-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TdqhREn38OxjzZD8riqwKfcmSy43TvfX6q29Gq/5rKp3/VFWic35tLD3Aw83mYtg YzXa5o9g3viKw8Ce+CkQoQ== 0000846800-98-000002.txt : 19980304 0000846800-98-000002.hdr.sgml : 19980304 ACCESSION NUMBER: 0000846800-98-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980302 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS LIFE & ANNUITY INDEX FUND INC CENTRAL INDEX KEY: 0000846800 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05719 FILM NUMBER: 98554596 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: UNIONDALE STATE: NY ZIP: 11566 BUSINESS PHONE: 2129226785 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 N-30D 1 ANNUAL REPORT Dreyfus Stock Index Fund Annual Report December 31, 1997 Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Letter to Shareholders Dear Shareholder: We are pleased to provide you with this annual report for the Dreyfus Stock Index Fund, for the fiscal year ended December 31, 1997. Over the period, your Fund produced a total return of 32.96%.* This compares with a return of 33.35%** for the Standard & Poor's 500 Composite Stock Price Index, which the Fund is designed to mirror. The difference is accounted for by commissions and other Fund expenses. Economic Review In 1997, the U.S. economy put in its best growth performance of this business cycle to date. In tandem, the labor market tightened markedly, marginally boosting wage inflation towards year end. Yet price inflation decelerated and bond yields fell. Although corporate profit growth was robust for much of the year, strains began to appear in the second half in some sectors. The Federal Reserve Board (the "Fed") tightened credit early in the year, then subsequently stayed on hold, torn between strong economic reports at home and worsening financial crises overseas. While the problems overseas may slow the U.S. economy somewhat in 1998, incoming evidence indicates little adverse impact on economic activity to date. Real Gross Domestic Product ("GDP") grew 3.8% in 1997, its best annual growth since 1988. Almost all the major sectors contributed to growth. Households enjoyed rising real incomes as wage increases outpaced price inflation. Moderate interest rates buoyed housing demand. Tightening factory capacity boosted capital spending, and until late in the year, steady foreign growth kept exports robust. That all these sectors grew simultaneously in a late phase of the business cycle was unusual. The year 1997 also saw a dramatic narrowing of the Federal budget deficit. It is likely that the associated drop in Federal borrowing boosted the supply of credit available to the private sector. As mentioned, overall corporate profit growth rebounded in 1997, after slowing in 1996. Profits from domestic sources generally did well. However, profits from international sources began to show strains in the second half, impacted by the rising dollar and by financial stresses overseas. More recently, profits at some companies have been slowed by price weakness. Economic data this winter show the economy still quite strong, although some leading statistics have begun to signal somewhat slower economic growth for 1998. First, recently slowing export orders and rising import orders imply a widening trade deficit. Second, the number of announced layoffs has begun to rise, indicating some future easing of labor market pressures. Once these leading indicators actually show up in a slowing of the economy, market expectations may shift to anticipate the possibility of a move by the Fed to ease credit. At the start of 1998, there was uncertainty about both the severity of Asian stresses and their impact on the U.S. economy. Market Overview By virtually every measurement, 1997 was a historically favorable year for stocks. The 12-month gains, despite setbacks along the way, were impressive. However, the year ended on a note of uncertainty with no assurance that the gains of 1997 could be repeated in 1998. Index figures (price changes only, without including income) tell the story: For the 12 months ended December 31, 1997, the Dow Jones Industrial Average (DJIA) rose by 22.64%, the broader Standard & Poor's 500 Composite Stock Price Index was up 31.01%, the Nasdaq Composite up 21.64% and the Russell 2000, representing small capitalization stocks, gained 20.52%. The economic background, at least until October when Asia's troubles surfaced, was clearly favorable. So much so that economic commentators talked of the "Goldilocks economy" -- not too hot and not too cold. Unemployment was low, industrial production and other output measures continued to grow, yet price and wage inflation were not problems. By the end of the year, there was even talk that the next economic problem might be a touch of deflation. The market began the year by rebounding from earlier weakness. The signs in the market and the economy were so bullish that Fed Chairman Alan Greenspan warned against "irrational exuberance," then followed that up on March 25 with an increase in short-term interest rates. That cooled off the stock market temporarily, but not for long. By early August, major stock market averages reached all-time record highs. As summer turned into autumn, however, doubts began to appear. There were worries about the profit outlook and worries that inflation might resume. The biggest negative influences, however, were the financial setbacks in Asia, starting with Thailand, Malaysia, the Philippines, Hong Kong and Indonesia, then spreading to South Korea and Japan. This raised questions for American investors about how our export orders might be affected, how the profits of U.S. multinationals would fare, and whether devaluation of Asian currencies would cause a flood of cheaper imported goods into the U.S. In view of these unsettling questions, it was impressive that the damage to U.S. stocks by year-end was comparatively limited. On October 27, the DJIA sank to 7161.15, a one-day loss of 7.18%, the worst since the big market sinking spell of ten years earlier. Yet by the end of the year, the Dow had bounced back to 7908.25, with other major indices and averages following suit. For much of the year, large capitalization companies were in favor, though small caps staged an impressive rally in midyear. Among the best-performing industry groups were banks and other financial stocks, broadcasting, advertising, airlines, home construction and trucking. Consumer software, precious metals (particularly gold) and heavy industrial materials were among the laggards. A feature of the year was mergers and acquisitions that were the driving force for some key stocks, particularly in the communications, finance and broadcasting industries. The merger pace was such that it seemed likely to carry over into 1998. The boom of 1997 gave rise to such terms as "new era" and "new paradigm" to describe the phenomenon of a stock market making new highs for three years in a row. Yet the clouds that appeared on the horizon late in the year place the burden of proof for 1998 on the "new era" advocates. We thank you for allowing us to invest assets on your behalf. Sincerely, /s/ Steven Falci Steven Falci Portfolio Manager January 18, 1998 New York, N.Y. * Total return includes reinvestment of dividends and any capital gains paid. The Fund's performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts, which will reduce returns. ** SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of income dividends and, where applicable, capital gain distributions. The Standard & Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index of U.S. stock market performance. Dreyfus Stock Index Fund December 31, 1997 - ------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS STOCK INDEX FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX $34,885 Standard & Poor's 500 Composite Stock Price Index* Dollars $33,704 Dreyfus Stock Index Fund * *Source: Lipper Analytical Services, Inc. Average Annual Total Returns - --------------------------------------------------------------------------------
One Year Ended Five Years Ended From Inception (9/29/89) December 31, 1997 December 31, 1997 to December 31, 1997 ------------------ ----------------------- ---------------------- 32.96% 19.70% 15.85%
- -------------------------------------------------------------------------------- Past performance is not predictive of future performance. The Portfolio's performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts which will reduce returns. The above graph compares a $10,000 investment made in Dreyfus Stock Index Fund on 9/29/89 (Inception Date) to a $10,000 investment made in the Standard & Poor's 500 Composite Stock Price Index on that date. For comparative purposes, the value of the Index on 9/30/89 is used as the beginning value on 9/29/89. All dividends and capital gain distributions are reinvested. The Fund's performance shown in the line graph takes into account all applicable fees and expenses of the Fund. The Standard & Poor's 500 Composite Stock Price Index is a widely accepted, unmanaged index of overall stock market performance, which does not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments December 31, 1997 Shares COMMON STOCKS--97.5% Value --------- ----------------- Basic Industries--3.9% 26,400 Air Products & Chemicals.. $ 2,171,400 9,800 Armstrong World Industries 732,550 24,800 Avery Dennison............ 1,109,800 7,300 Ball...................... 257,781 12,800 Bemis..................... 564,000 13,400 Boise Cascade............. 405,350 7,000 Centex.................... 440,562 23,100 Champion International.... 1,046,718 30,900 Crown Cork & Seal......... 1,548,862 54,900 Dow Chemical.............. 5,572,350 272,400 duPont (E.I.) de Nemours & Co 16,361,025 18,900 Eastman Chemical.......... 1,125,731 34,800 Engelhard................. 604,650 9,000 (a)FMC....................... 605,812 20,200 Fluor..................... 754,975 50,900 Fort James................ 1,946,925 41,300 Fortune Brands............ 1,530,681 22,000 Georgia Pacific........... 1,336,500 17,500 Grace (W.R.).............. 1,407,656 14,400 Great Lakes Chemical...... 646,200 23,900 Hercules.................. 1,196,493 72,800 International Paper....... 3,139,500 9,400 Kaufman & Broad Home...... 210,912 26,300 Louisiana Pacific......... 499,700 39,700 Masco..................... 2,019,737 25,200 Mead...................... 705,600 141,944 Monsanto.................. 5,961,648 32,100 Morton International...... 1,103,437 16,100 Nalco Chemical............ 636,956 33,800 (a)Owens-Illinois............ 1,282,287 43,200 PPG Industries............ 2,467,800 7,000 Potlach................... 301,000 38,100 Praxair................... 1,714,500 14,800 Rohm & Haas............... 1,417,100 41,600 Sherwin-Williams.......... 1,154,400 24,100 Sigma-Aldrich............. 957,975 23,900 Stone Container........... 249,456 13,700 Temple-Inland............. 716,681 41,000 Tenneco................... 1,619,500 16,700 Union Camp................ 896,581 29,900 Union Carbide............. 1,283,831 24,600 Westvaco.................. 773,362 48,000 Weyerhaeuser.............. 2,355,000 26,800 Willamette Industries..... 862,625 --------------- 73,695,609 --------------- Capital Goods--22.0% 52,900 AMP....................... 2,221,800 17,600 Adobe Systems............. 726,000 33,900 (a)Advanced Micro Devices.... 608,081 6,800 Aeroquip-Vickers.......... 333,625 136,300 AlliedSignal.............. 5,307,181 21,750 (a)Andrew.................... 522,000 30,700 (a)Apple Computer............ 402,937 87,800 (a)Applied Materials......... 2,644,975 11,500 Autodesk.................. 425,500 70,500 Automatic Data Processing. 4,326,937 50,700 (a)Bay Networks.............. 1,296,018 241,124 Boeing.................... 11,800,005 6,100 Briggs & Stratton......... 296,231 47,600 Browning-Ferris Industries 1,761,200 Shares COMMON STOCKS (continued) Value --------- ----------------- Capital Goods (continued) 38,000 Cabletron Systems......... $ 570,000 18,000 Case...................... 1,087,875 90,700 Caterpillar............... 4,404,618 190,448 Cendant................... 6,546,650 18,400 (a)Ceridian.................. 842,950 9,600 Cincinnati Milacron....... 249,000 241,650 (a)Cisco Systems............. 13,471,987 39,500 Cognizant................. 1,760,218 182,097 (a)Compaq Computer........... 10,277,099 131,525 Computer Associates International........... 6,954,384 18,600 (a)Computer Sciences......... 1,553,100 29,400 Cooper Industries......... 1,440,600 11,050 Crane..................... 479,293 9,200 Cummins Engine............ 543,375 28,300 (a)DSC Communications........ 679,200 11,500 (a)Data General.............. 200,531 60,700 Deere & Co................ 3,539,568 79,700 (a)Dell Computer............. 6,694,800 19,800 Deluxe.................... 683,100 36,800 (a)Digital Equipment......... 1,361,600 53,600 Dover..................... 1,936,300 23,100 Dow Jones & Co............ 1,240,181 42,200 Dresser Industries........ 1,769,762 41,100 Dun & Bradstreet.......... 1,271,531 11,000 EG&G...................... 228,937 118,800 (a)EMC....................... 3,259,575 18,600 Eaton..................... 1,660,050 106,800 Emerson Electric.......... 6,027,525 36,300 Equifax................... 1,286,381 103,300 First Data................ 3,021,525 9,800 Foster Wheeler............ 265,212 15,000 General Dynamics.......... 1,296,562 788,600 General Electric.......... 57,863,525 12,100 General Signal............ 510,468 43,350 Genuine Parts............. 1,471,190 18,400 Goodrich (B.F.)........... 762,450 12,000 Grainger (W.W.)........... 1,166,250 11,900 Harnischfeger Industries.. 420,218 19,200 Harris.................... 880,800 250,500 Hewlett-Packard........... 15,656,250 30,700 Honeywell................. 2,102,950 28,500 ITT Industries............ 894,187 32,000 Ikon Office Solutions..... 900,000 60,100 Illinois Tool Works....... 3,613,512 39,950 Ingersoll-Rand............ 1,617,975 393,300 Intel..................... 27,629,325 236,600 International Business Machines................ 24,739,487 30,000 Interpublic Group Cos..... 1,494,375 20,200 Johnson Controls.......... 964,550 20,200 (a)KLA-Tencor................ 780,225 34,200 (a)LSI Logic................. 675,450 46,700 Lockheed Martin........... 4,599,950 154,598 Lucent Technologies....... 12,348,515 13,400 McDermott International... 490,775 50,700 (a)Micron Technology......... 1,318,200 288,600 (a)Microsoft................. 37,301,550 100,100 Minnesota Mining & Manufacturing........... 8,214,456 143,400 Motorola.................. 8,182,762 38,900 (a)National Semiconductor.... 1,008,968 Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1997 Shares COMMON STOCKS (continued) Value --------- ----------------- Capital Goods (continued) 10,900 National Service Industries $ 540,231 63,100 Northern Telecommunications 5,615,900 16,100 Northrop Grumman.......... 1,851,500 84,100 (a)Novell.................... 630,750 235,950 (a)Oracle.................... 5,264,634 12,800 Owens-Corning............. 436,800 30,601 Pall...................... 633,058 30,700 (a)Parametric Technology..... 1,454,412 26,950 Parker-Hannifin........... 1,236,331 10,500 Perkin-Elmer.............. 746,156 34,800 Pitney Bowes.............. 3,129,825 20,700 Raychem................... 891,393 56,900 Raytheon, Cl. B........... 2,873,450 50,300 Rockwell International.... 2,628,175 18,700 Ryder System.............. 612,425 14,000 Safety-Kleen.............. 384,125 18,700 Scientific-Atlanta........ 313,225 58,900 (a)Seagate Technology........ 1,133,825 60,600 Service Corp. International 2,238,412 6,000 Shared Medical Systems.... 396,000 44,400 (a)Silicon Graphics.......... 552,225 14,750 Snap-On................... 643,468 21,400 Stanley Works............. 1,009,812 88,800 (a)Sun Microsystems.......... 3,540,900 83,000 (a)3COM...................... 2,899,812 12,100 Tektronix................. 480,218 43,600 (a)Tellabs................... 2,305,350 92,300 Texas Instruments......... 4,153,500 39,700 Textron................... 2,481,250 36,200 (a)Thermo Electron........... 1,610,900 13,200 Thomas & Betts............ 623,700 15,200 Timken.................... 522,500 128,300 Tyco International........ 5,781,518 42,100 (a)Unisys.................... 584,137 56,700 United Technologies....... 4,128,468 109,200 Waste Management.......... 3,003,000 78,300 Xerox..................... 5,779,518 --------------- 409,995,245 --------------- Consumer Cyclical--11.9% 59,200 Albertson's............... 2,804,600 38,200 Omnicom Group............. 1,618,725 18,100 American Greetings, Cl. A. 708,162 65,600 American Stores........... 1,348,900 36,400 (a)AutoZone.................. 1,055,600 22,700 Black & Decker............ 886,718 23,900 Brunswick................. 724,468 170,000 CBS....................... 5,004,375 41,400 CVS....................... 2,652,187 25,500 (a)Charming Shoppes.......... 119,531 162,400 Chrysler.................. 5,714,450 23,700 Circuit City Stores....... 842,831 23,600 Clear Channel Communications 1,874,725 84,000 Comcast, Cl. A ........... 2,651,250 19,000 Cooper Tire and Rubber.... 463,125 51,200 (a)Costco Cos................ 2,284,800 25,100 Dana...................... 1,192,250 36,800 Darden Restaurants........ 460,000 52,400 Dayton Hudson............. 3,537,000 26,900 Dillard's, Cl. A.......... 948,225 Shares COMMON STOCKS (continued) Value --------- ----------------- Consumer Cyclical (continued) 162,600 Disney (Walt).............$ 16,107,562 35,200 Donnelley (R.R.) & Sons... 1,311,200 15,200 Echlin.................... 550,050 50,400 (a)Federated Department Stores 2,170,350 8,700 Fleetwood Enterprises..... 369,206 287,700 Ford Motor................ 14,007,393 17,700 (a)Fruit of the Loom, Cl. A.. 453,562 68,300 Gannett................... 4,221,793 96,900 Gap....................... 3,433,893 175,600 General Motors............ 10,645,750 14,500 Giant Food, Cl. A......... 488,468 37,600 Goodyear Tire & Rubber.... 2,392,300 9,200 Great Atlantic & Pacific.. 273,125 17,000 Harcourt General.......... 930,750 7,500 Harland (John H.)......... 157,500 24,300 (a)Harrah's Entertainment.... 458,662 30,550 Hasbro.................... 962,325 60,200 Hilton Hotel.............. 1,790,950 175,850 Home Depot................ 10,353,168 28,000 (a)ITT....................... 2,320,500 9,400 Jostens................... 216,787 117,300 (a)K mart.................... 1,356,281 8,900 King World Productions.... 513,975 19,300 Knight-Ridder............. 1,003,600 61,300 (a)Kroger.................... 2,264,268 65,400 Limited................... 1,667,700 16,800 Liz Claiborne............. 702,450 9,400 Longs Drug Stores......... 301,975 41,900 Lowes..................... 1,998,106 30,600 Marriott International.... 2,119,050 70,000 Mattel.................... 2,607,500 56,000 May Department Stores..... 2,950,500 23,700 Maytag.................... 884,306 165,700 McDonald's................ 7,912,175 23,800 McGraw-Hill Cos........... 1,761,200 8,900 Mercantile Stores......... 541,787 12,900 Meredith.................. 460,368 43,100 (a)Mirage Resorts............ 980,525 21,400 Moore..................... 323,675 69,500 NIKE, Cl. B............... 2,727,875 17,600 (a)Navistar International.... 436,700 23,100 New York Times, Cl. A..... 1,527,487 35,500 (a)Nextlevel Systems......... 634,562 18,600 Nordstrom................. 1,122,975 18,700 PACCAR.................... 981,750 59,900 Penney (J.C.)............. 3,612,718 15,200 Pep Boys-Manny, Moe & Jack 362,900 11,198 Raytheon, Cl. A........... 552,201 13,600 (a)Reebok International...... 391,850 29,600 Rite Aid.................. 1,737,150 8,800 Russell................... 233,750 94,300 Sears, Roebuck & Co....... 4,267,075 4,900 Springs Industries........ 254,800 14,600 Supervalu................. 611,375 42,000 Sysco..................... 1,913,625 39,300 TJX....................... 1,350,937 29,700 TRW....................... 1,585,237 25,500 Tandy..................... 983,343 122,000 (a)Tele-Communications, Cl. A 3,408,375 134,800 Time Warner............... 8,357,600 23,100 Times Mirror, Cl. A....... 1,420,650 Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1997 Shares COMMON STOCKS (continued) Value --------- ----------------- Consumer Cyclical (continued) 68,700 (a)Toys R Us................. $ 2,159,756 29,600 Tribune................... 1,842,600 36,860 Tricon Global Restaurants. 1,071,243 146,000 (a)US West Media Group....... 4,215,750 30,300 V.F....................... 1,391,906 85,001 (a)Viacom, Cl. B............. 3,522,228 545,400 Wal-Mart Stores........... 21,509,212 118,600 Walgreen.................. 3,721,075 31,700 Wendy's International..... 762,781 18,000 Whirlpool................. 990,000 35,900 Winn-Dixie Stores......... 1,568,381 32,500 (a)Woolworth................. 662,187 --------------- 222,748,711 --------------- Consumer Staples--11.5% 13,500 Alberto-Culver, Cl. B..... 432,843 118,400 Anheuser-Busch............ 5,209,600 134,913 Archer Daniels Midland.... 2,925,925 31,900 Avon Products............. 1,957,862 16,600 Brown-Forman, Cl. B....... 917,150 34,600 CPC International......... 3,728,150 110,800 Campbell Soup............. 6,440,250 24,900 Clorox.................... 1,968,656 597,400 Coca-Cola................. 39,801,775 71,300 Colgate-Palmolive......... 5,240,550 113,900 ConAgra................... 3,737,343 8,900 Coors (Adolph), Cl. B..... 295,925 55,600 Corning................... 2,064,150 78,500 Eastman Kodak............. 4,773,781 15,600 Ecolab.................... 864,825 38,500 General Mills............. 2,757,562 134,800 Gillette.................. 13,538,975 88,900 Heinz (H.J.).............. 4,517,231 34,400 Hershey Foods............. 2,130,650 26,300 International Flavors & Fragrance............ 1,354,450 99,400 Kellogg................... 4,932,725 134,100 Kimberly-Clark............ 6,612,806 1,933 NACCO Industries, Cl. A... 207,193 38,300 Newell.................... 1,627,750 368,600 PepsiCo................... 13,430,862 583,600 Philip Morris Cos......... 26,444,375 15,900 Pioneer Hi-Bred International 1,705,275 11,000 Polaroid.................. 535,562 325,300 Procter & Gamble.......... 25,963,006 33,100 Quaker Oats............... 1,746,025 25,700 Ralston Purina Group...... 2,388,493 36,100 Rubbermaid................ 902,500 115,700 Sara Lee.................. 6,515,356 85,700 Seagram................... 2,769,181 14,800 Tupperware................ 412,550 44,300 UST....................... 1,636,331 154,200 Unilever, N.V............. 9,627,862 24,500 Whitman................... 638,531 28,000 Wrigley, (Wm) Jr.......... 2,227,750 --------------- 214,981,786 --------------- Energy--8.7% 22,100 Amerada Hess.............. 1,212,737 118,200 Amoco..................... 10,061,775 Shares COMMON STOCKS (continued) Value --------- ----------------- Energy (continued) 14,400 Anadarko Petroleum........ $ 873,900 21,800 Apache.................... 764,362 18,000 Ashland................... 966,375 77,300 Atlantic Richfield........ 6,193,662 40,600 Baker Hughes.............. 1,771,175 42,490 Burlington Resources...... 1,904,083 157,700 Chevron................... 12,142,900 25,500 Coastal................... 1,579,406 13,300 Columbia Gas System....... 1,044,881 23,000 Consolidated Natural Gas.. 1,391,500 4,900 Eastern Enterprises....... 220,500 75,500 Enron..................... 3,137,968 595,900 Exxon..................... 36,461,751 62,900 Halliburton............... 3,266,868 6,020 Helmerich & Payne......... 408,607 11,500 Kerr-McGee................ 728,093 189,300 Mobil..................... 13,665,093 11,700 Nicor..................... 493,593 7,500 ONEOK..................... 302,812 79,800 Occidental Petroleum...... 2,339,137 25,400 (a)Oryx Energy............... 647,700 20,100 Pacific Enterprises....... 756,262 11,400 Pennzoil.................. 761,662 8,400 Peoples Energy............ 330,750 63,400 Phillips Petroleum........ 3,082,825 20,800 (a)Rowan Cos................. 634,400 516,400 Royal Dutch Petroleum, A.D.R 27,982,425 119,200 Schlumberger.............. 9,595,600 20,700 Sonat..................... 947,025 17,500 Sun ...................... 736,093 132,600 Texaco.................... 7,210,125 69,400 USX-Marathon Group........ 2,342,250 61,144 Union Pacific Resources Group 1,482,742 59,500 Unocal.................... 2,309,343 13,000 (a)Western Atlas............. 962,000 76,600 Williams Cos.............. 2,173,525 --------------- 162,885,905 --------------- Health Care--11.0% 20,500 (a)ALZA...................... 652,156 185,300 Abbott Laboratories....... 12,148,731 15,600 Allergan.................. 523,575 156,200 American Home Products.... 11,949,300 63,900 Amgen..................... 3,458,587 13,800 Bard (C.R.)............... 432,112 13,300 Bausch & Lomb............. 527,012 67,300 Baxter International...... 3,394,443 29,400 Becton, Dickinson & Co.... 1,470,000 26,800 Biomet.................... 686,750 46,800 (a)Boston Scientific......... 2,146,950 240,100 Bristol-Myers Squibb...... 22,719,462 26,100 Cardinal Health........... 1,960,762 157,550 Columbia/HCA Healthcare... 4,667,418 35,700 Guidant................... 2,222,325 47,700 HBO & Co.................. 2,289,600 93,300 (a)HEALTHSOUTH............... 2,589,075 39,400 (a)Humana.................... 817,550 320,500 Johnson & Johnson......... 21,112,937 267,900 Lilly (Eli)............... 18,652,537 17,700 Mallinckrodt Group........ 672,600 15,300 Manor Care................ 535,500 Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1997 Shares COMMON STOCKS (continued) Value --------- ----------------- Health Care (continued) 112,600 Medtronic.................$ 5,890,387 290,900 Merck & Co................ 30,908,125 10,500 Millipore................. 356,343 311,300 Pfizer.................... 23,211,306 122,300 Pharmacia & Upjohn........ 4,479,237 176,500 Schering-Plough........... 10,965,062 22,100 St. Jude Medical.......... 674,050 72,900 (a)Tenet Healthcare.......... 2,414,812 17,700 U.S. Surgical............. 518,831 45,200 United Healthcare......... 2,245,875 65,400 Warner-Lambert............ 8,109,600 --------------- 205,403,010 --------------- Interest Sensitive--16.9% 36,099 Aetna..................... 2,547,235 23,400 Ahmanson (H.F.) & Co...... 1,566,337 104,800 Allstate.................. 9,523,700 112,900 American Express.......... 10,076,325 59,815 American General.......... 3,233,748 168,900 American International Group 18,367,875 40,250 Aon....................... 2,359,656 33,000 BB&T...................... 2,114,062 35,100 BANKBOSTON................ 3,297,206 140,400 Banc One.................. 7,625,475 91,400 Bank of New York.......... 5,284,062 168,200 BankAmerica............... 12,278,600 24,000 Bankers Trust New York.... 2,698,500 47,900 Barnett Banks............. 3,442,812 12,800 Beneficial................ 1,064,000 17,800 CIGNA..................... 3,080,512 102,000 Chase Manhattan........... 11,169,000 41,500 Chubb..................... 3,138,437 13,100 Cincinnati Financial...... 1,843,825 110,300 Citicorp.................. 13,946,056 25,400 Comerica.................. 2,292,350 45,300 Conseco................... 2,058,318 48,700 CoreStates Financial...... 3,899,043 25,800 Countrywide Credit Industries 1,106,175 255,500 Federal National Mortgage Association............. 14,579,468 37,150 Fifth Third Bancorp....... 3,037,012 71,200 First Chicago NBD......... 5,945,200 151,200 First Union............... 7,749,000 60,200 Fleet Financial Group..... 4,511,237 167,400 Federal Home Loan Mortgage 7,020,337 19,200 General Re................ 4,070,400 13,700 Golden West Financial..... 1,340,031 32,700 Green Tree Financial...... 856,331 25,100 H&R Block................. 1,124,793 28,400 Hartford Financial Services Group......... 2,657,175 25,700 Household International... 3,278,356 46,000 Huntington Bancshares..... 1,656,000 17,100 Jefferson Pilot........... 1,331,662 52,300 Keycorp................... 3,703,493 24,600 Lincoln National.......... 1,921,875 27,700 Loews..................... 2,939,662 21,500 MBIA...................... 1,436,468 120,725 MBNA...................... 3,297,301 27,500 MGIC Investment........... 1,828,750 40,600 Marsh & McLennan.......... 3,027,237 Shares COMMON STOCKS (continued) Value --------- ----------------- Interest Sensitive (continued) 60,600 Mellon Bank............... $ 3,673,875 79,800 Merrill Lynch & Co........ 5,820,412 43,100 Morgan (J.P.) & Co........ 4,864,912 141,367 Morgan Stanley, Dean Witter, Discover and Co......... 8,358,323 51,800 National City............. 3,405,850 171,490 NationsBank............... 10,428,735 180,500 Norwest................... 6,971,812 73,900 PNC Bank.................. 4,216,918 17,400 Progressive............... 2,085,825 22,600 Providian Financial....... 1,021,237 5,100 Pulte..................... 213,243 13,200 Republic New York......... 1,507,275 20,200 St. Paul Cos.............. 1,657,662 33,600 Safeco.................... 1,638,000 63,750 Schwab (Charles).......... 2,673,515 38,700 State Street.............. 2,251,856 47,000 SunAmerica................ 2,009,250 51,500 SunTrust Banks............ 3,675,812 42,100 Synovus Financial......... 1,378,775 33,300 Torchmark................. 1,400,681 15,200 Transamerica.............. 1,618,800 275,524 Travelers Group........... 14,843,855 26,700 USF&G..................... 589,068 58,905 U.S. Bancorp.............. 6,593,678 33,600 UNUM...................... 1,827,000 49,100 Wachovia.................. 3,983,237 60,310 Washington Mutual......... 3,848,531 21,200 Wells Fargo............... 7,196,075 --------------- 315,079,309 --------------- Mining And Metals--.9% 25,800 (a)ARMCO..................... 127,387 8,300 ASARCO.................... 186,231 54,700 Alcan Aluminium........... 1,511,087 42,332 Allegheny Teledyne........ 1,095,340 41,900 Aluminum Co. of America... 2,948,712 89,800 Barrick Gold.............. 1,672,525 55,300 Battle Mountain Gold...... 324,887 27,100 (a)Bethlehem Steel........... 233,737 22,500 Cyprus Amax Minerals...... 345,937 33,600 Echo Bay Mines............ 81,900 47,900 Freeport-McMoRan Copper, Cl. B.......... 754,425 35,300 Homestake Mining.......... 313,287 40,200 Inco...................... 683,400 11,800 Inland Steel Industries... 202,075 37,619 Newmont Mining............ 1,105,058 21,200 Nucor..................... 1,024,225 14,500 Phelps Dodge.............. 902,625 57,700 Placer Dome............... 732,068 17,800 Reynolds Metals........... 1,068,000 20,600 USX-U.S. Steel............ 643,750 23,300 Worthington Industries.... 384,450 --------------- 16,341,106 --------------- Transportation--1.3% 22,100 (a)AMR....................... 2,839,850 37,500 Burlington Northern Santa Fe 3,485,156 52,500 CSX....................... 2,835,000 Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1997 Shares COMMON STOCKS (continued) Value --------- ----------------- Transportation (continued) 9,400 Caliber System............ $ 457,662 17,700 Delta Air Lines........... 2,106,300 27,700 (a)Federal Express........... 1,691,431 79,200 Laidlaw................... 1,079,100 90,800 Norfolk Southern.......... 2,797,775 52,700 Southwest Airlines........ 1,297,737 21,900 (a)USAir Group............... 1,368,750 59,500 Union Pacific............. 3,715,031 --------------- 23,673,792 --------------- Utilities--9.4% 391,200 AT&T...................... 23,961,000 45,000 ALLTEL.................... 1,847,812 121,300 (a)Airtouch Communications... 5,041,531 45,600 American Electric Power... 2,354,100 132,400 Ameritech................. 10,658,200 35,600 Baltimore Gas & Electric.. 1,212,625 186,980 Bell Atlantic............. 17,015,180 238,800 BellSouth................. 13,447,425 38,000 CINergy................... 1,455,875 36,500 Carolina Power & Light.... 1,548,968 51,100 Central & Southwest....... 1,382,893 56,600 Consolidated Edison....... 2,320,600 34,900 DTE Energy................ 1,210,593 44,700 Dominion Resources........ 1,902,543 86,709 Duke Power................ 4,801,510 92,000 Edison International...... 2,501,250 58,100 Entergy................... 1,739,368 43,900 FPL Group................. 2,598,331 55,500 FirstEnergy............... 1,609,500 39,500 Frontier.................. 950,468 29,100 GPU....................... 1,225,837 230,300 GTE....................... 12,033,175 68,739 Houston Industries........ 1,834,472 166,600 MCI Communications........ 7,132,562 34,800 (a)Niagara Mohawk Power...... 365,400 17,800 Northern States Power..... 1,036,850 Shares COMMON STOCKS (continued) Value --------- ----------------- Utilities (continued) 105,600 PG&E...................... $ 3,214,200 39,800 PP&L Resources............ 952,712 53,600 PECO Energy............... 1,299,800 71,300 PacifiCorp................ 1,947,381 55,900 Public Service Enterprise Group 1,771,331 220,089 SBC Communications........ 16,121,519 164,900 Southern.................. 4,266,787 103,700 Sprint.................... 6,079,412 57,930 Texas Utilities........... 2,407,715 115,400 US West................... 5,207,425 52,100 UniCom.................... 1,602,075 31,800 Union Electric............ 1,375,350 217,300 (a)WorldCom.................. 6,573,325 --------------- 176,007,100 --------------- TOTAL COMMON STOCKS (cost $1,405,058,129)... $1,820,811,573 =============== Principal .......................... Amount SHORT-TERM INVESTMENTS--2.2% - ---------- U.S. Treasury Bills: $ 9,567,000(b)4.93%, 1/8/98............ 9,560,399 15,911,000 5.08%, 1/22/1998......... 15,864,222 863,000 5.25%, 2/26/1998......... 856,329 7,821,000 5.22%, 3/5/1998.......... 7,750,533 1,050,000 5.23%, 3/12/1998......... 1,039,531 6,335,000 5.11%, 4/2/1998.......... 6,251,631 --------------- TOTAL SHORT-TERM INVESTMENTS (cost $41,319,552)...... $ 41,322,645 ============== TOTAL INVESTMENTS (cost $1,446,377,681)........ 99.7% $1,862,134,218 ======= ============== CASH AND RECEIVABLES (NET)..... .3% $ 6,538,263 ======= ============== NET ASSETS..................... 100.0% $1,868,672,481 ======= ============== Notes to Statement of Investments: - ------------------------------------------------------------------------------- (a) Non-income producing. (b) Partially held by the custodian in a segregated account as collateral for open financial future positions.
Statement of Financial Futures December 31, 1997 Market Value Unrealized Covered (Depreciation) Financial Futures Purchased Contracts by Contracts Expiration at 12/31/97 - ------------------------ -------- ------------ --------- ------------ Standard & Poor's 500............................ 175 $42,835,625 March '98 $(21,450) =========
See notes to financial statements. Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Statement of Assets and Liabilities December 31, 1997
Cost Value --------------- --------------- ASSETS: Investments in securities--See Statement of Investments $1,446,377,681 $1,862,134,218 Cash............................................. 4,581,097 Dividends receivable............................. 2,476,805 Receivable for investment securities sold........ 500,950 Receivable for futures variation margin--Note 4(a) 2,340 Prepaid expenses................................. 1,758 --------------- 1,869,697,168 --------------- LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 389,845 Payable for investment securities purchased...... 311,544 Accrued expenses................................. 323,298 --------------- 1,024,687 --------------- NET ASSETS..................................................................... $1,868,672,481 =============== REPRESENTED BY: Paid-in capital.................................. $1,449,612,682 Accumulated undistributed investment income--net.. 363,269 Accumulated net realized gain (loss) on investments 2,961,443 Accumulated net unrealized appreciation (depreciation) on investments [including ($21,450) net unrealized (depreciation) on financial futures]--Note 4(b). 415,735,087 --------------- NET ASSETS..................................................................... $1,868,672,481 =============== SHARES OUTSTANDING (200 million shares of $.001 par value Common Stock authorized)................ 72,574,255 NET ASSET VALUE, offering and redemption price per share....................... $25.75 ======
See notes to financial statements. Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Statement of Operations Year Ended December 31, 1997
INVESTMENT INCOME INCOME: Cash dividends (net of $142,574 foreign taxes withheld at source)...................... $22,913,978 Interest................................... 3,677,781 ------------ Total Income............................. $ 26,591,759 EXPENSES: Management fee--Note 3(a)................... 3,357,626 Registration fees.......................... 228,319 Professional fees.......................... 117,490 Directors' fees and expenses--Note 3(c)..... 45,456 Prospectus and shareholders' reports....... 37,222 Shareholder servicing costs--Note 3(b)...... 16,455 Loan commitment fees--Note 2................ 9,720 Miscellaneous.............................. 28,862 ------------ Total Expenses........................... 3,841,150 ------------- INVESTMENT INCOME--NET.................................................... 22,750,609 ------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4: Net realized gain (loss) on investments.... $20,868,260 Net realized gain (loss) on financial futures 10,238,956 ------------ Net Realized Gain (loss)................. 31,107,216 Net unrealized appreciation (depreciation) on investments (including $245,720 net unrealized appreciation on financial futures)....... 301,610,317 ------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 332,717,533 ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $355,468,142 =============
See notes to financial statements. Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Statement of Changes in Net Assets
Year Ended Year Ended December 31, 1997 December 31, 1996 ----------------- ----------------- OPERATIONS: Investment income--net.................................................. $ 22,750,609 $ 11,787,770 Net realized gain (loss) on investments................................ 31,107,216 31,884,780 Net unrealized appreciation (depreciation) on investments.............. 301,610,317 67,782,146 --------------- --------------- Net Increase (Decrease) in Net Assets Resulting from Operations..... 355,468,142 111,454,696 --------------- --------------- DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net.................................................. (22,484,033) (11,705,971) Net realized gain on investments....................................... (52,209,539) (12,675,130) --------------- --------------- Total Dividends..................................................... (74,693,572) (24,381,101) --------------- --------------- CAPITAL STOCK TRANSACTIONS: Net proceeds from shares sold.......................................... 968,080,279 520,828,128 Dividends reinvested................................................... 74,693,572 24,381,101 Cost of shares redeemed................................................ (268,834,713) (131,010,511) --------------- --------------- Increase (Decrease) in Net Assets from Capital Stock Transactions... 773,939,138 414,198,718 --------------- --------------- Total Increase (Decrease) in Net Assets.......................... 1,054,713,708 501,272,313 NET ASSETS: Beginning of Period.................................................... 813,958,773 312,686,460 --------------- --------------- End of Period.......................................................... $1,868,672,481 $ 813,958,773 =============== =============== Undistributed investment income--net....................................... $ 363,269 $ 96,693 --------------- --------------- Shares Shares --------------- --------------- CAPITAL SHARE TRANSACTIONS: Shares sold............................................................ 40,703,214 27,543,376 Shares issued for dividends reinvested................................. 2,981,897 1,269,483 Shares redeemed........................................................ (11,239,469) (6,861,606) --------------- --------------- Net Increase (Decrease) In Shares Outstanding....................... 32,445,642 21,951,253 =============== ===============
See notes to financial statements. Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Financial Highlights Contained below is per share operating performance data for a share of Common Stock outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements.
Year Ended December 31, -------------------------------------------- PER SHARE DATA: 1997 1996 1995 1994 1993 ------ ------ ------ ------ ------ Net asset value, beginning of period.................... $20.28 $17.20 $12.94 $13.20 $15.32 ------ ------ ------ ------ ------ Investment Operations: Investment income--net................................... .37 .39 .33 .32 .37 Net realized and unrealized gain (loss) on investments.. 6.26 3.43 4.39 (.21) 1.04 ------ ------ ------ ------ ------ Total from Investment Operations........................ 6.63 3.82 4.72 .11 1.41 ------ ------ ------ ------ ------ Distributions: Dividends from investment income--net.................... (.37) (.39) (.33) (.31) (.34) Dividends in excess of investment income--net............ -- -- -- -- (.03) Dividends from net realized gain on investments......... (.79) (.35) (.13) -- (3.00) Dividends in excess of net realized gain on investments. -- -- -- (.06) (.16) ------ ------ ------ ------ ------ Total Distributions..................................... (1.16) (.74) (.46) (.37) (3.53) ------ ------ ------ ------ ------ Net asset value, end of period......................... $25.75 $20.28 $17.20 $12.94 $13.20 ====== ====== ====== ====== ====== TOTAL INVESTMENT RETURN.................................... 32.96% 22.54% 36.78% .88% 9.33% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets................. .28% .30% .39% .40% .40% Ratio of net investment income to average net assets.... 1.66% 2.24% 2.38% 2.57% 2.38% Decrease reflected in above expense ratios due to undertakings by the Manager................... -- -- .03% .16% .27% Portfolio Turnover Rate................................. 3.53% 10.92% 11.95% 2.82% 71.71% Average commission rate paid*........................... $.0291 $.0317 -- -- -- Net Assets, end of period (000's Omitted)............... $1,868,672 $813,959 $312,686 $96,806 $61,319 - ------------------------------------------------------------------------------- * For the years beginning January 1, 1996, the Fund is required to disclose its average commisssion rate paid per share for purchases and sales of investment securities.
See notes to financial statements. Dreyfus Stock Index Fund - ------------------------------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS NOTE 1--Significant Accounting Policies: Dreyfus Stock Index Fund (the "Fund") is registered under the Investment Company Act of 1940 ("Act") as a non-diversified open-end management investment company, that is intended to be a funding vehicle for variable annuity contracts and variable life insurance policies to be offered by the separate accounts of life insurance companies. The Fund's investment objective is to provide investment results that correspond to the price and yield performance of publicly traded common stocks as represented by the Standard and Poor's 500 Composite Stock Price Index. The Dreyfus Corporation ("Dreyfus") serves as the Fund's manager and Mellon Equity Associates ("Mellon Equity"), an affiliate of Dreyfus, serves as the Fund's index manager. Boston Safe Deposit and Trust Company, an affiliate of Dreyfus, is the Fund's custodian. Dreyfus is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. is the distributor of the Fund's shares, which are sold without a sales charge. The Fund's financial statements are prepared in accordance with generally accepted accounting principles which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (a) Portfolio valuation: Investments in securities (including financial futures) are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, amortization of discount on investments, is recognized on the accrual basis. (c) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are declared and paid on a quarterly basis. Dividends from net realized capital gain are normally declared and paid annually, but the Fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the Fund not to distribute such gain. (d) Federal income taxes: It is the policy of the Fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes. NOTE 2--Bank Line of Credit: The Fund participates with other Dreyfus-managed funds in a $600 million redemption credit facility ("Facility") to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the Fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the Fund at rates based on prevailing market rates in effect at the time of borrowings. During the period ended December 31, 1997, the Fund did not borrow under the Facility. NOTE 3--Management Fee and Other Transactions With Affiliates: (a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment advisory fee is computed at the annual rate of .245 of 1% of the value of the Fund's average daily net assets, and is payable monthly. Dreyfus has agreed to pay Mellon Equity, a monthly fee at the annual rate of .095 of 1% of the value of the Fund's average daily net assets. Dreyfus had undertaken from January 1, 1997 until June 30, 1997 and thereafter until such a time as they give shareholders at least 180 days notice to the contrary that if in any full fiscal year the Fund's aggregate expenses (exclusive of brokerage commissions, transaction fees, commitment fees and extraordinary expenses) exceed an annual rate of .40 of 1% of the value of the Fund's average daily net assets, the Fund may deduct from the payments to be Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) made to Dreyfus, or Dreyfus will bear, such excess expense. During the period ended December 31, 1997, there was no expense reimbursement pursuant to the Investment Advisory Agreement. (b) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, an amount not to exceed an annual rate of .25 of 1% of the value of the Fund's average daily net assets for certain allocated expenses with respect to servicing and/or maintaining shareholder accounts. During the period ended December 31, 1997, the Fund was charged $15,500 pursuant to the Shareholder Services Plan. The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the Fund. During the period ended December 31, 1997, the Fund was charged $340 pursuant to the transfer agency agreement. (c) Each director who is not an "affiliated person" as defined in the Act receives from the Fund an annual fee of $2,500 and an attendance fee of $500 per meeting. The Chairman of the Board receives an additional 25% of such compensation. NOTE 4--Securities Transactions: (a) The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended December 31, 1997 amounted to $798,632,011 and $45,677,186, respectively. The Fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market. The Fund is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the Fund to "mark to market" on a daily basis, which reflects the change in the market value of the contract at the close of each day's trading. Typically, variation margin payments are received or made to reflect daily unrealized gains or losses. When the contracts are closed, the Fund recognizes a realized gain or loss. These investments require initial margin deposits with a custodian, which consist of cash or cash equivalents, up to approximately 10% of the contract amount. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at December 31, 1997 and their related unrealized market depreciation are set forth in the Statement of Financial Futures. (b) At December 31, 1997, accumulated net unrealized appreciation on investments and financial futures was $415,735,087, consisting of $437,376,609 gross unrealized appreciation and $21,641,522 gross unrealized depreciation. At December 31, 1997, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). Dreyfus Stock Index Fund - ------------------------------------------------------------------------------- Report of Independent Accountants Shareholders and Board of Directors Dreyfus Stock Index Fund: We have audited the accompanying statement of assets and liabilities of Dreyfus Stock Index Fund, including the statements of investments and financial futures, as of December 31, 1997, and the related statements of operations for the year then ended, and changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period 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 audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 1997, 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 audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Stock Index Fund as of December 31, 1997, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with generally accepted accounting principles. COOPERS & LYBRAND L.L.P. New York, New York January 29, 1998 Important Tax Information (Unaudited) For Federal tax purposes the Fund hereby designates $.330 per share as a long-term capital gain distribution (of which 90.91% is subject to the 20% maximum Federal tax rate) of the $.480 per share paid on December 31, 1997 and also designates $.355 per share as a long-term capital gain distribution of the $.395 per share paid on September 2, 1997. Additionally, the Fund designates 76.29% of the ordinary dividends paid during the fiscal year ended December 31, 1997 as qualifying for the corporate dividends received deduction. [Logo] Dreyfus Stock Index Fund 200 Park Avenue New York, NY 10166 Manager The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Index Fund Manager Mellon Equity Associates 500 Grant Street Pittsburgh, PA 15258 Custodian Boston Safe Deposit and Trust Company One Boston Place Boston, MA 02108 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Printed in U.S.A. 763AR9712 EX-99.A 2 GRAPH IN PRESIDENT'S LETTER IN ANNUAL REPORT COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS STOCK INDEX FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX EXHIBIT A: STANDARD & POOR'S 500 PERIOD COMPOSITE STOCK DREYFUS STOCK PRICE INDEX* INDEX FUND 9/29/89 10,000 10,000 12/31/89 10,205 10,216 12/31/90 9,888 9,860 12/31/91 12,893 12,803 12/31/92 13,875 13,713 12/31/93 15,270 14,993 12/31/94 15,471 15,125 12/31/95 21,278 20,688 12/31/96 26,161 25,350 12/31/97 34,885 33,704 *Source: Lipper Analytical Services, Inc. -----END PRIVACY-ENHANCED MESSAGE-----