-----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, QK4Rb9JA4LvpfmIG8YXyJVTvYvGRJlnQNCKX0ZFh776oRBTRT8r27/gA3+zK5ZXK 156ehbFGZ6Roucbodx7t7g== 0000030167-01-000001.txt : 20010312 0000030167-01-000001.hdr.sgml : 20010312 ACCESSION NUMBER: 0000030167-01-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001130 FILED AS OF DATE: 20010308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS THIRD CENTURY FUND INC CENTRAL INDEX KEY: 0000030167 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [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: 1563783 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 SEMI-ANNUAL REPORT The Dreyfus Premier Third Century Fund, Inc. SEMIANNUAL REPORT November 30, 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 Statement of Investments 9 Statement of Assets and Liabilities 10 Statement of Operations 11 Statement of Changes in Net Assets 14 Financial Highlights 20 Notes to Financial Statements 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 semiannual report for The Dreyfus Premier Third Century Fund, Inc., covering the six-month period from June 1, 2000 through November 30, 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 Standard & Poor' s 500 Composite Stock Price Index, a broad measure of large-cap stock performance, fell nearly 7% over the six-month reporting period in an investment environment marked by dramatic day-to-day price fluctuations. Technology-related stocks were particularly hard-hit, having reached lofty levels earlier in 2000. Conversely, long-neglected value-oriented stocks fared relatively well when investors once again recognized the potential of attractively priced "old economy" companies. Since stocks provided returns well above their historical averages during the second half of the 1990s, some investors may have developed unrealistic expectations for equities. Recent market volatility has reminded investors of both the risks of investing and the importance of fundamental research and investment selection. For more information about the economy and financial markets, we encourage you to visit the Market Commentary section of our website at www.dreyfus.com. Or, to speak with a Dreyfus customer service representative, call us at 1-800-782-6620 Thank you for investing in The Dreyfus Premier Third Century Fund, Inc. Sincerely, Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation December 15, 2000 2 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 six-month period ended November 30, 2000, The Dreyfus Premier Third Century Fund, Inc. produced total returns of -9.32% for Class A shares, -9.73% for Class B shares, -9.65% for Class C shares, -9.21% for Class R shares, -9.46% for Class T shares and -9.21% for Class Z shares.(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 -6.92% for the same period.(2) We attribute the fund's performance to a difficult stock market environment over the past six months, particularly within the technology and telecommunications sectors, two areas in which the fund was fairly heavily invested. In addition, the fund's stocks within the capital goods area hurt its performance relative to its benchmark. 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. What other factors influenced the fund's performance? When the reporting period began, the U.S. stock market was generally reacting negatively to a series of interest-rate hikes, including several initiated earlier in 2000 by the Federal Reserve Board (the "Fed" ), The Fund 3 DISCUSSION OF FUND PERFORMANCE (CONTINUED) which was attempting to slow economic growth. In addition, rising oil prices raised concerns among investors that inflationary pressures might reaccelerate, which investors believed might prompt the Fed to raise rates even higher. As a result of these influences, many of the fund' s holdings lagged. More specifically, the fund' s technology and telecommunications holdings experienced sharp declines, as did some of its capital goods stocks -- manufacturing companies with which larger technology firms contract to produce their products. The prices of many stocks of companies in these areas fell after several high-profile firms predicted that quarterly earnings were not going to be as high as analysts had originally expected. On the other hand, the fund enjoyed positive returns from other areas of the market, most notably in the health care and consumer staples industry groups. Within health care, our pharmaceutical stocks -- including Merck & Co., Schering-Plough and Johnson & Johnson -- produced solid returns. In addition, our holdings in health services companies boosted performance, including Cardinal Health, a drug wholesaler, and Amgen, a biotechnology company. Within consumer staples, our best returns were generated from our holdings in CVS, the drug store chain, Safeway, the grocery store chain, Coca-Cola and Kimberly Clark. What is the fund's current strategy? We continue to favor technology companies, including the networking, fiber optics and broadband areas. While technology stocks have suffered recently, we remain confident that these stocks will benefit from secular growth. In addition, we began to take profits toward the end of the period from some of our health care stocks, choosing instead to deploy those assets into retail and financial stocks. Can you give us an update on the fund's socially responsible investing activities? As socially conscious investors, we are concerned about recent reports regarding the hazards of mercury. Contact occurs most commonly through breakage of household mercury fever thermometers. A toxic 4 substance to both humans and wildlife, mercury fever thermometers have a small glass tube that contains liquid mercury -- a silvery white substance. When these products break, the mercury can evaporate, creating a risk of dangerous exposure to mercury vapor in indoor air. The risks are greater in rooms that lack adequate ventilation or when cleanup attempts, such as vacuuming, can increase the likelihood of human exposure. In response to this problem, many state and local agencies have initiated programs to phase out or eliminate the use of mercury thermometers. To that end, we have been in contact with top management officials of several companies in the fund, including CVS. We are pleased to report that CVS plans to sell down its remaining stock of mercury thermometers in its 4,100 stores by early 2001. We are also currently in early-stage dialogues with management officials at Cardinal Health and Safeway. Many suitable alternatives to mercury thermometers exist, including digital or glass alcohol thermometers. For further information about this subject or to find out if there is a hazardous waste collection site in your neighborhood for disposing of your mercury thermometer, call the EPA's hotline, 1-800-CLEANUP December 15, 2000 (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. CLASS Z SHARES ARE 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 INC. -- REFLECTS THE REINVESTMENT OF INCOME 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 5 STATEMENT OF INVESTMENTS November 30, 2000 (Unaudited)
COMMON STOCKS--99.9% Shares Value ($) - ----------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES--1.7% Omnicom Group 279,000 21,936,375 CONSUMER NON-DURABLES--3.7% Coca-Cola 430,000 26,928,750 Kimberly-Clark 290,000 20,281,875 47,210,625 ELECTRONIC TECHNOLOGY--22.4% Applied Materials 530,000 (a) 21,431,875 Celestica 337,000 (a) 17,566,125 Cisco Systems 584,200 (a) 27,968,575 Cree 134,200 (a) 7,531,975 EMC 524,000 (a) 38,972,500 Flextronics International 400,000 (a) 10,025,000 International Business Machines 210,700 19,700,450 JDS Uniphase 170,000 (a) 8,510,625 Lucent Technologies 200,000 3,112,500 Nokia, ADS 480,400 20,537,100 Nortel Networks 501,000 18,912,750 Sanmina 196,000 (a) 14,945,000 Solectron 570,000 (a) 15,960,000 Sun Microsystems 428,700 (a) 32,607,994 Tellabs 448,700 (a) 23,781,100 Vishay Intertechnology 366,000 (a) 6,908,250 288,471,819 ENERGY MINERALS--1.7% Royal Dutch Petroleum (New York Shares) 370,000 22,084,375 FINANCE--18.5% AFLAC 260,000 18,297,500 American Express 467,700 25,694,269 American International Group 334,093 32,386,140 Capital One Financial 175,600 9,800,675 Citigroup 529,400 26,370,738 Fannie Mae 307,700 24,308,300 Marsh & McLennan Cos. 193,300 22,253,662 Merrill Lynch 620,000 35,882,500 State Street 183,800 23,710,200 Wells Fargo 410,000 19,449,375 238,153,359 6 COMMON STOCKS (CONTINUED) Shares Value ($) - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH SERVICES--1.6% Cardinal Health 201,000 20,087,438 HEALTH TECHNOLOGY--14.5% ALZA 360,000 (a) 15,975,000 Amgen 243,400 (a) 15,486,325 Guidant 382,000 (a) 20,604,125 Johnson & Johnson 223,000 22,300,000 Merck & Co. 314,000 29,103,875 Pfizer 928,500 41,144,156 Schering-Plough 734,500 41,177,906 185,791,387 PRODUCER MANUFACTURING--4.1% Emerson Electric 383,000 27,911,125 Tyco International 482,000 25,425,500 53,336,625 RETAIL TRADE--9.1% CVS 462,000 26,276,250 Dollar General 545,000 7,800,312 Home Depot 350,000 13,715,625 Limited 370,000 7,191,875 Safeway 387,600 (a) 22,844,175 TJX Cos. 350,000 8,968,750 Wal-Mart Stores 578,000 30,164,375 116,961,362 SEMICONDUCTORS--3.6% Intel 655,000 24,930,938 Linear Technology 444,800 21,044,600 45,975,538 TECHNOLOGY SERVICES--9.5% America Online 875,400 (a) 35,549,994 i2 Technologies 82,000 (a) 7,902,750 Microsoft 700,000 (a) 40,162,500 Oracle 1,434,000 (a) 38,001,000 121,616,244 TRANSPORTATION--.9% FedEx 250,000 (a) 11,980,000 UTILITIES--8.6% AES 406,600 (a) 21,092,375 The Fund 7 STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (CONTINUED) AT&T--Liberty Media, Cl. A 1,170,000 (a) 15,868,125 Calpine 360,000 (a) 12,780,000 Enron 170,000 11,007,500 Global Crossing 383,000 (a) 4,739,625 SBC Communications 270,000 14,833,125 Verizon Communications 314,000 17,642,875 WorldCom 802,845 (a) 11,992,497 109,956,122 TOTAL COMMON STOCKS (cost $971,460,309 ) 1,283,561,269 - ------------------------------------------------------------------------------------------------------------------------------------ Principal SHORT-TERM INVESTMENTS--.2% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT--.0% Self Help Credit Union, 6.02%, 12/19/2000 100,000 100,000 U.S.TREASURY BILLS--.2% 5.99%, 2/22/2001 2,729,000 2,690,930 TOTAL SHORT-TERM INVESTMENTS (cost $2,791,311) 2,790,930 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $974,251,620 ) 100.1% 1,286,352,199 LIABILITIES, LESS CASH AND RECEIVABLES (.1%) (960,156) NET ASSETS 100.0% 1,285,392,043 (A) NON-INCOME PRODUCING. SEE NOTES TO FINANCIAL STATEMENTS.
8 STATEMENT OF ASSETS AND LIABILITIES November 30, 2000 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments 974,251,620 1,286,352,199 Cash 3,321,737 Receivable for investment securities sold 14,763,987 Dividends and interest receivable 619,557 Receivable for shares of Common Stock subscribed 263,023 Prepaid expenses 49,213 1,305,369,716 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 1,043,570 Payable for investment securities purchased 18,493,995 Payable for shares of Common Stock redeemed 188,391 Accrued expenses 251,717 19,977,673 - -------------------------------------------------------------------------------- NET ASSETS ($) 1,285,392,043 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 901,952,864 Accumulated undistributed investment income-net 5,517,070 Accumulated net realized gain (loss) on investments 65,821,530 Accumulated net unrealized appreciation (depreciation) on investments--Note 4 312,100,579 - -------------------------------------------------------------------------------- NET ASSETS ($) 1,285,392,043 NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T Class Z - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS ($) 16,374,841 28,973,629 7,017,167 44,614,676 777,438 1,187,634,292 Shares Outstanding 1,294,556 2,311,620 559,758 3,510,411 62,020 93,474,940 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE ($) 12.65 12.53 12.54 12.71 12.54 12.71 SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 9 STATEMENT OF OPERATIONS Six Months Ended November 30, 2000 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends (net of $61,728 foreign taxes withheld at source) 3,805,797 Interest 593,652 TOTAL INCOME 4,399,449 EXPENSES: Investment advisory fee--Note 3(a) 5,484,836 Shareholder servicing costs--Note 3(c) 1,266,148 Distribution fees--Note 3(b) 129,407 Registration fees 63,199 Custodian fees--Note 3(c) 51,164 Professional fees 47,478 Prospectus and shareholders' reports 30,469 Directors' fees and expenses--Note 3(d) 17,387 Loan commitment fees--Note 2 5,897 Miscellaneous 1,906 TOTAL EXPENSES 7,097,891 INVESTMENT (LOSS) (2,698,442) - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments 17,774,950 Net unrealized appreciation (depreciation) on investments (148,066,554) NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (130,291,604) NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (132,990,046) SEE NOTES TO FINANCIAL STATEMENTS. 10 STATEMENT OF CHANGES IN NET ASSETS Six Months Ended November 30, 2000 Year Ended (Unaudited) May 31, 2000(a) - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income (loss)-net (2,698,442) 8,130,506 Net realized gain (loss) on investments 17,774,950 64,954,708 Net unrealized appreciation (depreciation) on investments (148,066,554) 161,776,525 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (132,990,046) 234,861,739 - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): 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) TOTAL DIVIDENDS -- (118,831,171) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 9,099,344 19,154,469 Class B shares 13,803,915 21,710,010 Class C shares 3,362,988 5,605,138 Class R shares 4,955,225 48,544,845 Class T shares 419,983 482,573 Class Z shares 244,150,913 616,815,662 Dividends reinvested: Class A shares -- 140,247 Class B shares -- 198,885 Class C shares -- 79,861 Class R shares -- 3,664 Class T shares -- 2,579 Class Z shares -- 114,411,113 The Fund 11 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Six Months Ended November 30, 2000 Year Ended (Unaudited) May 31, 2000(a) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($) (CONTINUED): Cost of shares redeemed: Class A shares (1,716,965) (8,229,982) Class B shares (2,032,353) (773,470) Class C shares (708,982) (377,013) Class R shares (1,245,608) (2,302,973) Class T shares (20,640) (15,731) Class Z shares (245,717,494) (667,638,635) INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 24,350,326 147,811,242 TOTAL INCREASE (DECREASE) IN NET ASSETS (108,639,720) 263,841,810 - -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 1,394,031,763 1,130,189,953 END OF PERIOD 1,285,392,043 1,394,031,763 Undistributed investment income-net 5,517,070 8,215,512 (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. 12 Six Months Ended November 30, 2000 Year Ended (Unaudited) May 31, 2000(a) - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A (B) Shares sold 623,172 1,360,990 Shares issued for dividends reinvested -- 10,274 Shares redeemed (116,824) (583,056) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 506,348 788,208 - -------------------------------------------------------------------------------- CLASS B (B) Shares sold 957,095 1,539,552 Shares issued for dividends reinvested -- 14,592 Shares redeemed (144,785) (54,834) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 812,310 1,499,310 - -------------------------------------------------------------------------------- CLASS C Shares sold 230,904 398,017 Shares issued for dividends reinvested -- 5,859 Shares redeemed (48,134) (26,888) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 182,770 376,988 - -------------------------------------------------------------------------------- CLASS R Shares sold 336,399 3,420,654 Shares issued for dividends reinvested -- 268 Shares redeemed (86,445) (160,465) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 249,954 3,260,457 - -------------------------------------------------------------------------------- CLASS T Shares sold 30,507 33,860 Shares issued for dividends reinvested -- 190 Shares redeemed (1,442) (1,095) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 29,065 32,955 - -------------------------------------------------------------------------------- CLASS Z Shares sold 16,495,679 44,379,776 Shares issued for dividends reinvested -- 8,363,394 Shares redeemed (16,643,427) (47,975,462) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (147,748) 4,767,708 (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 NOVEMBER 30, 2000, 12,748 CLASS B SHARES REPRESENTING $179,672 WERE AUTOMATICALLY CONVERTED TO 12,641 CLASS A SHARES AND DURING THE PERIOD ENDED MAY 31, 2000, 33,920 CLASS B SHARES REPRESENTING $485,578 WERE AUTOMATICALLY CONVERTED TO 33,770 CLASS A SHARES. SEE NOTES TO FINANCIAL STATEMENTS. The Fund 13 FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (excluding portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements. Six Months Ended November 30, 2000 Year Ended CLASS A SHARES (Unaudited) May 31, 2000(a) - ------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 13.95 13.34 Investment Operations: Investment income (loss)-net (.04)(b) .20(b) Net realized and unrealized gain (loss) on investments (1.26) 1.76 Total from Investment Operations (1.30) 1.96 Distributions: Dividends from net realized gain on investments -- (1.35) Net asset value, end of period 12.65 13.95 - ------------------------------------------------------------------------------- TOTAL RETURN (%)( C) (9.32)(d) 14.90(d) - ------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .59(d) 1.02(d) Ratio of net investment income (loss) to average net assets (.28)(d) 1.43(d) Portfolio Turnover Rate 35.24(d) 60.20 - ------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 16,375 10,999 (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. 14 - -------------------------------------------------------------------------------- Six Months Ended November 30, 2000 Year Ended CLASS B SHARES (Unaudited) May 31, 2000(a) - -------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 13.88 13.34 Investment Operations: Investment income (loss)-net (.10)(b) .15(b) Net realized and unrealized gain (loss) on investments (1.25) 1.74 Total from Investment Operations (1.35) 1.89 Distributions: Dividends from net realized gain on investments -- (1.35) Net asset value, end of period 12.53 13.88 - -------------------------------------------------------------------------------- TOTAL RETURN (%) (C) (9.73)(d) 14.34(d) - -------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .97(d) 1.55(d) Ratio of net investment income (loss) to average net assets (.67)(d) 1.07(d) Portfolio Turnover Rate 35.24(d) 60.20 - -------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 28,974 20,812 (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. The Fund 15 FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2000 Year Ended CLASS C SHARES (Unaudited) May 31, 2000(a) - -------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 13.88 13.34 Investment Operations: Investment income (loss)-net (.09)(b) .11(b) Net realized and unrealized gain (loss) on investments (1.25) 1.78 Total from Investment Operations (1.34) 1.89 Distributions: Dividends from net realized gain on investments -- (1.35) Net asset value, end of period 12.54 13.88 - -------------------------------------------------------------------------------- TOTAL RETURN (%)( C) (9.65)(d) 14.34(d) - -------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .95(d) 1.54(d) Ratio of net investment income (loss) to average net assets (.65)(d) .77(d) Portfolio Turnover Rate 35.24(d) 60.20 - -------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 7,017 5,234 (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. 16 Six Months Ended November 30, 2000 Year Ended CLASS R SHARES (Unaudited) May 31, 2000(a) - -------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 14.00 13.34 Investment Operations: Investment income (loss)-net (.02)(b) .26(b) Net realized and unrealized gain (loss) on investments (1.27) 1.75 Total from Investment Operations (1.29) 2.01 Distributions: Dividends from net realized gain on investments -- (1.35) Net asset value, end of period 12.71 14.00 - -------------------------------------------------------------------------------- TOTAL RETURN (%) (9.21)(c) 15.30(c) - -------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .42(c) .75(c) Ratio of net investment income (loss) to average net assets (.12)(c) 1.69(c) Portfolio Turnover Rate 35.24(c) 60.20 - -------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 44,615 45,641 (A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. The Fund 17 FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2000 Year Ended CLASS T SHARES (Unaudited) May 31, 2000(a) - ------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 13.85 13.34 Investment Operations: Investment income (loss)-net (.06)(b) .20(b) Net realized and unrealized gain (loss) on investments (1.25) 1.66 Total from Investment Operations (1.31) 1.86 Distributions: Dividends from net realized gain on investments -- (1.35) Net asset value, end of period 12.54 13.85 - ------------------------------------------------------------------------------- TOTAL RETURN (%)( C) (9.46)(d) 14.14(d) - ------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .73(d) 1.21(d) Ratio of net investment income (loss) to average net assets (.42)(d) 1.40(d) Portfolio Turnover Rate 35.24(d) 60.20 - ------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 777 456 (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. 18
Six Months Ended November 30, 2000 Year Ended May 31, ------------------------------------------------------------------- CLASS Z SHARES (Unaudited) 2000(a) 1999 1998 1997 1996 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 14.00 12.72 11.78 10.01 9.25 7.45 Investment Operations: Investment income (loss)-net (.03)(b) .08(b) (.01) .01 .02 .03 Net realized and unrealized gain (loss) on investments (1.26) 2.55 2.29 2.68 2.16 2.39 Total from Investment Operations (1.29) 2.63 2.28 2.69 2.18 2.42 Distributions: Dividends from investment income-net -- -- -- (.02) (.02) (.05) Dividends from net realized gain on investments -- (1.35) (1.34) (.90) (1.40) (.57) Total Distributions -- (1.35) (1.34) (.92) (1.42) (.62) Net asset value, end of period 12.71 14.00 12.72 11.78 10.01 9.25 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (%) (9.21)(c) 20.91 20.30 27.76 25.70 33.63 - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .47(c) .96 .96 .97 1.03 1.11 Ratio of net investment income (loss) to average net assets (.17)(c) .60 (.11) .07 .22 .36 Portfolio Turnover Rate 35.24(c) 60.20 75.88 70.41 66.52 92.08 - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets, end of period ($ X 1,000) 1,187,634 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. (C) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 19 NOTES TO FINANCIAL STATEMENTS (Unaudited) 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. Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of Dreyfus, 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, Class T and 200 million shares of $.001 par value Common Stock of Class Z shares. 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 B shares automatically convert to Class A shares after six years. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase and Class R shares are sold at net asset value per share only to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. The 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 are valued at the last sales price on the securities exchange on which such securities are pri- 20 marily 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 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 The Fund 21 NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) 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. During the period ended November 30, 2000, the fund did not borrow under the line of credit. 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 November 30, 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% (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 22 of Class T shares. During the period ended November 30, 2000, Class B, Class C and Class T shares were charged $101,818, $26,860 and $729, 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 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 November 30, 2000, Class A, Class B, Class C and Class T shares were charged $18,714, $33,939, $8,953 and $729, respectively, pursuant to the Shareholder Services Plan. Under the Shareholder Services Plan, Class Z shares reimburse the Distributor 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 November 30, 2000, Class Z shares were charged $631,211 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 November 30, 2000, the fund was charged $148,111 pursuant to the transfer agency agreement. The Fund 23 NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) The fund compensates Mellon under a custody agreement for providing custodial services for the fund. During the period ended November 30, 2000, the fund was charged $51,164 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"). 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 in person meeting 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. Subject to the fund's 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 achieves emeritus status. (E) During the period ended November 30, 2000, the fund incurred total brokerage commissions of $789,140, of which $31,892 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 November 30, 2000, amounted to $540,784,741 and $504,255,499, respectively. At November 30, 2000, accumulated net unrealized appreciation on investments was $312,100,579, consisting of $407,346,115 gross unrealized appreciation and $95,245,536 gross unrealized depreciation. At November 30, 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). 24 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 Printed on recycled paper. 50% post-consumer Process chlorine free. Vegetable-based ink. Printed in U.S.A. (c) 2001 Dreyfus Service Corporation 035SA0011 -----END PRIVACY-ENHANCED MESSAGE-----