0000846800-16-000018.txt : 20160216 0000846800-16-000018.hdr.sgml : 20160215 20160216083304 ACCESSION NUMBER: 0000846800-16-000018 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20151231 FILED AS OF DATE: 20160216 DATE AS OF CHANGE: 20160216 EFFECTIVENESS DATE: 20160216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS STOCK INDEX FUND INC CENTRAL INDEX KEY: 0000846800 IRS NUMBER: 133537664 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05719 FILM NUMBER: 161423299 BUSINESS ADDRESS: STREET 1: THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226855 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS LIFE & ANNUITY INDEX FUND INC DATE OF NAME CHANGE: 19920703 0000846800 S000001911 Dreyfus Stock Index Fund, Inc. C000005028 Dreyfus Stock Index Fund, Inc. - Initial Shares C000005029 Dreyfus Stock Index Fund, Inc. - Service Shares N-CSR 1 lp1763.htm ANNUAL REPORT lp1763.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

811-05719

 

 

 

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)

 

 

 

 

 

Bennett A. MacDougall, 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:

12/31/15

 

             

 


 

FORM N-CSR

Item 1.                         Reports to Stockholders.

 


 

Dreyfus Stock Index Fund, Inc.

     

 

ANNUAL REPORT

December 31, 2015

   
 

 

 

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

 

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

 

Contents

T H E F U N D

F O R M O R E I N F O R M AT I O N

 

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, 2015, through December 31, 2015. 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.

2015 was a year of varied and, at times, conflicting economic influences. On one hand, the U.S. economy continued to grow as domestic labor markets posted significant gains, housing markets recovered, and lower fuel prices put cash in consumers’ pockets. Indeed, these factors, along with low inflation, prompted the Federal Reserve Board in December to raise short-term interest rates for the first time in nearly a decade. On the other hand, the global economy continued to disappoint, particularly in China and other emerging markets, when reduced industrial demand and declining currency values sparked substantial declines in commodity prices.

Although several broad measures of stock and bond performance ended 2015 roughly unchanged, high levels of volatility prevailed across most financial markets. Among U.S. equities, moderate gains from consumer discretionary and health care stocks were balanced by pronounced weakness in the energy and materials sectors. Bonds also saw bifurcated performance, with municipal bonds and intermediate-term U.S. government securities faring well compared to high yield and emerging-markets debt.

Market volatility is likely to persist until investors see greater clarity from the global economy. We expect to see wide differences in underlying fundamental and technical influences across various asset classes, economic sectors, and regional markets in 2016, suggesting that selectivity may be an important determinant of investment success. As always, we encourage you to discuss the implications of our observations with your financial advisor.

Thank you for your continued confidence and support.

Sincerely,

J. Charles Cardona

President

The Dreyfus Corporation

January 15, 2016

2

 

DISCUSSION OF FUND PERFORMANCE

For the period of January 1, 2015, through December 31, 2015, 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, 2015, Dreyfus Stock Index Fund’s Initial shares produced a total return of 1.11%, and its Service shares produced a total return of 0.86%.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 1.39% for the same period.2,3

Mildly positive stock market returns during 2015 masked heightened volatility stemming from shifting economic sentiment. The differences in returns between the fund and the S&P 500 Index were 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.

Global Economic Concerns Sparked Market Turmoil

Robust employment gains and improved consumer and business confidence helped drive the S&P 500 Index higher from the start of 2015 through the end of February despite plummeting prices of oil and other commodities. Stocks reversed course in March due to sluggish domestic economic growth stemming from severe winter weather and the impact of a strengthening U.S. dollar on exports. Indeed, U.S. GDP expanded at an anemic 0.6% annualized rate during the first quarter of 2015.

The U.S. economy regained traction in the spring with a 3.9% annualized growth rate for the second quarter, and by May the S&P 500 Index had advanced to new record highs. However, uncertainty surrounding a debt crisis in Greece and slowing economic growth in China sent stock prices lower over the summer. In August, the Chinese central bank unexpectedly devalued the country’s currency, intensifying concerns that the world’s second largest economy could be slowing more than anticipated.

U.S. economic growth decelerated to an annualized 2.0% rate during the third quarter. Stocks briefly dipped into negative territory as investors grew more risk-averse, but a strong rally in October enabled the S&P 500 Index to erase previous losses. U.S. stock prices remained volatile over the remainder of the year amid renewed worries that persistent global instability might dampen domestic economic growth. The market rebounded somewhat near year-end when the Federal Reserve Board raised short-term interest rates for the first time in nearly 10 years, ending months of uncertainty and enabling the S&P 500 Index to close 2015 with a positive total return.

3

 

DISCUSSION OF FUND PERFORMANCE (continued)

Consumer Discretionary Stocks Led Markets Higher

Although the S&P 500 Index posted a low single-digit gain for the year overall, the economic sectors that comprise the index delivered widely disparate results. The consumer discretionary sector led the market’s advance, driven higher by gains from Internet-based sellers such as Amazon.com and Netflix. Meanwhile, hotels, restaurants, and cruise lines experienced rising demand when lower energy prices put more cash in consumers’ pockets.

The information technology sector gained value amid the ongoing trend toward cloud computing, which has enabled businesses across a variety of industries to enhance their technology capabilities at an affordable cost. Some of the sector’s top performers included technology giants Facebook, Alphabet (formerly Google), and Microsoft, while computer hardware companies that rely on personal computer sales generally lagged. The health care sector continued to see rising spending from an aging population, the industry group increasingly sought to achieve economies of scale through mergers and acquisitions, and new technologies helped boost earnings for pharmaceutical developers and device manufacturers.

In contrast, the energy sector lost considerable value over the reporting period when a glut of crude oil was met with tepid demand, sending oil prices sharply lower. Offshore drillers were hit especially hard during the downturn. The materials sector also was hurt by declining commodity prices, which weighed on earnings for metals-and-mining companies. Finally, results from banks and capital markets companies in the financials sector were undermined by low longer term interest rates, rising costs, and regulatory uncertainty.

Replicating the Performance of the S&P 500 Index

Although we do not actively manage the fund’s investments in response to macroeconomic trends, it is worth noting that the U.S. economic recovery appears to remain on track despite ongoing turmoil in global commodity markets. As always, we have continued to monitor the factors considered by the fund’s investment model in light of current market conditions.

January 15, 2016

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, Inc. 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 monthly 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’sÒ,” “S&PÒ,” “Standard & Poor’s 500Ô, ”and “S&P 500Ò” are trademarks of Standard & Poor’s Financial Services LLC (“Standard & Poor’s”) and have been licensed for use by the fund to reflect the fund’s benchmark. 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.

4

 

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Stock Index Fund, Inc. Initial shares and Service shares and the Standard & Poor's 500 Composite Stock Price Index

       

Average Annual Total Returns as of 12/31/15

 

1 Year

5 Years

10 Years

Initial shares

1.11%

12.29%

7.07%

Service shares

0.86%

12.01%

6.80%

Standard & Poor's 500
Composite Stock Price Index

1.39%

12.55%

7.30%

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 12/31/05 to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date.

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. 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.

5

 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

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

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Stock Index Fund, Inc. from July 1, 2015 to December 31, 2015. 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, 2015

 

 

 

 

 

Initial Shares

Service Shares

Expenses paid per $1,000

 

$ 1.36

$ 2.62

Ending value (after expenses)

 

$1,000.20

$ 999.00

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, 2015

 

 

 

 

 

Initial Shares

Service Shares

Expenses paid per $1,000

 

$ 1.38

$ 2.65

Ending value (after expenses)

 

$1,023.84

$1,022.58

Expenses are equal to the fund’s annualized expense ratio of .27% for Initial shares and .52% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

6

 

STATEMENT OF INVESTMENTS

December 31, 2015

           
 

Common Stocks - 98.7%

 

Shares

 

Value ($)

 

Automobiles & Components - 1.0%

         

BorgWarner

 

25,864

 

1,118,101

 

Delphi Automotive

 

32,477

 

2,784,253

 

Ford Motor

 

447,397

 

6,303,824

 

General Motors

 

164,316

 

5,588,387

 

Goodyear Tire & Rubber

 

31,946

 

1,043,676

 

Harley-Davidson

 

22,098

 

1,003,028

 

Johnson Controls

 

74,072

 

2,925,103

 
       

20,766,372

 

Banks - 6.0%

         

Bank of America

 

1,193,170

 

20,081,051

 

BB&T

 

88,499

 

3,346,147

 

Citigroup

 

343,585

 

17,780,524

 

Comerica

 

20,599

 

861,656

 

Fifth Third Bancorp

 

91,850

 

1,846,185

 

Huntington Bancshares

 

90,312

 

998,851

 

JPMorgan Chase & Co.

 

423,090

 

27,936,633

 

KeyCorp

 

95,128

 

1,254,738

 

M&T Bank

 

18,981

 

2,300,118

 

People's United Financial

 

35,987

 

581,190

 

PNC Financial Services Group

 

58,387

 

5,564,865

 

Regions Financial

 

155,591

 

1,493,674

 

SunTrust Banks

 

58,981

 

2,526,746

 

U.S. Bancorp

 

189,225

 

8,074,231

 

Wells Fargo & Co.

 

533,707

 

29,012,313

 

Zions Bancorporation

 

21,376

 

583,565

 
       

124,242,487

 

Capital Goods - 7.2%

         

3M

 

70,762

 

10,659,588

 

Allegion

 

10,586

 

697,829

 

AMETEK

 

27,883

 

1,494,250

 

Boeing

 

72,400

 

10,468,316

 

Caterpillar

 

67,021

 

4,554,747

 

Cummins

 

19,353

 

1,703,258

 

Danaher

 

67,913

 

6,307,759

 

Deere & Co.

 

35,637

a

2,718,034

 

Dover

 

18,648

a

1,143,309

 

Eaton

 

53,250

 

2,771,130

 

7

 

STATEMENT OF INVESTMENTS (continued)

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Capital Goods - 7.2% (continued)

         

Emerson Electric

 

76,186

 

3,643,976

 

Fastenal

 

31,763

a

1,296,566

 

Flowserve

 

16,046

 

675,216

 

Fluor

 

17,060

 

805,573

 

General Dynamics

 

34,653

 

4,759,936

 

General Electric

 

1,083,706

 

33,757,442

 

Honeywell International

 

88,611

 

9,177,441

 

Illinois Tool Works

 

37,642

 

3,488,661

 

Ingersoll-Rand

 

29,715

 

1,642,942

 

Jacobs Engineering Group

 

14,962

b

627,656

 

L-3 Communications Holdings

 

9,027

 

1,078,817

 

Lockheed Martin

 

30,379

 

6,596,800

 

Masco

 

38,994

 

1,103,530

 

Northrop Grumman

 

20,978

 

3,960,856

 

PACCAR

 

39,809

 

1,886,947

 

Parker Hannifin

 

15,813

 

1,533,545

 

Pentair

 

20,450

 

1,012,889

 

Precision Castparts

 

15,762

 

3,656,942

 

Quanta Services

 

18,630

a,b

377,258

 

Raytheon

 

34,624

 

4,311,727

 

Rockwell Automation

 

15,145

 

1,554,028

 

Rockwell Collins

 

15,332

 

1,415,144

 

Roper Technologies

 

11,636

 

2,208,396

 

Snap-on

 

6,446

 

1,105,038

 

Stanley Black & Decker

 

17,590

 

1,877,381

 

Textron

 

31,959

 

1,342,598

 

United Rentals

 

10,772

b

781,401

 

United Technologies

 

94,519

 

9,080,440

 

W.W. Grainger

 

6,759

a

1,369,306

 

Xylem

 

21,717

 

792,671

 
       

149,439,343

 

Commercial & Professional Services - .7%

         

ADT

 

20,398

a

672,726

 

Cintas

 

10,784

 

981,883

 

Dun & Bradstreet

 

3,879

 

403,144

 

Equifax

 

13,808

 

1,537,797

 

Nielsen Holdings

 

42,172

 

1,965,215

 

Pitney Bowes

 

22,770

 

470,201

 

Republic Services

 

28,367

 

1,247,864

 

8

 

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Commercial & Professional Services - .7% (continued)

         

Robert Half International

 

14,809

 

698,096

 

Stericycle

 

9,422

b

1,136,293

 

Tyco International

 

46,954

 

1,497,363

 

Verisk Analytics

 

17,693

b

1,360,238

 

Waste Management

 

48,458

 

2,586,203

 
       

14,557,023

 

Consumer Durables & Apparel - 1.4%

         

Coach

 

32,286

 

1,056,721

 

D.R. Horton

 

38,365

 

1,228,831

 

Fossil Group

 

5,477

a,b

200,239

 

Garmin

 

14,074

a

523,131

 

Hanesbrands

 

46,150

a

1,358,195

 

Harman International Industries

 

7,813

 

736,063

 

Hasbro

 

12,467

 

839,777

 

Leggett & Platt

 

16,111

 

676,984

 

Lennar, Cl. A

 

19,364

a

947,093

 

Mattel

 

40,124

 

1,090,169

 

Michael Kors Holdings

 

22,330

b

894,540

 

Mohawk Industries

 

7,154

b

1,354,896

 

Newell Rubbermaid

 

31,745

 

1,399,320

 

NIKE, Cl. B

 

154,850

 

9,678,125

 

PulteGroup

 

38,595

 

687,763

 

PVH

 

9,208

 

678,169

 

Ralph Lauren

 

7,083

 

789,613

 

Under Armour, Cl. A

 

20,503

a,b

1,652,747

 

VF

 

39,349

 

2,449,475

 

Whirlpool

 

8,885

 

1,304,940

 
       

29,546,791

 

Consumer Services - 1.9%

         

Carnival

 

52,796

 

2,876,326

 

Chipotle Mexican Grill

 

3,511

b

1,684,753

 

Darden Restaurants

 

13,043

 

830,057

 

H&R Block

 

27,265

 

908,197

 

Marriott International, Cl. A

 

22,785

a

1,527,506

 

McDonald's

 

105,600

 

12,475,584

 

Royal Caribbean Cruises

 

19,334

 

1,956,794

 

Starbucks

 

169,737

 

10,189,312

 

Starwood Hotels & Resorts Worldwide

 

19,883

c

1,377,494

 

Wyndham Worldwide

 

13,500

 

980,775

 

9

 

STATEMENT OF INVESTMENTS (continued)

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Consumer Services - 1.9% (continued)

         

Wynn Resorts

 

9,218

a

637,793

 

Yum! Brands

 

48,869

 

3,569,880

 
       

39,014,471

 

Diversified Financials - 4.9%

         

Affiliated Managers Group

 

6,403

b

1,022,943

 

American Express

 

96,166

 

6,688,345

 

Ameriprise Financial

 

20,356

 

2,166,286

 

Bank of New York Mellon

 

126,737

 

5,224,099

 

Berkshire Hathaway, Cl. B

 

215,125

b

28,405,105

 

BlackRock

 

14,617

 

4,977,381

 

Capital One Financial

 

61,186

 

4,416,405

 

Charles Schwab

 

136,540

 

4,496,262

 

CME Group

 

38,495

 

3,487,647

 

Discover Financial Services

 

50,304

 

2,697,300

 

E*TRADE Financial

 

33,219

b

984,611

 

Franklin Resources

 

44,589

 

1,641,767

 

Goldman Sachs Group

 

45,876

 

8,268,231

 

Intercontinental Exchange

 

13,638

 

3,494,874

 

Invesco

 

48,435

 

1,621,604

 

Legg Mason

 

11,458

 

449,497

 

Leucadia National

 

37,644

 

654,629

 

McGraw-Hill Financial

 

31,287

 

3,084,272

 

Moody's

 

19,904

 

1,997,167

 

Morgan Stanley

 

174,346

 

5,545,946

 

Nasdaq

 

13,483

 

784,306

 

Navient

 

46,411

 

531,406

 

Northern Trust

 

24,739

 

1,783,435

 

State Street

 

46,454

 

3,082,687

 

Synchrony Financial

 

95,063

b

2,890,866

 

T. Rowe Price Group

 

28,922

 

2,067,634

 
       

102,464,705

 

Energy - 6.4%

         

Anadarko Petroleum

 

57,658

 

2,801,026

 

Apache

 

42,821

 

1,904,250

 

Baker Hughes

 

50,024

 

2,308,608

 

Cabot Oil & Gas

 

46,313

 

819,277

 

Cameron International

 

21,954

b

1,387,493

 

Chesapeake Energy

 

58,371

a

262,670

 

Chevron

 

216,086

 

19,439,097

 

10

 

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Energy - 6.4% (continued)

         

Cimarex Energy

 

10,630

 

950,109

 

Columbia Pipeline Group

 

44,122

 

882,440

 

ConocoPhillips

 

141,703

 

6,616,113

 

CONSOL Energy

 

26,877

a

212,328

 

Devon Energy

 

43,899

 

1,404,768

 

Diamond Offshore Drilling

 

8,510

a

179,561

 

Ensco

 

26,495

 

407,758

 

EOG Resources

 

62,452

 

4,420,977

 

EQT

 

17,150

 

894,030

 

Exxon Mobil

 

478,092

 

37,267,271

 

FMC Technologies

 

26,933

b

781,326

 

Halliburton

 

96,616

 

3,288,809

 

Helmerich & Payne

 

12,113

a

648,651

 

Hess

 

28,143

 

1,364,373

 

Kinder Morgan

 

209,931

 

3,132,171

 

Marathon Oil

 

76,211

 

959,496

 

Marathon Petroleum

 

61,455

 

3,185,827

 

Murphy Oil

 

18,555

 

416,560

 

National Oilwell Varco

 

44,242

 

1,481,665

 

Newfield Exploration

 

18,007

b

586,308

 

Noble Energy

 

48,441

 

1,595,162

 

Occidental Petroleum

 

87,152

 

5,892,347

 

ONEOK

 

24,138

 

595,243

 

Phillips 66

 

54,797

 

4,482,395

 

Pioneer Natural Resources

 

16,885

 

2,117,041

 

Range Resources

 

19,536

a

480,781

 

Schlumberger

 

144,555

 

10,082,711

 

Southwestern Energy

 

43,673

a,b

310,515

 

Spectra Energy

 

75,417

 

1,805,483

 

Tesoro

 

13,979

 

1,472,967

 

Transocean

 

38,519

a

476,865

 

Valero Energy

 

55,397

 

3,917,122

 

Williams

 

76,471

 

1,965,305

 
       

133,196,899

 

Food & Staples Retailing - 2.3%

         

Costco Wholesale

 

49,772

 

8,038,178

 

CVS Health

 

127,234

 

12,439,668

 

Kroger

 

110,747

 

4,632,547

 

Sysco

 

60,482

 

2,479,762

 

11

 

STATEMENT OF INVESTMENTS (continued)

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Food & Staples Retailing - 2.3% (continued)

         

Walgreens Boots Alliance

 

99,718

 

8,491,486

 

Wal-Mart Stores

 

179,027

 

10,974,355

 

Whole Foods Market

 

40,722

 

1,364,187

 
       

48,420,183

 

Food, Beverage & Tobacco - 5.6%

         

Altria Group

 

225,116

 

13,104,002

 

Archer-Daniels-Midland

 

69,544

 

2,550,874

 

Brown-Forman, Cl. B

 

12,220

 

1,213,202

 

Campbell Soup

 

20,302

 

1,066,870

 

Coca-Cola

 

449,410

 

19,306,654

 

Coca-Cola Enterprises

 

24,965

 

1,229,277

 

ConAgra Foods

 

49,554

 

2,089,197

 

Constellation Brands, Cl. A

 

19,617

 

2,794,245

 

Dr. Pepper Snapple Group

 

21,743

 

2,026,448

 

General Mills

 

68,908

 

3,973,235

 

Hershey

 

17,230

 

1,538,122

 

Hormel Foods

 

15,924

 

1,259,270

 

J.M. Smucker

 

13,656

 

1,684,331

 

Kellogg

 

29,447

 

2,128,135

 

Keurig Green Mountain

 

14,151

a

1,273,307

 

Kraft Heinz

 

67,903

 

4,940,622

 

McCormick & Co.

 

13,266

 

1,135,039

 

Mead Johnson Nutrition

 

23,273

 

1,837,403

 

Molson Coors Brewing, Cl. B

 

18,306

 

1,719,300

 

Mondelez International, Cl. A

 

182,716

 

8,192,985

 

Monster Beverage

 

17,343

b

2,583,413

 

PepsiCo

 

168,089

 

16,795,453

 

Philip Morris International

 

177,889

 

15,638,222

 

Reynolds American

 

95,097

 

4,388,727

 

Tyson Foods, Cl. A

 

33,903

 

1,808,047

 
       

116,276,380

 

Health Care Equipment & Services - 4.9%

         

Abbott Laboratories

 

171,268

 

7,691,646

 

Aetna

 

40,148

 

4,340,802

 

AmerisourceBergen

 

22,502

 

2,333,682

 

Anthem

 

29,868

 

4,164,794

 

Baxter International

 

62,312

 

2,377,203

 

Becton Dickinson & Co.

 

24,180

 

3,725,896

 

Boston Scientific

 

154,263

b

2,844,610

 

12

 

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Health Care Equipment & Services - 4.9% (continued)

         

C.R. Bard

 

8,455

 

1,601,715

 

Cardinal Health

 

37,465

 

3,344,501

 

Cerner

 

35,160

b

2,115,577

 

Cigna

 

29,120

 

4,261,130

 

DaVita HealthCare Partners

 

19,323

b

1,347,006

 

DENTSPLY International

 

15,552

 

946,339

 

Edwards Lifesciences

 

24,030

b

1,897,889

 

Express Scripts Holding

 

76,986

b

6,729,346

 

HCA Holdings

 

36,441

b

2,464,505

 

Henry Schein

 

9,484

b

1,500,274

 

Humana

 

16,965

 

3,028,422

 

Intuitive Surgical

 

4,173

b

2,279,126

 

Laboratory Corporation of America Holdings

 

11,446

b

1,415,183

 

McKesson

 

26,517

 

5,229,948

 

Medtronic

 

161,480

 

12,421,042

 

Patterson

 

9,314

 

421,086

 

Quest Diagnostics

 

16,325

 

1,161,361

 

St. Jude Medical

 

31,795

 

1,963,977

 

Stryker

 

36,061

 

3,351,509

 

Tenet Healthcare

 

10,967

b

332,300

 

UnitedHealth Group

 

109,449

 

12,875,580

 

Universal Health Services, Cl. B

 

10,362

 

1,238,155

 

Varian Medical Systems

 

11,718

a,b

946,814

 

Zimmer Biomet Holdings

 

19,489

 

1,999,377

 
       

102,350,795

 

Household & Personal Products - 2.0%

         

Church & Dwight

 

12,662

 

1,074,751

 

Clorox

 

14,869

 

1,885,835

 

Colgate-Palmolive

 

102,615

 

6,836,211

 

Estee Lauder, Cl. A

 

25,196

 

2,218,760

 

Kimberly-Clark

 

41,569

 

5,291,734

 

Procter & Gamble

 

312,330

 

24,802,125

 
       

42,109,416

 

Insurance - 2.7%

         

ACE

 

36,800

 

4,300,080

 

Aflac

 

49,398

 

2,958,940

 

Allstate

 

44,563

 

2,766,917

 

American International Group

 

142,435

 

8,826,697

 

Aon

 

31,525

 

2,906,920

 

13

 

STATEMENT OF INVESTMENTS (continued)

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Insurance - 2.7% (continued)

         

Assurant

 

8,010

 

645,125

 

Chubb

 

25,924

 

3,438,559

 

Cincinnati Financial

 

17,282

 

1,022,576

 

Hartford Financial Services Group

 

48,774

 

2,119,718

 

Lincoln National

 

29,369

 

1,476,086

 

Loews

 

33,515

 

1,286,976

 

Marsh & McLennan

 

60,027

 

3,328,497

 

MetLife

 

127,281

 

6,136,217

 

Principal Financial Group

 

30,769

 

1,383,990

 

Progressive

 

66,745

 

2,122,491

 

Prudential Financial

 

51,214

 

4,169,332

 

Torchmark

 

14,075

 

804,527

 

Travelers

 

35,535

 

4,010,480

 

Unum Group

 

28,026

 

932,986

 

XL Group

 

34,603

 

1,355,746

 
       

55,992,860

 

Materials - 2.7%

         

Air Products & Chemicals

 

21,700

 

2,823,387

 

Airgas

 

7,470

 

1,033,250

 

Alcoa

 

149,219

 

1,472,792

 

Avery Dennison

 

9,843

 

616,762

 

Ball

 

15,272

 

1,110,733

 

CF Industries Holdings

 

27,715

 

1,131,049

 

Dow Chemical

 

129,342

 

6,658,526

 

E.I. du Pont de Nemours & Co.

 

100,778

 

6,711,815

 

Eastman Chemical

 

16,508

 

1,114,455

 

Ecolab

 

30,331

 

3,469,260

 

FMC

 

15,196

 

594,619

 

Freeport-McMoRan

 

131,679

a

891,467

 

International Flavors & Fragrances

 

9,135

 

1,092,911

 

International Paper

 

47,984

 

1,808,997

 

LyondellBasell Industries, Cl. A

 

41,379

 

3,595,835

 

Martin Marietta Materials

 

7,638

a

1,043,198

 

Monsanto

 

50,223

 

4,947,970

 

Mosaic

 

38,426

 

1,060,173

 

Newmont Mining

 

60,050

 

1,080,300

 

Nucor

 

36,646

 

1,476,834

 

Owens-Illinois

 

18,700

b

325,754

 

PPG Industries

 

30,891

 

3,052,649

 

14

 

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Materials - 2.7% (continued)

         

Praxair

 

32,558

 

3,333,939

 

Sealed Air

 

22,745

 

1,014,427

 

Sherwin-Williams

 

9,315

 

2,418,174

 

Vulcan Materials

 

15,265

 

1,449,717

 

WestRock

 

29,965

 

1,367,027

 
       

56,696,020

 

Media - 3.0%

         

Cablevision Systems, Cl. A

 

25,862

 

824,998

 

CBS, Cl. B

 

49,920

 

2,352,730

 

Comcast, Cl. A

 

280,666

 

15,837,982

 

Discovery Communications, Cl. A

 

17,330

a,b

462,364

 

Discovery Communications, Cl. C

 

31,593

b

796,775

 

Interpublic Group of Companies

 

47,279

 

1,100,655

 

News Corp., Cl. A

 

43,737

 

584,326

 

News Corp., Cl. B

 

12,058

 

168,330

 

Omnicom Group

 

27,882

 

2,109,552

 

Scripps Networks Interactive

 

11,252

a

621,223

 

TEGNA

 

25,422

 

648,769

 

Time Warner

 

91,912

 

5,943,949

 

Time Warner Cable

 

32,178

 

5,971,915

 

Twenty-First Century Fox, Cl. A

 

134,774

 

3,660,462

 

Twenty-First Century Fox, Cl. B

 

49,216

 

1,340,152

 

Viacom, Cl. B

 

40,744

 

1,677,023

 

Walt Disney

 

174,866

 

18,374,919

 
       

62,476,124

 

Pharmaceuticals, Biotechnology & Life Sciences - 10.0%

         

AbbVie

 

189,062

 

11,200,033

 

Agilent Technologies

 

38,392

 

1,605,170

 

Alexion Pharmaceuticals

 

25,634

b

4,889,686

 

Allergan

 

45,244

b

14,138,750

 

Amgen

 

86,584

 

14,055,181

 

Baxalta

 

62,312

 

2,432,037

 

Biogen

 

25,447

b

7,795,688

 

Bristol-Myers Squibb

 

191,543

 

13,176,243

 

Celgene

 

90,382

b

10,824,148

 

Eli Lilly & Co.

 

112,038

 

9,440,322

 

Endo International

 

22,950

b

1,404,999

 

Gilead Sciences

 

165,662

 

16,763,338

 

Illumina

 

16,512

b

3,169,396

 

15

 

STATEMENT OF INVESTMENTS (continued)

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Pharmaceuticals, Biotechnology & Life Sciences - 10.0% (continued)

         

Johnson & Johnson

 

317,722

 

32,636,404

 

Mallinckrodt

 

13,102

b

977,802

 

Merck & Co.

 

321,937

 

17,004,712

 

Mylan

 

46,836

b

2,532,423

 

PerkinElmer

 

12,525

 

670,964

 

Perrigo

 

16,627

 

2,405,927

 

Pfizer

 

708,826

 

22,880,903

 

Regeneron Pharmaceuticals

 

8,820

b

4,788,113

 

Thermo Fisher Scientific

 

45,471

 

6,450,061

 

Vertex Pharmaceuticals

 

28,192

b

3,547,399

 

Waters

 

9,287

b

1,249,844

 

Zoetis

 

52,505

 

2,516,040

 
       

208,555,583

 

Real Estate - 2.7%

         

American Tower

 

48,206

c

4,673,572

 

Apartment Investment & Management, Cl. A

 

17,704

c

708,691

 

AvalonBay Communities

 

15,696

c

2,890,104

 

Boston Properties

 

17,426

c

2,222,512

 

CBRE Group, Cl. A

 

31,844

b

1,101,166

 

Crown Castle International

 

38,455

c

3,324,435

 

Equinix

 

7,099

c

2,146,738

 

Equity Residential

 

41,873

c

3,416,418

 

Essex Property Trust

 

7,449

c

1,783,365

 

General Growth Properties

 

66,834

c

1,818,553

 

HCP

 

52,317

a,c

2,000,602

 

Host Hotels & Resorts

 

86,035

c

1,319,777

 

Iron Mountain

 

21,589

c

583,119

 

Kimco Realty

 

48,688

c

1,288,284

 

Macerich

 

15,934

c

1,285,714

 

Plum Creek Timber

 

20,051

c

956,834

 

Prologis

 

60,107

c

2,579,792

 

Public Storage

 

16,772

c

4,154,424

 

Realty Income

 

28,493

a,c

1,471,094

 

Simon Property Group

 

35,570

c

6,916,231

 

SL Green Realty

 

11,356

c

1,283,001

 

Ventas

 

37,280

c

2,103,710

 

Vornado Realty Trust

 

20,276

c

2,026,789

 

Welltower

 

39,961

c

2,718,547

 

16

 

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Real Estate - 2.7% (continued)

         

Weyerhaeuser

 

59,327

c

1,778,623

 
       

56,552,095

 

Retailing - 5.5%

         

Advance Auto Parts

 

8,339

 

1,255,103

 

Amazon.com

 

44,135

b

29,830,405

 

AutoNation

 

7,677

b

458,010

 

AutoZone

 

3,509

b

2,603,362

 

Bed Bath & Beyond

 

19,582

a,b

944,832

 

Best Buy

 

33,911

 

1,032,590

 

CarMax

 

24,353

b

1,314,331

 

Dollar General

 

34,074

 

2,448,898

 

Dollar Tree

 

26,002

b

2,007,874

 

Expedia

 

13,366

 

1,661,394

 

GameStop, Cl. A

 

13,468

a

377,643

 

Gap

 

27,197

a

671,766

 

Genuine Parts

 

17,607

 

1,512,265

 

Home Depot

 

145,697

 

19,268,428

 

Kohl's

 

22,766

 

1,084,345

 

L Brands

 

29,291

 

2,806,664

 

Lowe's

 

105,192

 

7,998,800

 

Macy's

 

37,806

 

1,322,454

 

Netflix

 

49,033

b

5,608,395

 

Nordstrom

 

16,098

a

801,841

 

O'Reilly Automotive

 

11,506

b

2,915,851

 

Priceline Group

 

5,723

b

7,296,539

 

Ross Stores

 

46,842

 

2,520,568

 

Signet Jewelers

 

9,133

 

1,129,661

 

Staples

 

70,943

 

671,830

 

Target

 

70,870

 

5,145,871

 

The TJX Companies

 

77,098

 

5,467,019

 

Tiffany & Co.

 

13,113

 

1,000,391

 

Tractor Supply

 

15,304

 

1,308,492

 

TripAdvisor

 

12,531

b

1,068,268

 

Urban Outfitters

 

10,670

b

242,743

 
       

113,776,633

 

Semiconductors & Semiconductor Equipment - 2.4%

         

Analog Devices

 

36,000

 

1,991,520

 

Applied Materials

 

132,307

 

2,470,172

 

Avago Technologies

 

30,086

a

4,366,983

 

17

 

STATEMENT OF INVESTMENTS (continued)

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Semiconductors & Semiconductor Equipment - 2.4% (continued)

         

Broadcom, Cl. A

 

64,348

 

3,720,601

 

First Solar

 

8,210

a,b

541,778

 

Intel

 

540,258

 

18,611,888

 

KLA-Tencor

 

17,972

 

1,246,358

 

Lam Research

 

17,927

a

1,423,762

 

Linear Technology

 

27,188

 

1,154,674

 

Microchip Technology

 

22,945

a

1,067,860

 

Micron Technology

 

124,026

b

1,756,208

 

NVIDIA

 

59,830

 

1,971,997

 

Qorvo

 

16,881

b

859,243

 

Skyworks Solutions

 

21,881

 

1,681,117

 

Texas Instruments

 

117,195

 

6,423,458

 

Xilinx

 

29,317

 

1,377,019

 
       

50,664,638

 

Software & Services - 12.2%

         

Accenture, Cl. A

 

71,792

 

7,502,264

 

Activision Blizzard

 

57,068

 

2,209,102

 

Adobe Systems

 

56,747

b

5,330,813

 

Akamai Technologies

 

20,461

b

1,076,862

 

Alliance Data Systems

 

7,100

b

1,963,647

 

Alphabet, Cl. A

 

33,446

b

26,021,322

 

Alphabet, Cl. C

 

34,111

b

25,886,156

 

Autodesk

 

26,509

b

1,615,193

 

Automatic Data Processing

 

53,637

 

4,544,127

 

CA

 

37,391

 

1,067,887

 

Citrix Systems

 

17,872

b

1,352,017

 

Cognizant Technology Solutions, Cl. A

 

69,292

b

4,158,906

 

CSRA

 

15,665

 

469,950

 

eBay

 

125,460

b

3,447,641

 

Electronic Arts

 

35,159

b

2,416,126

 

Facebook, Cl. A

 

260,643

b

27,278,896

 

Fidelity National Information Services

 

32,091

 

1,944,715

 

Fiserv

 

26,792

b

2,450,396

 

International Business Machines

 

102,888

 

14,159,447

 

Intuit

 

30,375

 

2,931,188

 

MasterCard Cl. A

 

113,843

 

11,083,754

 

Microsoft

 

917,339

 

50,893,968

 

Oracle

 

367,956

 

13,441,433

 

Paychex

 

36,920

 

1,952,699

 

18

 

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Software & Services - 12.2% (continued)

         

PayPal Holdings

 

127,592

 

4,618,830

 

Red Hat

 

20,631

b

1,708,453

 

salesforce.com

 

70,785

b

5,549,544

 

Symantec

 

79,203

 

1,663,263

 

Teradata

 

16,962

b

448,136

 

Total System Services

 

19,374

 

964,825

 

VeriSign

 

11,303

b

987,430

 

Visa, Cl. A

 

222,676

 

17,268,524

 

Western Union

 

58,351

 

1,045,066

 

Xerox

 

109,822

 

1,167,408

 

Yahoo!

 

98,164

b

3,264,935

 
       

253,884,923

 

Technology Hardware & Equipment - 5.8%

         

Amphenol, Cl. A

 

34,955

 

1,825,700

 

Apple

 

641,067

 

67,478,712

 

Cisco Systems

 

582,874

 

15,827,943

 

Corning

 

140,056

 

2,560,224

 

EMC

 

221,392

 

5,685,347

 

F5 Networks

 

8,030

b

778,589

 

FLIR Systems

 

15,671

 

439,885

 

Harris

 

13,952

 

1,212,429

 

Hewlett Packard Enterprise

 

207,102

 

3,147,950

 

HP

 

207,102

 

2,452,088

 

Juniper Networks

 

40,045

 

1,105,242

 

Motorola Solutions

 

18,129

 

1,240,930

 

NetApp

 

35,140

 

932,264

 

QUALCOMM

 

173,067

 

8,650,754

 

SanDisk

 

23,362

 

1,775,278

 

Seagate Technology

 

34,521

a

1,265,540

 

TE Connectivity

 

44,500

 

2,875,145

 

Western Digital

 

26,264

 

1,577,153

 
       

120,831,173

 

Telecommunication Services - 2.4%

         

AT&T

 

706,441

 

24,308,635

 

CenturyLink

 

63,512

 

1,597,962

 

Frontier Communications

 

130,416

 

609,043

 

Level 3 Communications

 

32,189

b

1,749,794

 

Verizon Communications

 

467,259

 

21,596,711

 
       

49,862,145

 

19

 

STATEMENT OF INVESTMENTS (continued)

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Transportation - 2.1%

         

American Airlines Group

 

71,964

 

3,047,675

 

C.H. Robinson Worldwide

 

16,614

 

1,030,400

 

CSX

 

113,645

 

2,949,088

 

Delta Air Lines

 

90,845

 

4,604,933

 

Expeditors International of Washington

 

22,623

 

1,020,297

 

FedEx

 

30,114

 

4,486,685

 

J.B. Hunt Transport Services

 

10,485

 

769,180

 

Kansas City Southern

 

12,642

 

943,978

 

Norfolk Southern

 

34,629

 

2,929,267

 

Ryder System

 

5,791

 

329,103

 

Southwest Airlines

 

75,303

 

3,242,547

 

Union Pacific

 

99,069

 

7,747,196

 

United Continental Holdings

 

43,507

b

2,492,951

 

United Parcel Service, Cl. B

 

79,699

 

7,669,435

 
       

43,262,735

 

Utilities - 2.9%

         

AES

 

73,476

 

703,165

 

AGL Resources

 

13,717

 

875,282

 

Ameren

 

28,200

 

1,219,086

 

American Electric Power

 

55,081

 

3,209,570

 

CenterPoint Energy

 

51,085

 

937,921

 

CMS Energy

 

31,169

 

1,124,578

 

Consolidated Edison

 

33,711

 

2,166,606

 

Dominion Resources

 

68,302

 

4,619,947

 

DTE Energy

 

20,625

 

1,653,919

 

Duke Energy

 

78,844

 

5,628,673

 

Edison International

 

37,473

 

2,218,776

 

Entergy

 

21,033

 

1,437,816

 

Eversource Energy

 

35,807

 

1,828,664

 

Exelon

 

105,187

 

2,921,043

 

FirstEnergy

 

47,668

 

1,512,506

 

NextEra Energy

 

52,487

 

5,452,874

 

NiSource

 

35,222

 

687,181

 

NRG Energy

 

38,491

 

453,039

 

Pepco Holdings

 

30,441

 

791,770

 

PG&E

 

56,251

 

2,991,991

 

Pinnacle West Capital

 

12,878

 

830,373

 

PPL

 

76,949

 

2,626,269

 

Public Service Enterprise Group

 

58,233

 

2,253,035

 

20

 

           
 

Common Stocks - 98.7% (continued)

 

Shares

 

Value ($)

 

Utilities - 2.9% (continued)

         

SCANA

 

15,703

 

949,874

 

Sempra Energy

 

26,865

 

2,525,579

 

Southern

 

104,323

 

4,881,273

 

TECO Energy

 

26,102

 

695,618

 

WEC Energy Group

 

37,067

 

1,901,908

 

Xcel Energy

 

57,487

 

2,064,358

 
       

61,162,694

 

Total Common Stocks (cost $925,385,771)

     

2,056,102,488

 

Short-Term Investments - .1%

 

Principal Amount ($)

 

Value ($)

 

U.S. Treasury Bills

         

0.14%, 3/17/16

 

635,000

d

634,882

 

0.03%, 2/25/16

 

465,000

d

464,954

 

(cost $1,099,788)

     

1,099,836

 

Other Investment - .6%

 

Shares

 

Value ($)

 

Registered Investment Company;

         

Dreyfus Institutional Preferred Plus Money Market Fund
(cost $12,670,872)

 

12,670,872

e

12,670,872

 

Investment of Cash Collateral for Securities Loaned - .3%

         

Registered Investment Company;

         

Dreyfus Institutional Cash Advantage Fund
(cost $6,753,514)

 

6,753,514

e

6,753,514

 

Total Investments (cost $945,909,945)

 

99.7%

 

2,076,626,710

 

Cash and Receivables (Net)

 

.3%

 

7,110,921

 

Net Assets

 

100.0%

 

2,083,737,631

 

aSecurity, or portion thereof, on loan. At December 31, 2015, the value of the fund’s securities on loan was $31,761,102 and the value of the collateral held by the fund was $32,672,942 consisting of cash collateral of $6,753,514 and U.S. Government & Agency securities valued at $25,919,428.
bNon-income producing security.
cInvestment in real estate investment trust.
dHeld by or on behalf of a counterparty for open financial futures contracts.
eInvestment in affiliated money market mutual fund.

21

 

STATEMENT OF INVESTMENTS (continued)

   

Portfolio Summary (Unaudited)

Value (%)

Software & Services

12.2

Pharmaceuticals, Biotechnology & Life Sciences

10.0

Capital Goods

7.2

Energy

6.4

Banks

6.0

Technology Hardware & Equipment

5.8

Food, Beverage & Tobacco

5.6

Retailing

5.5

Diversified Financials

4.9

Health Care Equipment & Services

4.9

Media

3.0

Utilities

2.9

Insurance

2.7

Materials

2.7

Real Estate

2.7

Semiconductors & Semiconductor Equipment

2.4

Telecommunication Services

2.4

Food & Staples Retailing

2.3

Transportation

2.1

Household & Personal Products

2.0

Consumer Services

1.9

Consumer Durables & Apparel

1.4

Automobiles & Components

1.0

Short-Term/Money Market Investments

1.0

Commercial & Professional Services

.7

 

99.7

 Based on net assets.

See notes to financial statements.

22

 

STATEMENT OF FINANCIAL FUTURES

December 31, 2015

           
 

Contracts

Market Value Covered by Contracts ($)

Expiration

Unrealized (Depreciation) at 12/31/2015 ($)

 
           

Financial Futures Long

         

Standard & Poor's 500 E-mini

153

15,570,810

March 2016

(35,121)

 

Gross Unrealized Depreciation

     

(35,121)

 

See notes to financial statements.

23

 

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2015

             

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments
(including securities on loan, valued at $31,761,102)—Note 1(b):

 

 

 

 

Unaffiliated issuers

 

926,485,559

 

2,057,202,324

 

Affiliated issuers

 

19,424,386

 

19,424,386

 

Cash

 

 

 

 

27,986,341

 

Dividends, interest and securities lending income receivable

 

 

 

 

2,768,336

 

Prepaid expenses

 

 

 

 

12,217

 

 

 

 

 

 

2,107,393,604

 

Liabilities ($):

 

 

 

 

Due to The Dreyfus Corporation and affiliates—Note 3(c)

 

 

 

 

482,137

 

Payable for shares of Common Stock redeemed

 

 

 

 

15,876,248

 

Liability for securities on loan—Note 1(b)

 

 

 

 

6,753,514

 

Payable for investment securities purchased

 

 

 

 

205,500

 

Payable for futures variation margin—Note 4

 

 

 

 

174,536

 

Accrued expenses

 

 

 

 

164,038

 

 

 

 

 

 

23,655,973

 

Net Assets ($)

 

 

2,083,737,631

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

916,552,818

 

Accumulated undistributed investment income—net

 

 

 

 

2,397,015

 

Accumulated net realized gain (loss) on investments

 

 

 

 

34,106,154

 

Accumulated net unrealized appreciation (depreciation)
on investments [including ($35,121) net unrealized
(depreciation) on financial futures]

 

 

 

 

1,130,681,644

 

Net Assets ($)

 

 

2,083,737,631

 

 

       

Net Asset Value Per Share

Initial Shares

Service Shares

 

Net Assets ($)

1,880,693,737

203,043,894

 

Shares Outstanding

43,309,704

4,670,370

 

Net Asset Value Per Share ($)

43.42

43.47

 

See notes to financial statements.

24

 

STATEMENT OF OPERATIONS

Year Ended December 31, 2015

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Cash dividends:

 

 

 

 

Unaffiliated issuers

 

 

44,247,010

 

Affiliated issuers

 

 

21,537

 

Income from securities lending—Note 1(b)

 

 

127,700

 

Interest

 

 

703

 

Total Income

 

 

44,396,950

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

5,228,464

 

Distribution fees—Note 3(b)

 

 

540,554

 

Directors’ fees and expenses—Note 3(d)

 

 

149,030

 

Prospectus and shareholders’ reports

 

 

142,562

 

Professional fees

 

 

85,086

 

Loan commitment fees—Note 2

 

 

21,257

 

Shareholder servicing costs—Note 3(c)

 

 

12,203

 

Registration fees

 

 

2,358

 

Miscellaneous

 

 

182,226

 

Total Expenses

 

 

6,363,740

 

Less—reduction in fees due to earnings credits—Note 3(c)

 

 

(5)

 

Net Expenses

 

 

6,363,735

 

Investment Income—Net

 

 

38,033,215

 

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):

 

 

Net realized gain (loss) on investments

77,551,821

 

Net realized gain (loss) on financial futures

 

 

569,599

 

Net Realized Gain (Loss)

 

 

78,121,420

 

Net unrealized appreciation (depreciation) on investments

 

 

(91,800,334)

 

Net unrealized appreciation (depreciation) on financial futures

 

 

(135,971)

 

Net Unrealized Appreciation (Depreciation)

 

 

(91,936,305)

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

(13,814,885)

 

Net Increase in Net Assets Resulting from Operations

 

24,218,330

 

See notes to financial statements.

25

 

STATEMENT OF CHANGES IN NET ASSETS

                   
                   

 

 

 

 

Year Ended December 31,

 

 

 

 

2015

 

 

 

2014

 

Operations ($):

 

 

 

 

 

 

 

 

Investment income—net

 

 

38,033,215

 

 

 

35,964,660

 

Net realized gain (loss) on investments

 

78,121,420

 

 

 

60,577,665

 

Net unrealized appreciation (depreciation)
on investments

 

(91,936,305)

 

 

 

166,059,427

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

24,218,330

 

 

 

262,601,752

 

Dividends to Shareholders from ($):

 

 

 

 

 

 

 

 

Investment income—net:

 

 

 

 

 

 

 

 

Initial Shares

 

 

(34,900,712)

 

 

 

(32,486,811)

 

Service Shares

 

 

(3,321,783)

 

 

 

(3,496,374)

 

Net realized gain on investments:

 

 

 

 

 

 

 

 

Initial Shares

 

 

(53,808,935)

 

 

 

(21,174,073)

 

Service Shares

 

 

(6,088,629)

 

 

 

(2,747,658)

 

Total Dividends

 

 

(98,120,059)

 

 

 

(59,904,916)

 

Capital Stock Transactions ($):

 

 

 

 

 

 

 

 

Net proceeds from shares sold:

 

 

 

 

 

 

 

 

Initial Shares

 

 

213,837,562

 

 

 

178,069,463

 

Service Shares

 

 

12,117,429

 

 

 

15,253,576

 

Dividends reinvested:

 

 

 

 

 

 

 

 

Initial Shares

 

 

88,709,647

 

 

 

53,660,884

 

Service Shares

 

 

9,410,412

 

 

 

6,244,032

 

Cost of shares redeemed:

 

 

 

 

 

 

 

 

Initial Shares

 

 

(310,357,317)

 

 

 

(255,053,283)

 

Service Shares

 

 

(45,945,352)

 

 

 

(49,284,189)

 

Increase (Decrease) in Net Assets
from Capital Stock Transactions

(32,227,619)

 

 

 

(51,109,517)

 

Total Increase (Decrease) in Net Assets

(106,129,348)

 

 

 

151,587,319

 

Net Assets ($):

 

 

 

 

 

 

 

 

Beginning of Period

 

 

2,189,866,979

 

 

 

2,038,279,660

 

End of Period

 

 

2,083,737,631

 

 

 

2,189,866,979

 

Undistributed investment income—net

2,397,015

 

 

 

42,071

 

Capital Share Transactions (Shares):

 

 

 

 

 

 

 

 

Initial Shares

 

 

 

 

 

 

 

 

Shares sold

 

 

4,841,013

 

 

 

4,171,268

 

Shares issued for dividends reinvested

 

 

2,036,868

 

 

 

1,273,338

 

Shares redeemed

 

 

(7,033,064)

 

 

 

(6,014,440)

 

Net Increase (Decrease) in Shares Outstanding

(155,183)

 

 

 

(569,834)

 

Service Shares

 

 

 

 

 

 

 

 

Shares sold

 

 

277,303

 

 

 

357,107

 

Shares issued for dividends reinvested

 

 

215,621

 

 

 

148,424

 

Shares redeemed

 

 

(1,030,819)

 

 

 

(1,160,923)

 

Net Increase (Decrease) in Shares Outstanding

(537,895)

 

 

 

(655,392)

 

                   

See notes to financial statements.

26

 

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

2015

2014

2013

2012

2011

Per Share Data ($):

           

Net asset value, beginning of period

 

44.99

40.84

31.86

29.48

29.67

Investment Operations:

           

Investment income—neta

 

.80

.74

.66

.63

.54

Net realized and unrealized gain
(loss) on investments

 

(.32)

4.65

9.39

3.95

.02

Total from Investment Operations

 

.48

5.39

10.05

4.58

.56

Distributions:

           

Dividends from
investment income—net

 

(.81)

(.75)

(.68)

(.64)

(.55)

Dividends from net realized
gain on investments

 

(1.24)

(.49)

(.39)

(1.56)

(.20)

Total Distributions

 

(2.05)

(1.24)

(1.07)

(2.20)

(.75)

Net asset value, end of period

 

43.42

44.99

40.84

31.86

29.48

Total Return (%)

 

1.11

13.42

32.02

15.74

1.88

Ratios/Supplemental Data (%):

         

Ratio of total expenses
to average net assets

 

.27

.27

.29

.28

.27

Ratio of net expenses
to average net assets

 

.27

.27

.29

.28

.27

Ratio of net investment income
to average net assets

 

1.81

1.76

1.82

2.02

1.81

Portfolio Turnover Rate

 

3.74

1.59

3.76

3.13

3.27

Net Assets, end of period ($ x 1,000)

 

1,880,694

1,955,325

1,798,538

1,541,577

1,487,417

a Based on average shares outstanding.

See notes to financial statements.

27

 

FINANCIAL HIGHLIGHTS (continued)

             
     
   

Year Ended December 31,

Service Shares

2015

2014

2013

2012

2011

Per Share Data ($):

           

Net asset value, beginning of period

 

45.03

40.89

31.90

29.51

29.70

Investment Operations:

           

Investment income—neta

 

.69

.64

.57

.56

.47

Net realized and unrealized gain
(loss) on investments

 

(.31)

4.63

9.40

3.96

.02

Total from Investment Operations

 

.38

5.27

9.97

4.52

.49

Distributions:

           

Dividends from
investment income—net

 

(.70)

(.64)

(.59)

(.57)

(.48)

Dividends from net realized
gain on investments

 

(1.24)

(.49)

(.39)

(1.56)

(.20)

Total Distributions

 

(1.94)

(1.13)

(.98)

(2.13)

(.68)

Net asset value, end of period

 

43.47

45.03

40.89

31.90

29.51

Total Return (%)

 

.86

13.10

31.71

15.47

1.62

Ratios/Supplemental Data (%):

         

Ratio of total expenses
to average net assets

 

.52

.52

.54

.53

.52

Ratio of net expenses
to average net assets

 

.52

.52

.54

.53

.52

Ratio of net investment income
to average net assets

 

1.56

1.50

1.57

1.78

1.56

Portfolio Turnover Rate

 

3.74

1.59

3.76

3.13

3.27

Net Assets, end of period ($ x 1,000)

 

203,044

234,542

239,742

185,127

168,177

a Based on average shares outstanding.

See notes to financial statements.

28

 

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. The fund is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. The fund’s investment objective is to seek to match the total return of the Standard & 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 Plan fee and Service shares are subject to a Distribution Plan 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 (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for 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.

29

 

NOTES TO FINANCIAL STATEMENTS (continued)

(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).

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. For open short positions, asked prices are 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 generally categorized within Level 1 of the fair value hierarchy.

30

 

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. 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.

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 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally 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 and are generally categorized within Level 1 of the fair value hierarchy.

The following is a summary of the inputs used as of December 31, 2015 in valuing the fund’s investments:

31

 

NOTES TO FINANCIAL STATEMENTS (continued)

         

 

Level 1 - Unadjusted Quoted Prices

Level 2 - Other Significant Observable Inputs

Level 3 -Significant Unobservable Inputs

Total

Assets ($)

       

Investment in Securities:

Equity Securities-Domestic Common Stocks

2,049,303,546

-

-

2,049,303,546

Equity Securities-
Foreign Common Stocks

6,798,942

-

-

6,798,942

Mutual Funds

19,424,386

-

-

19,424,386

U.S. Treasury

-

1,099,836

-

1,099,836

Liabilities ($)

       

Other Financial Instruments:

       

Financial Futures††

(35,121)

-

-

(35,121)

 See Statement of Investments for additional detailed categorizations.

†† Amount shown represents unrealized (depreciation) at period end.

At December 31, 2015, there were no transfers between levels 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, or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, The Bank of New York Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the

32

 

unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. During the period ended December 31, 2015, The Bank of New York Mellon earned $31,838 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” under the Act. Investments in affiliated investment companies during the period ended December 31, 2015 were as follows:

           

Affiliated Investment Company

Value 12/31/2014 ($)

Purchases ($)

Sales ($)

Value 12/31/2015 ($)

Net
Assets (%)

Dreyfus Institutional Preferred Plus Money Market Fund

19,877,173

207,751,565

214,957,866

12,670,872

.6

Dreyfus Institutional Cash Advantage Fund

5,130,668

113,369,945

111,747,099

6,753,514

.3

Total

25,007,841

321,121,510

326,704,965

19,424,386

.9

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are normally declared and paid quarterly. 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.

As of and during the period ended December 31, 2015, 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 ended December 31, 2015, the fund did not incur any interest or penalties.

33

 

NOTES TO FINANCIAL STATEMENTS (continued)

Each tax year in the four-year period ended December 31, 2015 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At December 31, 2015, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $3,275,330, undistributed capital gains $72,803,751 and unrealized appreciation $1,091,027,213.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2015 and December 31, 2014 were as follows: ordinary income $39,952,720 and $39,882,668, and long-term capital gains $58,167,339 and $20,022,248, respectively.

During the period ended December 31, 2015, as a result of permanent book to tax differences, primarily due to a tax basis deemed dividend, the fund increased accumulated undistributed investment income-net by $2,544,224 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $480 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 7, 2015, the unsecured credit facility with Citibank, N.A. was $430 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, 2015, 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 an index management agreement (the “Index Agreement”), Dreyfus has agreed to pay Mellon Capital a monthly index-management fee at the annual rate of .095% of the value of the fund’s average daily net assets. Pursuant to the Index Agreement, Mellon Capital pays the Custodian for its services to the fund.

34

 

(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 dealers acting as principal underwriter for their variable insurance products. The fees payable under the Distribution Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2015, Service shares were charged $540,554 pursuant to the Distribution Plan.

(c) Under the Shareholder Services Plan, Initial shares reimburse the Distributor at an amount not to exceed an annual rate of .25% of the value of its 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, 2015, Initial shares were charged $10,689 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 and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended December 31, 2015, the fund was charged $1,408 for transfer agency services and $106 for cash management services. These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $5.

During the period ended December 31, 2015, the fund was charged $10,946 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 $434,992, Distribution Plan fees $43,383, Shareholder Services Plan fees $1,000, Chief Compliance Officer fees $2,647 and transfer agency fees $115.

35

 

NOTES TO FINANCIAL STATEMENTS (continued)

(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, 2015, amounted to $78,730,579 and $174,540,274, 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, 2015 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 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 guarantees the financial futures against default. Financial futures open at December 31, 2015 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, 2015:

           

 

 

 

 

 

Average Market Value ($)

Equity financial futures

   

23,425,292

At December 31, 2015, the cost of investments for federal income tax purposes was $985,599,497; accordingly, accumulated net unrealized appreciation on investments was $1,091,027,213, consisting of

36

 

$1,176,994,827 gross unrealized appreciation and $85,967,614 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 New York titled In re Tribune Company Fraudulent Conveyance Litigation (S.D.N.Y. Nos. 11-md-2296 and 12-mc-2296 (RJS) (“Tribune MDL”)). On March 27, 2013, the Tribune MDL was reassigned from Judge William H. Pauley to Judge Richard J. Sullivan. No explanation was given for the reassignment.

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 (formerly The Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, et al., Bankr. D. Del. Adv. Pro. No. 10-54010 (KJC)) (“FitzSimons case”). The case was originally filed on November 1, 2010. In a Fourth Amended Complaint filed in November 2012, among other claims, the Creditors Committee sought recovery under the Bankruptcy Code for alleged “fraudulent conveyances” from more than 5,000 Tribune shareholders (“Shareholder Defendants”), including the fund, and a defendants’ class of all shareholders who tendered their Tribune stock in the LBO and received cash in exchange. There were 35 other counts in the Fourth Amended Complaint that did not relate to claims against Shareholder Defendants, but instead were 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

37

 

NOTES TO FINANCIAL STATEMENTS (continued)

plaintiff to the Creditors Committee in this case. The case is now proceeding as: Mark S. Kirchner, as Litigation Trustee for the Tribune Litigation Trust v. FitzSimons, et al., S.D.N.Y. No. 12-cv-2652 (RJS). On August 1, 2013, the plaintiff filed a Fifth Amended Complaint with the Court. The Fifth Amended Complaint contains more detailed allegations regarding the steps Tribune took in consideration and execution of the LBO, but does not change the legal basis for the claim previously alleged against the Shareholder Defendants.

On November 6, 2012, a motion to dismiss was filed in the Tribune MDL. Oral argument on the motion to dismiss was held on May 23, 2013. On September 23, 2013, Judge Sullivan granted the motion to dismiss on standing grounds, after rejecting defendants’ preemption arguments. By granting the motion, Judge Sullivan dismissed nearly 50 cases in the Tribune MDL. The fund was a defendant in at least one of the dismissed cases. The motion had no effect on the FitzSimons case, which had been stayed.

On September 30, 2013, plaintiffs appealed the motion to dismiss decision to the U.S. Court of Appeals for the Second Circuit. On October 28, 2013, certain defendants cross-appealed from Judge Sullivan’s decision, seeking review of the arguments that Judge Sullivan rejected in his decision. Briefing on the appeal and cross appeal was completed in April 2014. Oral argument before the Second Circuit took place on November 5, 2014, and, as of January 25, 2016, no decision has been made on the appeals.

On November 11, 2013, Judge Sullivan entered Master Case Order No. 4 in the Tribune MDL. Master Case Order No. 4 addressed numerous procedural and administrative tasks for the cases that remain in the Tribune MDL, including the FitzSimons case. Pursuant to Master Case Order No. 4, the parties – through their executive committees and liaison counsel – attempted to negotiate a protocol for motions to dismiss and other procedural issues, and submitted rival proposals to the Court. On April 24, 2014, the Court entered an order setting a schedule for the first motions to dismiss in the FitzSimons case. Pursuant to that schedule, a “global” motion to dismiss the fraudulent transfer claim asserted against the Shareholder Defendants, which applies equally to all Shareholder Defendants including the fund, was filed on May 23, 2014. Plaintiffs’ response brief was filed on June 23, 2014, and the reply brief was filed on July 3, 2014. No date for oral argument has been scheduled. The Court also preserved Shareholder Defendants’ rights to file nineteen motions to dismiss enumerated in their proposal and motions pursuant to Rules 12(b)(2)-(5) of the Federal Rules of Civil Procedure. If these various

38

 

motions are necessary after the Court decides the global motion to dismiss, the Court will set further guidelines and briefing schedules. No other responses to the operative complaint in the FitzSimons case are currently due or may be filed.

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.

39

 

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, 2015, 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, 2015 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, 2015, 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 11, 2016

40

 

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby reports 100% of the ordinary dividends paid during the fiscal year ended December 31, 2015 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in early 2016 of the percentage applicable to the preparation of their 2015 income tax returns. Also, the fund hereby reports $.0359 per share as a short-term capital gain distribution and $1.2069 per share as a long-term capital gain distribution paid on March 31, 2015.

41

 

BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (72)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

· Corporate Director and Trustee (1995-present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (1997-present)

No. of Portfolios for which Board Member Serves: 139

———————

Peggy C. Davis (72)

Board Member (2006)

Principal Occupation During Past 5 Years:

· Shad Professor of Law, New York University School of Law (1983-present)

No. of Portfolios for which Board Member Serves: 50

———————

David P. Feldman (76)

Board Member (1996)

Principal Occupation During Past 5 Years:

· Corporate Director and Trustee (1985-present)

Other Public Company Board Memberships During Past 5 Years:

· BBH Mutual Funds Group (5 registered mutual funds), Director (1992-2014)

No. of Portfolios for which Board Member Serves: 36

———————

Ehud Houminer (75)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Executive-in-Residence at the Columbia Business School, Columbia

University (1992-present)

Other Public Company Board Memberships During Past 5 Years:

· Avnet, Inc., an electronics distributor, Director (1993-2012)

No. of Portfolios for which Board Member Serves: 60

———————

42

 

Lynn Martin (76)

Board Member (2012)

Principal Occupation During Past 5 Years:

· President of The Martin Hall Group LLC, a human resources consulting firm (2005-2012)

Other Public Company Board Memberships During Past 5 Years:

· AT&T, Inc., a telecommunications company, Director (1999-2012)

· Ryder System, Inc., a supply chain and transportation management company, Director (1993-2012)

No. of Portfolios for which Board Member Serves: 36

———————

Robin A. Melvin (52)

Board Member (2012)

Principal Occupation During Past 5 Years:

· Co-chairman, Illinois Mentoring Partnership, non-profit organization dedicated to increasing the quantity and quality of mentoring services in Illinois; (2014-present; a board member since 2013)

· Director, Boisi Family Foundation, a private family foundation that supports youth-serving organizations that promote the self sufficiency of youth from disadvantaged circumstances (1995-2012)

No. of Portfolios for which Board Member Serves: 110

———————

Dr. Martin Peretz (76)

Board Member (2006)

Principal Occupation During Past 5 Years:

· Editor-in-Chief Emeritus of The New Republic Magazine (2011-2012) (previously,

Editor-in-Chief, 1974-2011)

· Director of TheStreet.com, a financial information service on the web (1996-2010)

· Lecturer at Harvard University (1969-2012)

No. of Portfolios for which Board Member Serves: 36

———————

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, New York, New York 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
Dr. Paul A. Marks, Emeritus Board Member
Philip L. Toia, Emeritus Board Member

43

 

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since January 2010.

Chief Operating Officer and a director of the Manager since June 2009, Chairman of Dreyfus Transfer, Inc., an affiliate of the Manager and the transfer agent of the funds, since May 2011 and Executive Vice President of the Distributor since June 2007. From April 2003 to June 2009, Mr. Skapyak was the head of the Investment Accounting and Support Department of the Manager. He is an officer of 65 investment companies (comprised of 139 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since February 1988.

BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015

Chief Legal Officer of the Manager since June 2015; from June 2005 to June 2015, Director and Associate General Counsel of Deutsche Bank – Asset & Wealth Management Division, and Chief Legal Officer of Deutsche Investment Management Americas Inc. He is an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2015.

JANETTE E. FARRAGHER, Vice President and Secretary since December 2011.

Assistant General Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. She is 53 years old and has been an employee of the Manager since February 1984.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Managing Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. She is 60 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Managing Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 54 years old and has been an employee of the Manager since June 2000.

MAUREEN E. KANE, Vice President and Assistant Secretary since April 2015.

Managing Counsel of BNY Mellon since July 2014; from October 2004 until July 2014, General Counsel, and from May 2009 until July 2014, Chief Compliance Officer of Century Capital Management. She is an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. She is 53 years old and has been an employee of the Manager since July 2014.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Senior Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager; from August 2005 to March 2013, Associate General Counsel of Third Avenue Management. She is 40 years old and has been an employee of the Manager since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since September 2003.

Senior Managing Counsel of BNY Mellon, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since September 2003.

Director – Mutual Fund Accounting of the Manager, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer since January 2007.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 56 years old and has been an employee of the Manager since September 1982.

44

 

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1991.

ROBERT S. ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since October 1988.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since June 1989.

ROBERT SVAGNA, Assistant Treasurer since September 2003.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 66 investment companies (comprised of 164 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (66 investment companies, comprised of 164 portfolios). He is 58 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

CARI M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016

Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust since January 2016; from May 2015 to December 2015, Interim Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust and the Distributor; from January 2012 to May 2015, AML Surveillance Officer of the Distributor and from 2007 to December 2011, Financial Processing Manager of the Distributor. She is an officer of 62 investment companies (comprised of 160 portfolios) managed by the Manager. She is 47 years old and has been an employee of the Distributor since 1997.

45

 

For More Information

Dreyfus Stock Index Fund, Inc.

200 Park Avenue
New York, NY 10166

Manager

The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Index Fund Manager

Mellon Capital Management Corporation
500 Grant Street
Pittsburgh, PA 15258

Custodian

The Bank of New York Mellon
225 Liberty Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166

Distributor

MBSC Securities Corporation
200 Park Avenue
New York, NY 10166


Telephone 1-800-242-8671 or 1-800-346-3621

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Services Department

E-mail Send your request to info@dreyfus.com

Internet Information can be viewed online or downloaded at www.dreyfus.com

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

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

   

© 2016 MBSC Securities Corporation
0763AR1215

 


 

 

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 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").   David P. 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 $32,226 in 2014 and $33,031 in 2015.

 

(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 $14,458 in 2014 and $9,350 in 2015. 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 2014 and $-0- in 2015.

 

(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 $2,957 in 2014 and $3,479 in 2015. 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 2014 and $-0- in 2015. 

 


 

(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 $1,179 in 2014 and $16 in 2015.  These services included 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 2014 and $-0- in 2015. 

 

(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 $23,307,177 in 2014 and $20,055,582 in 2015. 

 

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. 

Item 6.             Investments.

(a)                    Not applicable.

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

                        Not applicable. 

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

Not applicable. 

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

                        Not applicable. 


 

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 11, 2016

 

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 11, 2016

 

By:       /s/ James Windels

            James Windels,

            Treasurer

 

Date:    February 11, 2016

 

 

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)

 

EX-99.CODE ETH 2 codeofethics-march2014.htm CODE OF ETHICS codeofethics-march2014.htm - Generated by SEC Publisher for SEC Filing

 

THE DREYFUS FAMILY OF FUNDS

CODE OF ETHICS FOR PRINCIPAL EXECUTIVE

AND SENIOR FINANCIAL OFFICERS

 

1.      Covered Officers/Purpose of the Code

This code of ethics (the "Code") for the investment companies within the complex (each, a "Fund") applies to each Fund's Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer or Controller, or other persons performing similar functions, each of whom is listed on Exhibit A (the "Covered Officers"), for the purpose of promoting:

·           honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

·           full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission (the "SEC") and in other public communications made by the Fund;

·           compliance with applicable laws and governmental rules and regulations;

·           the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

·           accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

2.      Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, the Fund.  For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fund.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the "Investment Company Act"), and the Investment Advisers Act of 1940, as amended (the "Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as "affiliated persons" of the Fund. The compliance programs and procedures of the Fund and the Fund's investment adviser (the "Adviser") are designed to prevent, or identify and correct, violations of these provisions. The Code does not, and is not intended to, repeat or replace these programs and procedures, and the circumstances they cover fall outside of the parameters of the Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund and the Adviser of which the Covered Officers are also officers or employees.  As a result, the Code recognizes that the Covered Officers, in the ordinary course of their duties (whether formally for the Fund or for the Adviser, or for both), will be involved in establishing policies and implementing decisions that will have different effects on the Adviser and the Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the Adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Fund and, if addressed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, will be deemed to have been handled ethically. In addition, it is recognized by the Fund's Board that the Covered Officers also may be officers or employees of one or more other investment companies covered by this or other codes of ethics.

 


 

 

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act.  Covered Officers should keep in mind that the Code cannot enumerate every possible scenario.  The overarching principle of the Code is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund.

Each Covered Officer must:

·           not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;

·           not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund; and

·           not retaliate against any employee or Covered Officer for reports of potential violations that are made in good faith.

3.      Disclosure and Compliance

·           Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Fund within his area of responsibility;

·           each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund's Board members and auditors, and to governmental regulators and self-regulatory organizations;

·           each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Fund and the Adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund; and

·           it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

 


 

 

4.      Reporting and Accountability

Each Covered Officer must:

·           upon adoption of the Code (or thereafter, as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he has received, read, and understands the Code;

·           annually thereafter affirm to the Board that he has complied with the requirements of the Code; and

·           notify the Adviser's General Counsel (the "General Counsel") promptly if he knows of any violation of the Code.  Failure to do so is itself a violation of the Code.

The General Counsel is responsible for applying the Code to specific situations in which questions are presented under it and has the authority to interpret the Code in any particular situation. However, waivers sought by any Covered Officer will be considered by the Fund's Board.

The Fund will follow these procedures in investigating and enforcing the Code:

·           the General Counsel will take all appropriate action to investigate any potential violations reported to him;

·           if, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action;

·           any matter that the General Counsel believes is a violation will be reported to the Board;

·           if the Board concurs that a violation has occurred, it will consider appropriate action, which may include: review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Adviser or its board; or dismissal of the Covered Officer;

·           the Board will be responsible for granting waivers, as appropriate; and

·           any waivers of or amendments to the Code, to the extent required, will be disclosed as provided by SEC rules.

5.      Other Policies and Procedures

The Code shall be the sole code of ethics adopted by the Fund for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. The Fund's, its principal underwriter's and the Adviser's codes of ethics under Rule 17j-1 under the Investment Company Act and the Adviser's additional policies and procedures, including its Code of Conduct, are separate requirements applying to the Covered Officers and others, and are not part of the Code.

 


 

 

6.      Amendments 

The Code may not be amended except in written form, which is specifically approved or ratified by a majority vote of the Fund's Board, including a majority of independent Board members.

7.      Confidentiality 

All reports and records prepared or maintained pursuant to the Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or the Code, such matters shall not be disclosed to anyone other than the appropriate Funds and their counsel, the appropriate Boards (or Committees) and their counsel and the Adviser

8.      Internal Use

The Code is intended solely for the internal use by the Fund and does not constitute an admission, by or on behalf of the Fund, as to any fact, circumstance, or legal conclusion.

Dated as of:  July 1, 2003

 


 

 

Exhibit A

Persons Covered by the Code of Ethics

 

 

Bradley J. Skapyak

President

(Principal Executive Officer)

 

 

 

James Windels

Treasurer

(Principal Financial and Accounting Officer)

 

 

 

Revised as of: January 1, 2010

EX-99.CERT 3 exhibit302-763.htm CERTIFICATION REQUIRED BY RULE 30A-2 exhibit302-763.htm - Generated by SEC Publisher for SEC Filing

[EX-99.CERT]—Exhibit  (a)(2)

 

SECTION 302 CERTIFICATION

 

I, Bradley J. Skapyak, certify that:

1.  I have reviewed this report on Form N-CSR of Dreyfus Stock Index Fund, Inc.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

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

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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

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

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

5.  The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

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

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

Date:    February 11, 2016


 

SECTION 302 CERTIFICATION

I, James Windels, certify that:

1.  I have reviewed this report on Form N-CSR of Dreyfus Stock Index Fund, Inc.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

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

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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

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

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

5.  The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

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

By:       /s/ James Windels

            James Windels,

            Treasurer

Date:    February 11, 2016

 

EX-99.906 CERT 4 exhibit906-073.htm CERTIFICATION REQUIRED BY SECTION 906 exhibit906-073.htm - Generated by SEC Publisher for SEC Filing

 [EX-99.906CERT]

Exhibit (b)

 

 

SECTION 906 CERTIFICATIONS

            In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

            (1)        the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and

 

            (2)        the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date:    February 11, 2016

 

 

By:       /s/ James Windels

            James Windels,

            Treasurer

 

Date:    February 11, 2016

 

 

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

 

 

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