UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03287
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New Alternatives Fund, Inc.
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(Exact name of registrant as specified in charter)
150 Broadhollow Road, Suite 306
Melville, New York 11747
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(Address of principal executive offices) (Zip code)
David J. Schoenwald, President
New Alternatives Fund, Inc.
150 Broadhollow Road, Suite 306
Melville, New York 11747
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(Name and address of agent for service)
Registrant's telephone number, including area code: 631-423-7373
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Date of fiscal year end: December 31
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Date of reporting period: December 31, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[GRAPHIC OMITTED]
NEW ALTERNATIVES FUND, INC.
A SOCIALLY RESPONSIBLE MUTUAL FUND EMPHASIZING
ALTERNATIVE ENERGY AND THE ENVIRONMENT
ANNUAL
FINANCIAL REPORT
DECEMBER 31, 2007
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution unless preceded or accompanied by a
prospectus for the Fund.
THE FUND 150 Broadhollow Road Melville, New York 11747 (800) 423-8383 (631) 423-7373
Shareholder's Services (PFPC) PO Box 9794 Providence, RI 02940 (800) 441-6580 (610) 382-7819
Overnight Address 101 Sabin Street Pawtucket, RI 02860
PFPC Distributors, Inc. 760 Moore Road King of Prussia, PA 19406
Recycled Paper
NEW ALTERNATIVES FUND, INC.
FINANCIAL HIGHLIGHTS
STATEMENT OF PER SHARE INCOME AND CAPITAL CHANGES
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
For the Years Ended December 31,
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2007 2006 2005 2004 2003
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Net asset value at beginning of year $ 43.91 $ 34.46 $ 33.48 $ 29.69 $ 24.21
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Investment income 0.73 0.63 0.55 0.59 0.58
Expenses (0.39) (0.45) (0.37) (0.42) (0.37)
-------- -------- ------- ------- -------
Net investment income 0.34 0.18 0.18 0.17 0.21
Net realized & unrealized gain on
investments 14.39 11.47 2.81 3.79 5.48
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Total from investment operations 14.73 11.65 2.99 3.96 5.69
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Dividends from net investment income (0.34) (0.18) (0.18) (0.17) (0.21)
Distributions from net realized gain (1.02) (2.02) (1.83) (0.00) (0.00)
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Total dividends and distributions (1.36) (2.20) (2.01) (0.17) (0.21)
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Net change in net asset value 13.37 9.45 0.98 3.79 5.48
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Net asset value as of end of the year $ 57.28 $ 43.91 $ 34.46 $ 33.48 $ 29.69
======== ======== ======= ======= =======
Total return
(Sales load not reflected) 33.53% 33.83% 8.94% 13.34% 23.50%
Net assets, end of year (in thousands) $301,650 $117,035 $64,765 $52,615 $44,901
Ratio of operating expense to average net assets 0.95% 1.25% 1.28% 1.32% 1.39%
Ratio of net investment income to
average net assets 0.82% 0.51% 0.65% 0.65% 0.82%
Portfolio turnover 14.24% 39.83% 52.09% 50.05% 32.70%
Number of shares outstanding at end of year 5,266,358 2,665,296 1,879,695 1,565,049 1,512,199
The accompanying notes are an integral part of these financial statements.
2
NEW ALTERNATIVES FUND, INC.
MANAGEMENT'S DISCUSSION OF FINANCIAL PERFORMANCE
FOR THE YEAR 2007
FUND PERFORMANCE: The New Alternatives Fund (the "Fund") was up 33.53% for the
year including a long term capital gain distribution of $1.02 and a $0.34 income
dividend.
FACTORS AFFECTING THE FUND: Factors affecting the Fund's portfolio, in addition
to the relative success of companies in the portfolio, include energy prices,
energy and environmental policies in the U.S. and abroad, interest rates, and
the value of the U.S. dollar relative to foreign currencies. The Fund's holdings
include shares of companies denominated in eleven different currencies.
Oil prices increased from $61 a barrel at the beginning of the year to close at
$95.98 at year end.
Political figures, in the U.S. and abroad expressed concern about energy
dependency and climate change. Former Vice President Al Gore was awarded the
Nobel Prize for his work bringing increased attention to the issue of climate
change.
Investor interest in "Clean Energy" was intense with the amount of new money
invested in the sector growing to $117.2 billion. This included $18.9 billion
raised by clean energy companies on the public markets, $54.5 billion in clean
asset financing, and $1.8 billion in early stage Venture Capital enterprises
according to analysts at New Energy Finance, a U.K. based firm focused on clean
energy.
Given the rapid growth of alternate energy companies and strong investor demand
for them, valuation of listed companies was challenging.
The Fund's net assets increased in 2007 from approximately $117 million to
approximately $300 million.
U.S. Treasury Bill short term interest rates ended the year at about 3.37% down
from 4.7% at the beginning of the year. Concern in credit markets about subprime
debt held by banks and other lenders led to the Federal Reserve Bank to add
reserves to the banking system and to reduce short term interest rates.
PORTFOLIO HOLDINGS AND CHANGES: At year end, approximately 65% of the Fund's net
assets were invested in foreign companies. The Manager found there were more
companies abroad which were further advanced in the profitable development of
alternate energy support of the environment than those in the U.S. About 11% of
net assets were cash and cash equivalents.
The largest concentrations of Fund holdings were in companies producing solar
apparatus, wind turbines, renewable energy power producers and companies whose
products conserve energy.
3
The Fund's performance was boosted by its foreign stock holdings whose value was
supplemented by the increase in the value of foreign currencies versus the
American dollar. In 2007 the U.S. dollar declined 9.6% against the Euro, down
6.4% against the Yen, 14.8% against the Canadian dollar and 16.7% against the
Brazilian real.
RENEWABLE ENERGY:
WIND: The Fund's wind turbine holdings include Vestas Wind Systems (Denmark),
Gamesa (Spain) and Nordex (Germany). During 2007 the global wind energy markets
saw a record year with 20 billion watts (GW) of new installations, including
5,244 megawatts (MW) of wind power capacity in the U.S. The market for wind
turbines was strong globally and each of the Fund's turbine investments serves
international markets. The performance of Vestas was the strongest among the
turbine manufacturers in the Fund's portfolio. Issues facing the wind turbine
manufacturers include shortages of component parts, and new competitors in China
and India.
The share prices of companies which generate electricity using wind turbines
and/or small hydroelectric equipment was mixed. Acciona (Spain), which
manufactures wind turbines as well as producing wind and solar power, acquired
Spanish utility Endessa. The takeover became a controversial issue for
regulators in Spain and the European Union.
Brookfield Asset Management, Trust Power, Canadian Hydro Developers and EDF
Energies Nouvelles had mixed success.
SOLAR: There was strong performance by a number of the Fund's holdings in pure
play solar energy companies with the exception of one Fund holding. The Fund's
holdings included Q-Cells, Solarworld, and Solon and Conergy in Germany. The
Fund's worst solar disappointment was that its investment in Conergy, the
largest solar PV integrator and systems wholesaler in Germany. Conergy announced
late in the year that it was unprofitable and running out of money after having
earlier advised investors otherwise.
Renewable Energy Corp. in Norway, an integrated solar cell company best known
for production of solar silicon for itself and other solar cell manufacturers
performed well. The more diversified companies with solar portfolios, Sharp and
Kyocera, both based in Japan, had modest stock performance.
GEOTHERMAL: The Fund's two geothermal energy related holdings, Ormat
Technologies and WFI Industries (Water-furnace) performed reasonably well.
BIO-FUEL. The Fund's portfolio holdings at year end related to the ethanol
market were Abengoa (Spain) and SunOpta (Canada). Abengoa is also involved in
solar thermal projects and international water projects. SunOpta's greatest
source of revenue is organic natural foods (especially soy products), but they
have also developed a process used to produce ethanol from cellulosic materials.
4
There was negative investor sentiment toward biofuel related companies as the
raw material for ethanol (mostly corn in the U.S.) competes with the need for
food. The price of corn increased, partially because of the demand from ethanol
producers, and consequently, the profits from producing ethanol were pressured.
We sold a promising ethanol company which used sugarcane rather than corn as the
feedstock. The company, Cosan (Brazil), restructured itself in a manner which
appeared to benefit the principals of the company to the detriment of its
shareholders.
FUEL CELLS AND HYDROGEN: The Fund owns shares of one pure play fuel cell
company, Fuel Cell Energy (stationery fuel cells for distributed energy). The
share price of Fuel Cell Energy increased with expectations for
commercialization of their generators and reduction in the cost of the units.
HYBRID AUTOMOBILE COMPONENTS: The Fund's portfolio includes two companies with a
connection to automobiles and hybrid autos. The companies are Denso (Japan)
which manufactures components for the Toyota Prius and Johnson Controls. Each
company had increased earnings. Johnson Controls, a U.S. company which
manufactures energy control equipment, is also manufacturing Lithium-ion
batteries for use in hybrid autos batteries.
ENERGY CONSERVATION: The Fund owns shares of eight companies (approximately 13%
of net assets) which have roles in conserving energy.
Two companies manufacture insulation, St. Gobain (France) and Owens Corning. Two
of the Fund's holdings manufacture electrical apparatus which conserves
electricity, Schneider Electric and Johnson Controls. The other holdings are in
diverse fields, Baldor Electric (efficient electric motors), Koninklijke
Phillips, which manufactures compact fluorescent bulbs and LED (lighting),
Stantec (architecture) and Telvent (Information technology).
Unlike the investor interest seen in 2007 for producers of solar and wind power
apparatus, there was fear among investors as the year progressed that an
economic recession would challenge the profitability of companies whose products
were related to construction.
NATURAL GAS UTILITIES: The Fund increased its holdings in its two natural gas
utilities. The two natural gas utility holdings, Northwestern Natural Gas and
South Jersey Industries, both are in jurisdictions where regulators support
energy conservation. These utilities provide income and stability to the
portfolio. South Jersey Industries has a division which taps gas from land fills
another which uses cogeneration to produce electricity.
WATER: The Fund owned shares of five companies providing their customers with
water, or water related apparatus. The U.K. based water utilities, Kelda and
Pennon, and the Brazilian water and
5
sewerage utility, Campania Saneamento de Basico, produced increased share
performance. The water related equipment manufacturers include Badger Meter,
Befesa (Spain), and Hyflux (Singapore), which provides water purification
apparatus and services in China and Southeast Asia.
NATURAL FOOD: The Fund's natural food companies include distribution company
United Natural Food, soy product and distribution company SunOpta, and retailer
Whole Foods Market. The share price performance of United Natural Foods and
Whole Foods Market was poor, while SunOpta's share price increased.
CASH AND TREASURY HOLDINGS: We ended the year with approximately 11% of net
assets in cash and U.S. Treasury Bills. This was a lower percentage of net
assets than the prior year, but a larger amount in absolute terms.
INCOME FROM DIVIDENDS AND INTEREST/EXPENSES: The Fund's net ordinary investment
income dividend per share increased from $0.18 to $0.34. Both investment
dividend and interest income and Fund operating expenses increased in 2007.
Investment income increased in absolute and percentage terms. Interest income
increased by $649,000 or 79.3%, and divided income (net of any foreign taxes)
increased by 1,453,000 or 181%.
On the expense side, the Fund's cost of operations increased substantially over
the year as a result of an increase in Fund assets. Amounts paid to PFPC in its
role as accountant, custodian and regulatory administrator, and to the
Investment Advisor, Accrued Equities Inc., are largely based on net assets. In
the case of PFPC in its role as Transfer Agent, costs increased based on the
additional number of shareholder accounts established during the year. The
amount paid to independent counsel and to independent directors increased. The
Fund also retained a new chief compliance officer. Total expenses increased by
$835,000 but the Fund's operating expense ratio declined from 1.25% to 0.95%.
REALIZED AND UNREALIZED CAPITAL GAIN/LOSS: The Fund's net realized capital gain
dividend per share was $1.02 per share in 2007 compared to $2.02 per share in
the prior year, and reflected both a lower portfolio turnover ratio and a larger
number of shares. The Fund ended the year with net unrealized appreciation of
almost $72.5 million.
STRATEGY: The Fund's investment objective continues to be to seek long-term
capital appreciation by investing in clean energy, alternate or renewable energy
and environmentally oriented investments - with concern for socially responsible
behavior in the U.S. and globally.
Please refer to page 10 for detailed information on the portfolio's holdings.
6
NEW ALTERNATIVES FUND GROWTH OF $10,000 VS. THE S&P 500(R) INDEX AND THE RUSSELL
2000(R) INDEX
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AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/07
1 Year 5 Year 10 Year
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New Alternatives Fund (N.A.V.) 33.53% 22.20% 9.55%
New Alternatives Fund (Load) 27.19% 21.01% 9.02%
S&P 500(R) 5.49% 12.82% 5.91%
Russell 2000(R) Index (1.57)% 16.25% 7.08%
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[GRAHIC OMITTED]
EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS:
NEW ALTERNATIVE NEW ALTERNATIVE S&P RUSSELL
FUND - NO LOAD FUND - LOAD VALUE 2000
--------------- --------------- ---------- ----------
12/31/97 $10,000.00 $10,000.00 $10,000.00 $10,000.00
1/31/98 9,784.85 9,319.86 10,721.00 10,739.00
2/28/98 10,695.40 10,187.10 11,269.90 11,181.50
3/31/98 11,153.70 10,623.69 11,383.70 11,242.90
5/31/98 10,336.77 9,845.55 11,187.90 10,637.00
6/30/98 10,224.51 9,738.63 11,642.20 10,659.30
7/31/98 9,469.91 9,019.89 11,517.60 9,795.89
8/31/98 7,870.29 7,496.28 9,852.16 7,893.52
9/30/98 8,403.50 8,004.15 10,483.70 8,511.59
10/31/98 8,634.24 8,223.93 11,336.00 8,858.86
11/30/98 8,861.87 8,440.74 12,023.00 9,323.06
12/31/98 8,998.52 8,570.90 12,715.50 9,900.16
1/31/99 8,727.37 8,312.64 13,247.00 10,031.80
2/28/99 8,509.81 8,105.42 12,835.00 9,219.26
3/31/99 8,645.39 8,234.56 13,348.40 9,363.08
4/30/99 9,386.33 8,940.29 13,865.00 10,202.00
5/31/99 9,679.56 9,219.58 13,537.80 10,351.00
6/30/99 9,991.70 9,516.89 14,289.10 10,818.80
7/31/99 10,114.70 9,634.01 13,843.30 10,522.40
8/31/99 9,843.51 9,375.74 13,774.10 10,133.10
9/30/99 9,777.30 9,312.68 13,396.70 10,135.10
10/31/99 9,518.76 9,066.42 14,244.70 10,176.60
11/30/99 9,449.39 9,000.35 14,533.90 10,784.20
12/31/99 9,760.30 9,296.48 15,389.90 12,005.00
1/31/00 11,533.06 10,984.99 14,617.30 11,811.70
2/29/00 12,791.58 12,183.71 14,341.10 13,761.80
3/31/00 13,065.61 12,444.72 15,743.60 12,854.90
4/30/00 11,786.79 11,226.67 15,269.70 12,081.00
5/31/00 11,272.56 10,736.87 14,956.70 11,376.70
6/30/00 12,862.62 12,251.37 15,326.10 12,368.70
7/31/00 12,940.43 12,325.49 15,087.00 11,970.50
8/31/00 15,004.14 14,291.12 16,024.00 12,883.80
9/30/00 16,983.26 16,176.20 15,177.90 12,505.00
10/31/00 15,599.57 14,858.26 15,114.10 11,947.30
11/30/00 13,380.24 12,744.39 13,923.20 10,720.30
12/31/00 14,811.30 14,107.47 13,991.40 11,641.20
1/31/01 15,223.82 14,500.39 14,488.10 12,247.70
2/28/01 13,584.50 12,938.97 13,166.80 11,444.20
3/31/01 13,982.67 13,318.22 12,332.00 10,884.60
4/30/01 15,607.65 14,865.97 13,290.20 11,735.80
5/31/01 16,511.61 15,726.98 13,379.20 12,024.50
6/30/01 14,700.10 14,001.55 13,054.10 12,439.30
7/31/01 13,326.23 12,692.87 12,925.50 11,766.40
8/31/01 12,447.38 11,855.88 12,116.40 11,386.30
9/30/01 11,633.10 11,080.29 11,137.40 9,853.73
10/31/01 12,343.35 11,756.80 11,350.10 10,430.20
11/30/01 12,433.03 11,842.21 12,220.70 11,237.50
12/31/01 12,971.20 12,354.82 12,328.20 11,930.80
1/31/02 12,287.32 11,703.44 12,148.20 11,806.70
2/28/02 11,924.80 11,358.20 11,913.80 11,483.20
3/31/02 13,135.60 12,511.40 12,361.70 12,406.50
4/30/02 12,862.80 12,251.60 11,612.20 12,519.40
5/31/02 11,995.80 11,425.80 11,526.30 11,963.50
6/30/02 10,822.40 10,308.10 10,705.60 11,370.10
7/31/02 9,252.86 8,813.17 9,871.66 9,653.24
8/31/02 9,155.70 8,720.63 9,936.82 9,629.11
9/30/02 8,636.25 8,225.87 8,856.69 8,937.74
10/31/02 8,882.90 8,460.79 9,636.07 9,224.64
11/30/02 9,559.30 9,105.05 10,203.60 10,047.50
12/31/02 9,139.40 8,705.09 9,603.67 9,487.83
1/31/03 8,773.22 8,356.31 9,352.05 9,225.02
2/28/03 8,712.82 8,298.78 9,211.77 8,946.42
3/31/03 8,644.86 8,234.06 9,301.12 9,061.83
4/30/03 9,173.37 8,737.45 10,067.50 9,920.89
5/31/03 9,743.40 9,280.40 10,598.10 10,985.40
6/30/03 9,803.80 9,337.93 10,733.80 11,184.20
7/31/03 9,807.58 9,341.52 10,922.70 11,884.40
8/31/03 10,253.00 9,765.81 11,135.70 12,428.70
9/30/03 10,355.00 9,862.90 11,017.60 12,198.80
10/31/03 11,113.80 10,585.60 11,641.20 13,223.40
11/30/03 11,072.20 10,546.10 11,743.70 13,692.90
12/31/03 11,288.30 10,751.80 12,359.00 13,970.80
1/31/04 11,482.20 10,936.50 12,585.90 14,577.20
2/29/04 11,668.50 11,114.00 12,760.80 14,708.40
3/31/04 11,626.60 11,074.20 12,568.10 14,845.20
4/30/04 11,539.20 10,990.90 12,370.80 14,088.00
5/31/04 11,581.00 11,030.70 12,540.30 14,312.00
6/30/04 11,736.90 11,179.20 12,784.20 14,914.60
7/31/04 11,356.70 10,817.00 12,361.00 13,910.80
8/31/04 11,364.30 10,824.30 12,410.50 13,839.90
9/30/04 11,729.30 11,171.90 12,544.50 14,489.00
10/31/04 11,900.40 11,334.90 12,736.50 14,774.40
11/30/04 12,436.50 11,845.50 13,252.30 16,055.40
12/31/04 12,792.00 12,184.10 13,702.90 16,530.60
1/31/05 12,711.70 12,107.70 13,368.50 15,841.30
2/28/05 12,963.90 12,347.90 13,649.30 16,109.00
3/31/05 12,631.50 12,031.30 13,407.70 15,648.30
4/30/05 12,505.40 11,911.20 13,152.90 14,751.60
5/31/05 13,105.30 12,482.50 13,571.20 15,717.90
6/30/05 13,525.60 12,882.80 13,590.20 16,324.60
7/31/05 13,831.20 13,174.00 14,095.70 17,359.60
8/31/05 14,060.50 13,392.30 13,967.50 17,038.40
9/30/05 14,255.30 13,577.90 14,080.60 17,091.20
10/31/05 13,498.80 12,857.40 13,845.50 16,561.40
11/30/05 13,888.50 13,228.60 14,368.80 17,364.60
12/31/05 13,934.90 13,272.80 14,373.10 17,284.70
1/31/06 15,738.50 14,990.60 14,754.00 18,835.20
2/28/06 16,341.00 15,564.50 14,793.80 18,782.40
3/31/06 16,797.90 15,999.80 14,978.80 19,693.40
4/30/06 17,554.10 16,720.00 15,179.50 19,689.40
5/31/06 16,769.60 15,972.80 14,742.30 18,582.90
6/30/06 16,563.40 15,776.40 14,763.00 18,701.80
7/31/06 16,219.70 15,449.00 14,854.50 18,094.00
8/31/06 16,688.80 15,895.80 15,208.00 18,629.60
9/30/06 16,607.90 15,818.70 15,600.40 18,784.20
10/31/06 17,182.10 16,365.70 16,109.00 19,866.20
11/30/06 18,176.90 17,313.20 16,415.00 20,388.70
12/31/06 18,648.30 17,762.20 16,644.80 20,456.00
1/31/07 19,484.90 18,559.10 16,896.50 20,797.60
2/28/07 19,811.90 18,870.50 16,566.00 20,633.30
3/31/07 20,865.20 19,873.70 16,751.20 20,854.10
4/30/07 21,795.20 20,759.60 17,493.30 21,229.40
5/31/07 22,920.70 21,831.60 18,103.80 22,099.80
6/30/07 23,366.60 22,256.30 17,803.10 21,777.20
7/31/07 23,612.90 22,490.90 17,251.20 20,287.60
8/31/07 23,120.30 22,021.70 17,509.80 20,748.20
9/30/07 24,543.00 23,376.80 18,164.70 21,105.00
10/31/07 25,838.30 24,610.60 18,453.70 21,710.70
11/30/07 24,946.50 23,761.10 17,682.10 20,151.90
12/31/07 24,901.20 23,718.00 17,559.40 20,139.80
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER.
PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END MAY BE OBTAINED BY CALLING
800-423-8383. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. THE NEW ALTERNATIVES FUND (N.A.V. AND LOAD) RETURNS ASSUME
REINVESTMENT OF ALL DISTRIBUTIONS. THE NEW ALTERNATIVES (LOAD) RETURN REFLECTS
THE MAXIMUM SALES CHARGE OF 4.75%. THE GRAPH AND TABLE DO NOT REFLECT THE
DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE
REDEMPTION OF FUND SHARES.
The S&P 500(R) and the Russell 2000(R) indices are unmanaged stock market
indices and do not reflect any asset-based charges for investment management or
transaction expenses.
7
NEW ALTERNATIVES FUND, INC.
FUND EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs and (2) ongoing costs, including management fees, and other Fund expenses.
This example is intended to help you understand your ongoing costs (in dollars)
of investing in the Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire six months ended December 31, 2007.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expense that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Six Months
Ended December 31, 2007" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Note: The Fund's Transfer Agent, PFPC Inc. charges an annual IRA maintenance fee
of $15 for IRA accounts. That fee is not reflected in the accompanying tables.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs. Therefore, the
second line of the table is useful in comparing ongoing costs only, and will not
help you determine the relative total costs of owning different funds. In
addition, if transactional costs were included, your costs would have been
higher.
NEW ALTERNATIVES FUND, INC.
- ----------------------------------------------------------------------------------------------
Beginning Ending Expenses Paid During
Account Value Account Value Six Months Ended
July 1, 2007 December 31, 2007 December 31, 2007*
- ----------------------------------------------------------------------------------------------
Actual $1,000.00 $1,065.60 $4.95
Hypothetical
(assumes 5% return before expenses) $1,000.00 $1,020.36 $4.85
<FN>
* Expenses are equal to the Fund's annualized expense ratio for the six-month period (0.95%),
multiplied by the average account value over the period, multiplied by the number of days (184)
in the most recent fiscal half year, then divided by the days in the year (365) to reflect the
half year period. The Fund's ending account value on the first line in the table is based on
its actual total return of 6.56% for the six-month period of July 1, 2007 to December 31, 2007.
</FN>
8
NEW ALTERNATIVES FUND, INC.
PORTFOLIO HOLDINGS SUMMARY
DECEMBER 31, 2007
SECTOR DIVERSIFICATION % OF NET ASSETS VALUE
--------------- ------------
Alternate Energy:
Solar 21.17% $ 63,855,355
Wind Turbines 11.35 34,238,060
Renewable Energy Power Producers & Developers 10.95 33,045,650
Wind & Hydro Power Producers 6.09 18,361,124
Geothermal 4.00 12,055,751
Fuel Cells 0.54 1,638,664
Hydro Power Equipment 0.30 909,031
Ocean Energy/Waves 0.15 447,238
Energy Conservation 17.16 51,756,829
Water 6.13 18,480,000
Natural Gas Distribution 4.88 14,736,000
Natural Foods 3.33 10,047,500
Recycling 0.98 2,953,419
Convertible Bonds 0.12 358,167
Short-Term Investments 11.42 34,443,301
Other Assets in Excess of Liabilities 1.43 4,323,670
------ ------------
100.00% $301,649,759
====== ============
TOP TEN COMMON STOCK PORTFOLIO HOLDINGS
DECEMBER 31, 2007
NAME % OF NET ASSETS
---- ---------------
Vestas Wind Systems (Denmark)......... 5.02%
Q-Cells (Germany)..................... 4.73
GamesaCorporacionTechologica (Spain).. 4.26
Renewable Energy Corp. AS (Norway).... 4.21
Acciona (Spain)....................... 4.20
Ormat Technologies, Inc............... 3.65
Schneider Electric SA (France)........ 3.37
Abengoa (Spain)....................... 3.22
Orkla ASA (Norway).................... 3.21
EDF Energies Nouvelles (France)....... 3.12
-----
Total top ten......................... 38.99%
=====
9
NEW ALTERNATIVES FUND, INC.
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2007
SHARES VALUE
------- ------------
COMMON STOCKS - 87.03%
ALTERNATE ENERGY - 54.55%
SOLAR - 21.17%
Applied Materials, Inc. 15,000 $ 266,400
Conergy (Germany) 125,000 4,568,914
Kyocera Corp. (ADR) (Japan) 25,000 2,180,500
Orkla ASA (Norway) 500,000 9,691,796
Q-Cells (Germany)* 100,000 14,269,632
Renewable Energy Corp. AS (Norway)* 250,000 12,707,533
Sharp Corp. Ltd. (ADR) (Japan) 175,000 3,148,635
Solar Millennium (Germany)* 125,000 6,286,825
Solarworld (Germany) 150,000 9,156,103
Solon AG Fuer Solartechnik (Germany)* 15,000 1,579,017
------------
63,855,355
------------
WIND TURBINES - 11.35%
GamesaCorporacionTechologica (Spain) 275,000 12,858,020
Nordex (Germany)* 135,000 6,227,247
Vestas Wind Systems (Denmark)* 140,000 15,152,793
------------
34,238,060
------------
RENEWABLE ENERGY POWER
PRODUCERS & DEVELOPERS - 10.95%
Abengoa (Spain) 275,000 9,721,918
Acciona (Spain) 40,000 12,681,843
Eaga PLC (United Kingdom) 20,000 67,083
EDF Energies Nouvelles (France) 135,000 9,416,860
Electrificaciones del Norte (Spain) 20,000 1,157,946
------------
33,045,650
------------
WIND & HYDRO POWER PRODUCERS - 6.09%
Brookfield Asset Management, Inc., Class A (Canada) 250,000 8,917,500
Canadian Hydro Developers, Inc. (Canada)* 500,000 3,242,312
Hafslund ASA, Class A (Norway) 100,000 2,873,008
TrustPower Ltd. (New Zealand) 500,000 3,328,304
------------
18,361,124
------------
The accompanying notes are an integral part of these financial statements.
10
NEW ALTERNATIVES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2007
SHARES VALUE
------- ------------
COMMON STOCKS (CONTINUED)
GEOTHERMAL - 4.00%
Ormat Technologies, Inc. 200,000 $ 11,002,000
WFI Industries Ltd. (Canada) 40,000 1,053,751
------------
12,055,751
------------
FUEL CELLS - 0.54%
FuelCell Energy, Inc.* 150,000 1,488,000
Tognum AG (Germany)* 5,000 150,664
------------
1,638,664
------------
HYDRO POWER EQUIPMENT - 0.30%
Andritz AG (Austria) 15,000 909,031
------------
OCEAN ENERGY/WAVES - 0.15%
Ocean Power Technologies, Inc. (United Kingdom)* 15,000 243,450
Renewable Energy Holdings PLC (United Kingdom)* 175,000 203,788
------------
447,238
------------
TOTAL ALTERNATE ENERGY 164,550,873
------------
ENERGY CONSERVATION - 17.16%
Baldor Electric Co. 200,000 6,732,000
Compagnie de Saint-Gobain (France) 80,000 7,543,021
Denso Corp. (Japan) 15,000 614,958
Itron, Inc. 15,000 1,439,550
Johnson Controls, Inc. 250,000 9,010,000
Koninklijke Philips Electronics 175,000 7,481,250
Owens Corning, Inc.* 225,000 4,549,500
Schneider Electric SA (France) 75,000 10,162,750
Stantec, Inc. (Canada)* 50,000 1,951,000
Telvent GIT (Spain) 80,000 2,272,800
------------
51,756,829
------------
WATER - 6.13%
Badger Meter, Inc. 100,000 4,495,000
Befesa Medio Ambiente (Spain)* 15,000 444,976
The accompanying notes are an integral part of these financial statements.
11
NEW ALTERNATIVES FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2007
SHARES/PAR VALUE
---------- ------------
COMMON STOCKS (CONTINUED)
WATER (CONTINUED)
CIA SaneamentoBasico (Brazil) 150,000 $ 7,050,000
Gorman-Rupp Co. (The) 43,750 1,365,000
Hyflux Ltd. (Singapore) 450,000 997,256
Kelda Group PLC, Class A (United Kingdom) 125,000 2,699,758
Kelda Group PLC, Class B (United Kingdom) 100,000 421,013
Pennon Group PLC (United Kingdom) 75,000 1,006,997
------------
18,480,000
------------
NATURAL GAS DISTRIBUTION - 4.88%
Northwest Natural Gas Co. 110,000 5,352,600
South Jersey Industries, Inc. 260,000 9,383,400
------------
14,736,000
------------
NATURAL FOODS - 3.33%
SunOpta, Inc.* 150,000 2,002,500
United Natural Foods, Inc.* 125,000 3,965,000
Whole Foods Market, Inc. 100,000 4,080,000
------------
10,047,500
------------
RECYCLING - 0.98%
Commercial Metals Co. 35,000 1,030,750
Caraustar Industries, Inc.* 50,000 154,500
Sims Group Ltd. (Australia) 75,000 1,768,169
------------
2,953,419
------------
TOTAL COMMON STOCK (COST $190,031,441) 262,524,621
------------
CONVERTIBLE BONDS - 0.12%
Solon AG (Germany)
1.375% due 12/06/12 $245,000 358,167
------------
TOTAL CONVERTIBLE BONDS (COST $357,909) 358,167
------------
TOTAL LONG-TERM INVESTMENTS (COST $190,389,350) 262,882,788
------------
The accompanying notes are an integral part of these financial statements.
12
NEW ALTERNATIVES FUND, INC.
SCHEDULE OF INVESTMENTS (CONCLUDED)
DECEMBER 31, 2007
PAR
(000's) VALUE
------- ------------
SHORT-TERM INVESTMENTS - 11.42%
U.S. TREASURY BILLS - 11.25%
3.04% due 01/03/08 $5,000 $ 4,999,156
2.75% due 01/10/08 6,500 6,495,531
2.59% due 01/17/08 3,000 2,996,541
2.82% due 01/24/08 5,000 4,990,992
2.53% due 01/31/08 6,500 6,486,296
2.65% due 02/07/08 4,000 3,989,097
2.88% due 02/14/08 4,000 3,985,944
------------
TOTAL U.S. TREASURY BILLS (COST $33,943,557) 33,943,557
------------
CERTIFICATES OF DEPOSIT - 0.17%
SOCIALLY CONCERNED BANKS
Alternatives Federal Credit Union
1.01% due 01/31/08 100 100,000
Carver Federal Savings Bank
5.37% due 01/31/08 100 100,000
Chittenden Bank (People's United Bank)
1.93% due 12/03/08 100 100,000
Self-Help Credit Union
4.18% due 02/10/08 100 100,000
South Shore Bank
3.30% due 01/05/08 100 99,744
------------
TOTAL CERTIFICATES OF DEPOSIT (COST $499,744) 499,744
------------
TOTAL SHORT-TERM INVESTMENTS (COST $34,443,301) 34,443,301
------------
TOTAL INVESTMENTS - 98.57%
(TOTAL COST $224,832,651) 297,326,089
------------
Other Assets in Excess of Liabilities - 1.43% 4,323,670
------------
NET ASSETS - 100.00% $301,649,759
============
- ----------------
*Non-income producing security.
ADR - American Depositary Receipt
The accompanying notes are an integral part of these financial statements.
13
NEW ALTERNATIVES FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2007
ASSETS
------
Investment securities at value (cost: $190,389,350) (Notes 2A and 6)...................................... $262,882,788
U.S. Treasury Bills at amortized cost..................................................................... 33,943,557
Savings and Certificates of Deposit at amortized cost..................................................... 499,744
Cash...................................................................................................... 3,398,284
Receivables:
Investment securities sold............................................................................. 529,961
Capital stock subscribed............................................................................... 3,670,613
Dividends.............................................................................................. 268,227
Interest............................................................................................... 184
Prepaid insurance & registration fees..................................................................... 33,227
------------
Total Assets 305,226,585
------------
LIABILITIES
-----------
Payables:
Investment securities purchased........................................................................ 1,127,863
Capital stock reacquired............................................................................... 377,972
Distributions.......................................................................................... 1,852,858
Management fees........................................................................................ 125,203
Accrued expenses and other liabilities................................................................. 92,930
------------
Total Liabilities 3,576,826
------------
NET ASSETS $301,649,759
============
ANALYSIS OF NET ASSETS
----------------------
Net capital paid in shares of capital stock............................................................... $230,343,303
Undistributed net realized loss on investments............................................................ (1,183,418)
Net unrealized depreciation of translation of other assets and liabilities in foreign currency ........... (3,564)
Net unrealized appreciation on investments................................................................ 72,493,438
------------
NET ASSETS $301,649,759
============
Net asset value and redemption price per share ($301,649,759/5,266,358 shares of
outstanding capital stock, 8 million shares authorized)................................................... $ 57.28
============
Maximum offering price per share (100/95.25 of $57.28).................................................... $ 60.14
============
The accompanying notes are an integral part of these financial statements.
14
NEW ALTERNATIVES FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2007
INVESTMENT INCOME:
Dividends (net of $195,616 foreign taxes withheld)........................................... $ 2,254,140
Interest..................................................................................... 1,467,863
-----------
Total Income................................................................................. 3,722,003
-----------
EXPENSES:
Management fee (Note 4)...................................................................... 1,099,396
Transfer agent fees.......................................................................... 268,000
Administration and accounting fees........................................................... 239,391
Custodian fees............................................................................... 111,753
Legal fees................................................................................... 99,000
Printing and shareholder report fees......................................................... 72,000
Registration fees............................................................................ 35,324
Directors' fees.............................................................................. 16,500
Compliance service fees...................................................................... 15,000
Audit fees................................................................................... 11,000
Insurance fees............................................................................... 9,660
Other expenses............................................................................... 6,500
-----------
Total Expenses............................................................................... 1,983,524
-----------
NET INVESTMENT INCOME........................................................................ 1,738,479
-----------
NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS AND FOREIGN CURRENCY RELATED
TRANSACTIONS:
REALIZED GAIN FROM INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS (NOTES 2B & 6):
Net realized gain from investments........................................................... 4,567,375
Net realized gain from foreign currency transactions......................................... 7,445
-----------
Net Realized Gain............................................................................ 4,574,820
-----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS
AND FOREIGN CURRENCY RELATED TRANSACTIONS:
Net change in unrealized appreciation on investments......................................... 45,589,541
Net change in unrealized depreciation on foreign currency translations....................... (3,227)
-----------
Net change in unrealized appreciation (depreciation) for the period.......................... 45,586,314
-----------
Net Realized and Unrealized Gain on Investments and foreign currency related transactions ... 50,161,134
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......................................... $51,899,613
===========
The accompanying notes are an integral part of these financial statements.
15
NEW ALTERNATIVES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 2007 DECEMBER 31, 2006
----------------- -----------------
INVESTMENT ACTIVITIES:
Net investment income ........................................................ $ 1,738,479 $ 470,945
Net realized gain from investments and foreign currency translations ......... 4,574,820 5,110,105
Net change in unrealized appreciation on investments and
foreign currency translations ............................................. 45,586,314 19,395,248
------------ ------------
Net increase in net assets derived from operations ........................... 51,899,613 24,976,298
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income ......................................... (1,740,608) (460,966)
Distributions from net realized capital gains ................................ (5,226,102) (5,162,034)
------------ ------------
Total dividends and distributions to shareholders ............................ (6,966,710) (5,623,000)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net increase from capital transactions (Note 3) .............................. 139,681,450 32,916,840
------------ ------------
TOTAL INCREASE IN NET ASSETS: ................................................ 184,614,353 52,270,138
NET ASSETS:
Beginning of the year ........................................................ 117,035,406 64,765,268
------------ ------------
END OF THE YEAR* ............................................................. $301,649,759 $117,035,406
============ ============
* Includes deficit in undistributed net investment income of $0 and $(4,537) for
the years ended 12/31/07 and 12/31/06, respectively.
The accompanying notes are an integral part of these financial statements.
16
NEW ALTERNATIVES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2007
1) ORGANIZATION - New Alternatives Fund, Inc. (the "Fund") was incorporated
under the laws of the State of New York on January 17, 1978 and is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company. The Fund commenced operations on
September 3, 1982. The investment objective of the Fund is to seek growth with
long-term capital gains by investing in common stocks of companies that are
oriented to a clean environment. The Fund concentrates at least 25% of its total
assets in common stocks of companies which have an interest in alternative
energy. There is no limitation on the percentage of assets invested in the U.S.
or abroad.
2) ACCOUNTING POLICIES - The following is a summary of significant accounting
policies followed by the Fund, and are in accordance with U.S. generally
accepted accounting principles.
A. PORTFOLIO VALUATION - The Fund's net asset value ("NAV") is
calculated once daily at the close of regular trading hours on the New
York Stock Exchange ("NYSE") (generally 4:00 p.m. Eastern time) on each
day the NYSE is open. Securities held by the Fund are valued using the
closing price or the last sale price on a national securities exchange
or on the National Association of Securities Dealers Automatic
Quotation System ("NASDAQ") market system where they are primarily
traded. If there were no sales on that day or the securities are traded
on other over-the-counter markets, the mean of the last bid and asked
prices prior to the market close is used. Short-term debt securities
having a remaining maturity of 60 days or less are amortized based on
their cost.
Non-U.S. equity securities are valued based on their most recent
closing market prices on their primary market and are translated from
the local currency into U.S. dollars using current exchange rates.
If the market price of a security held by the Fund is unavailable at
the time the Fund prices its shares at 4:00 p.m. Eastern time, the Fund
will use the "fair value" of such security as determined in good faith
by the Advisor pursuant to procedures adopted by the Fund's Board of
Directors.
B. FOREIGN CURRENCY TRANSLATION - Investment securities and other
assets and liabilities denominated in foreign currencies are translated
into U.S. dollar amounts at the date of valuation. Purchases and sales
of investment securities and income and expense items denominated in
foreign currencies are translated into U.S. dollar amounts on the
respective dates of such transactions. If foreign currency translations
are not available, the foreign exchange rate(s) will be valued at fair
market value using procedures approved by the Fund's Board of
Directors.
17
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.
Reported net realized foreign exchange gains or losses arise from sales
of foreign currencies, currency gains or losses realized between the
trade and settlement dates on securities transactions, and 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.
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date (date order to buy or
sell is executed). The cost of investments sold is determined by use of
a first in, first out basis for both financial reporting and income tax
purposes in determining realized gains and losses on investments.
D. INVESTMENT INCOME AND EXPENSE RECOGNITION - Dividend income is
recorded as of the ex-dividend date. Interest income, including
amortization/accretion of premium and discount, is accrued daily.
Expenses are accrued on a daily basis.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net
investment income and distributions from net realized capital gains, if
any, will be declared and paid at least annually to shareholders and
recorded on ex-date. Income dividends and capital gain distributions
are determined in accordance with U.S. federal income tax regulations
which may differ from U.S. generally accepted accounting principles.
These differences include the treatment of non-taxable dividends,
expiring capital loss carry-forwards, foreign currency gain/loss, and
losses deferred due to wash sales and excise tax regulations. Permanent
book and tax basis differences relating to shareholder distributions
will result in reclassifications within the components of net assets.
F. U.S. TAX STATUS - No provision is made for U.S. income taxes as it
is the Fund's intention to qualify for and elect the tax treatment
applicable to regulated investment companies under Subchapter M of the
Internal Revenue Code of 1986, as amended, and make the requisite
distributions to its shareholders which will be sufficient to relieve
it from U.S. income and excise taxes.
G. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The
preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenue
and expenses during the reporting period. Actual results could differ
from those estimates.
18
H. OTHER - In the normal course of business, the Fund may enter into
contracts that provide general indemnifications. The Fund's maximum
exposure under these arrangements is dependent on claims that may be
made against the Fund in the future, and therefore, cannot be
estimated; however, based on experience, the risk of material loss for
such claims is considered remote.
3) CAPITAL STOCK - There are 8,000,000 shares of $1.00 par value capital stock
authorized. On December 31, 2007, there were 5,266,358 shares outstanding.
Aggregate paid in capital including reinvestment of dividends was $230,343,303.
Transactions in capital stock were as follows:
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 2007 DECEMBER 31, 2006
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
Capital stock sold 2,999,232 $161,162,985 813,624 $33,729,984
Reinvestment of distributions 89,305 5,114,997 106,359 4,669,953
Redemptions (487,475) (26,596,532) (134,382) (5,483,097)
--------- ------------ ------- -----------
Net Increase 2,601,062 $139,681,450 785,601 $32,916,840
========= ============ ======= ===========
4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES - Accrued Equities,
Inc. (the "Advisor"), a registered investment adviser and broker-dealer, serves
as investment adviser to the Fund pursuant to an Investment Management and
Advisory Agreement, as amended. The Fund pays the Advisor an annual management
fee of 1.00% of the first $10 million of average net assets; 0.75% of the next
$20 million; 0.50% of net assets over $30 million and 0.45% of assets over $100
million. The annualized expense ratio for the year ended December 31, 2007 was
0.95%. The Fund pays no remuneration to its officers, David Schoenwald and
Maurice Schoenwald, who are also Directors of the Fund and officers of the
Advisor. On July 1, 2006 the Fund entered into an Underwriting Agreement with
PFPC Distributors, Inc. to serve as the principal underwriter and PFPC
Distributors, Inc. entered into a Sub-Distribution Agreement with Accrued
Equities, Inc. The Fund charges a maximum front-end sales charge of 4.75% on
most new sales. The commission is shared with other brokers who actually sell
new shares. Their share of the commission may vary. Accrued Equities, Inc.
received $361,674 in sales charges for the year ended December 31, 2007. PFPC
Distributors, Inc., the Fund's principal underwriter, and Accrued Equities,
Inc., the Fund's co-distributor, received $221,220 and $442,440, respectively,
in underwriting fees for the year ended December 31, 2007.
5) DIRECTORS FEES - For the year ended December 31, 2007, the Fund paid
Directors fees of $16,500 to its Independent Directors. The Interested Directors
do not receive directors' fees from the Fund. Independent Directors receive an
annual retainer of $2,500 plus an additional $500 for each member of the Audit
Committee. The Independent Directors may also receive reimbursement for travel
expenses to attend Directors meetings. There was no additional compensation paid
to any Director for board service other than that stated.
19
6) PURCHASES AND SALES OF SECURITIES - For the year ended December 31, 2007, the
aggregate cost of securities purchased totaled $141,013,287. Net realized gains
(losses) were computed on a first in, first out basis. The amount realized on
sales of securities for the year ended December 31, 2007 was $25,105,130.
7) FEDERAL INCOME TAX INFORMATION - At December 31, 2007, federal tax cost and
aggregate gross unrealized appreciation and depreciation of securities held by
the Fund were as follows:
Cost of investments for tax purposes................. $226,016,069
------------
Gross tax unrealized appreciation.................... $ 76,680,512
Gross tax unrealized depreciation.................... (5,370,492)
------------
**Net tax unrealized appreciation on investments..... $ 71,310,020
============
The tax character of distributions paid during 2007 and 2006 were as follows:
Distribution paid from: 2007 2006
---- ----
Ordinary Income $1,741,387 $ 460,966
Long-term Capital Gain 5,712,964* 5,162,034
---------- ----------
$7,454,351 $5,623,000
========== ==========
* Includes use of equalization debits of $487,641.
The following permanent differences as of December 31, 2007, primarily
attributable to transactions involving foreign securities and currencies, tax
equalization, tax treatment of distributions and other differences between
financial accounting and tax accounting, were reclassified to the following
accounts:
Increase Paid-In-Capital $487,641
Decrease Accumulated Net Realized Gain (Loss) (494,307)
Increase Undistributed Net Investment Income 6,666
As of December 31, 2007, the components of distributable earnings on a tax basis
were as follows:
Undistributed Ordinary Income $ --
Undistributed Capital Gains --
**Net Unrealized Appreciation on
Investments and Currencies 71,306,456
-----------
$71,306,456
===========
** The primary difference between distributable earnings on a book and tax basis
is primarily related to wash sales.
20
8) NEW ACCOUNTING PRONOUNCEMENT - In July 2006, the Financial Accounting
Standards Board ("FASB") issued FASB Interpretation No. 48 ("FIN 48"),
"Accounting for Uncertainty in Income Taxes, an interpretation of FAS Statement
No. 109." FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken in the course of preparing the
Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
benefits of positions not deemed to meet the more-likely-than-not threshold
would be booked as a tax expense in the current year and recognized as: a
liability for unrecognized tax benefits; a reduction of an income tax refund
receivable; a reduction of deferred tax assets; an increase in deferred tax
liability; or a combination thereof. Adoption of FIN 48 is required for the last
net asset value calculation in the first required financial statement reporting
period for fiscal years beginning after December 15, 2006. Management has
evaluated the impact of FIN 48 and has determined it has no impact on the
financial statements.
In September 2006, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") 157, "Fair Value Measurements," which
clarifies the definition of fair value and requires companies to expand their
disclosure about the use of fair value to measure assets and liabilities in
interim and annual periods subsequent to initial recognition. Adoption of SFAS
157 requires the use of the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market
participants at the measurement date. SFAS 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. At this time, the Fund is in the
process of reviewing the impact, if any, of the SFAS on the Fund's financial
statements.
9) CHANGE OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - On January 22,
2007, Briggs, Bunting & Dougherty, LLP succeeded Joseph A. Don Angelo, CPA as
the Fund's independent auditor. The Fund's selection of Briggs, Bunting &
Dougherty, LLP as its independent auditor was recommended by the Fund's Audit
Committee and was approved by the Fund's Board of Directors.
The reports on the Financial Statements audited by Joseph A. Don Angelo for each
of the fiscal years ended December 31, 2006 and December 31, 2005 contained no
adverse opinion or disclaimer of opinion nor were they qualified or modified as
to uncertainty, audit scope or accounting principles. During the Fund's fiscal
years ended December 31, 2006 and December 31, 2005 and the interim period
January 1, 2007 through January 22, 2007 ("Interim Period"), (i) there were no
disagreements with Joseph A. Don Angelo on any matter of accounting principles
or practices, financial statement disclosure or auditing scope or procedure,
which disagreements, if not resolved to the satisfaction of Joseph A. Don
Angelo, would have caused it to make reference to the subject matter of the
disagreements in connection with its reports on the Fund's financial statements
for such years, and (ii) there were no "reportable events" of the kind described
in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of
1934, as amended.
21
[GRAPHIC OMITTED] BRIGGS
BUNTING &
DOUGHERTY
Certified
Public
Accountants
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
NEW ALTERNATIVES FUND, INC.
We have audited the accompanying statement of assets and liabilities of New
Alternatives Fund, Inc., including the schedule of investments, as of December
31, 2007, and the related statement of operations, the statement of changes in
net assets and the financial highlights for the year then ended. 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 audit. The statement of changes
in net assets for the year ended December 31, 2006 and the financial highlights
for each of the years in the four-year period ended December 31, 2006 were
audited by other auditors whose report dated February 20, 2007 expressed an
unqualified opinion on such financial statement and financial highlights.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (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. Our procedures included confirmation of
securities owned as of December 31, 2007 by correspondence with the custodian
and brokers. 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 audit provides 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 New
Alternatives Fund, Inc. as of December 31, 2007, the results of its operations,
and the changes in its net assets and its financial highlights for the year then
ended, in conformity with accounting principles generally accepted in the United
States of America.
/s/ Briggs, Bunting & Dougherty, LLP
BRIGGS, BUNTING & DOUGHERTY, LLP
PHILADELPHIA, PENNSYLVANIA
FEBRUARY 22, 2008
22
OTHER INFORMATION
(UNAUDITED)
SHAREHOLDER MEETING INFORMATION - The Annual Meeting of Shareholders of the Fund
(the "Meeting") was held on September 27, 2007 at which a quorum was present.
The Meeting included the election of directors and the ratification of the
Registered Independent Certified Public Accountant.
Maurice L. Schoenwald, David Schoenwald, Sharon Reier, Preston Pumphrey, Murray
Rosenblith, Susan Hickey and Jonathan Beard were elected to serve as Directors
for the ensuing year. Information regarding shares voted for and against each
matter before the Meeting follows:
a) To elect seven Directors to serve for the ensuing year.
For Withhold
------------- ----------
Maurice L. Schoenwald 2,801,451.856 14,366.430
David J. Schoenwald 2,801,663.446 14,154.829
Sharon Reier 2,803,360.484 12,457.811
Preston Pumphrey 2,801,817.372 14,000.923
Murray Rosenblith 2,802,839.203 12,979.092
Susan Hickey 2,795,968.573 19,849.722
Jonathan Beard 2,795,814.203 20,004.092
b) To ratify the selection of the firm of Briggs, Bunting & Dougherty, LLP
as Registered Independent Certified Public Accountant of the Fund for
the fiscal year ending December 31, 2007. The selection was ratified
with the following votes:
For: 2,785,435.436
Against: 3,142.822
Abstain: 27,238.037
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT - During the period covered by the
report, the Board of Directors (the "Board") of the Company, including all of
the Directors who are not interested persons" of the Company, as that term is
defined in the 1940 Act (the "Independent Directors"), approved continuation of
the investment advisory agreement between Accrued Equities, Inc. and the Company
on behalf of the New Alternatives Fund, Inc. The Board's decision to approve the
Agreement reflects the exercise of its business judgment, based on information
provided by the Advisor and the Board's assessment of the specific circumstances
of the Company. In accordance with regulations promulgated by the Securities and
Exchange Commission, a summary of the material factors taken into consideration
by the Board, together with the Board's conclusion with respect to each factor
appears below.
23
Overall, the Board concluded that continuation of the Agreement would be in the
best interests of the Company and its shareholders, as well as consistent with
the expectations of the shareholders of the Company. During its deliberations,
the Board considered (i) the Company's focus on alternative energy investments
and the demonstrated and long-term commitment of Accrued Equities, Inc. to this
market sector; (ii) the size of the Fund and the contribution of Accrued
Equities, Inc. to operating costs and needs since the Company's inception; (iii)
the quality, extent, and value of services provided to the Fund by Accrued
Equities, Inc., including the performance achieved; (iv) comparative data with
respect to the advisory and management fees paid by other funds of comparable
type and size and the operating expenses and expense ratio of the Fund as
compared to other such funds; (v) the special knowledge of alternative energy of
Accrued Equities, Inc.; and (vi) the profitability of Accrued Equities, Inc.,
including data relating to the costs incurred by Accrued Equities, Inc. in
providing advisory, administrative, processing and other services to the Fund
and its shareholders.
The Board reached the following conclusions: that the nature, extent and quality
of services provided by Accrued Equities, Inc. in advising the Fund including
the performance achieved, was satisfactory; that the profits earned by Accrued
Equities, Inc. are not excessive, particularly in light of the relatively higher
expenses incurred by small and specialized funds like the Company; and that
break points in the fee schedule ensure that shareholders benefit from the
resulting economies of scale. Of significance in the Board's decision to
continue the Advisory Agreement is the fact that the Advisor provides investment
advisory services exclusively to the Company and that the firm has been
committed to alternative energy investing since the inception of the Company.
The Board was also informed as to fees and expenses incurred by other funds that
seek to invest in accordance with a social responsible investment philosophy but
did not specifically rely upon such comparative information in determining to
continue the Advisory Agreement.
PROXY VOTING - The Fund has proxy voting policies which are available, without
charge, upon request by calling the Fund at 800-423-8383. Information regarding
how the Fund voted proxies during the most recent twelve month period ended June
30 is available (1) without charge, upon request, by calling the Fund at
800-423-8383 and (ii) on the SEC's website at http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES - The Fund files a complete schedule of portfolio
holdings with the SEC for the first and third quarters of each fiscal year
(quarters ended March 31 and September 30) on Form N-Q. The Fund's Form N-Q's
are available on the SEC website at http://www.sec.gov and may be reviewed and
copied at the SEC Public Reference Room in Washington, D.C. Information on the
operation of the SEC Public Reference Room may be obtained by calling
1-800-SEC-0330.
24
NEW ALTERNATIVES FUND, INC.
SHAREHOLDER TAX INFORMATION (UNAUDITED)
During the fiscal year ended December 31, 2007, the following dividends and
distributions per share were paid by the Fund:
Ordinary Income $0.34
Long-Term Capital Gains 1.02
The Fund paid foreign taxes of $195,616 and recognized foreign source income of
$1,772,647. Pursuant to Section 853 of the Internal Revenue Code, the Fund
designates such amounts as having been paid in connection with dividends
distributed from investment taxable income during the year ended December 31,
2007.
For the year ended December 31, 2007, certain dividends may be subject to a
maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief
Reconciliation Act of 2003. For individual shareholders, a 100% of their
ordinary income distribution for the Fund may qualify for a maximum tax rate of
15%. Complete information will be computed and reported in conjunction with your
Form 1099-DIV.
For corporate shareholders, 32.58% of the ordinary income distributions qualify
for the dividends received deduction.
Shareholders are advised to consult their own tax advisors with respect to the
tax consequences of their investments in the Fund.
25
MANAGEMENT OF THE FUND - Information pertaining to the Directors and Officers of
the Fund is set forth below. The Statement of Additional Information includes
additional information about the Directors and is available without charge, upon
request, by calling the Fund at 800-423-8383 or by visiting our website at
www.newalternativesfund.com.
DIRECTORS
NUMBER OF
PORTFOLIOS IN
TERM OF PRINCIPAL FUND COMPLEX OTHER
POSITION(S) OFFICE AND OCCUPATION(S) TO BE DIRECTORSHIPS
NAME, HELD WITH LENGTH OF TIME DURING THE PAST OVERSEEN BY HELD BY
ADDRESS AND AGE FUND SERVED(1) FIVE YEARS DIRECTOR(2) DIRECTOR(3)
- --------------- --------------- --------------- ------------------------------------- ------------- ---------------
INTERESTED DIRECTORS AND OFFICERS
Maurice L. Schoenwald* Founder, 1982 to present Founder, Secretary and Vice President, 1 None
Longboat Key, FL Director, Accrued Equities, Inc.
Age: 87 Chairman of the
Board, Vice
President and
Secretary
David J. Schoenwald* Founder, 1982 to present President, Accrued Equities, Inc. 1 None
Huntington Bay, NY Director,
Age: 58 President and
Treasurer
Joseph A. Don Angelo Chief 2007 to present Accountant and Owner, Don Angelo and 1 None
116 Jackson Ave. Compliance Associates, CPAs P.C. (1984-Present)
Syosset, NY 11791 Officer
Age: 59
INDEPENDENT DIRECTORS
Sharon Reier Director Since 1982 Financial Journalist, Business Week & 1 None
Coconut Creek, International Herald Tribune; Former
FL and Paris, France Regional Editor, Financial World
Age: 61 Magazine; Former Editor with Board
Room; Former Contributing Editor,
Institutional Investor; Former Staff,
Forbes & American Banker.
<FN>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Each Director holds office until the next meeting of shareholders at which Directors are elected following his or her election
or appointment and until his or her successor has been elected and qualified.
(2) Currently, there is only one portfolio and no fund complex.
(3) Includes directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended (i.e.,
"public companies"), or other investment companies registered under the 1940 Act.
* "Interested" person, as defined in section 2(a)(19) of the 1940 Act. Maurice L. Schoenwald is Secretary and minority shareholder
of Accrued Equities, Inc., the Fund's investment adviser. David Schoenwald is majority shareholder and President of Accrued
Equities, Inc.
</FN>
26
NUMBER OF
PORTFOLIOS IN
TERM OF PRINCIPAL FUND COMPLEX OTHER
POSITION(S) OFFICE AND OCCUPATION(S) TO BE DIRECTORSHIPS
NAME, HELD WITH LENGTH OF TIME DURING THE PAST OVERSEEN BY HELD BY
ADDRESS AND AGE FUND SERVED(1) FIVE YEARS DIRECTOR(2) DIRECTOR(3)
- --------------- --------------- --------------- ------------------------------------- ------------- ---------------
Preston V. Pumphrey Director and Since 2003 Retired CEO and Former owner, 1 None
Syosset, NY Audit (Director and Pumphrey Securities, Inc., a
Age: 73 Committee Audit Committee) registered securities broker/dealer;
Chairman Former Adjunct Professor of Finance,
C.W. Post College; NASD Dispute
Resolution Board of Arbitrators (June
2002 to Present); Director, American
Red Cross of Nassau County, NY.
Murray D. Rosenblith Director Since 2003 Executive Director, A.J. Muste 1 None
Brooklyn, NY and Audit Memorial Institute, an organization
Age: 57 Committee concerned with exploration of the
Member link between non-violence and social
change.
Susan Hickey Director Since 2005 Accounting Software Developer, 1 None
East Northport, NY and Audit Accountants World (formerly Micro
Age: 55 Committee Vision Software, Inc.); Former IRS
Member Tax Return Auditor; BA International
Affairs, Stonehill College, North
Easton, MA.
<FN>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Each Director holds office until the next meeting of shareholders at which Directors are elected following his or her election
or appointment and until his or her successor has been elected and qualified.
(2) Currently, there is only one portfolio and no fund complex.
(3) Includes directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended (i.e.,
"public companies"), or other investment companies registered under the 1940 Act.
</FN>
27
NUMBER OF
PORTFOLIOS IN
TERM OF PRINCIPAL FUND COMPLEX OTHER
POSITION(S) OFFICE AND OCCUPATION(S) TO BE DIRECTORSHIPS
NAME, HELD WITH LENGTH OF TIME DURING THE PAST OVERSEEN BY HELD BY
ADDRESS AND AGE FUND SERVED(1) FIVE YEARS DIRECTOR(2) DIRECTOR(3)
- --------------- --------------- --------------- ------------------------------------- ------------- ---------------
Jonathan D. Beard Director Since 2005 Self-employed Freelance Journalist 1 None
New York, NY for various American and European
Age: 60 Science Magazines; Lifetime Member,
Sierra Club and New York-New Jersey
Trails Conference; Graduate of
Columbia University 1970.
<FN>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Each Director holds office until the next meeting of shareholders at which Directors are elected following his or her election
or appointment and until his or her successor has been elected and qualified.
(2) Currently, there is only one portfolio and no fund complex.
(3) Includes directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended (i.e.,
"public companies"), or other investment companies registered under the 1940 Act.
</FN>
28
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ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report, has
adopted a code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party.
(c) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, and that relates to any element of
the code of ethics description.
(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, that relates to one or more of the
items set forth in paragraph (b) of this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period covered by the report, the Registrant's Board of
Directors has determined that Preston Pumphrey is qualified to serve as an audit
committee financial expert serving on its audit committee and that he is
"independent," as defined by Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Audit Fees
- ----------
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or services that
are normally provided by the accountant in connection with statutory
and regulatory filings or engagements for those fiscal years are
$43,433 for 2006 and $18,000 for 2007.
Audit-Related Fees
- ------------------
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the
registrant's financial statements and are not reported under paragraph
(a) of this Item are $0 for 2006 and $0 for 2007.
Tax Fees
- --------
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning are $1,550 for 2006 and $0 for
2007.
All Other Fees
- --------------
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are $0
for 2006 and $0 for 2007.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
The Audit Committee will be responsible for evaluating the provision of
non-audit services to the Company as required by Section 201 of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated
there under (collectively, the "2002 Act") and any pre-approval
requests submitted by the independent accountants as required by
Section 202 of the 2002 Act.
(e)(2) The percentage of services described in each of paragraphs (b) through
(d) of this Item that were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:
(b) Not applicable
(c) 100%
(d) Not applicable
(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees
was 0%.
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services
to the registrant for each of the last two fiscal years of the
registrant was $1,700 for 2006 and $0 for 2007.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to
the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing
date of the report that includes the disclosure required by this
paragraph, based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as
amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's second fiscal quarter
of the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is incorporated by reference to Exhibit
(a)(1) of the Registrant's Form N-CSR filed on March 8, 2007 (Accession
No. 0001116502-07-000455).
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section
302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section
906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) New Alternatives Fund, Inc.
--------------------------------------------------------------------
By (Signature and Title)* /s/ David J. Schoenwald
-------------------------------------------------------
David J. Schoenwald, Chief Executive Officer
(principal executive officer)
Date 2/27/08
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ David J. Schoenwald
-------------------------------------------------------
David J. Schoenwald, Chief Executive Officer
(principal executive officer)
Date 2/27/08
----------------------------------------------------------------------------
By (Signature and Title)* /s/ David J. Schoenwald
-------------------------------------------------------
David J. Schoenwald, Chief Financial Officer
(principal financial officer)
Date 2/27/08
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.