LETTER TO SHAREHOLDERS
Dear Shareholder:
In August 1994, NCM Capital Management Group, Inc. ("NCM") was named
sub-investment adviser of The Dreyfus Socially Responsible Growth Fund, Inc.
Since that time the Fund has been in transition as we have made changes in
the portfolio to reflect a new management style that concentrates on
securities with superior growth rates selling at reasonable prices.
It has been a difficult year for investors, with most stock indices barely
achieving positive returns for the year. The S&P
500 Composite Stock Price Index was up 1.31% in a year that was marked by
several interest rate hikes.* We are pleased to report that The Dreyfus
Socially Responsible Growth Fund outperformed the S&P 500 Composite Stock
Price Index, providing a total return of 1.49% for the fiscal year ended
December 31, 1994.** The Fund's performance does not reflect the deduction of
additional charges applicable to separate accounts of participating insurance
companies using the Fund as an underlying investment.
REPOSITIONING THE PORTFOLIO
NCM began repositioning the Fund by selling securities that were thought
to be fully priced, having achieved their price objectives. These were
generally stocks that at one time had been great performers, but had since
fundamentally declined. They included such names as Price/Costco, Pepsico,
J.P. Morgan, BancOne, Wang Labs, Singer Co. N.V. and Sigma Aldrich. Each
stock subsequently underperformed after the decision to sell.
In general we felt the portfolio had too many stocks in the consumer
staple area and too few in the industrial/capital goods and technology
sectors. It appeared that the market was willing to pay for accelerating
earnings and consumer staples did not appear to have that quality.
Conversely, the more economically sensitive sectors were benefiting from
accelerating earnings and little to no inflation. The changes that were made
included purchases of the following securities: Amgen, Armstrong World Industr
ies, BMC Software, Disney (Walt), Dean Witter Discover, Fluor,
Hewlett-Packard, AGCO, Cummins Engine, and Motorola.
Unfortunately, some aspects of transitioning the portfolio were hindered
by an IRS regulation known as the "short-short" rule. The "short-short" rule
limits income derived from short-term trades, sales of securities that are
held for less than three months, to less than 30% of a fund's gross income.
This is not an unusual situation for funds in transition that experience high
turnover. In complying with the regulation, we were forced to delay many
trades.
PATIENCE IN DEPLOYING CASH
By late summer it appeared that the stock market was rallying due to
investor expectations that the Federal Reserve Board would not be raising
interest rates for a while. Stronger than expected economic numbers in
September, however, suggested a further rate increase and an end to the
rally. We were concerned about putting the Fund's sizeable cash position to
work at what appeared to be an intermediate market top. Our decision not to
invest our cash at that time proved to be the right decision as the market
struggled from that point until the end of the year, experiencing a big
decline in the third quarter and wild swings throughout the fourth. In a year
when cash was king, the Fund's large cash position was its most beneficial
characteristic.
OUR OUTLOOK
Going forward, the Fund will be moving towards a more fully invested
position. The sectors that we presently like include technology, basics and
industrials. These sectors are experiencing superior top-line
growth and above-average earnings, which the market appears willing to pay
for. At some point in the third or fourth quarter, however, we expect to see
signs of a slowdown in the economy. We believe this will hurt those sectors
and shift the market's attention back towards consumer staples and utilities,
which are more defensive in nature.
The electric utility stocks have been oversold for quite some time, and
now compete with fixed income securities because of their above-average
yields. Their depressed valuations make them appealing because we believe the
downside is now limited. We also believe that certain segments of the
financial sector can perform well in a more difficult market environment. We
expect that financial companies in more fee-oriented businesses will do well
despite a flattening in the yield curve. These include mutual fund advisers
and brokerage stocks, which also are undervalued when compared to past
standards.
As for the market overall, we are cautious about the prospect for stocks
over the next 12 months. Unless there are signs of the economy slowing, we
expect to see continued interest rate increases by the Federal Reserve Board.
This may limit the market's return potential to 5% - 8%, a level below the
historical average.
We are pleased to have you as a shareholder in the Fund, and we look
forward to serving your future investment needs.
Sincerely,
(Logo Signature) (Logo Signature)
Diane Coffey Maceo K. Sloan
The Dreyfus Corporation C.F.A. - Chairman, President and C.E.O.
NCM Capital Management Group, Inc.
January 26, 1995
New York, N.Y.
* Source: LIPPER ANALYTICAL SERVICES, INC. _ Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of stock market performance.
** Total return represents the change during the period in a hypothetical
account with dividends reinvested.
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS SOCIALLY
RESPONSIBLE GROWTH FUND, INC. AND THE STANDARD & POOR'S 500 COMPOSITE STOCK
PRICE INDEX
*Source: Lipper Analytical Services, Inc.
(Exhibit A)
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (10/7/93)
DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- ---------------------------
<S> <C> <C>
1.49% 7.18%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment in Dreyfus Socially Responsible
Growth Fund on 10/7/93 (Inception Date) to a $10,000 investment made in the
Standard & Poor's 500 Composite Stock Price Index on that date. For
comparative purposes, the value of the Index on 9/30/93 is used as the
beginning value on 10/7/93. All dividends and capital gain distributions are
reinvested.
The Fund's performance takes into account all applicable fees and expenses.
The Standard & Poor's 500 Composite Stock Price Index is a widely accepted,
unmanaged index of overall stock market performance and does not take into
account charges, fees and other expenses. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus
and elsewhere in this report.
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
DECEMBER 31, 1994
<S> <C> <C>
ASSET ALLOCATION
FIVE LARGEST SECTORS
Consumer Staples................................................ 11.7%
Technology...................................................... 10.7
Consumer Cyclical............................................... 8.8
Finance......................................................... 8.2
Industrial...................................................... 6.5
TEN LARGEST HOLDINGS
Merck & Co...................................................... 2.4%
EMC............................................................. 1.5
Hewlett-Packard................................................. 1.5
American International Group.................................... 1.4
AT & T.......................................................... 1.4
Dollar General.................................................. 1.4
Disney (Walt)................................................... 1.4
Ameritech....................................................... 1.3
Colgate-Palmolive............................................... 1.3
Coca-Cola....................................................... 1.2
All percentages shown above are based on Total Net Assets.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
COMMON STOCKS--55.8% SHARES VALUE
--------------------------
<S> <C> <C> <C>
BASICS--3.1% American Barrick Resources.............. 3,000 $ 66,750
British Steel, A.D.S. ................. 1,700 41,225
Cleveland-Cliffs....................... 1,500 55,500
Nucor.................................. 1,200 66,600
Praxair................................ 3,700 75,850
Santa Fe Pacific Gold.................. (a) 1,680 21,630
----------
327,555
----------
CONSUMER CYCLICAL--8.8% American Stores....................... 3,100 83,313
Clayton Homes.......................... 3,750 59,063
Disney (Walt).......................... 3,100 142,988
Dollar General......................... 4,775 143,250
Grainger (W.W.)........................ 1,400 80,850
Heilig-Meyers.......................... 2,100 53,025
Leggett & Platt........................ 1,500 52,500
Lennar................................. 3,200 49,600
Lowe's................................. 1,300 45,175
Oxford Industries...................... 1,900 41,562
Penney (J.C.).......................... 1,200 53,550
Pier 1 Imports......................... 7,700 72,187
Wal-Mart Stores........................ 1,900 40,375
----------
917,438
----------
CONSUMER STAPLES--11.7% ALZA................................... (a) 1,800 32,400
Amgen................................ (a) 1,700 100,300
Becton, Dickinson...................... 1,700 81,600
Coca-Cola.............................. 2,500 128,750
Colgate-Palmolive...................... 2,100 133,088
Columbia/HCA Healthcare................ 1,800 65,700
Cordis............................... (a) 1,500 90,750
Forest Laboratories.................. (a) 1,300 60,613
Genelabs Technologies................ (a) 5,200 6,175
Gillette............................... 1,000 74,750
HealthCare COMPARE................... (a) 1,900 64,837
Medtronic.............................. 1,200 66,750
Merck & Co. ........................... 6,500 247,812
NovaCare............................. (a) 4,000 29,000
Vallen............................... (a) 2,300 31,625
----------
1,214,150
----------
ENERGY--.8% Anadarko Petroleum..................... 500 19,250
Tosco.................................. 2,100 61,163
----------
80,413
----------
FINANCE--8.2% ADVANTA, Cl. A......................... 2,000 52,500
AFLAC.................................. 3,700 118,400
American International Group........... 1,500 147,000
Dean Witter, Discover & Co. ........... 700 23,713
Federal National Mortgage Association.. 1,700 123,887
First Chicago.......................... 1,300 62,075
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- ------------
FINANCE (CONTINUED) Green Tree Financial.................... 2,000 $ 60,750
Midlantic.............................. 2,300 60,950
NationsBank............................ 1,400 63,175
PXRE................................... 1,100 31,075
State Street Boston.................... 1,400 40,075
T. Rowe Price Association.............. 2,300 69,000
----------
852,600
----------
INDUSTRIAL--6.5% AGCO................................... 2,700 82,012
Armstrong World Industries............. 1,200 46,200
Briggs & Stratton...................... 1,000 32,750
Clark Equipment...................... (a) 1,100 59,675
Cummins Engine......................... 1,300 58,825
Deere & Co. ........................... 800 53,000
Eaton.................................. 1,400 69,300
Federal-Mogul.......................... 2,200 44,275
Fluor.................................. 1,100 47,438
Ingersoll-Rand......................... 2,200 69,300
Magna International, Cl. A............. 1,400 53,725
Miller (Herman)........................ 2,300 60,375
----------
676,875
----------
TECHNOLOGY--10.7% Applied Materials...................... (a) 1,400 59,150
BMC Software......................... (a) 1,900 108,062
Compaq Computer...................... (a) 1,600 63,200
Computer Associates International...... 2,100 101,850
E-Systems.............................. 2,000 83,250
EMC.................................. (a) 7,400 160,025
Hewlett-Packard........................ 1,600 159,800
Linear Technology...................... 1,500 74,250
Motorola............................... 1,600 92,600
Oracle Systems....................... (a) 1,800 79,425
Seagate Technology................... (a) 3,000 72,000
Texas Instruments...................... 800 59,900
----------
1,113,512
----------
TRANSPORTATION--1.8% Airborne Freight ....................... 1,900 38,950
Santa Fe Pacific....................... 2,800 49,000
Southwest Airlines..................... 2,500 41,875
Union Pacific.......................... 1,200 54,750
----------
184,575
----------
UTILITIES--4.2% AT & T.................................. 2,900 145,725
Ameritech.............................. 3,400 137,275
SBC Communications..................... 1,800 72,675
Sprint................................. 2,900 80,112
----------
435,787
----------
TOTAL COMMON STOCKS
(cost $5,920,488).................... $5,802,905
==========
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
SHORT-TERM INVESTMENTS--42.4% AMOUNT VALUE
------------ --------------
U.S. TREASURY BILLS:
5.17%, 2/2/95.......................... $ 224,000 $ 222,971
4.85%, 2/9/95.......................... 4,076,000 4,054,584
5.30%, 3/9/95.......................... 140,000 138,619
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $4,416,174).................... $4,416,174
==========
TOTAL INVESTMENTS (cost $10,336,662) ................................ 98.2% $10,219,079
===== ===========
CASH AND RECEIVABLES (NET) ......................................... 1.8% $ 187,202
===== ===========
NET ASSETS.................................................................. 100.0% $10,406,281
===== ===========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $10,336,662)_see statement........................................................ $10,219,079
Cash...................................................................................... 151,531
Dividends receivable...................................................................... 10,764
Prepaid expenses.......................................................................... 52,813
Due from The Dreyfus Corporation.......................................................... 1,215
-----------
10,435,402
LIABILITIES;
Accrued expenses.......................................................................... 29,121
-----------
NET ASSETS ........................................................................ $10,406,281
===========
REPRESENTED BY:
Paid-in capital........................................................................... $10,587,569
Accumulated distributions in excess of investment income_net.............................. (2,009)
Accumulated net realized (loss) on investments............................................ (61,696)
Accumulated net unrealized (depreciation) on investments_Note 3........................... (117,583)
-------------
NET ASSETS at value applicable to 786,711 shares outstanding
(150 million shares of $.001 par value Common Stock authorized)........................... $10,406,281
===========
NET ASSET VALUE, offering and redemption price per share
($10,406,281 / 786,711 shares)............................................................ $13.23
======
See notes to financial statements.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $219 foreign taxes withheld at source)......... $ 169,021
Interest.............................................................. 109,701
----------
TOTAL INCOME.................................................... $ 278,722
EXPENSES:
Investment advisory fee_Note 2(a)..................................... 41,102
Sub-investment advisory fee_Note 2(a)................................. 2,200
Legal fees............................................................ 57,909
Organization expenses................................................. 15,273
Directors' fees and expenses_Note 2(c)................................ 11,775
Auditing fees......................................................... 11,174
Shareholder servicing costs_Note 2(b)................................. 9,643
Prospectus and shareholders' reports.................................. 6,433
Custodian fees........................................................ 5,119
Registration fees..................................................... 3,116
Miscellaneous......................................................... 1,017
----------
164,761
Less_expense reimbursement from Dreyfus and Tiffany due to
undertakings_Note 2(a)............................................ 150,327
----------
TOTAL EXPENSES.................................................. 14,434
----------
INVESTMENT INCOME--NET.......................................... 264,288
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments_Note 3............................... $ (61,713)
Net unrealized (depreciation) on investments............................ (146,700)
----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (208,413)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 55,875
==========
See notes to financial statements.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-----------------------------
1993* 1994
------------ ----------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 3,558 $ 264,288
Net realized gain (loss) on investments................................. 17 (61,713)
Net unrealized appreciation (depreciation) on investments for the year.. 29,117 (146,700)
------------ ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 32,692 55,875
------------ ----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income_net................................................... (3,904) (265,951)
------------ ----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 1,471,438 10,922,467
Dividends reinvested.................................................... 3,904 265,951
Cost of shares redeemed................................................. (232,432) (1,943,759)
------------ ----------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 1,242,910 9,244,659
------------ ----------
TOTAL INCREASE IN NET ASSETS...................................... 1,271,698 9,034,583
NET ASSETS:
Beginning of year....................................................... 100,000 1,371,698
------------ ----------
End of year (including distributions in excess of investment income_net of ($346)
in 1993 and ($2,009) in 1994, respectively).......................... $ 1,371,698 $10,406,281
============ ===========
SHARES SHARES
------------ ----------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 112,080 808,182
Shares issued for dividends reinvested.................................. 292 20,087
Shares redeemed......................................................... (17,869) (144,061)
------------ ----------
NET INCREASE IN SHARES OUTSTANDING.................................... 94,503 684,208
============ ===========
* From October 7, 1993 (commencement of operations) to December 31, 1993.
See notes to financial statements.
</TABLE>
<TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH 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 year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31,
---------------------------
PER SHARE DATA 1993(1) 1994
------------ ----------
<S> <C> <C>
Net asset value, beginning of year..................................... $12.50 $13.38
------- -------
INVESTMENT OPERATIONS:
Investment income_net.................................................. .04 .35
Net realized and unrealized gain (loss) on investments................. .88 (.15)
------- -------
TOTAL FROM INVESTMENT OPERATIONS..................................... .92 .20
------- -------
DISTRIBUTIONS;
Dividends from investment income_net................................... (.04) (.35)
------- -------
Net asset value, end of year........................................... $13.38 $13.23
====== =======
TOTAL INVESTMENT RETURN.................................................... 7.35%(2) 1.49%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................ .06%(2) .25%
Ratio of net investment income to average net assets................... .64%(2) 4.58%
Decrease reflected in above expense ratios due to undertakings
by Dreyfus and Tiffany............................................... 6.19%(2) 2.60%
Portfolio Turnover Rate................................................ -- 373.68%
Net Assets, end of year (000's Omitted)................................ $1,372 $10,406
(1) From October 7, 1993 (commencement of operations) to December 31, 1993.
(2) Not annualized.
See notes to financial statements.
</TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
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. The Fund is intended
to be a funding vehicle for variable annuity contracts and variable life
insurance policies to be offered by the separate accounts of life insurance
companies. The Dreyfus Corporation ("Dreyfus") serves as the Fund's
investment adviser. Tiffany Capital Advisors, Inc. ("Tiffany") served as the
Fund's sub-investment adviser until August 1, 1994. On August 2, 1994, the
Fund's shareholders approved a new sub-investment advisory agreement between
Dreyfus and NCM Capital Management Group, Inc. to replace the existing
sub-investment advisory agreement between the Fund and Tiffany. Prior to
August 24, 1994, the Dreyfus Service Corporation, a wholly-owned subsidiary
of Dreyfus, acted as the exclusive distributor of the Fund's shares, which
are sold without a sales charge. Effective August 24, 1994, Dreyfus became a
direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, 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.
(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. Bid price is used when no asked price
is available. Short-term investments are carried at amortized cost, which
approximates value.
(B) 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.
(C) 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 on a fiscal year basis. To the
extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) 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.
The Fund has an unused capital loss carryover of approximately $51,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1994. If not
applied, the carryover expires in 2002.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH
AFFILIATES:
(A) Pursuant to a new Investment Advisory Agreement with Dreyfus, the
investment advisory 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. Pursuant to a new Sub-Investment Advisory Agreement with NCM
Capital Management Group, Inc., the sub-investment advisory fee is computed
at an annual rate of .10 of 1% on the first $500 million and .20 of 1% on the
excess of the average daily value of the Fund's net assets and is payable
monthly by Dreyfus.
Fees payable by the Fund prior to August 2, 1994 pursuant to the
provisions of an Investment Advisory Agreement with Dreyfus and a
Sub-Investment Advisory Agreement with Tiffany were paid monthly and computed
on the average daily value of the Fund's net assets at the following annual
rates:
<TABLE>
TOTAL NET ASSETS DREYFUS TIFFANY
------------------- ------------- ---------
<S> <C> <C>
The first $200 million.................... .65 of 1% .10 of 1%
$200 up to $300 million.................. .55 of 1% .20 of 1%
In excess of $300 million............... .375 of 1% .375 of 1%
</TABLE>
The Investment Advisory Agreement further provides that if in any full
year the aggregate expenses of the Fund, excluding
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed
the expense limitation of any state having jurisdiction over the Fund, the
Fund may deduct from the fee to be paid to Dreyfus, or Dreyfus will bear,
such excess expense to the extent required by state law. However, Dreyfus and
Tiffany had undertaken from January 1, 1994 through December 31, 1994
(through August 1, 1994 for Tiffany) to waive receipt of the investment
advisory and sub-investment advisory fees payable to them by the Fund.
Pursuant to the undertakings, Dreyfus and Tiffany waived the investment
advisory and sub-investment advisory fees for the year ended December 31,
1994 (through August 1, 1994 for Tiffany), which amounted to $41,102 and
$2,200, respectively. In addition, Dreyfus had undertaken through December
31, 1994 to assume those expenses (excluding the investment advisory fee and
certain expenses as described above) incurred by the Fund, to the extent that
such expenses exceeded an annual rate of .25 of 1% of the Fund's average
daily net assets. Dreyfus has currently undertaken to reduce the investment
advisory fee paid by the Fund, to the extent that the Fund's aggregate
expenses (excluding certain expenses as described above) exceed specified
annual percentages of the Fund's average daily net assets. The expense
reimbursement, pursuant to the undertakings, amounted to $107,025 for the
year ended December 31, 1994.
The undertakings may be modified by Dreyfus from time to time, provided
that the resulting expense reimbursement would not be less than the amount
required pursuant to the Investment Advisory Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for certain allocated
expenses with respect to servicing and/or maintaining shareholder accounts.
During the year ended December 31, 1994, no amounts were charged to the Fund
pursuant to the Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Investment Adviser
and/or Dreyfus Service Corporation. Each director who is not an "affiliated
person" receives an annual fee of $2,500.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the year ended December 31, 1994,
amounted to $17,367,750 and $12,180,849, respectively.
At December 31, 1994, accumulated net unrealized depreciation on
investments was $117,583, consisting of $327,870 gross unrealized
appreciation and $445,453 gross unrealized depreciation.
At December 31, 1994, 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).
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
We have audited the accompanying statement of assets and liabilities of
The Dreyfus Socially Responsible Growth Fund, Inc., including the statement
of investments, as of December 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Dreyfus Socially Responsible Growth Fund, Inc. at December
31, 1994, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
(Logo Signature)
New York, New York
February 1, 1995
THE DREYFUS SOCIALLY RESPONSIBLE
GROWTH FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
NCM Capital Management Group, Inc.
103 West Main Street
Durham, NC 27701
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. 111AR9412
Socially Responsible
Growth Fund, Inc.
Annual Report
December 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE
INDEX
EXHIBIT A:
_____________________________________________________
| | STANDARD | |
| | & POOR'S 500 | DREYFUS |
| PERIOD | COMPOSITE STOCK | SOCIALLY RESPONSIBLE |
| | PRICE INDEX* | GROWTH FUND |
|--------- | --------------- | -------------------- |
| 10/7/93 | 10,000 | 10,000 |
|12/31/93 | 10,232 | 10,735 |
| 3/31/94 | 9,844 | 10,751 |
| 6/30/94 | 9,886 | 10,655 |
| 9/30/94 | 10,368 | 10,880 |
|12/31/94 | 10,366 | 10,895 |
|-------------------------------------------------- |
*Source: Lipper Analytical Services, Inc.
The Dreyfus Socially Responsible Growth Fund, Inc.
Asset Allocation
|---------------------------------------------|
|Common Stocks 55.8 % |
|Cash Equivalents 44.2 % |
|---------------------------------------------|
