August 24, 1994
DREYFUS NEW LEADERS FUND, INC.
Supplement to Prospectus dated April 15, 1994
The following anticipated changes have occurred:
I. CONSUMMATION OF THE MERGER
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
On this date, the previously announced merger between The Dreyfus
Corporation ("Dreyfus") and a subsidiary of Mellon Bank Corporation ("Mellon")
was completed, and as a result, Dreyfus now is a wholly-owned subsidiary of
Mellon Bank, N.A. instead of a publicly-owned corporation.
Mellon is a publicly owned multibank holding company incorporated under
Pennsylvania law in 1971 and registered under the Federal Bank Holding Company
Act of 1956, as amended. Mellon provides a comprehensive range of financial
products and services in domestic and selected international markets. Mellon
is among the twenty-five largest bank holding companies in the United States
based on total assets. Mellon's principal wholly-owned subsidiaries are
Mellon Bank, N.A., Mellon Bank (DE) National Association, Mellon Bank (MD),
The Boston Company, Inc., AFCO Credit Corporation and a number of companies
known as Mellon Financial Services Corporations. Through its subsidiaries,
Mellon managed more than $130 billion in assets as of July 31, 1994, including
approximately $6 billion in mutual fund assets. As of June 30, 1994, various
subsidiaries of Mellon provided non-investment services, such as custodial or
administration services, for approximately $747 billion in assets, including
approximately $97 billion in mutual fund assets.
II. NEW DISTRIBUTOR
The following information supersedes and replaces any contrary
information contained in the Fund's Prospectus and specifically in the section
entitled "How to Buy Fund Shares."
The Fund's distributor is Premier Mutual Fund Services, Inc. (the
"Distributor"), located at One Exchange Place, Boston, Massachusetts 02109.
The Distributor is a wholly-owned subsidiary of Institutional Administration
Services, Inc., a provider of mutual fund administration services, the parent
company of which is Boston Institutional Group, Inc.
Accordingly, references in the Prospectus to Dreyfus Service Corporation
as the Fund's distributor should be substituted with Premier Mutual Fund
Services, Inc.
III. NEW RULE 12b-1 PLAN ARRANGEMENTS IMPLEMENTED
The following information supersedes and replaces the information in the
first and fourth paragraphs contained in the section in the Fund's Prospectus
entitled "Service Plan."
Under the Service Plan, adopted pursuant to Rule 12b-1 under the
Investment Company Act of 1940, the Fund (a) reimburses the Distributor for
payments to certain Service Agents for distributing the Fund's shares and
servicing shareholder accounts ("Servicing") and (b) pays The Dreyfus
Corporation, Dreyfus Service Corporation and any affiliate of either of them
(collectively, "Dreyfus") for advertising and marketing relating to the Fund
and for Servicing, at an aggregate annual rate of .25 of 1% of the
value of the Fund's average daily net assets. Each of the Distributor and
Dreyfus may pay one or more Service Agents a fee in respect of the Fund's
shares owned by shareholders with whom the Service Agent has a Servicing
relationship or for whom the Service Agent is the dealer or holder of record.
Each of the Distributor and Dreyfus determine the amounts, if any, to be paid
to Service Agents under the Service Plan and the basis on which such payments
are made. The fees payable under the Service Plan are payable without regard
to actual expenses incurred.
IV. RESULTS OF FUND SHAREHOLDER VOTE
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
On August 4, 1994, the Fund's shareholders voted to (a) approve (i) a new
investment advisory agreement with Dreyfus and (ii) a new Service Plan, each
of which became effective upon consummation of the merger between Dreyfus and
a subsidiary of Mellon and (b) change certain of the Fund's fundamental
policies and investment restrictions to permit the Fund to (i) borrow money to
the extent permitted under the Investment Company Act of 1940, as amended,
(ii) pledge its assets to the extent necessary to secure permitted borrowings
and make such policy non-fundamental, and (iii) invest up to 15% of the value
of its net assets in illiquid securities and make such policy non-fundamental.
V. REVISED MANAGEMENT POLICIES
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
Borrowing Money -- As a fundamental policy, the Fund is permitted to
borrow to the extent permitted under the Investment Company Act of 1940.
However, the Fund currently intends to borrow money only for temporary or
emergency (not leveraging) purposes, in an amount up to 15% of the value
of the Fund's total assets (including the amount borrowed) valued at the
lesser of cost or market, less liabilities (not including the amount borrowed)
at the time the borrowing is made. While borrowings exceed 5% of the Fund's
total assets, the Fund will not make any additional investments.
Illiquid Securities -- The Fund may invest up to 15% of the value of its
net assets in securities as to which a liquid trading market does not exist,
provided such investments are consistent with the Fund's investment objective.
Such securities may include securities that are not readily marketable, such
as certain securities that are subject to legal or contractual restrictions on
resale, repurchase agreements providing for settlement in more than seven days
after notice, and certain options traded in the over-the-counter market and
securities used to cover such options. As to these securities, the Fund is
subject to a risk that should the Fund desire to sell them when a ready buyer
is not available at a price the Fund deems representative of their value, the
value of the Fund's net assets could be adversely affected.
