-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OuzFHR9pA1RDT/HuX9QGCcYE64GkTOgVMrC5fGTvZeBLgzfqlnaBvyYinkqpQeYy 2o5gpozP9KoHgyaRLoVlVg== 0000897469-04-000002.txt : 20040126 0000897469-04-000002.hdr.sgml : 20040126 20040126135924 ACCESSION NUMBER: 0000897469-04-000002 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031130 FILED AS OF DATE: 20040126 EFFECTIVENESS DATE: 20040126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS INTERNATIONAL FUNDS INC CENTRAL INDEX KEY: 0000897469 IRS NUMBER: 133718039 STATE OF INCORPORATION: MD FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07502 FILM NUMBER: 04543026 BUSINESS ADDRESS: STREET 1: 200 PARK AVENUE STREET 2: C/O DREYFUS CORPORATION CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226838 MAIL ADDRESS: STREET 1: DREYFUS CORP STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS INTERNATIONAL EQUITY FUND INC DATE OF NAME CHANGE: 19930212 N-CSR 1 coverpage.txt SEMI-ANNUAL REPORT 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 811-7502 DREYFUS INTERNATIONAL FUNDS, INC. (Exact name of Registrant as specified in charter) c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166 (Address of principal executive offices) (Zip code) Mark N. Jacobs, Esq. 200 Park Avenue New York, New York 10166 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 922-6000 Date of fiscal year end: 05/31 Date of reporting period: 11/30/03 FORM N-CSR Item 1. Reports to Stockholders. Dreyfus Premier Emerging Markets Fund SEMIANNUAL REPORT November 30, 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 Statement of Investments 13 Statement of Assets and Liabilities 14 Statement of Operations 15 Statement of Changes in Net Assets 17 Financial Highlights 22 Notes to Financial Statements FOR MORE INFORMATION - --------------------------------------------------------------------------- Back Cover The Fund Dreyfus Premier Emerging Markets Fund LETTER FROM THE CHAIRMAN Dear Shareholder: This semiannual report for Dreyfus Premier Emerging Markets Fund covers the six-month period from June 1, 2003, through November 30, 2003. Inside, you'll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund's portfolio manager, D. Kirk Henry. Recent reports of marked improvement in the growth of U.S. Gross Domestic Product suggest to us that the economy has started to turn the corner. Tax cuts and low mortgage rates have put cash in consumers' pockets, and corporations have started to increase spending. As U.S. growth has strengthened, so have the prospects for many international economies. As a result, emerging markets throughout the world rallied over the reporting period, posting gains in virtually every geographical region and capitalization range. 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 the Dreyfus funds designed to meet 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 December 15, 2003 2 DISCUSSION OF FUND PERFORMANCE D. Kirk Henry, Portfolio Manager How did Dreyfus Premier Emerging Markets Fund perform relative to its benchmark? For the six-month period ended November 30, 2003, the fund produced total returns of 28.96% for its Class A shares, 28.52% for its Class B shares, 28.48% for its Class C shares, 29.18% for its Class R shares and 28.79% for its Class T shares.(1) This compares with a 32.62% total return provided by the Morgan Stanley Capital International Emerging Markets Free Index (MSCI EMF Index), the fund's benchmark, for the same period.(2) We attribute the fund and market's overall performance to an improving global economy, which helped spark a sustained stock market rally in the emerging markets. While the fund participated in the rally to a substantial degree during the reporting period, its returns trailed the MSCI EMF Index due to cash exposure during a robust market rally, a higher weight in defensive consumer staples, and weaker performance in the financial sector. What is the fund's investment approach? The fund seeks long-term capital growth. To pursue this goal, the fund invests primarily in the stocks of companies organized, or with a majority of assets or businesses, in emerging market countries. "Emerging market" countries consist of all countries represented in the MSCI EMF Index or any other country Dreyfus believes has an emerging economy or market. Normally, the fund will not invest more than 25% of its total assets in the securities of companies in any single emerging market country. We use a value-oriented and research-driven approach to security selection within each market, investing in companies located in emerging market countries as represented in our benchmark, the MSCI EMF Index, or in any other country that we believe has an emerging market or economy. The Fund 3 DISCUSSION OF FUND PERFORMANCE (CONTINUED) When choosing stocks for the fund, we begin by conducting fundamental and quantitative research that focuses on individual companies rather than broad economic and industry trends. More specifically, we look for investment opportunities by focusing on three key factors: VALUE, or how a stock is valued relative to its intrinsic worth based on traditional measures; BUSINESS HEALTH, or a company's overall efficiency and profitability as measured by its return on assets and return on equity; and BUSINESS MOMENTUM, or the presence of a catalyst that will potentially trigger an increase in the stock's price in the near- or midterm. What other factors influenced the fund's performance? The emerging markets generally produced strong returns during the reporting period. After three years of economic weakness and falling stock prices, the U.S. economy began to show signs of sustainable improvement in the spring of 2003, and stock markets rallied worldwide in anticipation of better global economic conditions. Strong contributions to the fund's performance came from India, a country we have emphasized for some time now. The fund scored successes in all industry groups in India, most notably in consumer and industrial companies such as aluminum producer Hindalco and automobile manufacturers Tata Engineering & Locomotive and Mahindra & Mahindra Ltd. In Taiwan, our security selection strategy among information technology stocks enabled the fund to post higher returns than the MSCI EMF Index's information technology component, despite the fund's relatively light exposure to the group. Strong performers in this area included computer manufacturers and component suppliers such as Asustek Computer Inc. and Yageo Corp., and semiconductor company United Microelectronics Corp. The fund's energy stocks also performed relatively well due to strong demand for oil and gas. Winners included two holdings from India: gas distributor Gail India, GDR, and conglomerate Reliance Industries. The fund also received strong results from PetroChina, a Chinese petroleum company that we sold after its stock reached our price target. 4 Returns from consumer staples stocks proved relatively disappointing, primarily because investors favored more economically sensitive sectors during the early stages of the economic recovery. Several of the fund's financial holdings also hindered its relative performance, including Nedcor, a South African bank that struggled with complications after a recent merger, and LG Card, a South Korean credit card company that has experienced higher delinquency rates. What is the fund's current strategy? While the United States so far has served as the primary generator of increased consumption and production, developing nations also have benefited from the global economic turnaround. In this improving economic environment, we have continued to find companies that we believe are attractively priced and possess solid business fundamentals. For example, two recent additions to the fund are Banco Brandesco, a Brazilian bank that we expect to prosper amid a rebound in corporate and consumer loan growth, and Samsung Fire and Marine, an insurance company that is well positioned to benefit from rising premium rates and improved economic conditions in South Korea. In our view, such growing, attractively valued stocks in emerging markets are likely to reap the benefits of stronger global economic growth. December 15, 2003 (1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGES IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PART OF THE FUND'S RECENT PERFORMANCE IS ATTRIBUTABLE TO POSITIVE RETURNS FROM ITS INITIAL PUBLIC OFFERING (IPO) INVESTMENTS. THERE CAN BE NO GUARANTEE THAT IPOS WILL HAVE OR CONTINUE TO HAVE A POSITIVE EFFECT ON THE FUND'S PERFORMANCE. (2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF GROSS DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS FREE (MSCI EMF) 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 Fund 5 STATEMENT OF INVESTMENTS November 30, 2003 (Unaudited)
COMMON STOCKS--93.2% Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ ARGENTINA--.2% Petrobras Energia Participaciones, ADR 193,216 (a) 1,849,077 BRAZIL--5.7% Banco Itau, ADR 139,400 5,753,038 Companhia Brasileira de Distribuicao Grupo Pao de Acucar, ADR 109,800 2,437,560 Companhia de Saneamento Basico do Estado de Sao Paulo 143,970 7,120,309 Empresa Brasileira de Aeronautica, ADR 228,600 6,725,412 Petroleo Brasileiro, ADR 611,819 14,726,483 Tele Celular Sul Participacoes, ADR 231,050 3,223,148 Telecomunicacoes Brasileiras, ADR 148,720 5,294,432 Ultrapar Participacoes, ADR 201,100 2,171,880 47,452,262 CHINA--2.0% Huadian Power International, Cl. H 17,892,000 6,162,268 Qingling Motors, Cl. H 14,664,000 2,907,576 Sinopec Shanghai Petrochemical, Cl. H 5,062,000 1,661,958 Sinopec Yizheng Chemical Fibre, Cl. H 26,009,400 5,726,435 16,458,237 CROATIA--.7% Pliva d.d., GDR 376,800 (b) 5,953,440 CZECH REPUBLIC--.4% CEZ 566,600 2,892,377 Komercni Banka, GDR 2 58 2,892,435 EGYPT--.8% Commercial International Bank, GDR 449,600 (b) 3,084,256 Misr International Bank, GDR 594,075 (b) 1,069,335 Suez Cement, GDR 357,931 (a,b) 2,151,165 6,304,756 HONG KONG--4.3% Beijing Enterprises 306,000 360,496 CNOOC 427,000 879,641 China Mobile (Hong Kong) 6,023,000 17,487,080 China Mobile (Hong Kong), ADR 46,400 677,904 China Resources Enterprise 7,131,900 8,264,292 China Resources Power 2,072,000 766,982 6 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ HONG KONG (CONTINUED) Shanghai Industrial 3,136,900 7,189,167 Texwinca 495,000 363,277 35,988,839 HUNGARY--2.8% EGIS 13,588 508,194 Gedeon Richter 42,157 4,498,349 MOL Magyar Olaj-es Gazipari 259,380 7,305,229 Magyar Tavkozlesi 1,879,711 6,335,719 OTP Bank 406,900 (a) 4,990,441 23,637,932 INDIA--10.1% Bajaj Auto, GDR 97,400 (b) 2,043,160 Bharat Petroleum 472,050 (a) 3,390,440 Gail India, GDR 291,300 (b) 6,634,649 Hindalco Industries 180,556 4,529,432 Hindalco Industries, GDR 196,700 (b) 5,409,250 Hindustan Petroleum 572,000 4,430,237 ICICI Bank 609,595 2,876,875 ICICI Bank, ADR 389,300 5,177,690 ITC 392,840 7,104,677 Indian Hotels 342,691 2,688,381 Mahanagar Telephone Nigam 3,309,150 8,443,816 Mahanagar Telephone Nigam, ADR 171,521 926,213 Mahindra & Mahindra 335,000 2,383,311 Mahindra & Mahindra, GDR 259,500 (b) 1,959,225 NIIT 478,517 2,045,068 Reliance Industries 1,341,519 13,402,908 Satyam Computer Services 1,180,283 7,445,870 State Bank of India 248,500 2,432,627 State Bank of India, GDR 37,400 (b) 1,084,600 84,408,429 INDONESIA--2.4% PT Astra Agro Lestari 3,519,000 651,666 PT Gudang Garam 3,369,000 5,030,723 PT Indofood Sukses Makmur 51,102,500 4,055,754 PT Indonesian Satellite 3,586,500 4,849,471 The Fund 7 STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ INDONESIA (CONTINUED) PT Telekomunikasi Indonesia 7,387,000 5,341,570 19,929,184 ISRAEL--1.8% Bank Hapoalim 3,622,693 (a) 8,451,592 Check Point Software Technologies 244,434 (a) 4,316,705 Supersol 1,137,220 2,594,243 15,362,540 MALAYSIA--2.9% Commerce Asset 3,443,800 3,643,178 Genting 1,222,700 5,502,150 Malaysia International Shipping 1,757,400 5,503,437 Perusahaan Otomobil Nasional 823,000 1,851,750 Sime Darby 5,810,800 8,104,537 24,605,052 MEXICO--9.1% Apasco 291,800 2,210,800 Cemex 1,149,507 5,831,345 Cemex, ADR 44,700 1,129,569 Coca-Cola Femsa, ADR 462,800 9,464,260 Consorcio ARA 655,500 (a) 1,592,110 Controladora Comercial Mexicana 6,191,500 5,716,151 Desc, Ser. B 7,712,700 2,411,913 Grupo Aeroportuario del Sureste, ADR 53,000 866,550 Grupo Continental 2,636,850 3,752,369 Grupo Financiero BBVA Bancomer, Cl. B 7,901,500 (a) 6,906,177 Kimberly-Clark de Mexico, Cl. A 5,180,600 12,878,688 Organizacion Soriana, Cl. B 938,000 (a) 2,035,190 Telefonos de Mexico, ADR 656,270 21,715,974 76,511,096 PHILIPPINES--1.0% ABS-CBN Broadcasting 3,943,600 (a) 1,877,061 Bank of the Philippine Islands 3,165,390 (a) 2,444,756 Manila Electric, Cl. B 5,887,764 2,300,114 Philippine Long Distance Telephone 11,680 (a) 158,391 Philippine Long Distance Telephone, ADR 60,250 (a) 829,642 Universal Robina 7,937,160 826,862 8,436,826 8 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ POLAND--3.0% Bank Przemyslowo-Handlowy PBK 44,492 3,657,190 KGHM Polska Miedz 1,243,282 (a) 7,217,615 Polski Koncern Naftowy Orlen 1,057,726 6,330,597 Telekomunikacja Polska 2,255,223 8,110,229 25,315,631 RUSSIA--2.2% LUKOIL, ADR 189,600 16,385,907 YUKOS, ADR 35,400 1,620,755 18,006,662 SOUTH AFRICA--11.6% ABSA 817,868 5,223,025 Aveng 2,287,307 3,100,643 Bidvest 1,575,423 10,517,634 Illovo Sugar 1,872,979 1,878,556 Imperial 371,000 3,709,419 Metro Cash and Carry 12,490,293 (a) 4,462,916 Nampak 4,516,101 (a) 8,775,999 Nedcor 1,537,253 15,924,216 Sage 352,733 (a) 93,974 Sanlam 1,593,913 2,110,730 Sappi 352,214 4,523,419 Sasol 1,216,502 15,440,291 Shoprite 2,895,701 4,038,824 Steinhoff International 5,153,000 5,483,289 Tiger Brands 675,764 8,339,824 Tongaat-Hulett 789,608 3,798,929 97,421,688 SOUTH KOREA--15.7% CJ 146,400 7,003,036 Cheil Communications 31,680 4,335,394 Hyundai Development 147,220 1,371,710 Hyundai Mobis 20,450 901,668 Hyundai Motor 172,480 6,543,062 INI Steel, GDR 290,000 2,238,800 KT, ADR 563,050 10,838,713 KT&G, GDR 778,200 (b) 7,198,350 Kangwon Land 313,300 3,596,805 The Fund 9 STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH KOREA (CONTINUED) Kia Motors 517,250 4,518,219 Kookmin Bank 214,400 7,580,384 Kookmin Bank, ADR 130,334 4,626,857 Korea Electric Power 1,066,200 22,485,063 Korea Exchange Bank Credit Services 625,145 (a) 1,700,615 Korea Fine Chemical 44,996 520,315 LG Card 320,400 1,679,231 POSCO 78,770 9,370,750 POSCO, ADR 103,190 3,080,222 SK Telecom 24,200 3,905,661 SK Telecom, ADR 215,100 3,839,535 Samsung 917,340 7,707,778 Samsung Electro Mechanics 31,090 945,334 Samsung Electronics 29,410 11,376,939 Samsung Fire & Marine Insurance 77,960 4,306,430 131,670,871 TAIWAN--10.2% Accton Technology 4,310,260 3,067,037 Advanced Semiconductor Engineering 4,150,310 (a) 3,828,251 Asustek Computer 2,280,875 5,076,032 Asustek Computer, GDR 1,112,000 (b) 2,457,520 Chunghwa Telecom, ADR 463,900 6,814,691 Delta Electronics 3,595,000 4,726,662 Elan Microelectronics 3,217,653 2,892,590 First Financial 3,854,000 (a) 2,482,811 First Financial, GDR 80,000 (a,b) 1,020,000 Nan Ya Plastics 4,084,168 5,381,773 Nien Hsing Textile 1,250,000 1,251,830 President Chain Store 1,890,392 3,016,877 Quanta Computer 2,130,700 5,022,587 SinoPac 15,145,763 8,204,879 Standard Foods 2,816,984 713,526 Standard Foods, GDR 978 (b) 1,223 Taishin Financial 1,058,000 768,328 Taiwan Cellular 8,317,429 7,111,828 United Microelectronics 3,285,189 (a) 2,885,964 10 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ TAIWAN (CONTINUED) United Microelectronics, ADR 2,699,029 (a) 14,142,912 Yageo 11,356,200 (a) 4,788,559 85,655,880 THAILAND--2.7% Big C Supercenter 785,000 359,812 Charoen Pokphand Foods 8,300,000 952,135 Kasikornbank 4,942,800 (a) 5,663,948 Krung Thai Bank 20,600,000 4,463,118 PTT Exploration and Production 840,700 4,127,169 Siam Commercial Bank 5,819,000 (a) 5,866,368 Siam Makro 1,321,700 1,456,601 22,889,151 TURKEY--.6% Hurriyet Gazetecilik ve Matbaacilik 1,218,001,620 3,185,543 Tupras-Turkiye Petrol Rafinerileri 235,639,000 1,643,431 4,828,974 UNITED KINGDOM--3.0% Anglo American 677,034 14,277,547 Dimension Data 3,061,028 (a) 1,949,737 Old Mutual 5,119,633 8,482,944 24,710,228 TOTAL COMMON STOCKS (cost $618,503,527) 780,289,190 PREFERRED STOCKS--3.0% BRAZIL: Banco Bradesco 569,700 2,728,604 Companhia de Tecidos Norte de Minas 75,600 5,055,140 Companhia Energetica de Minas Gerais 545,017 8,630,375 Duratex 66,700 1,833,910 Telecomunicacoes de Sao Paulo 216,300 3,017,627 Telemar Norte Leste 69,600 1,364,358 Telemig Celular Participacoes 1,215,000 2,086,864 TOTAL PREFERRED STOCKS (cost $19,957,642) 24,716,878 The Fund 11 STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) Principal SHORT-TERM INVESTMENTS--1.6% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. TREASURY BILLS: ..88%, 12/4/2003 1,100,000 1,099,923 ..87%, 12/11/2003 2,902,000 2,901,303 ..88%, 12/18/2003 1,280,000 1,279,462 ..91%, 12/26/2003 7,205,000 7,200,389 ..90%, 1/2/2004 1,303,000 1,301,971 TOTAL SHORT-TERM INVESTMENTS (cost $13,783,090) 13,783,048 TOTAL INVESTMENTS (cost $652,244,259) 97.8% 818,789,116 CASH AND RECEIVABLES (NET) 2.2% 18,203,975 NET ASSETS 100.0% 836,993,091 (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 NOVEMBER 30, 2003, THESE SECURITIES AMOUNTED TO $40,066,173 OR 4.8% OF NET ASSETS.
SEE NOTES TO FINANCIAL STATEMENTS. 12 STATEMENT OF ASSETS AND LIABILITIES November 30, 2003 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments 652,244,259 818,789,116 Cash 2,593,705 Cash denominated in foreign currencies 13,381,573 13,316,570 Receivable for investment securities sold 4,777,677 Dividends receivable 1,314,522 Receivable for shares of Common Stock subscribed 598,705 Net unrealized appreciation on forward currency exchange contracts--Note 4 188 Prepaid expenses 51,067 841,441,550 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 1,030,348 Payable for investment securities purchased 2,218,433 Payable for shares of Common Stock redeemed 573,694 Accrued expenses 625,984 4,448,459 - -------------------------------------------------------------------------------- NET ASSETS ($) 836,993,091 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 697,508,309 Accumulated undistributed investment income--net 4,950,459 Accumulated net realized gain (loss) on investments (31,952,645) Accumulated net unrealized appreciation (depreciation) on investments and foreign currency transactions 166,486,968 - -------------------------------------------------------------------------------- NET ASSETS ($) 836,993,091
NET ASSET VALUE PER SHARE Class A Class B Class C Class R Class T - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets ($) 815,269,923 3,183,849 10,208,495 8,247,142 83,682 Shares Outstanding 51,569,852 203,054 650,245 520,275 5,328 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE ($) 15.81 15.68 15.70 15.85 15.71 SEE NOTES TO FINANCIAL STATEMENTS. The Fund 13
STATEMENT OF OPERATIONS Six Months Ended November 30, 2003 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends (net of $897,069 foreign taxes withheld at source) 7,760,016 Interest 88,188 TOTAL INCOME 7,848,204 EXPENSES: Management fee--Note 3(a) 4,420,654 Shareholder servicing costs--Note 3(c) 1,268,165 Custodian fees 674,495 Professional fees 84,851 Registration fees 61,563 Prospectus and shareholders' reports 45,290 Distribution fees--Note 3(b) 31,998 Directors' fees and expenses--Note 3(d) 29,254 Loan commitment fees--Note 2 4,290 Miscellaneous 10,562 TOTAL EXPENSES 6,631,122 INVESTMENT INCOME--NET 1,217,082 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments and foreign currency transactions 21,643,821 Net realized gain (loss) on forward currency exchange contracts (822,545) NET REALIZED GAIN (LOSS) 20,821,276 Net unrealized appreciation (depreciation) on investments and foreign currency transactions 152,876,751 NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 173,698,027 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 174,915,109 SEE NOTES TO FINANCIAL STATEMENTS. 14 STATEMENT OF CHANGES IN NET ASSETS Six Months Ended November 30, 2003 Year Ended (Unaudited) May 31, 2003(a) - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income--net 1,217,082 4,298,290 Net realized gain (loss) on investments 20,821,276 (27,618,868) Net unrealized appreciation (depreciation) on investments 152,876,751 (4,559,563) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 174,915,109 (27,880,141) - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income--net: Class A shares -- (3,998,965) Class B shares -- (353) Class C shares -- (464) Class R shares -- (115) Class T shares -- (9) TOTAL DIVIDENDS -- (3,999,906) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 229,980,125 536,127,145 Class B shares 2,240,760 494,712 Class C shares 8,248,820 2,170,389 Class R shares 4,165,888 2,556,507 Class T shares 69,741 4,532 Dividends reinvested: Class A shares -- 3,020,601 Class B shares -- 345 Class C shares -- 464 Class R shares -- 115 Class T shares -- 9 Cost of shares redeemed: Class A shares (128,245,261) (494,470,356) Class B shares (101,243) (7,647) Class C shares (1,238,564) (612,590) Class R shares (130,945) -- Redemption fee -- 229,971 INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 114,989,321 49,514,197 TOTAL INCREASE (DECREASE) IN NET ASSETS 289,904,430 17,634,150 - -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 547,088,661 529,454,511 END OF PERIOD 836,993,091 547,088,661 Undistributed investment income--net 4,950,459 3,733,377 The Fund 15 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Six Months Ended November 30, 2003 Year Ended (Unaudited) May 31, 2003(a) - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A Shares sold 16,436,894 47,542,979 Shares issued for dividends reinvested -- 273,110 Shares redeemed (9,105,790) (44,082,013) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 7,331,104 3,734,076 - -------------------------------------------------------------------------------- CLASS B Shares sold 165,736 44,645 Shares issued for dividends reinvested -- 31 Shares redeemed (6,645) (713) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 159,091 43,963 - -------------------------------------------------------------------------------- CLASS C Shares sold 596,528 197,123 Shares issued for dividends reinvested -- 42 Shares redeemed (87,607) (55,841) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 508,921 141,324 - -------------------------------------------------------------------------------- CLASS R Shares sold 304,976 223,784 Shares issued for dividends reinvested -- 10 Shares redeemed (8,495) -- NET INCREASE (DECREASE) IN SHARES OUTSTANDING 296,481 223,794 - -------------------------------------------------------------------------------- CLASS T Shares sold 4,928 399 Shares issued for dividends reinvested -- 1 NET INCREASE (DECREASE) IN SHARES OUTSTANDING 4,928 400 (A) THE FUND CHANGED TO A FIVE CLASS FUND ON NOVEMBER 15, 2002. THE EXISTING SHARES WERE REDESIGNATED CLASS A SHARES AND THE FUND COMMENCED OFFERING CLASS B, CLASS C, CLASS R AND CLASS T SHARES. SEE NOTES TO FINANCIAL STATEMENTS. 16 FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements.
Six Months Ended Year Ended May 31, November 30, 2003 ---------------------------------------------------------------- CLASS A SHARES (Unaudited) 2003(a) 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.25 13.07 11.65 13.61 12.55 11.18 Investment Operations: Investment income--net .03(b) .10(b) .25(b) .13(b) .22(b) .14 Net realized and unrealized gain (loss) on investments 3.53 (.83) 1.33 (.37) 1.95 1.33 Total from Investment Operations 3.56 (.73) 1.58 (.24) 2.17 1.47 Distributions: Dividends from investment income--net -- (.10) (.16) (.13) (.11) (.09) Dividends from net realized gain on investments -- -- -- (1.59) (1.01) (.02) Total Distributions -- (.10) (.16) (1.72) (1.12) (.11) Redemption fee added to paid-in capital -- .01 .00(c) .00(c) .01 .01 Net asset value, end of period 15.81 12.25 13.07 11.65 13.61 12.55 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) 28.96(d,e) (5.39)(d) 13.80 (.99) 16.54 13.56 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .93(e) 1.96 1.82 1.79 1.85 1.88 Ratio of net investment income to average net assets .18(e) .90 2.18 1.02 1.48 1.42 Portfolio Turnover Rate 20.67(e) 48.52 62.10 78.00 105.84 87.81 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 815,270 542,076 529,455 257,183 226,031 94,354 (A) THE FUND CHANGED TO A FIVE CLASS FUND ON NOVEMBER 15, 2002. THE EXISTING SHARES WERE REDESIGNATED CLASS A SHARES. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE. (D) EXCLUSIVE OF SALES CHARGE. (E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS. The Fund 17 FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2003 Year Ended CLASS B SHARES (Unaudited) May 31, 2003(a) - -------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 12.20 10.84 Investment Operations: Investment income (loss)--net(b) (.05) .10 Net realized and unrealized gain (loss) on investments 3.53 1.36 Total from Investment Operations 3.48 1.46 Distributions: Dividends from investment income--net -- (.10) Net asset value, end of period 15.68 12.20 - -------------------------------------------------------------------------------- TOTAL RETURN (%)(C,D) 28.52 13.56 - -------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets(d) 1.33 1.46 Ratio of net investment income (loss) to average net assets(d) (.37) 1.06 Portfolio Turnover Rate 20.67(d) 48.52 - -------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 3,184 536 (A) FROM NOVEMBER 15, 2002 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2003. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) EXCLUSIVE OF SALES CHARGE. (D) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. 18 Six Months Ended November 30, 2003 Year Ended CLASS C SHARES (Unaudited) May 31, 2003(a) - -------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 12.22 10.84 Investment Operations: Investment income (loss)--net(b) (.06) .11 Net realized and unrealized gain (loss) on investments 3.54 1.37 Total from Investment Operations 3.48 1.48 Distributions: Dividends from investment income--net -- (.10) Net asset value, end of period 15.70 12.22 - -------------------------------------------------------------------------------- TOTAL RETURN (%)(C,D) 28.48 13.75 - -------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets(d) 1.31 1.47 Ratio of net investment income (loss) to average net assets(d) (.38) 1.11 Portfolio Turnover Rate 20.67(d) 48.52 - -------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 10,208 1,726 (A) FROM NOVEMBER 15, 2002 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2003. (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 19 FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2003 Year Ended CLASS R SHARES (Unaudited) May 31, 2003(a) - -------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 12.27 10.84 Investment Operations: Investment income--net(b) .04 .14 Net realized and unrealized gain (loss) on investments 3.54 1.40 Total from Investment Operations 3.58 1.54 Distributions: Dividends from investment income--net -- (.11) Net asset value, end of period 15.85 12.27 - -------------------------------------------------------------------------------- TOTAL RETURN (%)(C) 29.18 14.32 - -------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets(c) .78 .89 Ratio of net investment income to average net assets(c) .27 1.61 Portfolio Turnover Rate 20.67(c) 48.52 - -------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 8,247 2,745 (A) FROM NOVEMBER 15, 2002 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2003. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. 20 Six Months Ended November 30, 2003 Year Ended CLASS T SHARES (Unaudited) May 31, 2003(a) - -------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 12.19 10.84 Investment Operations: Investment income (loss)--net(b) (.05) .06 Net realized and unrealized gain (loss) on investments 3.57 1.39 Total from Investment Operations 3.52 1.45 Distributions: Dividends from investment income--net -- (.10) Net asset value, end of period 15.71 12.19 - -------------------------------------------------------------------------------- TOTAL RETURN (%)(C,D) 28.79 13.47 - -------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets(d) 1.13 1.49 Ratio of net investment income (loss) to average net assets(d) (.32) .52 Portfolio Turnover Rate 20.67(d) 48.52 - -------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 84 5 (A) FROM NOVEMBER 15, 2002 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2003. (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 21 NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES: Dreyfus Premier Emerging Markets Fund (the "fund") is a separate non-diversified series of Dreyfus International Funds, Inc. (the "Company"), which is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company and operates as a series company that offers one series, 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, 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 100 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class B, Class C, Class R and Class T. Class A and Class T shares are subject to a sales charge imposed at the time of purchase. Class B shares are subject to a contingent deferred sales charge (" CDSC") imposed on Class B share redemptions made within six years of purchase and automatically convert to Class A shares after six years. Class C shares are subject to a CDSC 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. 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 22 sales price on the national securities market. The fund prices 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 Directors. 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 the 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 amount 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 received net earnings credits The Fund 23 NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) of $1,775 during the period ended November 30, 2003 based on available cash balances left on deposit. Income earned under this arrangement is included in interest income. (D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. 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. The fund has an unused capital loss carryover of $19,984,945 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to May 31, 2003. If not applied, $14,764,482 of the carryover expires in fiscal 2010 and $5,220,463 expires in fiscal 2011. The tax character of distributions paid to shareholders during the fiscal year ended May 31, 2003 was as follows: ordinary income $3,999,906. The tax character of current year distributions, if any, will be determined at the end of the current fiscal year. NOTE 2--BANK LINE OF CREDIT: The fund participates with other Dreyfus-managed funds in a $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 commit- 24 ment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. During the period ended November 30, 2003, the fund did not borrow under the Facility. NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES: (A) Pursuant to a management agreement with the Manager, 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. During the period ended November 30, 2003, the Distributor retained $75,821 and $184 from commissions earned on sales of the fund's Class A and Class T shares, respectively and $438 from contingent deferred sales charges on redemptions of the fund's Class C shares. (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 the annual rates 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 November 30, 2003, Class B, Class C and Class T shares were charged $8,117, $23,828 and $53, 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. The Fund 25 NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) During the period ended November 30, 2003, Class A, Class B, Class C and Class T shares were charged $865,922, $2,706, $7,942 and $53, 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 November 30, 2003, the fund was charged $98,848 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. (E) A 1% redemption fee was charged and retained by the fund on shares redeemed within thirty days following the date of issuance, including redemptions made through the use of the fund's exchange privilege until November 15, 2002. NOTE 4--SECURITIES TRANSACTIONS: (A) The aggregate amount of purchases and sales of investment securities, excluding short-term securities and forward currency exchange contracts, during the period ended November 30, 2003, amounted to $265,269,536 and $136,970,434, respectively. The fund enters into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings and to settle foreign currency transactions. When executing forward currency exchange contracts, the fund is obligated to buy or sell a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward currency exchange contracts, the fund would incur a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract decreases between those dates. With respect to purchase 26 of forward currency exchange contracts, the fund would incur a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract increases between those dates. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract. The following summarizes open forward currency exchange contracts at November 30, 2003:
Foreign Unrealized Forward Currency Currency Appreciation Exchange Contracts Amounts Proceeds ($) Value ($) (Depreciation) ($) - ------------------------------------------------------------------------------------------------------------------------------------ SALES: British Pound, expiring 12/1/2003 658,203 1,132,899 1,133,096 (197) Indian Rupee, expiring 12/1/2003 1,552,976 32,027 31,642 385 TOTAL 188
At November 30, 2003, accumulated net unrealized appreciation on investments was $166,544,857, consisting of $191,922,192 gross unrealized appreciation and $25,377,335 gross unrealized depreciation. At November 30, 2003, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). The Fund 27 NOTES For More Information Dreyfus Premier Emerging Markets 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) 2004 Dreyfus Service Corporation 327SA1103 Item 2. Code of Ethics. Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. [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) Not applicable. (a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (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 International Funds, Inc. By: /S/STEPHEN E. CANTER Stephen E. Canter President Date: January 23, 2004 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: January 23, 2004 By: /S/JAMES WINDELS James Windels Chief Financial Officer Date: January 23, 2004 EXHIBIT INDEX (a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT) (b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT) EX-99.CERT 3 sec-302.txt CERTIFICATION REQUIRED BY RULE-30A SECTION 302 CERTIFICATIONS I, Stephen E. Canter, certify that: 1. I have reviewed this report on Form N-CSR of Dreyfus International Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /S/STEPHEN E. CANTER Stephen E. Canter Chief Executive Officer Date: January 23, 2004 SECTION 302 CERTIFICATIONS I, James Windels, certify that: 1. I have reviewed this report on Form N-CSR of Dreyfus International Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /s/James Windels James Windels Chief Financial Officer Date: January 23, 2004 EX-99.906CERT 4 sec-906.txt CERTIFICATION REQUIRED BY SECTION 906 [EX-99.906CERT] Exhibit (b) SECTION 906 CERTIFICATIONS In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. By: /S/STEPHEN E. CANTER Stephen E. Canter Chief Executive Officer Date: January 23, 2004 By: /S/JAMES WINDELS James Windels Chief Financial Officer Date: January 23, 2004 This certificate is furnished pursuant to the requirements of Form N-CSR and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act of 1934. -----END PRIVACY-ENHANCED MESSAGE-----