<PAGE>
SEMIANNUAL
FINANCIAL REPORT
JUNE 30, 2000
<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
2000 1999 1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning
of Period $28.85 $28.54 $32.07 $30.87 $30.51 $28.14 $30.00 $29.95
------ ------ ------ ------ ------ ------ ------ ------
Investment Income $.35 $.66 $.52 $.64 $.73 $.75 $.72 $.62
Expenses .20 .38 .37 .38 .39 .40 .40 .33
------ ------ ------ ------ ------ ------ ------ ------
Net Investment Income .15 .28 .15 .26 .34 .35 .32 .29
Net realized & Unrealized
gain (Loss) on investment 9.02 2.14 (3.22) 3.16 3.72 5.14 (1.43) .58
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment operations 2.42 (3.07) 3.42 4.06 5.49 (1.11) .87
Dividends from net
investment income .... (.28) (.15) (.26) (.34) (.35) (.32) (.29)
Distributions from net .... (1.83)
------ ------ ------ ------ ------ ------ ------
realized gain (.16) (1.96) (3.36) (2.77) (.43) (.53)
------ ------ ------ ------ ------ ------
Total Distributions .... (2.11) (.31) (2.22) (3.70) (3.12) (.75) (.82)
Net change in net asset value 9.17 .31 (3.53) 1.20 .36 2.37 (1.86) .05
Net asset value as of end
of the period 38.02 28.85 $28.54 32.07 30.87 30.51 28.14 30.00
------ ------ ------ ------ ------ ------ ------ ------
Total return
(Sales load not reflected) 31.8% 8.5% (10%) 11.1% 13.3% 19.5% (3.7)% 2.9%
Net assets, end of period $42,950 $32,555 $33,021 $37,941 $35,549 $32,236 $28,368 $31,567
Ratio of operating expense
to net assets** 1.13% 1.13% 1.18% 1.15% 1.21% 1.28% 1.30% 1.11%
Ratio of net investment income
to average net assets** .43% .89% .49% .79% 1.04% 1.12% 1.04% .96%
Portfolio turnover 76.5% 87.3% 32.4% 53.9% 51.2% 48.72% 33.00% 18.36%
Number of shares outstanding 1,129,657.811 1,058,230 1,156,952 1,111,377 1,038,561 965,769 984,847 1,026,460
at end of period***
<CAPTION>
First
Year Year Year Year Year Year Seven
End End End End End End Months
12/31 12/31 12/31 12/31 12/31 12/31 4/30/83
1992 1991 1990 1989 1988 1987 ****
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning
of Period $29.19 $24.62 $27.57 $22.55 $18.85 $22.43 $12.50
------ ------ ------ ------ ------ ------ ------
Investment Income $.62 $.72 $.70 $.73 $.67 $.40 $.38
Expenses .28 .29 .27 .26 .25 .16 .20
------ ------ ------ ------ ------ ------ ------
Net Investment Income .34 .43 .43 .47 .42 .24 .18
Net realized & Unrealized
gain (Loss) on investment 1.10 5.86 (2.53) 5.41 4.09 (3.21) 3.08
------ ------ ------ ------ ------ ------ ------
Total from Investment operation 1.44 6.29 (2.10) 5.88 4.51 (2.97) 3.26
Dividends from net
investment income (.34) (.43) (.43) (.47) (.42) (.24) (.18)
Distributions from net
realized gain (.34) (1.29) (.42) (.39) (.39) (.38) (.19)
------ ------ ------ ------ ------ ------ ------
Total Distributions (.68) (1.72) (.85) (.86) (.81) (.62) (.37)
Net change in net asset value .76 4.57 (2.95) 5.03 3.71 (3.59) 2.89
Net asset value as of end
of the period 29.95 29.19 24.62 27.57 22.55 18.85 15.39
------ ------ ------ ------ ------ ------ ------
Total return
(Sales load not reflected) 4.9% 25.6% (7.6)% 26.0% 23.9% (2.6)% 10.4%
Net assets, end of period $28,896 $23,931 $16,433 $11,893 $6,162 $4,133 $163
Ratio of operating expense
to net assets** 1.04% 1.18% 1.27% 1.25% 1.24% .80% 1.08%
Ratio of net investment income
to average net assets** 1.25% 1.74% 2.08% 2.20% 2.18% 1.23% 1.69%
Portfolio turnover 13.10% 21.50% 24.70% 14.60% 25.88% 8.57% 74.50%
Number of shares outstanding 945,006 776,974 646,664 419,212 264,414 212,704 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, 2000
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
COMMON STOCKS: 84.42%
---------------------
Shares Market Value
------ ------------
<S> <C> <C>
Alternate Energy: 43.74%
------------------------
Alternate Energy: 12.95%
------------------------
*Calpine 50000 $ 3,287,500.00
*Evercell 25000 343,750.00
Idacorp 60000 1,935,000.00
--------------
$ 5,566,250.00
Alternate Energy (Fuel Cell): 25.40%
------------------------------------
*Ballard Power Systems 22500 $ 2,020,781.25
First Albany 7875 165,375.00
*FuelCell Energy, Inc. 75000 5,179,687.50
*Mechanical Technology 90000 1,350,000.00
*Plug Power 25000 1,562,500.00
*Satcon Technology 25000 639,062.50
--------------
$ 10,917,406.25
Alternate Energy (Solar Cell): 5.39%
------------------------------------
*AstroPower 60000 $ 1,627,500.00
*Emcore Corporation 5000 600,000.00
*Real Goods Trading 1000 2,250.00
*Spire Corporation 15000 89,062.50
--------------
$ 2,318,812.50
Clean Water: 7.23%
------------------
American Water Works 70000 $ 1,750,000.00
Ameron Intl 25000 893,750.00
Pall Corp. 25000 462,500.00
--------------
$ 3,106,250.00
Conservation: 3.21%
-------------------
Minerals Technology 30000 $ 1,380,000.00
--------------
$ 1,380,000.00
Environmental (General): 1.26%
------------------------------
*Flow International 40000 $ 400,000.00
*Johnson Outdoors, Inc. 20000 141,250.00
--------------
$ 541,250.00
<PAGE>
June 30, 2000
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS (continued)
<CAPTION>
Shares Market Value
<S> <C> <C>
Natural Foods: 6.77%
--------------------
*Horizon Organic Holding Com 25000 $ 265,625.00
*United Natural Foods 47500 653,125.00
*Whole Foods Markets 30000 1,239,375.00
*Wild Oats Markets 60000 753,750.00
--------------
$ 2,911,875.00
Recycling: 7.39%
----------------
Caraustar Industries 60000 $ 907,500.00
Commercial Metals 45000 1,237,500.00
Imco Recycling 60000 326,250.00
Nucor Corp. 5000 165,937.50
Republic Group 60000 540,000.00
--------------
$ 3,177,187.50
Natural Gas
Transmission & Distribution: 12.57%
-----------------------------------
El Paso Energy Corp. 40000 $ 2,037,500.00
Keyspan Energy Corp. 65000 1,998,750.00
Kinder Morgan 20000 691,250.00
NUI Corp. 25000 675,000.00
--------------
$ 5,402,500.00
Other (Fuel Cell Components): 2.03%
-----------------------------------
Delphi 60000 $ 873,750.00
--------------
$ 873,750.00
Other (Superconductive Cable): 0.22%
------------------------------------
Intermagnetics General Corp. 5000 $ 94,687.50
--------------
$ 94,687.50
Total Common Stock (cost $ 25,657,621.96) $ 36,289,968.75
--------------
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
Chittenden Bank 100,000.00
U.S. Treasury Bills (cost $6,065,597.27) 6,081,980.89
--------------
$ 6,481,980.89
Total Common Stock (84.42%) $ 36,289,968.75
Bank money market and Treasury Bills(15.07%) 6,481,980.89
Cash and **Receivables, less liabilities (.51)% 217,801.70
--------------
NET ASSETS (100 %) $ 42,989,751.34
</TABLE>
*Securities for which no cash dividends were paid during the fiscal year.
<PAGE>
June 30, 2000
NEW ALTERNATIVES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
<TABLE>
<CAPTION>
<S> <C>
Investment Securities at market value
(Cost:$25,657,621.96) (Notes 2A and 5)..................... $ 36,289,968.75
Bank money market deposits ................................ 400,000.00
U.S.Treasury Bills at market .............................. 6,081,980.89
Cash ...................................................... 352,957.54
Receivables: Dividends ................................... 24,440.00
Interest .................................................. 1,240.39
Securities Sold ........................................... 0.00
Subscriptions receivable .................................. 74,111.60
Prepaid expense ........................................... 16,077.94
-------------
Total Assets .............................................. $ 43,240,777.11
LIABILITIES
Payables: Accrued Operating Expenses
Advisory fee .............................................. $ 24,724.11
Accounting................................................. 1,963.00
Custodian ................................................. 2,972.48
Directors Fees ............................................ 3,212.31
Regulatory fees ........................................... 5,408.29
Printing .................................................. 683.85
Bond and Insurance ........................................ 6,953.14
Transfer Agent-First Data Investor Services ............... 2,883.77
Fund Pricing-First Data Investor Services ................. 4,262.09
Other ..................................................... 525.59
-------------
$ 53,588.63
Securities Purchased ...................................... $ 233,562.50
Redemptions Payable ....................................... 0.00
Dividend distribution payable ............................. 3,874.64
-------------
Total Liabilities ......................................... 291,025.77
=============
$ 42,949,751.34
</TABLE>
Net Assets at market, applicable to 1,129,657.811 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, 2000
INVESTMENT INCOME AND EXPENSE
<TABLE>
<CAPTION>
<S> <C>
Income:
Dividends.........................................................$ 221,000.27
Interest ......................................................... 171,514.93
--------------
Total Income......................................................$ 392,514.93
Expenses:
Management Fee (note 4)...........................................$ 148,240.18
Custodian Fees
United Missouri Bank ............................................. 10,580.00
State Taxes ...................................................... 214.76
Accounting ....................................................... 2,366.00
Directors ........................................................ 1,332.24
Filing Fees ...................................................... 5,569.20
Postage and Printing ............................................. 7,280.00
Bond and Insurance ............................................... 3,219.58
Transfer Agent-PFPC .............................................. 21,840.00
Fund Pricing-PFPC ................................................ 16,267.50
Other ............................................................ 6,370.00
--------------
Total Expenses....................................................$ 223,279.46
Net Investment Income.............................................$ 169,235.47
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Realized gain on investments (note 2B & 5)
Proceeds from sales...............................................$11,818,047.07
Cost of Securities Sold .......................................... 9,519,280.40
--------------
Net Realized Gain ................................................$ 2,298,766.67
Unrealized appreciation (depreciation) of investments:
Beginning of period...............................................$ 2,757,452.85
End of period .................................................... 10,632,346.79
--------------
Total Unrealized appreciation (depreciation) for the period.......$ 7,874,893.94
Net Realized and Unrealized gain (loss) on investments............$10,173,660.61
--------------
Net Increase (decrease) in net assets resulting from operations...$10,342,896.08
--------------
</TABLE>
<PAGE>
June 30, 2000
NEW ALTERNATIVES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Month Ending Year End
6/30/00 12/31/99
---------------- --------------
<S> <C> <C>
From Investment Activities:
---------------------------
Net Investment Income $ 169,235.47 $ 292,440.39
Net Realized gain from security transactions 2,298,766.67 1,936,440.15
Unrealized appreciation (depreciation) of investments 7,874,893.94 402,437.36
--------------- --------------
Increase (decrease) in net assets derived from
investment activities $ 10,342,896.08 $ 2,631,319.90
--------------- --------------
Distributions to Shareholders:
------------------------------
From net Investment income dividends to shareholders $ 0.00 $ (292,386.17)
Distributions to shareholders $ (3,857.09) $(1,936,440.27)
From Capital Share Transactions:
--------------------------------
Net increase (decrease) from
Capital Transactions (note 3) $ 54,750.80 $ (868,251.00)
Increase (decrease) in Net Assets: $ 10,393,789.79 $ (465,757.54)
----------------------------------
Net Assets at:
--------------
Beginning of the Period $ 32,555,961.55 $33,021,719.09
End of the Period $ 42,949,751.34 $32,555,961.55
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENT FOR THE
PERIOD ENDING June 30, 2000
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, 2000 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,
2000 for federal tax purposes is $25,657,621.96.
3) CAPITAL STOCK - There are eight million shares of capital stock authorized.
On June 30, 2000, there were 1,129,657.811 shares outstanding. Aggregate paid in
capital including reinvestment of dividends was $29,798,614.52. Transactions in
capital stock were as follows:
<TABLE>
<CAPTION>
6 Months ending 6/30/00 Year End 12/31/99
------------------------------ -------------------------------
Shares Dollar Amount Shares Dollar Amount
<S> <C> <C> <C> <C>
Capital stock sold 54,741.638 $ 1,932,808.27 46,069.906 $ 1,374,751.12
Capital stock issued
reinvestment of dividends 0.000 $ 0.00 69,268.047 $ 1,998,381.51
Redemptions (53,440.680) $ (1,878,057.60) (143,934.592) $ (4,241,383.63)
----------- --------------- ------------ ---------------
Net Increase (Decrease) 1,300.958 $ 54,750.80 (28,596.639 $ (868,251.00)
</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 ending June 30, 2000 was
1.13%. 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 ending June 30,
2000 the aggregate cost of securities purchased totaled $12,129,511.46. Net
realized gains were computed on a first in, first out basis. The amount realized
on sales of securities for the Six Months ending June 30, 2000 was
$11,818,390.39.
