0000846800-11-000013.txt : 20110825 0000846800-11-000013.hdr.sgml : 20110825 20110825143720 ACCESSION NUMBER: 0000846800-11-000013 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20110603 FILED AS OF DATE: 20110825 DATE AS OF CHANGE: 20110825 EFFECTIVENESS DATE: 20110825 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05719 FILM NUMBER: 111056336 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 0000846800 S000001911 Dreyfus Stock Index Fund, Inc. C000005028 Dreyfus Stock Index Fund, Inc. - Initial Shares C000005029 Dreyfus Stock Index Fund, Inc. - Service Shares N-CSRS 1 formncsr-763.htm SEMI-ANNUAL REPORT formncsr-763.htm - Generated by SEC Publisher for SEC Filing

 

 

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

811-5719

 

 

 

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)

 

 

 

 

 

Michael A. Rosenberg, 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:

 

12/31

 

Date of reporting period:

6/30/11

 

             

 

 


 

 

 

FORM N-CSR

Item 1.      Reports to Stockholders.

 


 

Dreyfus 
Stock Index Fund, Inc. 

 

SEMIANNUAL REPORT June 30, 2011




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     

A Letter from the Chairman and CEO

3     

Discussion of Fund Performance

6     

Understanding Your Fund’s Expenses

6     

Comparing Your Fund’s Expenses With Those of Other Funds

7     

Statement of Investments

23     

Statement of Financial Futures

24     

Statement of Assets and Liabilities

25     

Statement of Operations

26     

Statement of Changes in Net Assets

28     

Financial Highlights

30     

Notes to Financial Statements

41     

Information About the Renewal of the Fund’s Management Agreement

 

FOR MORE INFORMATION

 

Back Cover



Dreyfus
Stock Index Fund, Inc.

The Fund


A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Stock Index Fund, Inc., covering the six-month period from January 1, 2011, through June 30, 2011. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Although 2011 began on an optimistic note amid encouraging economic data, by midyear investors returned to a more cautious outlook. The U.S. and global economies continued to grow over the reporting period, but at a relatively sluggish pace. First, manufacturing activity proved unsustainably strong in late 2010 and early 2011, leading to a subsequent slowdown in new orders. Second, turmoil in the Middle East drove oil prices higher and produced an inflationary drag on real incomes.Third, natural and nuclear disasters in Japan added to upward pressure on energy prices, and these unexpected events disrupted the global supply chain, especially in the automotive sector. Finally, in the United States, disappointing labor and housing markets weighed on investor sentiment. As a result, U.S. stocks generally produced only modest gains over the first half of the year.

We expect economic conditions to improve over the second half of 2011. Inflationary pressures appear to be peaking in most countries, including the United States, and we have already seen energy prices retreat from their highs. In addition, a successful resolution to the current debate regarding government spending and borrowing, without major fiscal tightening over the near term, should help avoid a serious disruption to the domestic economy. To assess how these and other developments may affect your investments, we encourage you, as always, to speak with your financial advisor.

Thank you for your continued confidence and support.


Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation

July 15, 2011

2




DISCUSSION OF FUND PERFORMANCE

For the period of January 1, 2011, through June 30, 2011, as provided by Thomas J. Durante, Karen Q.Wong and Richard A. Brown, Portfolio Managers

Fund and Market Performance Overview

For the six-month period ended June 30, 2011, Dreyfus Stock Index Fund’s Initial shares produced a total return of 5.95%, and its Service shares produced a total return of 5.81%.1 In comparison, the fund’s benchmark, the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), produced a total return of 6.01% for the same period.2,3

Although U.S. stocks rallied early in the year as an economic recovery appeared to gain traction, renewed concerns later in the spring caused the market to give back some of its previous gains.The difference in returns between the fund and the S&P 500 Index was primarily the result of transaction costs and operating expenses that are not reflected in the S&P 500 Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the S&P 500 Index by generally investing in all 500 stocks in the S&P 500 Index in proportion to their respective weighting. Often considered a proxy for the stock market in general, the S&P 500 Index is made up of 500 common stocks chosen to reflect the industries of the U.S. economy. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 500 Index than smaller ones. The fund also may use stock index futures as a substitute for the sale or purchase of securities.

Shifting Sentiment Sparked Market Volatility

Investors had become optimistic by the start of 2011 due to improvements in employment, consumer spending and corporate earnings, sending stock prices broadly higher. However, the market rally was interrupted in February when political unrest in the Middle East led to sharply rising crude oil prices, and again in March when natural and

The Fund  3 

 



DISCUSSION OF FUND PERFORMANCE (continued)

nuclear disasters in Japan disrupted the global industrial supply chain. Nonetheless, investors proved resilient, and the U.S. stock market bounced back from these shocks.

In late April, investor sentiment began to deteriorate in earnest when Greece again appeared headed for default on its sovereign debt, U.S. economic data proved disappointing and the debate regarding U.S. government spending and borrowing intensified. Stocks suffered bouts of heightened volatility as newly risk-averse investors shifted their focus from economically sensitive industry groups to those that historically have held up well under uncertain economic conditions. Although the market rallied over the final two weeks of June when Greece avoided defaulting on its debt, gains were not enough to fully offset earlier market weakness.

Rotation to Defensive Sectors Bolstered Health Care Stocks

The health care sector proved to be the top performing sector within the S&P 500 Index over the first half of 2011 as investors increasingly turned to traditionally defensive investments. Large pharmaceutical companies led the sector’s advance due to increased penetration of emerging markets, efforts to complement sales of pharmaceuticals with consumer products, and strong sales of prescription drugs that balanced weakness in over-the-counter medicines. Managed care providers also fared relatively well as HMOs entered new markets, including Medicare Advantage insurance programs.

Surging oil and natural gas prices supported energy stocks during the reporting period, particularly in the midst of the political uprisings in the oil-rich Middle East. In addition, the catastrophic failure of Japan’s Fukushima nuclear power plant was expected to spark a shift back to fossil fuels, potentially boosting demand for oil and gas.These factors, together with strong ongoing demand from the emerging markets, drove gains in large integrated oil companies.

The information technology sector was propelled higher by growing global demand for technology consulting services as more businesses turned to “cloud computing” for their data management needs. The industrial sector was boosted by rising demand for commercial aircraft to replace aging fleets and brisk sales of smaller planes for private use.

4



Disappointments during the reporting period included the financial sector, where massive litigation settlements weighed on major U.S. banks. U.S. financial institutions also were hurt by the costs of complying with regulatory reforms, low trading volumes in the capital markets, tepid demand for loans and concerns that problems affecting European banks might spread to their U.S. counterparts. Real estate investment trusts proved to be the bright spot in the financials sector due to waning competitive pressures, low borrowing rates and rising demand for residential rentals.

Index Funds Offer Diversification Benefits

As an index fund, we attempt to replicate the returns of the S&P 500 Index by closely approximating the composition of the S&P 500 Index. In our view, one of the greatest benefits of an index fund is that it offers a broadly diversified investment vehicle that can help investors manage risks by limiting the impact on the overall portfolio of unexpected losses in any single industry group or holding.

July 15, 2011

  Equity funds are subject generally to market, market sector, market liquidity, issuer and investment 
  style risks, among other factors, to varying degrees, all of which are more fully described in the 
  fund’s prospectus. 
  The fund is only available as a funding vehicle under variable life insurance policies or variable 
  annuity contracts issued by insurance companies. Individuals may not purchase shares of the fund 
  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. 
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. Investors cannot invest directly in 
  any index. 
3  “Standard & Poor’s®,”“S&P®,”“Standard & Poor’s 500®” and “S&P 500®” are 
  trademarks of Standard & Poor’s Financial Services LLC, 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  5 

 



UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads), redemption fees and expenses associated with variable annuity or insurance contracts, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Stock Index Fund, Inc. from January 1, 2011 to June 30, 2011. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended June 30, 2011

  Initial Shares  Service Shares 
Expenses paid per $1,000  $1.33  $2.60 
Ending value (after expenses)  $1,059.50  $1,058.10 

 

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended June 30, 2011

  Initial Shares  Service Shares 
Expenses paid per $1,000  $1.30  $2.56 
Ending value (after expenses)  $1,023.51  $1,022.27 

 

† Expenses are equal to the fund’s annualized expense ratio of .26% for Initial Shares and .51% for Service Shares, 
multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). 

 

6



STATEMENT OF INVESTMENTS 
June 30, 2011 (Unaudited) 

 

Common Stocks—98.6%  Shares  Value ($) 
Consumer Discretionary—10.6%     
Abercrombie & Fitch, Cl. A  13,384  895,657 
Amazon.com  52,426 a  10,720,593 
Apollo Group, Cl. A  18,995 a  829,702 
AutoNation  9,350 a,b  342,303 
AutoZone  3,598 a  1,060,870 
Bed Bath & Beyond  37,230 a  2,173,115 
Best Buy  47,627 b  1,495,964 
Big Lots  10,678 a  353,976 
Cablevision Systems (NY Group), Cl. A  33,288  1,205,358 
Carmax  33,007 a  1,091,541 
Carnival  63,127  2,375,469 
CBS, Cl. B  97,553  2,779,285 
Chipotle Mexican Grill  4,572 a  1,409,045 
Coach  43,896  2,806,271 
Comcast, Cl. A  408,591  10,353,696 
D.R. Horton  42,244  486,651 
Darden Restaurants  19,977  994,056 
DeVry  9,492  561,262 
DIRECTV, Cl. A  113,179 a  5,751,757 
Discovery Communications, Cl. A  41,791 a  1,711,759 
Expedia  28,744  833,289 
Family Dollar Stores  18,659  980,717 
Ford Motor  552,566 a  7,619,885 
Fortune Brands  22,958  1,464,032 
GameStop, Cl. A  19,638 a,b  523,745 
Gannett  34,794  498,250 
Gap  60,167  1,089,023 
Genuine Parts  23,597  1,283,677 
Goodyear Tire & Rubber  37,005 a  620,574 
H&R Block  43,977  705,391 
Harley-Davidson  34,662  1,420,102 
Harman International Industries  10,315  470,055 
Hasbro  20,685  908,692 
Home Depot  234,650  8,499,023 
International Game Technology  45,202  794,651 

 

The Fund  7 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Consumer Discretionary (continued)     
Interpublic Group of Cos.  72,851  910,637 
J.C. Penney  33,637  1,161,822 
Johnson Controls  99,550  4,147,253 
Kohl’s  40,643  2,032,556 
Leggett & Platt  22,678  552,890 
Lennar, Cl. A  21,126 b  383,437 
Limited Brands  38,538  1,481,786 
Lowe’s  192,736  4,492,676 
Macy’s  62,221  1,819,342 
Marriott International, Cl. A  42,322  1,502,008 
Mattel  50,715  1,394,155 
McDonald’s  152,592  12,866,557 
McGraw-Hill  44,748  1,875,389 
Netflix  6,506 a  1,709,061 
Newell Rubbermaid  42,446  669,798 
News, Cl. A  333,212  5,897,852 
NIKE, Cl. B  56,606  5,093,408 
Nordstrom  24,338  1,142,426 
O’Reilly Automotive  20,768 a  1,360,512 
Omnicom Group  42,198  2,032,256 
Polo Ralph Lauren  9,634  1,277,565 
Priceline.com  7,288 a  3,730,946 
Pulte Group  46,025 a,b  352,552 
Ross Stores  17,460  1,398,895 
Scripps Networks Interactive, Cl. A  13,842  676,597 
Sears Holdings  6,199 a,b  442,857 
Stanley Black & Decker  24,785  1,785,759 
Staples  106,881  1,688,720 
Starbucks  109,470  4,322,970 
Starwood Hotels & Resorts Worldwide  27,596  1,546,480 
Target  101,518  4,762,209 
Tiffany & Co.  19,039  1,494,942 
Time Warner  159,421  5,798,142 
Time Warner Cable  49,999  3,901,922 
TJX  56,956  2,991,899 
Urban Outfitters  18,896 a  531,922 

 

8



Common Stocks (continued)  Shares  Value ($) 
Consumer Discretionary (continued)     
VF  12,586  1,366,336 
Viacom, Cl. B  86,969  4,435,419 
Walt Disney  277,694  10,841,174 
Washington Post, Cl. B  738 b  309,185 
Whirlpool  10,963  891,511 
Wyndham Worldwide  24,988  840,846 
Wynn Resorts  11,128  1,597,313 
Yum! Brands  69,360  3,831,446 
    190,452,864 
Consumer Staples—10.5%     
Altria Group  305,672  8,072,798 
Archer-Daniels-Midland  99,880  3,011,382 
Avon Products  63,438  1,776,264 
Brown-Forman, Cl. B  14,845  1,108,773 
Campbell Soup  26,351 b  910,427 
Clorox  20,019  1,350,081 
Coca-Cola  335,895  22,602,375 
Coca-Cola Enterprises  48,415  1,412,750 
Colgate-Palmolive  72,080  6,300,513 
ConAgra Foods  59,517  1,536,134 
Constellation Brands, Cl. A  26,462 a  550,939 
Costco Wholesale  63,648  5,170,764 
CVS Caremark  201,275  7,563,914 
Dean Foods  26,917 a  330,272 
Dr. Pepper Snapple Group  33,679  1,412,160 
Estee Lauder, Cl. A  16,685  1,755,095 
General Mills  92,506  3,443,073 
H.J. Heinz  46,585  2,482,049 
Hershey  22,871  1,300,216 
Hormel Foods  21,547  642,316 
J.M. Smucker  17,109  1,307,812 
Kellogg  37,532  2,076,270 
Kimberly-Clark  57,923  3,855,355 
Kraft Foods, Cl. A  258,181  9,095,717 
Kroger  89,555  2,220,964 
Lorillard  21,627  2,354,531 

 

The Fund  9 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Consumer Staples (continued)     
McCormick & Co.  19,704  976,727 
Mead Johnson Nutrition  29,885  2,018,732 
Molson Coors Brewing, Cl. B  22,989  1,028,528 
PepsiCo  232,164  16,351,311 
Philip Morris International  261,644  17,469,970 
Procter & Gamble  410,131  26,072,028 
Reynolds American  50,031  1,853,649 
Safeway  53,545  1,251,347 
Sara Lee  84,358  1,601,958 
SUPERVALU  32,703 b  307,735 
SYSCO  85,272  2,658,781 
Tyson Foods, Cl. A  45,986  893,048 
Wal-Mart Stores  281,408  14,954,021 
Walgreen  134,581  5,714,309 
Whole Foods Market  21,638  1,372,931 
    188,168,019 
Energy—12.5%     
Alpha Natural Resources  31,657 a  1,438,494 
Anadarko Petroleum  73,016  5,604,708 
Apache  56,449  6,965,242 
Baker Hughes  63,277  4,591,379 
Cabot Oil & Gas  15,896  1,054,064 
Cameron International  35,587 a  1,789,670 
Chesapeake Energy  96,022  2,850,893 
Chevron  295,422  30,381,198 
ConocoPhillips  207,970  15,637,264 
Consol Energy  33,538  1,625,922 
Denbury Resources  58,305 a  1,166,100 
Devon Energy  62,263  4,906,947 
Diamond Offshore Drilling  10,279 b  723,744 
El Paso  112,106  2,264,541 
EOG Resources  39,691  4,149,694 
EQT  22,036  1,157,331 
Exxon Mobil  724,528  58,962,089 
FMC Technologies  36,277 a  1,624,847 
Halliburton  134,174  6,842,874 

 

10



Common Stocks (continued)  Shares  Value ($) 
Energy (continued)     
Helmerich & Payne  15,573  1,029,687 
Hess  44,324  3,313,662 
Marathon Oil  103,598  5,457,543 
Murphy Oil  28,303  1,858,375 
Nabors Industries  42,837 a  1,055,504 
National Oilwell Varco  62,208  4,865,288 
Newfield Exploration  19,908 a  1,354,142 
Noble  37,838  1,491,196 
Noble Energy  25,716  2,304,925 
Occidental Petroleum  118,886  12,368,899 
Peabody Energy  39,672  2,337,078 
Pioneer Natural Resources  17,064  1,528,422 
QEP Resources  26,556  1,110,837 
Range Resources  23,713  1,316,071 
Rowan  17,259 a  669,822 
Schlumberger  199,169  17,208,202 
Southwestern Energy  51,176 a  2,194,427 
Spectra Energy  95,902  2,628,674 
Sunoco  17,872  745,441 
Tesoro  21,066 a  482,622 
Valero Energy  83,366  2,131,669 
Williams  86,137  2,605,644 
    223,795,131 
Financial—14.9%     
ACE  49,600  3,264,672 
Aflac  69,541  3,246,174 
Allstate  77,526  2,366,869 
American Express  152,793  7,899,398 
American International Group  64,224 a,b  1,883,048 
Ameriprise Financial  36,597  2,110,915 
AON  48,519  2,489,025 
Apartment Investment & Management, Cl. A  17,004 c  434,112 
Assurant  14,251  516,884 
AvalonBay Communities  12,759 c  1,638,256 
Bank of America  1,489,028  16,319,747 
Bank of New York Mellon  183,210  4,693,840 

 

The Fund  11 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Financial (continued)     
BB&T  101,178  2,715,618 
Berkshire Hathaway, Cl. B  254,438 a  19,690,957 
BlackRock  14,143  2,712,769 
Boston Properties  20,933 c  2,222,247 
Capital One Financial  67,810  3,503,743 
CB Richard Ellis Group, Cl. A  42,783 a  1,074,281 
Charles Schwab  146,483  2,409,645 
Chubb  43,823  2,743,758 
Cincinnati Financial  24,898 b  726,524 
Citigroup  429,016  17,864,226 
CME Group  9,936  2,897,238 
Comerica  25,528  882,503 
Discover Financial Services  80,361  2,149,657 
E*TRADE Financial  32,672 a  450,874 
Equity Residential Properties Trust  43,574 c  2,614,440 
Federated Investors, Cl. B  13,402 b  319,504 
Fifth Third Bancorp  135,770  1,731,067 
First Horizon National  35,950  342,963 
Franklin Resources  21,565  2,831,269 
Genworth Financial, Cl. A  71,145 a  731,371 
Goldman Sachs Group  76,613  10,196,424 
Hartford Financial Services Group  65,099  1,716,661 
HCP  59,109 a,c  2,168,709 
Health Care REIT  25,151 c  1,318,667 
Host Hotels & Resorts  98,168 a,c  1,663,948 
Hudson City Bancorp  77,806  637,231 
Huntington Bancshares  127,785  838,270 
IntercontinentalExchange  10,821 a  1,349,487 
Invesco  68,015  1,591,551 
Janus Capital Group  23,766  224,351 
JPMorgan Chase & Co.  583,254  23,878,419 
KeyCorp  129,458  1,078,385 
Kimco Realty  59,983 c  1,118,083 
Legg Mason  21,950  719,082 
Leucadia National  29,322  999,880 
Lincoln National  44,905  1,279,343 

 

12



Common Stocks (continued)  Shares  Value ($) 
Financial (continued)     
Loews  47,098  1,982,355 
M&T Bank  17,597  1,547,656 
Marsh & McLennan  80,663  2,515,879 
Marshall & Ilsley  76,202  607,330 
MetLife  154,029  6,757,252 
Moody’s  28,954  1,110,386 
Morgan Stanley  225,386  5,186,132 
Nasdaq OMX Group  20,564 a  520,269 
Northern Trust  35,872  1,648,677 
NYSE Euronext  38,471  1,318,401 
People’s United Financial  52,780  709,363 
Plum Creek Timber  24,875 b,c  1,008,432 
PNC Financial Services Group  77,452  4,616,914 
Principal Financial Group  47,619  1,448,570 
Progressive  96,434  2,061,759 
ProLogis  59,986 c  2,149,898 
Prudential Financial  71,643  4,555,778 
Public Storage  20,719 c  2,362,173 
Regions Financial  185,565  1,150,503 
Simon Property Group  43,294 c  5,032,062 
SLM  78,070  1,312,357 
State Street  73,539  3,315,874 
SunTrust Banks  78,412  2,023,030 
T. Rowe Price Group  37,994  2,292,558 
Torchmark  12,166  780,327 
Travelers  62,741  3,662,820 
U.S. Bancorp  280,622  7,158,667 
Unum Group  46,024  1,172,692 
Ventas  23,130 c  1,219,182 
Vornado Realty Trust  23,985 c  2,234,922 
Wells Fargo & Co.  777,034  21,803,574 
Weyerhaeuser  79,628 c  1,740,668 
XL Group  46,261  1,016,817 
Zions Bancorporation  26,084 b  626,277 
    266,905,639 

 

The Fund  13 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Health Care—11.6%     
Abbott Laboratories  228,313  12,013,830 
Aetna  57,091  2,517,142 
Agilent Technologies  50,980 a  2,605,588 
Allergan  44,829  3,732,014 
AmerisourceBergen  40,712  1,685,477 
Amgen  136,224 a  7,948,670 
Baxter International  85,093  5,079,201 
Becton Dickinson & Co.  32,830  2,828,961 
Biogen Idec  35,022 a  3,744,552 
Boston Scientific  224,005 a  1,547,875 
Bristol-Myers Squibb  250,314  7,249,093 
C.R. Bard  12,670  1,391,926 
Cardinal Health  51,135  2,322,552 
CareFusion  32,559 a  884,628 
Celgene  68,212 a  4,114,548 
Cephalon  11,292 a  902,231 
Cerner  21,256 a,b  1,298,954 
CIGNA  40,365  2,075,972 
Coventry Health Care  22,723 a  828,708 
Covidien  72,472  3,857,685 
DaVita  14,265 a  1,235,492 
Dentsply International  20,449  778,698 
Edwards Lifesciences  17,005 a  1,482,496 
Eli Lilly & Co.  149,211  5,599,889 
Express Scripts  78,047 a  4,212,977 
Forest Laboratories  42,263 a  1,662,626 
Gilead Sciences  115,913 a  4,799,957 
Hospira  24,318 a  1,377,858 
Humana  25,121  2,023,245 
Intuitive Surgical  5,623 a  2,092,375 
Johnson & Johnson  402,793  26,793,790 
Laboratory Corp. of America Holdings  14,859 a  1,438,203 
Life Technologies  26,209 a  1,364,703 
McKesson  37,494  3,136,373 
Medco Health Solutions  60,069 a  3,395,100 
Medtronic  157,197  6,056,800 

 

14



Common Stocks (continued)  Shares  Value ($) 
Health Care (continued)     
Merck & Co.  453,570  16,006,485 
Mylan  64,313 a  1,586,602 
Patterson  13,932  458,223 
PerkinElmer  15,624  420,442 
Pfizer  1,162,636  23,950,302 
Quest Diagnostics  22,226  1,313,557 
St. Jude Medical  48,345  2,305,090 
Stryker  48,878  2,868,650 
Tenet Healthcare  71,969 a  449,087 
Thermo Fisher Scientific  57,261 a  3,687,036 
UnitedHealth Group  160,850  8,296,643 
Varian Medical Systems  17,188 a  1,203,504 
Waters  13,261 a  1,269,608 
Watson Pharmaceuticals  18,381 a  1,263,326 
WellPoint  54,692  4,308,089 
Zimmer Holdings  28,541 a  1,803,791 
    207,270,624 
Industrial—11.0%     
3M  104,040  9,868,194 
Avery Dennison  16,213  626,308 
Boeing  107,566  7,952,354 
C.H. Robinson Worldwide  23,994  1,891,687 
Caterpillar  94,007  10,007,985 
Cintas  17,679  583,937 
CSX  161,802  4,242,448 
Cummins  29,290  3,031,222 
Danaher  79,113  4,192,198 
Deere & Co.  61,877  5,101,759 
Dover  27,534  1,866,805 
Dun & Bradstreet  7,740  584,680 
Eaton  50,466  2,596,476 
Emerson Electric  111,034  6,245,662 
Equifax  17,609  611,384 
Expeditors International of Washington  31,396  1,607,161 
Fastenal  43,573 b  1,568,192 
FedEx  46,484  4,409,007 

 

The Fund  15 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Industrial (continued)     
Flowserve  8,254  907,032 
Fluor  26,479  1,712,132 
General Dynamics  55,303  4,121,180 
General Electric  1,555,042  29,328,092 
Goodrich  18,304  1,748,032 
Honeywell International  115,288  6,870,012 
Illinois Tool Works  72,576  4,099,818 
Ingersoll-Rand  47,500  2,156,975 
Iron Mountain  29,666 b  1,011,314 
ITT  26,992  1,590,639 
Jacobs Engineering Group  18,705 a  808,991 
Joy Global  15,262  1,453,553 
L-3 Communications Holdings  15,219  1,330,902 
Lockheed Martin  42,589  3,448,431 
Masco  55,346  665,812 
Norfolk Southern  52,868  3,961,399 
Northrop Grumman  42,276  2,931,841 
Paccar  53,974  2,757,532 
Pall  17,328  974,353 
Parker Hannifin  23,766  2,132,761 
Pitney Bowes  28,715 b  660,158 
Precision Castparts  21,269  3,501,941 
Quanta Services  29,542 a  596,748 
R.R. Donnelley & Sons  30,176  591,751 
Raytheon  52,173  2,600,824 
Republic Services  45,342  1,398,801 
Robert Half International  22,437  606,472 
Rockwell Automation  20,962  1,818,663 
Rockwell Collins  23,369  1,441,634 
Roper Industries  13,383  1,114,804 
Ryder System  7,189  408,695 
Snap-On  8,767  547,762 
Southwest Airlines  112,289  1,282,340 
Stericycle  12,447 a  1,109,277 
Textron  40,899  965,625 
Tyco International  70,400  3,479,872 

 

16



Common Stocks (continued)  Shares  Value ($) 
Industrial (continued)     
Union Pacific  71,702  7,485,689 
United Parcel Service, Cl. B  145,273  10,594,760 
United Technologies  135,483  11,991,600 
W.W. Grainger  8,599  1,321,236 
Waste Management  69,622  2,594,812 
    197,111,724 
Information Technology—17.6%     
Adobe Systems  75,357 a  2,369,978 
Advanced Micro Devices  85,441 a  597,233 
Akamai Technologies  27,733 a  872,758 
Altera  46,054  2,134,603 
Amphenol, Cl. A  25,281  1,364,921 
Analog Devices  43,015  1,683,607 
Apple  135,871 a  45,607,819 
Applied Materials  193,312  2,514,989 
Autodesk  34,405 a  1,328,033 
Automatic Data Processing  72,781  3,834,103 
BMC Software  25,687 a  1,405,079 
Broadcom, Cl. A  70,483 a  2,371,048 
CA  55,637  1,270,749 
Cisco Systems  808,638  12,622,839 
Citrix Systems  26,985 a  2,158,800 
Cognizant Technology Solutions, Cl. A  44,823 a  3,287,319 
Computer Sciences  22,493  853,834 
Compuware  34,477 a  336,496 
Corning  231,395  4,199,819 
Dell  244,422 a  4,074,515 
eBay  167,883 a  5,417,584 
Electronic Arts  48,639 a  1,147,880 
EMC  304,656 a  8,393,273 
F5 Networks  11,968 a  1,319,472 
Fidelity National Information Services  39,030  1,201,734 
First Solar  7,963 a,b  1,053,266 
Fiserv  21,702 a  1,359,196 
FLIR Systems  23,354  787,263 
Google, Cl. A  36,933 a  18,702,133 

 

The Fund  17 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
Harris  19,349  871,866 
Hewlett-Packard  306,277  11,148,483 
Intel  781,944  17,327,879 
International Business Machines  178,597  30,638,315 
Intuit  40,431 a  2,096,752 
Jabil Circuit  27,905  563,681 
JDS Uniphase  32,611 a  543,299 
Juniper Networks  77,906 a  2,454,039 
KLA-Tencor  25,253  1,022,241 
Lexmark International, Cl. A  12,216 a  357,440 
Linear Technology  33,959  1,121,326 
LSI  88,148 a  627,614 
MasterCard, Cl. A  13,893  4,186,517 
MEMC Electronic Materials  34,714 a  296,110 
Microchip Technology  27,104 b  1,027,513 
Micron Technology  125,525 a  938,927 
Microsoft  1,090,284  28,347,384 
Molex  19,798 b  510,194 
Monster Worldwide  18,949 a  277,792 
Motorola Mobility Holdings  42,601 a  938,926 
Motorola Solutions  48,686 a  2,241,503 
National Semiconductor  34,176  841,071 
NetApp  54,537 a  2,878,463 
Novellus Systems  12,764 a  461,291 
NVIDIA  86,106 a  1,372,099 
Oracle  572,586  18,843,805 
Paychex  47,633  1,463,286 
QUALCOMM  244,979  13,912,357 
Red Hat  27,739 a  1,273,220 
SAIC  42,761 a  719,240 
Salesforce.com  17,273 a  2,573,332 
SanDisk  34,394 a  1,427,351 
Symantec  111,564 a  2,200,042 
Tellabs  61,602  283,985 
Teradata  25,394 a  1,528,719 
Teradyne  25,613 a  379,072 

 

18



Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
Texas Instruments  171,001  5,613,963 
Total System Services  24,617  457,384 
VeriSign  25,078  839,110 
Visa, Cl. A  71,209  6,000,070 
Western Digital  33,221 a  1,208,580 
Western Union  96,030  1,923,481 
Xerox  201,804  2,100,780 
Xilinx  38,307  1,397,056 
Yahoo!  193,033 a  2,903,216 
    314,409,117 
Materials—3.6%     
Air Products & Chemicals  31,178  2,979,993 
Airgas  11,041  773,312 
AK Steel Holding  17,376  273,846 
Alcoa  157,527  2,498,378 
Allegheny Technologies  14,494  919,934 
Ball  25,175  968,230 
Bemis  14,975  505,855 
CF Industries Holdings  10,193  1,444,042 
Cliffs Natural Resources  21,113  1,951,897 
Dow Chemical  171,508  6,174,288 
E.I. du Pont de Nemours & Co.  136,355  7,369,988 
Eastman Chemical  10,679  1,090,006 
Ecolab  34,514  1,945,899 
FMC  10,651  916,199 
Freeport-McMoRan Copper & Gold  138,188  7,310,145 
International Flavors & Fragrances  12,049  774,028 
International Paper  63,919  1,906,065 
MeadWestvaco  23,854  794,577 
Monsanto  78,277  5,678,214 
Newmont Mining  72,918  3,935,384 
Nucor  46,774  1,928,024 
Owens-Illinois  23,123 a  596,805 
PPG Industries  23,227  2,108,779 
Praxair  44,543  4,828,016 
Sealed Air  24,225  576,313 

 

The Fund  19 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Materials (continued)     
Sherwin-Williams  13,280  1,113,794 
Sigma-Aldrich  18,017  1,322,087 
Titanium Metals  13,042  238,929 
United States Steel  21,846 b  1,005,790 
Vulcan Materials  18,516 b  713,421 
    64,642,238 
Telecommunication Services—3.0%     
American Tower, Cl. A  58,511 a  3,061,881 
AT&T  870,232  27,333,987 
CenturyLink  86,737  3,506,777 
Frontier Communications  148,983 b  1,202,293 
Metropcs Communications  38,781 a  667,421 
Sprint Nextel  435,160 a  2,345,512 
Verizon Communications  413,792  15,405,476 
Windstream  74,706 b  968,190 
    54,491,537 
Utilities—3.3%     
AES  98,987 a  1,261,094 
Ameren  34,625  998,585 
American Electric Power  70,511  2,656,854 
CenterPoint Energy  59,792  1,156,975 
CMS Energy  34,329  675,938 
Consolidated Edison  43,283  2,304,387 
Constellation Energy Group  29,701  1,127,450 
Dominion Resources  85,971  4,149,820 
DTE Energy  24,927  1,246,849 
Duke Energy  197,066  3,710,753 
Edison International  48,367  1,874,221 
Entergy  26,806  1,830,314 
Exelon  97,323  4,169,317 
FirstEnergy  60,685  2,679,243 
Integrys Energy Group  11,732  608,187 

 

20



Common Stocks (continued)  Shares  Value ($) 
Utilities (continued)     
NextEra Energy  62,415  3,586,366 
Nicor  6,905  377,980 
NiSource  42,092  852,363 
Northeast Utilities  26,465  930,774 
NRG Energy  37,945 a  932,688 
ONEOK  15,358  1,136,646 
Pepco Holdings  32,952  646,848 
PG&E  57,746  2,427,064 
Pinnacle West Capital  15,309  682,475 
PPL  83,623  2,327,228 
Progress Energy  43,250  2,076,433 
Public Service Enterprise Group  75,260  2,456,486 
SCANA  16,125  634,841 
Sempra Energy  35,116  1,856,934 
Southern  123,923  5,004,011 
TECO Energy  32,626  616,305 
Wisconsin Energy  33,389  1,046,745 
Xcel Energy  71,546  1,738,568 
    59,780,742 
Total Common Stocks     
(cost $1,241,264,883)    1,767,027,635 
  Principal   
Short-Term Investments—.1%  Amount ($)  Value ($) 
U.S. Treasury Bills;     
0.10%, 9/22/11     
(cost $1,784,826)  1,785,000 d  1,784,938 
 
Other Investment—1.1%  Shares  Value ($) 
Registered Investment Company;     
Dreyfus Institutional Preferred     
Plus Money Market Fund     
(cost $19,874,000)  19,874,000 e  19,874,000 

 

The Fund  21 

 



STATEMENT OF INVESTMENTS (Unaudited) (continued)

Investment of Cash Collateral     
for Securities Loaned—1.1%  Shares  Value ($) 
Registered Investment Company;     
Dreyfus Institutional Cash Advantage Fund     
(cost $18,921,775)  18,921,775 e  18,921,775 
Total Investments (cost $1,281,845,484)  100.9%  1,807,608,348 
Liabilities, Less Cash and Receivables  (.9%)  (16,825,846) 
Net Assets  100.0%  1,790,782,502 

 

REIT—Real Estate Investment Trust

a Non-income producing security. 
b Security, or portion thereof, on loan.At June 30, 2011, the value of the fund’s securities on loan was $18,387,533 
and the value of the collateral held by the fund was $18,921,775. 
c Investment in real estate investment trust. 
d Held by a broker as collateral for open financial futures positions. 
e Investment in affiliated money market mutual fund. 

 

Portfolio Summary (Unaudited)     
 
  Value (%)    Value (%) 
Information Technology  17.6  Materials  3.6 
Financial  14.9  Utilities  3.3 
Energy  12.5  Telecommunication Services  3.0 
Health Care  11.6  Short-Term/   
Industrial  11.0  Money Market Investments  2.3 
Consumer Discretionary  10.6     
Consumer Staples  10.5    100.9 
 
† Based on net assets.       
See notes to financial statements.       

 

22



STATEMENT OF FINANCIAL FUTURES 
June 30, 2011 (Unaudited) 

 

    Market Value    Unrealized 
    Covered by    Appreciation 
  Contracts  Contracts ($)  Expiration  at 6/30/2011 ($) 
Financial Futures Long         
Standard & Poor’s 500 E-Mini  372  24,468,300  September 2011  751,117 
 
See notes to financial statements.         

 

The Fund  23 

 



STATEMENT OF ASSETS AND LIABILITIES 
June 30, 2011 (Unaudited) 

 

  Cost  Value 
Assets ($):     
Investments in securities—See Statement of Investments (including   
securities on loan, valued at $18,387,533)—Note 1(b):     
Unaffiliated issuers  1,243,049,709  1,768,812,573 
  Affiliated issuers  38,795,775  38,795,775 
Cash    853,737 
Dividends and interest receivable    2,263,984 
Receivable for investment securities sold    248,852 
Receivable for futures variation margin—Note 4    209,507 
Prepaid expenses and other assets    76,364 
    1,811,260,792 
Liabilities ($):     
Due to The Dreyfus Corporation and affiliates—Note 3(c)    393,008 
Liability for securities on loan—Note 1(b)    18,921,775 
Payable for shares of Common Stock redeemed    929,556 
Interest payable—Note 2    968 
Accrued expenses    232,983 
    20,478,290 
Net Assets ($)    1,790,782,502 
Composition of Net Assets ($):     
Paid-in capital    1,267,656,193 
Accumulated undistributed investment income—net    861,756 
Accumulated net realized gain (loss) on investments    (4,249,428) 
Accumulated net unrealized appreciation (depreciation)     
on investments (including $751,117 net unrealized     
appreciation on financial futures)    526,513,981 
Net Assets ($)    1,790,782,502 
 
 
Net Asset Value Per Share     
  Initial Shares  Service Shares 
Net Assets ($)  1,617,093,789  173,688,713 
Shares Outstanding  52,220,103  5,603,053 
Net Asset Value Per Share ($)  30.97  31.00 
 
See notes to financial statements.     

 

24



STATEMENT OF OPERATIONS 
Six Months Ended June 30, 2011 (Unaudited) 

 

Investment Income ($):   
Income:   
Dividends;   
Unaffiliated issuers  17,817,328 
Affiliated issuers  16,085 
Income from securities lending—Note 1(b)  63,733 
Interest  852 
Total Income  17,897,998 
Expenses:   
Management fee—Note 3(a)  2,222,905 
Distribution fees—Note 3(b)  216,235 
Directors’ fees and expenses—Note 3(d)  47,575 
Professional fees  42,354 
Prospectus and shareholders’ reports  36,869 
Shareholder servicing costs—Note 3(c)  16,549 
Loan commitment fees—Note 2  11,866 
Interest expense—Note 2  968 
Miscellaneous  22,831 
Total Expenses  2,618,152 
Less—reduction in fees due to earnings credits—Note 3 (c)  (5) 
Net Expenses  2,618,147 
Investment Income—Net  15,279,851 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):   
Net realized gain (loss) on investments  48,566,778 
Net realized gain (loss) on financial futures  1,963,248 
Net Realized Gain (Loss)  50,530,026 
Net unrealized appreciation (depreciation) on investments  38,373,258 
Net unrealized appreciation (depreciation) on financial futures  473,208 
Net Unrealized Appreciation (Depreciation)  38,846,466 
Net Realized and Unrealized Gain (Loss) on Investments  89,376,492 
Net Increase in Net Assets Resulting from Operations  104,656,343 
 
See notes to financial statements.   

 

The Fund  25 

 



STATEMENT OF CHANGES IN NET ASSETS

  Six Months Ended   
  June 30, 2011  Year Ended 
  (Unaudited)  December 31, 2010 
Operations ($):     
Investment income—net  15,279,851  29,904,478 
Net realized gain (loss) on investments  50,530,026  79,645,981 
Net unrealized appreciation     
(depreciation) on investments  38,846,466  127,503,542 
Net Increase (Decrease) in Net Assets     
Resulting from Operations  104,656,343  237,054,001 
Dividends to Shareholders from ($):     
Investment income—net:     
Initial Shares  (14,010,421)  (28,030,229) 
Service Shares  (1,278,375)  (2,405,412) 
Net realized gain on investments:     
Initial Shares  (10,509,094)   
Service Shares  (1,112,437)   
Total Dividends  (26,910,327)  (30,435,641) 
Capital Stock Transactions ($):     
Net proceeds from shares sold:     
Initial Shares  70,476,571  117,708,374 
Service Shares  11,956,516  21,604,639 
Dividends reinvested:     
Initial Shares  24,519,515  28,030,229 
Service Shares  2,390,812  2,405,412 
Cost of shares redeemed:     
Initial Shares  (183,540,139)  (291,019,364) 
Service Shares  (16,644,219)  (25,004,310) 
Increase (Decrease) in Net Assets     
  from Capital Stock Transactions  (90,840,944)  (146,275,020) 
Total Increase (Decrease) in Net Assets  (13,094,928)  60,343,340 
Net Assets ($):     
Beginning of Period  1,803,877,430  1,743,534,090 
End of Period  1,790,782,502  1,803,877,430 
Undistributed investment income—net  861,756  870,701 

 

26



  Six Months Ended   
  June 30, 2011  Year Ended 
  (Unaudited)  December 31, 2010 
Capital Share Transactions:     
Initial Shares     
Shares sold  2,279,569  4,297,365 
Shares issued for dividends reinvested  789,545  1,032,652 
Shares redeemed  (5,953,416)  (10,780,561) 
Net Increase (Decrease) in Shares Outstanding  (2,884,302)  (5,450,544) 
Service Shares     
Shares sold  385,180  809,525 
Shares issued for dividends reinvested  76,907  88,328 
Shares redeemed  (541,313)  (925,125) 
Net Increase (Decrease) in Shares Outstanding  (79,226)  (27,272) 
 
See notes to financial statements.     

 

The Fund  27 

 



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. The fund’s total returns do not reflect expenses associated with variable annuity or insurance contracts.These figures have been derived from the fund’s financial statements.

  Six Months Ended           
  June 30, 2011    Year Ended December 31,   
Initial Shares  (Unaudited)  2010  2009  2008  2007  2006 
Per Share Data ($):             
Net asset value,               
beginning of period  29.67  26.31  22.98  37.40  36.15  31.82 
Investment Operations:             
Investment income—neta  .26  .48  .48  .64  .64  .56 
Net realized and               
unrealized gain               
(loss) on investments  1.51  3.37  4.85  (14.40)  1.26  4.33 
Total from               
Investment Operations  1.77  3.85  5.33  (13.76)  1.90  4.89 
Distributions:               
Dividends from               
investment income—net  (.27)  (.49)  (.48)  (.66)  (.65)  (.56) 
Dividends from net realized             
gain on investments  (.20)    (1.52)       
Total Distributions    (.47)  (.49)  (2.00)  (.66)  (.65)  (.56) 
Net asset value,               
end of period    30.97  29.67  26.31  22.98  37.40  36.15 
Total Return (%)    5.95b  14.84  26.33  (37.14)  5.26  15.50 
Ratios/Supplemental             
Data (%):               
Ratio of total expenses             
to average net assets  .26c  .27  .29  .28  .27  .27 
Ratio of net expenses             
to average net assets  .26c  .27  .29  .28  .27  .27 
Ratio of net investment             
income to average             
net assets    1.71c  1.78  2.12  2.04  1.70  1.67 
Portfolio Turnover Rate  1.50b  4.46  5.42  4.69  4.54  4.91 
Net Assets,               
end of period               
($ x 1,000)  1,617,094  1,635,095  1,593,165  1,464,344  2,702,209  3,594,085 

 

a  Based on average shares outstanding at each month end. 
b  Not annualized. 
c  Annualized. 

 

See notes to financial statements.

28



Six Months Ended           
  June 30, 2011    Year Ended December 31,   
Service Shares  (Unaudited)  2010  2009  2008  2007  2006 
Per Share Data ($):             
Net asset value,             
beginning of period  29.70  26.34  23.00  37.41  36.16  31.82 
Investment Operations:             
Investment income—neta  .22  .41  .43  .57  .55  .47 
Net realized and unrealized             
gain (loss) on investments  1.51  3.38  4.85  (14.42)  1.26  4.35 
Total from             
Investment Operations  1.73  3.79  5.28  (13.85)  1.81  4.82 
Distributions:             
Dividends from             
investment income—net  (.23)  (.43)  (.42)  (.56)  (.56)  (.48) 
Dividends from net realized             
gain on investments  (.20)    (1.52)       
Total Distributions  (.43)  (.43)  (1.94)  (.56)  (.56)  (.48) 
Net asset value, end of period  31.00  29.70  26.34  23.00  37.41  36.16 
Total Return (%)  5.81b  14.54  26.05  (37.32)  4.99  15.21 
Ratios/Supplemental Data (%):           
Ratio of total expenses             
to average net assets  .51c  .52  .54  .53  .52  .52 
Ratio of net expenses             
to average net assets  .51c  .52  .54  .53  .52  .52 
Ratio of net investment income             
to average net assets  1.46c  1.54  1.86  1.72  1.45  1.43 
Portfolio Turnover Rate  1.50b  4.46  5.42  4.69  4.54  4.91 
Net Assets, end of period             
($ x 1,000)  173,689  168,782  150,369  124,614  532,711  590,965 

 

a  Based on average shares outstanding at each month end. 
b  Not annualized. 
c  Annualized. 

 

See notes to financial statements.

The Fund  29 

 



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 (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Mellon Capital Management Corporation (“Mellon Capital”), an indirect wholly-owned subsidiary of BNY Mellon, serves as the fund’s index manager.

MBSC Securities 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, shareholder services plan, the expenses borne by each class, the allocation of certain transfer agency costs and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for

30



SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. 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, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. U.S.Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service approved by the Board of Directors. Registered investment companies that are not traded on an exchange are valued at their net asset value. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and futures contracts. For other

The Fund  31 

 



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

32



The following is a summary of the inputs used as of June 30, 2011 in valuing the fund’s investments:

    Level 2—Other  Level 3—   
  Level 1—  Significant  Significant   
  Unadjusted  Observable  Unobservable   
  Quoted Prices  Inputs  Inputs  Total 
Assets ($)         
Investments in Securities:       
Equity Securities—         
Domestic  1,767,027,635      1,767,027,635 
Mutual Funds  38,795,775      38,795,775 
U.S. Treasury    1,784,938    1,784,938 
Other Financial         
Instruments:         
Futures††  751,117      751,117 

 

  See Statement of Investments for additional detailed categorizations. 
††  Amount shown represents unrealized appreciation at period end. 

 

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about FairValue Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at June 30, 2011.

In May 2011, FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and International Financial Reporting Standards (“IFRS”)”. ASU No. 2011-04 includes common requirements for measurement of and disclosure about fair value between GAAP and IFRS. ASU No. 2011-04 will require reporting entities to disclose the following infor-

The Fund  33 

 



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

mation for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition,ASU No. 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU No. 2011-04 and its impact on the financial statements.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses 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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by 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 is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus, U.S. Government and Agency securities or letters of credit.The fund is 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 bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the

34



securities in a timely manner. During the period ended June 30, 2011, The Bank of NewYork Mellon earned $27,314 from lending portfolio securities, pursuant to the securities lending agreement.

(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended June 30, 2011 were as follows:

Affiliated         
Investment  Value    Value  Net 
Company  12/31/2010 ($)  Purchases ($)  Sales ($)                    6/30/2011 ($)  Assets (%) 
Dreyfus         
Institutional         
Preferred         
Plus Money         
Market         
Fund  39,713,000  96,137,000  115,976,000               19,874,000  1.1 
Dreyfus         
Institutional         
Cash         
Advantage         
Fund  25,092,075  60,373,287  66,543,587                  18,921,775  1.1 
Total  64,805,075  156,510,287  182,519,587                38,795,775  2.2 

 

  On June 7, 2011, Dreyfus Institutional Cash Advantage Plus Fund was acquired by the 
  Dreyfus Institutional Cash Advantage Fund, resulting in transfer of shares. 

 

(d) 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 gains, 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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

The Fund  35 

 



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(e) 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.

As of and during the period ended June 30, 2011, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the three-year period ended December 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2010 was as follows: ordinary income $30,435,641.The tax character of the current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended June 30, 2011 was approximately $143,600, with a related weighted average annualized interest rate of 1.36%.

36



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 the value of the fund’s average daily net assets and is payable monthly.

Dreyfus has agreed to pay Mellon Capital a monthly index-management fee at the annual rate of .07% of the value of the fund’s average daily net assets.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing its shares, for servicing and/or maintaining Service shares’ shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25% 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. During the period ended June 30, 2011, Service shares were charged $216,235 pursuant to the Plan.

(c) Under the Shareholder Services Plan, Initial shares reimburse the Distributor an amount not to exceed an annual rate of .25% 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. During the period ended June 30, 2011, Initial shares were charged $7,960 pursuant to the Shareholders 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 June 30, 2011, the fund was charged

The Fund  37 

 



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

$602 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund has arrangements with the custodian and cash management bank whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended June 30, 2011, the fund was charged $100 pursuant to the cash management agreement, which is included in Shareholder servicing costs in the Statement of Operations. These fees were partially offset by earnings credits of $5.

Dreyfus has agreed to bear the cost of custody fees.

During the period ended June 30, 2011, the fund was charged $2,981 for services performed by the Chief Compliance Officer.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $352,617, Rule 12b-1 distribution plan fees $34,932, shareholder services plan fees $3,000, chief compliance officer fees $2,259 and transfer agency per account fees $200.

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

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, 2011, amounted to $27,256,306 and $104,784,283, respectively.

38



Futures Contracts: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk as a result of changes in value of underlying financial instruments. The fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a broker, which consist of cash or cash equivalents. 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.Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded.When the contracts are closed, the fund recognizes a realized gain or loss. There is minimal counterparty credit risk to the fund with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default. Contracts open at June 30, 2011 are set forth in the Statement of Financial Futures.

The following summarizes the average market value of derivatives outstanding during the period ended June 30, 2011:

  Average Market Value ($) 
Equity futures contracts  23,898,901 

 

At June 30, 2011, accumulated net unrealized appreciation on investments was $525,762,864, consisting of $710,259,593 gross unrealized appreciation and $184,496,729 gross unrealized depreciation.

At June 30, 2011, 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).

The Fund  39 

 



NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

NOTE 5—Pending Legal Matters:

The fund and more than two hundred other entities have been named as defendants in two pending litigations (Deutsche Bank Trust Co., Americas et al. v.Adaly Opportunity Fund TD Secs. Inc. et al., No. 11-cv-04784, filed July 12, 2011 in the United States District Court for the Southern District of NewYork, and Niese et al. v.AllianceBernstein L.P. et al., No. 11-cv-04538, filed July 1, 2011 in the United States District Court for the Southern District of New York) against shareholders of the Tribune Company who received payment for their shares in June or December 2007, as part of a leveraged buyout of the company (the “LBO”). Approximately one year after the LBO was concluded, the Tribune Company filed for bankruptcy. Thereafter, in approximately June 2011, certain Tribune Company creditors filed dozens of complaints in various courts throughout the country, including complaints in the two actions referred to above, alleging that the payments made to shareholders in the LBO were “fraudulent conveyances,” and that the shareholders must return the payments they received for their shares to satisfy the plaintiffs’ unpaid claims.

In addition, there is a case pending in United States Bankruptcy Court for the District of Delaware brought by the Unsecured Creditors Committee of the Tribune Company (The Official Committee of Unsecured Creditors of Tribune Co. v. Fitzsimons et al., Bankr. D. Del. Adv. Pro. No. 10-54010 (KJC), filed Nov. 1, 2010). In this case, the Creditors Committee seeks recovery for alleged “fraudulent conveyances” from approximately 27,000 Tribune shareholders, including the fund, in an Amended Complaint filed in December 2010.

At this early stage in the proceedings, it is not possible to assess with any reasonable certainty the probable outcomes of the pending litigations. Consequently, at this time, management is unable to estimate the possible loss or range of loss that may result.

40



INFORMATION ABOUT THE RENEWAL OF THE 
FUND’S MANAGEMENT AGREEMENT (Unaudited) 

 

At a meeting of the fund’s Board of Directors held on March 1, 2011, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”). The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of Dreyfus. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below.The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund.The Board members considered information previously provided to them in presentations from representatives of Dreyfus regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex, and representatives of Dreyfus confirmed that there had been no material changes in this information. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including the distribution channel(s) for the fund.

The Board members also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board members also considered Dreyfus’ extensive administrative, accounting, and compliance infrastructures.The Board also considered portfolio management’s brokerage policies and practices (including policies and practices regarding soft dollars) and the standards applied in seeking best execution.

The Fund  41 

 



INFORMATION ABOUT THE RENEWAL OF THE FUND’S 
MANAGEMENT AGREEMENT (Unaudited) (continued) 

 

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board members reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended December 31, 2010, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of December 31, 2010. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds. The Board members discussed the results of the comparisons and noted that the fund’s total return performance was above the Performance Group and Performance Universe medians, including several periods in the first quartile. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index.

The Board members also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons.They noted that the fund’s contractual management fee was below the Expense Group median and the fund’s actual management fee and total expenses were below the Expense Group and Expense Universe medians.

42



Representatives of Dreyfus reviewed with the Board members the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients.They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors.The Board members considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the expenses allocated and profit received by Dreyfus and the resulting profitability percentage for managing the fund, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex. The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Board’s counsel stated that the Board members should consider the profitability analysis (1) as part of their evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality

The Fund  43 

 



INFORMATION ABOUT THE RENEWAL OF THE FUND’S 
MANAGEMENT AGREEMENT (Unaudited) (continued) 

 

of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that, as a result of shared and allocated costs among funds in the Dreyfus funds complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board members also considered potential benefits to Dreyfus from acting as investment adviser and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

  • The Board concluded that the nature, extent and quality of the services provided by Dreyfus are adequate and appropriate.

  • The Board was satisfied with the fund’s performance.

  • The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.

  • The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

44



The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year. In addition, it should be noted that the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board members and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board members’ conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years. The Board members determined that renewal of the Agreement was in the best interests of the fund and its shareholders.

The Fund  45 

 



For More Information


Telephone 1-800-554-4611 or 1-516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Investments Division

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-DREYFUS.



 

 

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.      Audit Committee of Listed Registrants.

                  Not applicable.

Item 6.      Investments.

(a)              Not applicable.

Item 7.      Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

                  Not applicable.

Item 8.      Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9.      Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

                  Not applicable.  [CLOSED END FUNDS ONLY]

Item 10.    Submission of Matters to a Vote of Security Holders.

                  There have been no material changes to the procedures applicable to Item 10.

Item 11.    Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 


 

 

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12.    Exhibits.

(a)(1)   Not applicable.

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3)   Not applicable.

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

 


 

 

 

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.

Dreyfus Stock Index Fund, Inc.

By:       /s/Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date:

August 12, 2011

 

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/Bradley J. Skapyak

             Bradley J. Skapyak,

            President

 

Date:

August 12, 2011

 

By:       /s/James Windels

            James Windels,

            Treasurer

 

Date:

August 12, 2011

 

 

 


 

 

EXHIBIT INDEX

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.  (EX-99.906CERT)

 


 
EX-99.CERT 2 exhibit302-763.htm CERTIFICATION REQUIRED BY RULE 30A-2 exhibit302-763.htm - Generated by SEC Publisher for SEC Filing

 

[EX-99.CERT]—Exhibit  (a)(2)

SECTION 302 CERTIFICATION

 

I, Bradley J. Skapyak, 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5.  The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:       /s/Bradley J. Skapyak

            Bradley J. Skapyak,

            President

Date:    August 12, 2011

 


 

 

SECTION 302 CERTIFICATION

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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5.  The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:       /s/James Windels

            James Windels,

            Treasurer

Date:    August 12, 2011

 

 


 
EX-99.906CERT 3 exhibit906-763.htm CERTIFIACTION REQUIRED BY SECTION 906 exhibit906-763.htm - Generated by SEC Publisher for SEC Filing

 

[EX-99.906CERT]

Exhibit (b)

 

 

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/Bradley J. Skapyak

Bradley J. Skapyak,

            President

 

Date:    August 12, 2011

 

 

By:       /s/James Windels

             James Windels,

             Treasurer

 

Date:    August 12, 2011

 

 

This certificate is furnished pursuant to the requirements of Form N-CSR and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

 

 

 


 
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