-----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, QI0BTLNa4YuSnNdCFZYf6+8YZT7JXBB2IkqSuIxRUPEDncStw5/Hmiia1n5CWTE4 aUakPcuBhqNts4B6RymWBw== 0000030167-96-000003.txt : 19960208 0000030167-96-000003.hdr.sgml : 19960208 ACCESSION NUMBER: 0000030167-96-000003 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951030 FILED AS OF DATE: 19960207 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: 96512752 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 THE DREYFUS THIRD CENTURY FUND, INC. LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to report that for the six-month period ended November 30, 1995, The Dreyfus Third Century Fund posted a total return of 19.06%* compared to a total return of 14.87% for the Standard & Poor's 500 Composite Stock Price Index.** For the same 6-month period, the Fund placed in the top quartile of the Lipper Growth Funds Category.*** A LOOK AT THE ECONOMY The most salient issue confronting the equity markets in 1995 continued to be the Federal Reserve Board's vigilance in fighting inflation and overly expansive economic growth. The Fed did this by raising interest rates an unprecedented seven times in a 12-month period. The hope was that by doing so, businesses would seek to grow their bottom lines via productivity enhancements and market share growth rather than by simply raising prices, as had been the case in previous economic cycles. The question in investors' minds was, "Will the Fed continue to slay the inflation dragon by raising rates and thereby establish an unprecedented soft landing in the economy?" Investors kept a watchful eye on the economy in making decisions and for the most part the economic reports were consistent with the soft landing theme that we have followed all year. In a soft landing, the economy grows at a reasonably slow to moderate pace with little to no inflation after a period of significant growth, instead of adhering to the usual pattern of cyclical booms and busts. After some decent economic advances in both 1993 and 1994, investors became concerned that the Federal Reserve's vigilance in fighting inflation might have pushed the economy to the brink of recession. However, the economic information released through the third quarter of 1995 supported our belief that the Fed had achieved the elusive economic soft landing. The Fe d even sent the market a very positive signal in early July by cutting interest rates by a quarter of a percent, the first such reduction since the Fed began preemptive rate increases in February 1994. The Fed decreased rates once again in December. PORTFOLIO OVERVIEW In terms of the economic sectors of the Fund, we made several changes in the weightings. The primary areas of focus for the Fund have been Consumer Staples, Technology and Financials. During the last six months, we increased the weightings in carefully selected Technology stocks and Financials and maintained the exposure to Consumer Staples. We also reduced the Fund's weighting in the Industrial sector. These thematic changes are indicative of our overall view of what is driving the current economic environment. The increase in Technology weight represents our belief that this traditional growth sector, in spite of recent market weakness, is experiencing a secular improvement in demand driven by global competition and productivity growth. We also increased the Financials, believing that the Fed would continue to lower interest rates, and that our positions would continue to benefit from the consolidation trend in the industry. We reduced our weighting in industrial stocks due to continued concerns over the strength of the economy as well as valuation, both of which we believed indicated that better opportunities lay elsewhere. INDIVIDUAL ISSUES Year-to-date, there are many individual securities that have contributed nicely to the positive performance trends of the Fund. In the Consumer Cyclical sector, Regal Cinemas, Capital Cities ABC, Disney (Walt), Nike Cl.B and Phillips Electronics N.V. have had superior performance. Those names represent stocks that we believe can grow whatever the economic environment because of globally- oriented, diversified operations. Other stocks in the portfolio that have contributed to performance are Coca-Cola, Cordis, Amgen, Medtronic, Becton, Dickinson & Co., Bristol-Myers Squibb and Merck & Co. The food, beverage and household products companies have benefited from more positive investor sentiment toward their long-term, globally-driven growth rates. The health care stocks benefited from an improved outlook for their operations due to the rising optimism for new drug approvals and investor confidence in the consistency of their growth. Stock selection in the Financial area also contributed to the Fund's positive results as did a more benign interest-rate outlook. ADVANTA, Cl.A., a credit card company, banks such as Citicorp, Bank of New York and BayBanks, specialty financial services companies such as Green Tree Financial, a provider of mobile home financing, and Federal National Mortgage Association performed well for most of the semi-annual reporting period. In addition, insurers American International Group and Allstate rose on expectations of lower interest rates and possible industry consolidation. Our focus in the Technology sector was on stocks of companies which we believed had fairly established market positions, superior technology and outstanding management teams. Individual issues such as 3COM, Applied Materials, Hewlett-Packard, Linear Technology, and Sun Microsystems were all stellar performers. We believe each of these companies stands to benefit not just from demand for a single product, but from a broad, diversified product offering with multiple downstream beneficiaries. We believe these qualities lower the risk profile of the Fund's technology weighting relative to the typical technology stock and lower the general level of volatility in the sector. THE TAKEOVER THEME Overall, from a stock selection standpoint, the Fund has benefited from the rising tide of takeovers this year. Companies are under pressure to make revenues grow in a very competitive environment, and are therefore buying other firms to broaden and deepen their product offerings. Several Fund holdings were taken over this year: Cordis, a medical technology firm; BayBanks, a large regional banking firm; Capital Cities ABC, a broadcasting company; and Scott Paper, a paper manufacturer. There are several other names in the portfolio that we believe could benefit from this theme over the coming years. Going forward, we feel that the Federal Reserve's hold on the market will persist. However, this time the Fed's action may benefit stocks because we believe rates will be further reduced rather than raised, as the economy shows signs of slowing. Our goal, as ever, is to provide superior returns to our shareholders while honoring your socially responsible investment objectives. We are confident in the outlook for the Fund and appreciate your continued support. We take your socially responsible directives seriously as we endeavor to provide attractive returns on shareholder capital. Sincerely, [Maceo K. Sloan, CFA and Diane M. Coffey signature logos] Maceo K. Sloan, CFA Diane M. Coffey Portfolio Manager Portfolio Manager NCM Capital Management Group, Inc. The Dreyfus Corporation December 15, 1995 New York, N.Y. * Total return includes reinvestment of dividends and any capital gains paid. **SOURCE: LIPPER ANALYTICAL SERVICES - Reflects the reinvestment of income dividends and when 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. *** SOURCE: LIPPER ANALYTICAL SERVICES. The Fund ranked 129 out of 615 in Lipper's Growth Funds Category for the 6-month period ended 11/30/95.
THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED) COMMON STOCKS-95.7% SHARES VALUE _______ _______ CONSUMER DURABLES-.9%...Briggs & Stratton 94,500 $ 3,933,563 _______ CONSUMER NON-DURABLES-9.2% Campbell Soup.......................... 142,500 7,962,188 Coca-Cola.............................. 114,900 8,703,675 Gillette............................... 171,600 8,901,750 NIKE, Cl. B............................ 80,800 4,686,400 PepsiCo................................ 148,500 8,204,625 _______ 38,458,638 _______ CONSUMER SERVICES-4.9%...Disney (Walt) ...... 98,600 5,928,325 Regal Cinemas........................ (a) 150,000 6,450,000 Tribune................................ 61,000 3,934,500 Wendy's International.................. 200,000 4,125,000 _______ 20,437,825 _______ ELECTRONIC TECHNOLOGY-15.1% Applied Materials (a) 197,000 9,579,125 DSC Communications................... (a) 205,500 8,142,938 EMC.................................. (a) 494,100 8,832,037 Hewlett-Packard........................ 117,600 9,746,100 Linear Technology...................... 194,400 8,796,600 Sun Microsystems....................... 112,400 9,455,650 3Com................................... 186,300 8,523,225 _______ 63,075,675 _______ ENERGY-2.2%............Schlumberger 142,210 9,030,335 _______ FINANCE-17.7%...........ADVANTA, Cl. A ...... 109,800 4,556,700 AFLAC.................................. 99,100 4,038,325 Allstate............................... 123,070 5,045,870 American International Group........... 74,700 6,704,325 Bank of New York....................... 201,000 9,472,125 BankAmerica............................ 70,000 4,453,750 BayBanks............................... 101,300 8,407,900 Citicorp............................... 159,200 11,263,400 Federal National Mortgage Association.. 92,400 10,117,800 Green Tree Financial................... 352,800 9,966,600 _______ 74,026,795 _______ HEALTH SERVICES-.9%....... HealthCare COMPARE (a) 95,000 3,716,875 _______ HEALTH TECHNOLOGY-13.6%....... Amgen (a) 170,600 8,466,025 Becton, Dickinson & Co. ............... 129,400 9,025,650 Bristol-Myers Squibb................... 127,200 10,207,800 Johnson & Johnson...................... 113,140 9,800,752 Medtronic.............................. 139,600 7,660,550 Merck & Co............................. 188,762 11,679,649 _______ 56,840,426 _______ THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED) COMMON STOCKS (CONTINUED) SHARES VALUE _______ _______ INDUSTRIAL SERVICES-1.5%.... Grainger (W.W.) 95,700 $ 6,399,938 _______ NON-ENERGY MINERALS-.8% British Steel, A.D.S. 134,200 3,489,200 _______ PROCESS INDUSTRIES-4.4%...... ..Bemis 275,600 7,200,050 Sigma-Aldrich.......................... 155,900 7,678,075 Terra Industries....................... 275,700 3,756,412 _______ 18,634,537 _______ PRODUCER MANUFACTURING-4.5% AGCO ................................. 198,300 8,551,688 Dover.................................. 125,800 4,890,475 Philips Electronics, N.V............... 143,500 5,614,437 _______ 19,056,600 _______ RETAIL TRADE-3.3%........ Consolidated Stores (a) 256,000 6,336,000 Sears, Roebuck & Co.................... 191,700 7,548,187 _______ 13,884,187 _______ TECHNOLOGY SERVICES-9.8%.. Arrow Electronics 176,500 8,229,312 BMC Software......................... (a) 253,560 10,712,910 Computer Associates International...... 208,950 13,686,225 Oracle................................. (a) 187,000 8,485,125 _______ 41,113,572 _______ TRANSPORTATION-1.5%........ Federal Express (a) 85,820 6,415,045 _______ UTILITIES-5.4%. Century Telephone Enterprises 261,900 8,184,375 Duke Power............................. 30,000 1,346,250 Ericsson (LM) Telephone, Cl. B, A.D.R.. 180,000 4,275,000 GTE.................................... 203,430 8,671,204 _______ 22,476,829 _______ TOTAL COMMON STOCKS (cost $315,321,141).................. $400,990,040 ======= PRINCIPAL SHORT-TERM INVESTMENTS-4.2% AMOUNT _______ U.S. TREASURY BILLS:....5.30%, 12/21/95 ..... $ 8,392,000 $ 8,365,985 5.31%, 1/11/96......................... 9,164,000 9,107,733 _______ TOTAL SHORT-TERM INVESTMENTS (cost $17,475,836)................... $ 17,473,718 ======= TOTAL INVESTMENTS (cost $332,796,977) ............................... . 99.9% $418,463,758 ==== ======= CASH AND RECEIVABLES (NET)................. .1% $ 603,364 ==== ======= NET ASSETS.................................................................. 100.0% $419,067,122 ==== ======= NOTE TO STATEMENT OF INVESTMENTS; (a) Non-income producing. See independent accountants' review report and notes to financial statements.
THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995 (UNAUDITED) ASSETS: Investments in securities, at value (cost $332,796,977)-see statement..................................... $418,463,758 Cash.................................................................... 454,892 Receivable for investment securities sold............................... 5,229,700 Dividends receivable.................................................... 607,442 Receivable for subscriptions to Common Stock............................ 780 Prepaid expenses and other assets....................................... 39,936 _______ 424,796,508 LIABILITIES: Due to The Dreyfus Corporation and subsidiaries......................... $ 325,618 Payable for Common Stock redeemed....................................... 3,558,984 Payable for investment securities purchased............................. 1,617,566 Accrued expenses........................................................ 227,218 5,729,386 ______ ______ NET ASSETS ................................................................ $419,067,122 ======= REPRESENTED BY: Paid-in capital......................................................... $297,311,210 Accumulated undistributed investment income-net......................... 2,372,874 Accumulated undistributed net realized gain on investments.............. 33,716,257 Accumulated net unrealized appreciation on investments-Note 3........... 85,666,781 _______ NET ASSETS at value applicable to 47,261,288 outstanding shares of Common Stock, equivalent to $8.87 per share (150 million shares of $.331\3 par value authorized)........................................... $419,067,122 ======= See independent accountants' review report and notes to financial statements.
THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF OPERATIONS SIX MONTHS ENDED NOVEMBER 30, 1995 (UNAUDITED) INVESTMENT INCOME: INCOME: Cash dividends (net of $48,361 foreign taxes withheld at source)...... $ 2,685,973 Interest.............................................................. 569,390 ______ TOTAL INCOME...................................................... $ 3,255,363 EXPENSES: Investment advisory fee-Note 2(a)..................................... 1,481,492 Shareholder servicing costs-Note 2(b)................................. 631,145 Professional fees..................................................... 41,766 Prospectus and shareholders' reports.................................. 29,780 Directors' fees and expenses-Note 2(c)................................ 26,566 Custodian fees........................................................ 24,187 Registration fees..................................................... 17,101 Miscellaneous......................................................... 10,673 ______ TOTAL EXPENSES.................................................... 2,262,710 ______ INVESTMENT INCOME-NET............................................. 992,653 REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments-Note 3................................. $30,358,660 Net unrealized appreciation on investments.............................. 36,769,885 ______ NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 67,128,545 ______ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $68,121,198 ======= 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, 1995 1995 (UNAUDITED) ________ ________ OPERATIONS: Investment income-net............................................... $ 3,346,699 $ 992,653 Net realized gain on investments.................................... 12,839,259 30,358,660 Net unrealized appreciation on investments for the period........... 22,739,756 36,769,885 ________ ________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 38,925,714 68,121,198 ________ ________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income-net............................................... (2,986,999) __ Net realized gain on investments.................................... (46,183,615) __ ________ ________ TOTAL DIVIDENDS................................................... (49,170,614) __ ________ ________ CAPITAL STOCK TRANSACTIONS: Net proceeds from shares sold....................................... 68,296,100 126,962,401 Dividends reinvested................................................ 47,326,617 __ Cost of shares redeemed............................................. (126,884,560) (144,849,914) ________ ________ (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.......... (11,261,843) (17,887,513) ________ ________ TOTAL INCREASE (DECREASE) IN NET ASSETS....................... (21,506,743) 50,233,685 NET ASSETS: Beginning of period................................................. 390,340,180 368,833,437 ________ ________ End of period (including undistributed investment income-net: $1,380,221 and $2,372,874, respectively).......................... $ 368,833,437 $ 419,067,122 ========= ======== SHARES SHARES ________ ________ CAPITAL SHARE TRANSACTIONS: Shares sold......................................................... 9,474,361 15,283,180 Shares issued for dividends reinvested.............................. 7,548,119 __ Shares redeemed..................................................... (17,546,982) (17,509,131) ________ ________ NET (DECREASE) IN SHARES OUTSTANDING.............................. (524,502) (2,225,951) ========= ======== 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, 1995 ________________________________________________ PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED) ____ ____ ____ ____ ____ _______ Net asset value, beginning of period. $ 7.01 $ 7.79 $ 7.80 $ 8.48 $ 7.80 $ 7.45 ____ ____ ____ ____ ____ ____ INVESTMENT OPERATIONS: Investment income-net................ .06 .05 .04 .05 .07 .02 Net realized and unrealized gain (loss) on investments..................... 1.07 .26 .74 (.08) .65 1.40 ____ ____ ____ ____ ____ ____ TOTAL FROM INVESTMENT OPERATIONS... 1.13 .31 .78 (.03) .72 1.42 ____ ____ ____ ____ ____ ____ DISTRIBUTIONS: Dividends from investment income-net. (.12) (.08) (.05) (.04) (.07) __ Dividends from net realized gain on investments..................... (.23) (.22) (.05) (.61) (1.00) _- ____ ____ ____ ____ ____ ____ TOTAL DISTRIBUTIONS................ (.35) (.30) (.10) (.65) (1.07) __ ____ ____ ____ ____ ____ ____ Net asset value, end of period....... $ 7.79 $ 7.80 $ 8.48 $ 7.80 $ 7.45 $ 8.87 ==== ==== ==== ==== ==== ==== TOTAL INVESTMENT RETURN.................. 17.19% 3.92% 10.02% (.63%) 11.81% 19.06%* RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets 1.04% 1.08% 1.11% 1.17% 1.12% .57%* Ratio of net investment income to average net assets......................... 1.10% .83% .48% .52% .93% .25%* Portfolio Turnover Rate.............. 72.57% 47.92% 67.30% 71.70% 133.54% 46.88%* Net Assets, end of period (000's Omitted) $266,126 $443,533 $526,335 $390,340 $368,833 $419,067 *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. NCM Capital Management Group, Inc. ("NCM") serves as the Fund's sub-investment adviser. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the Fund's shares. The Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution Services, Inc., a provider of mutual fund administration services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc., 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. (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 distribution 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 TRANSACT IONS WITH AFFILIATES: (A) Pursuant to the management agreement ("Agreement") with Dreyfus, the management fee is computed at an annual rate of .75 of 1% of the average daily value of the Fund's net assets and is payable monthly. THE DREYFUS THIRD CENTURY FUND, INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) Pursuant to a Sub-Investment Advisory Agreement with NCM, 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 provide that if in any full fiscal year the aggregate expenses of the Fund, exclusive of taxes, interest on borrowings, brokerage and extraordinary expenses, exceed 11\2% of the average value of the Fund's net assets, the Fund may deduct from the fees to be paid to Dreyfus and NCM, or Dreyfus and NCM 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, 1995. Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, serves as the Fund's Transfer and Dividend Disbursing Agent. (B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, 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, 1995, the Fund was charged an aggregate of $357,579 pursuant to the Shareholder Services Plan. (C) Each director who is not an "affiliate person" as defined in the Act receives from the Fund an annual fee of $10,000. The Chairman of the Board receives an additional 25% of such compensation. NOTE 3-SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the six months ended November 30, 1995 amounted to $174,246,905 and $179,198,676, respectively. At November 30, 1995, accumulated net unrealized appreciation on investments was $85,666,781, consisting of $88,131,104 gross unrealized appreciation and $2,464,323 gross unrealized depreciation. At November 30, 1995, 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, 1995, and the related statements of operations and changes in net assets and financial highlights for the six month period ended November 30, 1995. 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, 1995 and financial highlights for each of the five years in the period ended May 31, 1995 and in our report dated July 3, 1995, we expressed an unqualified opinion on such statement of changes in net assets and financial highlights. [Ernst and Young LLP signature logo] New York, New York December 29, 1995 [Dreyfus lion "d" logo] 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 27705 CUSTODIAN The Bank of New York 90 Washington Street New York, NY 10286 TRANSFER AGENT & DIVIDEND DISBURSING AGENT Dreyfus Transfer, Inc. One American Express Plaza Providence, RI 02903 Further information is contained in the Prospectus, which must precede or accompany this report. Printed in U.S.A. 035SA9511 [Dreyfus logo] Third Century Fund, Inc. Semi-Annual Report November 30, 1995 -----END PRIVACY-ENHANCED MESSAGE-----