Annual Financial Report
June 30, 1997
<PAGE>
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
For each share of capital stock outstanding*
<TABLE>
<CAPTION>
Six Year Year Year Year Year Year Year
Months End End End End End End End
06/30 12/31 12/31 12/31 12/31 12/31 12/31 12/31
1997 1996 1995 1994 1993 1992 1991 1990
NET ASSET VALUE AT BEGINNING
OF PERIOD $30.87 $30.51 $28.14 $30.0 $29.95 $29.19 $24.62 $27.57
------ ------ ------ ----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income $.33 $.73 $.75 $.72 $.62 $.62 $.72 $.70
Expenses .18 .39 .40 .40 .33 .28 .29 .27
------ ------ ------ ----- ---- ------ ----- -----
Net Investment Income .15 .34 .35 .32 .29 .34 .43 .43
Net realized & Unrealized
gain (Loss) on investment 1.84 3.72 5.14 (1.43) .58 1.10 5.86 (2.53)
------ ------ ------ ----- ---- ------ ----- ------
Total from Investment
operations 1.99 4.06 5.49 (1.11) .87 1.44 6.29 (2.10)
Dividends from net
investment income (.34) (.35) (.32) (.29) (.34) (.43) (.43)
Distributions from net
realized gain (3.36) (2.77) (.43) (.53) (.34) (1.29) (.42)
------ ------ ------ ----- ---- ------ ----- ------
Total Distributions (3.70) (3.12) (.75) (.82) (.68) (1.72) (.85)
Net change in net asset value 1.99 .36 2.37 (1.86) .05 .76 4.57 (2.95)
Net asset value as of end
of the period 32.86 30.87 30.51 28.14 30.00 29.95 29.19 24.62
------ ------ ------ ----- ----- ----- ----- ------
Total return
(Sales load not reflected) 6.4% 13.3% 19.5% (3.7)% 2.9% 4.9% 25.6% (7.6)%
Net assets, end of period $37,158 $35,549 $32,236 $28,368 $31,567 $28,896 $23,931 $16,433
Ratio of operating expense
to net assets** 1.16% 1.21% 1.28% 1.30% 1.11% 1.04% 1.18% 1.27%
Ratio of net investment income
to average net assets** .96% 1.04% 1.12% 1.04% .96% 1.25% 1.74% 2.08%
Portfolio turnover 23.71% 51.2% 48.72% 33.00% 18.36% 13.10% 21.50% 24.70%
Average commission rate paid .068 .074 .072
Number of shares oustanding 1,130,808 1,038,561 965,769 984,847 1,026,469 945,006 776,974 646,664
at end of period***
</TABLE>
<PAGE>
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
For each share of capital stock outstanding*
(continued)
<TABLE>
<CAPTION>
Year Year Year Year First
End End End End Seven
12/31 12/31 12/31 4/30 Months
1989 1988 1987 1987 4/30/83
**** ****
NET ASSET VALUE AT BEGINNING
OF PERIOD $22.55 $18.85 $22.43 $19.68 | $12.50
------ ------ ------ ------ | ------
<S> <C> <C> <C> <C> | <C>
Investment Income $.73 $.67 $.40 $.38 | $.38
|
Expenses .26 .25 .16 .16 | .20
------ ------ ------ ------ | ------
Net Investment Income .47 .42 .24 .22 | .18
Net realized & Unrealized |
gain (Loss) on investment 5.41 4.09 (3.21) 3.45 | 3.08
------ ------ ------ ------ | ------
|
Total from Investment |
operations 5.88 4.51 (2.97) 3.67 | 3.26
Dividends from net |
investment income (.47) (.42) (.24) (.22) | (.18)
Distributions from net |
realized gain (.39) (.39) (.38) (.70) | (.19)
------ ------ ------ ------ | ------
Total Distributions (.86 ) (.81) (.62) (.92) | (.37)
Net change in net asset value 5.03 3.71 (3.59) 2.75 | 2.89
Net asset value as of end |
of the period 27.57 22.55 18.85 22.43 | 15.39
------ ------ ------ ------ | ------
Total return |
(Sales load not reflected) 26.0% 23.9% (2.6)% 22.2% | 10.4%
Net assets, end of period $11,893 $6,162 $4,133 $3,404 | $163
Ratio of operating expense |
to net assets** 1.25% 1.24% .80% 1.17% | 1.08%
Ratio of net investment income |
to average net assets** 2.20% 2.18% 1.23% 1.68% | 1.69%
Portfolio turnover 14.60% 25.88% 8.57% 8.79% | 74.50%
Average commission rate paid |
Number of shares oustanding 419,212 264,414 212,704 151,848 | 10,592
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
**** At this time the fund was on a fiscal year. Table for 1983-1987 is
available on request.
Deleted to make space.
<PAGE>
June 30, 1997
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
COMMON STOCKS:91.0%
- ---------------------
Shares Market Value
------ ------------
Alternative Energy and
- ----------------------
Process Equipment:11.4%
- -----------------------
<S> <C> <C>
Air Products 8000 $ 650,000.00
*California Energy 1000 38,000.00
*Calpine 5000 95,000.00
*Energy Conversion Devices 10000 127,500.00
*Energy Research Corp 22500 205,312.50
Idaho Power 5000 156,875.00
OM Group 25000 828,125.00
*Real Goods Trading 1000 5,750.00
Trigen 30000 750,000.00
York International 30000 1,380,000.00
------------
$ 4,236,562.50
Clean Air:6.7%
*BHA Group 22000 $ 407,000.00
Engelhard 30000 628,125.00
Praxair 15000 840,000.00
*Thermo Instruments 20000 612,500.00
------------
$ 2,487,625.00
Clean Water:11.4%
Ameron 15000 $ 849,375.00
Aquarion 15000 405,000.00
Betz Labs 10000 660,000.00
Calgon Carbon 25000 346,875.00
Culligan Water 27000 1,208,250.00
*Ionics 17000 773,500.00
------------
$ 4,243,000.00
Conservation:4.5%
Owens Corning 5000 215,625.00
T J International 30000 705,000.00
Minerals Technology 20000 750,000.00
------------
$ 1,670,625.00
Environmental(General):3.1%
Dames & Moore 15000 $ 185,625.00
*Flow International 40000 390,000.00
*Superior Industries 20000 475,000.00
*Thermo Sentron 10000 111,250.00
------------
$ 1,161,875.00
Efficient Electric
Devices:3.7 %
Baldor 40000 $ 1,182,500.00
*Itron 7500 194,062.50
------------
$ 1,376,562.50
Natural Foods:6.4%
*United Natural Foods 20000 420,000.00
*Whole Foods Markets 20000 662,500.00
*Wild Oats 20000 510,000.00
*Wholesome & Hearty 5000 40,625.00
Worthington Foods 30000 735,000.00
------------
$ 2,368,125.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW ALTERNATIVES FUND, INC June 30, 1997
STATEMENT OF INVESTMENTS (continued)
Shares Market Value
------ ------------
Recycling-Paper:6.4%
<S> <C> <C>
Caraustar Ind 20000 $ 692,500.00
Republic Group 38500 774,812.50
Sonoco Products 25000 760,937.50
*Thermo Fibertek 15000 157,500.00
-------------
$ 2,385,750.00
Recycling-Metals:9.4%
Commonwealth Industries 20000 407,500.00
Commercial Metals 25000 806,250.00
Imco Recycling 20000 377,500.00
*Metal Management 10000 149,375.00
Nucor 17000 973,250.00
Quanex 25000 767,187.50
*Recycling Industries 10000 19,375.00
-------------
$ 3,500,437.50
Natural Gas-Distribtion:5.8%
Energen 10000 336,875.00
National Fuel Gas 20000 838,750.00
Northwest Natural Gas 15000 392,812.50
Puget Sound Power 21500 569,750.00
-------------
$ 2,138,187.50
Natural Gas-Diversified:15.7%
Burlington Resources 25000 $ 1,103,125.00
Consolidated Natural Gas 10000 538,125.00
Enron 25000 1,020,312.50
Louis Dreyfus Natual Gas 10000 162,500.00
MCN 30000 918,750.00
Questar 25000 1,009,375.00
Williams Co's 25000 1,093,750.00
-------------
$ 5,845,937.50
Railroads:6.5%
Norfolk Southern Railway 12000 1,209,000.00
Union Pacific Railway 17000 1,198,500.00
-------------
$ 2,407,500.00
Total Common Stock $33,822,187.50
Money Market Deposits and Treasury Bills:8.1%
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 $2,587,999.45) 2,594,276.00
-------------
$ 2,994,276.00
Total Common Stock(91.0%) $33,822,187.50
Bank money market and Treasury Bills(8.1%) 2,994,276.00
Cash and Receivables, less liabilities(0.9%) 341,614.14
-------------
NET ASSETS(100%) $37,158,077.64
</TABLE>
*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, 1997
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investment Securities at market value
(Cost:$27,242,235.06) (Notes 2A and 5)........... $33,822,187.50
Bank money market deposits....................... 400,000.00
U.S.Treasury Bills at market..................... 2,594,276.00
Cash............................................. 569,525.25
Receivables: Dividends.......................... 43,262.50
Interest........................... 1,068.52
Securities Sold.................... 0.00
Subscriptions receivable........... 39,289.38
-------------
Total Assets ................................... $37,469,609.15
LIABILITIES
Payables: Accrued Operating Expenses :
Accounting.................................... $ 341.00
Custodian................................ .... 1,867.07
Directors Fees ............................... 1,982.14
State Taxes .................................. 182.62
Advisory fee ................................. 23,346.71
Regulatory fees .............................. 2,002.76
Printing ..................................... 2,033.39
Bonds......................................... 5 500.43
Transfer Agent-Fund Plan Services............. 1,776.09
Fund Pricing-Fund Plan Services............... 2,074.76
Other......................................... 1,566.44
---------
42,673.41
Securities Purchased.......................... 244,650.00
Redemptions Payable........................... 24,208.10
Dividend distribution payable................. 0.00
Total Liabilities ............................ $ 311,531.51
----------
Net Assets at market, applicable to 1,130,808.294
outstanding shares. There are eight million commmon shares
authorized. There is only one class of common stock. (note 3)
==============
$37,158,077.64
</TABLE>
<PAGE>
5
STATEMENT OF OPERATIONS
For the Period Ending June 30, 1997
<TABLE>
<CAPTION>
INVESTMENT INCOME AND EXPENSE
Income :
<S> <C>
Dividends.................................... $ 268,275.00
Interest .................................... 105,362.69
----------
Total Income ................................ 373,637.69
Expenses :
Management Fee (note 4) ..................... $ 137,106.78
Custodian fees
United Missouri Bank......................... 9,955.00
State Taxes.................................. 213.58
Accounting .................................. 1,991.00
Directors ................................... 1,290.53
Filing Fees.................................. 5,538.60
Postage and Printing ........................ 6,335.00
Bond and Insurance .......................... 3,201.89
Transfer Agent-Fund Plan Services............ 19,831.00
Fund Pricing-Fund Plan Services.............. 14,480.00
Other........................................ 4,525.00
----------
Total Expenses .............................. $ 204,468.38
Net Investment Income ....................... $ 169,169.31
</TABLE>
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
<TABLE>
<CAPTION>
Realized gain on investments (note 2B&5)
<S> <C>
Proceeds from sales.......................... $ 7,442,662.25
Cost of Securities Sold ..................... 6,765,603.71
------------
Net Realized Gain ........................... $ 677,058.54
Unrealized appreciation (depreciation) of investments :
Beginning of period ......................... $ 5,164,210.77
End of period .............................. 6,579,952.44
------------
Total unrealized appreciation (depreciation). $ 1,415,741.67
For the period.
Net realized and unrealized gain (loss)
on investments .... ........................ $ 2,092,800.21
------------
Net increase (decrease) in net assets
resulting from operations.................... $ 2,261,969.52
------------
</TABLE>
<PAGE>
6
NEW ALTERNATIVES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Mo's End Year End
06/30/97 12/31/96
From Investment Activities:
<S> <C> <C>
Net Investment income .... $169,169.31 $353,937.19
Net Realized gain from
security transactions ..... 677,058.54 3,491,047.59
Unrealized appreciation
(deprec.) of investments.. 1,415,741.67 426,790.92
------------- -------------
Increase (decrease) in net
assets derived from invest-
ment activities.......... $2,261,969.52 $4,271,775.70
------------- -------------
Distributions to Shareholders:
From net investment income
dividends to shareholders .. ------ (353,837.68)
Distributions to
shareholders ....... ------ (3,491,018.44)
From Capital Share Transactions :
Net increase (decrease) from capital
transactions (note 3)... (652,741.03) 2,886,185.03
Increase(decrease) in
net assets:.............. 1,609,208.19 3,313,104.61
Net Assets :
At the beginning of the
period................. $35,548,869.45 $32,235,764.84
-------------- --------------
At the end of the
period................. $37,158,077.64 $35,548,869.45
-------------- --------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENT FOR THE
PERIOD ENDED JUNE 30, 1997
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 30, 1997 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 30,
1997 for federal tax purposes is $27,242,235.06.
3) CAPITAL STOCK - There are eight million shares of capital stock authorized.
On June 30, 1997 - 1,130,808.294 shares were issued and outstanding. Aggregate
paid in capital including reinvestment of dividends was $29,731,908.12.
Transactions in capital stock were as follows:
Six Mo's End
06/30/97 Year End 12/31/96
------------- -----------------
Capital stock Shares $ Amount Shares $ Amount
sold......... 36,862.210 1,133,491.25 75,270.800 2,427,524.58
Capital stock
issued reinvest ----- ------ 113,185.546 3,494,044.05
ment of divd..
Redemptions. (57,767.951) (1,786,232.28) ( 93,430.127) (3,035,383.60)
------------ ------------- ------------ --------------
Net Increase/ (20,905.741) (652,741.03) 95,026.219 $ 2,886,185.03
(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 annualized expense ratio for the period
ended June 30, 1997 was 1.16%. 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 period ended June 30, 1997, the aggregate cost of
securities purchased totalled $ 9,933,424.54. Net realized gains were computed
on a first in, first out basis. The amount realized on sales of securities for
the period ended June 30, 1997 was $ 7,442,662.25.
