,690 
Registration fees    51,159 
Auditing fees    36,572 
Shareholder servicing costs—Note 3(c)    28,586 
Prospectus and shareholders’ reports    8,188 
Distribution fees—Note 3(b)    4,571 
Directors’ fees and expenses—Note 3(d)    1,241 
Loan commitment fees—Note 2    18 
Miscellaneous    11,973 
Total Expenses    420,812 
Less—expense reimbursement from The Dreyfus     
Corporation due to undertaking—Note 3(a)    (204,765) 
Less—reduction in custody fees due to earnings credits—Note 1(c)    (5,103) 
Net Expenses    210,944 
Investment Income—Net    16,393 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign     
currency transactions (net of $237 foreign taxes)    815,164 
Net realized gain (loss) on forward currency exchange contracts    19,350 
Net Realized Gain (Loss)    834,514 
Net unrealized appreciation (depreciation) on     
investments and foreign currency transactions    2,873,452 
Net Realized and Unrealized Gain (Loss) on Investments    3,707,966 
Net Increase in Net Assets Resulting from Operations    3,724,359 
 
See notes to financial statements.     

16

STATEMENT OF CHANGES IN NET ASSETS 
From July 13, 2006 (commencement of operations) to May 31, 2007 

Operations ($):     
Investment income—net    16,393 
Net realized gain (loss) on investments    834,514 
Net unrealized appreciation (depreciation) on investments    2,873,452 
Net Increase (Decrease) in Net Assets     
Resulting from Operations    3,724,359 
Dividends to Shareholders from ($):     
Net realized gain on investments:     
Class A shares    (60,722) 
Class C shares    (3,052) 
Class R shares    (1,651) 
Class T shares    (1,448) 
Total Dividends    (66,873) 
Capital Stock Transactions ($):     
Net proceeds from shares sold:     
Class A shares    12,979,345 
Class C shares    808,849 
Class R shares    413,053 
Class T shares    265,107 
Dividends reinvested:     
Class A shares    27,531 
Class C shares    1,539 
Class R shares    1,651 
Class T shares    1,448 
Cost of shares redeemed:     
Class A shares    (607,338) 
Class C shares    (95) 
Class R shares    (75,000) 
Increase (Decrease) in Net Assets     
from Capital Stock Transactions    13,816,090 
Total Increase (Decrease) in Net Assets    17,473,576 
Net Assets ($):     
Beginning of Period    — 
End of Period    17,473,576 
Undistributed investment income—net    45,213 

The Fund 17

STATEMENT OF CHANGES IN NET ASSETS (continued)

Capital Share Transactions:     
Class A     
Shares sold    971,989 
Shares issued for dividends reinvested    1,815 
Shares redeemed    (40,452) 
Net Increase (Decrease) in Shares Outstanding    933,352 
Class C     
Shares sold    58,918 
Shares issued for dividends reinvested    102 
Shares redeemed    (7) 
Net Increase (Decrease) in Shares Outstanding    59,013 
Class R     
Shares sold    30,464 
Shares issued for dividends reinvested    109 
Shares redeemed    (4,454) 
Net Increase (Decrease) in Shares Outstanding    26,119 
Class T     
Shares sold    20,990 
Shares issued for dividends reinvested    96 
Net Increase (Decrease) in Shares Outstanding    21,086 
 
See notes to financial statements.     

18

FINANCIAL HIGHLIGHTS

The following table describes the performance for each share class for the period from July 13, 2006 (commencement of operations) to May 31, 2007. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during the period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

        Class A    Class C    Class R    Class T 
        Shares    Shares    Shares    Shares 
Per Share Data ($):                 
Net asset value, beginning of period    12.50    12.50    12.50    12.50 
Investment Operations:                 
Investment income (loss)—net a    .02    (.07)    .05    (.01) 
Net realized and unrealized                 
gain (loss) on investments    4.36    4.34    4.37    4.36 
Total from Investment Operations    4.38    4.27    4.42    4.35 
Distributions:                 
Dividends from net realized                 
gain on investments    (.07)    (.07)    (.07)    (.07) 
Net asset value, end of period    16.81    16.70    16.85    16.78 
Total Return (%) b    35.12c    34.32c    35.44    34.88c 
Ratios/Supplemental Data (%):                 
Ratio of total expenses                 
to average net assets b    3.46    4.17    3.43    3.92 
Ratio of net expenses                 
to average net assets b    1.73    2.38    1.51    1.96 
Ratio of net investment income                 
(loss) to average net assets b    .17    (.46)    .36    (.10) 
Portfolio Turnover Rate b    140.52    140.52    140.52    140.52 
Net Assets, end of period ($ x 1,000)    15,694    986    440    354 
 
a    Based on average shares outstanding at each month end.             
b    Not annualized.                 
c    Exclusive of sales charge.                 
See notes to financial statements.                 

The Fund 19

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Emerging Markets Opportunity Fund (the “fund”) is a separate diversified series of Strategic Funds, Inc. (the “Company”) which is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified open-end management investment company and operates as a series company currently offering five series, including the fund, which commenced operations on July 13, 2006.The fund’s investment objective seeks long-term capital appreciation by investing in stocks of companies in emerging market countries.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. During the reporting period, the Manager was a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). WestLB Mellon Asset Management (USA) LLC (“WMAM US”) serves as the fund’s sub-investment adviser.

On July 1, 2007, Mellon Financial and The Bank of New York Company, Inc. merged, forming The Bank of New York Mellon Corporation. As part of this transaction, Dreyfus became a wholly-owned subsidiary of The Bank of New York Mellon Corporation.

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares. Effective June 30, 2007, the Distributor will be known as MBSC Securities Corporation. The fund is authorized to issue 100 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, 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 C shares are subject to a contingent deferred sales charge (“CDSC”) on Class C shares redeemed within one year of purchase. Class R shares are sold at net asset value per share only to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

20

The fund’s Board of Directors approved the redesignation of the fund’s Class R shares as Class I shares, effective June 1, 2007.The description of the eligibility requirements for Class I shares remains the same as it was for Class R shares.

As of May 31, 2007, MBC Investments Corp., an indirect subsidiary of Mellon Financial, held 341,623 of the outstanding Class A shares, 20,095 of the outstanding Class R shares and 20,096 of the outstanding Class C and Class T shares of the fund.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales 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. Registered open-end investment companies that are not traded on

The Fund 21

NOTES TO FINANCIAL STATEMENTS (continued)

an exchange are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

On September 20, 2006, the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

22

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.

(e) 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, if any, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

The Fund 23

NOTES TO FINANCIAL STATEMENTS (continued)

(f) 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.

On July 13, 2006, the FASB released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

At May 31, 2007, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $896,487 and unrealized appreciation $2,764,102.

The tax character of distributions paid to shareholders during the fiscal period ended May 31, 2007 were as follows: ordinary income $66,873.

During the period ended May 31, 2007, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign currency transactions, passive foreign investment companies and Indian capital gain taxes, the fund increased accumulated undistributed investment income-net by $28,820, decreased accumulated net realized gain (loss) on investments by $25,717 and decreased paid-in capital by $3,103. Net assets were not affected by this reclassification.

24

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 borrowing. During the period ended May 31, 2007, the fund did not borrow under the Facility.

NOTE 3—Management Fee, Sub-Investment Advisory Fee and 
Other Transactions With Affiliates: 

(a) Pursuant to a management agreement (“Agreement”) with Dreyfus, the management fee is computed at the annual rate of 1.25% of the value of the fund’s average daily net assets and is payable monthly. Dreyfus has contractually agreed to waive receipt of its fees and/or assume the expenses of the fund, until September 30, 2008, so that annual fund operating expenses (excluding Rule 12b-1 fees, shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) do not exceed 1.75% of the fund’s average daily net assets. The expense reimbursement, pursuant to the undertaking, amounted to $204,765 during the period ended May 31, 2007.

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and WMAM US, Dreyfus pays WMAM US an annual fee of .725% of the value of the fund’s average daily net assets, payable monthly.

During the period ended May 31, 2007, the Distributor retained $834 and $49 from commissions earned on sales of the fund’s Class A and Class T shares, respectively.

The Fund 25

NOTES TO FINANCIAL STATEMENTS (continued)

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class C and Class T shares pay the Distributor for distributing their shares at an annual rate of .75% of the value of the average daily net assets of Class C shares and .25% of the value of the average daily net assets of Class T shares. During the period ended May 31, 2007, Class C and Class T shares were charged $3,917 and $654, respectively, pursuant to the Plan.

(c) Under the Shareholder Services Plan, Class A, Class C and Class T shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class A, Class C and Class T shares 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 May 31, 2007, Class A, Class C and Class T shares were charged $23,829, $1,306 and $654, respectively, pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended May 31, 2007, the fund was charged $527 pursuant to the transfer agency agreement.

During the period ended May 31, 2007, the fund was charged $4,089 for services performed by the Chief Compliance Officer.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $18,122, Rule 12b-1 distribution plan fees $673, shareholder services

26

plan fees $3,526, chief compliance officer fees $3,748 and transfer agency per account fees $150, which are offset against an expense reimbursement currently in effect in the amount of $11,614.

(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) Pursuant to an exemptive order from the SEC, the fund may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by Dreyfus.

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 May 31, 2007, amounted to $30,016,768 and $16,657,679, 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

The Fund 27

NOTES TO FINANCIAL STATEMENTS (continued)

those dates. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract. The following summarizes open forward currency exchange contracts at May 31, 2007:

    Foreign            Unrealized 
Forward Currency    Currency            Appreciation 
Exchange Contracts    Amounts    Cost ($)    Value ($)    (Depreciation) ($) 
Purchases:                 
Hong Kong Dollar,                 
expiring 6/4/2007    139,903    17,914    17,917    3 
Malaysian Ringgit,                 
expiring 6/1/2007    122,895    36,169    36,161    (8) 
Sales:        Proceeds ($)         
Brazilian Real,                 
expiring 6/1/2007    42,418    21,916    22,033    (117) 
Hong Kong Dollar,                 
expiring 6/1/2007    209,497    26,840    26,830    10 
Total                (112) 

At May 31, 2007, the cost of investments for federal income tax purposes was $14,585,039; accordingly, accumulated net unrealized appreciation on investments was $2,764,067, consisting of $3,076,848 gross unrealized appreciation and $312,781 gross unrealized depreciation.

28

REPORT OF INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM 

Shareholders and Board of Directors 
Emerging Markets Opportunity Fund 

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Emerging Markets Opportunity Fund (one of the funds comprising Strategic Funds, Inc.) as of May 31, 2007, and the related statements of operations and changes in net assets and financial highlights for the period from July 13, 2006 (commencement of operations) through May 31, 2007.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31,2007 by correspondence with the custodian.We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Emerging Markets Opportunity Fund at May 31, 2007, and the results of its operations, the changes in its net assets and the financial highlights for the period from July, 13, 2007 (commencement of operations) through May 31, 2007, in conformity with U. S. generally accepted accounting principles.

New York, New York 
July 16, 2007 

The Fund 29

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 May 31, 2007:

—the total amount of taxes paid to foreign countries was $18,857.

—the total amount of income sourced from foreign countries was $173,845.

As required by federal tax law rules, shareholders will receive notification of their proportionate share of foreign taxes paid and foreign sourced income for the 2007 calendar year with Form 1099-DIV which will be mailed by January 31, 2008.The fund hereby designates 1.50% of the ordinary dividends during the fiscal year ended May 31, 2007 as qualifying for the corporate dividends received deduction. Also, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $66,873 represents the maximum amount that may be considered qualified dividend income.

Also, the fund designates $.0724 per share as a short-term capital gain distribution paid on December 29, 2006.

30

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (63) 
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
  • 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
  • Sunair Services Corporation, a provider of certain outdoor-related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 168 ———————

David W. Burke (71) 
Board Member (1994) 

Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee. 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 

No. of Portfolios for which Board Member Serves: 92 ———————

William Hodding Carter III (72) 
Board Member (1988) 

Principal Occupation During Past 5 Years: 
• Professor of Leadership & Public Policy, University of North Carolina, Chapel Hill 
(January 1, 2006-present) 
• President and Chief Executive Officer of the John S. and James L. Knight Foundation 
(February 1, 1998-February 1, 2006) 

Other Board Memberships and Affiliations:

  • The Century Foundation, Emeritus Director
  • The Enterprise Corporation of the Delta, Director

No. of Portfolios for which Board Member Serves: 28 ———————

Gordon J. Davis (65) 
Board Member (2006) 

Principal Occupation During Past 5 Years: 
• Partner in the law firm of LeBoeuf, Lamb, Greene & MacRae, LLP 
• President, Lincoln Center for the Performing Arts, Inc. (2001) 

Other Board Memberships and Affiliations:

  • Consolidated Edison, Inc., a utility company, Director
  • Phoenix Companies, Inc., a life insurance company, Director
  • Board Member/Trustee for several not-for-profit groups

No. of Portfolios for which Board Member Serves: 37

The Fund 31

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Joni Evans (65) 
Board Member (2006) 

Principal Occupation During Past 5 Years:

  • Principal, Joni Evans Ltd.
  • Senior Vice President of the William Morris Agency (2005)

No. of Portfolios for which Board Member Serves: 28 ———————

Ehud Houminer (66) 
Board Member (1994) 

Principal Occupation During Past 5 Years: 
• Executive-in-Residence at the Columbia Business School, Columbia University 

Other Board Memberships and Affiliations:

  • Avnet Inc., an electronics distributor, Director
  • International Advisory Board to the MBA Program School of Management, Ben Gurion University, Chairman

No. of Portfolios for which Board Member Serves: 69 ———————

Richard C. Leone (67) 
Board Member (1984) 

Principal Occupation During Past 5 Years:

  • President of The Century Foundation (formerly,The Twentieth Century Fund, Inc.), a tax exempt research foundation engaged in the study of economic, foreign policy and domestic issues

Other Board Memberships and Affiliations:

  • The American Prospect, Director
  • Center for American Progress, Director

No. of Portfolios for which Board Member Serves: 28 ———————

Hans C. Mautner (69) 
Board Member (1984) 

Principal Occupation During Past 5 Years:

  • President—International Division and an Advisory Director of Simon Property Group, a real estate investment company (1998-present)
  • Director and Vice Chairman of Simon Property Group (1998-2003)
  • Chairman and Chief Executive Officer of Simon Global Limited (1999-present)

Other Board Memberships and Affiliations:

  • Capital and Regional PLC, a British co-investing real estate asset manager, Director
  • Member - Board of Managers of: Mezzacappa Long/Short Fund LLC
    Mezzacappa Partners LLC

No. of Portfolios for which Board Member Serves: 28

32

Robin A. Melvin (43) 
Board Member (1995) 

Principal Occupation During Past 5 Years:

  • Director, Boisi Family Foundation, a private family foundation that supports youth-serving organizations that promote the self sufficiency of youth from disadvantaged circumstances

No. of Portfolios for which Board Member Serves: 28

———————

Burton N. Wallack (56) 
Board Member (2006) 

Principal Occupation During Past 5 Years:

• President and co-owner of Wallack Management Company, a real estate management company

No. of Portfolios for which Board Member Serves: 28

———————

John E. Zuccotti (69) 
Board Member (1984) 

Principal Occupation During Past 5 Years:

  • Chairman of Brookfield Financial Properties, Inc.
  • Senior Counsel of Weil, Gotshal & Manges, LLP
  • Chairman of the Real Estate Board of New York

Other Board Memberships and Affiliations:

  • Emigrant Savings Bank, Director
  • Wellpoint, Inc., Director
  • Visiting Nurse Service of New York, Director
  • Columbia University,Trustee
  • Doris Duke Charitable Foundation,Trustee

No. of Portfolios for which Board Member Serves: 28

———————

Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166.Additional information about the Board Members 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.

Arnold S. Hiatt, Emeritus Board Member

The Fund 33

OFFICERS OF THE FUND (Unaudited)

J. DAVID OFFICER, President since 
December 2006. 

Chief Operating Officer,Vice Chairman and a Director of the Manager, and an officer of 86 investment companies (comprised of 168 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since April 1998.

MARK N. JACOBS, Vice President since 
March 2000. 

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 61 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President 
and Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel and Assistant Secretary of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. She is 51 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. She is 44 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since February 1991.

ROBERT R. MULLERY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since October 1990.

34

JAMES WINDELS, Treasurer since 
November 2001. 

Director – Mutual Fund Accounting of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since April 1985.

ROBERT ROBOL, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer 
since December 2002. 

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer 
since December 2005. 

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 87 investment companies (comprised of 184 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance 
Officer since October 2004. 

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (87 investment companies, comprised of 184 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 50 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money 
Laundering Compliance Officer since 
September 2002. 

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 83 investment companies (comprised of 180 portfolios) managed by the Manager. He is 36 years old and has been an employee of the Distributor since October 1998.

The Fund 35

NOTES

For More Information

Telephone Call your financial representative or 1-800-554-4611

Mail    The Dreyfus Premier Family of Funds 
    144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

Item 2. Code of Ethics.

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. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

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

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $0 in 2006 and $39,466 in 2007.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2006 and $0 in 2007.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $0 in 2006 and $3,485 in 2007. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various

financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies (as applicable).

The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2006 and $0 in 2007.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $586,749 in 2006 and $1,302,603 in 2007.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.

Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. 
Item 9.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable. 
Item 10.    Submission of Matters to a Vote of Security Holders. 

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.

Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11. 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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)(1)    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. 
(a)(3)    Not applicable. 
(b)    Certification of principal executive and principal financial officers as required by Rule 30a-2(b) 
under the Investment Company Act of 1940. 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Strategic Funds, Inc.

By:    /s/ J. David Officer 
    J. David Officer 
    President 
 
Date:    July 23, 2007 
 
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/ J. David Officer 
    J. David Officer 
    President 
 
Date:    July 23, 2007 
 
By:    /s/ James Windels 
    James Windels 
    Treasurer 
 
Date:    July 23, 2007 
 
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) 

Exhibit (a)(1)