<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A File #2-74436
File 811-3287
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ( )
Pre-Effective Amendment No. _____ ( )
Post-Effective Amendment No. 15th (x)
------
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 ( )
Post-Effective Amendment No.15th (x)
(Check appropriate box or boxes)
NEW ALTERNATIVES FUND, INC.
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(Exact Name of Registrant as Specified in Charter)
150 Broadhollow Road, Melville, New York 11747
(Address of Principal Executive Offices) (Zip Code)
(516) 423-7373
*(Registrant`s Telephone Number, including Area Code)
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering: See Below
It is proposed that this filing will become effective
________immediately upon filing pursuant to paragraph (b)
___X____on April 30 1996 pursuant to paragraph (b)
________60 days after filing pursuant to paragraph (a)
________on(date) pursuant to paragraph (a) of rule (485)
(Check Appropriate Box)
<PAGE>
File #2-74436
File 811 3287
NEW ALTERNATIVES FUND, INC.
CROSS REFERENCE SHEET
INFORMATION REQUIRED IN A PROSPECTUS
Page No.
Item l. Cover Page............................................ 1
Item 2. Synopsis.............................................. 2
Item 3. Condensed Financial Information....................... 4(a)
Item 4. General Description of Registration................... 4
Item 5. Management of the Fund................................ 7
Item 6. Capital Stock and other Securities.................... 9
Item 7. Purchase of Securities Being Offered.................. 10
Item 8. Redemption or Repurchase.............................. 11
Item 9. Legal Proceeding...................................... 12
Part B: Statement of Additional Information
(follows Prospectus).................................. 21
Part C: Other Information (follows Part B).................... 30
<PAGE>
Prospectus, Dated April 30, 1996
NEW ALTERNATIVES FUND, INC.
150 Broadhollow Road, Melville, New York 11747
Telephone 800-423-8383
(516) 423-7373
PROSPECTUS
New Alternatives Fund, Inc., (The Fund) is a diversified open-end investment
company which seeks long-term capital gains through equity investment. It
concentrates at least 25% of its investments in companies which have an
interest in solar and alternative energy development.
This prospectus sets forth concisely the information a prospective investor
should know about the Fund before investing. It should be retained for future
reference.
Additional information about the fund has been filed with the Securities and
Exchange Commission and is available upon request without charge. A Statement
of Additional Information about the Fund, which is incorporated by reference
in this prospectus, has been filed with the Securities and Exchange
Commission. It is available, at no charge, by writing to the Fund. The date of
the Statement of Additional Information is the same as the date of this
prospectus.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITY
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
<PAGE>
NEW ALTERNATIVES FUND, INC.
PROSPECTUS SUMMARY
<TABLE>
<CAPTION>
<S> <C>
SHARES OFFERED Common Stock
MINIMUM INITIAL $2,500.00
INVESTMENT $2,000.00 for qualified retirement plans.
MINIMUM $250.00
SUBSEQUENT $50.00 if through automatic Investment Plan.
INVESTMENT
TYPE OF Open-end, diversified, managed, concentrated (solar and
COMPANY alternative energy) investment company.
INVESTMENT Purchase of common stocks with a concentration of at least
POLICIES twenty-five percent (25%) of the Fund's assets in companies
which have an interest in the solar or alternative energy
industry. Investments may include solar cells, natural gas,
fuel cells, biomass, recycling, passive and active
architectural products, forest products, conservation systems,
cogeneration energy efficient apparatus and controls.
INVESTMENT The Fund purchases shares of common stock which may produce
OBJECTIVE long-term capital gains. There is no certainty that it will
achieve this objective.
CERTAIN FACTORS The Fund is not a complete investment program. The Fund is not
TO BE suited to investors seeking a high level of current income
CONSIDERED or safety. The Fund seeks long-term capital growth. Investments
in the Alternative energy and Environmental industries are subject
to changing federal and state regulation and political priorities.
The failure rate among smaller companies in solar and alternative
energy is higher than the rate for most companies. Technologies
which are scientifically feasible may not be cost effective.
INVESTMENT The Fund is managed by Accrued Equities, Inc., a New York based
MANAGER investment advisor and broker-dealer, managing various investments
since 1954.
LEGAL COUNSEL Eric J. Schmertz of Riverdale, New York, former Dean of Hofstra
University Law School.
2
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CAPITAL GAINS Capital gains, if any, are reinvested or paid at least annually
AND DIVIDENDS if requested; income dividends, if any, are reinvested annually
or paid at least annually if requested. See page 9.
PRINCIPAL Accrued Equities, Inc., 150 Broadhollow Road, Melville, New York 11747.
DISTRIBUTOR Telephone 516-423-7373 or 800-423-8383. See page 10.
TRANSFER AGENT Fund Plan Services, Inc., 2 Elm Street, Conshohoken, PA. 19428.
Telephone 610-834-3500.
MINIMUM SALES Net asset value plus a sales charge of four and nine hundred eighty
CHARGE AND seven one thousandths percent (4.987%) of the net amount invested,
OFFERING PRICE or four and three quarters percent (4.75%) of the public offering price;
reduced sales charge on purchases of twenty five thousand and one
($25,001.00) or more.
There is no 12b-1 plan or charge.
REDEMPTION Shares may be redeemed on any day the New York Stock Exchange is open.
PRICE
There is no redemption charge.
ADVISORY FEE There is an advisory fee of 1/12 of one percent of the Fund's assets
at the end of each month which is at the rate of one percent (1%) each
year for the first ten million dollars ($10,000,000.00). This is higher than
many other mutual funds. For Fund assets exceeding ten million dollars
($10,000,000.00), the fee declines to an annual rate of 3/4 of one percent
(.75%) of the excess; and at over thirty million dollars ($30,000,000.00), it
declines to an annual rate of 0.5% of the excess and at over one hundred
million dollars ($100,000,000.00), it declines to an annual rate of 0.45% of
the excess. See page 7.
CUSTODIAN United Missouri Bank, Kansas City, M.O.
</TABLE>
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FUND EXPENSES
The following table illustrates all expenses and fees that a shareholder of
the Fund will incur. The expenses and fees set forth in the table are for the
1995 fiscal year.
<TABLE>
<CAPTION>
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases ......................... 4.75%
Sales Load Imposed on Reinvested Dividends ...................... None
Redemption Fees ................................................. None
Exchange Fees (N/A) ............................................. None
ANNUAL FUND OPERATING EXPENSES
Management Fees
Investment Advisory Fees ........................................ 0.83%
12b-1 Fees ...................................................... None
Other Operating Expenses
Custodian Bank and Transfer Agent ............................... 0.20%
Postage & Printing (Shareholder Reports) ........................ 0.04%
Miscellaneous Expenses .......................................... 0.21%
TOTAL FUND OPERATING EXPENSES ................................... 1.28%
</TABLE>
The purpose of this table is to assist the investor in understanding the
various costs and expenses that an investor in the fund will bear directly or
indirectly.
The following example illustrates the expenses that you would pay on a $1,000
investment over various time periods assuming (1) a 5% annual rate of return
and (2) redemption at the end of each time period.
As noted in the table above, the Fund charges no redemption fees of any kind.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
$59.92 $86.16 $114.39 $194.68
</TABLE>
This example should not be considered a representation of past or future
expenses or performance. Actual expenses may be greater or lesser than on
those shown.
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3
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THE FUND
New Alternatives Fund, Inc., is an open-end diversified investment company,
commonly called a Mutual Fund, which concentrates at least 25% of its
investments in the common stock of companies which have an interest in solar
and alternative energy.
Solar and alternative energy, as used throughout this prospectus, refer to
energy sources other than petroleum or nuclear power.
The Fund was incorporated under the laws of the State of New York and
commenced its activity as a mutual fund on September 3, 1982.
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
For each share of capital stock outstanding*
<TABLE>
<CAPTION>
Year End Year End Year End Year End Year End Year End Year End
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT $28.14 $30.00 29.95 29.19 24.62 27.57 22.55
BEGINNING OF PERIOD ------ ------ ------- ------ ------ ------ ------
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 $32,236 $28,368 $31,567 $28,896 $23,931 $16,433 $11,893
Ratio of operating expense to 1.28% 1.30% 1.11% 1.04% 1.18% 1.27% 1.25%
net assets**
Ratio of net investment income 1.12% 1.04% .96% 1.25% 1.74% 2.08% 2.20%
to average net assets
Portfolio turnover 48.72% 33.00% 18.36% 13.10% 21.50% 24.70% 14.60%
Average commision rate paid .072
Number of shares 965,769,139 984,847 1,026,460 945,006 776,974 646,664 419,212
outstanding at end of period***
</TABLE>
<PAGE>
(Table Restubbed -- Continued)
<TABLE>
<CAPTION>
Year End Year End Year End Year End Year End Year End Year End
12/31/88 12/31/87 4/30/87 4/30/86 4/30/85 4/30/84 4/30/83
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT 18.85 22.43 19.68 14.99 13.55 15.39 12.50
BEGINNING OF PERIOD ----- ----- ----- ----- ----- ----- -----
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 19.68 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 1.24% .80% 1.17% 1.39% 1.36% 2.24% 1.08%
net assets**
Ratio of net investment income 2.18% 1.23% 1.68% 1.91% 2.3% 1.18% 1.69%
to average net assets
Portfolio turnover 25.88% 8.57% 8.79% 28.00% 22.6% 52.00% 74.50%
Average commision rate paid
Number of shares 264,414 212.704 151,848 51,998 33,524 18,916 10,592
outstanding at end of period***
</TABLE>
* 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
See Accompanying Notes to Financial Statement
4
<PAGE>
INVESTMENT PHILOSOPHY AND OBJECTIVES
The investment objective of the Fund is long term growth through investing in
common stocks. The fund invests in a wide range of industries, concentrating
(usually 25% or more) on companies in the solar and alternative energy
industry. The alternative energy industry is defined in the following sections
of the prospectus.
Most Fund investments have a relationship to environmental products, processes
and corporate behavior oriented toward a clean and sustainable environment.
There is no certainty that the Fund will achieve its objective.
No more than 25% of the Fund's assets will be invested in companies not listed
on the New York or American Stock Exchanges.
BROAD DEFINITION OF SOLAR AND ALTERNATIVE ENERGY
Included: In general, solar and alternative energy as used in this Prospectus,
consists of passive and active architectural solar heating, cooling;
electrical generation (as in solar photovoltaic cells); cogeneration, biomass
(agricultural and forest products and waste systems); fuel cells, recycling,
efficient electrical devices, geothermal power and all related technologies
which facilitate the development and use of renewable energy production and
conservation, such as batteries and other energy storage systems.
Excluded: Alternative energy, as used in the prospectus, excludes
petroleum and atomic based energy sources and the processes utilized
in connection with such sources.
Atomic energy is omitted as an area for investment due to the potential for
accident, unresolved radioactive waste disposal problems, excessive cost and
frequent community opposition to such programs. There are new and increasing
concerns with the cost of dismantling atomic energy plants as they mature or
depreciate.
SOCIAL AND ENVIRONMENTAL IMPLICATIONS
The Fund is organized for the benefit of its stockholders. The Directors
believe that investment in companies subject to valid environmental opposition
would be unacceptable.
THE PROBLEMS CREATE THE POTENTIAL
Increasing population, increasing exploitation of natural resources with
advanced devices, years of production and consumption without environmental
awareness have created formidable and increasingly visible problems and public
concern.
The Fund Manager believes that, notwithstanding temporary shortages and
surpluses, petroleum resources will over the years become increasingly
expensive and less attractive as an investment compared to alternative energy.
As solar and alternative energy are increasingly utilized, they should become
less expensive, more attractive and better investments. Solar energy and
conservation reduce carbon dioxide, nitrous oxide and sulfur dioxide.
The Fund is the first and at present the only investment company with a
program concentrating in alternative energy.
The Fund has excluded from its definition of solar and alternative energy, oil
based resources. Nevertheless the Fund may invest in petroleum companies which
are actively developing or producing such items as photovoltaic conversion of
the sun's rays directly to electricity or producing other products related to
the Fund.
Environmental efforts may be subject to attacks, halts, pauses and changes.
Nevertheless, the Manager is confident that progress will continue. Many
concerned citizens and important segments of industry are learning what is
needed and practical, what is real and what is effective.
5
<PAGE>
There is no assurance that the investments selected by the Fund will be among
those that successfully participate in what appears to be a growing array of
alternative energy resources and environmental opportunities.
ILLUSTRATIONS OF TECHNOLOGIES
PHOTOVOLTAIC
Solar cells (photovoltaic cells) convert sunlight directly to electricity.
They require sunshine and night time storage. Presently such cells are cost
effective only where there is no utility grid. Nevertheless, the Directors of
the Fund believe photovoltaic cells provide investment potential.
Once installed, there are no fuel costs and maintenance requirements are
minimal. Capital cost per watt of photovoltaic electricity continues to fall
but is still higher than conventional utility produced electricity.
Solar generated electricity must be stored. Efficient (small, long lasting,
inexpensive) environmentally clean batteries are a significant ancillary
aspect of the photovoltaic industry. Clean and efficient batteries are
required for cost effective electric vehicles.
CONSERVATION
Conservation doesn't produce energy. Nevertheless, the Directors and the
Manager believe conservation provides investment potential.
Conservation may be defined as the wise and efficient use of energy and
natural resources. More efficient engines, heat pumps, electric motors and
heating systems are presently producing energy saving results.
Cogeneration (multiple uses of combustion) is of particular interest to
industry as a means of utilizing the same fuel for several purposes, e.g.
generating electric or mechanical power and heat from a single turbine and
utilizing the same amount of fuel to achieve both results.
ARCHITECTURAL
Both active and passive architectural systems, including solar heating, have
limited industrial potential and need supplementation by other systems.
Nevertheless, the Directors believe architectural systems provide investment
potential.
Areas for investments include: Insulation materials, reflective glazed glass
to preserve temperature levels; fuel control systems to eliminate fuel waste;
and the devices for collecting solar heated water.
NATURAL GAS AND FUEL CELLS
Gas as used by utilities is the cleanest of the hydrocarbon fuels. There are
large domestic reserves of natural gas.
Methane from coal seams and garbage dumps is presently a cost effective source
of relatively clean energy.
Fuel cells produce electricity in a manner similar to a permanent battery to
which fuel is continuously added. It is the chemical production of
electricity. It resembles, in part, the battery in a flashlight. In the fuel
cell the operator keeps adding new fuel such as hydrogen or natural gas or
alcohol, even coal. The by-product is water. There is very little pollution.
At present the most cost efficient fuel for fuel cells is natural gas. Fuel
cells are in the opinion of the Fund Managers likely to be cost efficient and
likely to come into wide use.
BIOMASS
Large scale use of biomass, which is plant life, might compete with food
supply requirements. Nevertheless, the Directors believe "biomass", including
"wood", wisely used, provides investment potential. New methods of preparing
wood for burning and new burning methods reduce the emissions from burning
biomass materials.
Ethanol is fuel made from grain, a form of biomass. There is continued use,
with some dispute as to the efficacy of ethanol.
6
<PAGE>
HYDRO ELECTRIC
Water power (hydroelectric) is an excellent source of energy, but the
available resources are limited. In choosing hydroelectric investment,
attention is paid to environmental considerations such as fish access and
aesthetic concerns. Nevertheless, the Directors believe water power provides
investment potential.
WIND TURBINES
Wind energy is not new technology. The success of wind energy as a modern
utility source is new.
With new generator units and new blades and greater control over the energy
output, at different wind speeds, the wind turbine has become cost efficient.
Wind energy can be produced competitively. As with all new technology, it is
not without its problems. Nevertheless, the Directors believe in the present
and future potential of wind energy.
RECYCLING
Recycling is not a new technology. It saves both energy and resources. In its
older forms it was simply taken for granted. For example, gold, silver and
steel have been recycled for years. Now it is becoming cost effective to
recycle other less noble materials, including plastics, glass and paper.
ADDITIONAL ALTERNATIVES
Ocean thermal energy conversion (OTEC), superconductivity, geothermal energy
and wave action systems are limited geographically or require technological
development, some of which development is reported to be underway.
Nevertheless, the Directors and the Manager believe some of such systems
provide investment potential.
THE LIST OF ALTERNATIVES CANNOT BE EXHAUSTIVE NOR THE COMMENTS COMPLETE. It is
likely that there will be no single substitute resource.
SOME INVESTMENTS MAY BE INDIRECT. The Fund may invest in technologies
which support the solar and alternative energy industry.
NOT EVERY INVESTMENT IS A "PURE PLAY". The solar or alternative energy
component or "play" is small in some large companies. Nevertheless, after
evaluation, investment may be made if it is believed development is
attractive.
CERTAIN RESTRICTIONS
The Fund may not, without the approval of a majority of the Fund's outstanding
voting shares:
(1) Purchase securities of any company having less than three years of
continuous operation (including operations of any predecessors), if such
purchase would cause the value of the Fund's investments in all such companies
to exceed 10% of the value of its assets.
(2) With respect to seventy-five percent (75%) of its assets (at market
value), invest more than five percent (5%) of such assets in securities of any
one issuer, other than the U.S. government, its agencies or instrumentalities.
(3) Invest more than twenty-five percent (25%) of the Fund's assets in any
single industry; excepting the solar and alternative energy industry.
MANAGEMENT OF THE FUND
Under the laws of the State of New York, the Board of Directors of the Fund is
responsible for managing the business and affairs of the Fund.
The Fund has entered into an investment advisory agreement with Accrued
Equities Inc. (the "Advisor") of 150 Broadhollow Road, Melville, NY
11747. This is a New York Corporation organized in 1954. The controlling
stockholder of the Advisor is David J. Schoenwald. He is Vice President
of the Advisor and President of the Fund. The minority stockholder
of the Advisor is Maurice L. Schoenwald. He is President of the
Advisor and Chairman of the Board of Directors of the Fund.
7
<PAGE>
The Advisor, subject to the authority of the Board of Directors of the Fund,
is responsible for the overall management of the Fund's business affairs. The
Advisor also pays the compensation of such of the Fund's Officers and
Directors who are affiliated with the Advisor, and all advertising and
promotional expense. The Advisor will not use any part of the advisory fee for
distribution.
Under the Advisory Agreement, the Advisor receives a monthly fee from the Fund
at the following annual rates based on the average net assets of the Fund at
the end of each month: one percent (1%) for the first $10 million; .75% for
the next $20 million; .50% for amounts over $30 million; and .45% for amounts
over $100 million. Such fee is higher than that of many other mutual funds.
However, there is no 12 B-1 fee. During the fiscal year ending December 31,
1995, the Advisor received in gross $250,562 from the Fund or (.83) of one
percent of average net assets.
Under the Management Agreement, if total expenses of the Fund for any fiscal
year, including the management fee, but excluding interest, taxes, brokerage
commissions and extraordinary expenses excludable by state laws, exceed the
applicable expense limitation set by state securities regulations in those
states in which the company may make regular sales, the Manager will reduce
its compensation by the amount by which such expense exceeds state expense
limitations.
PORTFOLIO MANAGERS
Maurice L. Schoenwald and David J. Schoenwald are primarily responsible for
the day to day management of the Fund's portfolio. They have so served since
the fund's inception.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND PAYING AGENT
The Custodian of the Fund is the United Missouri Bank, 928 Grand Avenue,
Kansas City, M.O. 64141. The Fund's cash and securities are kept with the
Custodian pursuant to an agreement dated October 28, 1994. The Fund pays the
Custodian pursuant to a regular schedule of charges based on a schedule agreed
on from time to time by the Fund and the Custodian.
The Custodian attends to the collection of proceeds of securities sold by the
Fund, collection and deposit of dividends and disbursements for the cost of
securities.
Fund Plan Services, Inc., P.O. Box 874, 2 Elm Street, Conshohocken,
PA. 19428 serves as the Transfer Agent and Dividend Paying Agent for
the Fund, pursuant to an agreement effective October 1, 1993. Telephone:
(610) 834-3500.
DESCRIPTION OF SHARES
The Fund's authorized capital is eight million (8,000,000) common shares of
one dollar par value.
Each share entitles the holder to one vote. Fractional shares have no voting
rights. Shareowners may vote for the election of Directors and all other
appropriate and customary matters and participate equally in dividends,
distributions of capital and net assets of the Fund on liquidation.
The common shares are fully paid and non-assessable when issued, are
redeemable in accordance with the provisions set forth under the heading
"Redemption of Shares", and have no preference, pre-emptive or conversion
rights. Fractional shares entitle the holder to the same redemption, dividend,
distribution and other rights, excepting voting, as whole shares on a pro rata
basis. No certificates are issued for fractional shares.
The Fund will not ordinarily issue certificates for common shares purchased.
Certificates are generally unnecessary because (1) ownership of shares is
evidenced by a confirmation advice after each purchase or redemption,
indicating the amount invested and the purchase price per share or the amount
redeemed and the redemption price per share, and the number of shares owned
immediately after
8
<PAGE>
such transactions; and (2) redemptions and transfers may be
transacted without the issuance of certificates.
Share certificates are issued only upon the specific request of the shareowner
made in writing. No charge is made for the issuance of share certificates.
Shares may not be transferred without written permission of the manager which
is in the discretion of the manager and is generally limited to estates and
gifts within a family.
At the discretion of the manager, accounts with a total value, at the time of
notice, of $1,000.00 or less may be redeemed by the company after 10 days
notice by mail to the shareholder. The common shares have noncumulative voting
rights so that the holders of more than fifty percent (50%) of the shares
voting for the election of Directors can elect all the Directors and in such
event the holders of the remaining shares voting for the election of the
Directors will not be able to elect any person or persons to the Board of
Directors. A simple majority of those shares voted in person or by proxy
participating in any duly called meeting on proper notice shall be sufficient
to pass any resolutions, excepting as otherwise required by the Investment
Company Act of 1940.
REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS. Any dividends paid by the Fund
from net investment income on its portfolio and any distributions of net
realized capital gains will automatically be reinvested in whole or fractional
shares of the Fund at net asset value on the record date unless a shareowner
makes a written request for payments in cash.
If a shareholder makes a specific written request for dividends or capital
gains distributions, such income or distribution payments, if any, will be
paid in cash at least annually.
CONTROL PERSONS. No shareholder owns more than 5 percent of the shares of the
Fund. Such persons are deemed control persons under the Investment Company Act
if they own 5% or more of the outstanding shares of the Fund.
REPORT TO SHAREOWNERS
The Fund issues to its shareowners semi- annual reports. Each semi-annual and
annual report will also contain a list of the Fund's portfolio assets,
statements of assets, liabilities and capital, results of operations, and
sources of and changes in net assets.
SHAREHOLDER INQUIRIES
General shareholder inquiries may be made by writing to the Fund at 150
Broadhollow Road, Melville, NY 11747, or by calling the Fund at (516)
423-7373, or (800) 423-8383.
Inquiries pertaining to share balances and other
account information may be made by writing to the Transfer Agent,
Fund Plan Services Inc., P.O. Box 874, 2 Elm Street, Conshohocken,
PA. 19428 or by calling (610) 834-3500.
TAX STATUS
The Fund will endeavor to qualify annually for tax treatment applicable to a
regulated investment company under the Internal Revenue Code of 1954, as
amended ("Code"). Pursuant to the requirements of the Code, the Fund intends
to pay, at least annually, dividends representing substantially all of its net
investment income. It also intends, at least annually, to distribute any net
realized capital gains. As a regulated investment company, the Fund will not
be subject to the United States income tax on net ordinary income and net
capital gains which are distributed by the Fund, pursuant to the requirements
of the "Code". The status of the Fund as a regulated investment company does
not involve government supervision of management or of investment practices or
policies.
9
<PAGE>
For Federal income tax purposes distributions paid from the Fund's net
investment incomeand net realized short-term capital gain are taxable to
shareholders as ordinary income, whether received in cash or in additional
shares. Distributions paid from long-term capital gain are taxable as
long-term capital gains, whether received in cash or shares. However,
shareholders not subject to tax on their income will not be required to pay
Federal income taxes on amounts distributed to them. Shareholders will be
notified annually as to the Federal tax status of dividends and distributions.
Subject to regulations of the Internal Revenue Service, the Act may require
individuals who are shareholders of the Fund to include their pro rata share
of the Fund's investment expenses (such as investment advisory fees), in
addition to distributions received, in computing their taxable income.
- -------------------------------------------------------------------------------
PURCHASE OF SHARES
MINIMUM INVESTMENT: The minimum initial investment in the Fund is $2,500.00,
or $2,000.00 for qualified retirement plans. The minimum subsequent investment
is $250.00, or $50.00 through an automatic Investment Plan.
<TABLE>
<CAPTION>
Sales Commission
Purchase As A Percentage
Amount Of Offering Price
- ------- -----------------
<S> <C>
$ 2,500 to $ 25,000 4.75%
$ 25,001 to $103,000 3.85%
$103,001 or more 2.91%
</TABLE>
There is no charge for reinvestment of dividends or distributions. The sales
charge for additional purchases shall be based upon the current cumulative
cost of the investor's holdings including the cost of the additional purchase
made.Purchases of shares are credited only for and at the value of U.S.
dollars received by the Fund in the U.S.
PURCHASES BY FAMILIES: Investors may combine the following categories into a
single transaction to qualify for a reduced sales charge and rights of
accumulation: purchases by spouses, parents or grandparents for themselves or
for each other or for their children or grandchildren, including trusts for
such persons. To so qualify, it is the investors responsibility to notify the
transfer agent at the time of purchase of eligibility for such reduced sales
charge.
SALES CHARGE: Shares of the Fund may be purchased at net asset value
(determined in the manner described under "Net Asset Value") plus a sales
charge which ranges from 4.987% to 3% of the offering price, as follows:
<TABLE>
<CAPTION>
Dealer Re-allowance Sales Commission
As A Percentage Of As A Percentage Of
Offering Price Net Asset Value
- ------------------ ------------------
<S> <C>
4% 4.987%
3% 4%
2% 3%
</TABLE>
Certain categories of people or institutions may invest in the Fund without
paying a sales charge: These include current and retired directors, officers
and employees of the Fund or the Fund's advisor and their families; registered
representatives of brokers distributing the Fund's shares who are purchasing
for their own personal account; Non Profit or Charitable organizations (as
defined in Section 501 (c) (3) of the Internal Revenue Code) investing
$100,000 or more; Clients of investment advisors purchasing for their own
accounts who are charged ongoing management fees for their advisors services.
Persons in the above categories must make their status as such known to the
Fund's transfer agent. The Fund reserves the right to reject any purchase
order.
Should a broker execute a contract with the Fund, the principal Distributor
may re-allow a portion of the applicable sales charge, as shown in the table
above. In the event that substantially all of the sales charge is re-allowed,
sub-distributors may be deemed to be underwriters as that term is defined in
the Securities Act of 1933.
10
<PAGE>
HOW TO BUY SHARES: Shares of the Fund may be purchased by sending
a Share Purchase Application and a check to New Alternatives Fund,
Inc., c/o Fund Plan Services Inc., P.O. Box 874, 2 Elm Street, Conshohocken,
PA. 19428. The application is on the last page of the prospectus.
The Fund's shares are sold directly by the Fund with the assistance of and at
the expense of Accrued Equities Inc, which is compensated for such assistance.
All checks are to be made payable to New Alternatives Fund, Inc. Independent
brokers also sell the shares of the Fund. Sales charges are the same
irrespective of where or through whom you purchase. Social security numbers or
tax numbers are required on the application.
RETIREMENT PLANS AND IRA ACCOUNTS
Shares of the Fund may be purchased directly by existing retirement plans
which allow such investments.
In addition, qualified individuals may establish an Individual Retirement
Account ("IRA") to be funded with shares of the Fund. The Fund has made
arrangements with Semper Trust Company to act as custodian for any IRAs thus
created.
Automatic Investment Plan: Shareholders meeting the investment minimum may
establish an automatic investment plan wherein periodic drafts from a checking
or savings account are invested in the fund, subject to the same ales charges
recited in this prospectus. Such plan may be canceled by the Fund or the
investor upon written notice to the transfer agent no later than 5 business
days prior to a scheduled debit date.
For further information, an interested person should call the Fund at (516)
423-7373 or (800) 423-8383.
NET ASSET VALUE
The net asset value of a Fund share is determined once daily as of the close
of each day of trading on the New York Stock Exchange. Net asset value is
determined by subtracting all liabilities of the Fund from the value of its
total assets and dividing the resulting figure by the number of Fund shares
and fractional shares outstanding.
In determining the Fund's net asset value, securities for which current market
quotations are readily available are valued in the following manner:
securities traded on national exchanges are valued at the closing sales price,
or, if no sale occurred, at the last price traded. Over-the-counter securities
for which no sales were reported on a particular day are valued at the last
closing price. Securities for which current market quotations are not readily
available are valued at their fair value as determined in good faith by the
Board of Directors. The Board will continue to review its over-all methods of
valuation to assure that all assets are properly valued.
*The daily calculation of net asset value is performed by Fund Plan Services,
Inc., which also serves as transfer agent.
REDEMPTION OF SHARES
There is no redemption charge.
Fund shares are redeemed upon tender of the written request of any
shareholder, accompanied by surrender of share certificates, if issued. All
certificates and/or requests for redemption tendered must be endorsed by the
shareholder or shareholders in whose name or names the shares are registered.
Signature or signatures must be guaranteed by a commercial bank or trust
company or federally chartered savings bank, Savings and Loan Association or
credit union located in the United States or having a correspondent relation
with a commercial bank or trust company in the United States, or by a member
firm of the New York Stock Exchange (except that guarantee of the signature or
signatures on a request for redemption of $1,000.00 or less may be waived, if
approved by the Fund). Tender shall be made at the office of the Transfer
Agent, Fund Plan Services, Inc., P.O. Box 874, 2 Elm Street, Conshohocken, PA.
19428.
11
<PAGE>
The redemption price will be the net asset value of the Fund's shares next
computed after the tender is received by the Fund. Payment of the redemption
price will be made by a check drawn and issued in the U.S. within seven days
after receipt of the written request and certificates as described above, or
if payment for the purchase of the shares to be redeemed has not been cleared
by that time, the mailing of the redemption check may be postponed until
proceeds of any check for the purchase price of the shares has been collected.
If payment for shares are dishonored the Fund may cancel the purchase.
LEGAL COUNSEL
Eric J. Schmertz
Counsel
Riverdale, New York
Age 70; Former Dean of Hofstra University Law School.
PENDING LEGAL PROCEEDINGS
There are no pending or anticipated legal proceedings against the Fund. The
principal Distributor and Investment Adviser has been doing business actively
since 1954. It is not now nor has it ever been the subject of any suit nor
does it presently anticipate any suit or claim.
- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANT
Kenneth D. Katz, whose address is 64 North Park Avenue, Rockville Centre, NY, is
the Fund's Independent auditor. The financial statements included in the
prospectus have been so included in reliance on the report of the auditor.
Report of Independent Accountant
To The Board of Directors and
Shareholders
New Alternatives Fund, Inc.
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 aspects, 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, New York
January 29, 1996
12
<PAGE>
NEW ALTERNATIVES FUND, INC. STATEMENT OF INVESTMENTS
December 31, 1995
<TABLE>
<CAPTION>
COMMON STOCKS: 88.4%
Shares Market Value
------ ------------
<S> <C> <C>
Alternate 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
US 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
Efficient Electric Devices: 7.2%
- --------------------------------
Baldor Electric ............... 35000 $ 704,375.00
*Itron ......................... 20000 675,000.00
Whirlpool ..................... 17500 931,875.00
-------------
$2,311,250.00
</TABLE>
13
<PAGE>
NEW ALTERNATIVES FUND, INC. STATEMENT OF INVESTMENTS (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Shares Market Value
------ ------------
<S> <C> <C>
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 Gas ............................ 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 Aluminum ........................ 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 Products .............................. 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
</TABLE>
*Securities for which no cash dividends were paid during the fiscal year.
14
<PAGE>
NEW ALTERNATIVES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
<TABLE>
<CAPTION>
ASSETS
<S> <C>
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
Bond .................................. 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
</TABLE>
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 common shares authorized.
There is only one class of common stock. (note 3)
...................................... $32,235,791.45
15
<PAGE>
STATEMENT OF OPERATIONS
For the Period Ending December 31, 1995
INVESTMENT INCOME AND EXPENSE
<TABLE>
<CAPTION>
INCOME
<S> <C>
Dividends ............................................ $ 567,462.50
Interest ............................................. 154,296.75
--------------
Total Income ......................................... $ 721,759.25
EXPENSES
Management Fee (note $) .............................. $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
</TABLE>
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
<TABLE>
<CAPTION>
REALIZED GAIN ON INVESTMENTS (NOTE 2B&5)
<S> <C>
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
reulting from operations $ 5,352,207.77
--------------
</TABLE>
16
<PAGE>
NEW ALTERNATIVES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year End Year End
12/31/95 12/31/94
<S> <C> <C>
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 (depreciation) of investments .............. 2,342,681.73 (1,872,064.92)
-------------- ---------------
Increase (decrease) in net assets derived from investment 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
============== ===============
</TABLE>
17
<PAGE>
NOTES TO FINANCIAL STATEMENT
FOR 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 shares after the dividend. Aggregate paid in
capital was $27,498,462.12. Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Year End 12/31/95 Year End 12/31/94
----------------- -----------------
Shares $ Amount Shares $ Amount
<S> <C> <C> <C> <C>
Capital stock sold .......................... 62,538.844 1,983,398.19 72,395.324 2,146,915.92
Capital stock issued reinvestment of divdend 90,918.677 2,773,958.00 24,192.264 680,758.80
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)
</TABLE>
4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES -- Pursuant to an
agreement, 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 the year period 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.
18
<PAGE>
APPLICATION FOR PURCHASE OF SHARES
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
New Alternatives Fund, Inc. Phone (800) 423-8383 for General Inquiries
c/o Fund Plan Services, Inc. Phone (610) 834-3500 for Account Status
P.O. Box 874
2 Elm Street
Conshohocken, PA. 19428
I hereby remit $ ($2,500.00 minimum) to be applied toward the purchase of
shares and fractions thereof of New Alternatives Fund, Inc. (the Fund) Please
register the shares as follows:
(Please Print or Type Clearly)
1. ACCOUNT REGISTRATION (check one)
Phone # _____________________________________________________________________
area code telephone
[ ] Individual ______________________________________________________________
first name middle initial last name
[ ] Joint Tenant ____________________________________________________________
first name middle initial last name
[ ] Gifts to Minors ____________________ as custodian for ___________________
name of custodian
under the ___________________________________ Uniform Gifts to Minors Act
Name of State
[ ] Other ___________________________________________________________________
Indicate name of corporation, other organization of fiduciary
capacity; if trustee, include date of trust instrument.
2. MAILING ADDRESS __________________________________________________________
street
_____________________________________________________________________________
city state zip
3. SOCIAL SECURITY (OR IDENTIFICATION) NUMBER _______________________________
(Use Social Security Number of minor or custodian for minor account.)
- -----------------------------------------------------------------------------
I have received a copy of the Fund's Prospectus dated April 30, 1996. I
understand that dividends and distributions will be reinvested in additional
shares unless payment in cash is requested in writing. I certify and affirm,
under penalty of perjury, the above tax number is correct. I am over the age
of eighteen.
X
- -----------------------------------------------------------------------------
Signature of Applicant Signature of Joint Owner Date
Mail this form, when completed, to New Alternatives Fund, Inc., c/o Fund Plan
Services Inc., P.O. Box 874, 2 Elm Street, Conshohocken, PA. 19428, together
with a check payable to the order of New Alternatives Fund, Inc., drawn in US
currency on a bank in the United States.
- -------------------------------------------------------------------------------
To Be completed by Broker, if any.
- -------------------------------------------------------------------------------
19
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
Prospectus Summary and Fee Table .... 2
The Fund ............................ 4
Condensed Financial Data ............ 4
Investment Philosophy and Objectives 5
Broad Definitions ................... 5
Social and Environmental Implications 5
The Problem Creates the Potential ... 5
Illustrations of Technologies ....... 6
- -- Photovoltaic ..................... 6
- -- Conservation ..................... 6
- -- Architectural .................... 6
- -- Natural Gas and Fuel Cells ....... 6
- -- Biomass 6
- -- Hydroelectric .................... 7
- -- Wind Turbines .................... 7
- -- Recycling ........................ 7
- -- Additional Alternatives .......... 7
Certain Restrictions ................ 7
Management of the Fund .............. 7
Portfilio Managers .................. 8
Custodian, Transfer Agent,
and Dividend Paying Agent ........... 8
Description of Shares ............... 8
Reports to Shareholders / Inquiries . 9
Tax Status .......................... 9
Purchase of Shares .................. 10
Retirement Plans and IRA Accounts ... 11
Net Asset Value 11
Redemption of Shares ................ 11
Legal Counsel ....................... 12
Pending Legal Proceedings ........... 12
Independent Accountant .............. 12
Financial Statement ................. 13
Order Form .......................... 19
</TABLE>
To Purchase Shares Please Use
Order Form On Last Page
Of Prospectus (19)
PRINTED ON RECYCLED PAPER
NEW ALTERNATIVES
FUND, INC.
PROSPECTUS
April 30, 1996
<PAGE>
PART B
NEW ALTERNATIVES FUND, INC.
INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
Page No.
<S> <C> <C>
Item 10. Cover Page............................................. 34
Item 11. Table of Contents...................................... 35
Item 12. General Information and History........................ 36
Item 13. Investment Objectives and Policies(see Prospectus pg 9) 37
Item 14. Management of the Registrant(see Prospectus pg 18).... 40
Item 15. Control Persons and Principal Holders Of Securities
(see Prospectus pg 23)................................. 42
Item 16. Investment Advisory and Other Services (see
Prospectus pg 18)...................................... 43
Item 17. Brokerage Allocation................................... 47
Item 18. Capital Stock and Other Securities(see Prospectus).....
Item 19. Purchase, Redemption and Pricing of Securities Being
Offered (see Prospectus pg 26-31)......................
Item 20. Tax Status (see Prospectus pg 24)......................
Item 21. Underwriters........................................... 47
Item 22. Calculation of Yield Quotation of Money Market Funds... N/A
Item 23. Financial Statements(see Prospectus pg 3).............. N/A
</TABLE>
<PAGE>
1
STATEMENT OF ADDITIONAL INFORMATION April 30, 1996
File 811 3287
NEW ALTERNATIVES FUND, INC. File 2 74436
150 BROADHOLLOW ROAD #306
MELVILLE, NEW YORK 11747
(516) 423-7373
(800) 423-8383
This Statement of Additional Information is not a prospectus and
should be read in conjunction with the prospectus of NEW
ALTERNATIVES FUND, INC., dated April 30, 1996. Requests for copies
of the prospectus should be made by writing to: NEW ALTERNATIVES
FUND, INC., 150 BROADHOLLOW ROAD, MELVILLE, NEW YORK 11747,
ATTENTION: CORPORATE SECRETARY: or by calling the number listed
above.
TABLE OF CONTENTS
STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
Page No.
--------
(Registration)(Statement)
<S> <C>
General Information and History ...................... 22 (1)
Investment Restrictions .............................. 23-24 (2)
Directors and Officers ............................... 25-26 (4)
Control Persons and Principal Holders of Securities 26 (5)
Investment Manager ................................... 27-28 (6)
Brokerage Services ................................... 28 (7)
Underwriters ......................................... 29 (8)
</TABLE>
GENERAL INFORMATION AND HISTORY
The Certificate of Incorporation of the Fund was filed in New York, on January
17, 1978. The Fund was an inactive corporation until it commenced it's
activities as a mutual fund on September 3, 1982. The original name of the
corporation, The Solar Fund, Inc., was changed to its present name on August
6, 1982.
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
2
(Item 13)
INVESTMENT RESTRICTIONS
The following investment restrictions are deemed to be fundamental policies of
the Fund. As such, the Fund may not, without the affirmative vote of a
majority of its shareholders*:
1. Borrow money except from banks for temporary or emergency purposes in
an amount not in excess of five percent (5%) of the market value of its total
assets (not including the amount borrowed); except that the fund will not
invest in portfolio securities while outstanding borrowing exceeds five
percent (5%) of the market value of its assets. The Fund does not intend to
borrow at all.
2. Purchase on margin or sell short or write or purchase put
or call options.
3. Pledge any of its assets except that up to ten percent
(10%) of the market value of its total assets may be pledged in
connection with borrowing permitted by (1) above. The Fund does
not intend to pledge any of its assets.
4. Lend any of its assets other than through the purchase of a portion of
publicly distributed notes, bonds, negotiable certificates of deposit or other
debt securities.
5. Underwrite or participate in any underwriting of securities, except to
the extent that, in connection with the disposition of portfolio investments,
the Fund may be deemed to be an underwriter under the federal securities law.
6. Buy more than ten percent (10%) of the outstanding voting
securities of any one issuer.
7. Buy securities of any company that (including its predecessors or
controlling persons) has not been in business at least three (3) continuous
years if such investment at the time of purchase would cause more than ten
percent (10%) of the total assets of the Fund (at market value) to be invested
in securities of such companies.
8. With respect to seventy-five percent (75%) of its assets (at market
value), invest more than five percent (5%) of such assets in securities of any
one issuer, other than the U.S. Government, its agencies or instrumentalities.
9. Buy or hold securities of any issuer if, to the knowledge of the Fund,
any Officer, Director or ten (10%) shareowner of the Manager owns individually
one-half (1/2) of one percent (1%) of a class of securities of such issuer,
and such persons owning one-half (1/2) of one percent (1%) of such class
together own beneficially more than five percent (5%) of such securities.
10. Purchase securities of any other investment company,
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
3
except as part of a merger, consolidation or other reorganization.
11. Participate, on a joint or joint and several basis, in
any trading account in securities.
12. Buy or sell any real estate, real estate mortgages,
commodities or commodity contracts.
13. Issue senior securities.
14. Invest more than ten percent (10%) of its total assets (at market
value) in securities the disposition of which would be subject to legal
restriction or securities for which there are no readily available market
quotations. The Fund does not intend to invest in any restricted securities or
securities for which there are not readily available market quotations.
15. The Company will not engage in arbitrage or trade for the
control or management of another company.
16. Purchase securities of companies outside the United
States.
17. Invest more than twenty-five percent (25%) of the Fund's assets in
any single industry; excepting the solar and alternative energy industry as
described in the "Investment Objectives" and "Choice of Companies for
Investments" sections of the prospectus in which the Fund will always invest
more than twenty-five (25%) percent of its assets excepting for defensive
periods.
The Fund seeks out investments in a wide area of companies in a wide
variety of industries where such companies and their products reflect a
concern for a better environment. The Fund believes the interest in alternate
energy (as broadly defined in the Prospectus) and a better environment
represents a good long term investment strategy. The Fund believes that
companies with a poor record of social and environmental responsibility do not
serve shareholders or the community well. This supplements page 5, paragraph 2
of the Prospectus
17(A).(Texas) Invest in warrants, valued at the lower of cost or market,
may not exceed 5% of the value of the Fund's assets. Included within that
amount, but not to exceed 2% of the value of the Fund's net assets, may be
warrants which are not listed on the New York or American Stock Exchange.
Warrants acquired by the Fund in units or attached to securities may be deemed
to be without value. The Fund will not invest in oil, gas or other mineral
leases. The preceding restriction (17A) is meant to comply with rules of the
Texas Securities Department.
- ---------------------------------------------------------------------------
When computing compliance with the percentage restrictions recited in
paragraphs (1) through (17), changes in the values of the Fund's assets due to
market action, which cause such value to be in excess of percentage
limitations stated above, will not be considered violations of these
restrictions.
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
4
* A vote of a majority of outstanding securities shall be
required, pursuant to section (13a) of the Investment Company Act
for any major changes in policy or classification of securities or
issuance of senior securities. A "majority" of outstanding voting
securities is defined by Section 2(a)(42) of the Investment Company
Act of 1940 to mean the vote, at the annual or a special meeting of
the security holders of such company duly called, (a) 67 per centum
or more of the voting securities at such meeting, if the holders of
more that 50 per centum of the outstanding voting securities of
such company are present or represented by proxy; or (b) more than
50 per centum of the outstanding voting securities of such company,
whichever is less.
- ------------------------------------------------------------------
Item 14
DIRECTORS AND OFFICERS
<TABLE>
<CAPTION>
<S> <C>
*Maurice L. Schoenwald Age 75, member of New York
Director & (Chairman) (1947) & FLA (1978) Bar;
Vice President Founder New Alternatives
Longboat Key, Florida Fund, Inc.; author of art-
and BayShore, NY icles on legal and in-
vestment questions; former
faculty, Hofstra Univ.
*David J. Schoenwald Age 46, member of New York
Director, President Bar (1979); Fund
Secretary, Treasurer founder. Formerly re-
Huntington, New York porting staff of Newark
Star Ledger; now member,
Schoenwald & Schoenwald,
P.C., Attorneys; son of
Maurice L. Schoenwald
Arthur G Kaplan Age 72, admitted to
Director practice law, New York
Lake Oswego, Oregon (1951), Oregon (1956),
District of Columbia(1959);
formerly Assistant
Attorney General State of
Oregon; Asst. Counsel, two
U.S. Senate Subcommittees;
Special Counsel, Curtis
Publishing Co.; retired
as Director of Enforce-
ment, Office of Antiboy-
cott Compliance, U.S.
Dept. of Commerce.
Presently retired.
</TABLE>
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
5
<TABLE>
<CAPTION>
<S> <C>
Frank Tylinski Age 78, Industrial Eng-
Director ineer;Retired Great Neck,
New York as Pres., Tylinski
Associates, Inc.-Consultants and
manufacturer's representatives of elect
ronic parts and supplies.
Sharon Reier Age 48, Regional Editor
Director Financial World
Coconut Creek, Florida Magazine; Former
Editor with Board-Room; former
contributing editor Institutional
Investor; formerly staff of Forbes and
American Banker.
Dorothy Wayner Age 58, President,
Director Dwayner/Communications/
New York Advertising/and
Publishing,NY. MBA-New York University:
member and former officer board
director of Advertising Women of New
York, a private organization; member of
YWCA Academy of Women Achievers and
YWCA mentor program for disabled young
women.
Lee Clayton Age 69, R.N., M.S.; Sierra
Director Club, Nature Conservancy,
Huntington, New York Private Investor.
Dudley Clayton Age 72, Early education in
Director China. Graduate education
Huntington, New York in Horticulture. Retired
Director & Superintendent of
Pinelawn Memorial Park.
Interests in outdoor activities and
environmental issues.
</TABLE>
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
6
<TABLE>
<CAPTION>
<S> <C>
Daniel Wolfson Age 35, Resource Manager,
Director Farm & Wilderness Foundation
Woodstock, Vermont Plymouth, VT. Develops
forest & Wildlife habitat
for conservation area. B.S.
Environmental studies,
Hampshire College; M.S.
Resource management, Antioch
University.
</TABLE>
*Persons marked are interested persons within the meaning of the
Investment Company Act of 1940. Maurice Schoenwald and David
Schoenwald, although directors, receive all compensation through
Accrued Equities Inc. (founded in 1954 by Maurice Schoenwald), the
Investment Advisor and Principal Underwriter. Accrued Equities Inc.
has certain separate investments of its own and may from time to
time engage in activities other than management of the Fund.
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
7
Item 15
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
The following persons own of record, or beneficiary 5% or more of the Funds
shares:
<TABLE>
<CAPTION>
% OF TOTAL
NAME OWNERSHIP #SHARES ON 12/31/95
---- -------- ------- -----------
<S> <C> <C> <C>
none
</TABLE>
The number of shares and percentage of the total number of shares owned by
record or beneficially by the directors and officers of the Fund are
respectively 11,991 shares; 1.10%.
Item 16
INVESTMENT MANAGER
The Investment Manager is Accrued Equities, Inc., of 150 Broadhollow
Road, Melville, New York 11747, Telephone Number 516-423-7373. This is a New
York Corporation, organized in 1954.
The original investment clients of Accrued Equities, Inc. were limited to
legal clients of Maurice L. Schoenwald (who founded the company in 1954 and
has served continuously since that date). Maurice Schoenwald serves as
Chairman and director of the Fund and receives a pension from Accrued Equities
Inc. Since 1966 the company has offered investments to the public.
The controlling stockholder and Vice President of the Investment Manager is
David J Schoenwald. He is also President of the Fund. David J. Schoenwald is
presently serving as legal counsel to Accrued Equities Inc. David J.
Schoenwald is a member of the law firm of Schoenwald & Schoenwald, P.C.
Maurice L Schoenwald is President of the Investment Manager and Chairman
of the Board of Directors of the Fund. He is a minority stockholder of Accrued
Equities Inc.
Under the Management Agreement, the Manager receives a monthly fee from
the Fund at the following annual rates based on the average net assets of the
Fund at the end of each month:
<TABLE>
<CAPTION>
ANNUAL RATE ASSETS
<S> <C>
1%..............................First $10 million
.75%..............................Amounts over $10 million
.50%..............................Amounts over $30 million
</TABLE>
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
<TABLE>
<CAPTION>
<S> <C> 8
.45%.............................. Amounts over $100 million
</TABLE>
Such fee is higher than that of some other mutual funds. For the year
ended December 31, 1995 the manager received $250,562 for its advisory fee.
For the year ended December 31, 1994 the manager received $249.899 for its
advisory fee. For the year ended December 31, 1993 the manager received
$249.232 for its advisory fee. For the year ended December 31, 1992 the
manager received $207,640 for its advisory fee. For the year ended December
31, 1991 the manager received $172,725 for its advisory fee. For the year
ended December 31, 1990 the manager received $127,823 for its advisory fee.
In addition to the management fee, the Fund pays other expenses incurred
in its operation including, among others, taxes, brokerage commissions, fees
of directors who are not affiliated with the manager, securities registration
fees, charges of custodians, shareholder services and transfer agent services,
dividend disbursing and reinvestment expenses, auditing and legal expenses,
the typesetting costs involved in the printing of the Prospectus sent to
existing shareowners, costs of shareowner's reports, and the cost of corporate
meetings. Sales expenses, including the cost of printing prospectuses for
distribution to non-shareholders are paid for by the manager.
Under the Management Agreement, if total expenses of the Fund for any
fiscal year, including the management fee, but excluding interest, taxes,
brokerage commissions and extraordinary expenses excludable by state laws,
exceed the applicable expense limitations set by state securities regulations
in those states in which the company may make regular sales, the Manager will
reduce its compensation by the amount by which such expenses exceed state
limitations. The Fund, at present, will not offer its shares in states with
expense limits of lower than two percent (2%) of net asset value.
The Manager will, as required, lease at the expense of the Fund office
space. Other Fund expenses include the cost of telephone equipment, and
supplies and customary clerical and professional services including
preparation of reports, forms, tax returns, distributions, shareholder
inquiries, net asset valuations, bookkeeping and like services.
The Management Agreement was approved by the Fund's Board of Directors
(including a majority of Independent Directors) and by the Fund`s Shareholders
on September 15, 1995.
The Management Agreement must be approved each year by (a) a vote of the
Board of Directors of the Fund, or (b) a vote of the shareowners, and in
either case, by a majority of the independent directors. Any changes in the
terms of the Management Agreement must be approved by the shareowners. The
Management Agreement automatically terminates upon its assignment. In
addition, the Management Agreement is terminable at any time without penalty
by
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
9
the Board of Directors of the Fund or by a vote of the holders of a majority
of the Funds outstanding shares (as defined above) on sixty (60) days notice
to the Manager and by the manager on sixty days notice to the Fund.
The Fund pays Fund Plan Services, of Conshohocken, Pa. for various "back
office" bookkeeping or accounting services including distribution of
dividends, pricing, reports to publications of daily pricing, 1099 tax forms
distributions and related services. The annual and varying costs for such
services are set forth in the annual financial statement which is included in
the Prospectus.
The fund's custodian, Transfer agent, and auditor are named and their address
appear in the Prospectus. The Custodian Bank holds portfolio securities and
receives dividends and funds received from subscriptions from fund
shareholders. The transfer agent maintains records of shareholder addresses
and the shares issued and distributions to each; and it processes
subscriptions and redemptions of fund shares. The auditor audits the fund's
finances, provides customary accounting information to the fund.
Item 17
BROKERAGE SERVICES
Accrued Equities, Inc., is a registered broker/dealer, but it will not
engage in brokerage or equity securities of the type which would be included
in the Fund's portfolio. No officer or Director of the Fund or its distributor
is associated with any firm having an economic interest in general stock
brokerage activities.
The choice of a broker will be made by the Manager without benefit to any
director or controlling person. Allocation of brokerage transactions,
including their frequency, will be made in the best judgement of the Manager
and in a manner deemed fair and reasonable to the shareholders, rather than by
any formula.
The primary consideration in all portfolio securities transactions is
prompt and reliable execution of orders at the most favorable net price.
However, as long as the primary consideration is satisfied, the manager may
give consideration in the selection of broker/dealers to the research provided
(including analysis and reports concerning issuers, industries, securities,
economic factors and trends) by such firms, and payment may be made of a fee
higher than that charged by another broker/dealer which does not provide
research services, provided the Manager deems such allocation of brokerage to
be fair and reasonable to the shareholders.
Item 18. Capital Stock: See Prospectus which is incorporated by
reference.
Item 19. Purchase, Redemption and Pricing: See Prospectus.
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
10
Item 20. Tax Status: See Prospectus.
Item 21
UNDERWRITERS
The principal distributor of the Fund is Accrued Equities,
Inc. of 150 Broadhollow Road, Melville, New York 11747. Fund
shares are offered on a best efforts continuous basis. From time to
time Accrued Equities Inc. has served as a consultant to a foreign
environmental fund. Accrued Equities Inc. manages a small
portfolio of its own assets which have existed since a period
predating the founding of the fund as to which there is no conflict
of interest or overlapping of securities holdings with the Fund.
The commissions for the year ended December 31, 1990 were: Aggregate
commissions of $328,939 and the amount retained by Accrued Equities Inc. was
$157,057. The aggregate commissions for the year ended December 31, 1991 were
$247,461 and the amount retained by Accrued Equities Inc was $109,382. The
aggregate commissions for the year ended December 31, 1992 were $268,193 and
the amount retained by Accrued Equities Inc. was $127,323. The aggregate
commissions for the year end December 31, 1993 were $189.968 and the amount
retained by Accrued Equities Inc. was $96,992.69. The aggregate commissions
for the year end December 31, 1994 were $94,698.24 and the amount retained by
Accrued Equities Inc. was $55,427.66.The aggregate commissions for the year
ended December 31, 1995 were $80,748 and the amount retained by Accrued
Equities Inc. was $39,855.
<TABLE>
<CAPTION>
PERIOD ENDING 12/31/95 COMPENSATION OF ACCRUED EQUITIES INC.
NAME OF UNDERWRITING COMPENSATION OTHER
PRINCIPAL DISCOUNTS AND ON REDEMPTION BROKERAGE COMPEN-
UNDERWRITER COMMISSIONS AND REPURCHASE COMMISSION SATION
<S> <C> <C> <C> <C>
Accrued
Equities,Inc. $39,855 -0- -0- *$250,562
*Advisory fee $250,562
</TABLE>
Item 22. Calculation of Performance Data: Performance data appear
in detail on pages 3 and 4 of the prospectus and annual audited
financial report. See Prospectus dated April 30, 1996, and the
Annual Financial Report. December 31, 1995.
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
11
Item 23. Financial Statements of Fund: Complete audited financial statements
are part of the Prospectus. See Prospectus. All directors presently receive
$300 per year, excepting those affiliated with the Investment Advisor.
Directors travelling more than 500 miles once a year to the annual meeting may
have actual reimbursement for travel expense. This data appear in the annual
proxy statement to shareholders.Such affiliated persons receive all
compensation from the Investment Advisor and Principal Underwriter. No other
person or entity is compensated by the registrant excepting those entities and
persons as named in Prospectus and financial statement.
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
PART C
OTHER INFORMATION
NEW ALTERNATIVES FUND, INC.
Item 24: Financial Statements and Exhibits
(a) All financial statements are included in the Prospectus
(b) (1) Charter as now in effect. Exhibit #1 (Previously filed)
(2) By-Laws, Exhibit #2 (Previously filed).
(3) Voting trust. Not applicable.
(4) Specimen stock certificate and specimen form of acknowledgement of
shares (Previously filed).
(5) Copy of Investment Management Agreement. Exhibit #4 (Previously
filed).
(6) Copy of Underwriting Agreement. Exhibit #5 (Previously filed).
(Amendment(s) previously filed)
Sales Agreement previously filed
(7) Profit Sharing and related plans. None.
(8) Copy of Custodian Agreement - (previously filed-United Missouri Bank)
(9) Copies of Material Agreements. Not applicable.
(10) Opinion of counsel. Exhibit #6.
(11) Other opinions and Consents Exhibits #7 and #8 (Previously filed)
Consent of Accountant).
(12) Financial Statements Part 17. (Included in Prospectus).
(13) Copies of agreements in connection with original capital. Exhibit #9.
(Previously filed).
(14) Copies of Model Plan, etc. Not applicable.
(15) Copies of 12b-I plan. None.
<PAGE>
File 2-74436
811-3287
Item 25:
- --------
Persons controlled by or under Common Control with the registrant. This section
is not applicable, excepting that David J. Schoenwald is the controlling (53%)
stockholder of Acrrued Equities, Inc. Maurice L Schoenwald is a minority (47%)
stockholder of Accrued Equities Inc. Maurice L. Schoenwald is Vice President and
chairman of the Board of Directors of the Fund and owns 4670 shares or 0.04% of
the Fund of record and beneficially. David J. Schoenwald, President of the Fund
and the son of Maurice L. Schoenwald, owns 1355 shares (.01) the Fund.
Item 26:
- --------
There is only one class of securities, common stock, at one dollar par value.
There were 2579 holders of record of such shares on December 31, 1995.
Item 27:
- --------
In the event of a claim in connection with the securities registered, the
registrant will, unless in the opinion of Counsel the matter may be settled by
controlling precedent, submit to a court of appropriate jurisdiction the
question of whether or not indemnification is consistent with public policy as
expressed in the securities laws that may be applicable and will be governed by
the final adjudication of such issue.
On September 1, 1995 customary Directors and Officers Insurance was obtained
from Reliance Insurance Company, Philadelphia, Pa. Such insurance policy
requires and provides that the company (Fund) have in effect by-laws and
resolutions or provisions providing for indemnification to the Insureds
permitted and or required under applicable law. The Board of Directors approved
all change in documents necessary to obtain such insurance. The Board of
Directors, ratified the fund's insurance selection at the directors meeting on
September 15, 1995. There are not in effect provisions for indemnification of
officers and directors to the extent permitted or required under all applicable
laws, including requirements of the Securities Act of 1933 and all of the rules
and regulations thereunder.
<PAGE>
File 2-74436
811-3287
Item 28:
- --------
Maurice L. Schoenwald, the President of Accrued Equities, Inc., was an attorney
engaged in the private practice of law. Accrued Equities, Inc., has managed in
the past real property, loans, mortgages, and has been broker-dealer in
investment contracts and a broker of investment contracts for receiverships
initiated by the Securities Exchange Commission. The business address of Maurice
L. Schoenwald and Accrued Equities, Inc., is 150 Broadhollow Road, Melville, New
York 11747. David J. Schoenwald, Vice President of Accrued Equities Inc. is an
attorney licensed in the State of New York. The business address of David J.
Schoenwald is 150 Broadhollow Road, Melville, New York, 11747.
Item 29:
- --------
The only Underwriter is Accrued Equities, Inc. Its relationship and history are
described in the Prospectus. There are no other underwriting relationships. The
President and minority shareholder of the underwriter is Maurice L. Schoenwald,
of 150 Broadhollow Road, Melville, New York 11747. Maurice L. Schoenwald is also
Chairman of the Board of Directors and Vice President of the Fund. The Vice
President and majority shareholder of the underwriter is David J. Schoenwald, of
150 Boardhollow Road, Melville, NY 11747. The underwriting is on a "best
efforts" basis only. Checks for the purchase of securities by the investors
shall be made payable directly to the "Fund". The role of the Underwriter is to
organize, finance, manage, advertise, promote, provide clerical services,
administrative services, to act as investment manager and to develop and control
relationships with broker/dealers when and if they arise.
The "Fund" will play the Underwriter as described in the Prospectus. As sales
agreements are executed with other licensed and qualified broker/dealers,
payments to them will be deducted from the payments due Accrued Equities, Inc.
There are no fees, commissions earnings past or future not fully described in
the Prospectus.
<PAGE>
Item 30:
- --------
All books and records required will be in the care of Maurice L. Schoenwald,
President of the "Fund", or David J. Schoenwald, Vice President, Secretary and
Treasurer of the "Fund", at 150 Broadhollow Road, Melville, NY 11747, except
those within possession of the Custodian described in the prospectus.
Item 31:
- --------
There is no management service contract excepting those services described in
the Prospectus and exhibit four (previously filed).
UNDERTAKING
Item 31:
- --------
(a) N/A
Item 33:
- --------
Synopsis ................. (see Part A, Page 5 and 6).
<PAGE>
Kenneth D Katz
Certified Public Accountant
64 North Park Avenue
Rockville Centre, NY 11570
REPORT AND CONSENT OF INDEPENDENT ACCOUNTANT
To the Shareowners and Directors
of
New Alternatives Fund, Inc.
With reference to the Registration Statement (Form N-1A) of New Alternatives
Fund, Inc., I hereby consent to the use of my report dated January 29, 1996
for the period ending December 31, 1995 appearing in the Prospectus,
constituting a part of such registration statement, when such report is
accompanied by the financial statements referred to therein. I also consent to
the reference to myself in the Prospectus.
The examination referred to in the above mentioned report included an
examination of the supporting statements of this Registration Statement and,
in my opinion, such supporting statements presents fairly the information
required to be set forth therein in conformity with generally accepted
accounting principles.
/S/_________________________________
KENNETH D. KATZ, C.P.A.
Rockville Centre, New York
March 2 1996
<PAGE>
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Act of 1940, the Registrant has caused this post-effective amendment to the
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized in the Village of Melville, of the State of New
York, on the 28 day of March 1996.
NEW ALTERNATIVES FUND, INC.
BY: /S/
David J Schoenwald
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Act of 1940, the Registration Statement has been signed below by the following
persons in their capacities and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURES TITLE DATE
---------- ----- ----
<S> <C> <C> <C>
/S/__________________ President, Director 3/28/96 David J Schoenwald
David J Schoenwald
/S/__________________ Vice President, 3/28/96 Maurice L Schoenwald
Maurice L Schoenwald Director (Chairman)
</TABLE>
<PAGE>
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Act of 1940, the Registration Statement has been signed below by the following
persons in the capacities and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURES TITLE DATE
---------- ----- ----
<S> <C> <C>
/S/__________________ President and 3/20/96
David J. Schoenwald Director
/S/__________________ Vice President, Secre- 3/28/96
Maurice L. Schoenwald tary, Treasurer and
Director
/S/__________________ Director 3/23/96
Arthur Kaplan
/S/__________________ Director 3/20/96
Frank Tylinski
_____________________ Director ________
Sharon Reier
/S/__________________ Director 3/25/96
Dorothy Wayner
/S/__________________ Director 3/30/96
Dudley Clayton
/S/__________________ Director 3/30/96
Lena Clayton
/S/__________________ Director 3/22/96
Daniel Wolfson
</TABLE>
*Maurice L. Schoenwald as Attorney in Fact by Power of file incorporated by
reference
