<PAGE>
SEMI ANNUAL
FINANCIAL REPORT
JUNE 30, 1999
<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 Year
Months End End End End End End End End
06/30 12/31 12/31 12/31 12/31 12/31 12/31 12/31 12/31
1999 1998 1997 1996 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING
OF PERIOD 28.64 $32.07 $30.87 $30.51 $28.14 $30.0 $29.95 $29.19 $24.62
----- ------ ------ ------ ------ ----- ------ ------ ------
Investment Income $.32 $.52 $.64 $.73 $.75 $.72 $.62 $.62 $.72
Expenses .19 .37 .38 .39 .40 .40 .33 .28 .29
----- ------ ------ ------ ------ ----- ------ ------ ------
Net Investment Income .13 .15 .26 .34 .35 .32 .29 .34 .43
Net realized & Unrealized
gain (Loss) on investment 3.02 (3.22) 3.16 3.72 5.14 (1.43) .58 1.10 5.86
----- ------ ------ ------ ------ ----- ------ ------ ------
Total from Investment
operations 3.15 (3.07) 3.42 4.06 5.49 (1.11) .87 1.44 6.29
Dividends from net
investment income -- (.15) (.26) (.34) (.35) (.32) (.29) (.34) (.43)
Distributions from net
realized gain -- (.16) (1.96) (3.36) (2.77) (.43) (.53) (.34) (1.29)
----- ------ ------ ------ ------ ----- ------ ------ ------
Total Distributions -- (.31) (2.22) (3.70) (3.12) (.75) (.82) (.68) (1.72)
Net change in net asset
value 3.15 (3.53) 1.20 .36 2.37 (1.86) .05 .76 4.57
Net asset value as of end
of the period 31.69 $28.54 32.07 30.87 30.51 28.14 30.00 29.95 29.19
----- ------ ------ ------ ------ ----- ------ ------ ------
Total return
(Sales load not reflected) 11.0% (10%) 11.1% 13.3% 19.5% (3.7)% 2.9% 4.9% 25.6%
Net assets, end of period $34,356 $33,021 $37,941 $35,549 $32,236 $28,368 $31,567 $28,896 $23,931
Ratio of operating expense
to net assets** 1.12% 1.18% 1.15% 1.21% 1.28% 1.30% 1.11% 1.04% 1.18%
Ratio of net investment
income to average
net assets** .89% .49% .79% 1.04% 1.12% 1.04% .96% 1.25% 1.74%
Portfolio turnover 51.4% 32.4% 53.9% 51.2% 48.72% 33.00% 18.36% 13.10% 21.50%
Number of shares
outstanding
at end of period*** 1,084,263 1,156,952 1,111,377 1,038,561 965,769 984,847 1,026,460 945,006 776,974
<CAPTION>
Year Year Year Year Year First
End End End End End Seven
12/31 12/31 12/31 12/31 4/30 Months
1990 1989 1988 1987 1987 4/30/83
**** ****
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING
OF PERIOD $27.57 $22.55 $18.85 $22.43 $19.68 $12.50
------ ------ ------ ------ ------ ------
Investment Income $.70 $.73 $.67 $.40 $.38 $.38
Expenses .27 .26 .25 .16 .16 .20
------ ------ ------ ------ ------ ------
Net Investment Income .43 .47 .42 .24 .22 .18
Net realized & Unrealized
gain (Loss) on investment (2.53) 5.41 4.09 (3.21) 3.45 3.08
------ ------ ------ ------ ------ ------
Total from Investment
operations (2.10) 5.88 4.51 (2.97) 3.67 3.26
Dividends from net
investment income (.43) (.47) (.42) (.24) (.22) (.18)
Distributions from net
realized gain (.42) (.39) (.39) (.38) (.70) (.19)
------ ------ ------ ------ ------ ------
Total Distributions (.85) (.86) (.81) (.62) (.92) (.37)
Net change in net asset
value (2.95) 5.03 3.71 (3.59) 2.75 2.89
Net asset value as of end
of the period 24.62 27.57 22.55 18.85 22.43 15.39
------ ------ ------ ------ ------ ------
Total return
(Sales load not reflected) (7.6)% 26.0% 23.9% (2.6)% 22.2% 10.4%
Net assets, end of period $16,433 $11,893 $6,162 $4,133 $3,404 $163
Ratio of operating expense
to net assets** 1.27% 1.25% 1.24% .80% 1.17% 1.08%
Ratio of net investment
income to average
net assets** 2.08% 2.20% 2.18% 1.23% 1.68% 1.69%
Portfolio turnover 24.70% 14.60% 25.88% 8.57% 8.79% 74.50%
Number of shares
outstanding
at end of period*** 646,664 419,212 264,414 212,704 151,848 10,592
</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, 1999
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS
COMMON STOCKS: 73%
SHARES MARKET VALUE
------ ------------
ALTERNATE ENERGY: 14.63%
*AstroPower 35000 $ 612,500.00
*Ballard Power Systems 10000 320,000.00
*Bonneville Pacific Corp 32325 250,518.75
*Calpine 20000 1,080,000.00
*Energy Conversion Devices 1000 9,937.50
*Energy Research Corp 25000 356,250.00
*Evercell 8333 92,183.81
Idaho Power 15000 472,500.00
*Mechanical Technology 15000 405,000.00
*Real Goods Trading 1000 3,687.50
Trigen 75000 1,425,000.00
--------------
$ 5,027,577.56
CLEAN AIR: 2.46%
*Thermo Instruments 50000 $ 843,750.00
--------------
$ 843,750.00
CLEAN WATER: 3.02%
American Water Works 5000 $ 153,750.00
Ameron Intl. 20000 882,500.00
--------------
$ 1,036,250.00
CONSERVATION: 7.22%
Minerals Technology 25000 $ 1,395,312.50
T J International 35000 1,085,000.00
--------------
$ 2,480,312.50
ENVIRONMENTAL (GENERAL): 2.36%
*Casella Waste Systems 10000 $ 260,000.00
*Flow International 50000 540,625.00
*Kafus Environmental 1000 9,625.00
--------------
$ 810,250.00
EFFICIENT ELECTRIC DEVICES: 8.16%
Baldor Electric 30000 $ 596,250.00
*SLI Inc. 50000 1,350,000.00
York International 20000 856,250.00
--------------
$ 2,802,500.00
NATURAL FOODS: 13.69%
*Hain Food Group, Inc. 10000 $ 206,250.00
*Horizon Organic 25000 365,625.00
*United Natural Foods 50000 1,237,500.00
*Whole Foods Markets 35000 1,682,187.50
*Wild Oats Markets 40000 1,213,750.00
--------------
$ 4,705,312.50
<PAGE>
JUNE 30, 1999
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
SHARES MARKET VALUE
------ ------------
RECYCLING: 9.26%
Caraustar Industries 40000 $ 987,500.00
Commercial Metals 40000 1,140,000.00
Imco Recycling 30000 513,750.00
Republic Group 30000 540,000.00
--------------
$ 3,181,250.00
NATURAL GAS
TRANSMISSION & DISTRIBUTION: 3.85%
Keyspan Energy Corp. 40000 $ 1,055,000.00
KN Energy 20000 267,500.00
--------------
$ 1,322,500.00
RAILROADS: 8.19%
Burlington Northern Santa Fe 30000 $ 930,000.00
CSX Corp 15000 679,687.50
Norfolk Southern 40000 1,205,000.00
--------------
$ 2,814,687.50
Total Common Stock (cost $20,193,291.91) $25,026,615.06
--------------
Market Deposits and Treasury Bills:
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 $9,144,149.07) 9,171,680.72
--------------
$ 9,571,680.72
Total Common Stock (72.84%) $25,026,615.06
Bank money market and Treasury Bills(27.86%) 9,571,680.72
Cash and **Receivables, less liabilities (-.70)% (241,603.38)
--------------
NET ASSETS (100%) 34,356,692.40
*Securities for which no cash dividends were paid during the fiscal year.
<PAGE>
JUNE 30, 1999
NEW ALTERNATIVES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment Securities at market value
(Cost:$20,125,129.41) (Notes 2A and 5)...................... $ 25,026,615.06
Bank money market deposits.................................. 400,000.00
U.S.Treasury Bills at market................................ 9,171,680.72
Cash........................................................ 194,129.65
Receivables: Dividends..................................... 10,018.96
Interest.................................................... 1,199.72
Securities Sold............................................. 0.00
Subscriptions receivable.................................... 4,761.90
----------------
Total Assets ............................................... $ 34,808,406.01
LIABILITIES
Payables: Accrued Operating Expenses
Accounting ................................................. $ 390.00
Custodian................................ .................. 4,295.86
Directors Fees ............................................. 2,808.19
State Taxes ................................................ 283.52
Advisory fee ............................................... 22,022.91
Regulatory fees ............................................ 6,159.43
Printing ................................................... 4,499.30
Bond and Insurance.......................................... 1,595.86
Transfer Agent-First Data Investor Services................. 8,638.09
Fund Pricing-First Data Investor Services................... 3,334.76
Other....................................................... 6,030.79
----------------
60,058.71
Securities Purchased........................................ $ 388,725.00
Redemptions Payable......................................... $ 3,000.00
Dividend distribution payable............................... (70.10)
----------------
Total Liabilities .......................................... $ 451,713.61
================
$ 34,356,692.40
Net Assets at market, applicable to 1,084,263.415 outstanding shares. There are
eight million common shares authorized. There is only one class of common stock.
(note 3)
<PAGE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDING JUNE 30, 1999
INVESTMENT INCOME AND EXPENSE INCOME:
Dividends................................................. $ 133,816.77
Interest.................................................. 212,331.65
--------------
Total Income.............................................. $ 346,148.42
EXPENSES:
Management Fee (note 4)................................... $ 129,176.44
Custodian Fees
United Missouri Bank...................................... 9,955.00
State Taxes............................................... 363.44
Accounting................................................ 2,353.00
Directors................................................. 1,324.92
Filing Fees............................................... 5,538.60
Postage and Printing...................................... 2,905.05
Bond and Insurance........................................ 5,178.47
Transfer Agent-First Data................................. 21,720.00
Fund Pricing-First Data................................... 15,611.25
Other..................................................... 6,183.50
--------------
Total Expenses............................................ $ 200,309.67
NET INVESTMENT INCOME..................................... $ 145,838.75
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN ON INVESTMENTS (NOTE 2B & 5)
Proceeds from sales....................................... $17,388,961.13
Cost of Securities Sold................................... 16,604,428.92
--------------
Net Realized Gain......................................... $ 784,532.21
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:
Beginning of period....................................... $ 2,355,015.49
End of period............................................. 4,833,323.15
--------------
Total Unrealized appreciation (depreciation) for the
period................................................... $ 2,478,307.66
Net Realized and Unrealized gain (loss) on investments.... $ 3,262.839.87
--------------
Net Increase (decrease) in net assets resulting from
operations............................................... $ 3,408,678.62
--------------
<PAGE>
JUNE 30, 1999
NEW ALTERNATIVES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Mo's End Year End
06/30/99 12/31/98
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Net Investment Income $ 145,838.75 $ 176,427.34
Net Realized gain from security transactions 784,532.21 188,003.97
Unrealized appreciation (depreciation) of investments 2,478,307.66 (4,217,251.59)
-------------- --------------
Increase (decrease) in net assets derived from
investment activities $ 3,408,678.62 $(3,852,820.28)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net Investment income dividends to shareholders -- $ (176,501.42)
Distributions to shareholders -- $ (188,130.28)
FROM CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) from Capital Transactions (note 3) $(2,073,705.31) $ (702,052.38)
INCREASE (DECREASE) IN NET ASSETS: $ 1,334,973.31 $(4,919,504.36)
NET ASSETS AT:
Beginning of the Period $33,021,719.09 $37,941,223.50
End of the Period $34,356,692.40 $33,021,719.09
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENT FOR THE
PERIOD ENDING JUNE 30, 1999
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, the American Stock Exchange and the
NASD National Market System on June 30, 1999 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,
1999 for federal tax purposes is $20,193,291.91.
3) CAPITAL STOCK - There are eight million shares of capital stock authorized.
On June 30, 1999 there were 1,084,263.415 shares outstanding. Aggregate paid in
capital including reinvestment of dividends was $28,593,160.21. Transactions in
capital stock were as follows:
<TABLE>
<CAPTION>
Six Mo's End 06/30/99 Year End 12/31/98
--------------------- -----------------
Shares Dollar Amount Shares Dollar Amount
<S> <C> <C> <C> <C>
Capital stock sold 21,181.843 $ 607,316.72 78,407.173 $ 2,481,638.78
Capital stock issued
reinvestment of dividends -- -- 11,477.383 $ 327,935.59
Redemptions (98,873.915) $(22,681,022.03) (115,835.579) $(3,511,626.75)
----------- --------------- ------------ --------------
Net Increase (Decrease) (72,690.072) $ (2,073,705.31) (25,951.023) $ (702,052.38)
</TABLE>
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,
Accrued Equities reduces its management fee by the amount of such excess
expenses. The annualized expense ratio for the period ended June 30, 1999 was
1.12%. The Fund pays no remuneration to its officers, each of whom is also an
officer of Accrued Equities, Inc.
5) PURCHASES AND SALES OF SECURITIES - During the six months ended June 30, 1999
the aggregate cost of securities purchased totaled $11,516,067.68. 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, 1999 was $17,388,961.13.
