-----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, C+y0as45rKY5m7FV8VEAdsCVoWtCklmI/UCiBe9ZbQgYfVkPHjGMSIqWlCle8vxC dLXp/6lIOrFHAAwf2Ik3Dw== 0000030167-02-000002.txt : 20020414 0000030167-02-000002.hdr.sgml : 20020414 ACCESSION NUMBER: 0000030167-02-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011130 FILED AS OF DATE: 20020130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS THIRD CENTURY FUND INC CENTRAL INDEX KEY: 0000030167 IRS NUMBER: 132691318 STATE OF INCORPORATION: MD FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02192 FILM NUMBER: 02522287 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 pn30d-035.txt SEMI-ANNUAL REPORT The Dreyfus Premier Third Century Fund, Inc. SEMIANNUAL REPORT November 30, 2001 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 Chairman 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 CHAIRMAN Dear Shareholder: We present this semiannual report for The Dreyfus Premier Third Century Fund, Inc., covering the six-month period from June 1, 2001 through November 30, 2001. 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, Lincoln Carnam, Maceo K. Sloan and Larry Jones. Even before the devastating terrorist attacks of September 11, a slowing economy and a return to more normal valuations had taken their toll on stocks that had previously risen too high, too fast. After the attacks, the investment environment became even more volatile. Recent events have prolonged existing economic weakness, but we believe that the U.S. may begin to see signs of economic recovery in the months ahead. In the meantime, there is little doubt that the investment environment will continue to be challenging. At times like these, emotions should be set aside in favor of an objective, rational view of prevailing risks and opportunities. It is important during any time of market uncertainty to seek professional management and professional advice, both of which are cornerstones of our investment approach. We encourage you to contact your financial advisor for information about ways to refine your investment strategies. Thank you for your continued confidence and support. Sincerely, Stephen E. Canter Chairman and Chief Executive Officer The Dreyfus Corporation December 14, 2001 DISCUSSION OF FUND PERFORMANCE Lincoln Carnam, Maceo K. Sloan and Larry Jones, Portfolio Managers How did The Dreyfus Premier Third Century Fund, Inc. perform relative to its benchmark? For the six-month period ended November 30, 2001, the fund produced a total return of -13.71% for Class A shares, -13.99% for Class B shares, -14.16% for Class C shares, -13.63% for Class R shares, -14.05% for Class T shares and - -13.63% for Class Z shares.(1) In comparison, the fund's benchmark, the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index"), produced a total return of -8.65% for the same period.(2) We attribute the fund's absolute performance to a deteriorating economy, which resulted in lower stock prices for many of the fund's holdings. While the stock market showed improvement during the last two months of the reporting period, the fund's holdings within the information technology and telecommunications areas caused the fund's performance to trail that of 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 The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) What other factors influenced the fund's performance? When the reporting period began, the U.S. economy was already in a recession. Most stocks suffered in this environment, but certain industry groups were particularly hard-hit, including information technology and telecommunications services. In hindsight, we may have waited too long before trimming the fund's exposure to these growth-oriented companies. When the reporting period began, approximately 28% of the fund's assets was allocated to technology stocks and 10% to telecommunications services. By the end of the summer, we had scaled those weightings back to approximately 18% and 8%, respectively. While that decision was positive overall, early declines in these industry groups resulted in returns that lagged those of the S&P 500 Index for the reporting period. During difficult stock market environments, we believe it's especially important to concentrate on stocks that have a record of consistent earnings and are reasonably priced. We found many of these characteristics in health care and financial services stocks. Health care stocks provided some of the fund's highest returns of the reporting period, especially for some of its pharmaceutical holdings that, we believe, are poised to benefit from new drugs slated for release in 2002 and 2003. Many of the fund's financial services stocks benefited from lower interest rates and increased demand for mortgage loans and refinancing. What is the fund's current strategy? While we believe the September 11 terrorist attacks may have pushed the expected economic recovery back several calendar quarters, we have been encouraged by the resilience of the stock market during the weeks after the attacks. Accordingly, we have positioned the fund to benefit from such a recovery by emphasizing stocks in the financial services and consumer discretionary areas. As the volume of stock market trading continues to rise following the attacks, we believe that stock prices of many of the fund's large brokerage and asset management companies should also improve. In addition, we believe that the lower interest-rate environment could help support holiday spending among retailers of electronics, such as high-definition and large-screen televisions, video games and palm-size electronic devices. Can you give us an update on the fund's socially responsible investing activities? Over the past year, we have continued to follow up with Coca-Cola in an effort to improve the amount of polyethlene terepthalate (PET) in their plastic soft drink containers. We are pleased to report that Coca-Cola has increased the percentage of plastic containers that contain recycled PET from 25% of the total plastic containers they produce to 80% that will have recycled content. These containers consist of 10% recycled material, and by 2005, Coca-Cola is looking to have all of the plastic containers they produce to consist of 10% recycled material. Coca-Cola is the first soft-drink company to make such an effort across their complete product line and we will continue to follow up with Coca-Cola in the hopes of working toward eventually increasing the percentage of recycled material used in the containers that they produce. December 14, 2001 (1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID, AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGES IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE 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 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 November 30, 2001 (Unaudited)
STATEMENT OF INVESTMENTS COMMON STOCKS--98.6% Shares Value ($) - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER NON-DURABLES--9.5% Avon Products 224,000 10,693,760 Coca-Cola 560,000 26,297,600 Colgate-Palmolive 414,000 24,161,040 PepsiCo 184,000 8,947,920 Procter & Gamble 250,000 19,365,000 89,465,320 CONSUMER SERVICES--2.4% Clear Channel Communications 240,000 (a) 11,215,200 Comcast, Cl. A 10,200 (a) 386,070 Comcast, Cl. A (Special) 284,800 (a) 10,822,400 22,423,670 ELECTRONIC TECHNOLOGY--22.2% Altera 195,000 (a) 4,438,200 Applied Materials 226,300 (a) 8,995,425 Cisco Systems 1,555,900 (a) 31,818,155 Dell Computer 350,000 (a) 9,775,500 Intel 1,160,000 37,885,600 International Business Machines 315,700 36,491,763 Juniper Networks 296,000 (a) 7,275,680 Linear Technology 434,600 17,831,638 National Semiconductor 682,000 (a) 20,548,660 Sun Microsystems 983,700 (a) 14,007,888 Texas Instruments 611,000 19,582,550 208,651,059 ENERGY MINERALS--1.8% Royal Dutch Petroleum (New York Shares), ADR 348,300 16,836,822 FINANCE--17.7% American International Group 338,093 27,858,863 Bank of America 345,000 21,176,100 Citigroup 369,400 17,694,260 Fannie Mae 331,900 26,087,340 MGIC Investment 223,000 13,056,650 Marsh & McLennan Cos. 123,300 13,189,401 Merrill Lynch 182,000 9,116,380 Schwab (Charles) 592,000 8,501,120 State Street 247,600 12,959,384 COMMON STOCKS (CONTINUED) Shares Value ($) - ----------------------------------------------------------------------------------------------------------------------------------- FINANCE (CONTINUED) Stilwell Financial 388,000 9,203,360 Wells Fargo 160,000 6,848,000 165,690,858 HEALTH SERVICES--1.5% Caremark Rx 606,000 (a) 9,090,000 Tenet Healthcare 76,000 (a) 4,560,000 13,650,000 HEALTH TECHNOLOGY--14.7% Amgen 323,400 (a) 21,483,462 Baxter International 428,000 22,256,000 Boston Scientific 300,000 (a) 7,980,000 Bristol-Myers Squibb 186,000 9,999,360 Johnson & Johnson 435,000 25,338,750 Lilly (Eli) & Co. 132,500 10,953,775 Pfizer 914,800 39,619,988 137,631,335 NON-ENERGY MINERALS--2.1% Alcoa 510,000 19,686,000 PRODUCER MANUFACTURING--3.4% Tyco International 549,000 32,281,200 RETAIL TRADE--8.8% Best Buy 221,000 (a) 15,777,190 Home Depot 525,400 24,515,164 TJX Cos. 450,000 16,960,500 Wal-Mart Stores 450,000 24,817,500 82,070,354 TECHNOLOGY SERVICES--7.2% Electronic Data Systems 183,000 12,667,260 Microsoft 723,700 (a) 46,468,777 Siebel Systems 367,000 (a) 8,202,450 67,338,487 TELECOMMUNICATIONS EQUIPMENT--3.4% Nokia, ADR 580,400 13,355,004 QUALCOMM 163,000 (a) 9,571,360 Tellabs 600,000 (a) 9,168,000 32,094,364 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES--3.9% El Paso 192,500 8,566,250 Liberty Media, Cl. A 1,170,000 (a) 15,385,500 SBC Communications 344,000 12,858,720 36,810,470 TOTAL COMMON STOCKS (cost $786,186,974) 924,629,939 - ------------------------------------------------------------------------------------------------------------------------------------ Principal SHORT-TERM INVESTMENTS--2.3% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT--.0% Self Help Credit Union, 3.15%, 12/18/2001 100,000 100,000 U.S.TREASURY BILLS--2.3% 2.11%, 12/6/2001 1,501,000 1,500,760 2.06%, 12/13/2001 8,461,000 8,456,600 1.90%, 12/20/2001 1,262,000 1,260,902 2.06%, 12/27/2001 1,555,000 1,553,119 1.88%, 2/21/2002 8,541,000 8,508,288 21,279,669 TOTAL SHORT-TERM INVESTMENTS (cost $21,373,598) 21,379,669 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $807,560,572) 100.9% 946,009,608 LIABILITIES, LESS CASH AND RECEIVABLES (.9%) (8,130,998) NET ASSETS 100.0% 937,878,610 (A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF ASSETS AND LIABILITIES November 30, 2001 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities-See Statement of Investments 807,560,572 946,009,608 Cash 238,073 Receivable for investment securities sold 6,841,390 Dividends and interest receivable 518,378 Receivable for shares of Common Stock subscribed 311,416 Prepaid expenses 53,504 953,972,369 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 742,270 Payable for investment securities purchased 12,999,715 Payable for shares of Common Stock redeemed 2,140,542 Loan commitment fees payable--Note 2 4,042 Accrued expenses 207,190 16,093,759 - -------------------------------------------------------------------------------- NET ASSETS ($) 937,878,610 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 954,378,266 Accumulated investment (loss) (629,213) Accumulated net realized gain (loss) on investments (154,319,479) Accumulated net unrealized appreciation (depreciation) on investments-Note 4 138,449,036 - ------------------------------------------------------------------------------- NET ASSETS ($) 937,878,610 NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T Class Z - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS ($) 20,769,941 27,320,269 6,049,782 34,488,444 907,450 848,342,724 Shares Outstanding 2,334,088 3,123,625 691,129 3,847,061 103,438 94,729,780 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE ($) 8.90 8.75 8.75 8.96 8.77 8.96
SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF OPERATIONS Six Months Ended November 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends (net of $61,958 foreign taxes withheld at source) 3,741,917 Interest 561,028 TOTAL INCOME 4,302,945 EXPENSES: Investment advisory fee--Note 3(a) 3,657,768 Shareholder servicing costs--Note 3(c) 989,190 Distribution fees--Note 3(b) 129,175 Professional fees 40,657 Custodian fees--Note 3(c) 35,088 Prospectus and shareholders' reports 28,778 Registration fees 27,892 Loan commitment fees--Note 2 12,394 Directors' fees and expenses--Note 3(d) 4,226 Miscellaneous 6,990 TOTAL EXPENSES 4,932,158 INVESTMENT (LOSS) (629,213) - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments (120,832,165) Net unrealized appreciation (depreciation) on investments (32,030,978) NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (152,863,143) NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (153,492,356) SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF CHANGES IN NET ASSETS Six Months Ended November 30, 2001 Year Ended (Unaudited) May 31, 2001 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment (loss) (629,213) (4,576,889) Net realized gain (loss) on investments (120,832,165) 11,416,852 Net unrealized appreciation (depreciation) on investments (32,030,978) (289,687,119) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (153,492,356) (282,847,156) - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income--net: Class A shares -- (103,261) Class B shares -- (144,098) Class C shares -- (31,022) Class R shares -- (309,242) Class T shares -- (4,915) Class Z shares -- (7,478,089) Net realized gain on investments: Class A shares (165,788) (1,088,114) Class B shares (226,543) (1,959,270) Class C shares (50,036) (475,486) Class R shares (278,380) (2,962,396) Class T shares (7,493) (53,116) Class Z shares (6,883,770) (78,800,354) TOTAL DIVIDENDS (7,612,010) (93,409,363) - ------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 8,431,079 19,863,412 Class B shares 3,399,201 23,129,429 Class C shares 683,935 5,003,029 Class R shares 1,848,179 7,713,583 Class T shares 153,468 808,962 Class Z shares 102,379,687 432,740,293 The Fund STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Six Months Ended November 30, 2001 Year Ended (Unaudited) May 31, 2001 - ------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($) (CONTINUED): Dividends reinvested: Class A shares 139,138 993,655 Class B shares 207,301 1,874,837 Class C shares 37,249 367,856 Class R shares 278,500 3,271,071 Class T shares 7,482 58,013 Class Z shares 6,668,526 83,279,570 Cost of shares redeemed: Class A shares (6,210,081) (4,589,550) Class B shares (2,708,211) (4,864,455) Class C shares (629,384) (1,260,815) Class R shares (1,781,815) (3,630,414) Class T shares (99,548) (64,696) Class Z shares (148,945,337) (447,345,417) INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS (36,140,631) 117,348,363 TOTAL INCREASE (DECREASE) IN NET ASSETS (197,244,997) (258,908,156) - ------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 1,135,123,607 1,394,031,763 END OF PERIOD 937,878,610 1,135,123,607 Six Months Ended November 30, 2001 Year Ended (Unaudited) May 31, 2001 - ------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A (A) Shares sold 916,593 1,615,815 Shares issued for dividends reinvested 15,865 80,917 Shares redeemed (714,526) (368,784) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 217,932 1,327,948 - ------------------------------------------------------------------------------- CLASS B (A) Shares sold 368,857 1,795,954 Shares issued for dividends reinvested 24,049 154,054 Shares redeemed (304,201) (414,398) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 88,705 1,535,610 - ------------------------------------------------------------------------------- CLASS C Shares sold 74,611 376,931 Shares issued for dividends reinvested 4,316 30,202 Shares redeemed (72,420) (99,499) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6,507 307,634 - ------------------------------------------------------------------------------- CLASS R Shares sold 201,296 585,862 Shares issued for dividends reinvested 31,505 265,293 Shares redeemed (195,829) (301,523) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 36,972 549,632 - -------------------------------------------------------------------------------- CLASS T Shares sold 17,082 64,508 Shares issued for dividends reinvested 865 4,771 Shares redeemed (11,586) (5,157) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6,361 64,122 - -------------------------------------------------------------------------------- CLASS Z Shares sold 10,825,712 33,133,067 Shares issued for dividends reinvested 755,210 6,754,222 Shares redeemed (15,738,236) (34,622,883) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (4,157,314) 5,264,406 (A) DURING THE PERIOD ENDED NOVEMBER 30, 2001, 1,163 CLASS B SHARES REPRESENTING $10,463 WERE AUTOMATICALLY CONVERTED TO 1,146 TO CLASS A SHARES AND DURING THE PERIOD ENDED MAY 31, 2001, 13,538 CLASS B SHARES REPRESENTING $189,238 WERE AUTOMATICALLY CONVERTED TO 13,423 CLASS A SHARES. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (excluding portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements.
Six Months Ended November 30, 2001 Year Ended May 31, --------------------------- CLASS A SHARES (Unaudited) 2001 2000(a) - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 10.40 13.95 13.34 Investment Operations: Investment income (loss)--net (.01)(b) (.06)(b) .20(b) Net realized and unrealized gain (loss) on investments (1.42) (2.57) 1.76 Total from Investment Operations (1.43) (2.63) 1.96 Distributions: Dividends from investment income--net -- (.08) -- Dividends from net realized gain on investments (.07) (.84) (1.35) Total Distributions (.07) (.92) (1.35) Net asset value, end of period 8.90 10.40 13.95 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (%) (C) (13.71)(d) (19.84) 14.90(d) - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .56(d) 1.18 1.02(d) Ratio of net investment income (loss) to average net assets (.11)(d) (.51) 1.43(d) Portfolio Turnover Rate 55.32(d) 82.54 60.20 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 20,770 22,004 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.
Six Months Ended November 30, 2001 Year Ended May 31, ------------------------------ CLASS B SHARES (Unaudited) 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 10.26 13.88 13.34 Investment Operations: Investment income (loss)-net (.05)(b) (.16)(b) .15(b) Net realized and unrealized gain (loss) on investments (1.39) (2.56) 1.74 Total from Investment Operations (1.44) (2.72) 1.89 Distributions: Dividends from investment income-net -- (.06) -- Dividends from net realized gain on investments (.07) (.84) (1.35) Total Distributions (.07) (.90) (1.35) Net asset value, end of period 8.75 10.26 13.88 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (C) (13.99)(d) (20.58) 14.34(d) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .96(d) 1.95 1.55(d) Ratio of net investment income (loss) to average net assets (.52)(d) (1.30) 1.07(d) Portfolio Turnover Rate 55.32(d) 82.54 60.20 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 27,320 31,152 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 FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2001 Year Ended May 31, ---------------------------- CLASS C SHARES (Unaudited) 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 10.28 13.88 13.34 Investment Operations: Investment income (loss)-net (.05)(b) (.16)(b) .11(b) Net realized and unrealized gain (loss) on investments (1.41) (2.54) 1.78 Total from Investment Operations (1.46) (2.70) 1.89 Distributions: Dividends from investment income-net -- (.06) -- Dividends from net realized gain on investments (.07) (.84) (1.35) Total Distributions (.07) (.90) (1.35) Net asset value, end of period 8.75 10.28 13.88 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (C) (14.16)(d) (20.48) 14.34(d) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .98(d) 1.92 1.54(d) Ratio of net investment income (loss) to average net assets (.54)(d) (1.28) .77(d Portfolio Turnover Rate 55.32(d) 82.54 60.20 - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 6,050 7,037 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.
Six Months Ended November 30, 2001 Year Ended May 31, ------------------------------ CLASS R SHARES (Unaudited) 2001 2000(a) - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 10.46 14.00 13.34 Investment Operations: Investment income (loss)-net .00(b,c) (.03)(b) .26(b) Net realized and unrealized gain (loss) on investments (1.43) (2.58) 1.75 Total from Investment Operations (1.43) (2.61) 2.01 Distributions: Dividends from investment income-net -- (.09) -- Dividends from net realized gain on investments (.07) (.84) (1.35) Total Distributions (.07) (.93) (1.35) Net asset value, end of period 8.96 10.46 14.00 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (%) (13.63)(d) (19.64) 15.30(d - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .41(d) .84 .75(d) Ratio of net investment income (loss) to average net assets .03(d) (.20) 1.69(d) Portfolio Turnover Rate 55.32(d) 82.54 60.20 - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 34,488 39,854 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) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE. (D) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2001 Year Ended May 31, ----------------------------- CLASS T SHARES (Unaudited) 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 10.29 13.85 13.34 Investment Operations: Investment income (loss)--net (.04)(b) (.10)(b) .20(b) Net realized and unrealized gain (loss) on investments (1.41) (2.54) 1.66 Total from Investment Operations (1.45) (2.64) 1.86 Distributions: Dividends from investment income--net -- (.08) -- Dividends from net realized gain on investments (.07) (.84) (1.35) Total Distributions (.07) (.92) (1.35) Net asset value, end of period 8.77 10.29 13.85 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (%) (C) (14.05)(d) (20.08) 14.14(d) - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .84(d) 1.48 1.21(d) Ratio of net investment income (loss) to average net assets (.40)(d) (.82) 1.40(d) Portfolio Turnover Rate 55.32(d) 82.54 60.20 - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 907 998 456 (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.
Six Months Ended November 30, 2001 Year Ended May 31, ----------------------------------------------------------------- CLASS Z SHARES (Unaudited) 2001 2000(a) 1999 1998 1997 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA ($): Net asset value, beginning of period 10.46 14.00 12.72 11.78 10.01 9.25 Investment Operations: Investment income (loss)--net (.00)(b,c) (.04)(b) .08(b) (.01) .01 .02 Net realized and unrealized gain (loss) on investments (1.43) (2.58) 2.55 2.29 2.68 2.16 Total from Investment Operations (1.43) (2.62) 2.63 2.28 2.69 2.18 Distributions: Dividends from investment income--net -- (.08) -- -- (.02) (.02) Dividends from net realized gain on investments (.07) (.84) (1.35) (1.34) (.90) (1.40) Total Distributions (.07) (.92) (1.35) (1.34) (.92) (1.42) Net asset value, end of period 8.96 10.46 14.00 12.72 11.78 10.01 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (%) (13.63)(d) (19.69) 20.91 20.30 27.76 25.70 - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .49(d) .95 .96 .96 .97 1.03 Ratio of net investment income (loss) to average net assets (.05)(d) (.32) .60 (.11) .07 .22 Portfolio Turnover Rate 55.32(d) 82.54 60.20 75.88 70.41 66.52 - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets, end of period ($ X 1,000) 848,343 1,034,078 1,310,890 1,130,190 911,688 677,084 (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) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE. (D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS. The Fund 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. ("Mellon"), 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 and 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 and 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 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 and premiums on investments, is recognized on the accrual basis. Under the terms of the custody agreement, the fund received net earnings credits of $2,401 during the period ended November 30, 2001 based on available cash balances left on deposit. Income earned under this arrangement is included in interest income. (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. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) 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 based on prevailing market rates in effect at the time of borrowings. During the period ended November 30, 2001, the fund did not borrow under the facility. 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 the Agreement, 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 1 1/2% of the value of the average daily 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, 2001, 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% In excess of $400 million to $500 million . . . . . . .15 of 1% In excess of $500 million to $750 million . . . . . . .20 of 1% In excess of $750 million . . . . . . . . . . . . . . .25 of 1% In the event there is a reimbursement pursuant to the Agreement, NCM will reduce its sub-advisory fee by its pro-rata portion. The Distributor retained $1,948 during the period ended November 30, 2001 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 annual rates of .75 of 1% of the value of the average daily net assets of Class B and Class C shares and .25 of 1% of the value of the average daily net assets of Class T shares. During the period ended November 30, 2001, Class B, Class C and Class T shares were charged $104,454, $23,610 and $1,111, 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, 2001, Class A, Class B, Class C and Class T shares were charged $27,202, $34,818, $7,870 and $1,111, 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 with respect to servicing and/or maintaining shareholder The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) 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, 2001, Class Z shares were charged $429,249 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, 2001, the fund was charged $178,810 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 November 30, 2001, the fund was charged $35,088 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 annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. (e) During the period ended November 30, 2001, the fund incurred total brokerage commissions of $1,360,803, of which $6,732 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, 2001, amounted to $527,466,042 and $559,479,701, respectively. At November 30, 2001, accumulated net unrealized appreciation on investments was $138,449,036, consisting of $161,849,445 gross unrealized appreciation and $23,400,409 gross unrealized depreciation. At November 30, 2001, 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 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 9263 Boston, MA 02205-8501 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) 2002 Dreyfus Service Corporation 035SA1101 -----END PRIVACY-ENHANCED MESSAGE-----