The Dreyfus Socially Responsible
Growth Fund, Inc.
ANNUAL REPORT December 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
18 Report of Independent Auditors
19 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
The Dreyfus Socially Responsible Growth Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for The Dreyfus Socially
Responsible Growth Fund, Inc., covering the 12-month period from January 1, 1999
through December 31, 1999. Inside, you'll find valuable information about how
the fund was managed during the reporting period, including a discussion with
the fund's portfolio managers, Paul A. Hilton and Maceo K. Sloan.
The past year has been both highly volatile and rewarding for many investors in
U.S. stocks. On December 31, the last trading day of 1999, most major stock
market indices hit new highs, including the Dow Jones Industrial Average, the S&
P 500 Index of large-cap stocks, the technology-heavy Nasdaq 100 and the Russell
2000 Index of small-cap stocks.
These simultaneous highs masked the remarkable narrowness of the stock market's
advance in 1999, however. Following the trend established over the past several
years, growth-oriented stocks handily outperformed value-oriented stocks.
Indeed, until a more broad-based rally in the fourth quarter, stellar
performance was generally limited to a handful of highly valued technology and
telecommunications companies. In our view, many fundamentally sound companies in
other market sectors may be selling at attractive valuations.
We appreciate your confidence over the past year, and we look forward to your
continued participation in The Dreyfus Socially Responsible Growth Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
January 14, 2000
DISCUSSION OF FUND PERFORMANCE
Paul A. Hilton and Maceo K. Sloan, Portfolio Managers
How did The Dreyfus Socially Responsible Growth Fund, Inc. perform relative to
its benchmark?
For the 12-month period ended December 31, 1999, The Dreyfus Socially
Responsible Growth Fund, Inc. produced a total return of 30.08%.(1) In contrast,
the fund's benchmark, the Standard & Poor's 500((reg.tm)) Composite Stock Price
Index (" S& P 500" ), produced a total return of 21.03%, and the Dow Jones
Industrial Average produced a total return of 27.29% for the same period.(2
We are very pleased with the fund's returns and attribute our strong performance
to our emphasis on technology stocks, a market sector that performed
exceptionally well over the past year, and an area in which we made good
stock-selection choices. Our holdings in the consumer cyclical and health care
sectors also helped drive the fund' s performance.
What is the fund's investment approach?
The fund seeks to provide capital growth by investing in high quality,
growth-oriented companies that generally exhibit three characteristics:
improving profitability measurements, a pattern of consistent earnings and
reasonable prices. To pursue this goal, the fund invests primarily in the common
stock of companies that, in the opinion of the fund' s management, meet
traditional investment standards while simultaneously conducting their
businesses in a manner that contributes to the enhancement of the quality of
life in America.
What other factors influenced the fund's performance?
When the reporting period began, many overseas economies were starting to show
early signs of recovery from the fall 1998 economic crises. As global economies
continued to strengthen throughout the year, investors became more comfortable
holding riskier assets. During the short period from April through May, market
sentiment moved away from domestic large-cap growth stocks to include a broader
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
group of companies. However, by the end of the summer and through the end of the
year, the equity markets once again narrowed, favoring large-cap growth names
While the equity markets recorded strong gains during 1999, those gains were
accompanied by heightened volatility in a rising interest-rate environment. In
fact, only a few sectors of the equity markets performed well this past year.
Most of the gains were limited to technology and, to a lesser degree,
telecommunications stocks. Our emphasis on these sectors benefited the fund.
What is the fund's current strategy?
We have continued to maintain our strategy of seeking companies that produce
consistent earnings but are reasonably priced. While we currently plan to
maintain our emphasis on technology and health care stocks, we have also begun
to increase our exposure to financial stocks because we believe that their
valuations have become attractive. In our view, many financial companies have
become adept at maintaining their companies' growth rates in rising
interest-rate environments. We are particularly interested in companies with a
large percentage of their business in fee-based accounts because we believe that
they are best positioned to improve their earnings regardless of the direction
of interest rates.
Can you give us an update on recent activity in the field of socially
responsible investing?
In our last report, we discussed a shareholder resolution facing Home Depot, the
large home improvement retailer, to stop the sale of building products made from
old-growth wood. We voted in favor of this resolution. On August 26, 1999, Home
Depot' s President and CEO, Arthur M. Blank, pledged to stop selling wood
products from environmentally sensitive areas and, by the end of the year 2002,
to eliminate wood from endangered areas from all of its stores. We are pleased
with Home Depot' s actions, which have apparently started a trend among other
home improvement retailers, such as HomeBase, the Irvine, California-based
chain, and Wickes Lumber. It is expected that several other home improvement
retailers will follow the lead set by these three companies.
In other industry news, on November 4, 1999, the Social Investment Forum, a
nonprofit organization dedicated to promoting socially and environmentally
responsible investing, released a report stating that more than $2 trillion is
invested in the U.S. today in a socially responsible manner, reflecting an 82%
rise from 1997 levels. However, what may be even more significant is the rise of
socially responsible assets versus the growth of overall stock market investing.
According to the report, socially responsible assets grew at roughly twice the
rate of all U.S. assets under management, which climbed 42% during the same time
period.(3)
We are very pleased with the findings of the report and believe it clearly
illustrates that a growing number of Americans are investing their money in a
fashion that is aligned with their social and environmental values.
January 14, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. THE FUND'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION
OF ADDITIONAL CHARGES AND EXPENSES IMPOSED IN CONNECTION WITH INVESTING IN
VARIABLE INSURANCE CONTRACTS, WHICH WILL REDUCE RETURNS.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. BOTH THE
STANDARD & POOR'S 500((reg.tm)) COMPOSITE STOCK PRICE INDEX AND THE DOW JONES
INDUSTRIAL AVERAGE ARE WIDELY ACCEPTED, UNMANAGED INDICES OF U.S. STOCK MARKET
PERFORMANCE.
(3) DATA COMPILED BY THE 1999 NELSON'S DIRECTORY OF INVESTMENT MANAGERS.
The Fund
<TABLE>
<CAPTION>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in The Dreyfus Socially
Responsible Growth Fund, Inc. and the Standard and Poor's 500 Composite Stock
Price Index
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 12/31/99
Inception From
Date 1 Year 5 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FUND 10/7/93 30.08% 28.66% 24.11%
(+) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The fund's performance does not reflect the deduction of additional charges and
expenses imposed in connection with investing in variable insurance contracts
which will reduce returns.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN THE DREYFUS SOCIALLY
RESPONSIBLE GROWTH FUND, INC. ON 10/7/93 (INCEPTION DATE) TO A $10,000
INVESTMENT MADE IN THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX ON THAT
DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 9/30/93 IS USED AS
THE BEGINNING VALUE ON 10/7/93. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES OF THE FUND. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE
INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE,
WHICH DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. FURTHER
INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF
APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS
AND ELSEWHERE IN THIS REPORT.
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
December 31, 1999
COMMON STOCKS--95.6% Shares Value ($)
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COMMERCIAL SERVICES--.9%
<S> <C> <C>
Omnicom Group 83,000 8,300,000
CONSUMER NON-DURABLES--7.2%
Clorox 194,800 9,813,050
Coca-Cola 180,600 10,519,950
Kimberly-Clark 170,000 11,092,500
Procter & Gamble 228,600 25,045,988
Quaker Oats 125,900 8,262,188
64,733,676
CONSUMER SERVICES--3.1%
Gannett 124,000 10,113,750
Time Warner 237,300 17,189,419
27,303,169
ELECTRONIC TECHNOLOGY--19.8%
Cisco Systems 341,600 (a) 36,593,900
Cree Research 149,800 (a) 12,789,175
EMC 156,000 (a) 17,043,000
Intel 115,400 9,498,862
International Business Machines 112,200 12,117,600
Linear Technology 104,800 7,499,750
Lucent Technologies 91,200 6,822,900
Nokia, ADS 60,900 11,571,000
Nortel Networks 97,000 9,797,000
Sanmina 53,000 (a) 5,293,375
Solectron 110,000 (a) 10,463,750
Sun Microsystems 315,600 (a) 24,439,275
Tellabs 212,800 (a) 13,659,100
177,588,687
ENERGY MINERALS--1.1%
BP Amoco, ADS 168,400 9,988,225
FINANCE--16.3%
AFLAC 230,000 10,853,125
American Express 111,000 18,453,750
American International Group 201,750 21,814,219
Capital One Financial 138,000 6,649,875
Citigroup 343,700 19,096,831
Fannie Mae 344,800 21,528,450
Marsh & McLennan Cos. 117,700 11,262,419
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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FINANCE (CONTINUED)
Merrill Lynch 208,700 17,426,450
Providian Financial 118,800 10,818,225
State Street 116,300 8,497,169
146,400,513
HEALTH SERVICES--.4%
Cardinal Health 83,000 3,973,625
HEALTH TECHNOLOGY--10.9%
Amgen 216,800 (a) 13,021,550
Guidant 177,600 (a) 8,347,200
Johnson & Johnson 115,900 10,793,187
Lilly (Eli) & Co. 212,200 14,111,300
Merck & Co. 305,500 20,487,594
Pfizer 358,500 11,628,844
Schering-Plough 450,500 19,005,469
97,395,144
INDUSTRIAL SERVICES--1.0%
Halliburton 231,000 9,297,750
PROCESS INDUSTRIES--2.1%
Avery Dennison 154,800 11,281,050
Ecolab 199,000 7,785,875
19,066,925
PRODUCER MANUFACTURING--3.7%
Illinois Tool Works 86,700 5,857,669
Miller (Herman) 180,000 4,140,000
Minnesota Mining & Manufacturing 134,200 13,134,825
Pitney Bowes 204,600 9,884,737
33,017,231
RETAIL TRADE--8.1%
CVS 143,500 5,731,031
Dollar General 200,000 4,550,000
Gap 272,800 12,548,800
Home Depot 251,550 17,246,897
Safeway 209,400 (a) 7,446,787
TJX Cos. 304,000 6,213,000
Wal-Mart Stores 268,400 18,553,150
72,289,665
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY SERVICES--13.7%
America Online 102,800 (a) 7,754,975
BMC Software 192,900 (a) 15,419,944
Compuware 320,000 (a) 11,920,000
First Data 196,900 9,709,631
Microsoft 352,000 (a) 41,096,000
Oracle 333,000 (a) 37,316,812
123,217,362
UTILITIES--7.3%
AES 149,400 (a) 11,167,650
ALLTEL 98,000 8,103,375
AT&T--Liberty Media Group, Cl. A 217,800 (a) 12,360,150
MCI WorldCom 266,700 (a) 14,151,769
SBC Communications 177,782 8,666,872
Vodafone AirTouch, ADR 223,250 11,050,875
65,500,691
TOTAL COMMON STOCKS
(cost $585,850,006) 858,072,663
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Principal
SHORT-TERM INVESTMENTS--5.1% Amount ($) Value ($)
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CERTIFICATES OF DEPOSIT--.0%
Self Help Credit Union,
5.41%, 3/20/2000 100,000 100,000
U.S.TREASURY BILLS--5.1%
5.20%, 1/13/2000 11,713,000 11,697,890
5.02%, 1/20/2000 1,017,000 1,014,773
4.96%, 2/3/2000 548,000 545,819
5.05%, 2/10/2000 18,650,000 18,553,952
5.26%, 3/23/2000 171,000 169,073
5.17%, 3/30/2000 14,084,000 13,908,373
45,889,880
TOTAL SHORT-TERM INVESTMENTS
(cost $45,970,660) 45,989,880
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TOTAL INVESTMENTS (cost $631,820,666) 100.7% 904,062,543
LIABILITIES, LESS CASH AND RECEIVABLES (.7%) (6,524,039)
NET ASSETS 100.0% 897,538,504
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 631,820,666 904,062,543
Cash 301,035
Dividends and interest receivable 347,778
Prepaid expenses 16,815
904,728,171
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 569,142
Payable for investment securities purchased 6,500,936
Accrued expenses 119,589
7,189,667
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NET ASSETS ($) 897,538,504
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 625,308,749
Accumulated undistributed investment income--net 154,805
Accumulated net realized gain (loss) on investments (166,927)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 272,241,877
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NET ASSETS ($) 897,538,504
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SHARES OUTSTANDING
(150 million shares of $.001 par value Common Stock authorized) 22,972,964
NET ASSET VALUE, offering and redemption price per share ($) 39.07
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $11,121 foreign taxes withheld at source) 4,218,277
Interest 1,182,523
TOTAL INCOME 5,400,800
EXPENSES:
Investment advisory fee--Note 3(a) 4,867,764
Registration fees 75,368
Custodian fees--Note 3(b) 51,412
Prospectus and shareholders' reports 43,319
Shareholder servicing costs--Note 3(b) 38,346
Professional fees 35,462
Directors' fees and expenses--Note 3(c) 9,591
Loan commitment fees--Note 2 5,138
Miscellaneous 8,816
TOTAL EXPENSES 5,135,216
INVESTMENT INCOME--NET 265,584
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 30,035,205
Net unrealized appreciation (depreciation) on investments 152,921,846
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 182,957,051
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 183,222,635
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
----------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 265,584 707,159
Net realized gain (loss) on investments 30,035,205 16,201,927
Net unrealized appreciation (depreciation)
on investments 152,921,846 72,812,354
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 183,222,635 89,721,440
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (110,779) (738,546)
Net realized gain on investments (29,821,669) (17,127,023)
TOTAL DIVIDENDS (29,932,448) (17,865,569)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 420,752,466 310,414,650
Dividends reinvested 29,932,448 17,865,378
Cost of shares redeemed (184,233,771) (198,226,018)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 266,451,143 130,054,010
TOTAL INCREASE (DECREASE) IN NET ASSETS 419,741,330 201,909,881
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 477,797,174 275,887,293
END OF PERIOD 897,538,504 477,797,174
Undistributed investment income--net 154,805 --
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 12,274,415 10,975,458
Shares issued for dividends reinvested 770,462 575,478
Shares redeemed (5,444,636) (7,226,680)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 7,600,241 4,324,256
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Year Ended December 31,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
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PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 31.08 24.97 20.09 17.31 13.23
Investment Operations:
Investment income--net .01(a) .05 .09 .05 .08
Net realized and unrealized
gain (loss) on investments 9.34 7.28 5.63 3.63 4.49
Total from Investment Operations 9.35 7.33 5.72 3.68 4.57
Distributions:
Dividends from investment income--net (.01) (.05) (.10) (.05) (.08)
Dividends from net realized gain
on investments (1.35) (1.17) (.74) (.85) (.41)
Total Distributions (1.36) (1.22) (.84) (.90) (.49)
Net asset value, end of period 39.07 31.08 24.97 20.09 17.31
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 30.08 29.38 28.44 21.23 34.56
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets .79 .80 .82 .95 1.27
Ratio of interest expense and
loan commitment fees to
average net assets .00(b) .00(b) .00(b) .01 --
Ratio of net investment income
to average net assets .04 .20 .46 .42 .70
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- .03 .06
Portfolio Turnover Rate 70.84 67.60 58.50 126.41 88.52
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Net Assets, end of period ($ x 1,000) 897,539 477,797 275,887 114,570 31,657
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
The Dreyfus Socially Responsible Growth Fund, Inc. (the "fund") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
diversified open-end management investment company. The fund' s investment
objective is to provide capital growth through equity investments in companies
that not only meet traditional investment standards but which also show evidence
that they conduct their business in a manner that contributes to the enhancement
of the quality of life in America. 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. Dreyfus is a
direct subsidiary of Mellon Bank, N.A. ("Mellon"), which is a wholly-owned
subsidiary of Mellon Financial Corporation. NCM Capital Management Group, Inc.
(" NCM" ) serves as the fund' s sub-investment adviser. Premier Mutual Fund
Services, Inc. is the distributor of the fund's shares, which are sold without a
sales charge.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(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. 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.
(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. Under the terms of the custody agreement, the fund received net
earnings credits of $4,527 during the period ended December 31, 1999, based on
available cash balances left on deposit. Interest earned under this arrangement
is included in interest income.
(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 of 1986, as amended (the "Code"). 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.
(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 Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
December 31, 1999, the fund did not borrow under the Facility.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions with Affiliates:
(A) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of .75 of 1% of the value of the
fund's average daily net assets and is payable monthly.
Pursuant to a Sub-Investment Advisory Agreement with NCM, the sub-investment
advisory fee is payable monthly by Dreyfus, and is based upon the value of the
fund's average daily net assets, computed at the following annual rates:
AVERAGE NET ASSETS
0 to $32 million . . . . . . . . . . . . . . . . . .10 of 1%
In excess of $32 million to $150 million . . . . . .15 of 1%
In excess of $150 million to $300 million. . . . . .20 of 1%
In excess of $300 million. . . . . . . . . . . . . .25 of 1%
(B) Under the Shareholder Services Plan, the fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of Dreyfus, 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 period ended December 31, 1999, the fund was
charged $7,800 pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended December 31, 1999, the fund was charged $380 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended December 31, 1999, the fund was
charged $51,412 pursuant to the custody agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500. The Chairman of the Board
receives an additional 25% of such compensation.
(D) During the period ended December 31, 1999, the fund incurred total brokerage
commissions of $957,671, of which $11,885 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended December 31, 1999, amounted to
$665,622,454 and $442,202,850, respectively.
At December 31, 1999, accumulated net unrealized appreciation on investments was
$272,241,877, consisting of $283,848,817 gross unrealized appreciation and
$11,606,940 gross unrealized depreciation.
At December 31, 1999, 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 Fund
REPORT OF 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, 1999, 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 auditing standards generally accepted
in the United States. 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 and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of December
31, 1999 and confirmation of securities not held by the custodian by
correspondence with others. 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, 1999, 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 accounting principles
generally accepted in the United States.
New York, New York
February 2, 2000
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $1.0924 per share as a
long-term capital gain distribution of the $1.3510 per share paid on December
29, 1999.
The fund also designates 69.73% of the ordinary dividends paid during the fiscal
year ended December 31, 1999 as qualifying for the corporate dividends received
deduction.
The Fund
NOTES
For More Information
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 22705
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-554-4611 or 516-338-3300
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Attn: Institutional Servicing
Printed on recycled paper.
50% post-consumer
Process chlorine free.
Vegetable-based ink.
Printed in U.S.A.
(c) 2000 Dreyfus Service Corporation 111AR9912
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE
INDEX
EXHIBIT A:
STANDARD
& POOR'S 500 THE DREYFUS
PERIOD COMPOSITE STOCK SOCIALLY RESPONSIBLE
PRICE INDEX* GROWTH FUND, INC.
10/7/93 10,000 10,000
12/31/93 10,232 10,735
12/31/94 10,366 10,895
12/31/95 14,257 14,661
12/31/96 17,528 17,774
12/31/97 23,374 22,827
12/31/98 30,059 29,534
12/31/99 36,381 38,418
*Source: Lipper Analytical Services, Inc.
