DREYFUS NEW LEADERS FUND, INC.
LETTER TO SHAREHOLDERS
Dear Fellow Shareholder:
We would like to report the performance results for the Dreyfus New
Leaders Fund for the six-month period ended June 30, 1995 and for the period
from the Fund's inception to June 30, 1995.
<TABLE>
<CAPTION>
DREYFUS
NEW RUSSELL S&P
LEADERS* 2000* 500*
------------- ------------- -------------
<S> <C> <C> <C>
Year-To-Date
----------------------
12/31/94-6/30/95.......................................... + 14.14% + 14.42% + 20.19%
Inception-To-Date
----------------------
1/31/85-6/30/95........................................... +331.95% +201.17% +326.67%
</TABLE>
Sources: Lipper Analytical Services, Inc.; and The Russell Company. The Russell
2000 Index and The Standard & Poor's 500 Composite Stock Price Index (the "S&P
500 Index") are widely accepted unmanaged indices of various aspects of stock
market performance.
These figures are from 1/31/85 since Lipper Analytical Services'
calculations are based on net asset values as of month's end. The actual
inception date of Dreyfus New Leaders Fund is 1/29/85.
The Fund's average annual total returns were 18.05%, 12.73%, and 14.56%
for the one-year, five-year, and ten-year periods ended June 30, 1995.** We
are grateful that this record continued to be awarded Morningstar's Four Star
Overall Rating. The Four Star Overall Rating reflects the Fund's risk-
adjusted performance history among 1,234 equity funds as of June 30, 1995.***
Effective June 23, 1995, the Fund terminated its .25% Rule 12b-1 Service
Plan and adopted a .25% non-Rule 12b-1 Shareholder Services Plan (the
"Plan"). The Plan provides that the Fund pay Premier Mutual Fund Services,
Inc. (the "Distributor") for servicing shareholder accounts and the
Distributor pay certain service agents for servicing.
During the six-month period ended June 30, 1995, the small company
universe represented by the Russell 2000 Index broadly underperformed the
large company gains of the S&P 500 Index. As we had reported to you in the
Annual Report, this trend actually began in early 1994, and appears related
to the strength of economies on a global basis in 1994, primarily benefiting
the large U.S.-based multinationals whose exports were especially enhanced by
the weakened dollar.
The business of smaller companies has been generally perceived as
domestic and, therefore, relatively less attractive in such an environment.
We have purposefully taken and held positions of smaller companies in capital
goods, technology, and specialty materials where foreign sales have been
strong and, in a number of cases, where U.S. products actually dominate
global markets. Examples include Bush Boake Allen, in specialized flavors and
fragrances; Albany International Cl.A in paper machinery clothing; OM Group,
in cobalt refining and metallurgy; Roper Industries, in process controls; and
both Rohr Industries and Precision Castparts, as suppliers to Boeing. These
may be familiar holdings, as they represent a core theme represented in New
Leaders for a number of years.
A second important investment theme relates to the dramatic shift away
from consumer stocks. Quietly burdened by the weak local currency, spent out
during the 1980s, and demographically older and more prone to save, the
American consumer has become a tough customer. Conversely, after years of
industrial restructuring, and benefited by the local currency, the capital
goods and technology sectors have been invigorated by a strong export market
combined with American corporate demand for
productivity. Coming after twelve years of consumer stocks' relative
strength, the shift toward producer stocks appears to be in the early stages.
This has been led by the large company performance of such companies as Intel
and Microsoft which now dominate the NASDAQ Composite Index.
In recent months, small company technology stocks have joined the bull
market with vigor, in many cases with speculative fervor not seen since the
late 1960s. Our largest positions as of June 30, 1995 included Integrated
Silicon Solution, Auspex Systems and Glenayre Technologies -- all of which
have moved from relative obscurity into important global product offerings.
Although we have strong positive feelings about each company's management and
corporate prospects, the stocks of these and other technology firms have
already reached price targets we set for 1996, or beyond. For this reason,
you may find our technology sector weighting reduced for a while and our
primary efforts aimed at increasing consumer holdings because, while they
remain out of favor, we believe valuation levels are compelling.
We again thank you for your interest and loyalty.
Sincerely,
(Thomas A. Frank signature logo)
Thomas A. Frank
Portfolio Manager
August 21, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**Past performance is no guarantee of future results. Share price and
investment return fluctuate so that a shareholder may receive more or less
than original cost upon redemption. There is a 1% redemption fee on Fund
shares redeemed or exchanged within the first six months of issuance. In the
pursuit of greater rewards, investing in small capitalization companies
involves increased risk. Portfolio composition is subject to change at any
time. More complete information, including charges and expenses, is contained
in the Fund's Prospectus. Please read it carefully.
*** Source: Morningstar, Inc., June 30, 1995. Morningstar proprietary
ratings reflect historical risk-adjusted performance and are subject to
change every month. Funds with at least three years of performance history
are assigned ratings from one star (lowest) to five stars (highest).
Morningstar ratings are calculated from the Fund's three-, five-, and
ten-year average annual returns (as applicable) with appropriate fee
adjustment and a risk factor that reflects fund performance relative to
three-month Treasury bill monthly returns. Dreyfus New Leaders Fund earned 4
stars for the ten-, five-, and three-year periods ended June 30, 1995 out of
459, 906, and 1,234 equity funds, respectively. 10% of funds in an investment
category receive 5 stars; 22.5% receive 4 stars.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT IN
SURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
THE NET ASSET VALUE OF FUNDS OF THIS TYPE WILL FLUCTUATE FROM TIME TO
TIME.
<TABLE>
<CAPTION>
DREYFUS NEW LEADERS FUND, INC.
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS-93.9% SHARES VALUE
-------------- -------------
<S> <C> <C>
CONSUMER-12.2% Au Bon Pain, Cl. A.....................(a) 75,000 $ 909,375
Boise Cascade Office Products............. 190,000 4,227,500
Bush Boake Allen.......................(a) 225,000 6,834,375
Canandaigua Wine, Cl. A................(a) 125,000 5,593,750
Eskimo Pie.............................(b) 185,000 3,052,500
Goldwyn (Samuel).......................(a) 125,000 890,625
Hammons (John Q.) Hotels, Cl. A........... 180,000 2,520,000
Individual Investor Group..........(a,b,d) 307,692 1,278,845
Meredith.................................. 156,000 3,958,500
Norton McNaughton......................(a) 225,000 3,487,500
Savoy Pictures Entertainment...........(a) 150,000 1,368,750
Sola International........................ 150,000 3,731,250
Sports Authority.......................... 225,000 4,584,375
Station Casinos........................(a) 222,000 3,829,500
Talbots................................... 110,000 4,372,500
Thermotrex.............................(a) 170,000 5,822,500
Williams-Sonoma........................(a) 150,000 3,300,000
--------------
59,761,845
--------------
ENERGY-8.8% Cairn Energy USA.......................(a) 392,000 4,312,000
Coda Energy............................(a) 650,000 4,468,750
Dreco Energy Services, Cl. A.........(a,b) 375,000 5,437,500
Dual Drilling..........................(a) 300,000 2,962,500
Foreland...............................(a) 450,000 928,125
Global Industries......................(a) 170,000 3,782,500
Helmerich & Payne......................... 125,000 3,687,500
ICO....................................(a) 106,700 613,525
International Colin Energy.............(a) 500,000 2,625,000
NGC....................................... 375,000 3,937,500
Parker & Parsley Petroleum................ 175,000 3,434,375
Pogo Producing............................ 220,000 5,032,500
Unit...................................(a) 602,500 2,184,062
--------------
43,405,837
--------------
FINANCIAL SERVICES-20.8% ACE....................................... 200,000 5,800,000
Baldwin & Lyons, Cl. B (non voting)....... 215,000 3,332,500
Chittenden................................ 237,500 5,165,625
City National............................. 240,000 2,730,000
Colonial BancGroup, Cl. A................. 100,000 2,750,000
Commerce Group............................ 250,000 4,468,750
Crescent Real Estate Equities............. 125,000 3,984,375
Dime Bancorp...........................(a) 475,000 4,750,000
Executive Risk............................ 230,000 4,370,000
FirstFed Michigan......................... 150,000 4,200,000
Frontier Insurance Group.................. 175,000 4,703,125
Glendale Federal Bank FSB..............(a) 150,000 1,875,000
Greenpoint Financial...................... 225,000 5,315,625
Guaranty National......................... 135,000 2,497,500
Hibernia, Cl. A........................... 450,000 3,993,750
Midland Financial Group................... 150,000 2,775,000
DREYFUS NEW LEADERS FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
FINANCIAL SERVICES (CONTINUED) National Re............................... 170,000 $ 5,695,000
Presidential Life......................... 500,000 4,125,000
Reliance Group Holdings................... 700,000 4,550,000
Sizeler Property Investors................ 220,000 2,090,000
Standard Federal Bancorporation........... 150,000 5,043,750
Synovus Financial......................... 166,500 3,787,875
Trenwick Group............................ 75,000 3,187,500
USLife.................................... 125,000 5,031,250
Western National.......................... 500,000 6,187,500
--------------
102,409,125
--------------
HEALTH CARE-6.5% AmeriSource Health, Cl. A................. 125,000 2,851,563
Apogee.................................(a) 85,000 1,593,750
Circon.................................(a) 100,000 1,950,000
CorVel.................................(a) 170,000 3,655,000
HBO & Co.................................. 33,500 1,825,750
MediSense..............................(a) 175,000 3,390,625
Mentor................................. 10,000 278,750
Scherer (R.P.).........................(a) 135,000 5,703,750
Sofamor/Danek Group....................(a) 112,500 2,545,313
Sterile Concepts Holdings................. 270,000 3,341,250
Universal Health Services, Cl. B.......(a) 170,000 4,930,000
--------------
32,065,751
--------------
MATERIALS &
PROCESSING-12.8% ADCO Technologies......................(b) 150,000 1,125,000
Albermarle................................ 200,000 3,125,000
CBI Industries............................ 225,000 5,653,125
Cleveland-Cliffs.......................... 70,000 2,695,000
Crompton & Knowles........................ 105,000 1,483,125
Ferro..................................... 225,000 5,962,500
Hardinge.................................. 135,000 2,581,875
IMCO Recycling............................ 157,500 2,953,125
Jacobs Engineering Group...............(a) 175,000 3,850,000
Lilly Industries, Cl. A................... 160,000 1,880,000
Longview Fibre............................ 225,000 3,825,000
Minerals Technologies..................... 190,000 6,840,000
Mosinee Paper............................. 150,000 3,225,000
OM Group.................................. 150,000 4,275,000
Schulman (A.)............................. 175,000 5,031,250
USA Waste Services.....................(a) 300,000 4,650,000
Uniroyal Chemical......................... 325,000 3,696,875
--------------
62,851,875
--------------
PRODUCER DURABLES-12.8% Albany International, Cl. A............... 225,000 5,371,875
Applied Power, Cl. A...................... 150,000 4,331,250
BW/IP..................................... 205,000 3,792,500
Greenfield Industries..................... 70,000 2,030,000
IRO AB.................................(c) 250,000 2,544,704
DREYFUS NEW LEADERS FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
PRODUCER DURABLES (CONTINUED) Littelfuse.............................(a) 42,500 $ 1,330,781
Manitowoc................................. 150,000 4,331,250
Maverick Tube..........................(a) 175,000 1,334,375
Nordson................................... 21,000 1,144,500
Precision Castparts....................... 215,000 7,551,875
Rohr Industries........................(a) 450,000 6,468,750
Roper Industries.......................... 152,500 5,337,500
Titan Wheel International................. 175,000 4,506,250
Watts Industries, Cl. A................... 210,000 5,263,125
Westinghouse Air Brake.................(a) 310,000 4,417,500
Whittaker..............................(a) 150,000 3,300,000
--------------
63,056,235
--------------
TECHNOLOGY-18.5% ASM Lithography Holding, N.V.............. 135,000 4,843,125
Auspex Systems.........................(a) 570,000 7,125,000
CBT Group PLC, A.D.R...................... 31,300 1,326,338
Datalogix International................... 36,000 877,500
Discreet Logic............................ 20,500 676,500
Eicon Technology.......................... 225,000 2,397,540
Electroglas............................(a) 30,000 1,717,500
Expert Software........................... 125,000 2,312,500
Gerber Scientific......................... 150,000 2,512,500
Glenayre Technologies..................(a) 125,000 6,375,000
Inference, Cl. A.......................(b) 110,000 1,553,750
InStent................................... 110,000 1,567,500
Integrated Silicon Solution............... 190,000 9,927,500
International Rectifier................(a) 150,000 4,875,000
Intuit.................................(a) 90,000 6,840,000
Learning...............................(a) 125,000 4,492,188
MySoftware................................ 65,000 812,500
Paradigm Technology....................... 50,000 1,121,875
Platinum Software......................(a) 205,000 2,972,500
Seer Technologies......................(b) 112,500 2,334,375
Sierra On-Line.........................(a) 325,000 8,125,000
SoftKey International..................(a) 175,000 5,578,125
Spectrum Holobyte......................(a) 185,000 2,647,812
Spyglass...............................(b) 105,000 3,005,625
StrataCom..............................(a) 95,000 4,631,250
--------------
90,648,503
--------------
TRANSPORT & AUTOS-1.5% Kirby..................................(a) 110,000 1,746,250
TNT Freightways........................... 135,000 2,683,125
U.S. Delivery Systems..................(a) 115,000 3,018,750
--------------
7,448,125
--------------
TOTAL COMMON STOCK
(cost $395,797,719)...................... $461,647,296
==============
DREYFUS NEW LEADERS FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PREFERRED STOCKS-.3% SHARES VALUE
-------------- --------------
INDUSTRIAL SERVICES; Separation Technologies,
Ser. A, 6%, Cum. Conv.
(cost $1,243,000)................(a,b,d) 243,385 $ 1,582,002
==============
PRINCIPAL
SHORT-TERM INVESTMENTS-6.8% AMOUNT
--------------
U.S. TREASURY BILLS: 5.60%, 7/6/95............................. $ 12,406,000 $ 12,396,944
5.58%, 7/20/95............................ 1,627,000 1,622,574
5.58%, 7/27/95............................ 4,862,000 4,843,767
5.56%, 8/3/95............................. 323,000 321,450
5.34%, 8/17/95............................ 7,313,000 7,261,224
5.46%, 8/24/95............................ 4,925,000 4,885,157
5.53%, 8/31/95............................ 1,926,000 1,908,339
--------------
TOTAL SHORT-TERM INVESTMENTS
(cost $33,236,914)...................... $ 33,239,455
==============
TOTAL INVESTMENTS (cost $430,277,633).......................................... 101.0% $496,468,753
======== ==============
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (1.0%) $ (4,742,128)
======== ==============
NET ASSETS..................................................................... 100.0% $491,726,625
======== ==============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Investment in non-controlled affiliates ( cost $16,383,745)-see Note
1 (d).
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in transactions exempt from
registration normally to qualified institutional buyers. At June 30,
1995, this security amounted to $2,544,704 or .5% of net assets.
(d) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate market value of $2,860,847, represents
approximately .58% of net assets.
</TABLE>
<TABLE>
<CAPTION>
ACQUISITION PURCHASE PERCENTAGE OF
ISSUER DATE PRICE NET ASSETS VALUATION*
------ ------------ ---------- ------------- ----------------
<S> <C> <C> <C> <C>
Individual Investor Group.................... 12/15/93 $3.25 .26% 30% discount
to market value
Separation Technologies,
Ser.A, 6% Cum. Conv...................... 7/12/93, 3.60, .32 $6.50
5/10/94, 4.75,
1/13/95, 6.50
*The valuation of these securities have been determined in good faith
under the direction of the Board of Directors.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW LEADERS FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $430,277,633)-see statement..................................... $496,468,753
Cash.................................................................... 1,152,932
Receivable for investment securities sold............................... 15,513,120
Dividends and interest receivable....................................... 300,486
Receivable for subscriptions to Common Stock............................ 125,110
Prepaid expenses........................................................ 66,663
--------------
513,627,064
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 285,208
Due to Distributor...................................................... 98,044
Payable for investment securities purchased............................. 21,212,116
Payable for Common Stock redeemed....................................... 118,461
Accrued expenses........................................................ 186,610 21,900,439
------------- --------------
NET ASSETS ................................................................ $491,726,625
==============
REPRESENTED BY:
Paid-in capital......................................................... $403,761,854
Accumulated undistributed investment income-net......................... 1,032,078
Accumulated undistributed net realized gain on investments
and foreign currency transactions..................................... 20,741,573
Accumulated net unrealized appreciation on investments
and foreign currency transactions-Note 3(b)........................... 66,191,120
--------------
NET ASSETS at value applicable to 13,752,058 outstanding shares of
Common Stock, equivalent to $35.76 per share
(100 million shares of $.01 par value authorized)....................... $491,726,625
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW LEADERS FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends:
Unaffiliated issuers.............................................. $ 1,834,410
Affiliated issuers................................................ 20,900 $ 1,855,310
-------------
Interest.............................................................. 1,617,599
-------------
TOTAL INCOME.................................................... 3,472,909
EXPENSES:
Management fee-Note 2(a).............................................. 1,605,476
Shareholder servicing costs-Note 2(b)................................. 821,009
Prospectus and shareholders' reports-Note 2(b)........................ 55,734
Custodian fees........................................................ 34,867
Registration fees..................................................... 34,833
Professional fees..................................................... 32,695
Directors' fees and expenses-Note 2(c)................................ 20,563
Miscellaneous......................................................... 4,289
-------------
2,609,466
Less-reimbursement of prospectus costs due to an undertaking
and reduction in expenses due to redemption fee-Note 2(b,d)....... 37,411
-------------
TOTAL EXPENSES.................................................. 2,572,055
-------------
INVESTMENT INCOME-NET........................................... 900,854
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and foreign currency
transactions-Note 3(a):
Long transactions:
Unaffiliated issuers............................................ $19,661,658
Affiliated issuers.............................................. 274,950
Short sale transactions........................................... 56,700
-------------
NET REALIZED GAIN................................................. 19,993,308
Net unrealized appreciation on investments, securities sold
short and foreign currency transactions:
Unaffiliated issuers.............................................. 34,559,877
Affiliated issuers................................................ 3,564,463 38,124,340
------------- -------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 58,117,648
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $59,018,502
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW LEADERS FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED)
--------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 1,118,062 $ 900,854
Net realized gain on investments..................................... 22,813,663 19,993,308
Net unrealized appreciation (depreciation) on investments for the period (25,906,257) 38,124,340
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... (1,974,532) 59,018,502
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ (890,468) -
Net realized gain on investments..................................... (30,527,977) -
--------------- ---------------
TOTAL DIVIDENDS.................................................... (31,418,445) -
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 172,304,714 98,946,360
Dividends reinvested................................................. 30,524,402 -
Cost of shares redeemed.............................................. (116,777,211) (57,863,675)
--------------- ---------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............. 86,051,905 41,082,685
--------------- ---------------
TOTAL INCREASE IN NET ASSETS................................... 52,658,928 100,101,187
NET ASSETS:
Beginning of period.................................................. 338,966,510 391,625,438
--------------- ---------------
End of period (including undistributed investment income-net:
$131,224 in 1994 and $1,032,078 in 1995)........................... $ 391,625,438 $ 491,726,625
=============== ===============
SHARES SHARES
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 5,091,995 3,006,918
Shares issued for dividends reinvested............................... 984,236 -
Shares redeemed...................................................... (3,509,729) (1,753,627)
--------------- ---------------
NET INCREASE IN SHARES OUTSTANDING................................. 2,566,502 1,253,291
=============== ===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW LEADERS FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
-------------------------------------------------- JUNE 30, 1995
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $29.27 $24.25 $32.29 $32.17 $34.13 $31.33
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net................. .45 .23 .14 .07 .10 .06
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions............... (3.92) 10.78 2.81 5.30 (.22) 4.37
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.... (3.47) 11.01 2.95 5.37 (.12) 4.43
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net.. (.48) (.23) (.14) (.07) (.08) -
Dividends in exess of investment
income-net....................... - - - - - -
Dividends from net realized gain
on investments.................... (1.07) (2.74) (2.93) (3.34) (2.60) -
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS................. (1.55) (2.97) (3.07) (3.41) (2.68) -
------- ------- ------- ------- ------- -------
Net asset value, end of period........ $24.25 $32.29 $32.17 $34.13 $31.33 $35.76
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN................... (11.85%) 45.39% 9.43% 17.07% (.15%) 14.14%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.42% 1.29% 1.21% 1.22% 1.16% .60%*
Ratio of net investment income to average
net assets.......................... 1.31% .76% .43% .19% .30% .21%*
Decrease in above expense ratios due to
an undertaking by the Manager and
redemption fee...................... - .06% .04% .04% .05% .01%*
Portfolio Turnover Rate............... 129.11% 107.64% 119.45% 127.97% 94.21% 51.70%*
Net Assets, end of period (000's Omitted) $102,281 $194,007 $233,619 $338,967 $391,625 $491,727
* Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS NEW LEADERS FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales load. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market.
Securities not listed on an exchange or the national securities market, or
securities for which there were no transactions, are valued at the average of
the most recent bid and asked prices, except for open short positions, where
the asked price is used for valuation purposes. Bid price is used when no
asked price is available. Securities for which there are no such valuations
are valued at fair value as determined in good faith under the direction of
the Board of Directors. Investments denominated in foreign currencies are
translated to U.S. dollars at the prevailing rates of exchange.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) AFFILIATED ISSUERS: Issuers in which the Fund held 5% or more of the
outstanding voting securities are defined as "affiliated" in the Act.
(E) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. This may result in distributions
that are in excess of investment income-net and net realized gain on a fiscal
year basis. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
DREYFUS NEW LEADERS FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(F) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .75 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings (which, in the
view of Stroock & Stroock & Lavan, counsel to the Fund, also contemplates
dividends on securities sold short), brokerage and extraordinary expenses,
exceed 1 1/2% of the average value of the Fund's net assets for any full
year. There was no expense reimbursement for the six months ended June 30,
1995.
(B) Under the Shareholder Services Plan, effective June 23, 1995, the
Fund pays the Distributor, at an annual rate of .25 of 1% of the value of the
Fund's average daily net assets for servicing shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquires regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. For the period June 23, 1995 through
June 30, 1995, the Fund was charged $26,689, pursuant to the Shareholder
Services Plan.
Prior to June 23, 1995, the Service Plan (the "Plan") pursuant to Rule
12b-1 under the Act, provided that the Fund (a) reimburses the Distributor
for payments to certain Service Agents for distributing the Fund's shares and
servicing shareholder accounts and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, or any affiliate
(collectively "Dreyfus") for advertising and marketing relating to the Fund
and servicing shareholder accounts, 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 Service Agents (a securities dealer, financial
institution of other industry professional) 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 to be paid to
Service Agents to which it will make payments and the basis on which such
payments are made. The Plan also separately provided for the Fund to bear the
costs of preparing, printing and distributing certain of the Fund's
prospectuses and statements of additional information and costs associated
with implementing and operating the Plan, not to exceed the greater of
$100,000 or .005 of 1% of the Fund's average daily net assets for any full
year. During the period from January 1, 1995 through June 22, 1995, $522,205
was charged to the Fund pursuant to the Plan of which $13,098 was waived by
the Manager. Effective June 23, 1995, the Plan has been terminated.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
DREYFUS NEW LEADERS FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(D) A 1% redemption fee is charged on certain redemptions of Fund shares
(including redemptions through use of the Exchange Privilege) where the
shares being redeemed were issued subsequent to a specified effective date
and the redemption or exchange occurs within a six-month period following the
date of issuance. During the six months ended June 30, 1995, redemption fees
amounted to $24,313.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short, excluding short-term
securities, during the six months ended June 30, 1995:
PURCHASES SALES
---------------- ----------------
Long transactions:
Unaffiliated issuers......... $261,294,613 $194,688,119
Affiliated issuers........... 3,981,333 986,875
---------------- ----------------
265,275,946 195,674,994
Short sale transactions........ 421,317 478,017
---------------- ----------------
TOTAL.................... $265,697,263 $196,153,011
================ ================
The Fund is engaged in short-selling which obligates the Fund to replace
the security borrowed by purchasing the security at
current market value. The Fund would incur a loss if the price of the
security increases between the date of the short sale and the date on which
the Fund replaces the borrowed security. The Fund would realize a gain if the
price of the security declines between those dates. Until the Fund replaces
the borrowed security, the Fund will maintain daily, a segregated account
with a broker and custodian, of cash and/or U.S. Government securities
sufficient to cover its short position. At June 30, 1995, there were no
securities sold short outstanding.
(B) At June 30, 1995, accumulated net unrealized appreciation on
investments was $66,191,120, consisting of $77,880,292 gross unrealized
appreciation and $11,689,172 gross unrealized depreciation, excluding foreign
currency transactions.
At June 30, 1995, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS NEW LEADERS FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW LEADERS FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus New Leaders Fund, Inc., including the statement of investments, as of
June 30, 1995, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended June 30, 1995.
These financial statements and financial highlights are the responsibility of
the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1994 and financial highlights for each of the five years in the
period ended December 31, 1994 and in our report dated February 1, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst Y Young LLP Signature Logo)
New York, New York
August 7, 1995
DREYFUS NEW LEADERS FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 085SA956
New Leaders
Fund, Inc.
Semi-Annual
Report
June 30, 1995
