-----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, HGgPs4U+Rt2SW1cOXelmuwou3+pP0hQXgQrmDTKQ/Gv0wKD4ObkZFRZHWPG9XdDH WAPLMvKWn6dufhX8DSs+YA== /in/edgar/work/20000824/0000846800-00-000008/0000846800-00-000008.txt : 20000922 0000846800-00-000008.hdr.sgml : 20000922 ACCESSION NUMBER: 0000846800-00-000008 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000824 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS LIFE & ANNUITY INDEX FUND INC CENTRAL INDEX KEY: 0000846800 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 033-27172 FILM NUMBER: 708771 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 497 1 0001.txt SEMI-ANNUAL REPORT Dreyfus Stock Index Fund SEMIANNUAL REPORT June 30, 2000 (reg.tm) The views expressed herein are current to the date of this report. These views and the composition of the fund's portfolio are subject to change at any time based on market and other conditions. * Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value Contents THE FUND - -------------------------------------------------- 2 Letter from the President 3 Discussion of Fund Performance 6 Statement of Investments 21 Statement of Financial Futures 22 Statement of Assets and Liabilities 23 Statement of Operations 24 Statement of Changes in Net Assets 25 Financial Highlights 26 Notes to Financial Statements FOR MORE INFORMATION - --------------------------------------------------------------------------- Back Cover The Fund Dreyfus Stock Index Fund LETTER FROM THE PRESIDENT Dear Shareholder: We are pleased to present this semiannual report for Dreyfus Stock Index Fund, covering the six-month period from January 1, 2000 through June 30, 2000. Inside, you' ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund's portfolio managers, Steven Falci and Jocelin Reed. While stock prices were little changed on average over the past six months, the period was marked by high levels of volatility and dramatic shifts in investor sentiment. Between January and mid-March, large-cap stocks generally continued to advance, led by fast-growing technology stocks that, many investors believed, would benefit most from the "new economy." Subsequently, however, technology stocks corrected sharply over concerns about rising interest rates and extremely high valuations. Other sectors of the large-cap stock market also declined, erasing the gains achieved earlier in the year. Also, primarily because of the precipitous drop in technology stock prices, value-oriented stocks generally outperformed growth stocks during the reporting period, a reversal of the trend established over the past several years. In addition, small-capitalization stocks generally outperformed large-cap stocks, particularly in the value-oriented segment of the market. In our view, these short-term swings in investor sentiment highlight once again the importance of broad diversification and a long-term perspective for most investors. We appreciate your confidence over the past six months, and we look forward to your continued participation in Dreyfus Stock Index Fund. Sincerely, Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation July 17, 2000 DISCUSSION OF FUND PERFORMANCE Steven Falci and Jocelin Reed, Portfolio Managers How did Dreyfus Stock Index Fund perform relative to its benchmark? For the six-month period ended June 30, 2000, Dreyfus Stock Index Fund produced a total return of -0.55%.(1) In contrast, the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index"), produced a total return of -0.43% for the same period.(2) The difference in returns is primarily due to transaction costs and other fund operating expenses. What is the fund's investment approach? The fund seeks to match the total return of the S&P 500 Index. To pursue this goal, the fund generally invests in all 500 stocks in the S&P 500 Index in proportion to their weighting in the Index. Often considered a barometer for the stock market in general, the S&P 500 Index is made up of 500 widely held common stocks and is dominated by large-cap blue chip stocks which when combined, cover nearly 75% of the total U.S. market capitalization. However, it is important to note that the S&P 500 Index is not composed of the 500 largest companies; rather, it is designed to capture the returns of many different sectors of the U.S. economy. Accordingly, it is composed of approximately 375 industrial, 40 utility, 75 financial and 10 transportation stocks. Each stock is weighted by its market capitalization. Overall, larger companies have greater representation in the S&P 500 Index than smaller ones. The fund may also use stock index futures as a substitute for the sale or purchase of stocks. Dreyfus Stock Index Fund uses a passive management approach -- all investment decisions are made based on the fund's objective, which is to seek to match the performance of the S& P 500 Index. The fund does not attempt to manage market volatility. The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) What other factors influenced the fund's performance? The six-month reporting period was marked by high levels of stock market volatility and changing investor preferences in three areas: technology versus non-technology sectors; small-cap versus mid- and large-cap stocks; and growth- versus value-investment styles. From the beginning of the year through mid-March 2000, the U.S. stock market advanced sharply, driven primarily by strong gains within the technology sector. During this period, the prices of many high-flying technology stocks continued to climb, especially those stocks that were associated with Internet-related products and services. In addition, large-cap stocks underperformed their small- and mid-cap counterparts and the growth style of investing outperformed the value style of investing. By mid-March, however, those trends had generally reversed themselves when many technology stocks fell out of favor. Even during this downturn in the technology sector as a whole, there were days when tech stocks bounced back to report strong gains, which increased the stock market's volatility levels. In this environment, which lasted through the end of May, large-cap stocks generally outpaced small-cap stocks, and the value style of investing provided better returns than the growth style. In June, however, technology stocks rebounded strongly, small-cap stocks performed better than large-cap stocks and growth outperformed value. During the reporting period, the largest gains within the S&P 500, and therefore within the fund as well, came from its technology group, which includes electrical defense and electronic semiconductors. In addition, the S&P 500 Index' s energy holdings such as oil and gas drilling, natural gas, oil well equipment and services and oil exploration and production companies provided strong returns, as did its investment banking and brokerage stocks, pharmaceutical, health care and medical products stocks. Conversely, the lowest returns of the S&P 500 Index during the reporting period and for the fund as well, were generated from basic materials stocks, which include companies within the metals, glass and metal containers, steel, paper and forest products areas. Other industry groups providing disappointing returns included hotel and motel companies, consumer staples firms such as household products manufacturers, engineering and construction companies, long-distance telecommunications stocks and household furniture and appliances companies. What is the fund's current strategy? The fund is an index fund, and its goal is to replicate the return of the S&P 500 Index. Therefore, the fund's strategy is to hold all 500 stocks that make up the S&P 500 Index in an effort to capture a similar return. As of the end of the reporting period, the largest sector weightings of the Index, and for the fund as well, were approximately as follows: technology (31%) ; interest sensitive (17%); healthcare (11%); consumer cyclical (8%); utilities (7%); producer goods (6%); energy (6%); and consumer staples (5%). July 17, 2000 (1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. (2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF 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.
The Fund June 30, 2000 (Unaudited) STATEMENT OF INVESTMENTS STATEMENT OF INVESTMENTS COMMON STOCKS--99.3% Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ ALCOHOL & TOBACCO--1.0% Anheuser-Busch Cos. 195,900 14,631,281 Brown-Forman, Cl. B 29,700 1,596,375 Coors (Adolph), Cl. B 15,900 961,950 Philip Morris Cos. 991,600 26,339,375 Seagram 189,200 10,973,600 UST 70,300 1,032,531 55,535,112 CONSUMER CYCLICAL--7.7% AMR 64,900 (a) 1,715,794 Albertson's 183,677 6,107,260 AutoZone 58,000 (a) 1,276,000 Bed Bath & Beyond 60,900 (a) 2,207,625 Best Buy 88,600 (a) 5,603,950 Black & Decker 36,900 1,450,631 Brunswick 38,100 631,031 CVS 169,200 6,768,000 Circuit City Group 88,200 2,927,138 Consolidated Stores 48,100 (a) 577,200 Cooper Tire & Rubber 32,000 356,000 Costco Wholesale 193,700 (a) 6,392,100 Dana 66,106 1,400,621 Darden Restaurants 53,700 872,625 Delphi Automotive Systems 244,103 3,554,750 Delta Air Lines 53,100 2,684,869 Dillard's, Cl. A 40,600 497,350 Dollar General 142,737 2,783,372 Eastman Kodak 134,300 7,990,850 Federated Department Stores 92,800 (a) 3,132,000 Ford Motor 522,600 22,471,800 Gap 369,000 11,531,250 General Motors 232,000 13,470,500 Grainger (W.W.) 40,700 1,254,069 Great Atlantic & Pacific 16,600 275,975 Harley-Davidson 131,600 5,066,600 Harrah's Entertainment 53,000 (a) 1,109,688 Hasbro 74,675 1,124,792 Hilton Hotel 159,700 1,497,188 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER CYCLICAL (CONTINUED) Home Depot 1,003,200 50,097,300 Johnson Controls 37,200 1,908,825 K mart 208,600 (a) 1,421,088 Kohl's 141,400 (a) 7,865,375 Kroger 362,100 (a) 7,988,831 Leggett & Platt 85,200 1,405,800 Limited 186,300 4,028,738 Liz Claiborne 23,700 835,425 Longs Drug Stores 17,100 371,925 Lowe's Cos. 165,800 6,808,163 Marriott International, Cl. A 103,900 3,746,894 Mattel 184,600 2,434,413 May Department Stores 144,150 3,459,600 Maytag 34,000 1,253,750 McDonald's 579,400 19,083,988 NIKE, Cl. B 118,600 4,721,763 Navistar International 26,800 (a) 832,475 Nordstrom 58,400 1,408,900 Office Depot 137,100 (a) 856,875 PACCAR 33,200 1,317,625 Penney (J.C.) 113,200 2,087,125 Polaroid 19,500 352,219 RadioShack 80,900 3,832,638 Reebok International 24,600 (a) 392,063 Rite Aid 112,300 736,969 Russell 14,100 282,000 Safeway 215,300 (a) 9,715,413 Sears, Roebuck & Co. 152,900 4,988,363 Southwest Airlines 215,150 4,074,403 Springs Industries 7,800 251,063 Staples 210,050 (a) 3,229,519 Starbucks 79,600 3,039,725 TJX Cos. 130,100 2,439,375 Target 197,700 11,466,600 Tiffany & Co. 31,400 2,119,500 Toys R Us 93,800 (a) 1,365,963 Tricon Global Restaurants 63,960 (a) 1,806,870 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER CYCLICAL (CONTINUED) US Airways Group 28,900 (a) 1,127,100 V.F. 49,500 1,178,719 Wal-Mart Stores 1,932,700 111,371,838 Walgreen 437,000 14,065,938 Wendy's International 49,300 878,156 Whirlpool 31,700 1,478,013 Winn-Dixie Stores 62,700 897,394 421,755,747 CONSUMER STAPLES--4.6% Alberto-Culver, Cl. B 24,200 739,613 Archer Daniels Midland 261,115 2,562,191 Avon Products 103,000 4,583,500 Bestfoods 119,000 8,240,750 Campbell Soup 183,200 5,335,700 Clorox 101,800 4,561,913 Coca-Cola 1,073,300 61,647,669 Coca-Cola Enterprises 182,400 2,975,400 Colgate-Palmolive 250,100 14,974,738 ConAgra 213,400 4,067,938 Fortune Brands 68,700 1,584,394 General Mills 126,400 4,834,800 Gillette 452,700 15,816,206 Heinz (H.J.) 152,700 6,680,625 Hershey Foods 59,500 2,885,750 International Flavors & Fragrances 44,600 1,346,363 Kellogg 175,900 5,233,025 Nabisco Group Holdings 141,600 3,672,750 National Service Industries 17,700 345,150 Newell Rubbermaid 115,571 2,975,953 Owens-Illinois 63,600 (a) 743,325 PepsiCo 624,900 27,768,994 Procter & Gamble 567,100 32,466,475 Quaker Oats 56,800 4,267,100 Ralston-Purina Group 133,000 2,651,688 SUPERVALU 57,000 1,086,563 Sara Lee 377,100 7,282,744 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES (CONTINUED) Sysco 144,500 6,087,063 Tupperware 25,000 550,000 Unilever, N.V. 247,889 10,659,227 Wrigley, (Wm) Jr 49,500 3,969,281 252,596,888 ENERGY--6.0% Amerada Hess 39,300 2,426,775 Anadarko Petroleum 55,500 2,736,844 Apache 49,300 2,899,456 Baker Hughes 143,220 4,583,040 Burlington Resources 93,390 3,572,168 CMS Energy 47,600 1,053,150 Chevron 282,700 23,976,494 Coastal 92,800 5,649,200 Columbia Energy Group 34,950 2,293,594 Conoco, Cl. B 270,735 6,649,928 Duke Energy 159,309 8,981,045 Eastern Enterprises 11,800 743,400 El Paso Energy 100,300 5,109,031 Enron 317,400 20,472,300 Exxon Mobil 1,509,469 118,493,317 Halliburton 192,500 9,083,594 Kerr-McGee 40,858 2,408,068 Nicor 20,100 655,763 ONEOK 12,700 329,406 Occidental Petroleum 159,800 3,365,788 Peoples Energy 15,300 495,338 Phillips Petroleum 110,100 5,580,694 Rowan Cos. 40,700 (a) 1,236,263 Royal Dutch Petroleum 929,800 57,240,813 Sunoco 38,400 1,130,400 Texaco 239,400 12,748,050 Tosco 62,700 1,775,194 Transocean Sedco Forex 91,300 4,878,844 USX-Marathon Group 135,200 3,388,450 Union Pacific Resources Group 109,344 2,405,568 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY (CONTINUED) Unocal 105,300 3,488,063 Williams Cos. 191,600 7,987,325 327,837,363 HEALTH CARE--11.0% ALZA 44,500 (a) 2,631,063 Abbott Laboratories 671,900 29,941,544 Allergan 56,200 4,186,900 American Home Products 565,500 33,223,125 Amgen 445,200 (a) 31,275,300 Bard (C.R.) 21,900 1,053,938 Bausch & Lomb 23,000 1,779,625 Baxter International 125,900 8,852,344 Becton, Dickinson & Co. 109,500 3,141,281 Biogen 64,400 (a) 4,153,800 Biomet 51,300 1,971,844 Boston Scientific 176,800 (a) 3,878,550 Bristol-Myers Squibb 855,400 49,827,050 Cardinal Health 119,350 8,831,900 Guidant 132,900 (a) 6,578,550 HCA-The Healthcare Company 241,850 7,346,194 HEALTHSOUTH 167,100 (a) 1,201,031 Humana 72,700 (a) 354,413 Johnson & Johnson 603,100 61,440,813 Lilly (Eli) & Co. 489,700 48,908,788 Mallinckrodt Group 29,100 1,264,031 Manor Care 44,300 (a) 310,100 McKesson HBOC 122,146 2,557,432 MedImmune 90,500 6,697,000 Medtronic 519,000 25,852,688 Merck & Co. 997,100 76,402,788 Pfizer 2,729,475 131,014,800 Schering-Plough 634,900 32,062,450 Sigma-Aldrich 37,000 1,082,250 St. Jude Medical 36,300 (a) 1,665,263 Tenet Healthcare 135,600 3,661,200 UnitedHealth Group 70,400 6,036,800 Watson Pharmaceuticals 41,900 (a) 2,252,125 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (CONTINUED) Wellpoint Health Networks 26,900 (a) 1,948,569 603,385,549 INTEREST SENSITIVE--17.1% AFLAC 115,100 5,287,406 Aetna 61,099 3,921,792 Allstate 322,900 7,184,525 American Express 579,300 30,196,013 American General 107,715 6,570,615 American International Group 668,425 78,539,938 Amsouth Bancorp 170,350 2,683,013 Aon 110,925 3,445,608 Associates First Capital, Cl. A 315,838 7,047,135 BB&T 151,100 3,607,513 Bank One 497,310 13,209,797 Bank of America 718,646 30,901,778 Bank of New York 319,800 14,870,700 Bear Stearns Cos. 47,927 1,994,961 Block (H&R) 42,700 1,382,413 CIGNA 70,600 6,601,100 Capital One Financial 84,900 3,788,663 Cendant 312,648 (a) 4,377,072 Charter One Financial 90,900 2,090,700 Chase Manhattan 536,300 24,703,319 Chubb 75,900 4,667,850 Cincinnati Financial 69,700 2,191,194 Citigroup 1,463,311 88,164,488 Comerica 67,800 3,042,525 Conseco 141,001 1,374,760 Countrywide Credit Industries 49,100 1,488,344 Equifax 61,200 1,606,500 Fannie Mae 436,800 22,795,500 Fifth Third Bancorp 134,325 8,496,056 First Data 178,800 8,872,950 First Union 425,190 10,550,027 Firstar 420,633 8,859,583 FleetBoston Financial 390,786 13,286,724 Franklin Resources 105,600 3,207,600 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST SENSITIVE (CONTINUED) Federal Home Loan Mortgage 301,400 12,206,700 General Electric 4,290,100 227,375,300 Golden West Financial 68,600 2,799,738 Hartford Financial Services Group 93,200 5,213,375 Household International 205,225 8,529,664 Huntington Bancshares 96,235 1,521,716 Jefferson-Pilot 44,750 2,525,578 Keycorp 188,500 3,322,313 Lehman Brothers Holdings 52,400 4,955,075 Lincoln National 83,100 3,001,988 Loews 42,800 2,568,000 MBIA 42,700 2,057,606 MBNA 347,687 9,431,010 MGIC Investment 45,900 2,088,450 Marsh & McLennan Cos. 116,850 12,203,522 Mellon Financial 213,000 7,761,188 Merrill Lynch 168,200 19,343,000 Morgan (J.P.) 70,400 7,752,800 Morgan Stanley Dean Witter & Co. 490,834 40,861,931 National City 262,900 4,485,731 Northern Trust 96,400 6,272,025 Old Kent Financial 59,535 1,592,561 PNC Bank 125,900 5,901,563 Paine Webber Group 63,100 2,871,050 Progressive 31,700 2,345,800 Providian Financial 61,800 5,562,000 Regions Financial 95,700 1,902,038 SLM Holding 67,900 2,542,006 Safeco 55,300 1,099,088 Schwab (Charles) 590,475 19,854,722 SouthTrust 72,900 1,649,363 St. Paul Cos. 91,990 3,139,159 State Street 69,800 7,403,163 Summit Bancorp 76,300 1,878,888 SunTrust Banks 131,100 5,989,631 Synovus Financial 122,400 2,157,300 T. Rowe Price Associates 52,400 2,227,000 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST SENSITIVE (CONTINUED) Torchmark 55,600 1,372,625 U.S. Bancorp 326,015 6,275,789 Union Planters 58,700 1,639,931 UnumProvident 104,244 2,091,395 Wachovia 87,800 4,763,150 Washington Mutual 237,509 6,858,072 Wells Fargo 698,700 27,074,625 935,475,791 INTERNET--1.6% America Online 996,200 (a) 52,549,550 3COM 152,100 (a) 8,764,763 Yahoo! 235,600 (a) 29,184,950 90,499,263 PRODUCER GOODS--6.2% Air Products & Chemicals 99,400 3,062,763 Alcan Aluminium 94,900 2,941,900 Alcoa 374,664 10,865,256 Allegheny Technologies 36,066 649,188 American Power Conversion 84,100 3,432,331 Armstrong Holdings 17,500 (a) 267,969 Ashland 30,600 1,072,913 Avery Dennison 48,600 3,262,275 Ball 12,900 415,219 Barrick Gold 171,600 3,120,975 Bemis 23,000 773,375 Bethlehem Steel 57,200 (a) 203,775 Boeing 393,324 16,445,860 Boise Cascade 24,800 641,700 Briggs & Stratton 9,700 332,225 Burlington Northern Santa Fe 185,700 4,259,494 CSX 94,700 2,006,456 Caterpillar 151,200 5,121,900 Centex 25,800 606,300 Cooper Industries 40,400 1,315,525 Crane 26,275 638,811 Crown Cork & Seal 55,600 834,000 Cummins Engine 18,000 490,500 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ PRODUCER GOODS (CONTINUED) Deere & Co. 101,500 3,755,500 Dow Chemical 293,100 8,847,956 duPont (E.I.) deNemours & Co. 454,132 19,868,275 Eastman Chemical 33,300 1,590,075 Ecolab 56,200 2,195,313 Emerson Electric 185,000 11,169,375 Engelhard 55,300 943,556 FMC 13,200 (a) 765,600 FedEx 125,740 (a) 4,778,120 Fluor 33,100 1,046,788 Fort James 89,200 2,062,750 Freeport-McMoRan Copper, Cl. B 69,400 (a) 641,950 General Dynamics 87,000 4,545,750 Genuine Parts 76,650 1,533,000 Georgia-Pacific 73,900 1,939,875 Goodrich (B.F.) 46,500 1,583,906 Goodyear Tire & Rubber 67,800 1,356,000 Grace (W.R.) & Co. 29,300 (a) 355,263 Great Lakes Chemical 23,600 743,400 Hercules 46,500 653,906 Homestake Mining 112,900 776,188 Honeywell International 346,112 11,659,648 Illinois Tool Works 130,800 7,455,600 Inco 78,800 (a) 1,211,550 Ingersoll-Rand 70,150 2,823,538 International Paper 209,483 6,245,212 Kansas City Southern Industries 48,300 4,283,606 Kaufman & Broad Home 20,900 414,081 Kimberly-Clark 240,900 13,821,638 Lockheed Martin 173,600 4,307,450 Louisiana-Pacific 45,200 491,550 Masco 194,500 3,513,156 McDermott International 26,000 229,125 Mead 44,600 1,126,150 Minnesota Mining & Manufacturing 171,600 14,157,000 Newmont Mining 72,819 1,574,711 Norfolk Southern 166,100 2,470,738 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ PRODUCER GOODS (CONTINUED) Northrop Grumman 30,300 2,007,375 Nucor 36,900 1,224,619 Owens-Corning 24,100 222,925 PPG Industries 75,500 3,345,594 Pactiv 73,300 (a) 577,238 Pall 53,601 991,619 Parker-Hannifin 48,550 1,662,838 Pharmacia 550,457 28,451,746 Phelps Dodge 34,133 1,269,321 Placer Dome 142,000 1,357,875 Potlach 12,400 410,750 Praxair 68,400 2,560,725 Pulte 17,900 387,088 Raytheon, Cl. B 147,400 2,837,450 Rockwell International 81,500 2,567,250 Rohm & Haas 94,306 3,253,557 Sealed Air 36,312 (a) 1,901,841 Sherwin-Williams 71,000 1,504,313 Snap-On 25,350 674,944 Stanley Works 38,000 902,500 TRW 53,500 2,320,563 Temple-Inland 22,700 953,400 Textron 62,500 3,394,531 Thomas & Betts 25,100 480,038 Timken 26,400 491,700 Tyco International 731,972 34,677,174 USX-U.S. Steel Group 38,300 710,944 Union Carbide 58,400 2,890,800 Union Pacific 107,500 3,997,656 United Technologies 204,000 12,010,500 Visteon 57,626 698,710 Vulcan Materials 43,700 1,865,444 Westvaco 43,600 1,081,825 Weyerhaeuser 101,000 4,343,000 Willamette Industries 48,000 1,308,000 Worthington Industries 37,400 392,700 339,426,562 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ SERVICES--5.5% ALLTEL 136,700 8,466,856 Allied Waste Industries 81,900 (a) 819,000 American Greetings, Cl. A 28,000 532,000 Automatic Data Processing 272,000 14,569,000 Carnival 262,100 5,110,950 Ceridian 62,900 (a) 1,513,531 Clear Channel Communications 147,000 (a) 11,025,000 Comcast, Cl. A 389,300 (a) 15,766,650 Computer Sciences 72,600 (a) 5,422,313 Convergys 66,500 3,449,688 Deluxe 31,400 739,863 Disney (Walt) 901,000 34,970,063 Donnelley (R.R.) & Sons 52,900 1,193,556 Dow Jones & Co. 38,400 2,812,800 Dun & Bradstreet 70,100 2,006,613 Electronic Data Systems 202,000 8,332,500 Gannett 115,600 6,914,325 Harcourt General 31,100 1,691,063 IMS Health 128,900 2,320,200 Interpublic Group Cos. 130,800 5,624,400 Knight-Ridder 33,700 1,792,419 McGraw-Hill Cos. 84,300 4,552,200 Meredith 22,000 742,500 NEXTEL Communications, Cl. A 328,800 (a) 20,118,450 New York Times, Cl. A 73,700 2,911,150 Omnicom Group 77,000 6,857,813 Paychex 161,025 6,763,050 Quintiles Transnational 49,900 (a) 704,838 Ryder System 25,800 488,588 Sprint (PCS Group) 396,900 (a) 23,615,550 Time Warner 570,500 43,358,000 Tribune 131,200 4,592,000 Viacom, Cl. B 661,308 (a) 45,092,939 Waste Management 269,272 5,116,168 Young & Rubicam 31,300 1,789,969 301,776,005 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY--31.3% ADC Telecommunications 146,300 (a) 12,270,913 Adaptec 45,100 (a) 1,026,025 Adobe Systems 51,900 6,747,000 Advanced Micro Devices 66,400 (a) 5,129,400 Agilent Technologies 195,950 14,451,313 Altera 86,300 (a) 8,797,206 Analog Devices 153,400 (a) 11,658,400 Andrew 34,950 (a) 1,173,009 Apple Computer 141,100 (a) 7,390,113 Applied Materials 350,200 (a) 31,736,875 Autodesk 25,300 877,594 BMC Software 105,900 (a) 3,863,695 Broadcom, Cl. A 93,000 (a) 20,361,188 Cabletron Systems 79,000 (a) 1,994,750 Cisco Systems 3,016,400 (a) 191,729,925 Citrix Systems 80,300 (a) 1,520,681 Compaq Computer 736,272 18,820,953 Computer Associates International 255,125 13,059,211 Compuware 156,300 (a) 1,621,613 Comverse Technology 66,200 (a) 6,156,600 Conexant Systems 94,200 (a) 4,580,475 Corning 119,600 32,277,050 Danaher 61,400 3,035,463 Dell Computer 1,116,600 (a) 55,062,338 Dover 88,000 3,569,500 Eaton 31,500 2,110,500 EMC 940,900 (a) 72,390,494 Gateway 139,500 (a) 7,916,625 Hewlett-Packard 433,700 54,158,288 ITT Industries 38,100 1,157,288 Intel 1,452,200 194,140,931 International Business Machines 768,800 84,231,650 KLA-Tencor 80,600 (a) 4,720,138 LSI Logic 133,100 (a) 7,204,038 Lexmark International Group, Cl. A 56,000 (a) 3,766,000 Linear Technology 134,900 8,625,169 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY (CONTINUED) Lucent Technologies 1,412,047 83,663,785 Maxim Integrated Products 122,600 (a) 8,329,138 Mercury Interactive 34,400 (a) 3,328,200 Micron Technology 240,600 (a) 21,187,838 Microsoft 2,281,900 (a) 182,552,000 Millipore 20,000 1,507,500 Molex 85,075 4,094,234 Motorola 933,306 27,124,206 NCR 41,300 (a) 1,608,119 National Semiconductor 76,600 (a) 4,347,050 Network Appliance 132,100 (a) 10,634,050 Nortel Networks 1,284,480 87,665,760 Novell 142,800 (a) 1,320,900 Novellus Systems 56,600 (a) 3,201,438 Oracle 1,230,850 (a) 103,468,328 Parametric Technology 119,700 (a) 1,316,700 PE Biosystems Group 90,300 (a) 5,948,513 PeopleSoft 119,700 (a) 2,004,975 PerkinElmer 21,300 1,408,463 Pitney Bowes 111,800 4,472,000 QUALCOMM 321,300 (a) 19,278,000 Sabre Group Holdings 55,999 1,595,972 Sanmina 64,300 5,497,650 Sapient 25,500 2,726,906 Schlumberger 246,800 18,417,450 Scientific-Atlanta 69,100 5,147,950 Seagate Technology 98,500 (a) 5,417,500 Siebel Systems 86,600 (a) 14,164,513 Solectron 258,500 (a) 10,824,688 Sun Microsystems 687,900 (a) 62,555,906 Tektronix 20,900 1,546,600 Tellabs 177,600 (a) 12,154,500 Teradyne 75,100 (a) 5,519,850 Texas Instruments 709,600 48,740,650 Thermo Electron 67,600 (a) 1,423,825 Unisys 135,200 (a) 1,968,850 Veritas Software 169,500 (a) 19,156,148 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY (CONTINUED) Xerox 288,900 5,994,675 Xilinx 139,300 (a) 11,500,956 1,712,148,197 UTILITIES--7.3% AT&T 1,627,220 51,460,832 AES 184,800 (a) 8,431,500 Ameren 59,500 2,008,125 American Electric Power 139,460 4,131,503 Bell Atlantic 670,260 34,057,586 BellSouth 815,900 34,777,738 CP&L Energy 69,200 2,210,075 CINergy 68,900 1,752,644 CenturyTel 60,850 1,749,438 Consolidated Edison 91,900 2,722,538 Constellation Energy Group 64,900 2,113,306 DTE Energy 61,900 1,891,819 Dominion Resources 103,193 4,424,400 Edison International 144,100 2,954,050 Entergy 99,700 2,710,594 FPL Group 77,300 3,826,350 FirstEnergy 100,100 2,339,838 Florida Progress 42,800 2,006,250 GPU 52,600 1,423,488 GTE 417,500 25,989,375 Global Crossing 382,440 (a) 10,062,953 WorldCom 1,241,454 (a) 56,951,702 New Century Energies 50,500 1,515,000 Niagara Mohawk Power 74,700 (a) 1,041,131 Northern States Power 68,100 1,374,769 PG&E 167,100 4,114,838 PECO Energy 73,500 2,962,969 PPL 62,600 1,373,288 Pinnacle West Capital 36,700 1,243,213 Public Service Enterprise Group 93,800 3,247,825 Reliant Energy 128,239 3,791,065 SBC Communications 1,475,062 63,796,432 Sempra Energy 88,591 1,506,047 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (CONTINUED) Southern 281,300 6,557,806 Sprint (FON Group) 380,100 19,385,100 TXU 114,330 3,372,735 UniCom 77,100 2,982,806 U S West 220,166 18,879,235 397,140,363 TOTAL COMMON STOCKS (cost $3,766,213,369) 5,437,576,840 - ------------------------------------------------------------------------------------------------------------------------------------ Principal SHORT-TERM INVESTMENTS-.8% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENTS-.7% Greenwich Capital Markets, 6.58% dated 6/30/2000, due 7/3/2000 in the amount of $39,669,660 (fully collateralized by $37,488,000 of various U.S. Government Securities, total value $40,441,043) 39,647,920 39,647,920 U.S. TREASURY BILLS-.1% 5.47%, 8/17/2000 100,000 (b) 99,301 5.56%, 8/31/2000 5,000,000 (b) 4,954,250 5,053,551 TOTAL SHORT-TERM INVESTMENTS (cost $44,700,058) 44,701,471 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $3,810,913,427) 100.1% 5,482,278,311 LIABILITIES, LESS CASH AND RECEIVABLES (.1%) (7,777,460) NET ASSETS 100.0% 5,474,500,851 A NON-INCOME PRODUCING. B PARTIALLY HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL FUTURE POSITIONS. SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF FINANCIAL FUTURES June 30, 2000 (Unaudited) Market Value Unrealized Covered (Depreciation) Contracts by Contracts ($) Expiration at 6/30/2000 ($) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL FUTURES LONG Standard & Poor's 500 132 48,447,300 September 2000 (74,256) SEE NOTES TO FINANCIAL STATEMENTS.
The Fund STATEMENT OF ASSETS AND LIABILITIES June 30, 2000 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments--Note 1(b) 3,810,913,427 5,482,278,311 Cash 193,176 Dividends and interest receivable 13,780,951 Receivable for shares of Common Stock subscribed 2,028,997 Receivable for investment securities sold 1,931,656 Receivable for futures variation margin--Note 4(a) 384,203 Prepaid expenses 8,286 5,500,605,580 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 1,105,301 Payable for investment securities purchased 24,517,653 Payable for shares of Common Stock redeemed 307,566 Accrued expenses 174,209 26,104,729 - -------------------------------------------------------------------------------- NET ASSETS ($) 5,474,500,851 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 3,773,010,09 Accumulated undistributed investment income--net 9,684,483 Accumulated net realized gain (loss) on investments 20,515,643 Accumulated net unrealized appreciation (depreciation) on investments [including ($74,256) net unrealized (depreciation) on financial futures]--Note 4(b) 1,671,290,628 - -------------------------------------------------------------------------------- NET ASSETS ($) 5,474,500,851 - -------------------------------------------------------------------------------- SHARES OUTSTANDING (200 million shares of $.001 par value Common Stock authorized) 143,974,009 NET ASSET VALUE, offering and redemption price per share ($) 38.02 SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF OPERATIONS Six Months Ended June 30, 2000 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends (net of $163,166 foreign taxes withheld at source) 39,230,133 Interest 2,034,920 TOTAL INCOME 41,265,053 EXPENSES: Management fee--Note 3(a) 6,411,957 Registration fees 79,947 Prospectus and shareholders' reports 56,729 Professional fees 39,234 Directors' fees and expenses--Note 3(c) 19,368 Loan commitment fees--Note 2 18,206 Shareholder servicing costs--Note 3(b) 3,124 Miscellaneous 50,962 TOTAL EXPENSES 6,679,527 INVESTMENT INCOME--NET 34,585,526 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments 26,993,588 Net realized gain (loss) on financial futures 3,585,239 NET REALIZED GAIN (LOSS) 30,578,827 Net unrealized appreciation (depreciation) on investments [including ($1,695,696) net unrealized (depreciation) on financial futures] (91,759,761) NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (61,180,934) NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (26,595,408) SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF CHANGES IN NET ASSETS Six Months Ended June 30, 2000 Year Ended (Unaudited) December 31, 1999 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income--net 34,585,526 48,591,896 Net realized gain (loss) on investments 30,578,827 24,077,781 Net unrealized appreciation (depreciation) on investments (91,759,761) 754,135,017 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (26,595,408) 826,804,694 - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income--net (25,547,390) (47,945,549) Net realized gain on investments (5,891,134) (41,840,248) TOTAL DIVIDENDS (31,438,524) (89,785,797) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold 835,903,564 1,770,669,411 Dividends reinvested 31,438,602 89,785,797 Cost of shares redeemed (564,513,686) (808,309,981) INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 302,828,480 1,052,145,227 TOTAL INCREASE (DECREASE) IN NET ASSETS 244,794,548 1,789,164,124 - -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 5,229,706,303 3,440,542,179 END OF PERIOD 5,474,500,851 5,229,706,303 Undistributed investment income--net 9,684,483 646,347 - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS (SHARES): Shares sold 22,180,021 50,987,939 Shares issued for dividends reinvested 812,478 2,504,918 Shares redeemed (15,030,376) (23,266,719) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 7,962,123 30,226,138 SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund 's financial statements. Six Months Ended June 30, 2000 Year Ended December 31, ---------------------------------------------------------------- (Unaudited) 1999 1998 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 38.45 32.52 25.75 20.28 17.20 12.94 Investment Operations: Investment income--net .25(a) .40(a) .37 .37 .39 .33 Net realized and unrealized gain (loss) on investments (.46) 6.24 6.85 6.26 3.43 4.39 Total from Investment Operations (.21) 6.64 7.22 6.63 3.82 4.72 Distributions: Dividends from investment income--net (.18) (.38) (.38) (.37) (.39) (.33) Dividends from net realized gain on investments (.04) (.33) (.07) (.79) (.35) (.13) Total Distributions (.22) (.71) (.45) (1.16) (.74) (.46) Net asset value, end of period 38.02 38.45 32.52 25.75 20.28 17.20 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (.55)(b) 20.60 28.21 32.96 22.54 36.78 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .13(b) .26 .26 .28 .30 .39 Ratio of net investment income to average net assets .66(b) 1.13 1.35 1.66 2.24 2.38 Decrease reflected in above expense ratios due to undertakings by The Dreyfus Corporation -- -- -- -- -- .03 Portfolio Turnover Rate 2.06(b) 2.64 2.40 3.53 10.92 11.95 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 5,474,501 5,229,706 3,440,542 1,868,672 813,959 312,686 (A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--Significant Accounting Policies: Dreyfus Stock Index Fund (the "fund") is registered under the Investment Company Act of 1940, as amended (the "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. Dreyfus is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation. Effective March 22, 2000, Dreyfus Service Corporation (" DSC" ), a wholly-owned subsidiary of Dreyfus, became the distributor of the fund' s shares, which are sold to the public without a sales charge. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Directors. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, amortization of discount on investments, is recognized on the accrual basis. The fund may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the fund' s Manager, subject to the seller's agreement to repurchase and the fund's agreement to resell such securities at a mutually agreed upon price. Securities purchased subject to repurchase agreements are deposited with the fund's custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the fund will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the fund maintains the right to sell the underlying securities at market value and may claim any resulting loss against the seller. (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 of 1986, as amended (the "Code"). To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the fund not to distribute such gain. (d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable pro- NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) visions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes. NOTE 2--Bank Line of Credit: The fund participates with other Dreyfus-managed funds in a $500 million redemption credit facility (the "Facility" ) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund at rates based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2000, the fund did not borrow under the Facility. NOTE 3--Management Fee, Index Management Fee and Other Transactions With Affiliates: (a) Pursuant to an Management Agreement with Dreyfus, the management 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 index-management fee at the annual rate of .095 of 1% of the value of the fund' s average daily net assets. Dreyfus has undertaken from January 1, 2000 until such a time as they give shareholders at least 180 days notice to the contrary that if any full fiscal year the fund's aggregate expenses exclusive of brokerage commissions, transaction fees and extraordinary expenses, exceed an annual rate of .40 of 1% of the fund's average daily net assets, the fund may deduct from the payments to be made to Dreyfus, or Dreyfus will bear, such excess expense. During the period ended June 30, 2000, there was no expense reimbursement pursuant to the undertaking. (b) Under the Shareholder Services Plan, the fund reimburses DSC 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. The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended June 30, 2000, the fund was charged $282 pursuant to the transfer agency agreement. (c) Each Board member also serves a Board member of other funds within the Dreyfus complex (collectively, the "Fund Group"). Effective April 25, 2000, each Board member who is not an "affiliated person" as defined in the Act receives an annual fee of $25,000 and an attendance fee of $4,000 for each in person meeting and $500 for telephone meetings. These fees are allocated among the funds in the Fund Group. The Chairman of the Board receives an additional 25% of such compensation. Prior to April 25, 2000, each Board member who was not an " affiliated person" as defined in the Act received from the fund an annual fee of $2,500 and an attendance fee of $500 per meeting. The Chairman of the Board received an additional 25% of such compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board Members, if any, receive 50% of the fund's annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. 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 June 30, 2000, amounted to $441,177,398 and $107,320,055, 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 Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) 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 June 30, 2000 are set forth in the Statement of Financial Futures. (b) At June 30, 2000, accumulated net unrealized appreciation on investments and financial futures was $1,671,290,628, consisting of $1,968,695,269 gross unrealized appreciation and $297,404,641 gross unrealized depreciation. At June 30, 2000, 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). NOTES For More Information 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 02109 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Distributor Dreyfus Service Corporation 200 Park Avenue New York, NY 10166 To obtain information: BY TELEPHONE Call 1-800-554-4611 or 516-338-3300 BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard Uniondale, NY 11556-0144 Attn: Institutional Servicing (c) 2000 Dreyfus Service Corporation 763SA006 -----END PRIVACY-ENHANCED MESSAGE-----