-----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, R/AMVFL5O8dAs6RixiVE7Ry5uDwcJDuDc9c5PGKrQht1W0qxWnIkNHpkqkUY1x6d IIAQ+hO6U041jx5EsHalTQ== 0000030167-97-000002.txt : 19970131 0000030167-97-000002.hdr.sgml : 19970131 ACCESSION NUMBER: 0000030167-97-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961031 FILED AS OF DATE: 19970130 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: 97514577 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 provide you with this report on The Dreyfus Third Century Fund, Inc. for the six-month period ended November 30, 1996. For this period, the Fund provided a total return of 15.14%* as compared to 14.37% for the Standard & Poor's 500 Composite Stock Price Index (the "S&P 500 Index") for the same period,** thus outperforming the market as measured by the S&P 500 Index. A SHAKY START The latest half of the fiscal year began with a very shaky start as nothing appeared right to the market pundits. For the economists, the economy had underlying strength which they believed would lead to future inflation. The market strategists believed that the market was overvalued, the Fed was about to raise interest rates to stave off inflation, and corporate profits were about to fall off of a cliff. For the average portfolio manager there was confusion, and for the average investor there was frustration leading to a sharp slowdown in money flows into mutual funds. Needless to say, this caused the mini-correction that the markets experienced in July when the various averages plunged anywhere from roughly 6% on the S&P 500 to 10% on the NASDAQ. But, as economic data began to appear that gave pause to the notion that the economy was about to surge out of control, cooler heads prevailed and the ascent began. In August the S&P recovered 2.11%, and in September the S&P returned 5.63%. Most naysayers finally capitulated and joined the party. November's economic data confirmed much of what appeared evident in October. The retail climate continues to be far from robust with a few select operators able to realize healthy comparable-store sales gains. The recently released employment report showed a slowing of U.S. job growth in November, suggesting economic growth and, more importantly, inflation remaining under control. Consequently the market's ascent continued, with strong results from the S&P 500 Index which rose 2.76% in October and 7.81% in November. These results pushed market returns for the year through November (+25%) into the same ballpark with the stellar results of 1995 (+37%). Not until December did second thoughts erode some of these gains. FAVORABLE STOCK SELECTIONS In this environment, we were highly selective in our choices of stocks. A number of the issues we chose that led the way for the period included BMC Software, 3Com, Computer Associates, EMC, Colgate Palmolive, Gillette, CPC Int'l, Citicorp, Greentree Acceptance Corp., SunAmerica, Bank of Boston, and Allstate. Each of these stocks not only outperformed the market but also outperformed their corresponding sectors. Each of these stocks exhibited superior earnings revisions during the previous six months and, because of their earnings stability, were rewarded by investors who remained skittish about the strength of the economy. Decisions to overweight certain sectors (compared to the S&P 500 Index) contributed nicely to performance as the Fund was weighted heavily in three strong areas. Technology regained investor attention after a dismal performance in the second quarter, as many people came to the conclusion that a slowdown in the capital goods cycle would have a minimal adverse impact on these companies. We currently intend to continue to take some profits, as available, in this area on strength but will remain overweighted, as we continue to like the long-term picture for Technology. Consumer Staple stocks continued to attract interest because of the stability of their earnings although many are beginning to look pricey. The Financial or Interest-sensitive stocks benefited from a rebound in the bond market as the Fed decided to leave rates unchanged, thus reducing investor anxiety over the prevalence of inflation in the economy. We currently remain overweighted in this sector as we believe that company-specific fundamentals remain intact and expect that interest rates will fall over the long term. SOCIALLY RESPONSIBLE POLICIES The Fund continues to see positive results in its effort to invest in a way that enhances the quality of life in America. We believe that our commitment to social investment is slowly but surely reaping social dividends. For example, we are witnessing a broad-based attack on the tobacco industry, especially its targeting of youthful customers. In the fight against tobacco, The Dreyfus Third Century Fund, along with a growing chorus of forces, including state and local governments and the American Medical Association, is calling for the general divestment of tobacco stocks, which, it should be noted, continue to underperform the S&P 500 Index. We also have positive news to report on a number of the Fund's core holdings. Bank America was recently named a winner of Business Ethics' Magazine's Award for Corporate Social Responsibility and Ethics for general ethics, environment and community banking. The Bank has just announced that it has granted stock options to all employees. Interestingly, the above-mentioned awards were sponsored by another leader in corporate social responsibility, Sears, Roebuck and Co., which the Fund has held for some time. On the diversity front, two of the Fund's companies, Johnson & Johnson and Disney, have announced that they will now be extending employee benefits to same-sex partners, a move which conforms to the Fund's objectives of ensuring equal employment opportunity for all Americans. OUTLOOK The current outlook for the stock market appears mixed to positive. Lower interest rates, modest economic growth, and continued money flows into mutual funds bode well for the market. However, somewhat extended valuations, the possibility of slowing economic growth and tough earnings comparisons to last year for individual companies, give us some concern. We look for 1997 to be a year for much more modest returns from the equity markets than 1996 or 1995 as a result of overall slowing economic conditions. The focus will continue to be on the ability of investment managers to outperform through superior stock selection. We thank you for your confidence in us and look forward to serving you well in the future. Sincerely,
[Stephon A. Jackson signature logo] [Maceo K. Sloan signature logo] [Eric Steedman signature logo] Stephon A. Jackson Maceo K. Sloan Eric Steedman Portfolio Manager Portfolio Manager Portfolio Manager NCM Capital Management NCM Capital Management The Dreyfus Corporation Group, Inc. Group, Inc.
December 20, 1996 New York, N.Y. * Total return includes reinvestment of dividends and any capital gains paid. **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 U.S. stock market performance.
THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS NOVEMBER 30, 1996 (UNAUDITED) Common Stocks-95.3% Shares Value ___________ ____________ Consumer Durables-.7% Oakwood Homes.......................... 190,000 $ 4,203,750 _____________ Consumer Non-Durables-11.9% CPC International...................... 145,000 12,071,250 Coca-Cola.............................. 194,800 9,959,150 Colgate-Palmolive...................... 140,000 12,967,500 Gillette............................... 141,600 10,443,000 Jones Apparel Group....................(a) 130,000 3,997,500 NIKE, Cl. B............................ 181,600 10,328,500 PepsiCo................................ 347,000 10,366,625 _____________ 70,133,525 _____________ Consumer Services-6.8% BET Holdings, Cl. A................... (a) 85,000 2,358,750 CUC International..................... (a) 418,550 11,039,256 Disney (Walt)......................... 198,600 14,646,750 Regal Cinemas......................... (a) 20,150 657,394 Service Corp. International........... 380,000 11,447,500 _____________ 40,149,650 _____________ Electronic Technology-13.6% Cisco Systems........................ (a) 235,000 15,950,625 Coherent............................. (a) 58,400 2,533,100 EMC.................................. (a) 314,100 10,129,725 Intel................................ 100,000 12,687,500 Linear Technology.................... 110,000 5,183,750 Panavision........................... 33,300 745,088 Seagate Technology................... (a) 300,000 11,850,000 Sun Microsystems..................... (a) 83,600 4,869,700 3COM................................. (a) 86,300 6,483,287 U.S. Robotics........................ (a) 120,000 9,435,000 _____________ 79,867,775 _____________ Finance-20.7% AFLAC.................................. 171,150 7,145,513 Allstate............................... 163,070 9,824,967 American International Group........... 74,700 8,590,500 BankAmerica............................ 175,000 18,025,000 Bank of Boston......................... 135,000 9,433,125 Citicorp............................... 149,200 16,300,100 Federal National Mortgage Association.. 410,600 16,937,250 Green Tree Financial................... 266,800 11,172,250 PNC Bank............................... 225,000 8,887,500 Summit Bancorp......................... 133,000 5,968,375 SunAmerica............................. 230,000 9,631,250 _____________ 121,915,830 _____________ Health Services-.2% HealthCare COMPARE.................... (a) 35,000 1,500,625 _____________ Health Technology-12.0% Amgen................................. (a) 200,600 12,211,525 Becton, Dickinson & Co................ 170,800 7,173,600 Bristol-Myers Squibb.................. 103,500 11,773,125 Guidant............................... 100,000 5,287,500 Johnson & Johnson..................... 199,080 10,576,125 THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED) Common Stocks (continued) Shares Value ___________ ____________ Health Technology (continued) Medtronic.............................. 169,600 $ 11,214,800 Merck & Co............................. 146,762 12,181,246 _____________ 70,417,921 _____________ Industrial Services-1.3% Schlumberger......................... 42,210 4,389,840 Seitel............................... (a) 75,000 3,037,500 _____________ 7,427,340 _____________ Process Industries-3.7% Avery Dennison........................ 100,000 7,062,500 Bemis................................. 300,600 10,708,875 Sigma-Aldrich......................... 60,900 3,806,250 _____________ 21,577,625 _____________ Producer Manufacturing-1.7% Dover............................... 185,800 9,917,075 _____________ Retail Trade-6.2% Consolidated Stores................. (a) 113,000 4,181,000 OfficeMax........................... (a) 400,000 5,800,000 Safeway............................. (a) 200,000 8,125,000 Sears, Roebuck & Co.................. 238,700 11,875,325 Viking Office Products............... (a) 200,000 6,262,500 _____________ 36,243,825 _____________ Technology Services-9.8% Arrow Electronics.................... (a) 191,500 10,293,125 BMC Software......................... (a) 257,120 11,184,720 Computer Associates International..... 188,425 12,388,944 Microsoft............................. (a) 70,000 10,981,250 Oracle................................ (a) 260,500 12,764,500 _____________ 57,612,539 _____________ Transportation-2.1% Comair Holdings...................... 212,500 5,285,937 Federal Express...................... (a) 165,640 7,329,570 _____________ 12,615,507 _____________ Utilities-4.6% CMS Energy............................. 75,000 2,437,500 Century Telephone Enterprises.......... 261,900 8,348,063 GTE.................................... 153,430 6,885,171 360 Communications..................... 200,000 4,750,000 WorldCom...............................(a) 200,000 4,625,000 _____________ 27,045,734 _____________ TOTAL COMMON STOCKS (cost $423,233,030).................. $560,628,721 ============= THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED) Principal Short-Term Investments-4.5% Amount Value ___________ ___________ U.S. Treasury Bills:.... 5.10%, 12/5/1996 $ 548,000 $ 547,622 4.84%, 12/12/1996...................... 1,161,000 1,159,038 5.09%, 12/19/1996...................... 2,220,000 2,213,984 4.93%, 1/2/1997........................ 3,968,000 3,950,183 4.97%, 1/16/1997....................... 9,880,000 9,816,274 4.99%, 1/23/1997....................... 2,530,000 2,511,253 4.98%, 2/20/1997....................... 6,271,000 6,199,824 _____________ TOTAL SHORT-TERM INVESTMENTS (cost $26,401,451)................... $ 26,398,178 ============= TOTAL INVESTMENTS (cost $449,634,481)................................... 99.8% $587,026,899 ======== ============= CASH AND RECEIVABLES (NET).................................................. .2% $ 1,089,346 ======== ============= NET ASSETS.................................................................. 100.0% $588,116,245 ======== ============= Notes to Statement of Investments: (a) Non-income producing. SEE NOTES TO FINANCIAL STATEMENTS. THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1996 (UNAUDITED) Cost Value ____________ ____________ ASSETS: Investments in securities-See Statement of Investments $449,634,481 $587,026,899 Cash....................................... 1,081,933 Dividends receivable....................... 458,554 Receivable for subscriptions to Common Stock 94,373 Prepaid expenses........................... 62,062 _____________ 588,723,821 _____________ LIABILITIES: Due to The Dreyfus Corporation and affiliates 413,246 Payable for Common Stock redeemed.......... 4,972 Accrued expenses........................... 189,358 _____________ 607,576 _____________ NET ASSETS.................................................................. $588,116,245 ============== REPRESENTED BY: Paid-in capital............................ $371,291,741 Accumulated undistributed investment income-net 1,217,413 Accumulated net realized gain (loss) on investments 78,214,673 Accumulated net unrealized appreciation (depreciation) ........ on investments-Note 4 137,392,418 _____________ NET ASSETS.................................................................. $588,116,245 ============== SHARES OUTSTANDING (150 million shares of $ .331\3 par value Common Stock authorized).......... 55,244,825 NET ASSET VALUE, offering and redemption price per share.................... $10.65 ======= SEE NOTES TO FINANCIAL STATEMENTS. THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF OPERATIONS SIX MONTHS ENDED NOVEMBER 30, 1996 (UNAUDITED) INVESTMENT INCOME: INCOME: Cash dividends............................. $ 2,417,373 Interest................................... 652,678 _______________ Total Income......................... $ 3,070,051 EXPENSES: Management fee-Note 3(a)................... 1,836,067 Shareholder servicing costs-Note 3(b)...... 596,977 Professional fees.......................... 63,878 Prospectus and shareholders' reports....... 41,567 Registration fees.......................... 32,873 Directors' fees and expenses-Note 3(c)..... 27,468 Custodian fees-Note 3(b)................... 17,650 Interest-Note 2(a)......................... 631 Miscellaneous.............................. 9,068 _______________ Total Expenses....................... 2,626,179 _______________ INVESTMENT INCOME-NET....................................................... 443,872 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4: Net realized gain (loss) on investments.... $39,139,593 Net unrealized appreciation (depreciation) on investments 33,767,241 _______________ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 72,906,834 _______________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $73,350,706 ================ SEE NOTES TO FINANCIAL STATEMENTS. THE DREYFUS THIRD CENTURY FUND, INC. STATEMENT OF CHANGES IN NET ASSETS Six Months Ended November 30, 1996 Year Ended (Unaudited) May 31, 1996 _____________ _____________ OPERATIONS: Investment income-net............................................... $ 443,872 $ 1,507,162 Net realized gain (loss) on investments............................. 39,139,593 62,835,662 Net unrealized appreciation (depreciation) on investments........... 33,767,241 54,728,281 _____________ _____________ Net Increase (Decrease) in Net Assets Resulting from Operations... 73,350,706 119,071,105 _____________ _____________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income-net............................................... __ (2,113,842) Net realized gain on investments.................................... __ (27,118,179) _____________ _____________ Total Dividends................................................... __ (29,232,021) _____________ _____________ CAPITAL STOCK TRANSACTIONS: Net proceeds from shares sold....................................... 297,583,076 347,500,025 Dividends reinvested................................................ __ 27,798,267 Cost of shares redeemed............................................. (256,269,680) (360,518,670) _____________ _____________ Increase( Decrease) in Net Assets from Capital Stock Transactions. 41,313,396 14,779,622 _____________ _____________ Total Increase (Decrease) in Net Assets....................... 114,664,102 104,618,706 NET ASSETS: Beginning of Period................................................. 473,452,143 368,833,437 _____________ _____________ End of Period....................................................... $ 588,116,245 $ 473,452,143 ============== =============== Undistributed investment income-net..................................... $ 1,217,413 $ 773,541 _____________ _____________ Shares Shares _____________ _____________ CAPITAL SHARE TRANSACTIONS: Shares sold......................................................... 30,094,491 40,415,926 Shares issued for dividends reinvested.............................. __ 3,419,227 Shares redeemed..................................................... (26,051,304) (42,120,754) _____________ _____________ Net Increase (Decrease) in Shares Outstanding..................... 4,043,187 1,714,399 ============== ===============
SEE 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 November 30, 1996 Year Ended May 31, ___________________________________________________________ PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992 _____________ _______ _______ _______ _______ ________ Net asset value, beginning of period.. $ 9.25 $ 7.45 $ 7.80 $ 8.48 $ 7.80 $ 7.79 _______ _______ _______ _______ _______ ________ Investment Operations: Investment income-net................. .01 .03 .07 .05 .04 .05 Net realized and unrealized gain (loss) on investments...................... 1.39 2.39 .65 (.08) .74 .26 _______ _______ _______ _______ _______ ________ Total from Investment Operations...... 1.40 2.42 .72 (.03) .78 .31 _______ _______ _______ _______ _______ ________ Distributions: Dividends from investment income-net.. .- (.05) (.07) (.04) (.05) (.08) Dividends from net realized gain on investments .- (.57) (1.00) (.61) (.05) (.22) _______ _______ _______ _______ _______ ________ Total Distributions................... .- (.62) (1.07) (.65) (.10) (.30) _______ _______ _______ _______ _______ ________ Net asset value, end of period........ $10.65 $ 9.25 $ 7.45 $ 7.80 $ 8.48 $ 7.80 ======== ======= ======= ======== ======== ========= TOTAL INVESTMENT RETURN................... 15.14%(1) 33.63% 11.81% (.63%) 10.02% 3.92% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets .54%(1) 1.11% 1.12% 1.17% 1.11% 1.08% Ratio of net investment income to average net assets............... .09%(1) .36% .93% .52% .48% .83% Portfolio Turnover Rate............... 37.91%(1) 92.08% 133.54% 71.70% 67.30% 47.92% Average commission rate paid(2)....... $.0608 -- -- -- -- -- Net Assets, end of period (000's Omitted) $588,116 $473,452 $368,833 $390,340 $526,335 $443,533 (1) Not annualized. (2) For fiscal years beginning June 1, 1996 the Fund is required to disclose its average commission rate paid per share for purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS. THE DREYFUS THIRD CENTURY FUND, INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1-SIGNIFICANT ACCOUNTING POLICIES: The Dreyfus Third Century Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 ("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"). NCM Capital Management Group, Inc. ("NCM") serves as the Fund's sub-investment adviser. Premier Mutual Fund Services, Inc. acts as the distributor of the Fund's shares which are sold to the public without a sales charge. (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-BANK LINE OF CREDIT: The Fund participates with other Dreyfus-managed funds in a $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. Interest is charged to the Fund at rates which are related to the Federal Funds rate in effect at the time of borrowings. For the period ended November 30, 1996, the Fund did not borrow under the line of credit. NOTE 3-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 value of the Fund's average daily net assets and is payable monthly. The Agreement further provides that if in any full fiscal year the aggregate expenses of the Fund, exclusive of taxes, brokerage, interest on borrowings, and extraordinary expenses, exceed 11\2% of the value of the Fund's average net assets, the Fund may deduct from the fees paid to Dreyfus, or Dreyfus will bear such excess. There was no expenses reimbursement for the period ended November 30, 1996. 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 fees are payable monthly by Dreyfus, and are bases upon the value of the Fund's average daily net assets , computed at the following rates: Average Net Assets ___________________ 0 to $400 million................................... .10 of 1% $400 to $500 million................................ .15 of 1% $500 to $750 million................................ .20 of 1% In excess of $750 million........................... .25 of 1% (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 certain allocated expenses of providing personal services and/or maintaining shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the Fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended November 30, 1996, the Fund was charged an aggregate of $429,980 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. Such compensation amounted to $128,645 during the period ended November 30, 1996. The Fund entered into a custody agreement with Mellon to provide custodial services for the Fund. During the period ended November 30, 1996, $17,650 was paid to Mellon pursuant to the custody agreement. (c) Each director who is not an "affiliated 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 4-SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended November 30, 1996 amounted to $200,821,770 and $177,919,860, respectively. At November 30, 1996, accumulated net unrealized appreciation on investments was $137,392,418, consisting of $138,280,430 gross unrealized appreciation and $888,012 gross unrealized depreciation. At November 30, 1996, 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). [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 Mellon Bank, N.A. One Mellon Bank Center Pittsburgh, PA 15258 TRANSFER AGENT & DIVIDEND DISBURSING AGENT Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Printed in U.S.A. 035SA9611 [Dreyfus logo] Third Century Fund, Inc. Semi-Annual Report November 30, 1996 -----END PRIVACY-ENHANCED MESSAGE-----