-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, CPuY26/3lYRH0+5o4NoSdyWWP1PCDch69J4QQf+1t2cXQ5kuTS7EZkJHbbLxssEz 3xANYDvOOALnm9DLH9jgxw== 0000030167-95-000004.txt : 19950515 0000030167-95-000004.hdr.sgml : 19950515 ACCESSION NUMBER: 0000030167-95-000004 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941130 FILED AS OF DATE: 19950213 SROS: NONE 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: 1940 Act SEC FILE NUMBER: 811-02192 FILM NUMBER: 95509346 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 SEMI-ANNUAL REPORT LETTER TO SHAREHOLDERS Dear Shareholder: These past several months have been a particularly challenging period for making new investments in The Dreyfus Third Century Fund, given stock price volatility and investor nervousness over the recent Federal Reserve Board actions to increase interest rates. During this period, we focused on themes that we thought would benefit from strong economic growth and little or no inflation, while keeping an eye on the trend of rising interest rates. Because of the change in the interest rate outlook, the Fund's holdings in financial stocks that are sensitive to interest rates lost some ground. Small capitalization stocks also suffered until we had an opportunity to dispose of most of those issues. SPECIFIC PORTFOLIO CHANGES In making portfolio changes, we sold some of the winners in technology believing that the shares reflected fair valuations given the recent run-up in prices and that the opportunity for upward valuation would be limited. We also reduced positions in some consumer product stocks that had done well, like Coca Cola and Gillette, replacing the reduced weightings with stocks in the health care area that had been under pressure due to governmental attempts at reform. These names include pharmaceutical companies, Schering-Plough and Amgen. We took some profits in Merck & Co., but still hold a significant position in the stock. We also added consumer products companies like food processors IBP, Hershey Foods and Cott, which had been weak due to concerns over changing consumer buying habits and loss of industry pricing power. We sold many traditional financials, namely banks, because of the interest rate situation and replaced them with more fee-oriented financial services companies, like Merrill Lynch and Franklin Resources, that we currently believe will do well, as the continuing shift towards saving and investing supports the growth of their franchises. Additionally, we have been adding to utility stocks, which have been oversold for quite some time and now compare quite favorably with fixed-income securities because of their above-average yields. We currently believe the depressed valuations of these securities make them attractive investments. FUND PERFORMANCE Overall, the recent volatile nature of the market has made for a difficult environment for investors. For the three months ended November 30, 1994, the Dreyfus Third Century Fund was down -5.62%* versus -3.88% for the Standard & Poor's 500 Composite Stock Price Index.** For the six months ended November 30, 1994, the Fund was down -3.08%* versus a gain of .80% for the S&P 500 Index.** Since August 2, 1994, NCM Capital Management Group, Inc., the Fund's Sub-Investment Adviser, has provided investment advisory assistance and day-to-day management of the Fund's portfolio. We appreciate your decision to invest in a socially responsible manner by committing your assets to the Third Century Fund. We are very pleased to serve you as an investor and thank you for your interest in the Fund. Sincerely, (Signatue Logo--Diane M. Coffey) Diane M. Coffey Portfolio Manager The Dreyfus Corporation December 14, 1994 New York, N.Y. * Total return represents the change during the period in a hypothetical account with dividends reinvested. ** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of income dividends and, where applicable, capital gain distributions. The Standard & Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index of stock market performance.
THE DREYFUS THIRD CENTURY FUND, INC. November 30, 1994 ASSET ALLOCATION (EXHIBIT "A") FIVE LARGEST SECTORS Technology...................................................... 15.1% Finance......................................................... 13.5 Producer Manufacturing.......................................... 11.6 Utilities....................................................... 8.1 Non-Energy Minerals............................................. 7.4 TEN LARGEST HOLDINGS Tosco........................................................... 2.5 % AT & T.......................................................... 2.2 Anadarko Petroleum.............................................. 2.1 Colgate-Palmolive............................................... 2.0 Southern........................................................ 1.8 Philips Electronics, N.V........................................ 1.7 Duke Power...................................................... 1.6 American Barrick Resources...................................... 1.6 Leggett & Platt................................................. 1.6 Sun Microsystems................................................ 1.5
All percentages shown above are based on Total Net Assets.
THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS NOVEMBER 30, 1994 (UNAUDITED) COMMON STOCKS--92.0% SHARES VALUE -------------- ------------- CONSUMER DURABLES--2.8% American Greetings, Cl. A 154,100 $ 4,276,275 Leggett & Platt........................ 160,000 5,660,000 ------------- 9,936,275 ------------- CONSUMER NON-DURABLES--7.2% Coca-Cola................................ 71,000 3,629,875 Colgate-Palmolive...................... 113,800 6,828,000 Cott................................... 130,000 1,316,250 Gillette............................... 66,000 4,851,000 Hershey Foods.......................... 45,700 2,136,475 IBP............................... 119,500 4,018,188 Sunbeam-Oster.......................... 89,400 2,167,950 ------------- 24,947,738 ------------- CONSUMER SERVICES--1.4%. Disney (Walt)......................... 108,200 4,720,225 ------------- ENERGY--5.6% Anadarko Petroleum.................... 185,400 7,416,000 Imperial Oil........................... 100,000 3,325,000 Tosco.................................. 294,600 8,690,700 ------------- 19,431,700 ------------- FINANCE--13.5%.......... ADVANTA, Cl. A 109,800 3,019,500 AFLAC.................................. 148,100 5,016,888 American International Group........... 47,900 4,388,837 Citicorp............................... 98,900 4,116,712 Dean Witter, Discover & Co............. 40,000 1,400,000 Federal National Mortgage Association.. 64,400 4,580,450 Franklin Resources..................... 116,000 4,408,000 Green Tree Financial................... 176,400 4,873,050 Merrill Lynch ......................... 127,700 4,852,600 Midlantic.............................. 162,300 4,300,950 NationsBank............................ 75,600 3,392,550 PXRE................................... 111,000 2,886,000 ------------- 47,235,537 -------------- HEALTH CARE--7.3%......... Amgen.................................. (a) 90,400 5,277,100 Cordis............................ (a) 82,400 4,861,600 Forest Laboratories.............. (a) 67,500 3,164,063 Medtronic.............................. 69,600 3,688,800 Merck & Co............................. 105,302 3,922,500 Schering-Plough........................ 61,700 4,619,787 ------------- 25,533,850 ------------- INDUSTRIAL SERVICES--1.2%. Fluor.................................. 99,400 4,261,775 ------------- NON-ENERGY MINERALS--7.4% American Barrick Resources............ 271,900 5,675,913 British Steel, A.D.S................... 175,200 4,401,900 Cleveland-Cliffs....................... 89,400 3,140,175 Nucor.................................. 68,700 3,744,150 Phelps Dodge........................... 75,300 4,310,925 Santa Fe Pacific Gold................ (a) 208,461 2,631,820 Terra Industries....................... 179,900 1,956,412 ------------- 25,861,295 ------------- THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1994 (UNAUDITED) COMMON STOCKS (CONTINUED) SHARES VALUE -------------- -------------- PROCESS INDUSTRIES--3.1%.... Chesapeake............................. 128,200 $ 4,198,550 First Mississippi...................... 128,000 2,832,000 Mead................................... 85,700 3,920,775 ------------- 10,951,325 ------------- PRODUCER MANUFACTURING--11.6%......... AGCO................................... 83,200 3,796,000 Armstrong World Industries............. 64,100 2,564,000 Briggs & Stratton...................... 131,400 4,401,900 Clark Equipment...................... (a) 95,900 5,286,488 Deere & Co............................. 41,300 2,653,525 Eaton.................................. 86,400 4,114,800 Federal-Mogul.......................... 200,100 4,052,025 Ingersoll-Rand.. ...................... 127,900 4,124,775 Parker-Hannifin........................ 82,100 3,602,137 Philips Electronics, N.V............... 193,600 5,856,400 ------------- 40,452,050 ------------- RETAIL TRADE--7.1%........... American Stores........................ 168,500 4,444,188 Dillard Department Stores, Cl. A....... 152,800 4,297,500 Heilig-Meyers.......................... 160,800 4,221,000 Penney (J.C.).......................... 109,400 5,032,400 Pier 1 Imports......................... 413,200 3,253,950 Schlumberger........................... 63,900 3,394,687 Seventh Generation................. (a,b) 57,000 89,775 -------------- 24,733,500 ------------- TECHNOLOGY--15.1%.......... Applied Materials.................... (a) 64,200 3,073,575 BMC Software......................... (a) 109,200 4,804,800 Computer Associates International...... 112,100 5,100,550 EMC.................................. (a) 192,800 4,338,000 Hewlett-Packard........................ 42,100 4,125,800 Linear Technology...................... 82,000 3,956,500 Motorola............................... 56,400 3,179,550 Oracle Systems....................... (a) 95,000 3,918,750 Seagate Technology................... (a) 160,000 3,820,000 Sun Microsystems.................... (a) 160,100 5,363,350 Tandem Computers..................... (a) 201,800 3,430,600 Teradyne............................. (a) 134,500 4,203,125 Texas Instruments...................... 42,500 3,208,750 ------------- 52,523,350 ------------- TRANSPORTATION--.6%....... Federal Express........................ (a) 36,700 2,087,313 ------------- UTILITIES--8.1%........... AT & T................................. 156,900 7,707,713 Duke Power............................. 140,800 5,737,600 SBC Communications..................... 96,700 4,000,962 Southern............................... 298,900 6,202,175 Sprint................................. 155,700 4,651,537 ------------- 28,299,987 ------------- TOTAL COMMON STOCKS (cost $317,972,717)................... $320,975,920 ============= THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1994 (UNAUDITED) PRINCIPAL SHORT-TERM INVESTMENTS--7.5% AMOUNT VALUE -------------- -------------- U.S. TREASURY BILLS: 4.53%, 12/1/94......................... $ 348,000 $ 348,000 4.60%, 12/8/94......................... 222,000 221,801 4.56%, 12/15/94........................ 178,000 177,685 4.97%, 12/22/94........................ 13,791,000 13,751,018 5.02%, 1/12/95......................... 5,662,000 5,628,840 5.00%, 1/19/95......................... 6,172,000 6,129,996 ------------- TOTAL SHORT-TERM INVESTMENTS (cost $26,257,340)................... $ 26,257,340 ============= TOTAL INVESTMENTS (cost $344,230,057)................................. 99.5% $347,233,260 ===== ============= CASH AND RECEIVABLES (NET).................................................. .5% $1,621,246 ===== ============ NET ASSETS.................................................................. 100.0% $348,854,506 ====== =============
NOTES TO STATEMENT OF INVESTMENTS: (a) Non-income producing. (b) Security restricted as to public resale. Investments in restricted securities, with an aggregate cost of $950,000, representing approximately .27% of net assets; ACQUISITION PURCHASE PERCENTAGE OF ISSUER DATE PRICE NET ASSETS VALUATION* - ------ ---------------------- -------------- ---------------- Seventh Generation........................... 9/26/90 $16.67 .03% 10% discount to market value
* The valuation of this security has been determined in good faith under the direction of the Board of Directors. See independent accountants' review report and notes to financial statements.
THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1994 (UNAUDITED) ASSETS: Investments in securities, at value (cost $344,230,057)_see statement..................................... $347,233,260 Receivable for investment securities sold............................... 9,482,958 Dividends receivable.................................................... 536,982 Receivable for subscriptions to Common Stock............................ 780 Prepaid expenses and other assets....................................... 86,327 -------------- 357,340,307 LIABILITIES: Due to The Dreyfus Corporation.......................................... $ 222,780 Due to Custodian........................................................ 1,137,644 Payable for investment securities purchased............................. 6,997,290 Payable for Common Stock redeemed....................................... 45,382 Accrued expenses........................................................ 82,705 8,485,801 ------------ -------------- NET ASSETS ................................................................ $348,854,506 ============== REPRESENTED BY: Paid-in capital........................................................ $296,410,042 Accumulated undistributed investment income_net......................... 2,785,907 Accumulated undistributed net realized gain on investments.............. 46,655,354 Accumulated net unrealized appreciation on investments_Note 3........... 3,003,203 -------------- NET ASSETS at value applicable to 46,132,436 outstanding shares of Common Stock, equivalent to $7.56 per share (150 million shares of $.33 1/3 par value authorized).......................................... $348,854,506 =============
STATEMENT OF OPERATIONS SIX MONTHS ENDED NOVEMBER 30, 1994 (UNAUDITED) INVESTMENT INCOME: INCOME: Cash dividends (net of $5,500 foreign taxes withheld at source)....... $ 2,517,603 Interest.............................................................. 1,275,137 -------------- TOTAL INCOME...................................................... $ 3,792,740 EXPENSES: Investment advisory fee--Note 2(a).................................... 1,251,617 Sub-investment advisory fee_Note 2(a)................................. 141,170 Shareholder servicing costs_Note 2(b)................................. 414,083 Professional fees..................................................... 73,606 Custodian fees........................................................ 38,715 Prospectus and shareholders' reports.................................. 22,528 Directors' fees and expenses_Note 2(c)................................ 20,523 Registration fees..................................................... 16,998 Miscellaneous......................................................... 48,114 -------------- TOTAL EXPENSES.................................................... 2,027,354 -------------- INVESTMENT INCOME--NET............................................ 1,765,386 -------------- REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS: Net realized gain on investments--Note 3............................... $ 9,953,401 Net unrealized (depreciation) on investments............................ (23,153,937) -------------- NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (13,200,536) -------------- NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (11,435,150) ==============
See independent accountants' review report and notes to financial statements.
THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED SIX MONTHS ENDED MAY 31, NOVEMBER 30, 1994 1994 (UNAUDITED) ------------ ----------------- OPERATIONS: Investment income--net............................................ $ 2,524,629 $ 1,765,386 Net realized gain on investments.................................. 43,262,547 9,953,401 Net unrealized (depreciation) on investments for the period....... (42,310,849) (23,153,937) ------------ ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS. 3,476,327 (11,435,150) ------------ ------------- DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net............................................ (2,357,310) --- Net realized gain on investments.................................. (35,948,936) --- --------------- ----------- TOTAL DIVIDENDS................................................. (38,306,246) ----- -------------- ----------- CAPITAL STOCK TRANSACTIONS: Net proceeds from shares sold..................................... 133,886,002 29,778,298 Dividends reinvested.............................................. 36,994,901 ___ Cost of shares redeemed........................................... (272,045,796) (59,828,822) -------------- ----------- (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........ (101,164,893) (30,050,524) -------------- ------------ TOTAL (DECREASE) IN NET ASSETS.............................. (135,994,812) (41,485,674) NET ASSETS: Beginning of period............................................... 526,334,992 390,340,180 --------------- ------------- End of period (including undistributed investment income_net: $1,020,521 and $2,785,907, respectively)........................ $390,340,180 $348,854,506 ============== =============
SHARES SHARES -------------- ----------- CAPITAL SHARE TRANSACTIONS: Shares sold....................................................... 15,961,262 3,832,363 Shares issued for dividends reinvested............................ 4,572,917 --- Shares redeemed................................................... (32,586,800) (7,711,668) -------------- --------- NET (DECREASE) IN SHARES OUTSTANDING............................ (12,052,621) (3,879,305) ============== ============
See independent accountants' review report and notes to financial statements.
THE DREYFUS THIRD CENTURY FUND, INC. FINANCIAL HIGHLIGHTS Contained below is per share operating performance data for a share of Common Stock outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. SIX MONTHS ENDED YEAR ENDED MAY 31, NOVEMBER 30, 1994 -------------------------------------------------- PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED) ------ ------- ----- ------- ------ ---------- Net asset value, beginning of period.. $ 6.33 $ 7.01 $ 7.79 $ 7.80 $ 8.48 $ 7.80 -------- ------ ------- ------- ------- ------- INVESTMENT OPERATIONS: Investment income--net................ .21 .06 .05 .04 .05 .04 Net realized and unrealized gain (loss) on investments...................... .84 1.07 .26 .74 (.08) (.28) ------ ------- ------- ------- ------- ----- TOTAL FROM INVESTMENT OPERATIONS.... 1.05 1.13 .31 .78 (.03) (.24) ------ ----- ------- ------- ------- ------- DISTRIBUTIONS: Dividends from investment income--net. (.18) (.12) (.08) (.05) (.04) ---- Dividends from net realized gain on investments...................... (.19) (.23) (.22) (.05) (.61) ---- ------ ------- ------- ------- ------- ------- TOTAL DISTRIBUTIONS................. (.37) (.35) (.30) (.10) (.65) ---- ------- ------- ------- ------- ------- ------- Net asset value, end of period........ $ 7.01 $ 7.79 $ 7.80 $ 8.48 $ 7.80 $ 7.56 ====== ======= =======- ======= ======= ======== TOTAL INVESTMENT RETURN 17.26% 17.19% 3.92% 10.02% (.63%) (3.08%)* RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets 1.05% 1.04% 1.08% 1.11% 1.17% .54%* Ratio of net investment income to average net assets.......................... 3.19% 1.10% .83% .48% .52% .48%* Portfolio Turnover Rate............... 162.82% 72.57% 47.92% 67.30% 71.70% 61.56%* Net Assets, end of period (000's Omitted $195,658 $266,126 $443,533 $526,335 $390,340 $348,855
* Not annualized. See independent accountants' review report and notes to financial statements. THE DREYFUS THIRD CENTURY FUND, INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES: The Fund is registered under the Investment Company Act of 1940 ("Act") as a diversified open-end management investment company. The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser. Tiffany Capital Advisors, Inc. ("Tiffany") served as the Fund's sub-investment adviser until August 1, 1994. On August 2, 1994, the Fund's shareholders approved a new sub-investment advisory agreement between Dreyfus and NCM Capital Management Group, Inc. to replace the existing sub-investment advisory agreement between the Fund and Tiffany. Prior to August 24, 1994, the Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, acted as the exclusive distributor of the Fund's shares, which are sold to the public without a sales charge. Effective August 24, 1994, Dreyfus became a direct subsidiary of Mellon Bank, N.A. On August 24, 1994, Premier Mutual Fund Services, Inc. (the "Distributor") was engaged as the Fund's distributor. The Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional Administration Services, Inc., a provider of mutual fund administration services, the parent company of which is Boston Institutional Group, Inc. (A) PORTFOLIO VALUATION: Investments in securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Directors. Short-term investments are carried at amortized cost, which approximates value. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. (B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, amortization of discount on investments, is recognized on the accrual basis. (C) 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 distributio n requirements of the Internal Revenue 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 Internal Revenue Code, and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes. NOTE 2--INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES: (A) Fees payable by the Fund pursuant to the provisions of an Investment Advisory Agreement with Dreyfus and prior to August 2, 1994 a Sub-Investment Advisory Agreement with Tiffany (together "Agreements") are payable monthly and computed on the average daily value of the Fund's net assets at the following annual rates:
THE DREYFUS THIRD CENTURY FUND, INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) TOTAL NET ASSETS DREYFUS TIFFANY ------------------- ------------- ------------- The first $200 million............................................ .65 of 1% .10 of 1% $200 up to $300 million........................................... .40 of 1% .35 of 1% In excess of $300 million......................................... .375 of 1% .375 of 1%
Pursuant to a new Sub-Investment Advisory Agreement with NCM Capital Management Group, Inc., the sub-investment advisory fee is computed at an annual rate of .10 of 1% on the first $500 million and .20 of 1% on the excess of the average daily value of the Fund's net assets and is payable monthly by Dreyfus. The Agreements further provided that if in any full fiscal year the aggregate expenses of the Fund, excluding taxes, interest on borrowings, brokerage and extraordinary expenses, exceed 1 1/2% of the average value of the Fund's net assets, the Fund may deduct from the fees to be paid to Dreyfus and Tiffany, or Dreyfus and Tiffany will bear, such excess, up to the amount of their respective fees, on a pro rata basis in proportion to the relative fees otherwise payable to each pursuant to the Agreements. There was no expense reimbursement for the six months ended November 30, 1994. (B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of 1% of the value of the Fund's average daily net assets for servicing shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the Fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the six months ended November 30, 1994, the Fund was charged an aggregate of $189,350 pursuant to the Shareholder Services Plan. (C) Prior to August 24, 1994, certain officers and directors of the Fund were "affiliated persons," as defined in the Act, of the Investment Adviser and/or Dreyfus Service Corporation. Each director who is not an "affiliated person" receives an annual fee of $10,000. NOTE 3--SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities, other than short-term securities, for the six months ended November 30, 1994 amounted to $259,581,788 and $190,589,420, respectively. At November 30, 1994, accumulated net unrealized appreciation on investments was $3,003,203, consisting of $21,125,302 gross unrealized appreciation and $18,122,099 gross unrealized depreciation. At November 30, 1994, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). THE DREYFUS THIRD CENTURY FUND, INC. REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS SHAREHOLDERS AND BOARD OF DIRECTORS THE DREYFUS THIRD CENTURY FUND, INC. We have reviewed the accompanying statement of assets and liabilities of The Dreyfus Third Century Fund, Inc., including the statement of investments, as of November 30, 1994, and the related statements of operations and changes in net assets and financial highlights for the six month period ended November 30, 1994. These financial statements and financial highlights are the responsibility of the Fund's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, which will be performed for the full year with the objective of expressing an opinion regarding the financial statements and financial highlights taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the interim financial statements and financial highlights referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the statement of changes in net assets for the year ended May 31, 1994 and financial highlights for each of the five years in the period ended May 31, 1994 and in our report dated June 30, 1994, we expressed an unqualified opinion on such statement of changes in net assets and financial highlights. (SIGNATURE LOGO) New York, New York January 10, 1995 The Dreyfus 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 27701 Custodian The Bank of New York 90 Washington Street New York, NY 10286 Transfer Agent & Dividend Disbursing Agent The Shareholder Services Group, Inc. P.O. Box 9671 Providence, RI 02940 Further information is contained in the Prospectus, which must precede or accompany this report. Printed in U.S.A. 035SA9411 printed on recycled paper Third Century Fund, Inc. Semi-Annual Report November 30, 1994 EX-99.B 2 TABLE FOR PIE CHART IN PRESIDENT'S LETTER The Dreyfus Third Century Fund, Inc. November 30, 1994 Asset Allocation |----------------------------------------------------------- |Common Stocks 92.0 % | |Cash Equivalents 8.0 % | ----------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----