-----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, Js2MlBXLdgRHhHfrntChbt6QesupFW48mKWSHxpTvEIAb5ZP2qae5nVa3SmlLSZd c0vaCjKYzxh/sIr+hjh2jA== 0000846800-03-000007.txt : 20030818 0000846800-03-000007.hdr.sgml : 20030818 20030818093807 ACCESSION NUMBER: 0000846800-03-000007 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030818 EFFECTIVENESS DATE: 20030818 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS STOCK INDEX FUND INC CENTRAL INDEX KEY: 0000846800 IRS NUMBER: 133537664 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05719 FILM NUMBER: 03851893 BUSINESS ADDRESS: STREET 1: THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226855 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS LIFE & ANNUITY INDEX FUND INC DATE OF NAME CHANGE: 19920703 N-CSR 1 coverpagencsr.txt SEMI-ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-57119 DREYFUS STOCK INDEX FUND, INC. (Exact name of Registrant as specified in charter) c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166 (Address of principal executive offices) (Zip code) Mark N. Jacobs, Esq. 200 Park Avenue New York, New York 10166 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 922-6000 Date of fiscal year end: December 31st Date of reporting period: June 30, 2003 (PAGE) FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. Dreyfus Stock Index Fund, Inc. SEMIANNUAL REPORT June 30, 2003 The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund. Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value Contents THE FUND - -------------------------------------------------- 2 Letter from the Chairman 3 Discussion of Fund Performance 6 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 27 Financial Highlights 29 Notes to Financial Statements 35 Proxy Results FOR MORE INFORMATION - --------------------------------------------------------------------------- Back Cover The Fund Dreyfus Stock Index Fund, Inc. LETTER FROM THE CHAIRMAN Dear Shareholder: This semiannual report for Dreyfus Stock Index Fund, Inc. covers the six-month period from January 1, 2003, through June 30, 2003. 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 Thomas Durante. The first half of 2003 was a time of long-awaited recovery for the U.S. stock market. Despite continued volatility leading up to the war in Iraq, stocks began to rally as the fighting wound down and investors turned their attention back to the prospects for the U.S. economy. Apparently, they liked what they saw. Despite current economic weakness, investors appear to be focused on the possibility of better economic times ahead. If these trends persist, 2003 could mark the first positive calendar year for stocks since 1999. In our view, investors who have the potential to benefit most are those who steadfastly maintained their equity exposure during the bear market. In contrast, we believe investors who avoided stocks may have missed the market' s recent gains, a timely reminder that patience, discipline and a long-term perspective are fundamental principles that may lead to successful investing. Thank you for your continued confidence and support. Sincerely, /s/Stephen E. Canter Stephen E. Canter Chairman and Chief Executive Officer The Dreyfus Corporation July 15, 2003 DISCUSSION OF FUND PERFORMANCE Steven Falci and Thomas Durante, Portfolio Managers How did Dreyfus Stock Index Fund, Inc. perform relative to its benchmark? For the six-month period ended June 30, 2003, Dreyfus Stock Index Fund, Inc. produced total returns of 11.64% for its Initial shares and 11.49% for its Service shares.(1) In comparison, the fund's benchmark, the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index"), produced a total return of 11.76% for the same period.(2,3) We attribute the fund and market's performance during the reporting period to a more constructive investment environment for large-capitalization stocks, driven primarily by an improvement in investor sentiment as the war with Iraq came to an end and investors looked forward to a potential economic upturn. 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 proportion to their weightings in the S& P 500 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 across 11 sectors 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. 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. The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) Dreyfus Stock Index Fund, Inc. 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. What other factors influenced the fund's performance? The stock market' s performance was influenced by a number of positive factors during the reporting period. The success of the war in Iraq caused investors' attention to shift from the war to the economy. Investors responded favorably to factors such as expectations of further interest-rate reductions from the Federal Reserve Board, which were realized in late June, and cuts in federal taxes. In addition, investors apparently rewarded large companies that strengthened their accounting practices and balance sheets after last year's high-profile scandals. During the reporting period, the fund's returns were driven primarily by stocks in the financial services, technology and health care sectors. Overall, financial services companies provided the S&P 500 Index's highest returns. These companies benefited as they settled legal issues related to the separation of investment banking and securities research activities, cut operating costs and strengthened their balance sheets. In addition, many financial services companies reaped the benefits of fees associated with the refinancing of debt by consumers and corporations taking advantage of lower interest rates. Technology companies provided the S&P 500 Index's second highest returns, with computer hardware and semiconductor stocks leading the way. These companies benefited from cost-cutting measures and a modest increase in consumer demand. Many technology businesses also posted higher levels of export sales when the U.S. dollar weakened relative to other major currencies, making their goods less expensive in overseas markets. In the health care sector, pharmaceutical stocks performed well, largely because of an increase in mergers-and-acquisition activity, which many investors believed will help reduce operating costs for the affected companies. The fund and S& P 500 Index's performance was hindered during the reporting period by relatively lackluster returns from telecommunications stocks, which suffered from greater competition from cable television companies in the high-speed Internet access market. Finally, stock prices of many defense companies fell after the war with Iraq ended quickly and the needs of homeland-security agencies stabilized. What is the fund's current strategy? As an index fund, our strategy remains the same: to attempt to replicate the return of the S& P 500 Index. While we are pleased with recent returns from large-cap stocks, we are careful to temper that optimism by being mindful of the heightened volatility that has affected the U.S. stock market for some time now. We believe it is especially important during volatile times to diversify across many industry sectors and stocks to guard against the effects of disproportionate losses in any particular sector or holding. In our view, broadly diversified index funds continue to represent a prudent choice for the core of most investors' portfolios. July 15, 2003 THE PORTFOLIO IS ONLY AVAILABLE AS A FUNDING VEHICLE UNDER VARIOUS LIFE INSURANCE POLICIES OR VARIABLE ANNUITY CONTRACTS ISSUED BY INSURANCE COMPANIES. INDIVIDUALS MAY NOT PURCHASE SHARES OF THE PORTFOLIO DIRECTLY. A VARIABLE ANNUITY IS AN INSURANCE CONTRACT ISSUED BY AN INSURANCE COMPANY THAT ENABLES INVESTORS TO ACCUMULATE ASSETS ON A TAX-DEFERRED BASIS FOR RETIREMENT OR OTHER LONG-TERM GOALS. THE INVESTMENT OBJECTIVE AND POLICIES OF DREYFUS STOCK INDEX FUND, INC. MADE AVAILABLE THROUGH INSURANCE PRODUCTS MAY BE SIMILAR TO OTHER FUNDS/PORTFOLIOS MANAGED OR ADVISED BY DREYFUS. HOWEVER, THE INVESTMENT RESULTS OF THE PORTFOLIO MAY BE HIGHER OR LOWER THAN, AND MAY NOT BE COMPARABLE TO, THOSE OF ANY OTHER DREYFUS FUND/PORTFOLIO. (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. 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. (2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS DAILY 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. (3) "STANDARD & POOR'S," "S&P," "STANDARD & POOR'S 500" AND "S&P 500" ARE TRADEMARKS OF THE MCGRAW-HILL COMPANIES, INC., AND HAVE BEEN LICENSED FOR USE BY THE FUND. THE FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY STANDARD & POOR'S AND STANDARD & POOR'S MAKES NO REPRESENTATION REGARDING THE ADVISABILITY OF INVESTING IN THE FUND. The Fund STATEMENT OF INVESTMENTS June 30, 2003 (Unaudited)
COMMON STOCKS--98.3% Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ ALCOHOL & TOBACCO--1.7% Adolph Coors, CI. B 13,850 678,373 Altria Group 772,243 35,090,722 Anheuser-Busch Cos. 318,150 16,241,557 Brown-Forman, Cl. B 23,000 1,808,260 R.J. Reynolds Tobacco Holdings 32,200 1,198,162 UST 63,800 2,234,914 57,251,988 CONSUMER CYCLICAL--9.8% Albertson's 139,842 2,684,966 AutoNation 107,300 (a) 1,686,756 AutoZone 34,100 (a) 2,590,577 Bed Bath & Beyond 112,600 (a) 4,370,006 Best Buy 122,850 (a) 5,395,572 Big Lots 44,300 (a) 666,272 Brunswick 34,400 860,688 CVS 150,290 4,212,629 Cendant 388,398 (a) 7,115,451 Circuit City Stores-Circuit City Group 78,700 692,560 Cooper Tire & Rubber 28,100 494,279 Costco Wholesale 173,950 (a) 6,366,570 Dana 56,706 655,521 Darden Restaurants 64,200 1,218,516 Delphi 213,653 1,843,825 Delta Air Lines 47,000 689,960 Dillard's, Cl. A 32,100 432,387 Dollar General 127,162 2,321,978 Eastman Kodak 109,300 2,989,355 Eaton 28,400 2,232,524 Family Dollar Stores 65,650 2,504,548 Federated Department Stores 71,448 2,632,859 Ford Motor 698,053 7,671,602 Gap 339,689 6,372,566 General Motors 213,848 7,698,528 Genuine Parts 66,300 2,122,263 Harley-Davidson 115,300 4,595,858 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER CYCLICAL (CONTINUED) Harrah's Entertainment 41,800 (a) 1,682,032 Hasbro 66,075 1,155,652 Hilton Hotels 143,650 1,837,283 Home Depot 876,194 29,019,545 International Game Technology 32,550 3,330,842 J.C. Penny 102,600 1,728,810 Johnson Controls 34,050 2,914,680 Jones Apparel Group 48,800 (a) 1,427,888 Kohl's 129,223 (a) 6,639,478 Kroger 287,748 (a) 4,799,637 Leggett & Platt 73,600 1,508,800 Limited Brands 199,100 3,086,050 Liz Claiborne 40,900 1,441,725 Lowe's Cos. 297,410 12,773,760 Marriott International, Cl. A 88,400 3,396,328 Mattel 167,650 3,171,938 May Department Stores 110,000 2,448,600 Maytag 29,800 727,716 McDonald's 485,255 10,704,725 NIKE, CI. B 100,650 5,383,769 Navistar International 26,000 (a) 848,380 Nordstrom 51,800 1,011,136 Office Depot 117,800 (a) 1,709,278 PACCAR 44,350 2,996,286 RadioShack 64,200 1,689,102 Reebok International 22,600 (a) 760,038 Safeway 168,369 (a) 3,444,830 Sears, Roebuck & Co. 117,100 3,939,244 Southwest Airlines 297,025 5,108,830 Staples 185,700 (a) 3,407,595 Starbucks 148,900 (a) 3,651,028 Starwood Hotels & Resorts Worldwide 76,500 2,187,135 TJX COS. 194,650 3,667,206 Target 347,342 13,143,421 Tiffany & Co. 55,400 1,810,472 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER CYCLICAL (CONTINUED) Toys R Us 81,300 (a) 985,356 V. F. 41,200 1,402,860 Visteon 49,659 341,157 Wal-Mart Stores 1,669,929 89,625,089 Walgreen 390,900 11,766,090 Wendy's International 43,300 1,254,401 Whirlpool 26,200 1,668,940 Winn-Dixie Stores 53,700 661,047 Yum! Brands 111,570 (a) 3,298,009 342,674,804 CONSUMER STAPLES--6.5% Alberto-Culver, Cl. B 22,400 1,144,640 Archer-Daniels-Midland 245,718 3,162,391 Avon Products 89,600 5,573,120 Campbell Soup 156,549 3,835,450 Clorox 82,650 3,525,022 Coca-Cola 939,442 43,599,503 Coca-Cola Enterprises 172,400 3,129,060 Colgate-Palmolive 205,150 11,888,443 ConAgra Foods 204,850 4,834,460 Fortune Brands 55,450 2,894,490 General Mills 140,900 6,680,069 Gillette 389,466 12,408,387 H.J. Heinz 134,000 4,419,320 Hershey Foods 49,989 3,482,234 International Flavors & Fragrances 35,800 1,143,094 Kellogg 155,000 5,327,350 Kimberly-Clark 193,966 10,113,387 McCormick & Co. 53,000 1,441,600 Newell Rubbermaid 104,571 2,927,988 Pactiv 60,850 (a) 1,199,354 Pepsi Bottling Group 104,550 2,093,091 PepsiCo 655,231 29,157,780 Procter & Gamble 493,800 44,037,084 SUPERVALU 51,000 1,087,320 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES (CONTINUED) Sara Lee 296,398 5,575,246 Sysco 247,750 7,442,410 Tupperware 22,100 317,356 Wm. Wrigley, Jr. 85,800 4,824,534 227,264,183 ENERGY--6.5% Amerada Hess 34,300 1,686,874 Anadarko Petroleum 95,151 4,231,365 Apache 61,600 4,007,696 BJ Services 60,300 (a) 2,252,808 Baker Hughes 128,370 4,309,381 Burlington Resources 76,540 4,138,518 CMS Energy 55,000 445,500 Centerpoint Energy 116,539 949,793 ChevronTexaco 407,468 29,419,190 ConocoPhillips 258,859 14,185,473 Devon Energy 88,050 4,701,870 Dominion Resources 118,493 7,615,545 Duke Energy 343,676 6,856,336 Dynegy, Cl. A 141,600 594,720 EOG Resources 43,700 1,828,408 El Paso 228,436 1,845,763 Exxon Mobil 2,547,294 91,473,327 Halliburton 166,751 3,835,273 Kerr-McGee 38,500 1,724,800 KeySpan 59,950 2,125,227 Kinder Morgan 46,600 2,546,690 Marathon Oil 118,150 3,113,253 McDermott International 24,400 (a) 154,452 Nabors Industries 55,500 (a) 2,195,025 Nicor 16,800 623,448 NiSource 100,153 1,902,907 Noble 51,000 (a) 1,749,300 Occidental Petroleum 144,650 4,853,007 Peoples Energy 13,700 587,593 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY (CONTINUED) Rowan Cos. 35,700 (a) 799,680 Schlumberger 222,100 10,565,297 Sempra Energy 79,141 2,257,893 Sunoco 29,200 1,102,008 Transocean 121,962 (a) 2,679,505 Unocal 98,400 2,823,096 Williams Cos. 197,471 1,560,021 227,741,042 HEALTH CARE--14.4% Abbott Laboratories 595,276 26,049,278 Allergan 49,700 3,831,870 AmerisourceBergen 42,109 2,920,259 Amgen 480,356 (a) 31,914,853 Anthem 52,700 (a) 4,065,805 Applera-Applied Biosystems Group 79,650 1,515,739 Bausch & Lomb 20,300 761,250 Baxter International 227,850 5,924,100 Becton, Dickinson & Co. 97,100 3,772,335 Biogen 56,650 (a) 2,152,700 Biomet 98,425 2,820,860 Boston Scientific 156,450 (a) 9,559,095 Bristol-Myers Squibb 739,228 20,070,040 C.R. Bard 19,800 1,411,938 Cardinal Health 170,225 10,945,467 Chiron 71,050 (a) 3,106,306 Eli Lilly & Co. 428,437 29,549,300 Forest Laboratories 138,400 (a) 7,577,400 Genzyme 82,250 (a) 3,438,050 Guidant 117,945 5,235,579 HCA 195,085 6,250,523 Health Management Associates, Cl. A 91,000 1,678,950 Humana 61,600 (a) 930,160 Johnson & Johnson 1,132,218 58,535,671 King Pharmaceuticals 91,800 (a) 1,354,968 Manor Care 34,200 (a) 855,342 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (CONTINUED) McKesson 110,446 3,947,340 MedImmune 96,100 (a) 3,495,157 Medtronic 465,073 22,309,552 Merck & Co. 855,166 51,780,301 Millipore 18,500 (a) 820,845 Pfizer 3,010,879 102,821,518 Quest Diagnostics 40,200 (a) 2,564,760 Schering-Plough 560,151 10,418,809 St. Jude Medical 68,650 (a) 3,947,375 Stryker 75,750 5,254,777 Tenet Healthcare 177,950 (a) 2,073,118 Thermo Electron 61,700 (a) 1,296,934 UnitedHealth Group 226,000 11,356,500 Waters 47,350 (a) 1,379,306 Watson Pharmaceuticals 40,800 (a) 1,647,096 WellPoint Health Networks 55,450 (a) 4,674,435 Wyeth 506,420 23,067,431 Zimmer Holdings 74,922 (a) 3,375,236 502,458,328 INTEREST SENSITIVE--23.4% ACE 100,950 3,461,575 AFLAC 195,792 6,020,604 Aetna 57,949 3,488,530 Allstate 268,475 9,571,134 Ambac Financial Group 40,544 2,686,040 American Express 494,573 20,678,097 American International Group 994,789 54,892,457 AmSouth Bancorporation 133,900 2,924,376 Aon 119,025 2,866,122 Apartment Investment & Management, Cl. A 35,800 1,238,680 BB&T 179,700 6,163,710 Bank of America 571,262 45,146,836 Bank of New York 294,032 8,453,420 Bank One 435,642 16,197,170 Bear Stearns Cos. 37,827 2,739,431 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST SENSITIVE (CONTINUED) CIGNA 53,471 2,509,929 Capital One Financial 86,400 4,249,152 Charles Schwab 514,953 5,195,876 Charter One Financial 85,776 2,674,496 Chubb 70,600 4,236,000 Cincinnati Financial 61,250 2,271,762 Citigroup 1,963,318 84,030,010 Comerica 66,850 3,108,525 Concord EFS 185,616 (a) 2,732,268 Countrywide Financial 49,800 3,464,586 Equity Office Properties Trust 153,600 4,148,736 Equity Residential 103,950 2,697,502 Fannie Mae 373,709 25,202,935 Federated Investors, Cl. B 41,600 1,140,672 Fifth Third Bancorp 219,034 12,559,410 First Tennessee National 48,200 2,116,462 FleetBoston Financial 400,983 11,913,205 Franklin Resources 96,700 3,778,069 Freddie Mac 262,115 13,307,579 General Electric 3,811,483 109,313,332 Golden West Financial 58,193 4,656,022 Goldman Sachs Group 179,050 14,995,437 H&R Block 68,300 2,953,975 Hartford Financial Services Group 106,750 5,375,930 Huntington Bancshares 87,238 1,702,886 J.P. Morgan Chase & Co. 774,668 26,478,152 Janus Capital Group 91,300 1,497,320 Jefferson-Pilot 54,225 2,248,168 John Hancock Financial Services 110,250 3,387,982 KeyCorp 161,250 4,074,787 Lehman Brothers Holdings 92,550 6,152,724 Lincoln National 67,700 2,412,151 Loews 70,750 3,345,768 MBIA 54,850 2,673,938 MBNA 487,282 10,154,957 MGIC Investment 37,600 1,753,664 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST SENSITIVE (CONTINUED) Marsh & McLennan Cos. 204,158 10,426,349 Marshall & Ilsley 86,400 2,642,112 Mellon Financial 164,557 4,566,457 Merrill Lynch 354,831 16,563,511 MetLife 289,900 8,209,968 Morgan Stanley 414,676 17,727,399 National City 233,299 7,631,210 North Fork Bancorporation 59,700 2,033,382 Northern Trust 84,090 3,514,121 PNC Financial Services Group 107,823 5,262,841 Principal Financial Group 124,850 4,026,413 Progressive 82,982 6,065,984 Providian Financial 110,543 (a) 1,023,628 Prudential Financial 209,650 7,054,723 Regions Financial 84,678 2,860,423 SLM 172,500 6,756,825 Safeco 52,750 1,861,020 Simon Property Group 72,100 2,814,063 SouthTrust 129,700 3,527,840 St. Paul Cos. 86,840 3,170,528 State Street 126,750 4,993,950 SunTrust Banks 106,850 6,340,479 Synovus Financial 115,800 2,489,700 T. Rowe Price Group 46,600 1,759,150 Torchmark 44,300 1,650,175 Travelers Property Casualty, Cl. B 383,847 6,053,267 U.S. Bancorp 732,154 17,937,773 Union Planters 75,700 2,348,971 UnumProvident 109,744 1,471,667 Wachovia 513,027 20,500,559 Washington Mutual 354,837 14,654,768 Wells Fargo 638,797 32,195,369 XL Capital, Cl. A 52,100 4,324,300 Zions Bancorporation 34,400 1,740,984 817,242,458 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ INTERNET--.6% eBay 121,050 (a) 12,610,989 Yahoo! 230,038 (a) 7,536,045 20,147,034 PRODUCER GOODS & SERVICES--8.6% Air Products & Chemicals 86,650 3,604,640 Alcoa 322,388 8,220,894 Allegheny Technologies 30,466 201,076 American Power Conversion 75,000 1,169,250 American Standard Cos. 27,400 (a) 2,025,682 Ashland 25,900 794,612 Avery Dennison 42,150 2,115,930 Ball 21,700 987,567 Bemis 20,300 950,040 Black & Decker 29,600 1,286,120 Boeing 320,644 11,004,502 Boise Cascade 22,200 530,580 Burlington Northern Santa Fe 142,125 4,042,035 CSX 81,500 2,452,335 Caterpillar 131,315 7,308,993 Centex 23,700 1,843,623 Cooper Industries, Cl. A 35,600 1,470,280 Crane 22,575 510,872 Cummins 15,800 567,062 Deere & Co. 91,300 4,172,410 Dow Chemical 349,142 10,809,436 E. I. du Pont de Nemours 379,872 15,817,870 Eastman Chemical 29,500 934,265 Ecolab 100,200 2,565,120 Emerson Electric 160,490 8,201,039 Engelhard 48,000 1,188,960 FedEx 113,740 7,055,292 Fluor 31,100 1,046,204 Freeport-McMoRan Copper & Gold, Cl. B 55,400 1,357,300 General Dynamics 75,236 5,454,610 COMMON STOCKS (CONTINUED) Shares Value ($) - ----------------------------------------------------------------------------------------------------------------------------------- PRODUCER GOODS & SERVICES (CONTINUED) Georgia-Pacific 95,409 1,808,001 Goodrich 44,800 940,800 Goodyear Tire & Rubber 66,600 349,650 Great Lakes Chemical 19,200 391,680 Hercules 41,900 (a) 414,810 Honeywell International 327,137 8,783,628 ITT Industries 35,050 2,294,373 Illinois Tool Works 117,250 7,720,913 Ingersoll-Rand, Cl. A 64,600 3,056,872 International Paper 182,669 6,526,763 KB HOME 18,100 1,121,838 Lockheed Martin 171,700 8,167,769 Louisiana-Pacific 39,900 (a) 430,521 Masco 181,800 4,335,930 MeadWestvaco 76,463 1,888,636 Molex 72,900 1,967,571 Monsanto 99,678 2,157,032 Newmont Mining 153,419 4,979,981 Norfolk Southern 148,650 2,854,080 Northrop Grumman 69,763 6,019,849 Nucor 29,800 1,455,730 PPG Industries 64,733 3,284,552 Pall 46,901 1,055,272 Parker-Hannifin 45,050 1,891,649 Phelps Dodge 33,933 (a) 1,300,991 Plum Creek Timber 69,750 1,810,013 Praxair 61,950 3,723,195 Pulte Homes 23,300 1,436,678 Raytheon 156,550 5,141,102 Rockwell Automation 70,700 1,685,488 Rockwell Collins 67,950 1,673,609 Rohm & Haas 84,656 2,626,876 Sealed Air 32,212 (a) 1,535,224 Sherwin-Williams 56,000 1,505,280 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ PRODUCER GOODS & SERVICES (CONTINUED) Sigma-Aldrich 27,000 1,462,860 Snap-On 22,150 643,015 Stanley Works 32,600 899,760 3M 149,099 19,230,789 Temple-Inland 20,600 883,946 Textron 51,500 2,009,530 Thomas & Betts 22,100 (a) 319,345 Tyco International 761,506 14,453,384 Union Pacific 96,928 5,623,763 United Parcel Service, Cl. B 429,150 27,336,855 United States Steel 39,200 641,704 United Technologies 178,441 12,638,976 Vulcan Materials 38,700 1,434,609 W.W. Grainger 34,900 1,631,924 Weyerhaeuser 83,500 4,509,000 Worthington Industries 32,800 439,520 300,183,935 SERVICES--6.8% ALLTEL 118,700 5,723,714 AOL Time Warner 1,715,068 (a) 27,595,444 AT&T Wireless Services 1,034,174 (a) 8,490,569 Allied Waste Industries 79,700 (a) 800,985 American Greetings, Cl. A 25,100 (a) 492,964 Apollo Group, Cl. A 66,850 (a) 4,128,656 Automatic Data Processing 228,078 7,722,721 Carnival 239,724 7,793,427 Cintas 65,000 2,303,600 Clear Channel Communications 234,247 (a) 9,929,730 Comcast, Cl. A 857,663 (a) 25,884,269 Computer Sciences 71,400 (a) 2,721,768 Convergys 56,402 (a) 902,432 Deluxe 21,100 945,280 Dow Jones & Co. 31,000 1,333,930 Electronic Data Systems 182,450 3,913,553 Equifax 53,750 1,397,500 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ SERVICES (CONTINUED) First Data 285,294 11,822,583 Fiserv 73,682 (a) 2,623,816 Gannett 102,388 7,864,422 IMS Health 92,650 1,666,774 Interpublic Group of Companies 148,550 1,987,599 Knight-Ridder 31,194 2,150,202 McGraw-Hill Cos. 72,750 4,510,500 Meredith 19,000 836,000 Monster Worldwide 42,500 (a) 838,525 Moody's 56,550 2,980,751 NEXTEL Communications, Cl. A 392,050 (a) 7,088,264 New York Times, Cl. A 57,500 2,616,250 Omnicom Group 71,880 5,153,796 Paychex 143,575 4,208,183 Quintiles Transnational 44,900 (a) 637,131 R. R. Donnelley & Sons 43,250 1,130,555 Robert Half International 64,900 (a) 1,229,206 Ryder System 23,800 609,756 Sprint (PCS Group) 390,250 2,243,938 SunGard Data Systems 108,500 (a) 2,811,235 Tribune 117,830 5,691,189 Univision Communications, Cl. A 87,400 (a) 2,656,960 Viacom, Cl. B 669,653 (a) 29,237,050 Walt Disney 779,209 15,389,378 Waste Management 225,522 5,432,825 235,497,430 TECHNOLOGY--14.7% ADC Telecommunications 305,800 (a) 711,902 Adobe Systems 88,450 2,836,592 Advanced Micro Devices 131,900 (a) 845,479 Agilent Technologies 179,762 (a) 3,514,347 Altera 146,000 (a) 2,394,400 Analog Devices 139,300 (a) 4,850,426 Andrew 37,350 (a) 343,620 Apple Computer 139,400 (a) 2,665,328 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY (CONTINUED) Applied Materials 632,100 (a) 10,025,106 Applied Micro Circuits 116,000 (a) 701,800 Autodesk 42,500 686,800 Avaya 145,464 (a) 939,697 BMC Software 89,000 (a) 1,453,370 Broadcom, Cl. A 106,858 (a) 2,661,833 CIENA 179,700 (a) 932,643 Cisco Systems 2,676,718 (a) 44,674,423 Citrix Systems 63,000 (a) 1,282,680 Computer Associates International 220,475 4,912,183 Compuware 144,200 (a) 832,034 Comverse Technology 71,800 (a) 1,079,154 Corning 482,798 (a) 3,567,877 Danaher 58,300 3,967,315 Dell Computer 979,412 (a) 31,302,008 Dover 77,250 2,314,410 EMC 834,020 (a) 8,732,189 Electronic Arts 55,500 (a) 4,106,445 Gateway 123,000 (a) 448,950 Hewlett-Packard 1,164,056 24,794,393 Intel 2,491,810 51,789,779 International Business Machines 658,968 54,364,860 Intuit 78,250 (a) 3,484,473 JDS Uniphase 545,400 (a) 1,914,354 Jabil Circuit 75,800 (a) 1,675,180 KLA-Tencor 72,600 (a) 3,375,174 LSI Logic 143,100 (a) 1,013,148 Lexmark International 48,650 (a) 3,442,961 Linear Technology 119,350 3,844,264 Lucent Technologies 1,577,685 (a) 3,202,701 Maxim Integrated Products 123,850 4,234,432 Mercury Interactive 32,536 (a) 1,256,215 Micron Technology 232,150 (a) 2,699,904 Microsoft 4,094,396 104,857,482 Motorola 883,094 8,327,576 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ TECHNOLOGY (CONTINUED) NCR 36,400 (a) 932,568 NVIDIA 60,700 (a) 1,396,707 National Semiconductor 69,600 (a) 1,372,512 Network Appliance 129,400 (a) 2,097,574 Novell 140,500 (a) 432,740 Novellus Systems 57,200 (a) 2,094,721 Oracle 1,999,520 (a) 24,034,230 PMC-Sierra 64,200 (a) 753,066 Parametric Technology 100,900 (a) 307,745 PeopleSoft 120,750 (a) 2,123,992 PerkinElmer 48,068 663,819 Pitney Bowes 89,300 3,430,013 Power-One 31,400 (a) 224,510 QLogic 35,800 (a) 1,730,214 QUALCOMM 301,100 10,764,325 Sabre Holdings 54,610 1,346,136 Sanmina-SCI 194,472 (a) 1,227,118 Scientific-Atlanta 56,800 1,354,112 Siebel Systems 186,651 (a) 1,780,651 Solectron 316,500 (a) 1,183,710 Sun Microsystems 1,231,684 (a) 5,665,746 Symantec 56,300 (a) 2,469,318 Symbol Technologies 87,950 1,144,229 Tektronix 32,400 (a) 699,840 Tellabs 157,200 (a) 1,032,804 Teradyne 70,500 (a) 1,220,355 Texas Instruments 659,448 11,606,285 Unisys 125,000 (a) 1,535,000 VERITAS Software 158,168 (a) 4,534,677 Xerox 298,066 (a) 3,156,519 Xilinx 128,700 (a) 3,257,397 512,632,540 UTILITIES--5.3% AES 233,600 (a) 1,483,360 AT&T 299,818 5,771,497 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (CONTINUED) Allegheny Energy 47,900 404,755 Ameren 61,500 2,712,150 American Electric Power 150,650 4,493,890 BellSouth 704,301 18,755,536 Calpine 144,815 (a) 955,779 CenturyTel 54,550 1,901,068 Cinergy 67,200 2,472,288 Citizens Communications 108,100 (a) 1,393,409 Consolidated Edison 85,200 3,687,456 Constellation Energy Group 63,050 2,162,615 DTE Energy 64,050 2,474,892 Edison International 124,300 (a) 2,042,249 Entergy 86,150 4,546,997 Exelon 123,700 7,398,497 FPL Group 69,950 4,676,157 FirstEnergy 113,533 4,365,344 Mirant 153,388 (a) 444,825 PG&E 156,050 (a) 3,300,458 PPL 64,250 2,762,750 Pinnacle West Capital 34,800 1,303,260 Progress Energy 91,785 4,029,361 Public Service Enterprise Group 86,150 3,639,837 Qwest Communications International 646,561 (a) 3,090,562 SBC Communications 1,267,095 32,374,277 Southern 275,210 8,575,544 Sprint (FON Group) 342,866 (a) 4,937,270 TECO Energy 67,300 806,927 TXU 122,930 2,759,778 Verizon Communications 1,048,887 41,378,592 Xcel Energy 152,075 2,287,208 183,388,588 TOTAL COMMON STOCKS (cost $3,277,760,349) 3,426,482,330 Principal SHORT-TERM INVESTMENTS--1.6% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENT--1.5% Greenwich Capital Markets, Tri-Party Repurchase Agreement, 1.10%, dated 6/30/2003, due 7/1/2003 in the amount of $52,984,754 (fully collateralized by $37,280,000 U.S. Treasury Bonds, 7.875%, 2/15/2021, value $54,044,003) 52,983,135 52,983,135 U.S. TREASURY BILLS--.1% 1.10%, 7/3/2003 500,000 (b) 499,980 1.10%, 7/17/2003 50,000 (b) 49,983 1.04%, 7/31/2003 1,600,000 (b) 1,598,960 1.05%, 8/14/2003 500,000 (b) 499,530 ..95%, 8/28/2003 1,500,000 (b) 1,498,065 ..79%, 9/11/2003 350,000 (b) 349,419 ..87%, 10/2/2003 500,000 (b) 498,875 4,994,812 TOTAL SHORT-TERM INVESTMENTS (cost $57,977,092) 57,977,947 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $3,335,737,441) 99.9% 3,484,460,277 CASH AND RECEIVABLES (NET) .1% 2,513,953 NET ASSETS 100.0% 3,486,974,230 (A) NON-INCOME PRODUCING. (B) PARTIALLY HELD BY THE BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS. SEE NOTES TO FINANCIAL STATEMENTS. The Fund
STATEMENT OF FINANCIAL FUTURES June 30, 2003 (Unaudited)
Market Value Unrealized Covered by (Depreciation) Contracts Contracts ($) Expiration at 6/30/2003 ($) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL FUTURES LONG Standard & Poor's 500 258 62,777,850 September 2003 (1,928,326)
SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities-- See Statement of Investments--Note 1(b) 3,335,737,441 3,484,460,277 Cash 1,036,933 Dividends and interest receivable 4,213,975 Receivable for shares of Common Stock subscribed 1,296,997 Receivable for futures variation margin--Note 4 9,411 Prepaid expenses 369,472 3,491,387,065 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 742,635 Payable for shares of Common Stock redeemed 3,500,568 Accrued expenses and other liabilities 169,632 4,412,835 - -------------------------------------------------------------------------------- NET ASSETS ($) 3,486,974,230 - -------------------------------------------------------------------------------- COMPOSITION NET ASSETS ($): Paid-in capital 3,753,362,344 Accumulated undistributed investment income--net 540,033 Accumulated net realized gain (loss) on investments (413,722,657) Accumulated net unrealized appreciation (depreciation) on investments [including ($1,928,326) net unrealized (depreciation) on financial futures] 146,794,510 - -------------------------------------------------------------------------------- NET ASSETS ($) 3,486,974,230 NET ASSET VALUE PER SHARE Initial Shares Service Shares - -------------------------------------------------------------------------------- Net Assets ($) 3,328,501,248 158,472,982 Shares Outstanding 133,649,955 6,373,387 - -------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE ($) 24.90 24.86 SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends 27,971,363 Interest 278,974 Income on securities lending 28,814 TOTAL INCOME 28,279,151 EXPENSES: Management fee--Note 3(a) 3,874,592 Prospectus and shareholders' reports 266,940 Distribution fees (Service Shares)--Note 3(b) 140,074 Directors' fees and expenses--Note 3(d) 52,398 Professional fees 42,669 Loan commitment fees--Note 2 24,459 Shareholder servicing costs (Initial Shares)--Note 3(c) 16,477 Interest expense--Note 2 1,216 Registration fees 995 Miscellaneous 64,432 TOTAL EXPENSES 4,484,252 INVESTMENT INCOME--NET 23,794,899 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments (47,607,096) Net realized gain (loss) on financial futures 4,111,144 NET REALIZED GAIN (LOSS) (43,495,952) Net unrealized appreciation (depreciation) on investments (including $160,395 net unrealized appreciation on financial futures) 375,900,995 NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 332,405,043 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 356,199,942 SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF CHANGES IN NET ASSETS Six Months Ended June 30, 2003 Year Ended (Unaudited) December 31, 2002 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income--net 23,794,899 49,603,780 Net realized gain (loss) on investments (43,495,952) (371,066,770) Net unrealized appreciation (depreciation) on investments 375,900,995 (657,806,225) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 356,199,942 (979,269,215) - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income--net: Initial shares (22,841,111) (48,922,148) Service shares (792,782) (650,696) TOTAL DIVIDENDS (23,633,893) (49,572,844) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold: Initial shares 249,817,097 699,891,785 Service shares 70,915,293 68,157,465 Dividends reinvested: Initial shares 22,841,111 48,922,148 Service shares 792,782 650,696 Cost of shares redeemed: Initial shares (356,198,636) (1,030,501,043) Service shares (5,816,746) (4,860,235) INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS (17,649,099) (217,739,184) TOTAL INCREASE (DECREASE) IN NET ASSETS 314,916,950 (1,246,581,243) - -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 3,172,057,280 4,418,638,523 END OF PERIOD 3,486,974,230 3,172,057,280 Undistributed investment income--net 540,033 379,027 The Fund STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Six Months Ended June 30, 2003 Year Ended (Unaudited) December 31, 2002 - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: INITIAL SHARES Shares sold 10,727,641 27,094,044 Shares issued for dividends reinvested 985,679 2,028,537 Shares redeemed (15,699,924) (41,071,216) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (3,986,604) (11,948,635) - -------------------------------------------------------------------------------- SERVICE SHARES Shares sold 3,086,250 2,793,084 Shares issued for dividends reinvested 33,864 28,085 Shares redeemed (256,244) (213,844) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,863,870 2,607,325 SEE NOTES TO FINANCIAL STATEMENTS. FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements.
Six Months Ended Year Ended December 31, June 30, 2003 ---------------------------------------------------------------------- INITIAL SHARES (Unaudited) 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 22.47 29.36 34.00 38.45 32.52 25.75 Investment Operations: Investment income--net .17(a) .34(a) .34(a) .35(a) .40(a) .37 Net realized and unrealized gain (loss) on investments 2.43 (6.89) (4.48) (3.88) 6.24 6.85 Total from Investment Operations 2.60 (6.55) (4.14) (3.53) 6.64 7.22 Distributions: Dividends from investment income--net (.17) (.34) (.34) (.35) (.38) (.38) Dividends from net realized gain on investments -- -- (.16) (.57) (.33) (.07) Total Distributions (.17) (.34) (.50) (.92) (.71) (.45) Net asset value, end of period 24.90 22.47 29.36 34.00 38.45 32.52 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) 11.64(b) (22.36) (12.18) (9.28) 20.60 28.21 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .14(b) .27 .26 .26 .26 .26 Ratio of net investment income to average net assets .75(b) 1.33 1.09 .95 1.13 1.35 Portfolio Turnover Rate 2.40(b) 6.05 4.03 4.97 2.64 2.40 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 3,328,501 3,093,295 4,392,178 5,134,195 5,229,706 3,440,542 (A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (B) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended Year Ended December 31, June 30, 2003 ----------------------------------------------- SERVICE SHARES (Unaudited) 2002 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 22.44 29.33 34.00 34.00 Investment Operations: Investment income--net .15(b) .29(b) .24(b) -- Net realized and unrealized gain (loss) on investments 2.42 (6.89) (4.48) -- Total from Investment Operations 2.57 (6.60) (4.24) -- Distributions: Dividends from investment income--net (.15) (.29) (.27) -- Dividends from net realized gain on investments -- -- (.16) -- Total Distributions (.15) (.29) (.43) -- Net asset value, end of period 24.86 22.44 29.33 34.00 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) 11.49(c) (22.55) (12.46) -- - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .26(c) .51 .57 -- Ratio of net investment income to average net assets .62(c) 1.19 .83 -- Portfolio Turnover Rate 2.40(c) 6.05 4.03 4.97 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 158,473 78,762 26,461 1 (A) THE FUND COMMENCED OFFERING SERVICE SHARES ON DECEMBER 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS. NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--Significant Accounting Policies: Dreyfus Stock Index Fund, Inc. (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 match the total return of 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 wholly-owned subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation. Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund's shares, which are sold without a sales charge. The fund is authorized to issue 400 million shares of $.001 par value Common Stock in each of the following 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 shareholder services plan and the expenses borne by each class and certain voting rights. 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. Effective April 14, 2003, the fund began pricing securities traded on the NASDAQ stock market using the NASDAQ official closing price. Securities not listed on an exchange The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) 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 and premium 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 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. The fund may lend securities to qualified institutions. At originations, all loans are secured by cash collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by Dreyfus. The fund will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the fund would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner. (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, if any, 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. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. (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. The fund has an unused capital loss carryover of $309,581,798 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2002. If not applied, the carryover expires in fiscal 2010. The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2002, was as follows: ordinary income $49,572,844. The tax character of current year distributions will be determined at the end of the current fiscal year. 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. The Fun NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) 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. The average daily amount of borrowings outstanding under the Facility during the period ended June 30, 2003 was approximately $145,300, with a related weighted average annualized interest rate of 1.69%. NOTE 3--Management Fee, Index Management Fee and Other Transactions With Affiliates: (a) Pursuant to a 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, 2003 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, Rule 12b-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 June 30, 2003, 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 Service shares 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 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. During the period ended June 30, 2003, Service shares were charged $140,074 pursuant to the Plan. (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 Initial shares 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, 2003, the fund was charged $586 pursuant to the transfer agency agreement. (d) Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the "Fund Group"). 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 in proportion to each fund' s relative net assets. The chairman of the Board receives an additional 25% of such compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board Members, if any, receive 50% of the annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. NOTE 4--Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended June 30, 2003, amounted to $84,922,486 and $75,019,864, 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 broker, 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, 2003 are set forth in the Statement of Financial Futures. At June 30, 2003, accumulated net unrealized appreciation on investments was $148,722,836, consisting of $732,508,068 gross unrealized appreciation and $583,785,232 gross unrealized depreciation. At June 30, 2003, 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). PROXY RESULTS (Unaudited) The fund held a special meeting of shareholders on December 18, 2002. The proposals considered at the meeting, and the results, are as follows:
Shares ------------------------------------------------------------------- For Against Abstained ------------------------------------------------------------------- 1. To approve changes to certain of the fund's fundamental policies and investment restrictions to permit participation in a portfolio securities lending program 115,979,685 14,301,096 9,477,238 2. To approve changes to certain of the fund's fundamental policies and investment restrictions to permit investment in other investment companies 117,475,912 13,005,628 9,276,479 The Fund
NOTES For More Information Dreyfus Stock Index Fund, Inc. 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. 200 Park Avenue New York, NY 10166 Distributor Dreyfus Service Corporation 200 Park Avenue New York, NY 10166 To obtain information: BY TELEPHONE Call your financial representative or 1-800-554-4611 BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss Boulevard Uniondale, NY 11556-0144 (c) 2003 Dreyfus Service Corporation 763SA0603 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. [RESERVED] ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Based on an evaluation of the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, the "Disclosure Controls") as of a date within 90 days prior to the filing date (the "Filing Date") of this Form N-CSR (the "Report"), the Disclosure Controls are effectively designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant's management, including the Registrant's principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. (b) There were no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. (a) Not applicable. (b)(1) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940. (PAGE) SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. [NAME OF FUND] By: /S/STEPHEN E. CANTER Stephen E. Canter President Date: August 14, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /S/ STEPHEN E. CANTER Stephen E. Canter Chief Executive Officer Date: August 14, 2003 By: /S/ JAMES WINDELS James Windels Chief Financial Officer Date: August 14, 2003 EXHIBIT INDEX (b)(1) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940. (b)(2) Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002. EX-99.CERT 3 ncsr302certs.txt CERTIFICATION REQUIRED BY RULE 30A-2 [EX-99.CERT] Exhibit (b)(1) SECTION 302 CERTIFICATIONS I, Stephen E. Canter, certify that: 1. I have reviewed this report on Form N-CSR of DREYFUS STOCK INDEX FUND, INC.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. By: /S/ STEPHEN E. CANTER Stephen E. Canter Chief Executive Officer Date: August 14, 2003 SECTION 302 CERTIFICATIONS I, James Windels, certify that: 1. I have reviewed this report on Form N-CSR of DREYFUS STOCK INDEX FUND, INC.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. By: /S/JAMES WINDELS James Windels Chief Financial Officer Date: August 14, 2003 EX-99.906CERT 4 ncsr906cert.txt CERTIFICATION REQUIRED BY SECTION 906 [EX. 99.906CERT] Exhibit (b)(2) SECTION 906 CERTIFICATIONS In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. By: /S/ STEPHEN E. CANTER Stephen E. Canter Chief Executive Officer Date: August 14, 2003 By: /S/ JAMES WINDELS James Windels Chief Financial Officer Date: August 14, 2003 [A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.] -----END PRIVACY-ENHANCED MESSAGE-----