UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
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Investment Company Act file number |
811-02192 | |||||
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The Dreyfus Third Century Fund, Inc. |
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(Exact name of Registrant as specified in charter) |
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c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166 |
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(Address of principal executive offices) (Zip code) |
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Bennett A. MacDougall, Esq. 200 Park Avenue New York, New York 10166 |
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(Name and address of agent for service) |
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Registrant's telephone number, including area code: |
(212) 922-6400 | |||||
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Date of fiscal year end:
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05/31 |
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Date of reporting period: |
08/31/16 |
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FORM N-Q
Item 1. Schedule of Investments.
STATEMENT OF INVESTMENTS
Dreyfus Third Century Fund
August 31, 2016 (Unaudited)
| Common Stocks - 99.0% | Shares | Value ($) | |
| Banks - 3.3% | |||
| Citizens Financial Group | 39,000 | 966,030 | |
| People's United Financial | 270,300 | 4,392,375 | |
| PNC Financial Services Group | 50,900 | 4,586,090 | |
| 9,944,495 | |||
| Capital Goods - 8.4% | |||
| 3M | 40,400 | 7,241,296 | |
| Cummins | 9,500 | 1,193,295 | |
| General Electric | 290,450 | 9,073,658 | |
| Quanta Services | 206,600 | a | 5,315,818 |
| Rockwell Collins | 29,200 | 2,443,748 | |
| 25,267,815 | |||
| Consumer Durables & Apparel - 3.8% | |||
| NIKE, Cl. B | 104,800 | 6,040,672 | |
| PVH | 48,700 | 5,247,912 | |
| 11,288,584 | |||
| Diversified Financials - 6.9% | |||
| American Express | 26,450 | 1,734,591 | |
| BlackRock | 13,400 | 4,995,654 | |
| Franklin Resources | 50,000 | 1,825,000 | |
| Northern Trust | 74,000 | 5,223,660 | |
| State Street | 82,100 | 5,766,704 | |
| T. Rowe Price Group | 18,000 | 1,251,720 | |
| 20,797,329 | |||
| Energy - 4.9% | |||
| Exxon Mobil | 31,100 | 2,710,054 | |
| Hess | 36,400 | 1,976,520 | |
| Phillips 66 | 21,900 | b | 1,718,055 |
| Spectra Energy | 118,950 | 4,236,999 | |
| Valero Energy | 72,500 | 4,012,875 | |
| 14,654,503 | |||
| Food, Beverage & Tobacco - 8.9% | |||
| Campbell Soup | 72,300 | 4,390,056 | |
| General Mills | 64,300 | 4,553,726 | |
| J.M. Smucker | 29,000 | 4,111,910 | |
| Kellogg | 59,500 | 4,891,495 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Common Stocks - 99.0% (continued) | Shares | Value ($) | |
| Food, Beverage & Tobacco - 8.9% (continued) | |||
| Mondelez International, Cl. A | 126,900 | 5,713,038 | |
| PepsiCo | 27,750 | 2,962,313 | |
| 26,622,538 | |||
| Health Care Equipment & Services - 5.5% | |||
| AmerisourceBergen | 57,950 | 5,039,912 | |
| Cardinal Health | 62,700 | 4,995,309 | |
| Cigna | 12,050 | 1,545,533 | |
| Henry Schein | 30,200 | a | 4,946,458 |
| 16,527,212 | |||
| Household & Personal Products - 3.2% | |||
| Clorox | 34,300 | 4,494,672 | |
| Kimberly-Clark | 39,000 | 4,994,340 | |
| 9,489,012 | |||
| Insurance - 3.0% | |||
| Hartford Financial Services Group | 39,500 | 1,622,265 | |
| Marsh & McLennan Cos. | 67,500 | 4,565,025 | |
| Prudential Financial | 35,400 | 2,810,052 | |
| 8,997,342 | |||
| Materials - 1.8% | |||
| Ecolab | 44,150 | 5,432,657 | |
| Media - 2.8% | |||
| Time Warner | 63,200 | 4,955,512 | |
| Walt Disney | 38,200 | 3,608,372 | |
| 8,563,884 | |||
| Pharmaceuticals, Biotechnology & Life Sciences - 11.1% | |||
| Agilent Technologies | 125,900 | 5,914,782 | |
| Biogen | 10,750 | a | 3,285,523 |
| Gilead Sciences | 60,000 | 4,702,800 | |
| Johnson & Johnson | 12,100 | 1,444,014 | |
| Merck & Co. | 76,400 | 4,797,156 | |
| PerkinElmer | 24,100 | 1,283,325 | |
| Vertex Pharmaceuticals | 8,700 | a | 822,237 |
| Waters | 36,950 | a | 5,812,604 |
| Zoetis | 103,900 | 5,309,290 | |
| 33,371,731 | |||
| Retailing - 2.6% | |||
| Best Buy | 9,800 | 377,104 | |
| Signet Jewelers | 41,600 | 3,410,368 | |
| Tiffany & Co. | 56,600 | b | 4,039,542 |
| 7,827,014 |
| Common Stocks - 99.0% (continued) | Shares | Value ($) | |
| Semiconductors & Semiconductor Equipment - 3.5% | |||
| Intel | 82,000 | 2,942,980 | |
| NVIDIA | 97,400 | b | 5,974,516 |
| Texas Instruments | 21,300 | 1,481,202 | |
| 10,398,698 | |||
| Software & Services - 13.2% | |||
| Accenture, Cl. A | 57,800 | 6,647,000 | |
| Alphabet, Cl. A | 10,000 | a | 7,898,500 |
| Alphabet, Cl. C | 10,600 | a | 8,130,730 |
| Citrix Systems | 60,100 | a | 5,240,720 |
| Microsoft | 178,600 | 10,262,356 | |
| Teradata | 41,800 | a | 1,326,314 |
| 39,505,620 | |||
| Technology Hardware & Equipment - 7.3% | |||
| Apple | 50,075 | 5,312,958 | |
| Cisco Systems | 255,425 | 8,030,562 | |
| Corning | 71,300 | 1,617,797 | |
| EMC | 62,575 | 1,814,049 | |
| Motorola Solutions | 67,000 | 5,158,330 | |
| 21,933,696 | |||
| Telecommunication Services - 1.5% | |||
| CenturyLink | 163,200 | 4,536,960 | |
| Transportation - 3.2% | |||
| Delta Air Lines | 90,200 | 3,314,850 | |
| Expeditors International of Washington | 24,300 | 1,230,795 | |
| Southwest Airlines | 141,600 | 5,222,208 | |
| 9,767,853 | |||
| Utilities - 4.1% | |||
| Eversource Energy | 11,400 | 615,258 | |
| Exelon | 164,500 | 5,593,000 | |
| NextEra Energy | 51,000 | 6,167,940 | |
| 12,376,198 | |||
| Total Common Stocks (cost $248,532,076) | 297,303,141 | ||
| Other Investment - 1.0% | Shares | Value ($) | |
| Registered Investment Company; | |||
| Dreyfus Institutional Preferred Plus Money Market Fund | |||
| (cost $2,889,990) | 2,889,990 | c | 2,889,990 |
| Total Investments (cost $251,422,066) | 100.0 | % | 300,193,131 |
| Cash and Receivables (Net) | .0 | % | 78,863 |
| Net Assets | 100.0 | % | 300,271,994 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| a Non-income producing security. |
| b Security, or portion thereof, on loan. At August 31, 2016, the value of the fund’s securities on loan was $11,614,792 and the value |
| of the collateral held by the fund was $11,961,825, consisting of U.S. Government & Agency securities. |
| c Investment in affiliated money market mutual fund. |
| Portfolio Summary (Unaudited)† | Value (%) |
| Software & Services | 13.2 |
| Pharmaceuticals, Biotechnology & Life Sciences | 11.1 |
| Food, Beverage & Tobacco | 8.9 |
| Capital Goods | 8.4 |
| Technology Hardware & Equipment | 7.3 |
| Diversified Financials | 6.9 |
| Health Care Equipment & Services | 5.5 |
| Energy | 4.9 |
| Utilities | 4.1 |
| Consumer Durables & Apparel | 3.8 |
| Semiconductors & Semiconductor Equipment | 3.5 |
| Banks | 3.3 |
| Household & Personal Products | 3.2 |
| Transportation | 3.2 |
| Insurance | 3.0 |
| Media | 2.8 |
| Retailing | 2.6 |
| Materials | 1.8 |
| Telecommunication Services | 1.5 |
| Money Market Investment | 1.0 |
| 100.0 | |
| † Based on net assets. | |
| See notes to financial statements. |
STATEMENT OF INVESTMENTS
Dreyfus Third Century Fund
August 31, 2016 (Unaudited)
The following is a summary of the inputs used as of August 31, 2016 in valuing the fund’s investments:
| Level 2 - Other | ||||
| Level 1 - Unadjusted | Significant | Level 3 -Significant | ||
| Quoted Prices | Observable Inputs | Unobservable Inputs | Total | |
| Assets ($) | ||||
| Investments in Securities: | ||||
| Equity Securities— | ||||
| Domestic Common | ||||
| Stocks† | 293,892,773 | - | - | 293,892,773 |
| Equity Securities— | ||||
| Foreign Common | ||||
| Stocks† | 3,410,368 | - | - | 3,410,368 |
| Mutual Funds | 2,889,990 | - | - | 2,889,990 |
| † | See Statement of Investments for additional detailed categorizations. |
NOTES
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. For open short positions, asked prices are used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not
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traded on an exchange are valued at their net asset value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.
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. U.S. Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service (the"Service") approved by the Board Members ("Board").These securities are generally categorized within Level 2 of the fair value hierarchy.
The Service’s procedures are reviewed by Dreyfus under the general supervision of the Board.
Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.
When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.
For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.
Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, The Bank of New York Mellon is required to replace the securities for the
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benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral.
Effective July 1, 2015, the fund adopted new accounting guidance under Accounting Standards Update No. 2014-11, which requires expanded disclosures related to financial assets pledged in secured financing transactions (such as securities lending) and the related contractual maturity terms of these secured transactions. The type of securities loaned for which cash collateral was received, is indicated in the Statement of Investments. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis.
At August 31, 2016, accumulated net unrealized appreciation on investments was $48,771,065, consisting of $54,752,659 gross unrealized appreciation and $5,981,594 gross unrealized depreciation.
At August 31, 2016, 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).
Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the SEC on Form N-CSR.
Item 2. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
FORM N-Q
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Dreyfus Third Century Fund, Inc.
By: /s/ Bradley J. Skapyak
Bradley J. Skapyak
President
Date: October 14, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Bradley J. Skapyak
Bradley J. Skapyak
President
Date: October 14, 2016
By: /s/ James Windels
James Windels
Treasurer
Date: October 14, 2016
EXHIBIT INDEX
(a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
SECTION 302 CERTIFICATION
I, Bradley J. Skapyak, certify that:
1. I have reviewed this report on Form N-Q of The Dreyfus Third Century Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
By: /s/ Bradley J. Skapyak
Bradley J. Skapyak
President
Date: October 14, 2016
SECTION 302 CERTIFICATION
I, James Windels, certify that:
1. I have reviewed this report on Form N-Q of The Dreyfus Third Century Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
By: /s/ James Windels
James Windels
Treasurer
Date: October 14, 2016