The Dreyfus Socially Responsible Growth Fund, Inc.
Investing in large-cap stocks that meet certain financial as well as social
criteria
PROSPECTUS May 1, 2000
As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
The Fund
The Dreyfus Socially Responsible Growth Fund, Inc.
Contents
The Fund
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Goal/Approach INSIDE COVER
Main Risks 1
Past Performance 1
Expenses 2
Management 3
Financial Highlights 4
Account Information
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Account Policies 5
Distributions and Taxes 5
For More Information
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INFORMATION ON THE FUND'S RECENT STRATEGIES AND HOLDINGS CAN BE FOUND IN THE
CURRENT ANNUAL/SEMIANNUAL REPORT. SEE BACK COVER.
Fund shares are offered only to separate accounts established by insurance
companies to fund variable annuity contracts ("VA contracts") and variable life
insurance policies ("VLI policies"). Individuals may not purchase shares
directly from, or place sell orders directly with, the fund. The VA contracts
and VLI policies are described in the separate prospectuses issued by the
participating insurance companies, as to which the fund assumes no
responsibility. Conflicts may arise between the interests of VA contract holders
and VLI policyholders. The board of directors will monitor events to identify
any material conflicts and, if such conflicts arise, determine what action, if
any, should be taken.
While the fund's investment objectives and policies may be similar to those of
other funds managed by the investment advisers, the fund's investment results
may be higher or lower than, and may not be comparable to, those of the other
funds.
GOAL/APPROACH
The fund seeks to provide capital growth, with current income as a secondary
goal. To pursue these goals, the fund invests primarily in the common stock of
companies that, in the opinion of the fund's management, meet traditional
investment standards and conduct their business in a manner that contributes to
the enhancement of the quality of life in America.
The fund's managers use a two-step process to select stocks for the fund. First,
NCM Capital Management Group, Inc. analyzes stocks according to traditional
financial criteria, generally looking for reasonably priced growth stocks. NCM
designates stocks meeting its financial criteria to Dreyfus. Dreyfus then
assesses whether a company enhances the quality of life in America by
considering its record in the areas of:
* protection and improvement of the environment and the proper use of our
natural resources
* occupational health and safety
* consumer protection and product purity
* equal employment opportunity
Consistent with its consumer protection screen, the fund will not purchase
shares in a company that manufactures tobacco products. If Dreyfus' assessment
does not reveal a negative pattern of conduct in these social areas, the
company's stock is eligible for purchase. If Dreyfus determines that a company
fails to meet the fund's social criteria, the stock will not be purchased, or if
it is already owned, it will be sold as soon as reasonably possible, consistent
with the best interests of the fund.
Concepts to understand
SOCIAL SCREENING: Dreyfus uses publicly available information, including reports
prepared by "watchdog" groups and governmental agencies, to assist it in the
social screening process. Because there are few generally accepted standards for
Dreyfus to use in its evaluation, Dreyfus will determine which research tools to
use. Dreyfus does not currently examine:
* corporate activities outside the U.S.
* nonbusiness activities
* secondary implications of corporate activities (such as the activities
of a client or customer of the company being evaluated)
MAIN RISKS
While stocks have historically been a leading choice of long-term investors,
they do fluctuate in price. The value of a shareholder's investment in the
fund will go up and down, which means that shareholders could lose money.
The fund's socially responsible investment criteria may limit the number of
investment opportunities available to the fund, and as a result, the fund may
produce more modest gains than funds that are not subject to such special
investment considerations.
To the extent the fund invests in midsize and small companies, the fund may
carry additional risks because their earnings tend to be less predictable, their
share prices more volatile and their securities less liquid than larger, more
established companies.
Under adverse market conditions, the fund could invest some or all of its assets
in certain fixed-income and money market securities of eligible companies and
domestic banks. Although the fund would do this to avoid losses, it could reduce
the benefit from any upswing in the market. During such periods, the fund may
not achieve its primary investment objective.
The fund may write (sell) covered call option contracts to hedge the fund's
portfolio and increase returns. There is the risk that such transactions
sometimes may reduce returns or increase volatility. At times, the fund may
engage in short-term trading, which could produce higher brokerage costs.
What the fund is -- and isn't
The fund is a mutual fund: a pooled investment that is professionally managed
and gives shareholders the opportunity to participate in financial markets. It
strives to reach its stated goals, although as with all mutual funds, it cannot
offer guaranteed results.
An investment in the fund is not a bank deposit. It is not insured or guaranteed
by the FDIC or any other government agency. It is not a complete investment
program. Shareholders could lose money in the fund, but shareholders also have
the potential to make money.
PAST PERFORMANCE
The bar chart and table below show some of the risks of investing in the fund.
The bar chart shows the changes in the fund's performance from year to year. The
table compares the fund's average annual total returns to those of the Standard
& Poor's 500 Composite Stock Price Index (S&P 500((reg.tm))), a broad measure of
stock performance. All performance figures reflect the reinvestment of dividends
and distributions. Of course, past performance is no guarantee of future
results.
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Year-by-year total return AS OF 12/31 EACH YEAR (%)
1.49 34.56 21.23 28.44 29.38 30.08
90 91 92 93 94 95 96 97 98 99
BEST QUARTER: Q4 '98 +23.87%
WORST QUARTER: Q3 '98 -11.77%
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Average annual total return AS OF 12/31/99
<TABLE>
Since
inception
1 Year 5 Years (10/7/93)
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<S> <C> <C> <C>
FUND 30.08% 28.66% 24.11%
S&P 500 21.03% 28.54% 22.95%*
* FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 9/30/93 IS USED AS THE
BEGINNING VALUE ON 10/7/93.
</TABLE>
Additional costs
Performance information reflects the fund's expenses only and does not reflect
the fees and charges imposed by participating insurance companies under their VA
contracts or VLI policies. Because these fees and charges will reduce total
return, VA contract holders and VLI policyholders should consider them when
evaluating and comparing the fund's performance. VA contract holders and VLI
policyholders should consult the prospectus for their contract or policy for
more information.
The Fund
<PAGE 1>
EXPENSES
Investors using this fund to fund a VA contract or a VLI policy will pay certain
fees and expenses in connection with the fund, which are described in the table
below. Annual fund operating expenses are paid out of fund assets, so their
effect is included in the fund's share price. As with the performance
information given previously, these figures do not reflect any fees or charges
imposed by participating insurance companies under their VA contracts or VLI
policies.
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Fee table
ANNUAL FUND OPERATING EXPENSES
% OF AVERAGE DAILY NET ASSETS
Management fees 0.75%
Shareholder services fee 0.00%
Other expenses 0.04%
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TOTAL 0.79%
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<TABLE>
Expense example
1 Year 3 Years 5 Years 10 Years
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<S> <C> <C> <C>
$81 $252 $439 $978
</TABLE>
This example shows what an investor could pay in expenses over time. It uses the
same hypothetical conditions other funds use in their prospectuses: $10,000
initial investment, 5% total return each year and no changes in expenses. The
figures shown would be the same whether investors sold their shares at the end
of a period or kept them. Because actual return and expenses will be different,
the example is for comparison only.
Concepts to understand
MANAGEMENT FEE: the fee paid to the investment adviser for managing the fund and
assisting in all aspects of the fund's operations.
SHAREHOLDER SERVICES FEE: a fee of up to 0.25% may be used to reimburse Dreyfus
Service Corporation for shareholder account service and maintenance.
OTHER EXPENSES: fees paid by the fund for miscellaneous items such as transfer
agency, custody, professional and registration fees.
<PAGE 2>
MANAGEMENT
The investment adviser for the fund is The Dreyfus Corporation, 200 Park Avenue,
New York, New York 10166. Founded in 1947, Dreyfus manages more than $127
billion in over 160 mutual fund portfolios. For the past fiscal year, the fund
paid Dreyfus an investment advisory fee at the annual rate of 0.75% of the
fund's average daily net assets. Dreyfus is the primary mutual fund business of
Mellon Financial Corporation, a global financial services company with
approximately $2.5 trillion of assets under management, administration or
custody, including approximately $485 billion under management. Mellon provides
wealth management, global investment services and a comprehensive array of
banking services for individuals, businesses and institutions. Mellon is
headquartered in Pittsburgh, Pennsylvania.
The Dreyfus asset management philosophy is based on the belief that discipline
and consistency are important to investment success. For each fund, Dreyfus
seeks to establish clear guidelines for portfolio management and to be
systematic in making decisions. This approach is designed to provide each fund
with a distinct, stable identity.
NCM, located at 103 West Main Street, Durham, North Carolina 27705-3638, serves
as the fund's sub-investment adviser. NCM was incorporated in 1986 and is one of
the nation's largest minority owned investment management firms. As of February
28, 2000, NCM managed or administered approximately $5.8 billion in assets.
Maceo K. Sloan serves as the fund's primary portfolio manager with respect to
selection of portfolio securities. Mr. Sloan has held his position with the fund
since August 1994 and has been employed by NCM since 1986.
Paul Hilton serves as the fund's primary portfolio manager with respect to its
areas of social concern. Mr. Hilton has been employed by Dreyfus since August
1998. From April 1997 through August 1998, he was a research analyst in the
social awareness investment program at Smith Barney Asset Management, a division
of Travelers Group. From May 1995 through April 1997, he served as a project
director for corporate social responsibility research at the Council on Economic
Priorities.
The fund, Dreyfus, NCM and Dreyfus Service Corporation (the fund's distributor)
each have adopted a code of ethics that permits its personnel, subject to such
code, to invest in securities, including securities that may be purchased or
held by the fund. The Dreyfus code of ethics restricts the personal securities
transactions of its employees, and requires portfolio managers and other
investment personnel to comply with the code's preclearance and disclosure
procedures. Its primary purpose is to ensure that personal trading by Dreyfus
employees does not disadvantage any Dreyfus-managed fund.
The Fund
<PAGE 3>
FINANCIAL HIGHLIGHTS
The following table describes the fund's performance for the fiscal periods
indicated. Certain information reflects financial results for a single fund
share. "Total return" shows how much an investment in the fund would have
increased (or decreased) during each period, assuming the investor had
reinvested all dividends and distributions. These figures have been
independently audited by Ernst & Young LLP, whose report, along with the fund's
financial statements, is included in the annual report, which is available upon
request. Keep in mind that fees and charges imposed by participating insurance
companies, which are not reflected in the table, would reduce the investment
returns that are shown.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C>
PER-SHARE DATA ($)
Net asset value, beginning of period 31.08 24.97 20.09 17.31 13.23
Investment operations: Investment income -- net .01(1) .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
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RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets (%) .79 .80 .82 .95 1.27
Ratio of interest expense and loan commitment fees to average net assets (%) .00(2) .00(2) .00(2) .01 --
Ratio of net investment income to average net assets (%) .04 .20 .46 .42 .70
Decrease reflected in above expense ratios due to actions by Dreyfus
and the sub-investment adviser (%) -- -- -- .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
(1) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(2) AMOUNT REPRESENTS LESS THAN .01%.
</TABLE>
<PAGE 4>
Account Information
ACCOUNT POLICIES
Buying/Selling shares
Fund shares may be purchased or sold (redeemed) by separate accounts of
participating insurance companies. VA contract holders and VLI policyholders
should consult the prospectus of the separate account of the participating
insurance company for more information about buying or selling fund shares.
The price for fund shares is the fund's NAV, which is generally calculated as of
the close of trading on the New York Stock Exchange (usually 4:00 p.m. Eastern
time) every day the exchange is open. Purchase and sale orders from separate
accounts received in proper form by the participating insurance company on a
given business day are priced at the NAV calculated on such day, provided that
the orders are received by the fund in proper form on the next business day. The
participating insurance company is responsible for properly transmitting
purchase and sale orders.
Wire purchase payments may be made if the bank account of the participating
insurance company is in a commercial bank that is a member of the Federal
Reserve System or any other bank having a correspondent bank in New York City.
Immediately available funds may be transmitted by wire to The Bank of New York
(DDA#8900118474/The Dreyfus Socially Responsible Growth Fund, Inc.), for
purchase of fund shares. The wire must include the fund account number (for new
accounts, a taxpayer identification number should be included instead), account
registration and dealer number, if applicable, of the participating insurance
company.
The fund's investments are generally valued based on market value, or where
market quotations are not readily available, based on fair value as determined
in good faith by the fund's board.
DISTRIBUTIONS AND TAXES
The fund usually pays dividends from its net investment income and distributes
any net capital gains that it has realized once a year.
Distributions will be reinvested in the fund unless it is instructed otherwise
by a participating insurance company.
Since the fund's shareholders are the participating insurance companies and
their separate accounts, the tax treatment of dividends and distributions will
depend on the tax status of the participating insurance company. Accordingly, no
discussion is included as to the federal income tax consequences to VA contract
holders and VLI policyholders. For this information, VA contract holders and VLI
policyholders should consult the prospectus of the separate account of the
participating insurance company or their tax advisers.
Participating insurance companies should consult their tax advisers about
federal, state and local tax consequences.
Who the shareholders are
The participating insurance companies and their separate accounts are the
shareholders of the fund. From time to time, a shareholder may own a substantial
number of fund shares. The sale of a large number of shares could hurt the
fund's net asset value per share (NAV).
Account Information
<PAGE 5>
For More Information
The Dreyfus Socially Responsible
Growth Fund, Inc.
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SEC file number: 811-7044
More information on this fund is available free upon request, including the
following:
Annual/Semiannual Report
Describes the fund's performance, lists portfolio holdings and contains a letter
from the fund's portfolio managers discussing recent market conditions,
economic trends and fund strategies that significantly affected the fund's
performance during the last fiscal year.
Statement of Additional Information (SAI)
Provides more details about the fund and its policies. A current SAI is on file
with the Securities and Exchange Commission (SEC) and is incorporated by
reference (is legally considered part of this prospectus).
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
ON THE INTERNET Text-only versions of certain fund documents can be viewed
online or downloaded from:
http://www.sec.gov
You can also obtain copies by visiting the SEC's Public Reference Room in
Washington, DC (for information, call 1-202-942-8090) or, after paying a
duplicating fee, by E-mail request to [email protected], or by writing to the
SEC's Public Reference Section, Washington, DC 20549-0102.
(c) 2000 Dreyfus Service Corporation
111P0500
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This prospectus is printed on recycled paper.
