The Dreyfus Premier
Third Century
Fund, Inc.
ANNUAL REPORT
May 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
16 Financial Highlights
18 Notes to Financial Statements
24 Report of Independent Auditors
25 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
The Dreyfus Premier
Third Century Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for The Dreyfus Premier Third
Century Fund, Inc., covering the 12-month period from June 1, 1999 through May
31, 2000. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio managers, Paul A. Hilton and Maceo K. Sloan.
The past 12 months have been highly volatile but generally rewarding for
investors in the U.S. stock market. While the market's advance during most of
1999 was primarily led by technology and other growth stocks, these particular
sectors of the stock market corrected substantially during the first five months
of 2000. In contrast, small-cap stocks and value-oriented stocks languished
during most of 1999, but began to show encouraging signs of strength in 2000.
Higher interest rates represented the primary reason for this shift in market
leadership. Faced with evidence that long-dormant inflationary pressures were
building, the Federal Reserve Board raised short-term interest rates six times
during the reporting period, for a total increase of 1.75 percentage points.
Because higher interest rates have the potential to erode the earnings of growth
companies, many investors turned their attention from highly valued "new
economy" growth stocks to more reasonably priced "old economy" value stocks.
We appreciate your confidence over the past year, and we look forward to your
continued participation in The Dreyfus Premier Third Century Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
DISCUSSION OF FUND PERFORMANCE
Paul A. Hilton and Maceo K. Sloan, Portfolio Managers
How did The Dreyfus Premier Third Century Fund, Inc. perform relative to its
benchmark?
For the 12-month period ended May 31, 2000, The Dreyfus Premier Third Century
Fund, Inc. Class Z shares produced a total return of 20.91%.(1) In contrast, the
fund' s benchmark, the Standard & Poor's 500 Composite Stock Price Index ("S&P
500 Index") produced a total return of 10.47% for the same period.(2)
The public offering of the fund's Class A, B, C, R and T shares commenced on
August 31, 1999. From August 31, 1999 to May 31, 2000 the fund produced a total
return of 14.90% for Class A shares, 14.34% for Class B shares, 14.34% for Class
C shares, 15.30% for Class R shares, and 14.14% for Class T shares.
We attribute the fund's strong performance to our emphasis on technology stocks,
a market sector that performed exceptionally well during most of the reporting
period, and an area in which we made good choices in our individual stock
selection. In addition, our holdings in the financial and, to a lesser degree,
the healthcare sectors also helped drive performance.
What is the fund's investment approach?
The fund seeks to provide capital growth, with current income as a secondary
objective. The fund looks for growth-oriented companies that generally exhibit
three characteristics: improving profitability measurements, a pattern of
consistent earnings and reasonable prices.
To pursue these goals, the fund invests primarily in the common stocks of
companies that, in the opinion of the fund's management, meet traditional
investment standards while simultaneously conducting their businesses in a
manner that contributes to the enhancement of the quality of life in America.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
Three primary factors influenced the fund's performance over the past year:
heightened volatility within the stock market, specifically within the
technology sector; continued strength of the U.S. economy; and the series of six
short-term interest-rate hikes -- for a total increase of 1.75 percentage points
-- initiated by the Federal Reserve Board in an attempt to slow economic growth
and forestall the buildup of inflationary pressures. The uncertainty caused by
these interest-rate hikes created volatility for the financial markets and the
fund.
From the beginning of the reporting period until mid-March 2000, the U.S. stock
market advanced sharply, driven primarily by gains within the technology sector,
amidst considerable volatility. The fund benefited from maintaining an
above-average exposure to this sector. By mid-March, however, that trend had
reversed itself when many technology stocks, especially those related to the
Internet, quickly fell out of favor.
In response, we trimmed our technology exposure, choosing instead to deploy
those assets primarily to diversified financial services companies. That move
proved beneficial for the fund. Already a significant contributor to the fund's
overall performance, we concentrated our financial holdings in global,
diversified financial services companies that we believed were less likely to be
affected by rising interest rates. Examples include Citigroup, American
International Group and American Express, a firm that includes three divisions:
a money management arm, an issuer of credit cards, and a travel company.
What is the fund's current strategy?
We have continued to concentrate on financial companies that have global
subdivisions and franchises. As the U.S. economy continues to prosper, we are
optimistic that companies in this area can also continue to grow. In addition,
we have begun to increase our exposure to health care companies. In our view,
many of these companies are very reasonably valued and offer predictable and
consistent earnings.
Can you give us an update on the fund's socially responsible investing
activities?
Over the past six months, fund management has hosted two meetings with the
management of Coca-Cola in an effort to encourage them to increase the amount of
recycled content polyethylene terepthalate (PET) in their plastic soft drink
containers. While recycled content in aluminum beverage containers and glass
bottles is roughly about 50% and 25%, respectively, currently there is almost no
recycled content in most plastic bottles.
We are very pleased to inform shareholders that Coca-Cola is working toward a
new goal of increasing the amount of recycled PET to 10% in one-quarter of the
bottles they produce this year. Coca-Cola is the first soft drink company to
make such an effort across their complete product line. Currently, the company
spends over $2 billion annually on recycled content materials in the U.S. alone
and over $5 billion worldwide.
June 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. ON AUGUST 31, 1999,
THE FUND ADOPTED A MULTICLASS STRUCTURE. EXISTING FUND SHARES WERE DESIGNATED AS
CLASS Z SHARES AND CLASS Z SHARES WERE CLOSED TO NEW INVESTORS. PAST PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE
SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF
U.S. STOCK MARKET PERFORMANCE.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in The Dreyfus Premier Third
Century Fund, Inc. Class Z shares and the Standard & Poor's 500 Composite Stock
Price Index
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS Z SHARES OF THE
DREYFUS PREMIER THIRD CENTURY FUND, INC. ON 3/29/72 (INCEPTION DATE) TO A
$10,000 INVESTMENT MADE IN THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
ON THAT DATE. ON AUGUST 31, 1999, THE FUND ADOPTED A MULTI-CLASS STRUCTURE.
EXISTING FUND SHARES WERE DESIGNATED AS CLASS Z SHARES AND CLASS Z SHARES WERE
CLOSED TO NEW INVESTORS. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON
3/31/72 IS USED AS THE BEGINNING VALUE ON 3/29/72. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS A, CLASS B, CLASS C,
CLASS R AND CLASS T SHARES WILL VARY FROM THE PERFORMANCE OF CLASS Z SHARES
SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES OF CLASS Z SHARES. THE DREYFUS PREMIER THIRD CENTURY FUND,
INC. PRIMARILY SEEKS CAPITAL GROWTH THROUGH INVESTMENT IN COMMON STOCKS OF
COMPANIES THAT, IN THE OPINION OF THE FUND'S MANAGEMENT, NOT ONLY MEET
TRADITIONAL INVESTMENT STANDARDS, BUT ALSO SHOW EVIDENCE THAT THEY CONDUCT THEIR
BUSINESS IN A MANNER THAT CONTRIBUTES TO THE ENHANCEMENT OF THE QUALITY OF LIFE
IN AMERICA. CURRENT INCOME IS A SECONDARY GOAL. THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF OVERALL
STOCK MARKET PERFORMANCE WHICH DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND
OTHER EXPENSES AND IS NOT SUBJECT TO THE SAME SOCIALLY RESPONSIBLE INVESTMENT
CRITERIA AS THE DREYFUS PREMIER THIRD CENTURY FUND, INC. FURTHER INFORMATION
RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE,
IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE
IN THIS REPORT.
<TABLE>
Average Annual Total Returns AS OF 5/31/00
Inception From
Date 1 Year 5 Years 10 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS Z SHARES 3/29/72 20.91% 25.56% 16.61% 13.81%
------------------------------------------------------------------------------------------------------------------------------------
Actual Aggregate Total Returns AS OF 5/31/00
Inception From
Date 1 Year 5 Years 10 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
WITH SALES CHARGE (5.75%) 8/31/99 -- -- -- 8.32%
WITHOUT SALES CHARGE 8/31/99 -- -- -- 14.90%
CLASS B SHARES
WITH REDEMPTION((+)) 8/31/99 -- -- -- 10.34%
WITHOUT REDEMPTION 8/31/99 -- -- -- 14.34%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 8/31/99 -- -- -- 13.34%
WITHOUT REDEMPTION 8/31/99 -- -- -- 14.34%
CLASS R SHARES 8/31/99 -- -- -- 15.30%
CLASS T SHARES
WITH SALES CHARGE (4.5%) 8/31/99 -- -- -- 8.99%
WITHOUT SALES CHARGE 8/31/99 -- -- -- 14.14%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
The Fund
<TABLE>
STATEMENT OF INVESTMENTS
May 31, 2000
COMMON STOCKS--98.8% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL SERVICES--1.1%
Omnicom Group 184,000 15,444,500
CONSUMER NON-DURABLES--3.6%
Clorox 398,200 15,778,675
Coca-Cola 430,000 22,951,250
Kimberly-Clark 183,000 11,071,500
49,801,425
CONSUMER SERVICES--1.6%
Time Warner 291,600 23,018,175
ELECTRONIC TECHNOLOGY--21.8%
Applied Materials 105,000 (a) 8,767,500
Cisco Systems 874,200 (a) 49,774,762
Cree 100,200 (a) 12,172,734
EMC 262,000 (a) 30,473,875
International Business Machines 420,700 45,146,369
Lexmark International Group, Cl. A 180,300 (a) 12,575,925
Nokia, ADS 430,400 22,380,800
Nortel Networks 501,000 27,210,586
Sanmina 160,000 (a) 10,180,000
Solectron 490,000 (a) 16,200,625
Sun Microsystems 428,700 (a) 32,849,138
Tellabs 373,700 (a) 24,267,144
Vishay Intertechnology 164,000 (a) 11,603,000
303,602,458
ENERGY MINERALS--2.1%
BP Amoco, ADS 544,600 29,612,625
FINANCE--18.6%
AFLAC 330,000 17,056,875
American Express 467,700 25,168,106
American International Group 308,062 34,676,229
Capital One Financial 175,600 8,297,100
Citigroup 397,050 24,691,547
Fannie Mae 750,700 45,135,838
Marsh & McLennan Cos. 193,300 21,275,081
Merrill Lynch 310,000 30,573,750
Providian Financial 205,000 18,232,188
State Street 183,800 20,493,700
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCE (CONTINUED)
Wells Fargo 310,000 14,027,500
259,627,914
HEALTH SERVICES--1.4%
Cardinal Health 301,000 19,527,375
HEALTH TECHNOLOGY--14.8%
Amgen 483,400 (a) 30,756,325
Guidant 382,000 (a) 19,338,750
Johnson & Johnson 279,000 24,970,500
Merck & Co. 634,000 47,312,250
Pfizer 928,500 41,376,281
Schering-Plough 872,500 42,207,188
205,961,294
INDUSTRIAL SERVICES--1.3%
Halliburton 362,000 18,462,000
PROCESS INDUSTRIES--1.4%
Avery Dennison 140,400 8,599,500
Ecolab 298,000 11,398,500
19,998,000
PRODUCER MANUFACTURING--3.1%
Miller (Herman) 365,000 9,855,000
Minnesota Mining & Manufacturing 189,600 16,258,200
Tyco International 362,000 17,036,625
43,149,825
RETAIL TRADE--6.3%
Dollar General 345,000 6,037,500
Gap 382,100 13,397,381
Home Depot 582,250 28,421,078
Safeway 310,600 (a) 14,326,425
Wal-Mart Stores 448,000 25,816,000
87,998,384
SEMICONDUCTORS--5.0%
Altera 130,000 (a) 11,163,750
Intel 255,000 31,795,313
Linear Technology 444,800 26,271,000
69,230,063
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY SERVICES--7.6%
America Online 312,400 (a) 16,557,200
Microsoft 600,000 (a) 37,537,500
Oracle 717,000 (a) 51,534,375
105,629,075
UTILITIES--9.1%
AES 203,300 (a) 17,737,925
AT&T - Liberty Media Group, Cl. A 585,000 (a) 25,922,812
Bell Atlantic 318,000 16,814,250
Broadwing 150,000 3,571,875
Calpine 90,000 (a) 9,534,375
Global Crossing 258,000 (a) 6,466,125
Vodafone AirTouch, ADR 507,750 23,261,297
WorldCom 608,845 (a) 22,907,793
126,216,452
TOTAL COMMON STOCKS
(cost $917,124,701) 1,377,279,565
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Principal
SHORT-TERM INVESTMENTS--1.9% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--.0%
Self Help Credit Union,
5.59%, 6/21/2000 100,000 100,000
U.S.TREASURY BILLS--1.9%
5.66%, 7/13/2000 1,012,000 1,006,161
5.68%, 8/3/2000 2,821,000 2,795,132
5.77%, 8/17/2000 5,658,000 5,592,367
5.47%, 8/31/2000 7,910,000 7,800,367
5.79%, 9/14/2000 9,349,000 9,196,237
26,390,264
TOTAL SHORT-TERM INVESTMENTS
(cost $26,477,995) 26,490,264
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TOTAL INVESTMENTS (cost $943,602,696) 100.7% 1,403,769,829
LIABILITIES, LESS CASH AND RECEIVABLES (.7%) (9,738,066)
NET ASSETS 100.0% 1,394,031,763
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 943,602,696 1,403,769,82
Cash 86,732
Receivable for investment securities sold 10,725,192
Receivable for shares of Common Stock subscribed 901,900
Dividends and interest receivable 847,767
Prepaid expenses 70,628
1,416,402,048
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 1,043,194
Payable for investment securities purchased 20,064,738
Payable for shares of Common Stock redeemed 892,618
Accrued expenses 369,735
22,370,285
--------------------------------------------------------------------------------
NET ASSETS ($) 1,394,031,763
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 877,602,538
Accumulated undistributed investment income--net 8,215,512
Accumulated net realized gain (loss) on investments 48,046,580
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 460,167,133
--------------------------------------------------------------------------------
NET ASSETS ($) 1,394,031,763
NET ASSET VALUE PER SHARE
<TABLE>
Class A Class B Class C Class R Class T Class Z
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Assets ($) 10,998,539 20,812,038 5,234,304 45,640,853 456,431 1,310,889,598
Shares Outstanding 788,208 1,499,310 376,988 3,260,457 32,955 93,622,688
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value
Per Share ($) 13.95 13.88 13.88 14.00 13.85 14.00
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Year Ended May 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $43,007 foreign taxes withheld at source) 19,745,291
Interest 962,959
TOTAL INCOME 20,708,250
EXPENSES:
Investment advisory fee--Note 3(a) 9,708,257
Shareholder servicing costs--Note 3(c) 2,247,137
Prospectus and shareholders' reports 171,037
Registration fees 140,272
Custodian fees--Note 3(c) 91,659
Professional fees 77,230
Distribution fees--Note 3(b) 58,264
Directors' fees and expenses--Note 3(d) 35,751
Interest expense--Note 2 20,803
Loan commitment fees--Note 2 11,205
Miscellaneous 16,129
TOTAL EXPENSES 12,577,744
INVESTMENT INCOME--NET 8,130,506
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 64,954,708
Net unrealized appreciation (depreciation) on investments 161,776,525
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 226,731,233
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 234,861,739
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended May 31,
-----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net 8,130,506 (1,067,941)
Net realized gain (loss) on investments 64,954,708 114,693,454
Net unrealized appreciation (depreciation)
on investments 161,776,525 66,921,091
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 234,861,739 180,546,604
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Net realized gain on investments:
Class A shares (154,452) --
Class B shares (214,182) --
Class C shares (110,471) --
Class R shares (3,664) --
Class T shares (2,579) --
Class Z shares (118,345,823) (105,500,411)
TOTAL DIVIDENDS (118,831,171) (105,500,411)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 19,154,469 --
Class B shares 21,710,010 --
Class C shares 5,605,138 --
Class R shares 48,544,845 --
Class T shares 482,573 --
Class Z shares 616,815,662 731,491,242
Dividends reinvested:
Class A shares 140,247 --
Class B shares 198,885 --
Class C shares 79,861 --
Class R shares 3,664 --
Class T shares 2,579 --
Class Z shares 114,411,113 100,555,806
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended May 31,
------------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($) (CONTINUED):
Cost of shares redeemed:
Class A shares (8,229,982) --
Class B shares (773,470) --
Class C shares (377,013) --
Class R shares (2,302,973) --
Class T shares (15,731) --
Class Z shares (667,638,635) (688,590,998)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 147,811,242 143,456,050
TOTAL INCREASE (DECREASE) IN NET ASSETS 263,841,810 218,502,243
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 1,130,189,953 911,687,710
END OF PERIOD 1,394,031,763 1,130,189,953
Undistributed investment income--net 8,215,512 85,006
(A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING
SHARES WERE REDESIGNATED CLASS Z SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended May 31,
-----------------------------------
CAPITAL SHARE TRANSACTIONS: 2000(a) 1999
--------------------------------------------------------------------------------
CLASS A(B)
Shares sold 1,360,990 --
Shares issued for dividends reinvested 10,274 --
Shares redeemed (583,056) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 788,208 --
--------------------------------------------------------------------------------
CLASS B(B)
Shares sold 1,539,552 --
Shares issued for dividends reinvested 14,592 --
Shares redeemed (54,834) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,499,310 --
--------------------------------------------------------------------------------
CLASS C
Shares sold 398,017 --
Shares issued for dividends reinvested 5,859 --
Shares redeemed (26,888) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 376,988 --
--------------------------------------------------------------------------------
CLASS R
Shares sold 3,420,654 --
Shares issued for dividends reinvested 268 --
Shares redeemed (160,465) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 3,260,457 --
--------------------------------------------------------------------------------
CLASS T
Shares sold 33,860 --
Shares issued for dividends reinvested 190 --
Shares redeemed (1,095) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,955 --
--------------------------------------------------------------------------------
CLASS Z
Shares sold 44,379,776 59,336,041
Shares issued for dividends reinvested 8,363,394 8,565,231
Shares redeemed (47,975,462) (56,431,517)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 4,767,708 11,469,755
(A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING
SHARES WERE REDESIGNATED CLASS Z SHARES.
(B) DURING THE PERIOD ENDED MAY 31, 2000, 33,920 CLASS B SHARES REPRESENTING
$485,578, WERE AUTOMATICALLY CONVERTED TO 33,770 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
period indicated. All information (excluding portfolio turnover rate) reflects
financial results for a single fund share. Total return shows how much your
investment in the fund would have increased (or decreased) during each period,
assuming you had reinvested all dividends and distributions. These figures have
been derived from the fund's financial statements.
<TABLE>
Year Ended May 31, 2000(a)
--------------------------------------------------------------------
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.34 13.34 13.34 13.34 13.34
Investment Operations:
Investment income--net(b) .20 .15 .11 .26 .20
Net realized and unrealized
gain (loss) on investments 1.76 1.74 1.78 1.75 1.66
Total from Investment Operations 1.96 1.89 1.89 2.01 1.86
Distributions:
Dividends from net realized gain
on investments (1.35) (1.35) (1.35) (1.35) (1.35)
Net asset value, end of period 13.95 13.88 13.88 14.00 13.85
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 14.90(c) 14.34(c) 14.34(c) 15.30 14.14(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets(d) 1.02 1.55 1.54 .75 1.21
Ratio of net investment income
to average net assets(d) 1.43 1.07 .77 1.69 1.40
Portfolio Turnover Rate 60.20 60.20 60.20 60.20 60.20
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 10,999 20,812 5,234 45,641 456
(A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended May 31,
--------------------------------------------------------------------
CLASS Z SHARES 2000(a) 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.72 11.78 10.01 9.25 7.45
Investment Operations:
Investment income (loss)--net .08(b) (.01) .01 .02 .03
Net realized and unrealized
gain (loss) on investments 2.55 2.29 2.68 2.16 2.39
Total from Investment Operations 2.63 2.28 2.69 2.18 2.42
Distributions:
Dividends from investment income--net -- -- (.02) (.02) (.05)
Dividends from net realized gain
on investments (1.35) (1.34) (.90) (1.40) (.57)
Total Distributions (1.35) (1.34) (.92) (1.42) (.62)
Net asset value, end of period 14.00 12.72 11.78 10.01 9.25
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 20.91 20.30 27.76 25.70 33.63
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .96 .96 .97 1.03 1.11
Ratio of net investment income (loss)
to average net assets .60 (.11) .07 .22 .36
Portfolio Turnover Rate 60.20 75.88 70.41 66.52 92.08
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Net Assets, end of period ($ x 1,000) 1,310,890 1,130,190 911,688 677,084 473,452
(A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING
SHARES WERE REDESIGNATED CLASS Z SHARES.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
The Dreyfus Premier Third Century Fund, Inc. (the "fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
provide capital growth. The Dreyfus Corporation ("Dreyfus") serves as the fund's
investment adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A., which
is a wholly-owned subsidiary of Mellon Financial Corporation. NCM Capital
Management Group, Inc. ("NCM") serves as the fund's sub-investment adviser.
On April 15, 1999, shareholders approved a reorganization, effective August 31,
1999, in which the fund' s name changed to The Dreyfus Premier Third Century
Fund, Inc. Shares of the fund have been redesignated as Class Z shares and the
fund added Class A, Class B, Class C, Class R and Class T shares.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 150 million of $.001 par value Common Stock. The fund
currently offers six classes of shares: Class A, Class B, Class C, Class R,
Class T and Class Z. Class A, Class B, Class C, and Class T shares are sold
primarily to retail investors through financial intermediaries and bear a
distribution fee and/or service fee. Class Z shares are not available for new
accounts and bear a service fee. Class A shares and Class T shares are subject
to a sales charge imposed at the time of purchase. Class B shares are subject to
a contingent deferred sales charge ("CDSC") imposed on Class B share redemptions
made within six years of purchase, Class C shares are subject to a CDSC imposed
on Class C shares redeemed within one year of purchase and Class R shares are
sold at net asset value per share only to institutional investors. Other
differences between the classes include the services offered to and the expenses
borne by each class and certain voting rights.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued at the last sales
price on the securities exchange on which such securities are primarily traded
or at the last sales price on the national securities market. Securities not
listed on an exchange or the national securities market, or securities for which
there were no transactions, are valued at the average of the most recent bid and
asked prices. Bid price is used when no asked price is available. Securities for
which there are no such valuations are valued at fair value as determined in
good faith under the direction of the Board of Directors.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund receives net
earnings credits based on available cash balances left on deposit.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
applicable provisions of the 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 $500 million
redemption credit facility (the "Facility" ) primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the fund has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is charged to the fund at rates based on
prevailing market rates in effect at the time of borrowings.
The average daily amount of borrowings outstanding during the period ended May
31, 2000, was approximately $329,900 with a related weighted average interest
rate of 6.31%.
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(A) Pursuant to the investment advisory agreement ("Agreement") with Dreyfus,
the investment advisory fee is computed at an annual rate of .75 of 1% of the
value of the fund's average daily net assets and is payable monthly. Pursuant to
an undertaking, if in any full fiscal year the aggregate expenses allocable to
Class Z, exclusive of taxes, brokerage fees, interest on borrowings, commitment
fees and extraordinary expenses, exceed 11/2% of the value of the average net
assets of Class Z, the fund may deduct from the fees paid to Dreyfus, or Dreyfus
will bear such excess expense. During the period ended May 31, 2000, there was
no expense reimbursement pursuant to the Agreement.
Pursuant to a Sub-Investment Advisory Agreement with NCM, the sub-investment
advisory fees are payable monthly by Dreyfus, and are based upon the value of
the fund's average daily net assets, computed at the following rates:
AVERAGE NET ASSETS
0 to $400 million. . . . . . . . . . . . . . . . . .10 of 1%
$400 million to $500 million . . . . . . . . . . . .15 of 1%
$500 million to $750 million . . . . . . . . . . . .20 of 1%
In excess of $750 million. . . . . . . . . . . . . .25 of 1%
DSC retained $851 during the period ended May 31, 2000 from commissions earned
on sales of the fund's shares.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at the following annual rates: .75 of 1% of the value
of the average daily net assets of Class B and Class C shares and .25 of 1% of
the value of the average daily net assets of Class T shares. During the period
ended May 31, 2000, Class B, Class C and Class T shares were charged $44,524,
$13,422 and $318, respectively, pursuant to the Plan, of which $31,517, $8,468
and $223 for Class B, Class C and Class T shares, respectively, were paid to
DSC.
(C) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding Class A, Class B, Class C and Class T
shares and providing reports and other information, and services related to the
maintenance of shareholder accounts. The distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The distributor determines the
amounts to be paid to Service Agents. During the period ended May 31, 2000,
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Class A, Class B, Class C and Class T shares were charged $8,851, $14,841,
$4,474, and $318, respectively, pursuant to the Shareholder Services Plan, of
which $5,798, $10,506, $2,823 and $223 for Class A, Class B, Class C and Class T
shares, respectively, were paid to DSC.
Under the Shareholder Services Plan, Class Z shares reimburse DSC an amount not
to exceed an annual rate of .25 of 1% of the value of the average daily net
assets of Class Z for certain allocated expenses 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 May 31, 2000, Class Z shares were charged $1,008,834
pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended May 31, 2000, the fund was charged $359,803 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended May 31, 2000, the fund was
charged $91,659 pursuant to the custody agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each
Board member, who is not an "affiliated person" as defined in the Act, receives
an annual fee of $25,000 and an attendance fee of $4,000 for each meeting
attended in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 13, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the fund
an annual fee of $10,000. The Chairman of the Board received an additional 25%
of such compensation. Subject to the fund' s Director Emeritus Program
Guidelines, Emeritus Board members, if any, receive 50% of the fund's annual
retainer fee and per meeting fee paid at the time the Board member achieved
emeritus status.
(E) During the period ended May 31, 2000, the fund incurred total brokerage
commissions of $1,221,556, of which $36,212 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended May 31, 2000, amounted to
$841,495,334 and $765,382,777, respectively.
At May 31, 2000, accumulated net unrealized appreciation on investments was
$460,167,133, consisting of $478,271,763 gross unrealized appreciation and
$18,104,630 gross unrealized depreciation.
At May 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors The Dreyfus Premier Third Century Fund, Inc
We have audited the accompanying statement of assets and liabilities of The
Dreyfus Premier Third Century Fund, Inc., including the statement of
investments, as of May 31, 2000, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of May 31,
2000 and confirmation of securities not held by the custodian by correspondence
with others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Dreyfus Premier Third Century Fund, Inc. at May 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the indicated years, in conformity with accounting principles generally accepted
in the United States.
New York, New York
July 7, 2000
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $1.1150 per share as a
long-term capital gain distribution of the $1.3480 per share paid on December 8,
1999.
The fund hereby designates .365% of the ordinary dividends paid during the
fiscal year ended May 31, 2000 as qualifying for the corporate dividends
received deduction. Shareholders will receive notification in January 2001 of
the percentage applicable to the preparation of their 2000 income tax returns.
The Fund
For More Information
The Dreyfus Premier Third Century Fund, Inc.
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
NCM Capital Management Group, Inc.
103 West Main Street
Durham, North Carolina 27705
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative
or 1-800-554-4611
BY MAIL Write to:
The Dreyfus Premier Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 035AR005
