NEW ALTERNATIVES FUND, INC.
A SOCIALLY RESPONSIBLE MUTUAL FUND EMPHASIZING
ALTERNATE ENERGY AND THE ENVIRONMENT
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Annual Financial Report
December 31, 1995
150 Broadhollow Road Melville, New York 11747 (800) 423-8383 (516) 423-7373
<PAGE>
FINANCIAL HIGHLIGHTS - STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
For each share of capital stock outstanding*
<TABLE>
<CAPTION>
Year Year Year Year Year Year Year
End End End End End End End
12/31 12/31 12/31 12/31 12/31 12/31 12/31
1995 1994 1993 1992 1991 1990 1989
---- ---- ---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $28.14 30.00 29.95 29.19 24.62 27.57 22.55
----- ----- ----- ----- ----- ----- -----
Investment Income.. .75 $.72 $.62 $.62 $.72 $.70 $ .73
Expenses............. .40 .40 .33 .28 .29 .27 .26
-- -- --- --- --- --- ---
Net Investment Income.. .35 .32 .29 .34 .43 .43 .47
Net realized and
unrealized gain (loss)
on investment 5.14 (1.43) .58 1.10 5.86 (2.53) 5.41
----- ------ ---- ---- ---- ------ ----
Operations 5.49 (1.11) .87 1.44 6.29 (2.10) 5.88
Dividends from net
Investment Income.... (.35) (.32) (.29) (.34) (.43) (.43) (.47)
Distributions from net
realized gain......... (2.77) (.43) (.53) (.34) (1.29) (.42) (.39)
----- ------ ----- ----- ------ ----- -----
Total Distributions (3.12) (.75) (.82) (.68) (1.72) (.85) (.86)
Net change in net asset
value................. 2.37 (1.86) .05 .76 4.57 (2.95) 5.03
Net asset value as of
end of the period.... $30.51 $ 28.14 30.00 29.95 29.19 24.62 27.57
===== ====== ===== ===== ===== ===== =====
Total Return 19.5% (3.7)% 2.9% 4.9% 25.6% (7.6)% 26.0 %
(sales load not
reflected)
Net Assets, end of
period $33.236 $28,368 $31,567 $28,896 $23,931 $16,433 $11,893
Ratio of operating
expense to
net assets** ....... 1.28% 1.30% 1.11% 1.04% 1.18% 1.27% 1.25%
Ratio of net
investment income to
average net assets** 1.12% 1.04% .96% 1.25% 1.74% 2.08% 2.20%
Portfolio turnover** 48.72% 33.00% 18.36% 13.10% 21.50% 24.70% 14.60%
Average Commisson
rate paid .072
Number of shares
outstanding at end
of period *** ...... 965,769 984,847 1,026,460 945,006 776,974 646,664 419,212
</TABLE>
<TABLE>
<CAPTION>
Year Year Year Year Year Year Year
End End End End End End End
12/31 12/31 4/30 4/30 4/30 4/30 4/30
1988 1987 1987 1986 1985 1984 1983
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period.. 18.85 22.43 19.68 14.99 13.55 15.39 12.50
Investment Income.... $ .67 $.40 $.38 $.47 $.47 $.40 $.38
Expenses............. .25 .16 .16 .20 .17 .27 .20
----- ----- ---- ---- ---- ----- ----
Net Investment Income. .42 .24 .22 .27 .30 .13 .18
Net realized and
unrealized gain (loss)
on investment ....... 4.09 (3.21) 3.45 5.08 1.72 (1.55) 3.08
----- ------ ---- ---- ---- ------ ----
Operations 4.51 (2.97) 3.67 5.35 2.02 (1.42) 3.26
Dividends from net
Investment Income.... (.42) (.24) (.22) (.27) (.30) (.13) (.18)
Distributions from net
realized gain......... (.39) (.38) (.70) (.39) (.28) (.29) (.19)
----- ----- ----- ----- ----- ----- -----
Total Distributions (.81) (.62) (.92) (.66) (.58) (.42) (.37)
Net change in net asset
value................. 3.71 (3.59) 2.75 4.69 1.44 (1.84) 2.89
Net asset value as of
end of the period.... 22.55 18.85 22.43 9.68 14.99 13.55 15.39
===== ===== ===== ===== ===== ===== =====
Total Return 23.9% (2.6%) 22.2% 23.3% (.5)% 13.5% 10.4%
(sales load not
reflected)
Net Assets, end of
period $6,162 $4,133 $3,404 $1,023 $502 $256 $163
Ratio of operating
expense to
net assets** ....... 1.24% .80% 1.17% 1.39% 1.36% 2.24% 1.08%
Ratio of net
investment income to
average net assets** 2.18% 1.23% 1.68% 1.91% 2.3% 1.18% 1.69%
Portfolio turnover** 25.88% 8.57% 8.79% 28.00% 22.6% 52.00% 74.50%
Average Commisson
rate paid
Number of shares
outstanding at end
of period *** ...... 264,414 212,704 151,848 51,998 33,524 18,916 10,592
</TABLE>
* All adjusted for two for one share splits on July 26, 1985 and January 2,
1990
** Annualized and includes state taxes
*** Shares immediately prior to dividend - Fund commenced operation on
September 3, 1982
Yr End Fund S&P
1/1/86 $ 952.50 $1,000.00 $ 9,525.00 $10,000.00
1986 $1,166.49 $1,184.92 $11,664.90 $11,849.20
1987 $1,129.61 $1,248.45 $11,296.10 $12,484.50
1988 $1,399.95 $1,449.32 $13,999.50 $14,493.20
1989 $1,765.07 $1,896.56 $17,650.70 $18,965.60
1990 $1,630.18 $1,830.48 $16,301.80 $18,304.80
1991 $2,046.84 $2,369.76 $20,468.40 $23,697.60
1992 $2,147.60 $2,533.62 $21,476.00 $25,336.20
1993 $2,209.60 $2,771.92 $22,096.00 $27,719.20
1994 $2,127.53 $2,808.57 $21,275.30 $28,085.70
1995 $2,542.27 $3,808.63 $25,422.70 $38,086.30
<PAGE>
Dec 31, 1995
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS
SHARES MARKET VALUE
-------- ------------
COMMON STOCKS :88.4 %
ALTERNATIVE ENERGY AND
PROCESS EQUIPMENT : 8.9 %
Air Products 17000 $ 896,750.00
*California Energy 1000 19,500.00
*Energy Conversion Devices 15000 247,500.00
*Energy Research Corp 23000 265,937.50
Idaho Power 2000 60,000.00
*New World Power 15000 26,250.00
*Real Goods Trading 1000 5,125.00
Trigen 10000 195,000.00
York International 25000 1,175,000.00
------------
$ 2,891,062.50
CLEAN WATER : 6.9%
American Water Works 15000 $ 583,125.00
Ameron 7500 282,187.50
Aquarion 15000 382,500.00
*Ionics 10000 435,000.00
U S Filter 20000 532,500.00
----------
$ 2,215,312.50
CONSERVATION : 7.3%
*Cannondale 10000 $ 158,750.00
H B Fuller 22500 781,875.00
Norfolk Southern 12000 952,500.00
T J International 20000 370,000.00
*Zoltec 6000 100,500.00
-----------
$ 2,363,625.00
ENVIRONMENTAL (GENERAL) :15.7 %
Browning Ferris 35000 1,032,500.00
Engelhard 30000 652,500.00
*Flow International 20000 187,500.00
*Material Sciences 20000 297,500.00
Minerals Technology 5000 182,500.00
*Molten Metal 3000 97,875.00
*Thermedics 20000 555,000.00
*Thermo Instrument 30000 1,012,500.00
Walbro 25000 450,000.00
*Whole Foods Markets 35000 485,625.00
*Wholesome & Hearty 15000 114,375.00
----------
$ 5,067,875.00
<PAGE>
Dec 31, 1995
NEW ALTERNATIVES FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED)
SHARES MARKET VALUE
------- ------------
EFFICIENT ELECTRIC DEVICES : 7.2 %
Baldor 35000 $ 704,375.00
*Itron 20000 675,000.00
Whirlpool 17500 931,875.00
--------------
$ 2,311,250.00
NATURAL GAS : 24.9 %
Brooklyn Union 10000 292,500.00
Burlington Resources 25000 981,250.00
Eastern Enterprises 10000 352,500.00
Enron 25000 953,125.00
MCN 25000 581,250.00
National Fuel 5000 168,125.00
Northwest Natural Gas 10000 330,000.00
New Jersey Resources 30000 903,750.00
Pan Energy 30000 836,250.00
Questar 25000 837,500.00
Washington Energy 25000 465,625.00
Williams Co's 30000 1,316,250.00
-------------
$ 8,018,125.00
RECYCLING :17.5 %
Caraustar Ind 25000 500,000.00
*Castech Aluminum 25000 337,500.00
Chesapeake 20000 592,500.00
Cincinatti Milacron 20000 525,000.00
Commonwealth Alum 15000 232,500.00
Imco Recycling 20000 490,000.00
Media General 10000 303,750.00
Quanex 20000 387,500.00
Republic Gypsum 40000 560,000.00
Rubbermaid 10000 255,000.00
Sonoco 21000 551,250.00
*Thermo Fibertek 30000 678,750.00
Wellman 10000 227,500.00
-----------
$ 5,641,250.00
Money Market Deposits and Treasury Bills : 9.6%
Socially Concerned Banks
Alternatives Federal Credit Union $ 100,000.00
Community Capital Bank 100,000.00
South Shore Bank 100,000.00
Vermont National Bank 100,000.00
U.S. Treasury Bills (cost $2,679,702.97) 2,688,939.94
------------
$ 3,088,939.94
Total Common Stock (88.4%) $28,508,500.00
Bank money market and Treasury Bills(9.6%) 3,088,939.94
Cash and Receivables, less liabilities (2.0%) 638,351.51
------------
NET ASSETS (100 %) $32,235,791.45
*Securities for which no cash dividends were paid during the
fiscal year.
<PAGE>
4
NEW ALTERNATIVES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
ASSETS
Investment Securities at market value
(Cost:$23,771,080.15) (Notes 2A and 5)..........$28,508,500.00
Bank money market deposits....................... 400,000.00
U.S.Treasury Bills at market..................... 2,688,939.94
Cash............................................. 361,144.17
Receivables: Dividends.......................... 57,645.00
Interest........................... 346.66
Securities Sold.................... 245,683.87
Subscriptions receivable........... 530,763.00
------------
Total Assets ..................................$32,793,022.64
LIABILITIES
Payables: Accrued Operating Expenses :
Accounting.................................... $ 332.00
Custodian................................ .... 1,350.55
Directors Fees ............................... 712.40
State Taxes .................................. 395.16
Advisory fee ................................. 21,866.20
Regulatory fees .............................. 2,390.57
Printing ..................................... 3,311.27
Bonds......................................... 2,322.00
Transfer Agent-Fund Plan Services............. 3,270.00
Fund Pricing-Fund Plan Services............... 2,857.41
Other......................................... 581.22
Securities Purchased.......................... 270,035.00
Redemptions Payable........................... 12,515.81
Dividend distribution payable................. 235,291.60
Total Liabilities ............................ $ 557,231.19
-----------
Net Assets at market, applicable to
1,056,687.816 outstanding shares after the
dividend. There were 965,756.746 shares
before the dividend. There are eight million
commmon shares authorized. There is only one
class of common stock. (note 3)
==============
$32,235,791.45
<PAGE>
5
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDING DECEMBER 31, 1995
INVESTMENT INCOME AND EXPENSE
INCOME :
Dividends.....................................$ 567,462.50
Interest ..................................... 154,296.75
----------
Total Income ................................. 721,759.25
EXPENSES :
Management Fee (note 4) ..................... $ 250,562.10
Custodian and Transfer fee
Nat West NJ ............................... 19,410.64
State Taxes.................................. 430.70
Accounting .................................. 4,015.00
Directors ................................... 2,771.96
Filing Fees.................................. 12,074.71
Postage and Printing ........................ 11,315.00
Bond and Insurance .......................... 4,775.02
Transfer Agent-Fund Plan Services............ 41,092.80
Fund Pricing-Fund Plan Services.............. 28,552.25
Other........................................ 9,450.00
----------
Total Expenses .............................. $ 384,450.18
NET INVESTMENT INCOME ....................... $ 337,309.07
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN ON INVESTMENTS (note 2B&5)
Proceeds from sales..........................$17,287,392.59
Cost of Securities Sold ..................... 14,615,175.62
-------------
Net Realized Gain ...........................$ 2,672,216.97
UNREALIZED APPRECIATION (DEPRECIATION) of investments :
Beginning of period .........................$ 2,394,738.12
End of period .............................. 4,737,419.85
------------
Total unrealized appreciation (depreciation).$ 2,342,681.73
For the period.
Net realized and unrealized gain (loss)
on investments .... ........................ $ 5,014,898.70
--------------
Net increase (decrease) in net assets
resulting from operations....................$ 5,352,207.77
<PAGE>
6
NEW ALTERNATIVES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year End Year End
12/31/95 12/31/94
-------- --------
FROM INVESTMENT ACTIVITIES:
Net Investment income .... $337,309.07 $313,087.46
Net Realized gain from
security transactions ..... 2,672,216.97 421,391.12
Unrealized appreciation
(deprec.) of investments.. 2,342,681.73 (1,872,064.92)
------------ --------------
Increase (decrease) in net
assets derived from invest-
ment activities.......... $ 5,352,207.77 $(1,137,586.36)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS :
From net investment income
dividends to shareholders .. (337,415.81) (313,082.87)
Distributions to
shareholders ....... (2,672,182.54) (421,415.76)
FROM CAPITAL SHARE TRANSACTIONS :
Net increase (decrease)
from capital
transactions (note 3)... 1,524,960.89 (1,327,133.25)
INCREASE(DECREASE) IN
NET ASSETS:.............. 3,867,570.31 (3,199,218.22)
NET ASSETS :
At the beginning of the
period................. $ 28,368,221.14 $31,567,439.38
-------------- -------------
At the end of the
period................. $ 32,235,791.45 $28,368,221.14
-------------- -------------
-------------- -------------
<PAGE>
NOTES TO FINANCIAL STATEMENT FOR THE
YEAR ENDING DECEMBER 31, 1995
1) ORGANIZATION - The fund is registered as an open-end investment company under
the Investment Company Act of 1940, as amended. The fund commenced operations
September 3, 1982.
2) ACCOUNTING POLICIES - The following is a summary of significant accounting
policies consistently followed by the fund in the preparation of these financial
statements. The policies are in conformity with generally accepted accounting
principles:
A> SECURITY VALUATION - listed investments are stated at the last sale price at
the closing of the New York Stock Exchange and the American Stock Exchange and
the NASD National Market System on December 29, 1995 and at the mean between the
bid and asked price on the over the counter market.
B> SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions
are accounted for on the trade date(date order to buy or sell is
executed).Realized gains and losses from security transactions are reported on a
first in, first out basis.
C> INVESTMENT INCOME AND EXPENSE RECOGNITION - Dividend income is recorded as of
the ex-dividend date. Expenses are accrued on a daily basis.
D> FEDERAL INCOME TAXES - No provision for federal income tax is believed
necessary since the fund intends to distribute all its taxable income to comply
with the provisions of the Internal Revenue Code applicable to investment
companies. The aggregate cost of the securities owned by the fund on December
31, 1995 for federal tax purposes is $23,771,080.15.
3. CAPITAL STOCK - There are eight million shares of capital stock authorized.
On December 31, 1995 - 965,769.139 shares were issued and outstanding before the
dividend, and 1,056,687.816 after the dividend. Aggregate paid in capital was
$27,498,462.12. Transactions in capital stock were as follows:
Year End 12/31/95 Year End 12/31/94
---------------------- ----------------------
Shares $ Amount Shares $ Amount
------ -------- ------ ---------
Capital stock
sold......... 62,538.844 1,983,398.19 72,395.324 2,146,915.92
Capital stock
issued reinvest 90,918.677 2,773,958.00 24,192.264 680,758.80
ment of divd..
Redemptions. (105,027.331) (3,232,395.30) (140,713.858) (4,154,807.97)
------------ ------------- ----------------------------
Net Increase. 48,430.190 $ 1,524,960.89 (44,126.270) ($1,327,133.25)
4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES - Pursuant to
agreements, Accrued Equities, Inc. serves as investment advisor to the Fund. The
Fund pays to Accrued Equities, Inc. an annual management fee of 1.00% of the
first $10 million of average net assets;0.75% of the next $20 million; and 0.50%
of net assets over $30 million and 0.45% of assets over $100 million. If the net
annual expenses of the Fund (other than interest, taxes, brokerage commissions,
extraordinary expenses) exceed the most restrictive limitation imposed by any
state in which the Fund has registered its securities for sale (presently 2.5%,
in California) Accrued Equities reduces its management fee by the amount of such
excess expense. The expense ratio for the year ending December 31, 1995 was
1.28%. The fund pays no renumeration to its officers, each of whom is also an
officer of Accrued Equities, Inc.
5) PURCHASES AND SALES OF SECURITIES - During year ended December 31, 1995, the
aggregate cost of securities purchased totalled $14,659,606.89. Net realized
gains were computed on a first in, first out basis. The amount realized on sales
of securities for the year ended December 31, 1995 was $17,287,392.59.
<PAGE>
Kenneth D Katz CPA
64 North Park Avenue
Rockville Centre, NY 11570
Report of Independent Accountant
To The Board of Directors and Shareholders
New Alternatives Fund Inc.,
Melville, NY
I have audited the statement of assets and liabilities of New Alternatives Fund
Inc (the Fund) including the schedule of portfolio investments by industry
classification, as of December 31, 1995, and the related statement of operations
for the year then ended, and the statements of changes in net assets and the
supplementary information- selected per share data and ratios. These financial
statements and supplementary information are the responsibility of the Fund's
management. My responsibility is to express an opinion on these financial
statements and supplementary information based on my audits.
I conducted my audits in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements and supplementary information
are free of material misstatement. An audit includes examining on a test basis,
evidence supporting the amounts and disclosures in the financial statements. My
procedures included confirmation of securities owned at December 31, 1995 by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. I believe that
my audit provides a reasonable basis for my opinion.
In my opinion the financial statements and selected per share data and ratios
referred to above present fairly, in all material respects, the financial
position of the Fund as of December 31, 1995, the results of operations for the
year then ended and the changes in its net assets and selected per share data
and ratios for the years in the periods then ended in conformity with generally
accepted accounting principles.
Kenneth D Katz CPA
Rockville Centre, NY
January 29, 1996
