N-30D 1 0001.txt ANNUAL REPORT Dreyfus Stock Index Fund ANNUAL REPORT December 31, 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 Fund Performance 7 Statement of Investments 22 Statement of Financial Futures 23 Statement of Assets and Liabilities 24 Statement of Operations 25 Statement of Changes in Net Assets 26 Financial Highlights 27 Notes to Financial Statements 33 Report of Independent Accountants 34 Important Tax Information FOR MORE INFORMATION --------------------------------------------------------------------------- Back Cover The Fund Dreyfus Stock Index Fund LETTER FROM THE PRESIDENT Dear Shareholder: We are pleased to present this annual report for Dreyfus Stock Index Fund, covering the 12-month period from January 1, 2000 through December 31, 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. After five consecutive years of double-digit gains, the U.S. stock market, as measured by the Standard & Poor's 500 Composite Stock Price Index, declined more than 9% in 2000. Most other major stock market indices declined as well. The reasons for the disappointing year varied, ranging from sky-high valuations of technology stocks to slowing economic growth during the second half of the year While the start of a new year is almost always a good time to review your investment strategies, recent market events may have altered the way your assets are apportioned among various asset classes, market-capitalization ranges and investment styles. You may wish to consider rebalancing your portfolio to help achieve your long-term financial goals. We encourage you to contact your financial advisor for more information about ways to refine your investment strategies for the coming year. To speak with a Dreyfus customer service representative call 1-800-782-6620, or visit our website at www.dreyfus.com. Thank you for your confidence and support in 2000, and we look forward to working with you in 2001. Sincerely, Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation January 16, 2001 DISCUSSION OF FUND PERFORMANCE Steven Falci and Jocelin Reed, Portfolio Managers How did Dreyfus Stock Index Fund perform relative to its benchmark? For the 12-month period ended December 31, 2000, Dreyfus Stock Index Fund produced a total return of -9.28%.(1) In contrast, the fund's benchmark, the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index"), produced a total return of -9.10% 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 weightings 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? From the beginning of the reporting period through mid-March 2000, technology stocks produced the lion' s share of gains in the U.S. stock market -- particularly those high-flying technology stocks providing Internet-related products and services. While technology stocks rose sharply through mid-March, most other industry sectors lagged far behind. In fact, the technology-laden Nasdaq Composite Index recorded its high for the year in mid-March. During this early period of technology dominance, growth-oriented stocks generally produced higher returns than value-oriented stocks. However, beginning in mid-March, technology stocks began to decline amidst concerns over continued strong economic growth, rising interest rates and fears of a possible resurgence of inflation. Investors grew concerned over the possible effects that such an environment could have on already high stock valuations. Soon thereafter, the economy began to show signs of slowing, and investors' concerns shifted once again. As questions arose about the sustainability of corporate earnings growth, investors turned away from technology stocks and toward traditional value-oriented industry groups such as health care, financial services, utilities and consumer staples. Over the entire reporting period, the largest gains within the S&P 500 -- and therefore for the fund -- came from the electrical defense area of an otherwise battered technology group. In addition, the S&P 500 Index's financial, consumer staples and consumer cyclicals holdings provided strong returns, as did health care stocks including HMOs and hospital management companies. Energy stocks also provided positive returns, most notably within the natural gas and oil exploration and production areas. On the other hand, the poorest performing area of the S&P 500 Index was the communication services group, which includes long-distance telecommunications companies. In addition, basic materials stocks, including companies within the metals, steel and glass and metal containers areas, provided disappointing returns. Other industry groups posting negative returns included capital goods companies such as office equipment and supply firms. And while the technology sector's electrical defense stocks posted positive returns for the reporting period, other areas within technology reported losses for the same period, including computer software, communications equipment and photography and imaging companies What is the fund's current strategy? The fund is an index fund and seeks to provide broad diversified exposure to the large-capitalization U.S. equity market by attempting to replicate the return of the S&P 500 Index. Accordingly, we intend to maintain our strategy of investing in all 500 stocks in the S&P 500 Index in proportion to their weighting in the Index. As of the end of the reporting period, approximately 22% of the Index's and the fund' s assets were invested in technology stocks, followed by 17% in interest-sensitive companies, 14% in health care, 11% in consumer staples, 9% in producer goods, 8% in consumer cyclicals, 6% in energy, 5% in communications services, 4% in utilities and 2% in basic materials. January 16, 2001 (1) EFFECTIVE DECEMBER 31, 2000, EXISTING FUND SHARES WERE DESIGNATED AS INITIAL SHARES AND THE FUND BEGAN OFFERING A SECOND CLASS OF SHARES, DESIGNATED AS SERVICE SHARES, WHICH ARE SUBJECT TO A RULE 12B-1 DISTRIBUTION PLAN. THE PERFORMANCE INFORMATION PRESENTED IS FOR INITIAL SHARES. 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 FUND PERFORMANCE Comparison of change in value of $10,000 investment in Dreyfus Stock Index Fund Initial shares and the Standard & Poor's 500 Composite Stock Price Index -------------------------------------------------------------------------------- Average Annual Total Returns AS OF 12/31/00
1 Year 5 Years 10 Years ------------------------------------------------------------------------------------------------------------------------------------ FUND--INITIAL SHARES (9.28)% 17.98% 16.97%
((+)) SOURCE: LIPPER INC. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE FUND'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL CHARGES AND EXPENSES IMPOSED IN CONNECTION WITH INVESTING IN VARIABLE INSURANCE CONTRACTS WHICH WILL REDUCE RETURNS. THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN INITIAL SHARES OF DREYFUS STOCK INDEX FUND ON 12/31/90 TO A $10,000 INVESTMENT MADE IN THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE FEES AND EXPENSES OF THE FUND. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE, WHICH DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT. EFFECTIVE DECEMBER 31, 2000, EXISTING FUND SHARES WERE DESIGNATED AS INITIAL SHARES AND THE FUND BEGAN OFFERING A SECOND CLASS OF SHARES, DESIGNATED AS SERVICE SHARES, WHICH ARE SUBJECT TO A RULE 12B-1 DISTRIBUTION PLAN. PERFORMANCE FOR SERVICE SHARES WILL VARY FROM THE PERFORMANCE OF INITIAL SHARES BECAUSE OF DIFFERENCES IN CHARGES AND EXPENSES. STATEMENT OF INVESTMENTS December 31, 2000
COMMON STOCKS--98.2% Shares Value ($) ----------------------------------------------------------------------------------------------------------------------------------- ALCOHOL & TOBACCO--1.3% Anheuser-Busch Cos. 387,400 17,626,700 Brown-Forman, Cl. B 29,400 1,955,100 Coors (Adolph), Cl. B 15,800 1,268,938 Philip Morris Cos. 954,400 41,993,600 UST 69,700 1,955,956 64,800,294 CONSUMER CYCLICAL--8.1% AMR 64,300 (a) 2,519,756 Albertson's 180,877 4,793,241 AutoZone 54,800 (a) 1,561,800 Bed Bath & Beyond 121,600 (a) 2,720,800 Best Buy 88,900 (a) 2,628,106 Black & Decker 35,800 1,405,150 Brunswick 37,700 619,694 CVS 168,000 10,069,500 Circuit City Stores - Circuit City Group 88,300 1,015,450 Consolidated Stores 47,600 (a) 505,750 Cooper Tire and Rubber 31,700 336,813 Costco Wholesale 191,900 (a) 7,664,006 Dana 64,206 983,154 Darden Restaurants 51,300 1,173,488 Delphi Automotive Systems 240,403 2,704,534 Delta Air Lines 52,600 2,639,863 Dillard's, Cl. A 40,200 474,863 Dollar General 141,437 2,669,623 Eastman Kodak 128,900 5,075,438 Federated Department Stores 86,700 (a) 3,034,500 Ford Motor 804,430 18,853,828 Gap 365,500 9,320,250 General Motors 242,300 12,342,156 Grainger (W.W.) 40,400 1,474,600 Harley-Davidson 130,400 5,183,400 Harrah's Entertainment 50,200 (a) 1,324,025 Hasbro 73,875 784,922 Hilton Hotel 158,200 1,661,100 Home Depot 994,700 45,445,356 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER CYCLICAL (CONTINUED) Johnson Controls 36,800 1,913,600 K mart 207,600 (a) 1,102,875 Kohl's 141,800 (a) 8,649,800 Kroger 353,500 (a) 9,566,594 Leggett & Platt 84,400 1,598,325 Limited 182,800 3,119,025 Liz Claiborne 22,300 928,238 Longs Drug Stores 16,900 407,713 Lowe's Cos. 164,600 7,324,700 Marriott International, Cl. A 102,900 4,347,525 Mattel 182,900 2,641,076 May Department Stores 127,950 4,190,363 Maytag 33,700 1,088,931 McDonald's 563,200 19,148,800 NIKE, Cl. B 116,000 6,474,250 Navistar International 25,500 (a) 667,781 Nordstrom 56,000 1,018,500 Office Depot 128,000 (a) 912,000 PACCAR 32,900 1,620,325 Penney (J.C.) 112,100 1,219,088 RadioShack 80,200 3,433,563 Reebok International 24,300 (a) 664,362 Safeway 215,200 (a) 13,450,000 Sears, Roebuck & Co. 143,500 4,986,625 Southwest Airlines 215,550 7,227,392 Staples 195,250 (a) 2,306,391 Starbucks 80,400 3,557,700 Starwood Hotels & Resorts 83,100 2,929,275 TJX Cos. 120,800 3,352,200 Target 385,000 12,416,250 Tiffany & Co. 62,300 1,970,238 Toys R Us 87,600 (a) 1,461,825 Tricon Global Restaurants 63,260 (a) 2,087,580 US Airways Group 28,600 (a) 1,160,088 V.F. 49,000 1,775,760 Visteon 55,825 641,988 COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER CYCLICAL (CONTINUED) Wal-Mart Stores 1,918,500 101,920,313 Walgreen 434,300 18,159,169 Wendy's International 48,900 1,283,625 Whirlpool 28,600 1,363,863 Winn-Dixie Stores 59,900 1,160,563 416,233,445 CONSUMER STAPLES--5.4% Alberto-Culver, Cl. B 23,900 1,023,219 Archer Daniels Midland 271,650 4,074,750 Avon Products 102,000 4,883,250 Campbell Soup 181,500 6,284,438 Clorox 100,800 3,578,400 Coca-Cola 1,065,100 64,904,531 Coca-Cola Enterprises 179,500 3,410,500 Colgate-Palmolive 245,800 15,866,390 ConAgra Foods 228,700 5,946,200 Fortune Brands 66,400 1,992,000 General Mills 121,400 5,409,888 Gillette 452,700 16,353,788 Heinz (H.J.) 149,400 7,087,163 Hershey Foods 58,900 3,791,688 International Flavors & Fragrances 42,000 853,125 Kellogg 174,200 4,572,750 National Service Industries 17,500 449,531 Newell Rubbermaid 114,471 2,604,215 PepsiCo 620,600 30,758,488 Procter & Gamble 559,500 43,885,781 Quaker Oats 57,000 5,550,375 Ralston-Purina Group 131,800 3,443,275 SUPERVALU 56,500 783,938 Sara Lee 357,600 8,783,550 Sysco 286,200 8,586,000 Tupperware 24,800 506,850 Unilever, N.V. 245,489 15,450,464 Wrigley, (Wm.) Jr. 49,000 4,694,813 275,529,360 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ ENERGY--7.7% Amerada Hess 38,900 2,842,131 Anadarko Petroleum 106,851 7,594,969 Apache 52,500 3,678,281 Baker Hughes 141,820 5,894,394 Burlington Resources 92,490 4,670,745 Chevron 275,600 23,270,975 Coastal 92,200 8,142,413 Conoco, Cl. B 268,235 7,762,050 Devon Energy 54,900 3,347,253 Duke Energy 158,309 13,495,842 EOG Resources 50,000 2,734,375 El Paso Energy 99,900 7,155,338 Enron 320,600 26,649,875 Exxon Mobil 1,493,069 129,803,686 Halliburton 190,000 6,887,500 Kerr-McGee 40,358 2,701,464 KeySpan 57,500 2,436,563 Kinder Morgan 49,200 2,567,625 McDermott International 25,800 277,350 Nabors Industries 63,100 3,732,365 Nicor 20,000 863,750 NiSource 87,500 2,690,625 ONEOK 12,500 601,563 Occidental Petroleum 158,300 3,838,775 Peoples Energy 15,200 680,200 Phillips Petroleum 109,600 6,233,500 Rowan Cos. 40,300 (a) 1,088,100 Royal Dutch Petroleum 921,000 55,778,063 Schlumberger 245,900 19,656,631 Sunoco 36,500 1,229,594 Texaco 237,100 14,729,838 Tosco 62,100 2,107,519 Transocean Sedco Forex 90,400 4,158,400 USX-Marathon Group 133,900 3,715,725 Unocal 104,300 4,035,106 Williams Cos. 189,000 7,548,188 394,600,771 COMMON STOCKS (CONTINUED) Shares Value ($) ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE--13.7% ALZA 101,700 (a) 4,322,250 Abbott Laboratories 664,300 32,177,031 Allergan 56,500 5,469,906 American Home Products 562,900 35,772,295 Amgen 443,700 (a) 28,369,069 Applera - Applied Biosystems Group 90,400 8,503,250 Bard (C.R.) 21,700 1,010,406 Bausch & Lomb 22,800 921,975 Baxter International 126,300 11,153,869 Becton, Dickinson & Co. 108,400 3,753,350 Biogen 63,800 (a) 3,831,988 Biomet 76,200 3,024,188 Boston Scientific 174,100 (a) 2,382,994 Bristol-Myers Squibb 839,200 62,048,350 Cardinal Health 119,550 11,910,169 Chiron 82,300 3,662,350 Forest Laboratories 37,600 4,996,100 Guidant 132,000 (a) 7,119,750 HCA-Healthcare 237,250 10,441,373 HEALTHSOUTH 165,600 (a) 2,701,350 Humana 72,100 (a) 1,099,525 Johnson & Johnson 597,900 62,816,869 King Pharmaceuticals 72,500 3,747,344 Lilly (Eli) & Co. 483,800 45,023,638 Manor Care 43,900 (a) 905,438 McKesson HBOC 122,146 4,383,820 MedImmune 90,200 4,301,413 Medtronic 515,200 31,105,200 Merck & Co. 990,500 92,735,563 Pfizer 2,709,775 124,649,650 Pharmacia 553,557 33,766,977 Schering-Plough 628,000 35,639,000 St. Jude Medical 36,000 (a) 2,211,750 Stryker 83,500 4,224,265 Tenet Healthcare 135,400 6,016,838 Watson Pharmaceuticals 43,800 (a) 2,242,013 Wellpoint Health Networks 27,000 (a) 3,111,750 701,553,066 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) ----------------------------------------------------------------------------------------------------------------------------------- INTEREST SENSITIVE--21.6% AFLAC 114,000 8,229,375 Aetna 60,499 2,484,240 Allstate 314,100 13,682,981 Ambac Financial Group 45,600 2,659,050 American Express 571,200 31,380,300 American General 108,615 8,852,123 American International Group 999,787 98,541,506 Amsouth Bancorp 161,950 2,469,738 Aon 109,925 3,764,931 BB&T 170,300 6,354,319 Bank One 496,910 18,199,329 Bank of America 698,546 32,045,798 Bank of New York 317,500 17,522,031 Bear Stearns Cos. 46,327 2,348,200 Block (H&R) 39,600 1,638,450 CIGNA 65,900 8,718,570 CIT Group, Cl. A 113,000 2,274,125 Capital One Financial 84,400 5,554,575 Cendant 312,248 (a) 3,005,387 Charter One Financial 89,300 2,578,538 Chase Manhattan 562,800 25,572,225 Chubb 75,200 6,504,800 Cincinnati Financial 69,100 2,733,769 Citigroup 2,159,022 110,245,061 Comerica 67,200 3,990,000 Conseco 139,701 1,842,307 Countrywide Credit Industries 48,700 2,447,175 Equifax 60,600 1,738,463 Fannie Mae 433,200 37,580,100 Fifth Third Bancorp 198,387 11,853,623 First Data 169,600 8,935,800 First Union 420,790 11,703,222 Firstar 408,033 9,486,767 FleetBoston Financial 388,086 14,577,480 Franklin Resources 104,600 3,985,260 Federal Home Loan Mortgage 298,600 20,566,075 General Electric 4,255,900 204,017,206 COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ INTEREST SENSITIVE (CONTINUED) Golden West Financial 67,900 4,583,250 Hartford Financial Services Group 96,500 6,815,313 Household International 202,225 11,122,375 Huntington Bancshares 108,058 1,749,189 Jefferson-Pilot 44,250 3,307,688 Keycorp 182,900 5,121,200 Lehman Brothers Holdings 102,400 6,924,800 Lincoln National 82,400 3,898,550 Loews 42,400 4,391,050 MBIA 42,300 3,135,488 MBNA 366,287 13,529,726 MGIC Investment 45,500 3,068,406 Marsh & McLennan Cos. 118,150 13,823,550 Mellon Financial 209,900 10,324,456 Merrill Lynch 347,900 23,722,431 MetLife 328,400 11,494,000 Morgan (J.P.) 68,400 11,320,200 Morgan Stanley Dean Witter & Co. 481,034 38,121,945 National City 261,200 7,509,500 Northern Trust 95,500 7,789,219 Old Kent Financial 59,035 2,582,781 PNC Bank 124,700 9,110,894 Progressive 31,400 3,253,825 Providian Financial 122,800 7,061,000 Regions Financial 94,800 2,589,225 Safeco 54,800 1,801,550 Schwab (Charles) 593,675 16,845,528 SouthTrust 72,200 2,937,638 St. Paul Cos. 93,490 5,077,676 State Street 69,300 8,607,753 Stilwell Financial 95,500 3,766,281 Summit Bancorp 75,600 2,886,975 SunTrust Banks 127,200 8,013,600 Synovus Financial 122,200 3,291,763 T. Rowe Price 51,900 2,193,586 Torchmark 55,000 2,114,063 U.S. Bancorp 323,515 9,442,594 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) ----------------------------------------------------------------------------------------------------------------------------------- INTEREST SENSITIVE (CONTINUED) USA Education 70,300 4,780,400 Union Planters 58,100 2,077,075 UnitedHealth Group 138,200 8,482,025 UnumProvident 103,344 2,777,370 Wachovia 87,400 5,080,125 Washington Mutual 231,709 12,295,059 Wells Fargo 733,200 40,830,075 1,109,734,096 INTERNET--.8% America Online 1,002,400 (a) 34,883,520 Broadvision 115,600 (a) 1,365,525 Yahoo! 239,800 (a) 7,235,216 43,484,261 PRODUCER GOODS--7.2% Air Products & Chemicals 98,500 4,038,500 Alcan Aluminium 138,700 4,741,806 Alcoa 372,364 12,474,194 Allegheny Technologies 35,666 566,198 American Power Conversion 83,300 1,030,838 Ashland 30,300 1,087,467 Avery Dennison 48,200 2,644,975 Ball 12,800 589,600 Barrick Gold 169,900 2,782,962 Bemis 22,800 765,225 Boeing 381,324 25,167,384 Boise Cascade 24,600 827,175 Briggs & Stratton 9,600 426,000 Burlington Northern Santa Fe 169,600 4,801,800 CSX 93,800 2,432,938 Caterpillar 147,600 6,983,325 Centex 25,500 957,844 Cooper Industries 40,000 1,837,500 Crane 25,975 738,664 Cummins Engine 17,800 675,288 Deere & Co. 100,500 4,604,156 Dow Chemical 291,600 10,679,850 duPont (E.I.) deNemours & Co. 448,332 21,660,040 COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ PRODUCER GOODS (CONTINUED) Eastman Chemical 32,900 1,603,875 Ecolab 54,600 2,358,038 Emerson Electric 183,700 14,477,856 Engelhard 54,800 1,116,550 FMC 13,000 (a) 931,938 FedEx 122,540 (a) 4,896,698 Freeport-McMoRan Copper, Cl. B 63,800 (a) 546,288 General Dynamics 85,300 6,653,400 Genuine Parts 74,350 1,947,041 Georgia-Pacific 96,672 3,008,916 Goodrich (B.F.) 43,600 1,585,950 Goodyear Tire & Rubber 67,200 1,544,928 Great Lakes Chemical 22,500 836,719 Hercules 46,000 876,875 Homestake Mining 113,000 473,188 Honeywell International 342,512 16,205,099 Illinois Tool Works 129,800 7,731,213 Inco 78,000 (a) 1,307,280 Ingersoll-Rand 69,450 2,908,219 International Paper 207,483 8,467,900 Kaufman & Broad Home 18,400 619,850 Kimberly-Clark 229,300 16,209,217 Lockheed Martin 185,000 6,280,750 Louisiana-Pacific 44,700 452,588 Masco 191,700 4,924,294 Mead 43,200 1,355,400 Minnesota Mining & Manufacturing 170,000 20,485,000 Molex 84,275 2,991,763 Newmont Mining 72,119 1,230,530 Norfolk Southern 164,600 2,191,238 Northrop Grumman 30,800 2,556,400 Nucor 33,400 1,325,563 PPG Industries 72,500 3,357,656 Pactiv 67,900 (a) 840,263 Pall 53,101 1,131,715 Parker-Hannifin 50,050 2,208,456 Phelps Dodge 33,833 1,888,304 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ PRODUCER GOODS (CONTINUED) Placer Dome 140,700 1,354,238 Potlach 12,300 412,819 Praxair 67,700 3,004,188 Pulte 17,700 746,719 Raytheon, Cl. B 146,000 4,535,125 Rockwell International 79,600 3,790,950 Rohm & Haas 94,406 3,428,118 Sealed Air 35,912 (a) 1,095,316 Sherwin-Williams 69,000 1,815,563 Sigma-Aldrich 33,200 1,305,175 Snap-On 25,150 701,056 Stanley Works 37,600 1,172,650 TRW 53,400 2,069,250 Temple-Inland 21,900 1,174,388 Textron 61,900 2,878,350 Thomas & Betts 24,900 403,069 Timken 26,200 396,275 Tyco International 751,272 41,695,596 USX-U.S. Steel Group 38,000 684,000 Union Carbide 57,900 3,115,744 Union Pacific 106,500 5,404,875 United Technologies 201,300 15,827,213 Vulcan Materials 43,300 2,072,988 Westvaco 43,200 1,260,900 Weyerhaeuser 94,500 4,795,875 Willamette Industries 47,600 2,234,225 Worthington Industries 37,000 298,313 369,713,665 SERVICES--4.9% ALLTEL 134,300 8,385,356 Allied Waste Industries 84,600 (a) 1,231,988 American Greetings, Cl. A 27,700 261,419 Automatic Data Processing 271,100 17,164,019 Carnival 251,000 7,733,938 Ceridian 62,300 (a) 1,242,106 Clear Channel Communications 251,800 (a) 12,196,563 Comcast, Cl. A 387,800 (a) 16,190,650 COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ SERVICES (CONTINUED) Computer Sciences 72,300 (a) 4,347,038 Convergys 65,900 2,986,094 Deluxe 31,100 785,897 Disney (Walt) 895,300 25,907,744 Donnelley (R.R.) & Sons 52,400 1,414,800 Dow Jones & Co. 37,600 2,129,100 Electronic Data Systems 200,600 11,584,650 Fluor 32,800 1,084,450 Gannett 113,400 7,151,288 Harcourt General 31,400 1,796,080 IMS Health 126,100 3,404,700 Interpublic Group Cos. 132,300 5,631,019 Knight-Ridder 31,500 1,791,563 McGraw-Hill Cos. 83,500 4,895,188 Meredith 21,800 701,688 Moodys 69,500 1,785,281 NEXTEL Communications, Cl. A 327,400 (a) 8,103,150 New York Times, Cl. A 69,900 2,800,369 Omnicom Group 76,300 6,323,363 Paychex 160,025 7,781,216 Quintiles Transnational 49,500 (a) 1,036,406 Robert Half International 76,800 2,035,200 Ryder System 25,500 423,938 Sprint (PCS Group) 400,400 (a) 8,183,175 Time Warner 570,200 29,787,248 Tribune 129,800 5,484,050 Viacom, Cl. B 649,808 (a) 30,378,524 Waste Management 266,772 7,402,923 251,542,181 TECHNOLOGY--20.2% APPLIED MICRO CIRCUITS 127,000 9,530,953 ADC Telecommunications 332,200 (a) 6,021,125 Adaptec 42,600 (a) 436,650 Adobe Systems 103,000 5,993,313 Advanced Micro Devices 133,900 (a) 1,849,494 Agilent Technologies 194,850 10,668,038 Altera 170,300 (a) 4,481,019 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY (CONTINUED) Analog Devices 152,800 (a) 7,821,450 Andrew 34,550 (a) 751,463 Apple Computer 139,800 (a) 2,079,525 Applied Materials 348,800 (a) 13,319,800 Autodesk 25,000 673,438 Avaya 119,670 1,234,097 BMC Software 106,100 (a) 1,485,400 Broadcom, Cl. A 100,900 (a) 8,526,050 Cabletron Systems 79,200 (a) 1,192,950 Cisco Systems 3,091,200 (a) 118,238,400 Citrix Systems 79,500 (a) 1,788,750 Compaq Computer 731,072 11,002,634 Computer Associates International 249,325 4,861,838 Compuware 156,900 (a) 980,625 Comverse Technology 70,600 (a) 7,668,925 Conexant Systems 98,000 (a) 1,506,750 Corning 394,400 20,829,250 Danaher 60,900 4,164,038 Dell Computer 1,111,100 (a) 19,374,806 Dover 87,200 3,537,050 EMC 939,800 (a) 62,496,700 Eaton 30,100 2,263,144 Gateway 138,600 (a) 2,493,414 Hewlett-Packard 848,700 26,787,094 ITT Industries 37,800 1,464,750 Intel 2,890,600 87,440,650 International Business Machines 753,500 64,047,500 Intuit 88,500 3,490,219 JDS Uniphase 412,500 17,196,094 KLA-Tencor 79,900 (a) 2,691,631 LSI Logic 137,100 (a) 2,343,039 Lexmark International Group, Cl. A 54,800 (a) 2,428,325 Linear Technology 136,000 6,290,000 Lucent Technologies 1,434,347 19,363,685 Maxim Integrated Products 121,400 (a) 5,804,438 Mercury Interactive 34,200 (a) 3,086,550 Micron Technology 243,700 (a) 8,651,350 COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY (CONTINUED) Microsoft 2,290,300 (a) 99,341,705 Millipore 19,800 1,247,400 Motorola 937,706 18,988,547 NCR 40,900 (a) 2,009,213 National Semiconductor 76,400 (a) 1,537,550 Network Appliance 135,700 (a) 8,716,605 Nortel Networks 1,330,380 42,655,309 Novell 141,500 (a) 738,453 Novellus Systems 56,400 (a) 2,026,875 Oracle 2,404,100 (a) 69,869,156 Palm 242,919 6,877,644 Parametric Technology 116,900 (a) 1,570,844 PeopleSoft 122,600 (a) 4,559,188 PerkinElmer 21,100 2,215,500 Pitney Bowes 108,300 3,587,438 Power-One 33,700 1,324,831 QUALCOMM 321,100 (a) 26,390,406 QLogic 39,300 3,026,100 Sabre Group Holdings 55,399 2,389,082 Sanmina 65,100 4,988,288 Sapient 52,100 621,944 Scientific-Atlanta 68,400 2,227,275 Siebel Systems 184,300 (a) 12,463,288 Solectron 273,500 (a) 9,271,650 Sun Microsystems 1,383,000 (a) 38,551,125 Symbol Technologies 63,500 2,286,000 Tektronix 41,400 1,394,663 Tellabs 176,400 (a) 9,966,600 Teradyne 74,400 (a) 2,771,400 Texas Instruments 743,300 35,213,838 Thermo Electron 77,300 (a) 2,299,675 Unisys 133,900 (a) 1,958,288 Veritas Software 167,483 (a) 14,654,763 Vitesse Semiconductor 76,700 4,242,469 Xerox 286,200 1,323,675 Xilinx 141,300 (a) 6,517,463 1,038,180,664 The Fund STATEMENT OF INVESTMENTS (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES--7.3% AT&T 1,612,076 27,909,066 AES 196,400 (a) 10,875,650 Allegheny Energy 48,000 2,313,000 Ameren 58,900 2,727,806 American Electric Power 138,160 6,424,440 BellSouth 801,700 32,819,594 CINergy 68,300 2,399,038 CMS Energy 52,000 1,647,750 Calpine 121,000 5,452,563 CenturyTel 60,150 2,150,363 Consolidated Edison 91,000 3,503,500 Constellation Energy Group 64,300 2,897,519 DTE Energy 61,300 2,386,869 Dominion Resources 102,193 6,846,931 Dynegy, Cl. A 138,800 7,781,475 Edison International 140,100 2,189,063 Entergy 95,900 4,057,769 Exelon 136,750 9,601,218 FPL Group 76,500 5,488,875 FirstEnergy 96,800 3,055,250 GPU 52,100 1,917,931 Global Crossing 380,440 (a) 5,445,048 Niagara Mohawk Power 69,000 (a) 1,151,438 PG&E 165,500 3,310,000 PPL 62,000 2,801,625 Pinnacle West Capital 36,400 1,733,550 Progress Energy 87,526 4,305,185 Public Service Enterprise Group 92,200 4,483,225 Qwest Communications International 711,337 29,164,817 Reliant Energy 127,039 5,502,377 SBC Communications 1,453,862 69,421,911 Sempra Energy 87,691 2,038,816 Southern 289,600 9,629,200 Sprint (FON Group) 380,400 7,726,875 TXU 110,830 4,911,154 Verizon Communications 1,159,310 58,110,414 COMMON STOCKS (CONTINUED) Shares Value ($) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (CONTINUED) WorldCom 1,236,554 (a) 17,311,756 Xcel Energy 145,900 4,240,219 375,733,280 TOTAL COMMON STOCKS (cost $3,924,755,543) 5,041,105,083 ----------------------------------------------------------------------------------------------------------------------------------- Principal SHORT-TERM INVESTMENTS-1.9% Amount ($) Value ($) ----------------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--1.7% Greenwich Capital Markets, 6.00% dated 12/29/2000, due 1/2/2001 in the amount of $88,759,133 (fully collateralized by $88,845,000 of various U.S. Government Securities, value $90,474,222) 88,700,000 88,700,000 U.S. TREASURY BILLS--.2% 6.03%, 2/1/2001 10,000,000 (b) 9,952,900 TOTAL SHORT-TERM INVESTMENTS (cost $98,648,075) 98,652,900 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (cost $4,023,403,618) 100.1% 5,139,757,983 LIABILITIES, LESS CASH AND RECEIVABLES (.1%) (5,562,717) NET ASSETS 100.0% 5,134,195,266 (A) NON-INCOME PRODUCING. (B) PARTIALLY HELD BY A BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS. SEE NOTES TO FINANCIAL STATEMENTS.
The Fund STATEMENT OF FINANCIAL FUTURES
December 31, 2000 Market Value Unrealized Covered by (Depreciation) Contracts Contracts ($) Expiration at 12/31/2000 ($) ----------------------------------------------------------------------------------------------------------------------------------- FINANCIAL FUTURES LONG Standard & Poor's 500 271 90,446,250 March 2001 (2,757,730) SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES December 31, 2000 Cost Value -------------------------------------------------------------------------------- ASSETS ($): Investments in securities-- See Statement of Investments--Note 1(b) 4,023,403,618 5,139,757,983 Cash 62,878 Receivable for shares of Common Stock subscribed 6,386,491 Dividends and interest receivable 4,283,804 Prepaid expenses 45,736 5,150,536,892 -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 1,072,724 Payable for investment securities purchased 9,523,019 Payable for shares of Common Stock redeemed 4,061,574 Payable for futures variation margin--Note 4(a) 1,400,832 Accrued expenses 283,477 16,341,626 -------------------------------------------------------------------------------- NET ASSETS ($) 5,134,195,266 -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 4,027,183,414 Accumulated undistributed investment income--net 656,576 Accumulated net realized gain (loss) on investments (7,241,359) Accumulated net unrealized appreciation (depreciation) on investments [including ($2,757,730) net unrealized (depreciation) on financial futures]--Note 4(b) 1,113,596,635 -------------------------------------------------------------------------------- NET ASSETS ($) 5,134,195,266 NET ASSET VALUE PER SHARE
Initial Shares Service Shares ------------------------------------------------------------------------------------------------------------------------------------ Net Assets ($) 5,134,194,766 500 Shares Outstanding 151,019,902 14.706 ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE ($) 34.00 34.00 SEE NOTES TO FINANCIAL STATEMENTS.
The Fund STATEMENT OF OPERATIONS Year Ended December 31, 2000 -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends (net of $288,478 foreign taxes withheld at source) 60,292,503 Interest 3,915,564 TOTAL INCOME 64,208,067 EXPENSES: Management fee--Note 3(a) 13,087,851 Registration fees 139,251 Directors' fees and expenses--Note 3(d) 100,658 Prospectus and shareholders' reports 88,648 Professional fees 59,192 Loan commitment fees--Note 2 40,004 Shareholder servicing costs--Note 3(c) 33,123 Miscellaneous 100,509 TOTAL EXPENSES 13,649,236 INVESTMENT INCOME--NET 50,558,831 -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments 83,843,280 Net realized gain (loss) on financial futures (3,488,968) NET REALIZED GAIN (LOSS) 80,354,312 Net unrealized appreciation (depreciation) on investments [including ($4,379,170) net unrealized (depreciation) on financial futures] (649,453,754) NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (569,099,442) NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (518,540,611) SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF CHANGES IN NET ASSETS Year Ended December 31, ----------------------------------- 2000(a) 1999 ------------------------------------------------------------------------------- OPERATIONS ($): Investment income--net 50,558,831 48,591,896 Net realized gain (loss) on investments 80,354,312 24,077,781 Net unrealized appreciation (depreciation) on investments (649,453,754) 754,135,017 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (518,540,611) 826,804,694 ------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income--net: Initial shares (50,548,602) (47,945,549) Net realized gain in investments: Initial shares (83,423,621) (41,840,248) TOTAL DIVIDENDS (133,972,223) (89,785,797) ------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold: Initial shares 1,497,873,041 1,770,669,411 Service shares 500 -- Dividends reinvested: Initial shares 133,972,223 89,785,797 Cost of shares redeemed: Initial shares (1,074,843,967) (808,309,981) INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 557,001,797 1,052,145,227 TOTAL INCREASE (DECREASE) IN NET ASSETS (95,511,037) 1,789,164.124 ------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 5,229,706,303 3,440,542,179 END OF PERIOD 5,134,195,266 5,229,706,303 Undistributed investment income-net 656,576 646,347 ------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS (SHARES): INITIAL SHARES Shares sold 39,948,205 50,987,939 Shares issued for dividends reinvested 3,774,732 2,504,918 Shares redeemed (28,714,921) (23,266,719) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 15,008,016 30,226,138 ------------------------------------------------------------------------------- SERVICE SHARES SHARES SOLD 15 -- (A) EFFECTIVE DECEMBER 31, 2000, SHARES OF THE FUND WERE REDESIGNATED AS INITIAL SHARES AND THE FUND COMMENCED SELLING SERVICE SHARES. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS The following table describes the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements.
INITIAL SHARES SERVICE SHARES -------------------------------------------------------------------------- Period Ended Year Ended December 31, December 31, ---------------------------------------------------------------------------- 2000 1999 1998 1997 1996 2000(a) ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 38.45 32.52 25.75 20.28 17.20 34.00 Investment Operations: Investment income--net .35(b) .40(b) .37 .37 .39 -- Net realized and unrealized gain (loss) on investments (3.88) 6.24 6.85 6.26 3.43 -- Total from Investment Operations (3.53) 6.64 7.22 6.63 3.82 -- Distributions: Dividends from investment income--net (.35) (.38) (.38) (.37) (.39) -- Dividends from net realized gain on investments (.57) (.33) (.07) (.79) (.35) -- Total Distributions (.92) (.71) (.45) (1.16) (.74) -- Net asset value, end of period 34.00 38.45 32.52 25.75 20.28 34.00 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (9.28) 20.60 28.21 32.96 22.54 -- ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .26 .26 .26 .28 .30 -- Ratio of net investment income to average net assets .95 1.13 1.35 1.66 2.24 -- Portfolio Turnover Rate 4.97 2.64 2.40 3.53 10.92 4.97 ----------------------------------------------------------------------------------------------------------------------------------- Net Assets, end of period ($ x 1,000) 5,134,195 5,229,706 3,440,542 1,868,672 813,959 1 (A) THE FUND COMMENCED OFFERING SERVICE SHARES ON DECEMBER 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS 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 (the "Distributor" ), 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. On October 30, 2000, the fund's Board of Directors approved, effective December 31, 2000, the addition of a second class of shares. The Board redesignated the funds existing shares as Initial shares, authorized the creation of Service shares and adopted a 12b-1 Distribution Plan for the Service shares. The portfolio is authorized to issue 400 million shares of $.001 par value Common Stock. The fund currently offers two classes of shares: Initial shares (250 million shares authorized) and Service shares (150 million shares authorized) . Initial shares are subject to a shareholder services fee and Service shares are subject to a distribution fee. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights. The Fund NOTES TO FINANCIAL STATEMENTS (CONTINUED) As of December 31, 2000, MBC Investments Corp., an indirect subsidiary of Mellon Financial Corporation, held all of the outstanding Service shares of the fund. The fund' s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, 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 Dreyfus, 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 securi ties 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, it is the policy of the fund not to distribute such gain. (d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes. NOTE 2--Bank Line of Credit: The fund participates with other Dreyfus-managed funds in a $500 million redemption credit facility (the "Facility" ) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. During the period ended December 31, 2000, the fund did not borrow under the Facility. The Fund NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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 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, Rule12b-1 fees, 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 December 31, 2000, there was no expense reimbursement pursuant to the undertaking. (b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining shareholder accounts and for advertising and marketing for Service shares. The Plan provides payments to be made at an annual rate of .25 of 1% of the value of the Service shares average daily net assets. The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products. The fees payable under the Plan are payable without regard to actual expenses incurred. (c) Under the Shareholder Services Plan, Initial shares reimburses the Distributor an amount not to exceed an annual rate of .25 of 1% of the value of the Initial shares' average daily net assets for certain allocated expenses with respect to servicing and/or maintaining shareholder accounts. During the period ended December 31, 2000, the Initial shares were charged $23,160 pursuant to the Shareholder Services Plan. The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended December 31, 2000, the fund was charged $605 pursuant to the transfer agency agreement. (d) 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 December 31, 2000, amounted to $697,460,805 and $261,676,456, 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. The Fund NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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, 2000 are set forth in the Statement of Financial Futures. (b) At December 31, 2000, accumulated net unrealized appreciation on investments and financial futures was $1,113,596,635, consisting of $1,533,468,485 gross unrealized appreciation and $419,871,850 gross unrealized depreciation. At December 31, 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). REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors and Shareholders of Dreyfus Stock Index Fund In our opinion, the accompanying statement of assets and liabilities, including the statements of investments and financial futures, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Dreyfus Stock Index Fund (the "Fund" ) at December 31, 2000, and 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 accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund' s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2000 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP New York, New York January 23, 2001 The Fund IMPORTANT TAX INFORMATION (Unaudited) For Federal tax purposes, the fund hereby designates $.5230 per share as a long-term capital gain distribution of the $.6030 per share paid on December 27, 2000 and also designates $.0200 per share as a long-term capital gain distribution of the $.1320 per share paid on March 31, 2000. The fund also designates 99.14% of the ordinary dividends paid during the fiscal year ended December 31, 2000 as qualifying for the corporate dividends received deduction. 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) 2001 Dreyfus Service Corporation 763AR0012