-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, asE/z/xVAMrUE+espY4jlXtQ67NoxLu/H4xiodXS4Isbp4WTbiZU29ha7EwlP5gP WpfCnDDjHDi0agHMI/52Tw== 0000030167-94-000002.txt : 19940208 0000030167-94-000002.hdr.sgml : 19940208 ACCESSION NUMBER: 0000030167-94-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19931130 FILED AS OF DATE: 19940207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS THIRD CENTURY FUND INC CENTRAL INDEX KEY: 0000030167 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 132691318 STATE OF INCORPORATION: NY FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 40 SEC FILE NUMBER: 811-02192 FILM NUMBER: 94504781 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: NEW YORK STATE: NY ZIP: 11556 BUSINESS PHONE: 2129226792 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 N-30D 1 ANNUAL REPORT The Dreyfus Third Century Fund, Inc. November 30, 1993 Broad Sector Allocation* [Exhibit A] Sector Allocations in the pie chart are broader groupings than are listed in the Report's Statement of Investments. Portfolio Compostion is subject to change at any time. Asset Allocation* Common Stock................................ 77.5% Cash Equivalents............................ 22.5 ------ 100.0% Ten Largest Holdings* Astra A Free................................ 3.9% Morgan (J.P.)............................... 3.0 Health Care & Retirement.................... 2.9 EMC......................................... 2.9 Merck & Co.................................. 2.7 Elan, A.D.S................................. 2.6 Intel....................................... 2.4 General Motors, Cl. E. ..................... 2.2 Sigma-Aldrich............................... 2.0 AFLAC....................................... 2.0 * As a percentage of Total Net Assets. President's Letter Dear Shareholder: The Dreyfus Third Century Fund returned 1.77% for the six months ended November 30, 1993,* underperforming the Dow Jones Industrial Average and the Standard & Poor's 500 Composite Stock Price Index which returned 5.89% and 4.00% respectively for the same period.** This period also saw an important change in the Dreyfus Third Century Fund's investment policies. On September 28, 1993, in response to the South African Parliamentary vote and Nelson Mandela's call to remove all economic sanctions, your Fund eliminated restrictions on investing in companies operating in South Africa or owning 10% or more of the voting securities of companies operating in South Africa. It is our hope that these new investment policies will encourage positive social change in South Africa. In addition, your Fund will now have the opportunity to invest, subject to the Fund's normal investment criteria, in financially promising companies which heretofore had been barred from the portfolio because of their South African ties. The Fund's total return continued to be impacted, during much of the period, by poor performance of healthcare stocks, albeit with a few exceptions, and other consumer stocks, including retailers, as well as most bank stocks. These are stock categories that are compatible with the Fund's social goals. At the same time, the S&P 500 and the Dow Jones Industrials have been propelled by the heavy cyclical component inherent in their stock list. Unfortunately, many of these cyclicals do not meet the Fund's social criteria. Some of the Fund's holdings in the healthcare area have been recovering, but not enough to offset the earlier underperformance. Stocks that performed well during the first half of the Fund's fiscal year included Intel, Oracle Systems, Micron Technology and Adaptec in the technology sector; Singer N.V., Morton International, Magma Power and Illinois Central in the cyclical sector; Shaw Industries, Lennar and Southwest Airlines in the consumer area; and J.P. Morgan, Alliance Capital Management L.P., Dean Witter, Discover & Co. and State Street Boston in the financial sector. Most healthcare stocks were adversely affected by the uncertainties created by healthcare reform proposals through much of the year. More recently, investors have been able to sort out likely beneficiaries, resulting in some significant recoveries. One example of the magnitude of this process can be seen in the price range of Medco Containment Services, a major holding of the Fund, in the amount of 375,000 shares. Unknowns about the possible effects of reform drove the stock price down from 39 to 24, only to benefit from a stock and cash purchase bid from Merck & Co., which caused the stock to rally to 40, up 67% from the low point. Elan Corp., a manufacturer of sustained release generic drugs, is another example of the emotional extremes created by fears of reform. The Fund held 320,000 shares of Elan based on the conviction that its products would help position the company as a beneficiary of reform trends because the higher efficacies of its unique formulations appear quite cost effective. Much like Medco Containment Services, Elan was sold down very hard, but since has recovered to sell at new all-time highs, ending the period at about $40 versus the Fund's book cost of $20 per share. The Fund has not been as fortunate in every case. For example, AMSCO International, a provider of sterilization equipment to hospitals, was caught in the middle of a costly start-up of several facilities to offer these services to hospitals. Reform created many additional problems for AMSCO International - of which the Fund held 150,000 shares - and the stock was sold at a significant loss. The Fund's manager anticipates further improvement in healthcare stocks as investors formulate their latest impressions. The Fund has added Columbia Healthcare, as well as continuing to hold its basic position in Health Care & Retirement which stood at approximately 800,000 shares at year-end. Currently, the Fund holds shares in approximately 100 companies with, in the opinion of the manager, attractive appreciation potential, including some emerging young companies. We believe that this list is well positioned to benefit from deve loping trends and should perform significantly better, over the long term, than the recently popular basic industry stocks. The Fund's manager will continue to add holdings in dynamic areas, especially during periods of valuation opportunities create d by market setbacks. While many investors are concerned that an improving economy will bring with it higher interest rates, the Fund's manager believes it might also bring a somewhat better consumer environment. We would like to thank you for your continued investment in the Fund and encourage you to write to us with any comments or observations you may have. Sincerely, Howard Stein Chairman of the Board January 10, 1994 New York, N.Y.
** Total return represents the change during the period in a hypothetical account with dividends reinvested. ** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of income dividends and, where applicable, capital gain distributions. Both the Dow Jones Industrial Average and the Standard & Poor's 500 Composite Stock Price Index are widely accepted unmanaged indexes of stock market performance. The Dreyfus Third Century Fund, Inc. Statement of Investments November 30, 1993 (Unaudited) Common Stocks--77.5% Shares Value ------------ ------------ Banking - 9.6% Banc One. ................................... 180,000 $ 6,727,500 Bank of New York. ........................... 135,000 7,492,500 First Union.................................. 150,000 6,093,750 Morgan (J.P.)................................ 215,000 15,238,125 Northern Trust............................... 70,000 2,660,000 State Street Boston.......................... 90,000 3,408,750 Wachovia..................................... 235,000 7,549,375 ------------ 49,170,000 ------------ Basic Industries - .6% Thermo Electron..............................(a) 75,000 2,878,125 ------------ Biotechnology - .2% Genetic Therapy..............................(a) 65,000 1,072,500 ------------ Capital Equipment - 1.9% Cooper Industries............................ 150,000 7,593,750 Greenwich Air Services....................... 40,000 365,000 Microsoft....................................(a) 10,000 800,000 Submicron Systems............................ 125,000 734,375 ------------ 9,493,125 ------------ Chemicals - 1.1% Morton International......................... 60,000 5,587,500 ------------ Computer Equipment - .4% Convex Computer (a).......................... 420,800 2,314,400 ------------ Computer Services - 3.7% General Motors, Cl. E ....................... 399,000 11,421,375 Informix.....................................(a) 424,800 7,752,600 ------------ 19,173,975 ------------ Computer Software/Services - .7% FTP Software................................. 17,300 419,525 Gupta........................................ 11,500 163,875 IMRS.........................................(a) 70,000 1,610,000 PeopleSoft...................................(a) 4,500 127,125 Santa Cruz Operation......................... 235,400 1,471,250 ------------ 3,791,775 ------------ Conglomerates - .3% Paramount Communications..................... 20,000 1,575,000 ------------ Construction - .5% Fluor........................................ 60,000 2,542,500 ------------ Consumer Cyclical - 1.0% Dollar General............................... 228,750 5,318,437 ------------ Consumer Durables - .1% Cobra Golf................................... 10,500 309,750 ------------ Consumer Growth Staples - .0% HealthCare COMPARE...........................(a) 10,000 215,000 ------------ Consumer Staples - 1.0% Coca-Cola.................................... 120,000 5,070,000 ------------ Distribution - 1.0% Graham-Field Health..........................(a) 363,000 1,633,500 Grainger (W.W.).............................. 50,000 2,925,000 ------------ 4,558,500 ------------ Drugs - 10.5% ALZA.........................................(a) 35,000 966,875 Astra A Free................................. 1,000,000 19,773,000 Elan, A.D.S..................................(a) 320,000 13,360,000 Elan (unit)..................................(b) 20,000 600,000 Forest Laboratories, Cl. A...................(a) 90,000 4,173,750 Genelabs Technologies........................(a) 277,778 1,093,751 Merck & Co................................... 402,702 13,792,544 ------------ 53,759,920 ------------ Electrical Equipment - .1% ANTEC........................................ 13,400 368,500 The Dreyfus Third Century Fund, Inc. Statement of Investments (continued) November 30, 1993 (Unaudited) Common Stocks (continued) Shares Value ------------ ------------ Engineering - 1.6% Jacobs Engineering Group.....................(a) 335,000 $ 8,333,125 ------------ Entertainment - .1% Discovery Zone............................... 14,000 325,500 ------------ Finance - .9% Continental Bank............................. 65,000 1,625,000 First Interstate Bancorp..................... 55,000 3,210,625 ------------ 4,835,625 ------------ Financial Services - 2.5% Alliance Capital Management L.P.............. 240,000 6,120,000 Dean Witter, Discover & Co................... 40,000 1,520,000 United Asset Management...................... 120,000 5,025,000 ------------ 12,665,000 ------------ Food/Restaurant - .7% PepsiCo...................................... 85,000 3,421,250 ------------ Foods - .0% Boston Chicken............................... 4,400 164,450 ------------ Gold Mining - 1.0% American Barrick Resources................... 160,000 4,260,000 Engelhard.................................... 36,250 870,000 ------------ 5,130,000 ------------ Health Care - 3.1% Health Care & Retirement.....................(a) 833,200 14,789,300 U.S. Physical Therapy........................(a) 122,500 1,301,562 ------------ 16,090,862 ------------ Health Services - .1% WellPoint Health Networks, Cl. A............. 17,000 476,000 ------------ Homebuilding - 1.3% Lennar....................................... 225,000 6,693,750 ------------ Insurance - 5.4% AFLAC........................................ 375,000 10,125,000 Allmerica Property & Casualty Cos............ 54,800 3,109,900 Allstate..................................... 89,300 2,634,350 Berkley (W.R.)............................... 50,000 1,812,500 First Colony................................. 194,000 4,971,250 Life USA Holdings............................(a) 30,000 502,500 National Western Life Insurance.............. 41,500 1,919,375 Penn-America Group........................... 50,000 393,750 Phoenix Re................................... 65,000 1,950,000 ------------ 27,418,625 ------------ Insurance/Property & Casualty - .2% Paul Revere.................................. 56,600 1,315,950 ------------ Machinery - .1% Duracraft.................................... 20,000 370,000 ------------ Machinery/Capital Goods - 1.2% Singer N.V................................... 159,900 5,956,275 ------------ Media/Entertainment - 1.1% International Cabletel....................... 31,250 765,625 Viacom, Cl. A. ..............................(a) 95,000 4,643,125 ------------ 5,408,750 ------------ Medical Equipment - .5% Medtronic.................................... 35,000 2,703,750 ------------ Medical Services - .2% Columbia Healthcare.......................... 30,000 870,000 ------------ Merchandising - 3.7% Dillard Department Stores, Cl. A............. 110,000 4,537,500 Price/Costco................................. 280,000 5,355,000 Seventh Generation. .........................(a,c,d) 57,000 307,800 Sysco........................................ 85,000 2,348,125 Wal-Mart Stores.............................. 220,000 6,297,500 ------------ 18,845,925 ------------ The Dreyfus Third Century Fund, Inc. Statement of Investments (continued) November 30, 1993 (Unaudited) Common Stocks (continued) Shares Value ------------ ------------ Metals/Miscellaneous - .2% Allegheny Ludlum............................. 50,000 $ 1,168,750 ------------ Miscellaneous - .3% Acclaim Entertainment........................(a) 60,000 1,470,000 ------------ Oil & Gas - .1% Cross Timbers Oil............................ 30,100 428,925 ------------ Paper & Paper Related - 1.2% Bemis........................................ 120,000 2,700,000 Sonoco Products.............................. 160,000 3,420,000 ------------ 6,120,000 ------------ Pollution Control - 1.6% BHA Group, Cl. A............................. 270,000 2,632,500 Betz Laboratories............................ 60,000 2,520,000 Vallen.......................................(a) 236,750 2,841,000 ------------ 7,993,500 ------------ Railroads - 1.6% Illinois Central............................. 140,000 4,637,500 Union Pacific................................ 55,000 3,492,500 ------------ 8,130,000 ------------ Real Estate/Investment Trust - .1% Chelsea GCA Realty........................... 28,000 749,000 ------------ Retail/Apparel - 1.4% Consolidated Stores..........................(a) 75,000 1,584,375 Gap.......................................... 50,000 2,000,000 Gymboree..................................... 2,500 106,250 PETsMART..................................... 17,500 498,750 United Retail Group..........................(a) 195,000 2,486,250 Urban Outfitters............................. 11,000 327,250 ------------ 7,002,875 ------------ Retail Trade/Specialty - .1% Big Entertainment............................ 65,000 430,625 ------------ Specialty Chemicals - 2.2% Crompton & Knowles........................... 45,000 945,000 Sigma-Aldrich................................ 220,000 10,340,000 ------------ 11,285,000 ------------ Storage/Warehousing - .6% Lukens....................................... 76,800 2,860,800 ------------ Technology - 6.1% Adaptec......................................(a) 245,000 8,115,625 Chipcom......................................(a) 60,000 2,655,000 Intel........................................ 195,000 11,992,500 Oracle Systems...............................(a) 160,000 5,060,000 Tseng Labs................................... 275,000 3,334,375 ------------ 31,157,500 ------------ Technology/Peripherals - 2.9% EMC..........................................(a) 460,000 14,605,000 ------------ Transportaion/Airlines - 1.8% Southwest Airlines........................... 262,500 9,121,875 ------------ Utilities/Telephone - .9% American Telephone & Telegraph............... 20,000 1,092,500 Southwestern Bell............................ 80,000 3,400,000 ------------ 4,492,500 ------------ TOTAL COMMON STOCKS (cost $329,264,211)....................... $395,240,194 ============ The Dreyfus Third Century Fund, Inc. Statement of Investments (continued) November 30, 1993 (Unaudited) Short-Term Investments - 22.1% Principal Amount Value ------------ ------------ U.S. Treasury Bills - 22.1% 2.911%, 12/16/1993........................... $ 4,233,000 $ 4,227,865 2.89%, 12/23/1993............................ 42,667,000 42,591,645 2.95%, 1/6/1994.............................. 6,059,000 6,041,124 3.04%, 1/20/1994............................. 26,008,000 25,898,180 3.03%, 2/3/1994.............................. 730,000 726,068 3.081%, 2/17/1994............................ 33,767,000 33,541,607 ------------ TOTAL SHORT-TERM INVESTMENTS (cost $113,026,489)....................... $113,026,489 ============ TOTAL INVESTMENTS (cost $442,290,700).................................................... 99.6% $508,266,683 ====== ============ CASH AND RECEIVABLES (NET)............................................................... .4% $ 1,956,118 ====== ============ NET ASSETS............................................................................... 100.0% $510,222,801 ====== ============
Notes to Statement of Investments: (a) Non-income producing. (b) Each unit consists of one share of Advanced Therapeutic Systems and one warrant to purchase one share of Elan, A.D.S.. (c) Investment in non-controlled affilates (cost $950,000) - see Note 1(c). (d) Security restricted as to public resale. Investments in restricted securities, with an aggregate value of $307,800, representing approximately .1% of net assets;
Percentage of Issuer Acquisition Date Purchase Price Net Assets Valuation* - ------ ---------------- -------------- ---------- --------------- Seventh Generation 9/26/90 $16.67 .1% 10% discount to market value - --------------- *The valuation of this security has been determined in good faith under the direction of the Board of Directors.
See independent accountants' review report and notes to financial statements.
The Dreyfus Third Century Fund, Inc. Statement of Assets and Liabilities November 30, 1993 (Unaudited) ASSETS: Investments in securities, at value (cost $442,290,700)-see statement........................................ $508,266,683 Cash............................................................................. 3,252,630 Receivable for investment securities sold........................................ 1,248,999 Dividends and interest receivable................................................ 412,822 Receivable for subscriptions to Common Stock..................................... 3,650 Prepaid expenses................................................................. 59,086 ------------ 513,243,870 LIABILITIES: Due to The Dreyfus Corporation................................................... $ 208,571 Due to Tiffany Capital Advisors, Inc. ........................................... 112,737 Payable for investment securities purchased...................................... 2,408,952 Payable for Common Stock redeemed................................................ 19,458 Accrued expenses................................................................. 271,351 3,021,069 ---------- ------------ NET ASSETS............................................................................... $510,222,801 ============ REPRESENTED BY: Paid-in capital.................................................................. $402,236,391 Accumulated undistributed investment income-net.................................. 2,070,184 Accumulated undistributed net realized gain on investments....................... 39,940,243 Accumulated net unrealized appreciation on investments-Note 3.................... 65,975,983 ------------ NET ASSETS at value applicable to 59,098,428 outstanding shares of Common Stock, equivalent to $8.63 per share (150 million shares of $.33 1/3 par value authorized)............................ $510,222,801 ============
See independent accountants' review report and notes to financial statements. The Dreyfus Third Century Fund, Inc.
Statement of Operations six months ended November 30, 1993 (Unaudited) INVESTMENT INCOME: Income: Cash dividends (net of $1,435 foreign taxes withheld at source).......... $2,278,180 Interest................................................................. 1,893,370 ---------- Total Income..................................................... $ 4,171,550 Expenses: Investment advisory fee-Note 2(a)........................................ 1,261,251 Sub-investment advisory fee-Note 2(a).................................... 686,251 Shareholder servicing costs-Note 2(b).................................... 803,705 Professional fees........................................................ 50,200 Custodian fees........................................................... 39,597 Directors' fees and expenses-Note 2(c)................................... 21,129 Registration fees........................................................ 19,237 Prospectus and shareholders' reports..................................... 13,967 Miscellaneous............................................................ 59,231 ---------- Total Expenses................................................... 2,954,568 ----------- INVESTMENT INCOME-NET............................................ 1,216,982 ----------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments-Note 3.......................................... 10,551,901 Net unrealized (depreciation) on investments for the period: Unaffiliated issuers..................................................... $(2,324,806) Affiliated issuers....................................................... (167,200) (2,492,006) ----------- ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.................. 8,059,895 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ 9,276,877 ===========
See independent accountants' review report and notes to financial statements.
The Dreyfus Third Century Fund, Inc. Statement of Changes in Net Assets Year Ended Six Months Ended May 31, November 30, 1993 1993 (Unaudited) ------------ ------------ OPERATIONS: Investment income-net............................................................ $ 2,338,779 $ 1,216,982 Net realized gain on investments................................................. 34,235,279 10,551,901 Net unrealized appreciation (depreciation) on investments for the period......... 11,273,164 (2,492,006) ------------ ------------ Net Increase In Net Assets Resulting From Operations..................... 47,847,222 9,276,877 ------------ ------------ DIVIDENDS TO SHAREHOLDERS FROM: Investment income-net............................................................ (2,772,024) --- Net realized gain on investments................................................. (3,388,031) --- ------------ ------------ Total Dividends.......................................................... (6,160,055) --- ------------ ------------ CAPITAL STOCK TRANSACTIONS: Net proceeds from shares sold.................................................... 247,614,777 69,661,880 Dividends reinvested............................................................. 5,916,878 --- Cost of shares redeemed.......................................................... (212,416,606) (95,050,948) ------------ ------------ Increase (Decrease) In Net Assets From Capital Stock Transactions........ 41,115,049 (25,389,068) ------------ ------------ Total Increase (Decrease) In Net Assets.......................... 82,802,216 (16,112,191) NET ASSETS: Beginning of period.............................................................. 443,532,776 526,334,992 ------------ ------------ End of period (including undistributed investment income-net: $853,202 and $2,070,184, respectively)................................... $526,334,992 $510,222,801 ============ ============ Shares Shares ------------ ------------ CAPITAL SHARE TRANSACTIONS: Shares sold...................................................................... 30,554,379 8,137,439 Shares issued for dividends reinvested........................................... 709,457 --- Shares redeemed.................................................................. (26,057,343) (11,103,373) ------------ ------------ Net Increase (Decrease) In Shares Outstanding............................ 5,206,493 (2,965,934) ============ ============ See independent accountants' review report and notes to financial statements.
The Dreyfus Third Century Fund, Inc. Financial Highlights Contained below is per share operating performance data for a share of Common Stock outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from information provided in the Fund's financial statements. Year Ended May 31, Six Months Ended ----------------------------------------------- November 30, 1993 PER SHARE DATA: 1989 1990 1991 1992 1993 (Unaudited) ----- ----- ----- ----- ----- Net asset value, beginning of period............... $5.76 $6.33 $7.01 $7.79 $7.80 $8.48 ----- ----- ----- ----- ----- ----- Investment Operations: Investment income-net.............................. .29 .21 .06 .05 .04 .02 Net realized and unrealized gain on investments.... .84 .84 1.07 .26 .74 .13 ----- ----- ----- ----- ----- ----- Total from Investment Operations........... 1.13 1.05 1.13 .31 .78 .15 ----- ----- ----- ----- ----- ----- Distributions: Dividends from investment income-net............... (.30) (.18) (.12) (.08) (.05) -- Dividends from net realized gain on investments.... (.26) (.19) (.23) (.22) (.05) -- ----- ----- ----- ----- ----- ----- Total Distributions (.56) (.37) (.35) (.30) (.10) -- ----- ----- ----- ----- ----- ----- Net asset value, end of period..................... $6.33 $7.01 $7.79 $7.80 $8.48 $8.63 ===== ===== ===== ===== ===== ===== TOTAL INVESTMENT RETURN 20.54% 17.26% 17.19% 3.92% 10.02% 1.77%* RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets............ 1.04% 1.05% 1.04% 1.08% 1.11% .57%* Ratio of net investment income to average net assets 4.71% 3.19% 1.10% .83% .48% .23%* Portfolio Turnover Rate............................ 52.82% 162.82% 72.57% 47.92% 67.30% 24.95%* Net Assets, end of period (000's Omitted).......... $168,579 $195,658 $266,126 $443,533 $526,335 $510,223 - ---------------- *Not Annualized.
See independent accountants' review report and notes to financial statements. The Dreyfus Third Century Fund, Inc. NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1-Significant Accounting Policies: The Fund is registered under the Investment Company Act of 1940 ("Act") as a diversified open-end management investment company. The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser. Tiffany Capital Advisors, Inc. ("Tiffany") serves as the Fund's sub- investment adviser. Dreyfus Service Corporation ("Distributor"), a wholly-owned subsidiary of Dreyfus, acts as the exclusive distributor of the Fund's shares, which are sold to the public without a sales charge. (a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market. 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. 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. Short-term investments are carried at amortized cost, which approximates value. Investments traded in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. (b) 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 on investments, is recognized on the accrual basis. (c) Affiliated issuers: Issuers in which the Fund held 5% or more of the outstanding voting securities are defined as "affiliated" in the Act. (d) Dividends to shareholders: Dividends are recorded on the ex- dividend date. Dividends from investment income-net and dividends from net realized capital gain 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. This may result in distributions that are in excess of net realized gains on a fiscal year basis. 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. (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 provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of taxable income sufficient to relieve it from all, or substantially all, Federal income taxes. NOTE 2-Investment Advisory Fee, Sub-Investment Advisory Fee and Other Transactions With Affiliates: (a) Fees payable by the Fund pursuant to the provisions of an Investment Advisory Agreement with Dreyfus and a Sub-Investment Advisory Agreement with Tiffany (together "Agreements") are payable monthly and computed on the average daily value of the Fund's net assets at the following annual rates: Total Net Assets Dreyfus Tiffany ---------------- ------- ------- The first $200 million............ .65 of 1% .10 of 1% $200 up to $300 million........... .40 of 1% .35 of 1% In excess of $300 million......... .375 of 1% .375 of 1% The Dreyfus Third Century Fund, Inc. NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) The Agreements further provide that if in any full fiscal year the aggregate expenses of the Fund, excluding taxes, interest on borrowings, brokerage and extraordinary expenses, exceed 1 1/2% of the average value of the Fund's net assets, the Fund may deduct from the fees to be paid to Dreyfus and Tiffany, or Dreyfus and Tiffany will bear, such excess, up to the amount of their respective fees, on a pro rata basis in proportion to the relative fees otherwise payable to each pursuant to the Agreements. There was no expense reimbursement for the six months ended November 30, 1993. (b) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses the Distributor an amount not to exceed an annual rate of .25 of 1% of the value of the Fund's average daily net assets for servicing shareholder accounts. 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. During the six months ended November 30, 1993, the Fund was charged an aggregate of $509,027 pursuant to the Shareholder Services Plan. (c) Certain officers and directors of the Fund are "affiliated persons," as defined in the Act, of the Investment Adviser and/or the Distributor. Each director who is not an "affiliated person" receives an annual fee of $10,000. (d) On December 5, 1993, Dreyfus entered into an Agreement and Plan of Merger providing for the merger of Dreyfus with a subsidiary of Mellon Bank Corporation ("Mellon"). Upon closing of the merger, it is planned that Dreyfus will retain its New York headquarters and will be a separate subsidiary within the Mellon organization. It is expected that the Dreyfus' management team and mutual fund managers will remain in place, and the Dreyfus mutual funds will be operated in the same manner as they are currently. Following the merger, Dreyfus will be either a direct or indirect subsidiary of Mellon, whose principal banking subsidiary is Mellon Bank, N.A. Closing of this merger is subject to a number of contingencies, including the receipt of certain regulatory approvals and the approvals of the stockholders of Dreyfus and of Mellon. The merger is expected to occur in mid-1994, but could occur significantly later. Because the merger will constitute an "assignment" of the Fund's Investment Advisory Agreement with Dreyfus under the Investment Company Act of 1940, and thus a termination of such Agreement, Dreyfus will seek prior approval from the Fund's Board and shareholders. NOTE 3-Securities Transactions: The following summarizes the aggregate amount of purchases and sales of investments securities, excluding short-term securities, during the six months ended November 30, 1993: Purchases Sales ------------ ------------ Unaffiliated issuers.......... $99,357,460 $122,227,441 Affiliated issuers............ ---- ---- ----------- ------------ $99,357,460 $122,227,441 =========== ============ At November 30, 1993, accumulated net unrealized appreciation on investments was $65,975,983, consisting of $85,554,431 gross unrealized appreciation and $19,578,448 gross unrealized depreciation. At November 30, 1993, 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 Dreyfus Third Century Fund, Inc. Review Report of Ernst & Young, Independent Accountants Shareholders and Board of Directors The Dreyfus Third Century Fund, Inc. We have reviewed the accompanying statement of assets and liabilities of The Dreyfus Third Century Fund, Inc., including the statement of investments, as of November 30, 1993, and the related statements of operations and changes in net assets and financial highlights for the six month period ended November 30, 1993. These financial statements and financial highlights are the responsibility of the Fund's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, which will be performed for the full year with the objective of expressing an opinion regarding the financial statements and financial highlights taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the interim financial statements and financial highlights referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the statement of changes in net assets for the year ended May 31, 1993 and financial highlights for each of the five years in the period ended May 31, 1993 and in our report dated July 8, 1993, we expressed an unqualified opinion on such statement of changes in net assets and financial highlights. (Ernst & Young Signature Logo) New York, New York January 7, 1994 (Dreyfus logo) Third Century Fund Semi-Annual Report November 30, 1993 (Dreyfus Lion Logo) The Dreyfus Third Century Fund, Inc. 144 Glenn Curtiss Boulevard Uniondale, NY 11556 Investment Adviser The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Sub-Investment Adviser Tiffany Capital Advisors, Inc. 15 Crow Canyon Court San Ramon, CA 94583 Distributor Dreyfus Service Corporation 200 Park Avenue New York, NY 10166 Custodian The Bank of New York 110 Washington Street New York, NY 10286 Transfer Agent & Dividend Disbursing Agent The Shareholder Services Group, Inc. P.O. Box 9671 Providence, RI 02940 Further information is contained in the Prospectus, which must precede or accompany this report. 035SA9311 Printed in U.S.A. printed on recycled paper EX-99 2 TABLE FOR GRAPH IN PRESIDENT'S LETTER The Dreyfus Third Century Fund, Inc. November 30, 1993 Exhibit A: Broad Sector Allocation* -------------------------------------------------------- | Cash Equivalents 22.5 % | | Financial 18.7 % | | Consumer Growth Staples 18.4 % | | Technology 13.8 % | | Other 6.7 % | | Basic Industries 6.3 % | | Capital Goods 5.4 % | | Consumer Cyclical 4.8 % | | Transportation 3.4 % | | -------------------------------------------------------- | -----END PRIVACY-ENHANCED MESSAGE-----