SEMI ANNUAL FINANCIAL REPORT
JUNE 30, 1996
<PAGE>
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
For each share of capital stock outstanding*
Six Year Year Year
Mths End End End
June 12/31 12/31 12/31
1996 1995 1994 1993
NET ASSET VALUE AT BEGINNING
OF PERIOD $30.51 $28.14 $30.0 $29.95
------ ------ ------ ------
Investment Income $.38 $.75 $.72 $.62
Expenses .19 .40 .40 .33
------ ------ ------ ------
Net Investment Income .19 .35 .32 .29
Net realized & Unrealized
gain (Loss) on investment 2.06 5.14 (1.43) .58
------ ------ ------ ------
Total from Investment operations 2.25 5.49 (1.11) .87
Dividends from net (.35)
investment income ---- (.32) (.29)
Distributions from net
realized gain ---- (2.77) (.43) (.53)
------ ------ ------ ------
Total Distributions ---- (3.12) (.75) (.82)
Net change in net asset value 2.25 2.37 (1.86) .05
Net asset value as of end
of the period 32.76 30.51 28.14 30.00
------ ------ ------ ------
Total return
(Sales load not reflected) 7.4 19.5% (3.7)% 2.9%
Net assets, end of period $34,529 $32,236 $28,368 $31,567
Ratio of operating expense
to net assets** 1.18% 1.28% 1.30% 1.11%
Ratio of net investment income
to average net assets** 1.14% 1.12% 1.04% .96%
Portfolio turnover 29.95% 48.72% 33.00% 18.36%
Average commission rate paid .071 .072
Number of shares oustanding 1,053,851 965,769 984,847 1,026,460
at end of period***
* All adjusted for two for one share split 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
(THIS TABLE IS CONTINUED ON THE NEXT PAGE)
<PAGE>
CONTINUED
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
For each share of capital stock outstanding*
Year Year Year Year Year
End End End End End
12/31 12/31 12/31 12/31 12/31
1992 1991 1990 1989 1988
NET ASSET VALUE AT BEGINNING
OF PERIOD $29.19 $24.62 $27.57 $22.55 $18.85
------ ------ ------ ------ ------
Investment Income $.62 $.72 $.70 $.73 $.67
Expenses .28 .29 .27 .26 .25
------ ------ ------ ------ ------
Net Investment Income .34 .43 .43 .47 .42
Net realized & Unrealized
gain (Loss) on investment 1.10 5.86 (2.53) 5.41 4.09
------ ------ ------ ------ ------
Total from Investment operations 1.44 6.29 (2.10) 5.88 4.51
Dividends from net
investment income (.34) (.43) (.43) (.47) (.42)
Distributions from net
realized gain (.34) (1.29) (.42) (.39) (.39)
------ ------ ------ ------ ------
Total Distributions (.68) (1.72) (.85) (.86) (.81)
Net change in net asset value .76 4.57 (2.95) 5.03 3.71
Net asset value as of end
of the period 29.95 29.19 24.62 27.57 22.55
------ ------ ------ ------ ------
Total return
(Sales load not reflected) 4.9% 25.6% (7.6)% 26.0% 23.9%
Net assets, end of period $28,896 $23,931 $16,433 $11,893 $6,162
Ratio of operating expense
to net assets** 1.04% 1.18% 1.27% 1.25% 1.24%
Ratio of net investment income
to average net assets** 1.25% 1.74% 2.08% 2.20% 2.18%
Portfolio turnover 13.10% 21.50% 24.70% 14.60% 25.88%
Average commission rate paid
Number of shares oustanding 945,006 776,974 646,664 419,212 264,414
at end of period***
* All adjusted for two for one share split 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
(THIS TABLE IS CONTINUED ON THE NEXT PAGE)
<PAGE>
CONTINUED
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
For each share of capital stock outstanding*
Year Year Year Year Year Year
End End End End End End
12/31 4/30 4/30 4/30 4/30 4/30
1987 1987 1986 1985 1984 1983
NET ASSET VALUE AT BEGINNING
OF PERIOD $22.43 $19.68 $14.99 $13.55 $15.39 $12.50
------ ------ ------ ------ ------ ------
Investment Income $.40 $.38 $.47 $.47 $.40 $.38
Expenses .16 .16 .20 .17 .27 .20
------ ------ ------ ------ ------ ------
Net Investment Income .24 .22 .27 .30 .13 .18
Net realized & Unrealized
gain (Loss) on investment (3.21) 3.45 5.08 1.72 (1.55) 3.08
------ ------ ------ ------ ------ ------
Total from Investment operations (2.97) 3.67 5.35 2.02 (1.42) 3.26
Dividends from net
investment income (.24) (.22) (.27) (.30) (.13) (.18)
Distributions from net
realized gain (.38) (.70) (.39) (.28) (.29) (.19)
------ ------ ------ ------ ------ ------
Total Distributions (.62) (.92) (.66) (.58) (.42) (.37)
Net change in net asset value (3.59) 2.75 4.69 1.44 (1.84) 2.89
Net asset value as of end
of the period 18.85 22.43 19.68 14.99 13.55 15.39
------ ------ ------ ------ ------ ------
Total return
(Sales load not reflected) (2.6)% 22.2% 23.3% (.5)% 13.5% 10.4%
Net assets, end of period $4,133 $3,404 $1023 $502 $256 $163
Ratio of operating expense
to net assets** .80% 1.17% 1.39% 1.36% 2.24% 1.08%
Ratio of net investment income
to average net assets** 1.23% 1.68% 1.91% 2.3% 1.18% 1.69%
Portfolio turnover 8.57% 8.79% 28.00% 22.6% 52.% 74.5%
Average commission rate paid
Number of shares oustanding 212,704 151,848 51,998 33,524 18,916 10,592
at end of period***
* All adjusted for two for one share split 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
(END OF TABLE)
<PAGE>
June 30, 1996
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS
COMMON STOCKS :85.8 % MARKET VALUE
- --------------------- ------------
Shares
ALTERNATIVE ENERGY AND
- ----------------------
PROCESS EQUIPMENT: 11.1%
- ------------------------
Air Products 15000 $ 866,250.00
*California Energy 1000 25,500.00
*Energy Conversion Devices 20000 455,000.00
*Energy Research Corp 20000 295,000.00
Idaho Power 2000 62,250.00
*Real Goods Trading 1000 6,875.00
Trigen 30000 566,250.00
York International 30000 1,552,500.00
------------
$ 3,829,625.00
CLEAN AIR: 8.1%
- ---------------
*BHA Group 16500 $ 218,625.00
Engelhard 40000 920,000.00
Praxair 10000 422,500.00
*Thermo Instruments 23000 741,750.00
Walbro 25000 506,250.00
----------
$ 2,809,125.00
CLEAN WATER : 6.1%
- ------------------
Ameron 7500 $ 296,250.00
Aquarion 15000 371,250.00
Betz Labs 5000 219,375.00
Calgon Carbon 25000 337,500.00
*Ionics 10000 470,000.00
Millipore 10000 418,750.00
-----------
$ 2,113,125.00
CONSERVATION : 5.1%
- -------------------
*Cannondale 10000 $ 202,500.00
Norfolk Southern 12000 1,017,000.00
T J International 30000 540,000.00
-----------
$ 1,759,500.00
ENVIRONMENTAL (GENERAL) : 9.6%
- ------------------------------
Browning Ferris 40000 1,015,000.00
*Flow International 40000 320,000.00
*Material Sciences 10000 172,500.00
Minerals Technology 10000 342,500.00
*Molten Metal 1000 29,500.00
*Thermedics 20000 500,000.00
*Whole Foods Markets 15000 397,500.00
Worthington Foods 30000 517,500.00
----------
$ 3,294,500.00
<PAGE>
June 30, 1996
NEW ALTERNATIVES FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED)
SHARES MARKET VALUE
EFFICIENT ELECTRIC DEVICES : 4.7 %
- ----------------------------------
Baldor 47000 $ 1,057,500.00
*Itron 20000 567,500.00
-----------
$ 1,625,000.00
NATURAL GAS - DISTRIBTION: 5.2%
- -------------------------------
Brooklyn Union 10000 $ 272,500.00
Eastern Enterprises 10000 332,500.00
National Fuel Gas 10000 360,000.00
Northwest Natural Gas 10000 350,000.00
Washington Energy 25000 493,750.00
----------
$ 1,808,750.00
NATURAL GAS - DIVERSIFIED:16.3%
- -------------------------------
Burlington Resources 15000 $ 645,000.00
Enron 10000 408,750.00
MCN 30000 731,250.00
NGC Corp 35000 525,000.00
Pan Energy 30000 986,250.00
Questar 25000 850,000.00
Williams Co's 30000 1,485,000.00
-------------
$ 5,631,250.00
RECYCLING - PAPER: 8.2%
- -----------------------
Caraustar Ind 20000 $ 530,000.00
Media General 10000 372,500.00
Republic Gypsum 40000 570,000.00
Sonoco Products 25000 709,375.00
*Thermo Fibertek 37500 632,812.50
----------
$ 2,814,687.50
RECYCLING-METALS - PLASTIC 11.4%
- --------------------------------
*Castech Aluminum 40000 $ 590,000.00
Cincinatti Milacron 30000 720,000.00
Commonwealth Alum 15000 234,375.00
Commercial Metals 20000 665,000.00
Imco Recycling 30000 540,000.00
Quanex 25000 590,625.00
Wellman 25000 584,375.00
-----------
$ 3,924,375.00
-------------
Total Common Stock 29,609,937.50
Money Market Deposits and Treasury Bills :14.1 %
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 $4,451,535.59) 4,479,351.21
------------
$ 4,879,351.21
Total Common Stock (85.8 %) $29,609,937.50
Bank money market and Treasury Bills(14.1 %) 4,879,351.21
Cash and Receivables, less liabilities (.1 %) 40,363.40
--------------
NET ASSETS (100 %) $34,529,652.11
*Securities for which no cash dividends were paid during the
fiscal year.
<PAGE>
4
NEW ALTERNATIVES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
ASSETS
------
Investment Securities at market value
(Cost:$24,678,694.31) (Notes 2A and 5).......... $29,609,937.50
Bank money market deposits...................... 400,000.00
U.S.Treasury Bills at market.................... 4,479,351.21
Cash............................................ 328,627.43
Receivables: Dividends......................... 43,437.50
Interest.......................... 855.29
Securities Sold................... 197,718.40
Subscriptions receivable.......... 14,585.35
------------
Total Assets .................................. $35,074,512.68
LIABILITIES
-----------
Payables: Accrued Operating Expenses:
Accounting...................................... $ 308.00
Custodian....................................... 1,125.22
Directors Fees ................................. 1,945.40
State Taxes .................................... 178.56
Advisory fee ................................... 21,003.10
Regulatory fees ................................ 249.64
Printing ....................................... 2,393.73
Bonds........................................... 5,464.70
Transfer Agent-Fund Plan Services............... 3,128.50
Fund Pricing-Fund Plan Services................. 2,627.22
Other........................................... 700.00
---------
39,124.07
Securities Purchased............................ 491,250.00
Redemptions Payable............................. 14,383.44
Dividend distribution payable................... 103.06
Total Liabilities .............................. $ 544,860.57
-----------
Net Assets at market, applicable to 1,053,923.111
outstanding shares. There are eight million commmon shares
authorized.
There is only one class of common stock. (note 3)
==============
$34,529,652.11
<PAGE>
5
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDING JUNE 30, 1996
INVESTMENT INCOME AND EXPENSE
INCOME:
Dividends.................................... $ 269,762.50
Interest .................................... 126,228.19
----------
Total Income ................................ 395,990.69
EXPENSES:
Management Fee (note 4) ..................... $ 132,123.77
Custodian fees
United Missouri Bank......................... 10,160.54
State Taxes.................................. 212.40
Accounting .................................. 1,980.00
Directors ................................... 1,233.00
Filing Fees.................................. 5,508.00
Postage and Printing ........................ 6,867.00
Bond and Insurance .......................... 3,184.20
Transfer Agent-Fund Plan Services............ 19,620.00
Fund Pricing-Fund Plan Services.............. 14,400.00
Other........................................ 5,334.55
------------
Total Expenses .............................. $ 200,623.46
NET INVESTMENT INCOME ....................... $ 195,367.23
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN ON INVESTMENTS (note 2B&5)
Proceeds from sales.......................... $ 9,811,319.80
Cost of Securities Sold ..................... 7,813,133.51
------------
Net Realized Gain ........................... $ 1,958,184.28
UNREALIZED APPRECIATION (DEPRECIATION) of investments:
Beginning of period ......................... $ 4,737,419.85
End of period .............................. 4,931,243.19
------------
Total unrealized appreciation (depreciation). $ 193,823.34
For the period.
Net realized and unrealized gain (loss)
on investments .............................. $ 2,192,007.62
--------------
Net increase (decrease) in net assets
resulting from operations.................... $ 2,387,374.85
--------------
<PAGE>
6
NEW ALTERNATIVES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six months
End Year End
06/30/96 12/31/95
FROM INVESTMENT ACTIVITIES:
- ---------------------------
Net Investment income .... $195,367.23 $337,309.07
Net Realized gain from
security transactions .... 1,998,184.28 2,672,216.97
Unrealized appreciation
(deprec.) of investments.. 193,823.34 2,342,681.73
-------------- -------------
Increase (decrease) in net
assets derived from invest-
ment activities.......... $ 2,387,374.85 $ 5,352,207.77
-------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
- -------------------------------
From net investment income
dividends to shareholders.. ----------- (337,415.81)
Distributions to
shareholders ....... ----------- (2,672,182.54)
FROM CAPITAL SHARE TRANSACTIONS:
- ---------------------------------
Net increase (decrease) from capital
transactions (note 3)... (93,487.58) 1,524,960.89
INCREASE(DECREASE) IN
- ---------------------
NET ASSETS:.............. 2,293,887.27 3,867,570.31
- ----------
NET ASSETS :
- ------------
At the beginning of the
period................. $ 32,235,764.84 $28,368,221.14
-------------- -------------
At the end of the
period................. $ 34,529,652.11 $32,235,764.84
============== =============
<PAGE>
NOTES TO FINANCIAL STATEMENT FOR THE
SIX MONTHS ENDING JUNE 30, 1996
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 June 28, 1996 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 June 28, 1996 for federal tax purposes is $24,678,694.31.
3. CAPITAL STOCK - There are eight million shares of capital stock authorized.
On June 30, 1996 - 1,053,923.111 shares were issued and outstanding. Aggregate
paid in capital was $27,404,986.54. Transactions in capital stock were as
follows:
Six Mo's End 06/30/96 Year End 12/31/95
--------------------- -----------------
Capital stock Shares $ Amount Shares $ Amount
sold......... 42,009.288 1,336,367.22 62,538.844 1,983,398.19
Capital stock
issued reinvest 90,918.677 2,773,958.00
ment of divd..
Redemptions. ( 44,773.993) (1,429,854.80) (105,027.331) (3,232,395.30)
------------ ------------- ----------------------------
Net Increase/ (2,764.705) $ (93,487.58) (48,430.190)($1,524,960.89)
(decrease)
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 six months ending
June 30, 1996 was 1.18%. 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 six months ended June 30, 1996,
the aggregate cost of securities purchased totalled $ 8,522,321.50. Net
realized gains were computed on a first in, first out basis. The amount
realized on sales of securities for the year ended June 30, 1996 was $
9,811,319.80.
