-----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, LS6EjMpy3Xf0//i24jZQnA+1jWJNoUCpN0TX4jDONshL6WCvrTLkXic+mzS9vArc 81RGIo+Vyi0H4rQvzUzIbA== /in/edgar/work/20000801/0000030167-00-000009/0000030167-00-000009.txt : 20000921 0000030167-00-000009.hdr.sgml : 20000921 ACCESSION NUMBER: 0000030167-00-000009 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000531 FILED AS OF DATE: 20000801 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: MD FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-02192 FILM NUMBER: 683151 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: UNIONDALE STATE: NY ZIP: 11556-0144 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 0001.txt ANNUAL REPORT The Dreyfus Premier Third Century Fund, Inc. ANNUAL REPORT May 31, 2000 (reg.tm) The views expressed herein are current to the date of this report. These views and the composition of the fund's portfolio are subject to change at any time based on market and other conditions. * Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value Contents THE FUND - -------------------------------------------------- 2 Letter from the President 3 Discussion of Fund Performance 6 Fund Performance 8 Statement of Investments 11 Statement of Assets and Liabilities 12 Statement of Operations 13 Statement of Changes in Net Assets 16 Financial Highlights 18 Notes to Financial Statements 24 Report of Independent Auditors 25 Important Tax Information FOR MORE INFORMATION - --------------------------------------------------------------------------- Back Cover The Fund The Dreyfus Premier Third Century Fund, Inc. LETTER FROM THE PRESIDENT Dear Shareholder: We are pleased to present this annual report for The Dreyfus Premier Third Century Fund, Inc., covering the 12-month period from June 1, 1999 through May 31, 2000. Inside, you' ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund's portfolio managers, Paul A. Hilton and Maceo K. Sloan. The past 12 months have been highly volatile but generally rewarding for investors in the U.S. stock market. While the market's advance during most of 1999 was primarily led by technology and other growth stocks, these particular sectors of the stock market corrected substantially during the first five months of 2000. In contrast, small-cap stocks and value-oriented stocks languished during most of 1999, but began to show encouraging signs of strength in 2000. Higher interest rates represented the primary reason for this shift in market leadership. Faced with evidence that long-dormant inflationary pressures were building, the Federal Reserve Board raised short-term interest rates six times during the reporting period, for a total increase of 1.75 percentage points. Because higher interest rates have the potential to erode the earnings of growth companies, many investors turned their attention from highly valued "new economy" growth stocks to more reasonably priced "old economy" value stocks. We appreciate your confidence over the past year, and we look forward to your continued participation in The Dreyfus Premier Third Century Fund, Inc. Sincerely, Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation June 15, 2000 DISCUSSION OF FUND PERFORMANCE Paul A. Hilton and Maceo K. Sloan, Portfolio Managers How did The Dreyfus Premier Third Century Fund, Inc. perform relative to its benchmark? For the 12-month period ended May 31, 2000, The Dreyfus Premier Third Century Fund, Inc. Class Z shares produced a total return of 20.91%.(1) In contrast, the fund' s benchmark, the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index") produced a total return of 10.47% for the same period.(2) The public offering of the fund's Class A, B, C, R and T shares commenced on August 31, 1999. From August 31, 1999 to May 31, 2000 the fund produced a total return of 14.90% for Class A shares, 14.34% for Class B shares, 14.34% for Class C shares, 15.30% for Class R shares, and 14.14% for Class T shares. We attribute the fund's strong performance to our emphasis on technology stocks, a market sector that performed exceptionally well during most of the reporting period, and an area in which we made good choices in our individual stock selection. In addition, our holdings in the financial and, to a lesser degree, the healthcare sectors also helped drive performance. What is the fund's investment approach? The fund seeks to provide capital growth, with current income as a secondary objective. The fund looks for growth-oriented companies that generally exhibit three characteristics: improving profitability measurements, a pattern of consistent earnings and reasonable prices. To pursue these goals, the fund invests primarily in the common stocks of companies that, in the opinion of the fund's management, meet traditional investment standards while simultaneously conducting their businesses in a manner that contributes to the enhancement of the quality of life in America. The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) What other factors influenced the fund's performance? Three primary factors influenced the fund's performance over the past year: heightened volatility within the stock market, specifically within the technology sector; continued strength of the U.S. economy; and the series of six short-term interest-rate hikes -- for a total increase of 1.75 percentage points - -- initiated by the Federal Reserve Board in an attempt to slow economic growth and forestall the buildup of inflationary pressures. The uncertainty caused by these interest-rate hikes created volatility for the financial markets and the fund. From the beginning of the reporting period until mid-March 2000, the U.S. stock market advanced sharply, driven primarily by gains within the technology sector, amidst considerable volatility. The fund benefited from maintaining an above-average exposure to this sector. By mid-March, however, that trend had reversed itself when many technology stocks, especially those related to the Internet, quickly fell out of favor. In response, we trimmed our technology exposure, choosing instead to deploy those assets primarily to diversified financial services companies. That move proved beneficial for the fund. Already a significant contributor to the fund's overall performance, we concentrated our financial holdings in global, diversified financial services companies that we believed were less likely to be affected by rising interest rates. Examples include Citigroup, American International Group and American Express, a firm that includes three divisions: a money management arm, an issuer of credit cards, and a travel company. What is the fund's current strategy? We have continued to concentrate on financial companies that have global subdivisions and franchises. As the U.S. economy continues to prosper, we are optimistic that companies in this area can also continue to grow. In addition, we have begun to increase our exposure to health care companies. In our view, many of these companies are very reasonably valued and offer predictable and consistent earnings. Can you give us an update on the fund's socially responsible investing activities? Over the past six months, fund management has hosted two meetings with the management of Coca-Cola in an effort to encourage them to increase the amount of recycled content polyethylene terepthalate (PET) in their plastic soft drink containers. While recycled content in aluminum beverage containers and glass bottles is roughly about 50% and 25%, respectively, currently there is almost no recycled content in most plastic bottles. We are very pleased to inform shareholders that Coca-Cola is working toward a new goal of increasing the amount of recycled PET to 10% in one-quarter of the bottles they produce this year. Coca-Cola is the first soft drink company to make such an effort across their complete product line. Currently, the company spends over $2 billion annually on recycled content materials in the U.S. alone and over $5 billion worldwide. June 15, 2000 (1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID, AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. ON AUGUST 31, 1999, THE FUND ADOPTED A MULTICLASS STRUCTURE. EXISTING FUND SHARES WERE DESIGNATED AS CLASS Z SHARES AND CLASS Z SHARES WERE CLOSED TO NEW INVESTORS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. (2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE. The Fund FUND PERFORMANCE Comparison of change in value of $10,000 investment in The Dreyfus Premier Third Century Fund, Inc. Class Z shares and the Standard & Poor's 500 Composite Stock Price Index ((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS Z SHARES OF THE DREYFUS PREMIER THIRD CENTURY FUND, INC. ON 3/29/72 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX ON THAT DATE. ON AUGUST 31, 1999, THE FUND ADOPTED A MULTI-CLASS STRUCTURE. EXISTING FUND SHARES WERE DESIGNATED AS CLASS Z SHARES AND CLASS Z SHARES WERE CLOSED TO NEW INVESTORS. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 3/31/72 IS USED AS THE BEGINNING VALUE ON 3/29/72. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS A, CLASS B, CLASS C, CLASS R AND CLASS T SHARES WILL VARY FROM THE PERFORMANCE OF CLASS Z SHARES SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES. THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE FEES AND EXPENSES OF CLASS Z SHARES. THE DREYFUS PREMIER THIRD CENTURY FUND, INC. PRIMARILY SEEKS CAPITAL GROWTH THROUGH INVESTMENT IN COMMON STOCKS OF COMPANIES THAT, IN THE OPINION OF THE FUND'S MANAGEMENT, NOT ONLY MEET TRADITIONAL INVESTMENT STANDARDS, BUT ALSO SHOW EVIDENCE THAT THEY CONDUCT THEIR BUSINESS IN A MANNER THAT CONTRIBUTES TO THE ENHANCEMENT OF THE QUALITY OF LIFE IN AMERICA. CURRENT INCOME IS A SECONDARY GOAL. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF OVERALL STOCK MARKET PERFORMANCE WHICH DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES AND IS NOT SUBJECT TO THE SAME SOCIALLY RESPONSIBLE INVESTMENT CRITERIA AS THE DREYFUS PREMIER THIRD CENTURY FUND, INC. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT. Average Annual Total Returns AS OF 5/31/00 Inception From Date 1 Year 5 Years 10 Years Inception - ------------------------------------------------------------------------------------------------------------------------------------ CLASS Z SHARES 3/29/72 20.91% 25.56% 16.61% 13.81% - ------------------------------------------------------------------------------------------------------------------------------------ Actual Aggregate Total Returns AS OF 5/31/00 Inception From Date 1 Year 5 Years 10 Years Inception - ------------------------------------------------------------------------------------------------------------------------------------ CLASS A SHARES WITH SALES CHARGE (5.75%) 8/31/99 -- -- -- 8.32% WITHOUT SALES CHARGE 8/31/99 -- -- -- 14.90% CLASS B SHARES WITH REDEMPTION((+)) 8/31/99 -- -- -- 10.34% WITHOUT REDEMPTION 8/31/99 -- -- -- 14.34% CLASS C SHARES WITH REDEMPTION((+)(+)) 8/31/99 -- -- -- 13.34% WITHOUT REDEMPTION 8/31/99 -- -- -- 14.34% CLASS R SHARES 8/31/99 -- -- -- 15.30% CLASS T SHARES WITH SALES CHARGE (4.5%) 8/31/99 -- -- -- 8.99% WITHOUT SALES CHARGE 8/31/99 -- -- -- 14.14% PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. ((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS A SHARES. ((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1% FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund STATEMENT OF INVESTMENTS May 31, 2000 COMMON STOCKS--98.8% Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ COMMERCIAL SERVICES--1.1% Omnicom Group 184,000 15,444,500 CONSUMER NON-DURABLES--3.6% Clorox 398,200 15,778,675 Coca-Cola 430,000 22,951,250 Kimberly-Clark 183,000 11,071,500 49,801,425 CONSUMER SERVICES--1.6% Time Warner 291,600 23,018,175 ELECTRONIC TECHNOLOGY--21.8% Applied Materials 105,000 (a) 8,767,500 Cisco Systems 874,200 (a) 49,774,762 Cree 100,200 (a) 12,172,734 EMC 262,000 (a) 30,473,875 International Business Machines 420,700 45,146,369 Lexmark International Group, Cl. A 180,300 (a) 12,575,925 Nokia, ADS 430,400 22,380,800 Nortel Networks 501,000 27,210,586 Sanmina 160,000 (a) 10,180,000 Solectron 490,000 (a) 16,200,625 Sun Microsystems 428,700 (a) 32,849,138 Tellabs 373,700 (a) 24,267,144 Vishay Intertechnology 164,000 (a) 11,603,000 303,602,458 ENERGY MINERALS--2.1% BP Amoco, ADS 544,600 29,612,625 FINANCE--18.6% AFLAC 330,000 17,056,875 American Express 467,700 25,168,106 American International Group 308,062 34,676,229 Capital One Financial 175,600 8,297,100 Citigroup 397,050 24,691,547 Fannie Mae 750,700 45,135,838 Marsh & McLennan Cos. 193,300 21,275,081 Merrill Lynch 310,000 30,573,750 Providian Financial 205,000 18,232,188 State Street 183,800 20,493,700 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCE (CONTINUED) Wells Fargo 310,000 14,027,500 259,627,914 HEALTH SERVICES--1.4% Cardinal Health 301,000 19,527,375 HEALTH TECHNOLOGY--14.8% Amgen 483,400 (a) 30,756,325 Guidant 382,000 (a) 19,338,750 Johnson & Johnson 279,000 24,970,500 Merck & Co. 634,000 47,312,250 Pfizer 928,500 41,376,281 Schering-Plough 872,500 42,207,188 205,961,294 INDUSTRIAL SERVICES--1.3% Halliburton 362,000 18,462,000 PROCESS INDUSTRIES--1.4% Avery Dennison 140,400 8,599,500 Ecolab 298,000 11,398,500 19,998,000 PRODUCER MANUFACTURING--3.1% Miller (Herman) 365,000 9,855,000 Minnesota Mining & Manufacturing 189,600 16,258,200 Tyco International 362,000 17,036,625 43,149,825 RETAIL TRADE--6.3% Dollar General 345,000 6,037,500 Gap 382,100 13,397,381 Home Depot 582,250 28,421,078 Safeway 310,600 (a) 14,326,425 Wal-Mart Stores 448,000 25,816,000 87,998,384 SEMICONDUCTORS--5.0% Altera 130,000 (a) 11,163,750 Intel 255,000 31,795,313 Linear Technology 444,800 26,271,000 69,230,063 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY SERVICES--7.6% America Online 312,400 (a) 16,557,200 Microsoft 600,000 (a) 37,537,500 Oracle 717,000 (a) 51,534,375 105,629,075 UTILITIES--9.1% AES 203,300 (a) 17,737,925 AT&T - Liberty Media Group, Cl. A 585,000 (a) 25,922,812 Bell Atlantic 318,000 16,814,250 Broadwing 150,000 3,571,875 Calpine 90,000 (a) 9,534,375 Global Crossing 258,000 (a) 6,466,125 Vodafone AirTouch, ADR 507,750 23,261,297 WorldCom 608,845 (a) 22,907,793 126,216,452 TOTAL COMMON STOCKS (cost $917,124,701) 1,377,279,565 - ------------------------------------------------------------------------------------------------------------------------------------ Principal SHORT-TERM INVESTMENTS--1.9% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT--.0% Self Help Credit Union, 5.59%, 6/21/2000 100,000 100,000 U.S.TREASURY BILLS--1.9% 5.66%, 7/13/2000 1,012,000 1,006,161 5.68%, 8/3/2000 2,821,000 2,795,132 5.77%, 8/17/2000 5,658,000 5,592,367 5.47%, 8/31/2000 7,910,000 7,800,367 5.79%, 9/14/2000 9,349,000 9,196,237 26,390,264 TOTAL SHORT-TERM INVESTMENTS (cost $26,477,995) 26,490,264 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $943,602,696) 100.7% 1,403,769,829 LIABILITIES, LESS CASH AND RECEIVABLES (.7%) (9,738,066) NET ASSETS 100.0% 1,394,031,763 (A) NON-INCOME PRODUCING. SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES May 31, 2000 Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments 943,602,696 1,403,769,82 Cash 86,732 Receivable for investment securities sold 10,725,192 Receivable for shares of Common Stock subscribed 901,900 Dividends and interest receivable 847,767 Prepaid expenses 70,628 1,416,402,048 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 1,043,194 Payable for investment securities purchased 20,064,738 Payable for shares of Common Stock redeemed 892,618 Accrued expenses 369,735 22,370,285 - -------------------------------------------------------------------------------- NET ASSETS ($) 1,394,031,763 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 877,602,538 Accumulated undistributed investment income--net 8,215,512 Accumulated net realized gain (loss) on investments 48,046,580 Accumulated net unrealized appreciation (depreciation) on investments--Note 4 460,167,133 - -------------------------------------------------------------------------------- NET ASSETS ($) 1,394,031,763 NET ASSET VALUE PER SHARE Class A Class B Class C Class R Class T Class Z - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets ($) 10,998,539 20,812,038 5,234,304 45,640,853 456,431 1,310,889,598 Shares Outstanding 788,208 1,499,310 376,988 3,260,457 32,955 93,622,688 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value Per Share ($) 13.95 13.88 13.88 14.00 13.85 14.00 SEE NOTES TO FINANCIAL STATEMENTS.
The Fund STATEMENT OF OPERATIONS Year Ended May 31, 2000 - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends (net of $43,007 foreign taxes withheld at source) 19,745,291 Interest 962,959 TOTAL INCOME 20,708,250 EXPENSES: Investment advisory fee--Note 3(a) 9,708,257 Shareholder servicing costs--Note 3(c) 2,247,137 Prospectus and shareholders' reports 171,037 Registration fees 140,272 Custodian fees--Note 3(c) 91,659 Professional fees 77,230 Distribution fees--Note 3(b) 58,264 Directors' fees and expenses--Note 3(d) 35,751 Interest expense--Note 2 20,803 Loan commitment fees--Note 2 11,205 Miscellaneous 16,129 TOTAL EXPENSES 12,577,744 INVESTMENT INCOME--NET 8,130,506 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments 64,954,708 Net unrealized appreciation (depreciation) on investments 161,776,525 NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 226,731,233 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 234,861,739 SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF CHANGES IN NET ASSETS Year Ended May 31, ----------------------------------- 2000(a) 1999 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income (loss)--net 8,130,506 (1,067,941) Net realized gain (loss) on investments 64,954,708 114,693,454 Net unrealized appreciation (depreciation) on investments 161,776,525 66,921,091 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 234,861,739 180,546,604 - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Net realized gain on investments: Class A shares (154,452) -- Class B shares (214,182) -- Class C shares (110,471) -- Class R shares (3,664) -- Class T shares (2,579) -- Class Z shares (118,345,823) (105,500,411) TOTAL DIVIDENDS (118,831,171) (105,500,411) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 19,154,469 -- Class B shares 21,710,010 -- Class C shares 5,605,138 -- Class R shares 48,544,845 -- Class T shares 482,573 -- Class Z shares 616,815,662 731,491,242 Dividends reinvested: Class A shares 140,247 -- Class B shares 198,885 -- Class C shares 79,861 -- Class R shares 3,664 -- Class T shares 2,579 -- Class Z shares 114,411,113 100,555,806 The Fund STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Year Ended May 31, ------------------------------------ 2000(a) 1999 - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($) (CONTINUED): Cost of shares redeemed: Class A shares (8,229,982) -- Class B shares (773,470) -- Class C shares (377,013) -- Class R shares (2,302,973) -- Class T shares (15,731) -- Class Z shares (667,638,635) (688,590,998) INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 147,811,242 143,456,050 TOTAL INCREASE (DECREASE) IN NET ASSETS 263,841,810 218,502,243 - -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 1,130,189,953 911,687,710 END OF PERIOD 1,394,031,763 1,130,189,953 Undistributed investment income--net 8,215,512 85,006 (A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING SHARES WERE REDESIGNATED CLASS Z SHARES. SEE NOTES TO FINANCIAL STATEMENTS. Year Ended May 31, ----------------------------------- CAPITAL SHARE TRANSACTIONS: 2000(a) 1999 - -------------------------------------------------------------------------------- CLASS A(B) Shares sold 1,360,990 -- Shares issued for dividends reinvested 10,274 -- Shares redeemed (583,056) -- NET INCREASE (DECREASE) IN SHARES OUTSTANDING 788,208 -- - -------------------------------------------------------------------------------- CLASS B(B) Shares sold 1,539,552 -- Shares issued for dividends reinvested 14,592 -- Shares redeemed (54,834) -- NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,499,310 -- - -------------------------------------------------------------------------------- CLASS C Shares sold 398,017 -- Shares issued for dividends reinvested 5,859 -- Shares redeemed (26,888) -- NET INCREASE (DECREASE) IN SHARES OUTSTANDING 376,988 -- - -------------------------------------------------------------------------------- CLASS R Shares sold 3,420,654 -- Shares issued for dividends reinvested 268 -- Shares redeemed (160,465) -- NET INCREASE (DECREASE) IN SHARES OUTSTANDING 3,260,457 -- - -------------------------------------------------------------------------------- CLASS T Shares sold 33,860 -- Shares issued for dividends reinvested 190 -- Shares redeemed (1,095) -- NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,955 -- - -------------------------------------------------------------------------------- CLASS Z Shares sold 44,379,776 59,336,041 Shares issued for dividends reinvested 8,363,394 8,565,231 Shares redeemed (47,975,462) (56,431,517) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 4,767,708 11,469,755 (A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING SHARES WERE REDESIGNATED CLASS Z SHARES. (B) DURING THE PERIOD ENDED MAY 31, 2000, 33,920 CLASS B SHARES REPRESENTING $485,578, WERE AUTOMATICALLY CONVERTED TO 33,770 CLASS A SHARES. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the period indicated. All information (excluding portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements. Year Ended May 31, 2000(a) -------------------------------------------------------------------- Class A Class B Class C Class R Class T - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 13.34 13.34 13.34 13.34 13.34 Investment Operations: Investment income--net(b) .20 .15 .11 .26 .20 Net realized and unrealized gain (loss) on investments 1.76 1.74 1.78 1.75 1.66 Total from Investment Operations 1.96 1.89 1.89 2.01 1.86 Distributions: Dividends from net realized gain on investments (1.35) (1.35) (1.35) (1.35) (1.35) Net asset value, end of period 13.95 13.88 13.88 14.00 13.85 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) 14.90(c) 14.34(c) 14.34(c) 15.30 14.14(c) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets(d) 1.02 1.55 1.54 .75 1.21 Ratio of net investment income to average net assets(d) 1.43 1.07 .77 1.69 1.40 Portfolio Turnover Rate 60.20 60.20 60.20 60.20 60.20 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 10,999 20,812 5,234 45,641 456 (A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) EXCLUSIVE OF SALES CHARGE. (D) NOT ANNUALIZED SEE NOTES TO FINANCIAL STATEMENTS. Year Ended May 31, -------------------------------------------------------------------- CLASS Z SHARES 2000(a) 1999 1998 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.72 11.78 10.01 9.25 7.45 Investment Operations: Investment income (loss)--net .08(b) (.01) .01 .02 .03 Net realized and unrealized gain (loss) on investments 2.55 2.29 2.68 2.16 2.39 Total from Investment Operations 2.63 2.28 2.69 2.18 2.42 Distributions: Dividends from investment income--net -- -- (.02) (.02) (.05) Dividends from net realized gain on investments (1.35) (1.34) (.90) (1.40) (.57) Total Distributions (1.35) (1.34) (.92) (1.42) (.62) Net asset value, end of period 14.00 12.72 11.78 10.01 9.25 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) 20.91 20.30 27.76 25.70 33.63 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .96 .96 .97 1.03 1.11 Ratio of net investment income (loss) to average net assets .60 (.11) .07 .22 .36 Portfolio Turnover Rate 60.20 75.88 70.41 66.52 92.08 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 1,310,890 1,130,190 911,688 677,084 473,452 (A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING SHARES WERE REDESIGNATED CLASS Z SHARES. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. SEE NOTES TO FINANCIAL STATEMENTS.
The Fund NOTES TO FINANCIAL STATEMENTS NOTE 1--Significant Accounting Policies: The Dreyfus Premier Third Century Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified open-end management investment company. The fund's investment objective is to provide capital growth. The Dreyfus Corporation ("Dreyfus") serves as the fund's investment adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation. NCM Capital Management Group, Inc. ("NCM") serves as the fund's sub-investment adviser. On April 15, 1999, shareholders approved a reorganization, effective August 31, 1999, in which the fund' s name changed to The Dreyfus Premier Third Century Fund, Inc. Shares of the fund have been redesignated as Class Z shares and the fund added Class A, Class B, Class C, Class R and Class T shares. Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned subsidiary of the Manager, became the distributor of the fund's shares. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund is authorized to issue 150 million of $.001 par value Common Stock. The fund currently offers six classes of shares: Class A, Class B, Class C, Class R, Class T and Class Z. Class A, Class B, Class C, and Class T shares are sold primarily to retail investors through financial intermediaries and bear a distribution fee and/or service fee. Class Z shares are not available for new accounts and bear a service fee. Class A shares 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, Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase and Class R shares are sold at net asset value per share only to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. The fund's financial statements are prepared in accordance with generally accepted accounting principles which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (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. (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. Under the terms of the custody agreement, the fund receives net earnings credits based on available cash balances left on deposit. (C) 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 of 1986, as amended (the "Code"). To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the fund not to distribute such gain. (D) 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 The Fund NOTES TO FINANCIAL STATEMENTS (CONTINUED) applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes NOTE 2--Bank Line of Credit: The fund participates with other Dreyfus-managed funds in a $500 million redemption credit facility (the "Facility" ) primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund at rates based on prevailing market rates in effect at the time of borrowings. The average daily amount of borrowings outstanding during the period ended May 31, 2000, was approximately $329,900 with a related weighted average interest rate of 6.31%. NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other Transactions With Affiliates: (A) Pursuant to the investment advisory agreement ("Agreement") with Dreyfus, the investment advisory fee is computed at an annual rate of .75 of 1% of the value of the fund's average daily net assets and is payable monthly. Pursuant to an undertaking, if in any full fiscal year the aggregate expenses allocable to Class Z, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed 11/2% of the value of the average net assets of Class Z, the fund may deduct from the fees paid to Dreyfus, or Dreyfus will bear such excess expense. During the period ended May 31, 2000, there was no expense reimbursement pursuant to the Agreement. Pursuant to a Sub-Investment Advisory Agreement with NCM, the sub-investment advisory fees are payable monthly by Dreyfus, and are based upon the value of the fund's average daily net assets, computed at the following rates: AVERAGE NET ASSETS 0 to $400 million. . . . . . . . . . . . . . . . . .10 of 1% $400 million to $500 million . . . . . . . . . . . .15 of 1% $500 million to $750 million . . . . . . . . . . . .20 of 1% In excess of $750 million. . . . . . . . . . . . . .25 of 1% DSC retained $851 during the period ended May 31, 2000 from commissions earned on sales of the fund's shares. (B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1 under the Act, Class B, Class C and Class T shares pay the distributor for distributing their shares at the following annual rates: .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 May 31, 2000, Class B, Class C and Class T shares were charged $44,524, $13,422 and $318, respectively, pursuant to the Plan, of which $31,517, $8,468 and $223 for Class B, Class C and Class T shares, respectively, were paid to DSC. (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 Class A, Class B, Class C and Class T shares and providing reports and other information, and services related to the maintenance of shareholder accounts. The distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The distributor determines the amounts to be paid to Service Agents. During the period ended May 31, 2000, The Fund NOTES TO FINANCIAL STATEMENTS (CONTINUED) Class A, Class B, Class C and Class T shares were charged $8,851, $14,841, $4,474, and $318, respectively, pursuant to the Shareholder Services Plan, of which $5,798, $10,506, $2,823 and $223 for Class A, Class B, Class C and Class T shares, respectively, were paid to DSC. Under the Shareholder Services Plan, Class Z shares reimburse DSC an amount not to exceed an annual rate of .25 of 1% of the value of the average daily net assets of Class Z for certain allocated expenses of providing personal services and/or maintaining 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 period ended May 31, 2000, Class Z shares were charged $1,008,834 pursuant to the Shareholder Services Plan. The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended May 31, 2000, the fund was charged $359,803 pursuant to the transfer agency agreement. The fund compensates Mellon under a custody agreement for providing custodial services for the fund. During the period ended May 31, 2000, the fund was charged $91,659 pursuant to the custody agreement. (D) Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each Board member, who is not an "affiliated person" as defined in the Act, receives an annual fee of $25,000 and an attendance fee of $4,000 for each meeting attended in person and $500 for telephone meetings. These fees are allocated among the funds in the Fund Group. The Chairman of the Board receives an additional 25% of such compensation. Prior to April 13, 2000, each Board member who was not an "affiliated person" as defined in the Act received from the fund an annual fee of $10,000. The Chairman of the Board received an additional 25% of such compensation. Subject to the fund' s Director Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's annual retainer fee and per meeting fee paid at the time the Board member achieved emeritus status. (E) During the period ended May 31, 2000, the fund incurred total brokerage commissions of $1,221,556, of which $36,212 was paid to Dreyfus Brokerage Services, a wholly-owned subsidiary of Mellon Financial Corporation. NOTE 4--Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended May 31, 2000, amounted to $841,495,334 and $765,382,777, respectively. At May 31, 2000, accumulated net unrealized appreciation on investments was $460,167,133, consisting of $478,271,763 gross unrealized appreciation and $18,104,630 gross unrealized depreciation. At May 31, 2000, 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 REPORT OF INDEPENDENT AUDITORS Shareholders and Board of Directors The Dreyfus Premier Third Century Fund, Inc We have audited the accompanying statement of assets and liabilities of The Dreyfus Premier Third Century Fund, Inc., including the statement of investments, as of May 31, 2000, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund' s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included verification by examination of securities held by the custodian as of May 31, 2000 and confirmation of securities not held by the custodian by correspondence with others. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The Dreyfus Premier Third Century Fund, Inc. at May 31, 2000, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with accounting principles generally accepted in the United States. New York, New York July 7, 2000 IMPORTANT TAX INFORMATION (Unaudited) For Federal tax purposes, the fund hereby designates $1.1150 per share as a long-term capital gain distribution of the $1.3480 per share paid on December 8, 1999. The fund hereby designates .365% of the ordinary dividends paid during the fiscal year ended May 31, 2000 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2001 of the percentage applicable to the preparation of their 2000 income tax returns. The Fund For More Information The Dreyfus Premier Third Century Fund, Inc. 200 Park Avenue New York, NY 10166 Investment Adviser The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Sub-Investment Adviser NCM Capital Management Group, Inc. 103 West Main Street Durham, North Carolina 27705 Custodian Mellon Bank, N.A. One Mellon Bank Center Pittsburgh, PA 15258 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Distributor Dreyfus Service Corporation 200 Park Avenue New York, NY 10166 To obtain information: BY TELEPHONE Call your financial representative or 1-800-554-4611 BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss Boulevard Uniondale, NY 11556-0144 (c) 2000 Dreyfus Service Corporation 035AR005 EX-99.A 2 0002.txt GRAPH IN THE PRESIDENT'S LETTER OF THE ANNUAL REP. COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE DREYFUS PREMIER THIRD CENTURY FUND, INC. CLASS Z SHARES AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX EXHIBIT A: THE DREYFUS PREMIER STANDARD THIRD & POOR'S 500 CENTURY COMPOSITE FUND, STOCK INC. PERIOD PRICE (CLASS Z INDEX * SHARES) 3/29/72 10,000 10,000 5/31/72 10,266 10,061 5/31/73 10,124 8,177 5/31/74 8,721 7,551 5/31/75 9,556 9,193 5/31/76 10,928 10,781 5/31/77 10,937 12,082 5/31/78 11,656 14,870 5/31/79 12,522 17,335 5/31/80 14,858 24,830 5/31/81 18,603 33,866 5/31/82 16,607 26,088 5/31/83 25,378 37,009 5/31/84 24,604 33,576 5/31/85 32,415 43,715 5/31/86 43,971 52,949 5/31/87 53,275 60,640 5/31/88 49,807 58,265 5/31/89 63,136 70,235 5/31/90 73,604 82,355 5/31/91 82,259 96,514 5/31/92 90,345 100,299 5/31/93 100,816 110,350 5/31/94 105,101 109,657 5/31/95 126,288 122,610 5/31/96 162,168 163,843 5/31/97 209,909 205,945 5/31/98 274,269 263,121 5/31/99 331,948 316,522 5/31/00 366,689 382,701 * Source: Lipper Analytical Services, Inc. All percentages shown above are based on Total Net Assets. -----END PRIVACY-ENHANCED MESSAGE-----