N-CSR 1 formncsra-763.htm ANNUAL REPORT formncsra-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)

 

 

 

 

 

Janette E. Farragher, 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:

12/31/12

 

             

 

 


 

 

FORM N-CSR

Item 1.                        Reports to Stockholders.

 


 




Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

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.




 

Contents

 

THE FUND

2     

A Letter from the President

3     

Discussion of Fund Performance

6     

Fund Performance

8     

UnderstandingYour Fund’s Expenses

8     

ComparingYour Fund’s Expenses With Those of Other Funds

9     

Statement of Investments

26     

Statement of Financial Futures

27     

Statement of Assets and Liabilities

28     

Statement of Operations

29     

Statement of Changes in Net Assets

31     

Financial Highlights

33     

Notes to Financial Statements

45     

Report of Independent Registered Public Accounting Firm

46     

Important Tax Information

47     

Proxy Results

48     

Board Members Information

50     

Officers of the Fund

 

FOR MORE INFORMATION

 

Back Cover



Dreyfus
Stock Index Fund, Inc.

The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Stock Index Fund, Inc., covering the 12-month period from January 1, 2012, through December 31, 2012. 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.

In retrospect, 2012 was notable for the global equity markets’ resilience in the face of some tough macroeconomic challenges. Worries regarding sluggish employment growth, weak housing markets and Congressional gridlock weighed on investor sentiment in the United States at times during the year, yet U.S. stocks posted respectable gains, on average.An ongoing debt crisis led to recessionary conditions in Europe, particularly for some of the continent’s more peripheral nations, but aggressive actions from monetary policymakers helped some European stock markets produce double-digit returns.While China’s economy slowed in response to inflation-fighting measures, officials there appeared to have engineered a “soft landing,” and Chinese stocks generally ended the year with positive absolute returns.

We currently expect the U.S. and global economies to be modestly stronger in 2013, especially during the second half of the year.The global economy seems likely to benefit from Europe’s ongoing efforts to support its banking system and common currency, and by China’s moves toward more stimulative fiscal policies under new government leadership. In the United States, greater certainty regarding U.S. tax and fiscal policies, the resumption of postponed spending by businesses, and a continued housing recovery could support modestly higher rates of economic growth.We encourage you to discuss the implications of our economic analysis with your financial advisor, who can help you align your investments with the year’s challenges and opportunities.

Thank you for your continued confidence and support.

Sincerely,


J. Charles Cardona
President
The Dreyfus Corporation
January 15, 2013

2



DISCUSSION OF FUND PERFORMANCE

For the period of January 1, 2012, through December 31, 2012, as provided by Thomas J. Durante, CFA, Karen Q.Wong, CFA, and Richard A. Brown, CFA, Portfolio Managers

Fund and Market Performance Overview

For the 12-month period ended December 31, 2012, Dreyfus Stock Index Fund’s Initial shares produced a total return of 15.74%, and its Service shares produced a total return of 15.47%.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 15.99% for the same period.2,3

Despite ongoing concerns regarding a variety of domestic and international macroeconomic developments, U.S. stocks generally gained ground when improving domestic economic fundamentals—including stronger employment trends and a recovering housing market—helped bolster investor sentiment. Stock prices generally advanced as investors turned away from traditional safe havens and toward riskier assets. The difference in return 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.

Improving Macroeconomic Conditions Fueled Market Gains

A variety of positive domestic and international developments drove stocks higher during the first quarter of 2012. These included strong corporate earnings reports, domestic employment gains, a quantitative easing program in Europe that forestalled a

The Fund 3



DISCUSSION OF FUND PERFORMANCE (continued)

more severe banking crisis in the region, and less restrictive monetary and fiscal policies in China and, later, in Japan. However, investor sentiment turned more cautious during the spring, when the U.S. labor market’s rebound slowed and measures designed to relieve fiscal pressures in Europe encountered political resistance in some countries.

Stocks rebounded over the summer, reaching new highs for the year by September amid more encouraging economic news, including sharp declines in the unemployment rate and the start of a long-awaited recovery in U.S. housing markets. Stocks lost ground again in November as concerns mounted over automatic tax hikes and spending cuts scheduled for the start of 2013. Nevertheless, continued corporate earnings strength and improving economic fundamentals in many parts of the world enabled stocks to resume their rally as 2012 came to a close.As a result, the S&P 500 Index ended the year with double-digit gains.

Financial Stocks Rebounded Strongly

The S&P 500 Index’s advance in 2012 was led by the financials sector, which staged a rebound after several years of weakness in the wake of the 2008 U.S. financial crisis. Major U.S. banking institutions reported better financial results as lending volumes improved, legal issues were resolved, and regulatory pressures waned. Commercial banks benefited from increased mortgage lending as housing markets recovered. Insurance companies also fared relatively well, largely due to better results from their fixed-income investments and a relative scarcity of U.S. natural disasters in 2012. Even Superstorm Sandy had relatively little impact on insurers’ earnings.

Information technology stocks produced above-average results on the strength of secular trends toward cloud and mobile computing, which benefited makers of tablet computers and smartphones as well as software developers. Meanwhile, Internet retailers encountered higher sales volumes as more consumers shopped online. In the consumer discretionary sector, media companies saw higher advertising revenues in an election year, and home improvement retailers benefited from greater consumer confidence and the recovering housing market. Apparel retailers advanced when personal incomes and consumer spending improved.

Laggards in 2012 included the utilities sector, which eked out only modestly positive absolute returns, on average, due to rich valuations and the impact of tax policy uncertainty on higher yielding stocks. In the materials sector, metals-and-mining

4



companies suffered when an economic slowdown in China dampened industrial demand and sent commodity prices lower. An oversupply of domestic natural gas weighed on results from the energy sector, hurting earnings of drillers and exploration-and-production companies.

Macroeconomic Headwinds Remain

Although we have been encouraged recently by positive U.S. and global economic developments, we believe that heightened stock market volatility is likely to persist in the face of ongoing global challenges, including the European debt crisis, slower growth in the emerging markets, and a subpar economic recovery in the United States.We have continued to monitor the fund’s investments in light of current market conditions. In our experience, the fund’s broadly diversified portfolio may help limit the impact on the overall portfolio of unexpected losses in individual sectors or holdings.

January 15, 2013

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.The investment objective and policies of Dreyfus Stock Index Fund made 
available through insurance products may be similar to other funds managed by Dreyfus. However, the investment 
results of the fund may be higher or lower than, and may not be comparable to, those of any other Dreyfus fund. 
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 (“Standard & Poor’s”) 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 does not make any 
representation regarding the advisability of investing in the fund. 

 

The Fund 5



FUND PERFORMANCE


Average Annual Total Returns as of 12/31/12             
  1 Year  5 Years   10 Years  
Initial shares  15.74 %  1.47 %  6.87 % 
Service shares  15.47 %  1.21 %  6.60 % 
Standard & Poor’s 500             
Composite Stock Price Index  15.99 %  1.66 %  7.10 % 

 

Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The fund’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Stock Index Fund, Inc. on 12/31/02 to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date.

6



The fund’s Initial shares are not subject to a Rule 12b-1 fee.The fund’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all applicable fund fees and expenses for Initial and Service shares (after any expense reimbursements).The Index is a widely accepted, unmanaged index of U.S. stock market performance. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Fund 7



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 July 1, 2012 to December 31, 2012. 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 December 31, 2012

    Initial Shares    Service Shares 
Expenses paid per $1,000  $ 1.50  $ 2.74 
Ending value (after expenses)  $ 1,058.30  $ 1,056.90 

 

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 December 31, 2012

    Initial Shares    Service Shares 
Expenses paid per $1,000  $ 1.48  $ 2.69 
Ending value (after expenses)  $ 1,023.68  $ 1,022.47 

 

† Expenses are equal to the fund’s annualized expense ratio of .29% for Initial Shares and .53% for Service Shares, 
multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). 

 

8



STATEMENT OF INVESTMENTS

December 31, 2012

Common Stocks—98.6%  Shares      Value ($) 
Automobiles & Components—.8%         
BorgWarner  15,012 a   1,075,159 
Delphi Automotive  39,101  a   1,495,613 
Ford Motor  507,096      6,566,893 
Goodyear Tire & Rubber  30,040  a   414,852 
Harley-Davidson  30,163      1,473,161 
Johnson Controls  90,571      2,780,530 
        13,806,208 
Banks—2.8%         
BB&T  94,045      2,737,650 
Comerica  25,392      770,393 
Fifth Third Bancorp  121,307      1,842,653 
First Horizon National  34,481      341,707 
Hudson City Bancorp  64,738      526,320 
Huntington Bancshares  111,419      711,967 
KeyCorp  123,613      1,040,821 
M&T Bank  16,053 b   1,580,739 
People’s United Financial  44,393      536,711 
PNC Financial Services Group  70,295      4,098,901 
Regions Financial  190,572      1,356,873 
SunTrust Banks  71,489      2,026,713 
U.S. Bancorp  252,219      8,055,875 
Wells Fargo & Co.  654,697      22,377,543 
Zions Bancorporation  25,036      535,770 
        48,540,636 
Capital Goods—7.7%         
3M  84,631      7,857,988 
Boeing  89,998      6,782,249 
Caterpillar  86,927      7,786,921 
Cummins  23,445      2,540,266 
Danaher  78,174      4,369,927 
Deere & Co.  52,433      4,531,260 
Dover  24,214      1,591,102 
Eaton  61,495      3,333,054 
Emerson Electric  96,655      5,118,849 
Fastenal  36,682      1,712,683 
Flowserve  6,742      989,726 

 

TheFund 9



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares    Value ($) 
Capital Goods (continued)       
Fluor  22,639    1,329,815 
General Dynamics  43,956    3,044,832 
General Electric  1,402,494    29,438,349 
Honeywell International  104,621    6,640,295 
Illinois Tool Works  58,082    3,531,966 
Ingersoll-Rand  37,800    1,812,888 
Jacobs Engineering Group  17,975  a  765,196 
Joy Global  14,661    935,079 
L-3 Communications Holdings  13,187    1,010,388 
Lockheed Martin  35,978    3,320,410 
Masco  47,940    798,680 
Northrop Grumman  32,964    2,227,707 
PACCAR  46,729    2,112,618 
Pall  15,361    925,654 
Parker Hannifin  20,267    1,723,911 
Pentair  27,422    1,347,791 
Precision Castparts  19,286    3,653,154 
Quanta Services  28,332  a  773,180 
Raytheon  44,480    2,560,269 
Rockwell Automation  19,101    1,604,293 
Rockwell Collins  18,503  b  1,076,320 
Roper Industries  12,840    1,431,403 
Snap-on  7,385    583,341 
Stanley Black & Decker  22,391    1,656,262 
Textron  36,395    902,232 
United Technologies  112,762    9,247,612 
W.W. Grainger  7,993    1,617,543 
Xylem  25,459    689,939 
      133,375,152 
Commercial & Professional Services—.7%       
ADT  31,150    1,448,163 
Avery Dennison  13,279    463,703 
Cintas  14,764    603,848 
Dun & Bradstreet  5,788  b  455,226 
Equifax  15,447    835,992 
Iron Mountain  22,420    696,141 

 

10



Common Stocks (continued)  Shares      Value ($) 
Commercial & Professional Services (continued)         
Pitney Bowes  27,570 b   293,345 
Republic Services  39,695      1,164,254 
Robert Half International  18,973      603,721 
Stericycle  11,032 a    1,028,955 
Tyco International  62,300      1,822,275 
Waste Management  57,560      1,942,074 
        11,357,697 
Consumer Durables & Apparel—1.1%         
Coach  38,340      2,128,253 
D.R. Horton  35,504      702,269 
Fossil  7,038 a    655,238 
Garmin  14,662 b    598,503 
Harman International Industries  8,150      363,816 
Hasbro  16,061 b   576,590 
Leggett & Platt  19,083      519,439 
Lennar, Cl. A  22,486  b   869,534 
Mattel  46,381      1,698,472 
Newell Rubbermaid  37,233      829,179 
NIKE, Cl. B  97,690      5,040,804 
PulteGroup  44,106 a   800,965 
Ralph Lauren  8,310      1,245,835 
VF  11,948      1,803,790 
Whirlpool  10,526      1,071,021 
        18,903,708 
Consumer Services—1.8%         
Apollo Group, Cl. A  14,827  a   310,181 
Carnival  59,162      2,175,387 
Chipotle Mexican Grill  4,198  a   1,248,737 
Darden Restaurants  16,603      748,297 
H&R Block  37,117      689,263 
International Game Technology  34,374      487,080 
Marriott International, Cl. A  34,251      1,276,535 
McDonald’s  134,299      11,846,515 
Starbucks  99,473      5,333,742 
Starwood Hotels & Resorts Worldwide  26,487  c   1,519,294 
Wyndham Worldwide  18,805      1,000,614 

 

The Fund 11



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares    Value ($) 
Consumer Services (continued)       
Wynn Resorts  10,674    1,200,718 
Yum! Brands  61,031    4,052,458 
      31,888,821 
Diversified Financials—6.4%       
American Express  131,224    7,542,756 
Ameriprise Financial  28,668    1,795,477 
Bank of America  1,435,799    16,655,268 
Bank of New York Mellon  158,049    4,061,859 
BlackRock  16,783    3,469,214 
Capital One Financial  77,178    4,470,922 
Charles Schwab  144,815    2,079,543 
Citigroup  390,665    15,454,707 
CME Group  40,441    2,050,763 
Discover Financial Services  69,037    2,661,376 
E*TRADE Financial  31,226  a  279,473 
Franklin Resources  18,508    2,326,456 
Goldman Sachs Group  59,088    7,537,265 
IntercontinentalExchange  9,937  a  1,230,300 
Invesco  60,804    1,586,376 
JPMorgan Chase & Co.  508,381    22,353,513 
Legg Mason  15,358    395,008 
Leucadia National  25,029    595,440 
Moody’s  26,189    1,317,830 
Morgan Stanley  183,456    3,507,679 
NASDAQ OMX Group  16,720    418,167 
Northern Trust  29,797    1,494,618 
NYSE Euronext  31,582    996,096 
SLM  63,886    1,094,367 
State Street  62,184    2,923,270 
T. Rowe Price Group  34,117    2,222,040 
      110,519,783 
Energy—10.8%       
Anadarko Petroleum  66,399    4,934,110 
Apache  51,945    4,077,682 
Baker Hughes  58,176    2,375,908 
Cabot Oil & Gas  28,588    1,421,967 

 

12



Common Stocks (continued)  Shares      Value ($) 
Energy (continued)         
Cameron International  32,535  a   1,836,926 
Chesapeake Energy  70,773  b   1,176,247 
Chevron  261,546 a   28,283,584 
ConocoPhillips  161,681      9,375,881 
CONSOL Energy  31,076      997,540 
Denbury Resources  51,990 a   842,238 
Devon Energy  49,826      2,592,945 
Diamond Offshore Drilling  8,837  b   600,563 
Ensco, Cl. A  31,217      1,850,544 
EOG Resources  35,864      4,332,013 
EQT  20,214      1,192,222 
Exxon Mobil  609,826      52,780,440 
FMC Technologies  32,088 a   1,374,329 
Halliburton  124,704      4,325,982 
Helmerich & Payne  13,535      758,095 
Hess  40,160      2,126,874 
Kinder Morgan  83,852      2,962,491 
Marathon Oil  94,959      2,911,443 
Marathon Petroleum  45,321      2,855,223 
Murphy Oil  24,585      1,464,037 
Nabors Industries  36,637  a   529,405 
National Oilwell Varco  57,335      3,918,847 
Newfield Exploration  18,177  a   486,780 
Noble  34,686      1,207,767 
Noble Energy  23,999      2,441,658 
Occidental Petroleum  107,792      8,257,945 
Peabody Energy  36,868      981,057 
Phillips 66  83,263      4,421,265 
Pioneer Natural Resources  16,277      1,734,965 
QEP Resources  24,072      728,659 
Range Resources  21,759      1,367,118 
Rowan, Cl. A  16,543  a   517,300 
Schlumberger  176,737      12,246,107 
Southwestern Energy  45,832 a    1,531,247 
Spectra Energy  86,395      2,365,495 
Tesoro  18,308      806,467 

 

The Fund 13



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares      Value ($) 
Energy (continued)         
Valero Energy  74,665      2,547,570 
Williams  90,434      2,960,809 
WPX Energy  26,988  a   401,581 
        186,901,326 
Food & Staples Retailing—2.3%         
Costco Wholesale  57,936      5,722,339 
CVS Caremark  166,759      8,062,798 
Kroger  67,821      1,764,702 
Safeway  32,833 b    593,949 
Sysco  78,727      2,492,497 
Wal-Mart Stores  223,908      15,277,243 
Walgreen  115,234      4,264,810 
Whole Foods Market  22,700      2,073,191 
        40,251,529 
Food, Beverage & Tobacco—5.9%         
Altria Group  270,564      8,501,121 
Archer-Daniels-Midland  87,172      2,387,641 
Beam  21,063      1,286,739 
Brown-Forman, Cl. B  19,900      1,258,675 
Campbell Soup  23,038  b   803,796 
Coca-Cola  515,908      18,701,665 
Coca-Cola Enterprises  37,686      1,195,777 
ConAgra Foods  54,096      1,595,832 
Constellation Brands, Cl. A  20,043  a   709,322 
Dean Foods  25,870 a    427,114 
Dr. Pepper Snapple Group  27,536      1,216,540 
General Mills  87,016      3,516,317 
H.J. Heinz  43,076      2,484,624 
Hershey  19,912      1,438,045 
Hormel Foods  18,619      581,099 
J.M. Smucker  14,530      1,253,067 
Kellogg  33,110      1,849,193 
Kraft Foods Group  78,495      3,569,168 
Lorillard  17,258      2,013,491 
McCormick & Co.  17,744      1,127,276 
Mead Johnson Nutrition  26,892      1,771,914 

 

14



Common Stocks (continued)  Shares      Value ($) 
Food, Beverage & Tobacco (continued)         
Molson Coors Brewing, Cl. B  20,524      878,222 
Mondelez International, Cl. A  237,828      6,057,479 
Monster Beverage  20,708 a    1,095,039 
PepsiCo  207,312      14,186,360 
Philip Morris International  223,433      18,687,936 
Reynolds American  44,223      1,832,159 
Tyson Foods, Cl. A  37,136      720,438 
        101,146,049 
Health Care Equipment & Services—3.7%         
Aetna  44,168      2,044,978 
AmerisourceBergen  30,976      1,337,544 
Baxter International  73,283      4,885,045 
Becton Dickinson & Co.  26,599      2,079,776 
Boston Scientific  194,066 a   1,111,998 
C.R. Bard  10,612      1,037,217 
Cardinal Health  45,049      1,855,118 
CareFusion  28,603 a   817,474 
Cerner  19,568 a   1,519,260 
Cigna  38,114      2,037,574 
Coventry Health Care  18,222      816,892 
Covidien  63,710      3,678,615 
DaVita HealthCare Partners  10,866  a   1,201,019 
DENTSPLY International  19,644      778,099 
Edwards Lifesciences  15,486  a   1,396,373 
Express Scripts Holding  108,630  a   5,866,020 
Humana  21,715      1,490,300 
Intuitive Surgical  5,363  a   2,629,854 
Laboratory Corp. of America Holdings  12,716  a   1,101,460 
McKesson  31,289      3,033,781 
Medtronic  136,694      5,607,188 
Patterson  11,346      388,374 
Quest Diagnostics  21,325      1,242,608 
St. Jude Medical  41,163      1,487,631 
Stryker  38,229      2,095,714 
Tenet Healthcare  13,053  a   423,831 
UnitedHealth Group  137,400      7,452,576 

 

The Fund 15



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares    Value ($) 
Health Care Equipment & Services (continued)       
Varian Medical Systems  14,388  a  1,010,613 
WellPoint  40,498    2,467,138 
Zimmer Holdings  23,489    1,565,777 
      64,459,847 
Household & Personal Products—2.3%       
Avon Products  59,016    847,470 
Clorox  17,355    1,270,733 
Colgate-Palmolive  59,741    6,245,324 
Estee Lauder, Cl. A  32,607    1,951,855 
Kimberly-Clark  52,451    4,428,438 
Procter & Gamble  365,691    24,826,762 
      39,570,582 
Insurance—4.0%       
ACE  45,500    3,630,900 
Aflac  62,112    3,299,389 
Allstate  65,017    2,611,733 
American International Group  196,375  a  6,932,037 
Aon  42,669    2,372,396 
Assurant  11,443    397,072 
Berkshire Hathaway, Cl. B  244,394  a  21,922,142 
Chubb  35,657    2,685,685 
Cincinnati Financial  19,911    779,715 
Genworth Financial, Cl. A  68,350  a  513,308 
Hartford Financial Services Group  58,898    1,321,671 
Lincoln National  37,990    983,941 
Loews  42,469    1,730,612 
Marsh & McLennan  73,194    2,522,997 
MetLife  145,868    4,804,892 
Principal Financial Group  37,760    1,076,915 
Progressive  76,271    1,609,318 
Prudential Financial  61,799    3,295,741 
Torchmark  12,455    643,550 
Travelers  51,787    3,719,342 
Unum Group  38,728    806,317 
XL Group  42,023    1,053,096 
      68,712,769 

 

16



Common Stocks (continued)  Shares   Value ($) 
Materials—3.6%       
Air Products & Chemicals  28,383   2,384,740 
Airgas  9,628   878,940 
Alcoa  139,340   1,209,471 
Allegheny Technologies  13,887   421,609 
Ball  20,771   929,502 
Bemis  14,387   481,389 
CF Industries Holdings  8,263   1,678,711 
Cliffs Natural Resources  19,020 b  733,411 
Dow Chemical  160,442   5,185,485 
E.I. du Pont de Nemours & Co.  124,637   5,604,926 
Eastman Chemical  20,736   1,411,085 
Ecolab  34,850   2,505,715 
FMC  18,626   1,089,994 
Freeport-McMoRan Copper & Gold  126,055   4,311,081 
International Flavors & Fragrances  10,335   687,691 
International Paper  57,845   2,304,545 
LyondellBasell Industries, Cl. A  50,987   2,910,848 
MeadWestvaco  22,877   729,090 
Monsanto  71,435   6,761,323 
Mosaic  36,968   2,093,498 
Newmont Mining  66,833   3,103,725 
Nucor  41,908   1,809,587 
Owens-Illinois  22,187 a  471,917 
PPG Industries  20,442   2,766,825 
Praxair  39,597   4,333,892 
Sealed Air  22,210   388,897 
Sherwin-Williams  11,374   1,749,549 
Sigma-Aldrich  16,463   1,211,348 
United States Steel  19,606 b  467,995 
Vulcan Materials  17,780   925,449 
      61,542,238 
Media—3.5%       
Cablevision Systems (NY Group), Cl. A  26,917   402,140 
CBS, Cl. B  78,872   3,001,080 
Comcast, Cl. A  356,413   13,322,718 
DIRECTV  80,829 a  4,054,383 

 

The Fund 17



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares      Value ($) 
Media (continued)         
Discovery Communications, Cl. A  32,667  a   2,073,701 
Gannett  29,194      525,784 
Interpublic Group of Cos.  57,023      628,393 
McGraw-Hill  37,348      2,041,815 
News, Cl. A  269,692      6,887,934 
Omnicom Group  34,997      1,748,450 
Scripps Networks Interactive, Cl. A  11,766      681,487 
Time Warner  127,161      6,082,111 
Time Warner Cable  40,666      3,952,329 
Viacom, Cl. B  62,794      3,311,756 
Walt Disney  237,023      11,801,375 
Washington Post, Cl. B  514  b   187,718 
        60,703,174 
Pharmaceuticals, Biotech & Life Sciences—8.1%         
Abbott Laboratories  211,375      13,845,062 
Agilent Technologies  46,018      1,883,977 
Alexion Pharmaceuticals  25,935  a   2,432,962 
Allergan  40,816      3,744,052 
Amgen  102,595      8,856,000 
Biogen Idec  31,401  a   4,605,585 
Bristol-Myers Squibb  220,790      7,195,546 
Celgene  57,307 a   4,511,207 
Eli Lilly & Co.  135,824      6,698,840 
Forest Laboratories  31,825 a   1,124,059 
Gilead Sciences  100,664 a    7,393,771 
Hospira  21,233 a   663,319 
Johnson & Johnson  370,184      25,949,898 
Life Technologies  23,827 a    1,169,429 
Merck & Co.  405,809      16,613,820 
Mylan  53,916 a   1,481,612 
PerkinElmer  14,978      475,402 
Perrigo  11,960      1,244,199 
Pfizer  984,784      24,698,383 

 

18



Common Stocks (continued)  Shares      Value ($) 
Pharmaceuticals, Biotech & Life Sciences (continued)         
Thermo Fisher Scientific  49,325      3,145,949 
Waters  11,894 a   1,036,205 
Watson Pharmaceuticals  16,765  a   1,441,790 
        140,211,067 
Real Estate—2.2%         
American Tower  52,460      4,053,584 
Apartment Investment & Management, Cl. A  19,722  c   533,677 
AvalonBay Communities  15,058  c   2,041,714 
Boston Properties  20,089  c  2,125,617 
CBRE Group, Cl. A  41,107  a   818,029 
Equity Residential  43,007  c   2,437,207 
HCP  60,438 c   2,730,589 
Health Care  33,634 c    2,061,428 
Host Hotels & Resorts  98,163 c   1,538,214 
Kimco Realty  54,312 c   1,049,308 
Plum Creek Timber  20,903  c   927,466 
ProLogis  60,916 c   2,222,825 
Public Storage  19,371 c    2,808,020 
Simon Property Group  41,362 c    6,538,919 
Ventas  39,527 c   2,558,187 
Vornado Realty Trust  23,010 c   1,842,641 
Weyerhaeuser  71,057 c    1,976,806 
        38,264,231 
Retailing—4.1%         
Abercrombie & Fitch, Cl. A  10,357      496,825 
Amazon.com  48,166  a   12,096,409 
AutoNation  4,721 a,b    187,424 
AutoZone  5,061 a    1,793,770 
Bed Bath & Beyond  30,651  a   1,713,697 
Best Buy  37,813      448,084 
Big Lots  8,410  a  239,349 
CarMax  29,742 a    1,116,515 
Dollar General  35,691 a    1,573,616 

 

The Fund 19



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares      Value ($) 
Retailing (continued)         
Dollar Tree  31,428 a   1,274,720 
Expedia  11,971      735,618 
Family Dollar Stores  13,215      837,963 
GameStop, Cl. A  15,711  b   394,189 
Gap  40,587      1,259,820 
Genuine Parts  20,478      1,301,991 
Home Depot  200,767      12,417,439 
J.C. Penney  20,198 b    398,103 
Kohl’s  29,381      1,262,795 
Limited Brands  31,784      1,495,755 
Lowe’s  150,439      5,343,593 
Macy’s  53,851      2,101,266 
Netflix  7,217 a   669,593 
Nordstrom  20,786      1,112,051 
O’Reilly Automotive  16,176  a   1,446,458 
PetSmart  14,702      1,004,735 
priceline.com  6,616  a   4,109,859 
Ross Stores  29,504      1,597,642 
Staples  93,132      1,061,705 
Target  87,046      5,150,512 
Tiffany & Co.  16,201      928,965 
TJX  98,536      4,182,853 
TripAdvisor  13,824 a   580,055 
Urban Outfitters  13,780 a   542,381 
        70,875,750 
Semiconductors & Semiconductor         
Equipment—2.0%         
Advanced Micro Devices  82,112  a,b   197,069 
Altera  41,943      1,444,517 
Analog Devices  39,273      1,651,822 
Applied Materials  160,257      1,833,340 
Broadcom, Cl. A  68,029  a   2,259,243 
First Solar  7,628 a,b   235,553 

 

20



Common Stocks (continued)  Shares   Value ($) 
Semiconductors & Semiconductor       
Equipment (continued)       
Intel  666,414   13,748,121 
KLA-Tencor  22,841   1,090,886 
Lam Research  22,069 a  797,353 
Linear Technology  30,561   1,048,242 
LSI  75,504 a  534,568 
Microchip Technology  26,011 b  847,698 
Micron Technology  138,381 a  878,719 
NVIDIA  82,627   1,015,486 
Teradyne  24,552 a  414,683 
Texas Instruments  152,330   4,713,090 
Xilinx  35,039   1,257,900 
      33,968,290 
Software & Services—9.4%       
Accenture, Cl. A  85,059   5,656,424 
Adobe Systems  65,086 a  2,452,440 
Akamai Technologies  22,882 a  936,103 
Autodesk  29,599 a  1,046,325 
Automatic Data Processing  65,110   3,711,921 
BMC Software  19,979 a  792,367 
CA  44,490   977,890 
Citrix Systems  24,955 a  1,640,791 
Cognizant Technology Solutions, Cl. A  39,865 a  2,952,003 
Computer Sciences  21,610   865,480 
eBay  154,333 a  7,874,070 
Electronic Arts  41,318 a  600,351 
Fidelity National Information Services  33,997   1,183,436 
Fiserv  17,862 a  1,411,634 
Google, Cl. A  35,573 a  25,234,419 
International Business Machines  142,062   27,211,976 
Intuit  36,513   2,172,523 
MasterCard, Cl. A  14,388   7,068,537 
Microsoft  1,012,666   27,068,562 

 

The Fund 21



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Software & Services (continued)       
Oracle  502,759   16,751,930 
Paychex  43,587   1,357,299 
Red Hat  25,249 a  1,337,187 
SAIC  37,552   425,089 
Salesforce.com  17,467 a  2,936,203 
Symantec  93,733 a  1,763,118 
Teradata  22,910 a  1,417,900 
Total System Services  20,172   432,084 
VeriSign  20,666 a  802,254 
Visa, Cl. A  69,590   10,548,452 
Western Union  78,931   1,074,251 
Yahoo!  138,079 a  2,747,772 
      162,450,791 
Technology Hardware & Equipment—7.4%       
Amphenol, Cl. A  21,429   1,386,456 
Apple  125,805   67,057,839 
Cisco Systems  710,007   13,951,638 
Corning  199,622   2,519,230 
Dell  194,063   1,965,858 
EMC  279,201 a  7,063,785 
F5 Networks  10,419 a  1,012,206 
FLIR Systems  18,628   415,591 
Harris  15,059   737,289 
Hewlett-Packard  260,945   3,718,466 
Jabil Circuit  24,327   469,268 
JDS Uniphase  31,303 a  423,843 
Juniper Networks  70,645 a  1,389,587 
Molex  19,018 b  519,762 
Motorola Solutions  38,255   2,130,038 
NetApp  48,862 a  1,639,320 
QUALCOMM  226,900   14,072,338 
SanDisk  33,020 a  1,438,351 
Seagate Technology  44,964 b  1,370,503 
TE Connectivity  57,400   2,130,688 
Western Digital  30,278   1,286,512 

 

22



Common Stocks (continued)  Shares      Value ($) 
Technology Hardware &         
Equipment (continued)         
Xerox  175,188      1,194,782 
        127,893,350 
Telecommunication Services—3.0%         
AT&T  759,739      25,610,802 
CenturyLink  83,616      3,271,058 
Crown Castle International  38,819  a   2,801,179 
Frontier Communications  135,514  b   580,000 
MetroPCS Communications  42,878  a   426,207 
Sprint Nextel  401,610 a   2,277,129 
Verizon Communications  381,664      16,514,601 
Windstream  80,533  b   666,813 
        52,147,789 
Transportation—1.6%         
C.H. Robinson Worldwide  21,239      1,342,730 
CSX  137,778      2,718,360 
Expeditors International of Washington  28,782      1,138,328 
FedEx  38,745      3,553,691 
Norfolk Southern  42,313      2,616,636 
Ryder System  6,897      344,367 
Southwest Airlines  101,115      1,035,418 
Union Pacific  63,022      7,923,126 
United Parcel Service, Cl. B  95,628      7,050,652 
        27,723,308 
Utilities—3.4%         
AES  83,991      898,704 
AGL Resources  16,031      640,759 
Ameren  33,246      1,021,317 
American Electric Power  64,245      2,741,977 
CenterPoint Energy  57,365      1,104,276 
CMS Energy  35,654      869,245 
Consolidated Edison  38,918      2,161,506 
Dominion Resources  77,010      3,989,118 
DTE Energy  22,870      1,373,343 
Duke Energy  93,629      5,973,530 

 

The Fund 23



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares    Value ($) 
Utilities (continued)       
Edison International  43,042    1,945,068 
Entergy  23,992    1,529,490 
Exelon  115,035    3,421,141 
FirstEnergy  55,325    2,310,372 
Integrys Energy Group  9,923    518,179 
NextEra Energy  56,121    3,883,012 
NiSource  41,385    1,030,073 
Northeast Utilities  42,468    1,659,649 
NRG Energy  43,245    994,203 
ONEOK  27,862    1,191,101 
Pepco Holdings  31,659  b 620,833 
PG&E  57,027    2,291,345 
Pinnacle West Capital  14,687    748,743 
PPL  77,967    2,232,195 
Public Service Enterprise Group  67,146    2,054,668 
SCANA  17,807    812,711 
Sempra Energy  29,720    2,108,337 
Southern  117,164    5,015,791 
TECO Energy  27,160    455,202 
Wisconsin Energy  30,050    1,107,343 
Xcel Energy  66,376    1,772,903 
      58,476,134 
Total Common Stocks       
(cost $1,099,126,810)      1,703,690,229 
  Principal     
Short-Term Investments—.1%  Amount ($)    Value ($) 
U.S. Treasury Bills;       
0.03%, 3/14/13       
(cost $1,229,921)  1,230,000 d   1,229,921 
Other Investment—1.2%  Shares    Value ($) 
Registered Investment Company;       
Dreyfus Institutional Preferred       
Plus Money Market Fund       
(cost $20,880,219)  20,880,219 e   20,880,219 

 

24



Investment of Cash Collateral         
for Securities Loaned—.8%  Shares   Value ($)  
Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Plus Fund         
(cost $13,336,773)  13,336,773 e  13,336,773  
 
Total Investments (cost $1,134,573,723)  100.7 %  1,739,137,142  
Liabilities, Less Cash and Receivables  (.7 %)  (12,433,127 ) 
Net Assets  100.0 %  1,726,704,015  

 

REIT—Real Estate Investment Trust

a Non-income producing security. 
b Security, or portion thereof, on loan.At December 31, 2012, the value of the fund’s securities on loan was 
$13,125,557 and the value of the collateral held by the fund was $13,459,336, consisting of cash collateral of 
$13,336,773 and U.S. Government & Agency securities valued at $122,563. 
c Investment in real estate investment trust. 
d Held by or on behalf of a counterparty for open financial futures positions. 
e Investment in affiliated money market mutual fund. 

 

Portfolio Summary (Unaudited)     
 
  Value (%)  Value (%) 
Energy  10.8  Telecommunication Services  3.0 
Software & Services  9.4  Banks  2.8 
Pharmaceuticals,    Food & Staples Retailing  2.3 
Biotech & Life Sciences  8.1  Household & Personal Products  2.3 
Capital Goods  7.7  Real Estate  2.2 
Technology Hardware & Equipment  7.4  Short-Term/Money Market Investments  2.1 
Diversified Financials  6.4  Semiconductors &   
Food, Beverage & Tobacco  5.9  Semiconductor Equipment  2.0 
Retailing  4.1  Consumer Services  1.8 
Insurance  4.0  Transportation  1.6 
Health Care Equipment & Services  3.7  Consumer Durables & Apparel  1.1 
Materials  3.6  Automobiles & Components  .8 
Media  3.5  Commercial & Professional Services  .7 
Utilities  3.4    100.7 
 
† Based on net assets.       
See notes to financial statements.       

 

The Fund 25



STATEMENT OF FINANCIAL FUTURES

December 31, 2012

    Market Value    Unrealized  
    Covered by    (Depreciation)  
  Contracts  Contracts ($)  Expiration  at 12/31/2012 ($) 
Financial Futures Long           
Standard & Poor’s 500 E-mini  345  24,496,725  March 2013  (20,498 ) 
 
See notes to financial statements.           

 

26



STATEMENT OF ASSETS AND LIABILITIES

December 31, 2012

  Cost  Value  
Assets ($):       
Investments in securities—See Statement of Investments (including       
securities on loan, valued at $13,125,557)—Note 1(b):       
Unaffiliated issuers  1,100,356,731  1,704,920,150  
Affiliated issuers  34,216,992  34,216,992  
Cash    743,577  
Dividends and securities lending income receivable    1,894,579  
Receivable for futures variation margin—Note 4    617,614  
Receivable for investment securities sold    260,242  
Prepaid expenses    130,424  
    1,742,783,578  
Liabilities ($):       
Due to The Dreyfus Corporation and affiliates—Note 3(c)    403,732  
Liability for securities on loan—Note 1(b)    13,336,773  
Payable for shares of Common Stock redeemed    2,256,401  
Accrued expenses    82,657  
    16,079,563  
Net Assets ($)    1,726,704,015  
Composition of Net Assets ($):       
Paid-in capital    1,158,277,820  
Accumulated undistributed investment income—net    188,369  
Accumulated net realized gain (loss) on investments    (36,305,095 ) 
Accumulated net unrealized appreciation (depreciation)       
on investments [including ($20,498) net unrealized       
depreciation on financial futures]    604,542,921  
Net Assets ($)    1,726,704,015  

 

Net Asset Value Per Share     
  Initial Shares  Service Shares 
Net Assets ($)  1,541,577,103  185,126,912 
Shares Outstanding  48,384,979  5,804,020 
Net Asset Value Per Share ($)  31.86  31.90 
See notes to financial statements.     

 

The Fund 27



STATEMENT OF OPERATIONS

Year Ended December 31, 2012

Investment Income ($):     
Income:     
Cash dividends (net of $21,763 foreign taxes withheld at source):     
Unaffiliated issuers  39,650,010  
Affiliated issuers  18,373  
Income from securities lending—Note 1(b)  130,441  
Interest  748  
Total Income  39,799,572  
Expenses:     
Management fee—Note 3(a)  4,232,939  
Distribution fees—Note 3(b)  448,664  
Prospectus and shareholders’ reports  230,372  
Directors’ fees and expenses—Note 3(d)  133,110  
Professional fees  92,688  
Shareholder servicing costs—Note 3(c)  37,508  
Loan commitment fees—Note 2  16,801  
Registration fees  1,394  
Miscellaneous  136,999  
Total Expenses  5,330,475  
Less—reduction in expenses due to earnings credits—Note 3(c)  (8 ) 
Net Expenses  5,330,467  
Investment Income—Net  34,469,105  
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):     
Net realized gain (loss) on investments  10,542,407  
Net realized gain (loss) on financial futures  6,405,716  
Net Realized Gain (Loss)  16,948,123  
Net unrealized appreciation (depreciation) on investments  202,013,575  
Net unrealized appreciation (depreciation) on financial futures  (970,994 ) 
Net Unrealized Appreciation (Depreciation)  201,042,581  
Net Realized and Unrealized Gain (Loss) on Investments  217,990,704  
Net Increase in Net Assets Resulting from Operations  252,459,809  
 
See notes to financial statements.     

 

28



STATEMENT OF CHANGES IN NET ASSETS

  Year Ended December 31,  
  2012   2011  
Operations ($):         
Investment income—net  34,469,105   30,655,167  
Net realized gain (loss) on investments  16,948,123   87,274,296  
Net unrealized appreciation         
(depreciation) on investments  201,042,581   (84,167,175 ) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations  252,459,809   33,762,288  
Dividends to Shareholders from ($):         
Investment income—net:         
Initial Shares  (31,531,984 )  (28,344,208 ) 
Service Shares  (3,238,424 )  (2,688,460 ) 
Net realized gain on investments:         
Initial Shares  (77,220,676 )  (10,509,094 ) 
Service Shares  (8,527,384 )  (1,112,437 ) 
Total Dividends  (120,518,468 )  (42,654,199 ) 
Capital Stock Transactions ($):         
Net proceeds from shares sold:         
Initial Shares  170,865,184   171,025,336  
Service Shares  26,033,937   28,394,145  
Dividends reinvested:         
Initial Shares  108,752,660   38,853,302  
Service Shares  11,765,808   3,800,897  
Cost of shares redeemed:         
Initial Shares  (343,644,715 )  (349,530,185 ) 
Service Shares  (34,603,925 )  (31,935,289 ) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions  (60,831,051 )  (139,391,794 ) 
Total Increase (Decrease) in Net Assets  71,110,290   (148,283,705 ) 
Net Assets ($):         
Beginning of Period  1,655,593,725   1,803,877,430  
End of Period  1,726,704,015   1,655,593,725  
Undistributed investment income—net  188,369   489,672  

 

The Fund 29



STATEMENT OF CHANGES IN NET ASSETS (continued)

  Year Ended December 31,  
  2012   2011  
Capital Share Transactions:         
Initial Shares         
Shares sold  5,457,760   5,767,892  
Shares issued for dividends reinvested  3,454,350   1,300,359  
Shares redeemed  (10,985,766 )  (11,714,021 ) 
Net Increase (Decrease) in Shares Outstanding  (2,073,656 )  (4,645,770 ) 
Service Shares         
Shares sold  835,289   963,854  
Shares issued for dividends reinvested  373,230   127,057  
Shares redeemed  (1,103,497 )  (1,074,192 ) 
Net Increase (Decrease) in Shares Outstanding  105,022   16,719  
 
See notes to financial statements.         

 

30



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.

      Year Ended December 31,      
Initial Shares  2012   2011   2010   2009   2008  
Per Share Data ($):                     
Net asset value,                     
beginning of period  29.48   29.67   26.31   22.98   37.40  
Investment Operations:                     
Investment income—neta  .63   .54   .48   .48   .64  
Net realized and unrealized                     
gain (loss) on investments  3.95   .02   3.37   4.85   (14.40 ) 
Total from Investment Operations  4.58   .56   3.85   5.33   (13.76 ) 
Distributions:                     
Dividends from                     
investment income—net  (.64 )  (.55 )  (.49 )  (.48 )  (.66 ) 
Dividends from net realized                     
gain on investments  (1.56 )  (.20 )    (1.52 )   
Total Distributions  (2.20 )  (.75 )  (.49 )  (2.00 )  (.66 ) 
Net asset value, end of period  31.86   29.48   29.67   26.31   22.98  
Total Return (%)  15.74   1.88   14.84   26.33   (37.14 ) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets  .28   .27   .27   .29   .28  
Ratio of net expenses                     
to average net assets  .28   .27   .27   .29   .28  
Ratio of net investment income                     
to average net assets  2.02   1.81   1.78   2.12   2.04  
Portfolio Turnover Rate  3.13   3.27   4.46   5.42   4.69  
Net Assets, end of period                     
($ x 1,000)  1,541,577   1,487,417   1,635,095   1,593,165   1,464,344  
 
a Based on average shares outstanding at each month end.                  
See notes to financial statements.                     

 

The Fund 31



FINANCIAL HIGHLIGHTS (continued)

      Year Ended December 31,      
Service Shares  2012   2011   2010   2009   2008  
Per Share Data ($):                     
Net asset value, beginning of period  29.51   29.70   26.34   23.00   37.41  
Investment Operations:                     
Investment income—neta  .56   .47   .41   .43   .57  
Net realized and unrealized                     
gain (loss) on investments  3.96   .02   3.38   4.85   (14.42 ) 
Total from Investment Operations  4.52   .49   3.79   5.28   (13.85 ) 
Distributions:                     
Dividends from investment income—net  (.57 )  (.48 )  (.43 )  (.42 )  (.56 ) 
Dividends from net realized                     
gain on investments  (1.56 )  (.20 )    (1.52 )   
Total Distributions  (2.13 )  (.68 )  (.43 )  (1.94 )  (.56 ) 
Net asset value, end of period  31.90   29.51   29.70   26.34   23.00  
Total Return (%)  15.47   1.62   14.54   26.05   (37.32 ) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets  .53   .52   .52   .54   .53  
Ratio of net expenses                     
to average net assets  .53   .52   .52   .54   .53  
Ratio of net investment income                     
to average net assets  1.78   1.56   1.53   1.86   1.72  
Portfolio Turnover Rate  3.13   3.27   4.46   5.42   4.69  
Net Assets, end of period ($ x 1,000)  185,127   168,177   168,782   150,369   124,614  
 
a Based on average shares outstanding at each month end.                  
See notes to financial statements.                     

 

32



NOTES TO FINANCIAL STATEMENTS

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, and 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 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

The Fund 33



NOTES TO FINANCIAL STATEMENTS (continued)

authority of federal laws are also sources of authoritative GAAP for 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: 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).

34



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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

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. Registered investment companies that are not traded on an exchange are valued at their net asset value. All of the preceding securities are categorized within Level 1 of the fair value hierarchy.

U.S. Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service (the “Service”) approved by the fund’s Board of Directors (the “Board”). These securities are generally categorized within Level 2 of the fair value hierarchy.

The Service’s procedures are reviewed by Dreyfus under the general supervision of the Board.

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 financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

The Fund 35



NOTES TO FINANCIAL STATEMENTS (continued)

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. Certain factors may be considered when fair valuing investments 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. These securities are either categorized within Level 2 or 3 depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are categorized within Level 3 of the fair value hierarchy.

Financial futures, which are traded on an exchange, 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 on each business day.These securities are generally categorized within Level 1 of the fair value hierarchy.

The following is a summary of the inputs used as of December 31, 2012 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         
Common Stocks  1,701,839,685      1,701,839,685 
Equity Securities—         
Foreign         
Common Stocks  1,850,544      1,850,544 

 

36



      Level 2—Other  Level 3—     
  Level 1—   Significant  Significant     
  Unadjusted   Observable  Unobservable     
  Quoted Prices   Inputs  Inputs  Total  
Assets ($) (continued)             
Mutual Funds  34,216,992       34,216,992  
U.S. Treasury    1,229,921    1,229,921  
Liabilities ($)             
Other Financial             
Instruments:             
Financial Futures††  (20,498 )      (20,498 ) 

 

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

 

At December 31, 2012, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

(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

The Fund 37



NOTES TO FINANCIAL STATEMENTS (continued)

securities in a timely manner. During the period ended December 31, 2012. The Bank of New York Mellon earned $55,903 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. Investments in affiliated investment companies for the period ended December 31, 2012 were as follows:

Affiliated           
Investment  Value     Value  Net 
Company  12/31/2011 ($) Purchases ($)  Sales( $) 12/31/2012 ($)  Assets (%) 
Dreyfus           
Institutional           
Preferred           
Plus Money           
Market           
Fund  43,932,285  170,664,927 193,716,993   20,880,219  1.2 
Dreyfus           
Institutional           
Cash           
Advantage           
Fund  17,596,811  113,442,590 117,702,628   13,336,773  .8 
Total  61,529,096  284,107,517 311,419,621   34,216,992  2.0 

 

(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.

(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.

38



As of and during the period ended December 31, 2012, 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 four-year period ended December 31, 2012 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At December 31, 2012, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $3,937,990, undistributed capital gains $17,173,692 and unrealized appreciation $547,307,218.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2012 and December 31, 2011 were as follows: ordinary income $36,613,092 and $31,032,668 and long-term capital gains $83,905,376 and $11,621,531, respectively.

(f) New Accounting Pronouncement: In December 2011, FASB issued Accounting Standards Update No. 2011-11 “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). These disclosure requirements are intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company’s financial position.They also improve transparency in the reporting of how companies mitigate credit risk, including disclosure of related collateral pledged or received. In addition,ASU 2011-11 facilitates comparison between those entities that prepare their financial statements on the basis of GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”).ASU 2011-11 requires entities to: disclose both gross and net information about both instruments and transactions eligible for offset in the financial statements; and disclose instruments and transactions subject to an agreement similar to a master netting agreement. ASU 2011-11 is effective for fiscal years beginning on or after January 1, 2013,

The Fund 39



NOTES TO FINANCIAL STATEMENTS (continued)

and interim periods within those annual periods.At this time, management is evaluating the implications of ASU 2011-11 and its impact on the fund’s financial statement disclosures.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $210 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. Prior to October 10, 2012, the unsecured credit facility with Citibank, N.A., was $225 million. 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. During the period ended December 31, 2012, the fund did not borrow under the Facilities.

NOTE 3—Management Fee, Index Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (“the 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. Pursuant to the Agreement, the fund’s custody fee is included in the management fee.

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 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 Distribution 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

40



dealers acting as principal underwriter for their variable insurance prod-ucts.The fees payable under the Distribution Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2012, Service shares were charged $448,664 pursuant to the Distribution 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 December 31, 2012, Initial shares were charged $32,320 pursuant to the Shareholders Services Plan.

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

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing transfer agency services for the fund and, since May 29, 2012, cash management services related to fund subscriptions and redemptions. During the period ended December 31, 2012, the fund was charged $1,252 for transfer agency services and $40 for cash management services. Cash management fees were partially offset by earnings credits of $4. These fees are included in Shareholder servicing costs in the Statement of Operations.

Prior to May 29, 2012, the fund compensated The Bank of NewYork Mellon under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended December 31, 2012, the fund was charged $93 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 $4.

The Fund 41



NOTES TO FINANCIAL STATEMENTS (continued)

During the period ended December 31, 2012, the fund was charged $8,783 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $357,800, Distribution Plan fees $39,192, Shareholder Services Plan fees $2,375, Chief Compliance Officer fees $3,981 and transfer agency fees $384.

(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 December 31, 2012, amounted to $53,297,731 and $168,839,158, respectively.

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund during the period ended December 31, 2012 is discussed below.

Financial Futures: 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 in order to manage its exposure to or protect against changes in the market. A financial 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 counterparty, 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.When the contracts are closed, the fund

42



recognizes a realized gain or loss which is reflected in the Statement of Operations.There is minimal counterparty credit risk to the fund with financial futures since they are exchange traded, and the exchange’s clearinghouse guarantees the financial futures against default. Financial futures open at December 31, 2012 are set forth in the Statement of Financial Futures.

The following summarizes the average market value of derivatives outstanding during the period ended December 31, 2012:

  Average Market Value ($) 
Equity financial futures contracts  28,840,766 

 

At December 31, 2012, the cost of investments for federal income tax purposes was $1,191,829,924; accordingly, accumulated net unrealized appreciation on investments was $547,307,218, consisting of $750,190,676 gross unrealized appreciation and $202,883,458 gross unrealized depreciation.

NOTE 5—Pending Legal Matters:

The fund and many other entities have been named as defendants in numerous pending litigations as a result of their participation in the leveraged buyout transaction (“LBO”) of the Tribune Company (“Tribune”). The cases allege that Tribune took on billions of dollars of debt in the LBO to purchase its own stock from shareholders at $34 per share.The LBO was closed in a two step transaction with shares being repurchased by Tribune in a tender offer in June 2007 and in a go-private merger in December 2007. In 2008, approximately one year after the LBO was concluded, Tribune filed for bankruptcy protection under Chapter 11. Thereafter, in approximately June 2011, certain Tribune creditors filed dozens of complaints in various courts throughout the country alleging that the payments made to shareholders in the LBO were “fraudulent conveyances” under state and/or federal law, and that the shareholders must return the payments they received for their shares to satisfy the plaintiffs’ unpaid claims.These cases have been consolidated for coordinated pre-trial proceedings in a multi-district litigation in the United States District Court for the Southern District of NewYork titled In re

The Fund 43



NOTES TO FINANCIAL STATEMENTS (continued)

Tribune Company Fraudulent Conveyance Litigation (S.D.N.Y. Nos. 11-md-2296 and 12-mc-2296 (WHP) (“Tribune MDL”)).

In addition, there was a case pending in United States Bankruptcy Court for the District of Delaware brought by the Unsecured Creditors Committee of the Tribune Company that has since been transferred to the Tribune MDL (The Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, et al., formerly Bankr. D. Del.Adv. Pro. No. 10-54010 (KJC) and now S.D.N.Y. No. 12-cv-2652 (WHP)).The case was originally filed on November 1, 2010. In a Fourth Amended Complaint filed in November 2012, among other claims, the Creditors Committee seeks recovery under the Bankruptcy Code for alleged “fraudulent conveyances” from more than 6,000 Tribune shareholders, including the fund, and a defendants class of all shareholders who tendered their Tribune stock in the LBO and received cash in exchange. There are 35 other counts in the Fourth Amended Complaint that do not relate to claims against shareholder defendants, but instead are brought against parties directly involved in approval or execution of the leveraged buyout. On January 10, 2013, pursuant to the Tribune bankruptcy plan, Mark S. Kirchner, as Litigation Trustee for the Tribune Litigation Trust, became the successor plaintiff to the Creditors Committee in this case.

On November 6, 2012, a motion to dismiss was filed in the Tribune MDL.The hearing on the motion is set for March 2013. If successful, the motion would dismiss all cases in the Tribune MDL, except the FitzSimons case, in full.

Per order of the Court, the FitzSimons case remains stayed until a decision is rendered on the motion to dismiss in the Tribune MDL. No response to that Fourth Amended Complaint is currently required.

At this 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 that may result.

44



REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Dreyfus Stock Index Fund, Inc.

We have audited the accompanying statement of assets and liabilities of Dreyfus Stock Index Fund, Inc., including the statements of investments and financial futures, as of December 31, 2012, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2012 by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Stock Index Fund, Inc., at December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 13, 2013

The Fund 45



IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund hereby designates 100% of the ordinary dividends paid during the fiscal year ended December 31, 2012 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in early 2013 of the percentage applicable to the preparation of their 2012 income tax returns. Also, the fund hereby reports $.0335 per share as a short-term capital gain distribution paid and $1.5254 per share as a long-term capital gain distribution paid on March 30, 2012.

46



PROXY RESULTS (Unaudited)

The fund held a special meeting of shareholders on August 3, 2012. The proposal considered at the meeting, and the results, are as follows:

    Shares   
  Votes For    Authority Withheld 
To elect additional Board Members:       
Lynn Martin  49,214,830    1,991,395 
Robin A. Melvin  49,286,633    1,919,592 
Philip L. Toia  49,104,921    2,101,304 

 

Each new Board Member’s term commenced on September 1, 2012.

In addition Peggy C. Davis, Joseph S. DiMartino, David P. Feldman, Ehud Houminer and Dr. Martin Peretz continue as Board Members of the fund.

The Fund 47



BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (69) 
Chairman of the Board (1995) 
Principal Occupation During Past 5Years: 
• Corporate Director and Trustee 
Other Public Company Board Memberships During Past 5Years: 
• CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small 
and medium size companies, Director (1997-present) 
• Sunair Services Corporation, a provider of certain outdoor-related services to homes and 
businesses, Director (2005-2009) 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director (2000-2010) 
No. of Portfolios for which Board Member Serves: 151 
——————— 
Peggy C. Davis (69) 
Board Member (2006) 
Principal Occupation During Past 5Years: 
• Shad Professor of Law, New York University School of Law (1983-present) 
No. of Portfolios for which Board Member Serves: 63 
——————— 
David P. Feldman (73) 
Board Member (1996) 
Principal Occupation During Past 5Years: 
• Corporate Director and Trustee 
Other Public Company Board Memberships During Past 5Years: 
• BBH Mutual Funds Group (4 registered mutual funds), Director (1992-present) 
• QMed, Inc. a healthcare company, Director (1999-2007) 
No. of Portfolios for which Board Member Serves: 46 
——————— 
Ehud Houminer (72) 
Board Member (1993) 
Principal Occupation During Past 5Years: 
• Executive-in-Residence at the Columbia Business School, Columbia University (1992-present) 
Other Public Company Board Memberships During Past 5Years: 
• Avnet Inc., an electronics distributor, Director (1993-2012) 
No. of Portfolios for which Board Member Serves: 70 

 

48



Lynn Martin (73) 
Board Member (2012) 
Principal Occupation During Past 5Years: 
• President of The Martin Hall Group LLC, a human resources consulting firm, from January 
2005-present 
Other Public Company Board Memberships During Past 5Years: 
• AT&T Inc., a telecommunications company, Director (1999-2012) 
• Ryder System, Inc., a supply chain and transportation management company, Director (1993-2012) 
• The Proctor & Gamble Co., a consumer products company, Director (1994-2009) 
• Constellation Energy Group Inc., Director (2003-2009) 
No. of Portfolios for which Board Member Serves: 46 
——————— 
Robin A. Melvin (49) 
Board Member (2012) 
Principal Occupation During Past 5Years: 
• Director, Boisi Family Foundation, a private family foundation that supports youth-serving orga- 
nizations that promote the self sufficiency of youth from disadvantaged circumstances (1995-2012) 
No. of Portfolios for which Board Member Serves: 97 
——————— 
Dr. Martin Peretz (73) 
Board Member (2006) 
Principal Occupation During Past 5Years: 
• Editor-in-Chief Emeritus of The New Republic Magazine (2010-present) (previously, 
Editor-in-Chief, 1974-2010) 
• Director of TheStreet.com, a financial information service on the web (1996-present) 
No. of Portfolios for which Board Member Serves: 46 
——————— 
Philip L. Toia (79) 
Board Member (2012) 
Principal Occupation During Past 5Years: 
• Private Investor 
No. of Portfolios for which Board Member Serves: 56 
——————— 
Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The 
address of the Board Members and Officers is c/o The Dreyfus Corporation, 200 Park Avenue, NewYork, NewYork 
10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information 
which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-DREYFUS. 
James F. Henry, Emeritus Board Member 
Rosalind G. Jacobs, Emeritus Board Member 
Dr. Paul A. Marks, Emeritus Board Member 
Gloria Messinger, Emeritus Board Member 

 

The Fund 49



OFFICERS OF THE FUND (Unaudited)


50




The Fund 51



NOTES






 

 

Item 2.                        Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3.                        Audit Committee Financial Expert.

The Registrant's Board has determined that Mr. David P. Feldman, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC").  Mr. Feldman is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4.                        Principal Accountant Fees and Services.

 

(a)  Audit Fees.  The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $30,312 in 2011 and $30,857 in 2012.

 

(b)  Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $15,693 in 2011 and $9,508 in 2012. These services consisted of one or more of the following: (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended, (iii) advisory services as to the accounting or disclosure treatment of Registrant transactions or events and (iv) advisory services to the accounting or disclosure treatment of the actual or potential impact to the Registrant of final or proposed rules, standards or interpretations by the Securities and Exchange Commission, the Financial Accounting Standards Boards or other regulatory or standard-setting bodies.

 

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2011 and $0 in 2012.

 

(c)  Tax Fees.  The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $3,508 in 2011 and $3,334 in 2012. These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies. The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2011 and $0 in 2012.

 

 


 

 

(d)  All Other Fees.  The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $593 in 2011 and $9 in 2012.  [These services consisted of a review of the Registrant's anti-money laundering program].

 

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were  $0 in 2011 and $200,000 in 2012. 

 

(e)(1) Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. The pre-approved services in the Policy can include pre-approved audit services, pre-approved audit-related services, pre-approved tax services and pre-approved all other services.  Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence.  Pre-approvals pursuant to the Policy are considered annually.

(e)(2) Note: None of the services described in paragraphs (b) through (d) of this Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f) None of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal account's full-time, permanent employees.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $21,812,128 in 2011 and $49,204,697 in 2012.

 

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.

 

Item 5.                        Audit Committee of Listed Registrants.

                        Not applicable.  [CLOSED-END FUNDS ONLY]

Item 6.                        Investments.

(a)                    Not applicable.

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

                        Not applicable.  [CLOSED-END FUNDS ONLY]

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

Not applicable.  [CLOSED-END FUNDS ONLY, beginning with reports for periods ended on and after December 31, 2005]

 


 

 

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)   Code of ethics referred to in Item 2.

(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:

February 12, 2013

 

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:

February 12, 2013

 

By: /s/James Windels

James Windels,

Treasurer

 

Date:

February 12, 2013

 

 

EXHIBIT INDEX

(a)(1)   Code of ethics referred to in Item 2.

(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)