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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. 19th (X)
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 ( )
Post-Effective Amendment No.19th (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, Suite 306 Melville, New York 11747
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(Address of Principal Executive Offices) (Zip Code)
(631) 423-7373
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*(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, 2000 pursuant to paragraph (b)
________60 days after filing pursuant to paragraph (a)
________on April pursuant to paragraph (a) of rule (485)
(Check Appropriate Box)
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NEW ALTERNATIVES FUND, INC.
PROSPECTUS CROSS REFERENCE SHEET
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<CAPTION>
NUMBER FROM CAPTIONS IN PROSPECTUS Prospectus Page
FORM N-1A (Part "A")
(Part "A" Prospectus)
<S> <C> <C>
1.Front and Back Page Front 1
back 13
(Table of Contents) Table of Contents 2
2.Risk/Return Summary: Investments, Fund Investments, Goals, 3
Risks and Performance Policy and Strategy 3
Special Interest-Alternative Energy 3
Main Risks of Investing in The Fund 3
Is This Fund For You 4
Average Annual Returns 4
(Bar Chart and Tables) 4
3. Risk/Return
Summary Fees and Expenses 5
Maximum Sales Charge 5
Annual Fund Operating Expenses 5
Effect of Operating Expenses 5
4. Investment Objectives, Principal Investment Objectives 6
Investment Strategies, and Related and Strategy
Risks Investment Formula 6
Fund Definition of Alternative Energy 6
Alternative Energy: The Area of Special Interest 7
Related Products and Technologies in Which We Invest 7
Illustrations of Problems and Advantages in Area 7
of Investment
5. Management's Discussion of Fund N/A
Performance
6. Management, Organization The Investment Manager and Advisor 8
and Capital Structure and Portfolio Advisor
7. Shareholder Information Pricing of Fund Shares 9
Purchasing Shares 10
( under "How to Purchase Shares")
Minimum Investment, Minimum 9
General Restrictions 9
Subsequent Investment 9
Transfer of Shares 9
Redeeming Shares 9
Signature Requirements 9
8. Distribution Arrangements How to Purchase Shares 10
Price Table 10
Reduction of Charges 10
Sales Charge Exemptions 10
Transfer Agent Transfer Agent 11
9.Financial Information Financial Highlights 11
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Logo Here
PROSPECTUS
DATED APRIL 30TH, 2000
NEW ALTERNATIVES FUND, INC.
150 Broadhollow Road, Melville, N.Y., 11747
Telephone 1-800-423-8383 or 1-631-423-7373
New Alternatives Fund, Inc. is a mutual fund seeking growth investment
in various industries that are oriented to a clean environment
with a SPECIAL interest in Alternative Energy
As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved of this Fund's shares or determined whether this
prospectus is accurate or complete. Anyone who tells you otherwise is committing
a crime.
PRINTED ON RECYCLED PAPER
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TABLE OF CONTENTS
SUBJECT PAGE
Fund's Investment Objectives Strategies and goals 3
Special Interest - Alternative Energy 3
Main Risks of Investing the Fund 3
Is This Fund for you? 4
Average Annual Returns Bar Chart and Tables 4,5
Fees and Expenses of the Fund 5
Maximum Sales Charge 5
Annual Fund Operating Expenses 5
Effect of Operating Expenses 5
Investment Objectives and Strategy 6
Investment Formula 6
Fund Definition of Alternative Energy 6
Alternative Energy: The Area of Special Interest 7
Related Products and Technologies in Which We Invest 7
Illustrations of Problems and Advantages in Areas of Investment 7
The Investment Manager and Advisor, Portfolio Managers 8
Pricing Shares 9
Minimum Investment, Minimum Subsequent Investment 9
General Restrictions 9
Transfer of Shares 9
Redeeming Shares 9
Signature Requirements 9
Dividends and Distributions 9
Taxes 10
How to Purchase Shares 10
Sales Loads Break Points 10
Reduction or Modifications of Charges 10
Sales Charge Exemptions 10
Transfer Agent 11
Financial Highlights 11
Fund Application Form 12
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FUND'S INVESTMENT OBJECTIVES STRATEGIES AND GOALS
Similar to many funds, the Fund seeks long term capital gains by investing in
common stocks. Investments are in a wide range of industries and in companies of
all sizes.
New Alternatives Fund investment policies are materially different from other
funds.
A: Most of this Fund's investments will be in companies that provide a
contribution to a clean and sustainable environment.
B: There is a special interest in alternative energy. Alternative Energy means
production and conservation of energy by means which reduce pollution and harm
to the environment; particularly when compared to conventional coal, oil or
atomic energy. See page 6 for more information.
C: Companies with non-discriminatory practices at all levels of their work force
are sought.
SPECIAL INTEREST ----------------> ALTERNATIVE ENERGY
The Fund's goal is to invest 25% or more of assets in companies involved in
alternative energy. That percentage may not always be achieved. There are
presently a limited number of companies from which to choose.
MAIN RISKS OF INVESTING IN THE FUND
All mutual funds have a level of risk that comes from changes in the market and
changes in the economy. Fund shares will fluctuate in value. Losses are
possible.
New technologies may be feasible, but not cost effective. The Fund may not
choose among them wisely. Interest in achieving a clean environment may
diminish.
Investments in Alternative Energy and companies with environmental products are
subject to political priorities and changing government regulation.
Reduced prices for recycled products can result when there are less expensive
competing virgin materials available, causing companies collecting or using
recycled materials to have reduced income.
There are risks from a failure to enforce environmental law. For example, should
the government reduce environmental regulation or its enforcement, then
companies that produce products designed to provide a clean environment in which
we invest, are less likely to prosper. Potential advantages of alternative
energy may be slow in development and recognition.
See "Illustrations of Problems and Advantages in Different Areas of Investment,"
starting on page 6.
Part of the Fund portfolio may include small developing companies where risks
are normally higher.
The Fund may invest up to 15% of its assets in foreign companies whose
securities are regularly traded in the United States and which publish
information in English at levels
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comparable to US companies. Foreign investment has risks arising from currency
fluctuation, tax and political changes.
This disclosure of risks is not complete. There are risks which cannot yet be
envisioned.
IS THIS FUND FOR YOU?
This Fund's shares are not for investors seeking a high level of current income
or safety. Investing in this Fund is not a complete investment program.
This Fund may appeal to investors with an interest in alternative energy,
environmental improvement and social responsibility. Please understand that
social responsibility is a subjective concept that is interpreted by the
managers. No company in which we have previously invested, to our knowledge, has
tested its products on animals.
This policy reduces the number of companies from which choices can be made.
BAR CHART AND PERFORMANCE TABLE
The Bar chart and table shown below provide an indication of the risks of
investing in the New Alternatives Fund, Inc. by showing changes in the Fund's
performance from year to year over a 10-year period and by showing how the
Fund's average annual returns for one, five and ten years compare to those of a
broad-based securities market index. How the Fund has performed in the past is
not necessarily an indication of how the Fund will perform in the future.
The computations assume the reinvestment of all dividends and capital gain
distributions. The information provides some indication of the risks of
investing in the Fund. The bar chart does not reflect sales charges. If those
items were included, the returns would be less than those shown in the chart.
PERFORMANCE BAR CHART FOR NEW ALTERNATIVES FUND, INC.
Percent Change for Calendar Year (%)
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
- -7.6 25.6 4.9 2.9 -3.7 19.5 13.3 11.1 -10 8.5
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Year (*Fiscal Year ended on 4/30 until 1987)
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During the 10 year period shown in the bar chart the highest return for a
quarter was 15.57% (quarter ending June 30, 1999) and the lowest return for a
quarter was -17.81% (quarter ending September 30, 1998).
Average Annual 1999 Five Ten Life of the
Total Returns Years Years Years Fund (Started 9/82)
New Alternatives Fund 3.72% 6.81% 5.39% 9.58%
Russell 2000 Index* 21.26% 6.69% 13.40% 14.30%
*SEE NOTES
*NOTE 1: The Russell 2000 Index consists of the small US stocks It is a widely
recognized index.
*NOTE 2: There is no other fund, to the manager's knowledge, with a special
interest in alternative energy. This makes difficulty in finding an index that
is quite comparable.
*NOTE 3: Fund results were calculated according to a standard formula. The
formula requires that the maximum sales charge of 4.75% be deducted. Results
would be higher if they were calculated at net asset value. The indices
represent stocks. The indices are unmanaged and do not reflect sales charges,
commissions or expenses.
FEES AND EXPENSES OF THE FUND
THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND HOLD
SHARES OF THE FUND
SHAREHOLDERS FEES (fees paid directly from your investment)
Maximum Sales Charge as a percentage of the offering price .........4.75%
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets)
This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.
Management Fees ................................................... .78%
Distribution (12b-1) .............................................. None
*Other Expenses ................................................... .35%
----
Total Annual Operating Expense.................................... 1.13%
*Other Expenses include Fund operating expenses such as: custodian and transfer
agent expenses.
EXAMPLE
This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000.00 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes the
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maximum sales load and that your investment has a 5% return each year and the
Fund's operating expenses remain the same. Your costs might be higher or lower,
based on these assumptions your costs would be as indicated.
1 year 3 years 5 years 10 years
$584.70 $817.00 $1067.70 $1784.30
INVESTMENT OBJECTIVES AND STRATEGY
INVESTMENT FORMULA: There is no commitment to any formula in selecting
investments such as favoring growth or value or any technical system. The Fund's
Advisor selects securities for purchase or sale by subjectively balancing
factors including the investment's relationship to the areas of interest and
concentration. The Advisor assesses the perceived risk of the investment at a
particular price. Attention is given to the perceived prospects for the company
selected and its industry, with concern for economic, political, and social
conditions at the time. We consider expectations based on technology and skills
of management.
The managers subscribe to a host of related trade publications relating to the
Fund's area of interest, including "Photovoltaic Newsletter" and "Renewable
Energy World." The managers review annual reports (Form 10K) and quarterly
reports (Form 10Q) of companies as filed with the SEC. The managers review daily
news about every company in which the Fund invests and examine various analyst
reports and studies of sales and purchases of shares by company officers.
The managers examine financial reports and discuss questions with company
officers. We collect news from general and financial publications. We solicit
and use information and opinions of our shareholders, many of whom are
knowledgeable about the technologies in which we invest.
Money awaiting investment in stocks is generally kept in US Treasury Bills. The
Fund maintains modest amounts in socially concerned (federally insured) banks
that are committed to serving community needs.
FUND DEFINITION OF ALTERNATIVE ENERGY
Alternative energy and renewable energy are overlapping and related concepts.
Such energy saves natural resources. It is energy that is environmentally
superior to coal and oil.
The Fund does not include oil and coal resources within its definition of solar
and alternative energy. Alternative energy is cleaner. The Fund may invest in
such companies when they are actively developing or producing other products
related to the Fund's areas of interest. There may be future technologies for
the transformation of coal to a clean source of energy.
Wind, flowing water, energy conservation and geothermal heating are ancient but
now
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employ new advanced technology.
Electricity produced by solar cells and fuel cells are relatively new. All of
the technologies operate. The cost effectiveness of some of the newest
technologies varies.
Atomic energy is not included as an area for alternative energy investment.
There is a significant potential for accident, unresolved radioactive waste
disposal problems, excessive cost and frequent community opposition. There is
increasing distress with the cost of dismantling atomic energy facilities as
they mature or depreciate.
ALTERNATIVE ENERGY: THE AREA OF SPECIAL INTEREST
Alternative energy and related technology are illustrated below:
*a. solar cells produce electricity from sunlight,
*b. fuel cells produce electricity from hydrogen, which has been separated
from hydrocarbons.
*c. hydroelectric power is clean, but its availability is limited.
*d. geothermal energy is produced by heat produced from sources below the
earth's surface. Such energy is available in limited areas.
*e. conservation includes insulation, energy efficient electrical
equipment, and transportation such as electric vehicles, bicycles and
railroads.
*f. recycling is a form of energy and resource conservation.
*g. cogeneration uses a single fuel to produce simultaneously, general use
electricity and heat or cooling.
RELATED PRODUCTS AND TECHNOLOGIES IN WHICH WE INVEST
BATTERIES FOR SOLAR ENERGY Solar cells depend on daylight to produce energy.
Batteries are needed to store the energy. In some case's inverters are needed to
convert direct current to alternating current.
NATURAL GAS is the cleanest of hydrocarbon conventional fuels. It is also the
most promising current source of hydrogen for fuel cells.
RESOURCE CONSERVATION: Renewable biomass fuel saves resources. Lumber made from
laminating cheap or waste wood or fast-growing trees is stronger than regular
timber. It will help preserve hard wood forests. Paper made from fast-growing
plants saves forests.
ILLUSTRATION OF PROBLEMS AND ADVANTAGES IN DIFFERENT AREAS OF INVESTMENT
RECYCLING: When steel from the Far East pours into the U.S., the price of
recycled metals and the companies that collect and process metal falls. When raw
material price for plastic production becomes inexpensive, the demand for
recycled plastic declines. As a decline in resource availability becomes
visible, prices for the recycled plastic materials rise.
CONVENTIONAL ENERGY PRICES can fluctuate widely. Oil supplies are finite.
Alternative energy technologies are expected to advance when oil prices rise.
When there is an abundant and inexpensive supply of oil, investors may neglect
alternative energy.
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There are variable levels of public anxiety about national energy independence
and the desire for alternatives that foster energy independence. There are
polluting effects from oil and coal as currently used. All these considerations
impact the demand for alternative energy.
CLEAN AIR AND CLEAN WATER investments grow when there are water-based epidemics,
acid rain, polluted streams, reports of asthma and allergies. It falters when
federal, state and local commitment fades. There is a continuing contest between
opposition to government regulation and clean air and water.
SOLAR (PHOTOVOLTAIC) CELLS are presently used and attractive in remote areas
where there is no utility grid. The costs are getting lower and the cells more
powerful each year. They are not presently competitive with utility electric
production.
FUEL CELLS appear to be more efficient than conventional utility produced
electricity and cleaner. The main by-product is drinkable water. Commercial use
is barely beginning. They are not yet proved to be cost efficient. Choosing the
best cells and the companies that produce them may prove difficult.
ENVIRONMENTALLY GROWN AND PROCESSED FOODS are enjoying a period of growth.
Producers, distributors and retailers are prospering. Many of the products cost
more. The growth may not survive a poor economy.
MORE ALTERNATIVES: The list of energy alternatives and environmental solutions
cannot be exhaustive or the comments complete.
Technologies such as Ocean Thermal Energy Conversion (OTEC), which uses ocean
thermal variation or wave action from the ocean to produce electricity are under
development. There will be other new opportunities in new areas of alternative
energy and new environmental products and technologies. The Fund will include
them as they appear practical.
THE INVESTMENT MANAGER AND ADVISOR of the Fund is Accrued Equities, Inc. of 150
Broadhollow Rd. Melville, NY 11747. The company was founded in 1954 to advise
the personal investment clients of then practicing lawyer Maurice Schoenwald.
The officers of the advisor are Maurice and David Schoenwald (father and son),
who founded the Fund in 1982. The manager makes all investment decisions,
provides office space, staff, telephone, administrative services, secretarial
services, government regulatory compliance, information, preparation of
documents and like services.
The management fee is 1% of the first $10 million of assets; .75 of 1% for the
next $20 million; .50 of 1% for assets more than $30 million and .45 of 1% for
assets more than $100 million. This amounted to .78% of net assets in 1999.
PORTFOLIO MANAGERS: The managers are Maurice and David Schoenwald. They were
local, private practicing attorneys, personally interested in social and
environmental matters. They have managed the Fund since its inception.
David has been a journalist and an attorney with Law Services (a poverty law
agency).
Maurice has had experience teaching law, practicing commercial law, arranging
various investments and writing about investment. They are the only portfolio
managers of a current
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mutual fund with a special interest in alternative energy. They received
financial and consultive assistance in founding the Fund from friends and
neighbors. Since founding the Fund, they have sought and received advice from
shareholders. Such help and commentary are solicited during each quarter.
The portfolio managers are attentive to and influenced by shareholder
commentary.
PRICING SHARES: Shares are priced once at the end of each business day on which
the New York Stock Exchange is open for trading. That is usually at 4:00PM
Eastern time. Your order will be priced at the Fund value per share, called NAV,
when your order is accepted by the transfer agent.
MINIMUM INVESTMENT : The minimum Initial investment in the Fund is $2,500.00, or
$2,000.00 for retirement plans such as IRA's or similar plans.
MINIMUM SUBSEQUENT INVESTMENT: After the minimum initial investment you can add
as little as $50.00 at any time through an automatic investment arrangement with
your bank. If you do not use the automatic system, the minimum additional
investment is $250.00.
GENERAL RESTRICTIONS: If your account falls below $1,000.00 the Fund reserves
the right to return to you the current value of your account. The Fund will
usually request that you increase your balance before closing your account.
The Fund reserves the right to refuse certain requests to purchase.
TRANSFER OF SHARES: You may, without charge, transfer shares to, co-owners,
children, parents, siblings, spouse, family trusts, grandchildren, grandparents
and estates. Other transfers are not authorized. You can always redeem shares
(sell shares back to the Fund) for their then current value.
REDEEMING SHARES: You may redeem shares at any time. The pricing will be at the
next net asset value per share calculated after the transfer agent receives your
written request.
If the Fund has not collected payment for your purchase of the shares, they will
delay payment for your redemption until payment for the shares is collected.
Shares for which no payment is collected will be canceled without notice.
SIGNATURE REQUIREMENTS : The following helps protect the Fund and its
shareholders against fraud. Requests for redemption must be in writing signed by
the person or persons named in the account and addressed to New Alternatives
Fund, Inc. C/O PFPC Inc., 211 S. Gulph Road, King of Prussia, Pennsylvania,
19406.
Signature guarantees are required. They can be provided by any of the following:
a bank, registered stock broker on the New York Stock Exchange or savings and
loan association.
If the amount redeemed is less than $2,500.00, the need for a guarantee may be
waived if the proceeds go to the Fund owners at their last filed address.
DIVIDENDS AND DISTRIBUTIONS: Once a year the Fund pays its shareholders
dividends from net investment income received and distributes any net capital
gains that it has realized. Your
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distributions will be reinvested in the Fund unless you instruct otherwise.
TAXES: The Fund expects to make distributions that will be taxed as ordinary
income or capital gains. Fund dividends and distributions are taxable to most
investors unless your investment is in an IRA or other tax-advantaged account.
The dividends and distributions are taxed whether paid or re-invested. IRA
accounts and like account holders pay taxes when you receive benefits. The tax
status of your dividends and gains distributions will be detailed in your annual
tax statement from the Fund.
HOW TO PURCHASE SHARES: On the last page, before the cover, is an order form.
Should you wish to open an IRA account or some other special account, please
call the Fund and you will receive the forms. The order should be sent to our
transfer agent addressed to New Alternatives Fund, Inc. c/o PFPC Inc., 211 S.
Gulph Road, King of Prussia, Pennsylvania 19406.
MORE INFORMATION: You can reach the Fund by phone at 1-800-423-8383. We can
supply general information, detail about Fund policy, annual reports, statements
of additional information and prospectuses.
The transfer agent can tell the shareholders about the status of their accounts
and provide specialized forms for IRA's and transfers from brokers or other
funds. The transfer agent can be reached at 610-239-4600
SALES LOADS BREAK POINTS (SALES LOADS)
Purchase Sales Commission as a Sales Commission as a
Amount percentage of offering price percentage of Net Asset Value
$2,500 to $25,000 4.75% 4.987%
$25,001 to $100,000 3.85% 4%
$100,001 or more 2.91% 3%
REDUCTIONS OR MODIFICATIONS IN CHARGES ARE AVAILABLE
1.SUBSEQUENT ADDITIONAL PURCHASES: If you add to your holdings and pass the
threshold into larger category, the sales charge for the additional purchases
will be at the reduced rate of the newly obtained category.
2.PURCHASES MADE BY FAMILIES: Investors may combine family purchases into a
single transaction to qualify for a reduced sales charge. This includes
purchases by spouses, children, parents, siblings, grandparents and family
trusts.
It is each investor's responsibility to notify the transfer agent at the time of
purchase of eligibility for such reduced sales charge. Attach a note to your
order or call before making the order to assure your reduced arrangement
SALES CHARGE EXEMPTIONS: People or institutions who may invest in the Fund
without paying sales charges are:
A. Non Profit or Charitable Organizations (as defined in Section 501 (c) (3) of
the Internal Revenue Code) investing $25,000 or more.
B. Clients of an Investment Advisor in the U.S. while the client is charged
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an ongoing fee by the investment advisor for advisory services
C. Brokers who are purchasing for their own account who will not transfer their
shares.
D. Officers and employees of the Fund and manager and their families. Persons
using the above privileges are obliged to note the facts on their order form.
Calling the Fund office in advance can help prevent errors.
TRANSFER AGENT: All Fund books and records are maintained by PFPC Inc., our
transfer agent. They serve many mutual funds including large funds.
FINANCIAL HIGHLIGHTS: This table describes the Fund's performance for the
periods indicated."Total Return" shows how much your investment in the fund
would have increased or (decreased) during each period. It assumes you
reinvested all dividends and distributions. These figures have been
independently audited by Kenneth Katz, CPA whose report along with the Fund's
financial statement is included in the annual report.
PER SHARE DATA
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING*
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<CAPTION>
YEAR YEAR YEAR
END END END YEAR END
12/31 12/31 12/31 12/31
1999 1998 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD 28.54 $ 32.07 $ 30.87 $ 30.51
----- ---------- ---------- ----------
Investment Income $ .66 $ .52 $ .64 $ .73
Net Investment Income .28 .15 .26 .34
Net realized & Unrealized
gain (Loss) on investment 2.14 (3.22) 3.16 3.72
---------- ---------- ---------- ----------
Total from Investment
operations 2.42 (3.07) 3.42 4.06
Dividends from net
investment income (.28) (.15) (.26) (.34)
Distributions from net
realized gain (1.83) (.16) (1.96) (3.36)
---------- ---------- ---------- ----------
Total Distributions (2.11) (.31) (2.22) (3.70)
Net asset value as of end of
the period 28.85 $ 28.54 32.07 30.87
---------- ---------- ---------- ----------
Total return
(Sales load not reflected) 8.5% (10%) 11.1% 13.3%
Net assets, end of period $ 32,555 $ 33,021 $ 37,941 $ 35,549
Ratio of operating expense to
net assets** 1.13% 1.18% 1.15% 1.21%
Ratio of net investment
income to average net
assets** .89% .49% .79% 1.04%
Portfolio turnover 87.3% 32.4% 53.9% 51.2%
Number of shares outstanding
at end of period*** 1,058,230 1,156,952 1,111,377 1,038,561
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
END END END END END END END
12/31 12/31 12/31 12/31 12/31 12/31 12/31
1995 1994 1993 1992 1991 1990 1989
----------- ------------- -------------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD $ 28.14 $ 30.00 $ 29.95 $ 29.19 $ 24.62 $ 27.57 $ 22.55
------- -------- ---------- ------- ------- -------- -------
Investment Income $ .75 $ .72 $ .62 $ .62 $ .72 $ .70 $ .73
Net Investment Income .35 .32 .29 .34 .43 .43 .47
Net realized & Unrealized
gain (Loss) on investment 5.14 (1.43) .58 1.10 5.86 (2.53) 5.41
------- --------- ---------- ------- ------- --------- -------
Total from Investment
operations 5.49 (1.11) .87 .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 asset value as of end of
the period 30.51 28.14 30.00 29.95 29.19 24.62 27.57
------- --------- ----------- ------- ------- --------- -------
Total return
(Sales load not reflected) 19.5% (3.7)% 2.9% 4.9% 25.6% (7.6)% 26.0%
Net assets, end of period $32,236 $ 28,368 $ 31,567 $28,896 $23,931 $ 16,433 $11,893
Ratio of operating expense to
net assets** 1.28% 1.30% 1.11% 1.04% 1.18% 1.27% 1.25%
Ratio of net investment
income to average net
assets** 1.12% 1.04% .96% 1.25% 1.74% 2.08% 2.20%
Portfolio turnover 48.72% 33.00% 18.36% 13.10% 21.50% 24.70% 14.60%
Number of shares outstanding
at end of period*** 965,769 984,847 1,026,460 945,006 776,974 646,664 419,212
<CAPTION>
YEAR YEAR FIRST SEVEN
END END MONTHS
12/31 12/31 4/30/83
1988 1987 ****
----------- ------------- ------------
<S> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD $ 18.85 $ 22.43 $ 12.50
-------- -------- --------
Investment Income $ .67 $ .40 $ .38
Net Investment Income .42 .24 .18
Net realized & Unrealized
gain (Loss) on investment 4.09 (3.21) 3.08
-------- --------- --------
Total from Investment
operations 4.51 (2.97) 3.26
Dividends from net
investment income (.42) (.24) (.18)
Distributions from net
realized gain (.39) (.38) (.19)
-------- --------- --------
Total Distributions (.81) (.62) (.37)
Net asset value as of end of
the period 22.55 18.85 15.39
-------- --------- --------
Total return
(Sales load not reflected) 23.9% (2.6)% 10.4%
Net assets, end of period $ 6,162 $ 4,133 $ 163
Ratio of operating expense to
net assets** 1.24% .80% 1.08%
Ratio of net investment
income to average net
assets** 2.18% 1.23% 1.69%
Portfolio turnover 25.88% 8.57% 74.50%
Number of shares outstanding
at end of period*** 264,414 212,704 10,592
</TABLE>
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* 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.
11
<PAGE>
APPLICATION FOR PURCHASE OF SHARES
New Alternatives Fund, Inc. Phone (800) 423-8383 for General Inquiries
c/o PFPC, Inc. Phone (610) 239-4600 for Account Status
P.O. Box 61503
211 S. Gulph Road
King of Prussia, PA 19406
I hereby remit $_______________________ ($2,500.00 minimum or $2,000 for an
"IRA"( or equivalent) to be applied toward the purchase of shares and fractions
thereof of New Alternatives Fund, Inc. Please register the shares as follows:
(PLEASE PRINT OR TYPE CLEARLY)
Your Phone #_______________________Alternative Phone#_________________________
area code telephone area code telephone
1. ACCOUNT REGISTRATION (CHECK ONE)
{ } Individual_________________________________________________________________
first name middle initial last name
{ } Joint Tenant_______________________________________________________________
first name middle initial last name
{ } Gifts to Minors -----------------under the----- Uniform Gifts to Minors Act
Name of custodian Name of State
as custodian for________________________________________________________________
{ } 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, 2000. 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 __________________________________________ X ________________________________
Signature of Applicant Signature of Joint Owner / Date
To Be Completed By Broker - If Any
Mail this form, when completed, to New Alternatives Fund, Inc., c/o PFPC Inc.,
P.O. Box 61053, King of Prussia, PA 19406, together with a check payable to the
order of New Alternatives Fund, Inc., drawn in US currency on a bank in the
United States.
12
<PAGE>
BACK PAGE
____________
More Information is available:
A. There is a Statement of Additional Information, referred to as SAI. This
provides details of Fund organization, rules, officers, history, limitations on
types of investment, policies, government. The SAI is considered part of the
prospectus.
B. Annual and Semi-Annual Reports to Shareholders contain a discussion of the
market conditions and strategy that significantly affected the Fund's
performance during its last fiscal year. It also lists portfolio holdings at the
end of the year.
To obtain all or any of this information or other information about the Fund
without charge contact:
By telephone: Call 1-800-423-8383
By mail: New Alternatives Fund, Inc. 150 Broadhollow Road Suite 306, Melville,
NY, 11747
On the Internet: Text-only versions of Fund documents can be viewed online or
downloaded from: SEC -- http://www.sec.gov
At the SEC You can also obtain copies by visiting the SEC's Public Reference
Room in Washington, DC. (Phone 1-800-SEC-0330) or by sending your request and a
duplicating fee to the SEC's Public Reference Section, Washington, DC
20549-6009.
The Fund SEC file number is : 811 - 3278
PRINTED ON RECYCLED PAPER
13
<PAGE>
Item 10
File 811 3287
Part B
New Alternatives Fund, Inc.
Statement of Additional Information
April 30, 2000
New Alternatives Fund, Inc. File 2 74436
150 Broadhollow Road, Suite 306 2 74436
Melville, NY 11747 2 74436
(631) 423-7373 2 74436
(800) 423-8383 2 74436
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 2000. The Fund's most recent Annual and Semi-Annual Financial Reports are
separate documents and are incorporated by reference to this statement of
Additional Information. Requests for copies of the prospectus and Financial
reports should be made by either calling the above listed number, or by writing
to the Fund.
TABLE OF CONTENTS
Statement of Additional Information
Page Cross
Reference to
prospectus
History of the Fund B-2
Description of the Fund and its Investments and Risks B-2
Management of the Fund B-4
Control Persons and Principal Holders of Securities B-6
Investment Advisor and Other Services B-7
Brokerage, Allocation and Other Practices B-9
Description of Shares B-9
Purchase, Redemption and Pricing of Shares B-11
Taxation of the Fund B-12
Underwriters B-13
Investment Results and Related Statistics B-13
Financial Statement B-14
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<PAGE>
Item 11
History of the Fund
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 its 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.
Item 12
Description of the Fund and its Investments and risks
Classification
a) New Alternatives Fund, Inc. is an open-end management investment
company known as a mutual fund. The Fund is diversified, which means
that, with respect to 75% of its total assets, the Fund will not invest
more than 5% of its assets in the securities of any single issuer.
b) The Fund seeks long-term growth by investing in common stocks, and has
a particular interest in stocks of companies in various industries
oriented to a clean energy and the environment.
The Fund will invest in equity securities. Equity securities represent
an ownership position in a company. The prices of equity securities
fluctuate based on changes in the financial condition of their issuers
and on market and economic conditions.
The Fund may invest in stocks of smaller companies. Investing in
smaller capitalization stocks can involve greater risk than is
customarily associated with investing in stocks of larger, more
established companies. Securities of smaller companies may be thinly
traded (and therefore have to be sold at a discount from current prices
or sold in small lots over an extended period of time), may be followed
by fewer investment research analysts, and may be subject to wider
price swings thus creating a greater chance of loss than securities or
larger capitalization companies.
Foreign Securities: The Fund may invest up to 15% of its assets in
foreign securities. Investments in foreign securities may present risks
not typically involved in domestic investments. The Fund may purchase
foreign securities directly, on foreign markets, or those represented
by American Depositary Receipts ("ADRs"). ADRs are US dollar
denominated and traded in the US on exchanges or over the counter. By
investing in ADRs rather than directly in foreign issuers' stock, the
Fund may possibly avoid some currency and some liquidity risks. The
information available for ADRs is subject to the more uniform and more
exacting accounting, auditing and financial reporting standards of the
domestic market or exchange on which they are traded.
-2-
<PAGE>
Fund Policies and Restrictions
c) Concentration: The Fund has a special interest in Alternate Energy. The
Fund concentrates at least twenty-five percent (25%), except during
defensive periods, of its investments in common shares of companies,
which have an interest in alternate energy.
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). 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
seek to borrow at all.
2- Purchase on margin or sell short or write or purchase put call 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 seek 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 (including its predecessors or
controlling persons) that has not been in business for 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 US Government, its agencies or
instrumentality.
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, except as part of
a merger, consolidation or other recognition.
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 contract.
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 seek to invest in any restricted
securities or securities for which there are not readily available
market quotations.
-3-
<PAGE>
15- Will not engage in arbitrage or trade for the control or management of
another company.
16- Invest more than fifteen percent (15%) of its assets in securities of
companies outside the United States.
17- Invest more than twenty-five percent (25%) of the Fund's assets in any
single industry; excluding the solar and alternative energy industries
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 percent (25%) of its assets
excepting during defensive periods.
17a (Texas) Invest in warrants, which valued at the lower of cost or
market, may not exceed five percent (5%) of the value of the Fund's
assets. Included within that amount, but not to exceed two percent (2%)
of the value of the Fund's net assets, may be warrants which are not
listed. 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.
d- Temporary Defensive Position
For temporary defensive purposes - which may include a lack of adequate purchase
candidates or an unfavorable market environment - the Fund may invest in cash or
cash equivalents. Cash equivalents include instruments such as US Government and
agency obligations, certificates of deposit and time deposits.
Item 13
Management of the Fund
a- Board of Directors
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.
b- Directors And Officers
Name, Address & Age Position with Fund
*Maurice L. Schoenwald Director, Chairman Member of New York
Age 80 Vice President (1947) & Florida (1978) Bar;
Longboat Key, FL Fund Chairman & Founder;
Bayshore, NY author of articles on legal and
investment questions; former
faculty, Hofstra University.
Chairman of Accrued Equities.
*David J. Schoenwald Director, President Member of New York Bar
Age 50 Secretary, Treasurer (1979); Fund founder. Formerly
Huntington Bay, NY reporting staff of Newark Star
Ledger; Now member, Schoenwald
-4-
<PAGE>
& Schoenwald P.C., Attorneys;
Son of Maurice L. Schoenwald. President of
Accrued Equities.
Arthur G. Kaplan Director Admitted to practice law,
Age 77, Retired New York (1951), Oregon (1956)
Lake Oswego, OR District of Columbia (1959);
Formerly Assistant Attorney General
State of Oregon; Assistant Counsel,
two U.S. Senate Subcommittees;
Special Counsel, Curtis Publishing
Co.; retired as Director of
enforcement, Office of Anti-boycott
Compliance, U.S. Department of
Commerce.
Sharon Reier Director Financial Journalist
Age 52 contributing to Business Week &
Coconut Creek, FL International Herald Tribune.
Former Regional
Editor Financial
World Magazine;
Former Editor With
Board Room; Former
contributing
editor;
Institutional
Investor; Formerly
staff of Forbes &
American Bankers.
Dorothy Wayner Director President Dwayner/
Age 62 Communications/Advertising and
New York Publishing, NY. MBA-New York
University: member and former
officer board director of Advertising
Women of New York, a private
Organization; President Kaleidoscope Kids,
Inc. a non-profit organization promoting
creativity in middle school kids.
Lee Clayton Director R.N., MS; First Fund Investor. Member
Age 73, Retired Sierra Club & New York Nature Conservancy.
New York
Dudley Clayton Director Graduate Education in Horticulture.
Age 77 Retired Present director and retired superintendent
New York of Pinelawn memorial Park. Outdoors man
and environmentalist.
Daniel Wolfson Director Former Resource manager, Farm & Wilderness
Age 40 Foundation Plymouth, VT. Developed forest
Woodstock, Vermont 7 Wildlife habitat for conservation areas.
B.S. Environmental studies, Hampshire
College; MS Resource Management, Antioch
University. Medical student at University of
Vermont.
-5-
<PAGE>
c) (1) *Interested person, as defined in the Investment Company Act of 1940.
Maurice L. Schoenwald is Secretary and minority shareholder of Accrued Equities
Inc., the Advisor. David Schoenwald is majority shareholder and president of
Accrued Equities, Inc. David Schoenwald is Maurice's Son. Accrued Equities Inc.,
is the Fund's investment advisor and principal underwriter.
d- Compensation Table for Fund Directors and Fund Paid Staff
Fund Staff Earning More Than $60,000 from Fund: None
Annual Total Compensation of Each Director: $400.00
Income of Directors from other mutual funds: None
Compensation From Fund of Directors part of manager: None
Retirement Benefits from Fund for Staff or Director: None
Compensation of Directors and Officers. A three hundred dollar fee was paid to
each "uninterested" director by the Fund for the preceding year. No compensation
was paid to each "interested" Directors and Officers. No other compensation is
or was paid. Interested officers and directors are paid by the manager. Coach
travel expense to s director meeting which exceed 500 miles will be paid to the
extent that the expense is incurred.
e- Sales Load
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 $25,000 or more and
clients of investments 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. (See Prospectus).
Item 14
Control Persons and Principal Holders of Securities
The following persons own of record, or beneficiary five percent (5%) or more of
the Fund's shares:
Name Ownership #Shares % Of Total on
12/31/99
None
As of December 31, 1999 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 13,176.632 and 1.167 % of the outstanding shares of the
Fund.
-6-
<PAGE>
Item 15
Investment Advisor and Other Services
a- Investment Manager
The Investment Advisor/Manager is Accrued Equities, Inc. of 150 Broadhollow
Road, Suite 306, Melville NY 11747. The telephone number is (631) 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 Schoenwald. Since 1966 the company has offered investments to
the public.
The controlling stockholder and 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 Vice 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:
Annual Rate Assets
1% First $10 million
.75% Amounts over $10 million
.50% Amounts over $30 million
.45% Amounts over $100 million
For the year ended December 31, 1999 the Manager /Advisor received $262,917 for
its advisory fee. For the year ended December 31, 1998 the Manager/Advisor
received $281,189 for its advisory fee. For the year ended December 31, 1997 the
Manager/Advisor received $282,694.68 for its advisory fee.
In addition to the management fee, the Fund pays other expenses incurred in its
operation including, among others, taxes, brokerage commission, fees of
directors who are not affiliated with the manager, securities registration fees,
charges of custodians, shareholders 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
shareowner, costs of shareowner's reports, and 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 states 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.
-7-
<PAGE>
The Manager will, as required, lease at the expense of the Fund office space.
Other Fund expenses include the cost of telephone equipment and usage, 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) on September 30, 1999.
The Management/Advisory Agreement must be approved each year by (a) a vote of
the Board of Directors of the Fund, or (b) a vote of the share owners, 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 share owners. The
Management Agreement automatically terminates upon its assignment. In addition,
the Management Agreement is terminable at any time without penalty by 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 (60) days notice to the Fund.
Personal Investment Policy. The Fund and Accrued Equities, Inc. have adopted a
personal investing policy consistent with Investment Company Institute
guidelines.
b- Principal Underwriter
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. David and Maurice Schoenwald are Officers of Accrued
Equities, Inc. and New Alternatives Fund, Inc.
c) Services Provided by Investment Adviser & Fund Expenses Paid by Third Parties
As described in the prospectus, Accrued Equities, Inc. is manager and investment
advisor providing services under the Advisory Agreement. Accrued Equities, Inc.
manages the Fund's assets.
d-Service Agreements
Custodian: The Custodian of the Fund is United Missouri bank, 928 Grand Avenue,
Kansas City, M.O. 64141. The Fund's cash 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.
Transfer Agent and Dividend Paying: PFPC Inc., 211 South Gulph Road, PO Box
61503, King of Prussia PA 19406-9993 serves as the Transfer Agent and Dividend
Paying Agent for the Fund, pursuant to an agreement effective October 1, 1993.
Telephone: (610) 239- 4600.
-8-
<PAGE>
Payments to PFPC and its predecessors over the past three years were as follows:
Custodian Transfer Agent Pricing
1999 $20,075 $43,800 $31,481
1998 $20,075 $43,800 $30,726
1997 $20,075 $41,561 $29,371
Independent Auditor: Kenneth Katz, CPA of 64 North Park Avenue in Rockville
Centre, NY 11570. The independent accountant provides audit services, review of
tax returns, preparation and review of certain documents to be filed with the
Securities and Exchange Commission. He has serviced the Fund since its
inception.
e- Dealer Re-allowance
Purchase Amount Sales Commission Dealer Re-allowance Sales Commission
As a Percentage of as a Percentage of as a Percentage of
Offering Price Offering Price Net Asset Value
$2,500 to $25,000 4.75% 4% 4.987%
$25,001 to $100,000 3.85% 3% 4%
$100,001 or more 2.91% 2% 3%
Item 16
Brokerage, Allocation and Other Practices
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 if the manager deems such allocation of brokerage to be
fair and reasonable to the shareholders.
Item 17
Description of Shares
The Fund's authorized capital is eight million (8,000,000) common shares of one
dollar par value. There is only one class of shares.
-9-
<PAGE>
Each share entitles the holder to one vote. Fractional shares have no rights.
Share owners may vote for the election of Directors and all other appropriate
and customary matters and participate proportionately in dividends 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
such transactions; and (2) redemptions and transfers may be transacted without
the issuance of certificates.
Shares certificates are issued only upon the specific request of the shareowner
made in writing. No charge is made for the issuance of shares 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 or less may be redeemed by the company after 10 days notice by
mail to the shareholder at the last address, which the shareholder provided to
the Fund.
The common shares have non-cumulative 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 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
distribution, such income or distribution payments, if any, will be paid in cash
at least annually.
-10-
<PAGE>
Item 18
Purchase, Redemption and Pricing of Shares
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 PFPC Inc.,
211 South Gulph Road, PO BOX 61503, King Of Prussia PA 19406. 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.
The Fund and Accrued Equities Inc., the Fund's Principal Underwriter reserve the
right to reject any purchase order for any reason.
Retirement Plans and IRA Accounts and all related forms of Accounts: Shares of
the Fund may be purchased directly by existing retirement plans, which allow
such investments.
In addition, qualified individuals may establish (with any provider of such
accounts) an Individual Retirement Account ("IRA") or Roth 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 sales charge
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 schedule debit date.
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 signed or 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 $2,500 or less may be waived, if approved by the Fund). Tender
shall be made at the office of the Transfer Agent PFPC, Inc., 211 South Gulph
Road, PO BOX 61503, King Of Prussia, PA 19406-9993.
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 (7) days
after receipt of the written request and certificates as described above, or if
payment for the purchase of the shares to
-11-
<PAGE>
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.
For further information, an interested person should call the Fund at (631)
423-7373 or (800) 423-8383.
Offering Price
SALES CHARGE: The sales charge you pay when purchasing shares are set forth
below.
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.
Shares are purchased at the offering price next determined after the purchase
order is received by the Fund. The price you pay for shares, the offering price,
is based on the net asset value per share plus a sales load which is calculated
once daily at the close of regular trading (currently 4:00 p.m., Eastern Time)
each day the New York Stock Exchange is open
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
or the persons to whom the task is delegated 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 PFPC, Inc., which also
serves as transfer agent.
Item 19
Taxation of the Fund
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
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.
-12-
<PAGE>
For Federal income tax purposes distributions paid from the Fund's net
investment income and 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,
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. Should related tax
law be amended, this provision shall be amended or deemed amended to be
consistent with such modified law.
Item 20
Underwriters
The aggregate commission retained by the Principal Underwriter on sales of Fund
shares during the fiscal year ended December 31, 1999 was $47,268 and the amount
retained by Accrued Equities was $38,726. Commission retained by the Principal
Underwriter on sales of fund shares during the fiscal ended December 31, 1998
were $90,357 and the amount retained by Accrued Equities was $57,173. The
aggregate commission retained by the Principal Underwriter for the year ended
December 31, 1997 was $92,234 and the amount retained by Accrued Equities was
$51,403.
PERIOD ENDING 12/31/99 COMPENSATION OF ACCRUED EQUITIES INC.
NAME OF UNDERWRITING COMPENSATION OTHER
PRINCIPAL DISCOUNTS & ON REDEMPTION BROKERAGE COMPEN-
UNDER- COMMISSIONS & REPURCHASE COMMISSION SATION
WRITER
Accrued
Equities, Inc. $38,726.00 -0- -0- $262,917
Item 21
Investment Results And Related Statistics
The total return after deducting maximum possible one time (4.75) sales charge
for the one year period ending December 31, 1999 was 3.72%. The average annual
total returns for the five and ten year periods ended on December 31, 1999 were
6.81% and 5.39% respectively, and 9.58% since inception of the Fund.
These fund results were calculated according to a standard formula, which
requires that the Fund reduce its performance by the maximum sales charge of
4.75%. Results of the Fund would be higher if they were calculated at net asset
value.
-13-
<PAGE>
The Russell 2000 Index represents a stock index. This index is not managed and
does not reflect sales charges, commissions or expenses.
The managers believe and assert that because of the focus of the Fund on
alternative energy, the environment and socially responsible concerns, there is
presently no comparable fund and no properly applicable stock index.
The average annual total return (T) is computed using the value at the end of
the period (ERV) of a hypothetical initial investment of $1,000 (P) over a
period of years (n) according to the following formula as required by the
Securities and Exchange Commission:
P(1+T)/n/+ERV
The following assumptions will be reflected in computations made in accordance
with formula stated above: (1) deduction of the maximum sales load of 4.75% from
the $1,000 initial investment; (2) reinvestment of dividends and distributions
at net asset value on the reinvestment date determined by the Board; and (3) a
complete redemption at the end of any period illustrated.
To calculate total return, an initial investment is dividend by the offering
price (which includes the sales charge) as of the first day of the period in
order to determine the initial number of shares purchased. Subsequent dividends
and capital gain distributions are then reinvested at net asset value on the
reinvestment date determined by the Board of Directors. The sum of the initial
shares purchased and shares acquired through reinvestment is multiplied by the
ending value. The difference between the ending value and the initial investment
divided by the initial investment converted to a percentage equals total return.
The resulting percentage indicates the positive or negative investment results
that an investor would have experienced from reinvested period. Total return may
be calculated for one year, five years, ten years and for other periods of
years. The average annual total return over periods greater than one year may
also be computed utilizing ending values as determined above.
Item 22
Financial Statement
-14-
<PAGE>
ANNUAL FINANCIAL REPORT
DECEMBER 31, 1999
<PAGE>
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING*
<TABLE>
<CAPTION>
YEAR YEAR YEAR
END END END YEAR END
12/31 12/31 12/31 12/31
1999 1998 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD 28.54 $ 32.07 $ 30.87 $ 30.51
----- ---------- ---------- ----------
Investment Income $ .66 $ .52 $ .64 $ .73
Expenses .38 .37 .38 .39
----- ---------- ---------- ----------
Net Investment Income .28 .15 .26 .34
Net realized & Unrealized
gain (Loss) on investment 2.14 (3.22) 3.16 3.72
---------- ---------- ---------- ----------
Total from Investment
operations 2.42 (3.07) 3.42 4.06
Dividends from net
investment income (.28) (.15) (.26) (.34)
Distributions from net
realized gain (1.83) (.16) (1.96) (3.36)
---------- ---------- ---------- ----------
Total Distributions (2.11) (.31) (2.22) (3.70)
Net change in net asset value .31 (3.53) 1.20 .36
Net asset value as of end of
the period 28.85 $ 28.54 32.07 30.87
---------- ---------- ---------- ----------
Total return
(Sales load not reflected) 8.5% (10%) 11.1% 13.3%
Net assets, end of period $ 32,555 $ 33,021 $ 37,941 $ 35,549
Ratio of operating expense to
net assets** 1.13% 1.18% 1.15% 1.21%
Ratio of net investment
income to average net
assets** .89% .49% .79% 1.04%
Portfolio turnover 87.3% 32.4% 53.9% 51.2%
Number of shares outstanding
at end of period*** 1,058,230 1,156,952 1,111,377 1,038,561
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
END END END END END END END
12/31 12/31 12/31 12/31 12/31 12/31 12/31
1995 1994 1993 1992 1991 1990 1989
----------- ------------- -------------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD $ 28.14 $ 30.00 $ 29.95 $ 29.19 $ 24.62 $ 27.57 $ 22.55
------- -------- ---------- ------- ------- -------- -------
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 & Unrealized
gain (Loss) on investment 5.14 (1.43) .58 1.10 5.86 (2.53) 5.41
------- --------- ---------- ------- ------- --------- -------
Total from Investment
operations 5.49 (1.11) .87 .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
Sales load not reflected) 19.5% (3.7)% 2.9 % 4.9 % 25.6 % (7.6)% 26.0%
Net assets, end of period $32,236 $28,368 $ 31,567 $28,896 $23,931 $ 16,433 $11,893
Ratio of operating expense to
net assets** 1.28% 1.30% 1.11% 1.04% 1.18% 1.27% 1.25%
Ratio of net investment
income to average net
assets** 1.12% 1.04% .96% 1.25% 1.74% 2.08% 2.20%
Portfolio turnover 48.72% 33.00% 18.36% 13.10% 21.50% 24.70% 14.60%
Number of shares outstanding
at end of period*** 965,769 984,847 1,026,460 945,006 776,974 646,664 419,212
<CAPTION>
YEAR
YEAR YEAR END FIRST SEVEN
END END 4/30 MONTHS
12/31 12/31 1987 4/30/83
1988 1987 **** ****
----------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD $ 18.85 $ 22.43 $ 19.68 $ 12.50
-------- -------- -------- --------
Investment Income $ .67 $ .40 $ .38 $ .38
Expenses .25 .16 .16 .20
-------- -------- -------- --------
Net Investment Income .42 .24 .22 .18
Net realized & Unrealized
gain (Loss) on investment 4.09 (3.21) 3.45 3.08
-------- --------- -------- --------
Total from Investment
operations 4.51 (2.97) 3.67 3.26
Dividends from net
investment income (.42) (.24) (.22) (.18)
Distributions from net
realized gain (.39) (.38) (.70) (.19)
-------- --------- -------- --------
Total Distributions (.81) ( .62) (.92) (.37)
Net change in net asset value 3.71 (3.59) 2.75 2.89
Net asset value as of end of
the period 22.55 18.85 22.43 15.39
-------- --------- -------- --------
Total return
(Sales load not reflected) 23.9% (2.6)% 22.2% 10.4%
Net assets, end of period $ 6,162 $ 4,133 $ 3,404 $ 163
Ratio of operating expense to
net assets** 1.24% .80% 1.17% 1.08%
Ratio of net investment
income to average net
assets** 2.18% 1.23% 1.68% 1.69%
Portfolio turnover 25.88% 8.57% 8.79% 74.50%
Number of shares outstanding
at end of period*** 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>
DECEMBER 31, 1999
NEW ALTERNATIVES FUND, INC.
STATEMENT OF INVESTMENTS
COMMON STOCKS: 79.29%
SHARES MARKET VALUE
ALTERNATE ENERGY: 26.04%
ALTERNATE ENERGY: 12.85%
*Calpine 25000 $ 1,600,000.00
*Evercell 10000 257,500.00
Idacorp 35000 938,437.50
Trigen 80000 1,390,000.00
------------
$ 4,185,937.50
ALTERNATE ENERGY (FUEL CELL): 9.89%
*Ballard Power Systems 15000 $ 422,812.50
*FuelCell Energy, Inc. 50000 1,253,125.00
*Mechanical Technology 30000 697,500.00
*Plug Power 30000 847,500.00
------------
$ 3,220,937.50
ALTERNATE ENERGY (SOLAR CELL): 3.29%
*AstroPower 60000 $ 840,000.00
*Emcore Corporation 5000 170,000.00
*Real Goods Trading 1000 3,937.50
*Spire Corporation 10000 57,500.00
-------------
$ 1,071,437.50
CLEAN AIR: 2.05%
*Thermo Instruments 60000 $ 667,500.00
------------
$ 667,500.00
CLEAN WATER: 5.69%
American Water Works 30000 $ 637,500.00
Ameron Intl. 20000 791,250.00
Ionics 15000 421,875.00
-------------
$ 1,850,625.00
CONSERVATION: 3.08%
Minerals Technology 25000 $ 1,001,562.50
------------
$ 1,001,562.50
ENVIRONMENTAL (GENERAL): 2.11%
*Flow International 50000 $ 568,750.00
Johnson Worldwide Assoc. Inc. 15000 106,406.25
*Kafus Environmental 1000 8,937.50
------------
$ 684,093.75
EFFICIENT ELECTRIC DEVICES: 5.45%
Baldor Electric 30000 $ 543,750.00
*SLI Inc. 40000 542,500.00
York International 25000 685,937.50
-------------
$ 1,772,187.50
<PAGE>
DECEMBER 31, 1999
NEW ALTERNATIVES FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED)
SHARES MARKET VALUE
NATURAL FOODS: 11.64%
*Hain Food Group, Inc. 25000 $ 559,375.00
*Horizon Organic 25000 187,500.00
*United Natural Foods 45000 540,000.00
*Whole Foods Markets 30000 1,391,250.00
*Wild Oats Markets 50000 1,109,375.00
------------
$ 3,787,500.00
RECYCLING: 10.54%
Caraustar Industries 50000 $ 1,200,000.00
Commercial Metals 40000 1,357,500.00
Imco Recycling 45000 568,125.00
Republic Group 20000 302,500.00
------------
$ 3,428,125.00
NATURAL GAS
TRANSMISSION & DISTRIBUTION: 8.62%
Burlington Resources 20000 $ 661,250.00
El Paso Energy Corp. 15000 582,187.50
Keyspan Energy Corp. 50000 1,159,375.00
Kinder Morgan 20000 403,750.00
------------
$ 2,806,562.50
RAILROADS: 2.39%
CSX Corp 15000 $ 470,625.00
Norfolk Southern 15000 307,500.00
------------
$ 778,125.00
OTHER (FUEL CELL COMPONENTS): 1.69%
Delphi 35000 $ 551,250.00
----------
$ 551,250.00
Total Common Stock (cost $ 23,048,390.90) $ 25,805,843.75
-------------
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
Vermont National Bank 100,000.00
U.S. Treasury Bills (cost $6,262,772.45) 6,285,577.01
--------------
$ 6,685,577.01
Total Common Stock (79.29%) $ 25,805,843.75
Bank money market and Treasury Bills(20.54%) 6,685,577.01
Cash and **Receivables, less liabilities (.17)% 64,540.79
--------------
NET ASSETS (100 %) $ 32,555,961.55
*Securities for which no cash dividends were paid during the fiscal year.
<PAGE>
DECEMBER 31, 1999
NEW ALTERNATIVES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
Investment Securities at market value
(Cost:$23,048,390.90) (Notes 2A and 5) ..................... $ 25,805,843.75
Bank money market deposits ................................. 400,000.00
U.S.Treasury Bills at market ............................... 6,285,577.01
Cash ....................................................... 538,610.37
Receivables: Dividends .................................... 17,462.50
Interest ................................................... 1,362.68
Securities Sold ............................................ 130,020.65
Subscriptions receivable ................................... 39,843.09
-----------------
Total Assets ............................................... $ 33,218,720.05
LIABILITIES
Payables: Accrued Operating Expenses
Advisory fee ............................................... $ 25,609.00
Accountin .................................................. 403.00
Custodian .................................................. 3,759.30
Directors Fees ............................................. 1,880.07
State Taxes ................................................ 310.83
Regulatory fees ............................................ 2,902.03
Printing ................................................... 6,616.66
Bond and Insurance ......................................... 3,733.56
Transfer Agent-First Data Investor Services ................ 6,638.89
Fund Pricing-First Data Investor Services .................. 2,242.73
Other ...................................................... 0.00
-----------------
$ 54,096.07
Securities Purchased ....................................... $ 378,217.50
Redemptions Payable ........................................ 0.00
Dividend distribution payable .............................. 230,444.93
-----------------
Total Liabilities .......................................... $ 662,758.50
=================
$ 32,555,961.55
Net Assets at market, applicable to 1,128,356.848 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 December 31, 1999
INVESTMENT INCOME AND EXPENSE
<TABLE>
<CAPTION>
INCOME:
<S> <C>
Dividends ...................................................... $ 305,954.27
Interest ....................................................... 395,249.93
-----------------
Total Income ................................................... $ 701,204.20
EXPENSES:
Management Fee (note 4) ........................................ $ 262,917.22
Custodian Fees
United Missouri Bank ........................................... 20,075.00
State Taxes .................................................... 430.70
Accounting ..................................................... 4,745.00
Directors ...................................................... 2,671.80
Filing Fees .................................................... 11,169.00
Postage and Printing ........................................... 12,240.00
Bond and Insurance ............................................. 6,456.84
Transfer Agent-PFPC ............................................ 43,800.00
Fund Pricing-PFPC .............................................. 31,481.25
Other .......................................................... 12,831.22
-----------------
Total Expenses ................................................. $ 408,818.03
NET INVESTMENT INCOME .......................................... $ 292,386.17
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN ON INVESTMENTS (NOTE 2B & 5)
Proceeds from sales ............................................ $ 22,120,011.87
Cost of Securities Sold ........................................ 20,183,571.72
-----------------
Net Realized Gain .............................................. $ 1,936,440.15
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS:
Beginning of period ............................................ $ 2,355,015.49
End of period .................................................. 2,757,452.85
-----------------
Total Unrealized appreciation (depreciation) for the period .... $ 402,437.36
Net Realized and Unrealized gain (loss) on investments ......... $ 2,338,877.51
-----------------
Net Increase (decrease) in net assets resulting from operations $ 2,631,263.68
-----------------
</TABLE>
<PAGE>
DECEMBER 31, 1999
NEW ALTERNATIVES FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year End Year End
12/31/99 12/31/98
FROM INVESTMENT ACTIVITIES:
<S> <C> <C>
Net Investment Income ............................... $ 292,440.39 $ 176,427.34
Net Realized gain from security transactions ........ 1,936,440.15 188,003.97
Unrealized appreciation (depreciation) of investments 402,437.36 (4,217,251.59)
--------------- ---------------
Increase (decrease) in net assets derived from
investment activities ............................... $ 2,631,319.90 $ (3,852,820.28)
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net Investment income dividends to shareholders $ (292,386.17) $ (176,501.42)
Distributions to shareholders ....................... $ (1,936,440.27) $ (188,130.28)
FROM CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) from
Capital Transactions (note 3) ....................... $ (868,251.00) $ (702,052.38)
INCREASE (DECREASE) IN NET ASSETS: .................. $ (465,757.54) $ (4,919,504.36)
NET ASSETS AT:
Beginning of the Period ............................. $ 33,021,719.09 $ 37,941,223.50
End of the Period ................................... $ 32,555,961.55 $ 33,021,719.09
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENT FOR THE
PERIOD ENDING DECEMBER 31, 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 December 31, 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 December
31, 1999 for federal tax purposes is $23,048,390.90.
3) CAPITAL STOCK - There are eight million shares of capital stock authorized.
On December 31, 1999 there were 1,058,356.848 shares outstanding before the
dividend and 1,128,356.848 shares outstanding after the dividend. Aggregate paid
in capital including reinvestment of dividends was $29,798,614.52. Transactions
in capital stock were as follows:
<TABLE>
<CAPTION>
Year End 12/31/99 Year End 12/31/98
----------------- -----------------
Shares Dollar Amount Shares Dollar Amount
<S> <C> <C> <C> <C>
Capital stock sold 46,069.906 $ 1,374,751.12 78,407.173 $ 2,481,638.78
Capital stock issued
reinvestment of dividends 69,268.047 $ 1,998,381.51 11,477.383 $ 327,935.59
Redemptions (143,934.592) $ (4,241,383.63) (115,835.579) $(3,511,626.75)
------------ --------------- ------------ --------------
Net Increase (Decrease) (28,596.639) $ (868,251.00) (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 December 31, 1999
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 Year ended December 31,1999
the aggregate cost of securities purchased totaled $20,805,501.75. 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, 1999 was $22,120,011.87.
<PAGE>
Fund S&P 500 Russell 2000
01/01/90 $10,000.00 $10,000.00 $10,000.00
1990 $8,797.00 $9,692.70 $7,854.55
1991 $11,045.50 $12,587.70 $11,285.13
1992 $11,589.30 $13,496.90 $13,131.13
1993 $11,923.90 $14,805.10 $15,381.74
1994 $11,481.00 $15,040.60 $14,874.93
1995 $13,719.10 $20,436.90 $18,945.40
1996 $15,545.70 $24,999.70 $22,053.42
1997 $17,267.90 $33,190.90 $26,909.86
1998 $15,535.90 $42,505.60 $26,293.68
1999 $16,905.50 $51,277.60 $31,826.67
VALUE OF $10,000 INVESTMENT OVER PAST 10 YEARS
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
Past Performance is not Predictive of Future Performance.
Average Annual Return (after deducting maximum sales charge):
One Year 3.72%; Five Years 6.81%; Ten Years 5.39%.
Thousands
60
50
40
30
20
10
0
01/01/1990 1991 1993 1995 1997 1996
1990 1992 1994 1996 1998
Fund
S&P 500
Russell 2000
<PAGE>
Part C: Other Information
File 2 74436
File 811 3287
New Alternatives Fund, Inc.
Item 23
Financial Statements and Exhibits
a-(1) Charter is now in effect. Exhibit #1 (previously filed through Edgar
system. See Post-Effective Amendment No. 16 filed April 1997).
b-(2) By-Laws, Exhibit #2 (previously filed through Edgar system. See
Post-Effective Amendment No. 16 filed April 1997).
c-(3) Voting trust. Not applicable.
d-(5) Copy of Investment Management Agreement. Exhibit #4 (previously filed
through Edgar system. See Post-Effective Amendment No.16 filed April
1997).
e-(6) Copy of Underwriting Agreement. Exhibit #5 (previously filed with
Amendment(s) through Edgar system. See Post-Effective Amendment No. 16
filed April 1997).
f-(7) Profit Sharing and related plans. None.
g-(8) Copy of Custodian Agreement - (previously filed-United Missouri Bank).
h-(9) Copies of Materials Agreement - (previously filed herein for through
Edgar. See Post-Effective Amendment No. 17 filed March 1998). The
agreements below have been assigned by First Data Investor Services
Group, Inc. to PFPC, Inc. A. Transfer Agent: First Data Investor
Services Group, Inc. B. Accounting Services: First Data Investor
Services Group, Inc. C. Custody Administration: First Data Investor
Services Group, Inc.
i-(10) Opinion of Counsel. Exhibit #6 (filed with 24F-2 statement).
j-(11) Other Opinions and Consents. Consent of Independent Auditor filed
herewith.
k-(12) Financial Statements part 17. (Included in Prospectus).
l-(13) Copies of agreements in connection with original capital. Exhibit #9
(previously filed).
m-(14) Copies of 12b-1 plan. None.
n-(15) Financial Data Schedule. None.
o-(16) Rule 18f-3 plan. None.
<PAGE>
Item 24
Persons Controlled by or Under Common Control with the Fund.
This section is not applicable, excepting that David J. Schoenwald is the
controlling (58.5 %) stockholder of Accrued Equities, Inc.. Maurice L.
Schoenwald is a minority (41.5%) stockholder of Accrued Equities, Inc. Maurice
L. Schoenwald is Vice President and Chairman of the Board of Directors of the
Fund and owns 5516.63 shares or .489% of the Fund of record and beneficially.
David J. Schoenwald, President of the Fund and the son of Maurice L. Schoenwald
owns 3644.494 shares or .323% of the Fund.
New Alternatives Fund, Inc (the Fund) and Accrued Equities, Inc. (the
Manager/Advisor and Principal Underwriter) are New York Corporations.
There is only one class of securities, common stock, at one dollar par value.
There were 2321 holders of record of such shares on December 31, 1999.
Item 25
Indemnification
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, 1999 customary Directors and Officers Insurance was renewed with
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 Insured 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 30, 1999.
There are now 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.
Item 26
Business and other Connections of the investment
Advisor.
David J. Schoenwald is President of Accrued Equities, Inc. and an attorney
licensed in the state of new York. The business address of Accrued Equities,
Inc. and David J. Schoenwald is 150 Broadhollow Road, Suite 306, Melville, NY
11747. Maurice L. Schoenwald, is Secretary of Accrued Equities, Inc. and an
attorney in private practice. Accrued Equities, Inc. has managed in the past
real property, loans, mortgages and has been a broker-dealer in investment
contracts and a broker of investment contracts for receiverships initiated by
the Securities and Exchange Commission. The business address of Maurice L.
Schoenwald is 5270 Gulf Of Mexico Drive, Unit 503, Longboat Key, FL 34228.
<PAGE>
Item 27
Principal Underwriters
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 majority shareholder of the underwriter is David J. Schoenwald of
150 Broadhollow Road, Suite 306, Melville, NY 11747. He is also the President of
the Fund. The Vice President and minority shareholder of the underwriter is
Maurice L. Schoenwald of 5270 Gulf Of Mexico Drive Unit 503 Longboat Key, FL
34228. He is Secretary of the Fund and Chairman of the Board of Directors of the
Fund. 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 and administrative services, to act as investment
manager and to develop and control relationships with broker/dealer when and if
they arise.
The Fund will pay 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 to Accrued Equities,
Inc.
There are no fees, commissions earnings past or future not fully described in
the Prospectus.
Item 28
Location of Accounts and Records
All books and records required will be in the care of David J. Schoenwald,
President of the Fund, or Maurice Schoenwald, Secretary of the Fund at 150
Broadhollow Road, Suite 306 Melville, NY 11747, except those within possession
of the Custodian and Transfer Agent described in the Prospectus.
Certain accounting records are maintained at the offices of PFPC, Inc. (formerly
First Data Investor Services Group, Inc.). Records concerning shareholders'
accounts are maintained by the Fund's Transfer Agent, PFPC, Inc. 211 South Gulph
Road, PO BOX 61503, King of Prussia, PA 19406. Records covering portfolio
transactions are maintained by the Fund's Custodian, United Missouri Bank, 928
Grand Avenue, Kansas City, MO 64141, First Data Investor Services Group, Inc.
and by the Fund.
Item 29
Management Services
There is no management service contract excepting those services described in
the Prospectus and Statement of Additional Information.
Item 30
Undertakings
As reflected in the Prospectus, the Fund undertakes to provide each person to
whom a prospectus is delivered with a copy of the Fund's latest annual report to
shareholders, upon request and without charge.
<PAGE>
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Act of l940, the Registrant has caused this post-effective amendment to the
Registration Statement to be signed on its behalf by the undersigned, hereunto
duly authorized in the Village of Melville, of the State of New York, on the 30
day of March 2000.
NEW ALTERNATIVES FUND, INC.
BY: /S/
David J Schoenwald
Pursuant to the requirements of the Securities Act of l933 and the Investment
Act of l940, 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 3/30/00 David J Schoenwald
David J Schoenwald
/S/__________________ Vice President, 3/30/00 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.
SIGNATURES TITLE DATE
---------- ----- ----
/S/ President and 3/30/00
- --------------------------------- -------
David J. Schoenwald Director
/S/ Vice President, Secretary, 3/30/00
- --------------------------------- -------
Maurice L. Schoenwald Treasurer and
Director
*/S/ Director 3/30/00
- -------------------------------- -------
Arthur Kaplan
*/S/ Director 3/30/00
- -------------------------------- -------
Sharon Reier
*/S/ Director 3/30/00
- -------------------------------- -------
Dorothy Wayner
*/S/ Director 3/30/00
- -------------------------------- -------
Dudley Clayton
*/S/ Director 3/30/00
- -------------------------------- -------
Lena Clayton
*/S/ Director 3/30/00
- -------------------------------- -------
Daniel Wolfson
* By Maurice L. Schoenwald as Attorney in Fact.
<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-lA) of New Alternatives
Fund, Inc., I hereby consent to the use of my report dated February 8, 2000 for
the period ending December 31, 1999 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
February 8, 2000
