0000846800-19-000001.txt : 20190212 0000846800-19-000001.hdr.sgml : 20190212 20190212143325 ACCESSION NUMBER: 0000846800-19-000001 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20181231 FILED AS OF DATE: 20190212 DATE AS OF CHANGE: 20190212 EFFECTIVENESS DATE: 20190212 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: 19589975 BUSINESS ADDRESS: STREET 1: THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226400 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 7TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS STOCK INDEX FUND INC DATE OF NAME CHANGE: 20020514 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 lp1-763.htm ANNUAL REPORT lp1-763.htm - Generated by SEC Publisher for SEC Filing

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number

811-05719

 

 

 

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) 922-6400

 

 

Date of fiscal year end:

 

12/31

 

Date of reporting period:

12/31/18

 

 

             

 

 


 

FORM N-CSR

Item 1.             Reports to Stockholders.

 


 

Dreyfus Stock Index Fund, Inc.

     

 

ANNUAL REPORT
December 31, 2018

   
 

 

 

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

 

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

 

Contents

THE FUND

FOR MORE INFORMATION

 

Back Cover

 

       
 


Dreyfus Stock Index Fund, Inc.

 

The Fund

A LETTER FROM THE PRESIDENT OF DREYFUS

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Stock Index Fund, Inc., covering the 12-month period from January 1, 2018 through December 31, 2018. 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.

The reporting period began with major global economies achieving above-trend growth. In the United States, a robust economy and strong labor market encouraged the Federal Reserve to continue moving away from its accommodative monetary policy while other major central banks began to consider monetary tightening. Both U.S. and non-U.S. equity markets remained on an uptrend. Interest rates rose across the yield curve, putting pressure on bond prices.

A few months into the reporting period, global growth trends began to diverge and market volatility returned. While the U.S. economy continued to grow at a healthy rate, other developed markets began to weaken. However, robust growth and strong corporate earnings continued to support U.S. stock returns while other developed markets declined throughout the summer. In the fall, a broad sell-off occurred, partially offsetting earlier U.S. gains. Emerging markets remained under pressure as weakness in their currencies relative to the U.S. dollar added to investors’ uneasiness. Global equities continued their general decline through the end of the period.

Fixed income markets struggled during the first half of the period as interest rates rose and favorable U.S. equity markets fed investor risk appetites. However, in autumn volatility crept in, the yield curve began a flattening trend that continued through the end of December. As long-term debt yields fell, prices rose for many bonds, leading to moderately positive returns for several fixed income market sectors.

Despite continuing political variables, U.S. inflationary pressures and flagging growth rates, we are optimistic that the U.S. economy will remain strong in the near term. However, we remain attentive to signs that point to potential changes on the horizon. As always, we encourage you to discuss the risks and opportunities in today’s investment environment with your financial advisor.

Thank you for your continued confidence and support.

Sincerely,

Renee Laroche-Morris
President
The Dreyfus Corporation
January 15, 2019

2

 

DISCUSSION OF FUND PERFORMANCE (Unaudited)

For the period from January 1, 2018 through December 31, 2018, as provided by Thomas J. Durante, CFA, Karen Q. Wong, CFA, and Richard A. Brown, CFA, Portfolio Managers

Market and Fund Performance Overview

For the 12-month period ended December 31, 2018, Dreyfus Stock Index Fund, Inc.’s Initial Shares produced a total return of -4.63%, and its Service Shares produced a total return of -4.85%.1 In comparison, the S&P 500® Index (the “Index”), the fund’s benchmark, produced a total return of -4.38% for the same period.2,3  

U.S. equities lost value over the reporting period amid escalating trade tensions and slowing global economic growth rates. The difference in returns between the fund and the Index was primarily the result of transaction costs and operating expenses that are not reflected in the Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the Index. To pursue its goal, the fund generally is fully invested in stocks included in the Index. The fund generally invests in all 500 stocks in the Index in proportion to their weighting in the Index. The fund may also use stock index futures contracts whose performance is tied to the Index or invest in exchange-traded funds, typically when the fund’s available cash balances cannot otherwise be efficiently or effectively invested directly.

Positive U.S. Economic Indicators Amid Volatility

A positive economic backdrop supported U.S. equity markets at the start of 2018, including sustained GDP growth, a robust labor market and higher growth forecasts from the Federal Reserve Board (the “Fed”). Enactment of corporate tax cuts as part of major tax reform legislation in late December 2017 sparked additional market gains, driving the Index to new all-time highs in January.

In the first few months of 2018, volatility entered the picture, as concerns over inflation and the potential for trade disputes roiled markets. However, U.S. markets were able to stabilize, and the upward trend continued on the back of continued positive economic data, corporate balance sheet strength and robust consumer spending. However, non-U.S. markets retreated as the rate of economic improvement in areas such as the Eurozone stalled. In late summer, continued political rhetoric in the U.S. regarding trade and midterm elections, as well as concerns over issues abroad in areas such as Italy, Turkey, Argentina and the United Kingdom, weighed on sentiment. Despite strong underlying fundamentals, volatility crept back into the picture in U.S. markets. Firm labor markets, tightening monetary policy and the possibility of slowing growth provoked a defensive posture among investors. In October, markets reversed and started to move lower. Continued worries over rising rates, trade disputes and falling commodity prices pressured equity markets throughout the rest of the period.

In this environment, large-cap stocks generally outperformed their mid- and small-cap counterparts.

Rising U.S. Rates and Trade Concerns Constrain Markets

During the reporting period, the financials, industrials and energy sectors underperformed the broader market. In the financials sector, banks were the biggest detractor. For the majority of the year, rising U.S. rates reduced revenue from new auto and home loans. Heavy demand over the

3

 

DISCUSSION OF FUND PERFORMANCE (Unaudited) (continued)

last several years has left the market saturated and demand has slowed, both in the U.S. and overseas. In addition, a flattening yield curve has also made lending less profitable. In industrials, slowdowns in global demand due to slowing growth and trade issues depressed stocks in many industries. Industrial conglomerates, such as General Electric, whose stock price dropped throughout the reporting period, was the worst performing industry. Machinery companies were also under pressure because of trade tensions, rising costs of raw materials, and revenue delays caused by labor shortages, which delayed the completion of projects. The cost of labor and materials has also increased due to tariffs. The energy sector fell in the latter portion of the year as a supply glut concerned investors.

Conversely, health care stocks posted positive returns for the reporting period. Medical device companies have benefited from merger and acquisition activity within the industry. Health insurance companies also performed well, as the rate of health care costs has typically risen less than these companies’ models predicted, resulting in cost savings. Pharmaceutical companies also tended to perform well. Many benefited from repatriation of overseas assets made possible by the 2017 tax overhaul. The funds were used to buy back stock, bolstering prices. The information technology sector also produced positive returns for the period, led by software developers. Investors also appeared to favor profitable companies with sustainable growth rates and low costs. Consumer discretionary stocks in the internet and direct retailing industry fared well, particularly Amazon.com, which achieved strong holiday sales and continues to expand its cloud computing business. Strong consumer spending in the U.S. also helped to support revenues for the online retail portion of the business.

Replicating the Performance of the 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 remains intact, supported by a strong labor market and sound corporate balance sheets. However, the market’s currently constructive conditions could be undermined by unexpected political and economic developments. As always, we have continued to monitor the factors considered by the fund’s investments.

January 15, 2019

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. — The S&P 500® Index is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. 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. 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.

Equities 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 those of 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.

4

 

FUND PERFORMANCE (Unaudited)

Comparison of change in value of $10,000 investment in Dreyfus Stock Index Fund, Inc. Initial shares and Service shares and the S&P 500® Index (the “Index”)

 Source: Lipper Inc.

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

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Stock Index Fund, Inc. on 12/31/08 to a $10,000 investment made in the Index on that date.

The fund’s performance shown in the line graph above takes into account all applicable fees and expenses. The Index is widely regarded as the best single gauge of large-cap U.S. equities. The Index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. 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.

       

Average Annual Total Returns as of 12/31/18

 

1 Year

5 Years

10 Years

Initial shares

-4.63%

8.23%

12.86%

Service shares

-4.85%

7.96%

12.58%

S&P 500® Index

-4.38%

8.49%

13.11%

The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to Dreyfus.com for the fund’s most recent month-end returns.

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 graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

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, 2018 to December 31, 2018. 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, 2018

         

Initial Shares

Service Shares

Expenses paid per $1,000

       

 

$1.31

$2.53

Ending value (after expenses)

       

 

$930.30

$929.20

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, 2018

         

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, 2018

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1%

         

Automobiles & Components - .5%

         

Aptiv

     

27,540

 

1,695,638

 

BorgWarner

     

21,536

 

748,161

 

Ford Motor

     

410,883

 

3,143,255

 

General Motors

     

136,939

 

4,580,610

 

Goodyear Tire & Rubber

     

27,228

 

555,723

 

Harley-Davidson

     

16,816

a

573,762

 
       

11,297,149

 

Banks - 5.6%

         

Bank of America

     

963,250

 

23,734,480

 

BB&T

     

80,726

 

3,497,050

 

Citigroup

     

258,047

 

13,433,927

 

Citizens Financial Group

     

49,555

 

1,473,270

 

Comerica

     

17,677

 

1,214,233

 

Fifth Third Bancorp

     

71,506

 

1,682,536

 

First Republic Bank

     

17,255

 

1,499,459

 

Huntington Bancshares

     

114,710

 

1,367,343

 

JPMorgan Chase & Co.

     

350,715

 

34,236,798

 

KeyCorp

     

109,004

 

1,611,079

 

M&T Bank

     

14,930

 

2,136,931

 

People's United Financial

     

36,707

 

529,682

 

PNC Financial Services

     

48,909

 

5,717,951

 

Regions Financial

     

114,203

 

1,528,036

 

SunTrust Banks

     

47,924

 

2,417,287

 

SVB Financial Group

     

5,592

b

1,062,033

 

U.S. Bancorp

     

161,469

 

7,379,133

 

Wells Fargo & Co.

     

447,340

 

20,613,427

 

Zions Bancorp

     

19,887

 

810,196

 
       

125,944,851

 

Capital Goods - 6.3%

         

3M

     

61,400

 

11,699,156

 

A.O. Smith

     

15,791

 

674,276

 

Allegion

     

9,632

a

767,767

 

AMETEK

     

23,892

 

1,617,488

 

Arconic

     

44,618

 

752,259

 

Boeing

     

55,702

 

17,963,895

 

Caterpillar

     

62,148

 

7,897,146

 

Cummins

     

15,588

 

2,083,180

 

Deere & Co.

     

33,569

 

5,007,488

 

Dover

     

15,953

 

1,131,865

 

Eaton

     

45,496

 

3,123,755

 

Emerson Electric

     

65,557

 

3,917,031

 

7

 

STATEMENT OF INVESTMENTS (continued)

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Capital Goods - 6.3% (continued)

         

Fastenal

     

30,349

a

1,586,949

 

Flowserve

     

14,740

 

560,415

 

Fluor

     

15,662

 

504,316

 

Fortive

     

31,161

 

2,108,353

 

Fortune Brands Home & Security

     

14,389

 

546,638

 

General Dynamics

     

29,075

 

4,570,881

 

General Electric

     

917,030

 

6,941,917

 

Harris

     

12,667

 

1,705,612

 

Honeywell International

     

77,719

 

10,268,234

 

Huntington Ingalls Industries

     

4,436

 

844,215

 

Illinois Tool Works

     

32,675

 

4,139,596

 

Ingersoll-Rand

     

25,714

 

2,345,888

 

Jacobs Engineering Group

     

12,016

 

702,455

 

Johnson Controls International

     

98,578

 

2,922,838

 

L3 Technologies

     

8,248

 

1,432,348

 

Lockheed Martin

     

26,130

 

6,841,879

 

Masco

     

33,139

 

968,984

 

Northrop Grumman

     

18,175

 

4,451,057

 

PACCAR

     

37,306

 

2,131,665

 

Parker-Hannifin

     

13,910

 

2,074,537

 

Pentair

     

17,318

 

654,274

 

Quanta Services

     

14,905

 

448,641

 

Raytheon

     

30,039

 

4,606,481

 

Rockwell Automation

     

13,208

 

1,987,540

 

Roper Technologies

     

10,919

 

2,910,132

 

Snap-on

     

5,870

 

852,852

 

Stanley Black & Decker

     

16,067

 

1,923,863

 

Textron

     

25,617

 

1,178,126

 

TransDigm Group

     

5,174

b

1,759,470

 

United Rentals

     

9,054

b

928,307

 

United Technologies

     

85,195

 

9,071,564

 

W.W. Grainger

     

4,891

a

1,381,023

 

Xylem

     

18,569

 

1,238,924

 
       

143,225,280

 

Commercial & Professional Services - .7%

         

Cintas

     

9,120

 

1,532,069

 

Copart

     

21,444

b

1,024,594

 

Equifax

     

12,610

 

1,174,369

 

IHS Markit

     

37,761

b

1,811,395

 

Nielsen Holdings

     

35,836

 

836,054

 

Republic Services

     

23,403

 

1,687,122

 

Robert Half International

     

13,535

 

774,202

 

Rollins

     

15,217

a

549,334

 

8

 

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Commercial & Professional Services - .7% (continued)

         

Verisk Analytics

     

17,503

b

1,908,527

 

Waste Management

     

41,738

 

3,714,265

 
       

15,011,931

 

Consumer Durables & Apparel - 1.1%

         

Capri Holdings

     

15,344

 

581,844

 

D.R. Horton

     

34,986

 

1,212,615

 

Garmin

     

12,799

 

810,433

 

Hanesbrands

     

37,444

a

469,173

 

Hasbro

     

11,912

 

967,850

 

Leggett & Platt

     

14,780

a

529,715

 

Lennar, Cl. A

     

31,005

 

1,213,846

 

Mattel

     

36,699

a,b

366,623

 

Mohawk Industries

     

6,520

b

762,579

 

Newell Brands

     

44,457

a

826,456

 

NIKE, Cl. B

     

133,978

 

9,933,129

 

PulteGroup

     

27,277

 

708,929

 

PVH

     

8,418

 

782,453

 

Ralph Lauren

     

5,533

 

572,444

 

Tapestry

     

29,459

 

994,241

 

Under Armour, Cl. A

     

18,658

b

329,687

 

Under Armour, Cl. C

     

18,788

a,b

303,802

 

VF

     

34,477

 

2,459,589

 

Whirlpool

     

6,813

 

728,105

 
       

24,553,513

 

Consumer Services - 1.8%

         

Carnival

     

41,869

 

2,064,142

 

Chipotle Mexican Grill

     

2,666

b

1,151,152

 

Darden Restaurants

     

13,349

 

1,333,031

 

H&R Block

     

22,489

a

570,546

 

Hilton Worldwide Holdings

     

31,725

 

2,277,855

 

Marriott International, Cl. A

     

29,991

 

3,255,823

 

McDonald's

     

81,231

 

14,424,189

 

MGM Resorts International

     

54,336

 

1,318,191

 

Norwegian Cruise Line Holdings

     

21,719

b

920,668

 

Royal Caribbean Cruises

     

18,253

 

1,784,961

 

Starbucks

     

131,744

 

8,484,314

 

Wynn Resorts

     

10,361

 

1,024,807

 

Yum! Brands

     

33,242

 

3,055,605

 
       

41,665,284

 

Diversified Financials - 5.3%

         

Affiliated Managers Group

     

5,861

 

571,096

 

American Express

     

74,431

 

7,094,763

 

Ameriprise Financial

     

15,211

 

1,587,572

 

9

 

STATEMENT OF INVESTMENTS (continued)

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Diversified Financials - 5.3% (continued)

         

Bank of New York Mellon

     

96,744

 

4,553,740

 

Berkshire Hathaway

     

204,997

b

41,856,287

 

BlackRock

     

12,829

 

5,039,488

 

Capital One Financial

     

50,303

 

3,802,404

 

CBOE Holdings

     

11,578

 

1,132,676

 

Charles Schwab

     

125,599

 

5,216,126

 

CME Group

     

37,641

 

7,081,025

 

Discover Financial Services

     

35,542

 

2,096,267

 

E*TRADE

     

27,606

 

1,211,351

 

Franklin Resources

     

31,318

a

928,892

 

Goldman Sachs Group

     

36,718

 

6,133,742

 

Intercontinental Exchange

     

60,270

 

4,540,139

 

Invesco

     

44,311

a

741,766

 

Jefferies Financial Group

     

29,259

 

507,936

 

Moody's

     

17,795

 

2,492,012

 

Morgan Stanley

     

139,665

 

5,537,717

 

MSCI

     

9,511

 

1,402,207

 

Nasdaq

     

12,326

 

1,005,432

 

Northern Trust

     

23,764

 

1,986,433

 

Raymond James Financial

     

13,695

 

1,019,045

 

S&P Global

     

26,456

 

4,495,933

 

State Street

     

40,422

 

2,549,416

 

Synchrony Financial

     

71,106

 

1,668,147

 

T. Rowe Price Group

     

25,866

 

2,387,949

 
       

118,639,561

 

Energy - 5.2%

         

Anadarko Petroleum

     

54,515

 

2,389,938

 

Apache

     

40,247

 

1,056,484

 

Baker Hughes

     

53,318

 

1,146,337

 

Cabot Oil & Gas

     

45,295

 

1,012,343

 

Chevron

     

200,761

 

21,840,789

 

Cimarex Energy

     

9,679

 

596,710

 

Concho Resources

     

21,310

b

2,190,455

 

ConocoPhillips

     

121,479

 

7,574,216

 

Devon Energy

     

49,681

 

1,119,810

 

Diamondback Energy

     

16,113

 

1,493,675

 

EOG Resources

     

60,518

 

5,277,775

 

Exxon Mobil

     

446,043

 

30,415,672

 

Halliburton

     

91,599

 

2,434,701

 

Helmerich & Payne

     

11,028

 

528,682

 

Hess

     

26,203

 

1,061,222

 

HollyFrontier

     

16,704

 

853,908

 

Kinder Morgan

     

197,623

 

3,039,442

 

10

 

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Energy - 5.2% (continued)

         

Marathon Oil

     

90,979

 

1,304,639

 

Marathon Petroleum

     

72,591

 

4,283,595

 

National Oilwell Varco

     

40,448

 

1,039,514

 

Newfield Exploration

     

20,646

b

302,670

 

Noble Energy

     

51,383

 

963,945

 

Occidental Petroleum

     

79,866

 

4,902,175

 

ONEOK

     

43,548

 

2,349,415

 

Phillips 66

     

44,555

 

3,838,413

 

Pioneer Natural Resources

     

17,974

 

2,363,940

 

Schlumberger

     

145,972

 

5,266,670

 

TechnipFMC

     

46,484

 

910,157

 

Valero Energy

     

44,957

 

3,370,426

 

Williams Cos.

     

128,683

 

2,837,460

 
       

117,765,178

 

Food & Staples Retailing - 1.5%

         

Costco Wholesale

     

45,890

 

9,348,252

 

Kroger

     

85,034

 

2,338,435

 

Sysco

     

50,883

 

3,188,329

 

Walgreens Boots Alliance

     

85,154

 

5,818,573

 

Walmart

     

150,273

 

13,997,930

 
       

34,691,519

 

Food, Beverage & Tobacco - 3.9%

         

Altria Group

     

197,336

 

9,746,425

 

Archer-Daniels-Midland

     

59,604

 

2,441,976

 

Brown-Forman, Cl. B

     

17,170

 

816,949

 

Campbell Soup

     

20,563

 

678,373

 

Coca-Cola

     

403,535

 

19,107,382

 

Conagra Brands

     

48,692

 

1,040,061

 

Constellation Brands, Cl. A

     

17,485

 

2,811,938

 

General Mills

     

62,912

 

2,449,793

 

Hershey

     

14,939

 

1,601,162

 

Hormel Foods

     

29,144

a

1,243,866

 

J.M. Smucker

     

11,568

 

1,081,492

 

Kellogg

     

26,934

 

1,535,507

 

Kraft Heinz

     

64,750

 

2,786,840

 

Lamb Weston Holdings

     

15,271

 

1,123,335

 

McCormick & Co.

     

12,796

a

1,781,715

 

Molson Coors Brewing, Cl. B

     

19,665

 

1,104,386

 

Mondelez International, Cl. A

     

154,481

 

6,183,874

 

Monster Beverage

     

41,277

b

2,031,654

 

PepsiCo

     

148,730

 

16,431,690

 

Philip Morris International

     

163,756

 

10,932,351

 

11

 

STATEMENT OF INVESTMENTS (continued)

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Food, Beverage & Tobacco - 3.9% (continued)

         

Tyson Foods, Cl. A

     

30,940

 

1,652,196

 
       

88,582,965

 

Health Care Equipment & Services - 6.5%

         

Abbott Laboratories

     

184,991

 

13,380,399

 

ABIOMED

     

4,772

b

1,551,091

 

Align Technology

     

7,629

b

1,597,741

 

AmerisourceBergen

     

16,608

 

1,235,635

 

Anthem

     

27,178

 

7,137,758

 

Baxter International

     

52,332

 

3,444,492

 

Becton Dickinson

     

27,957

 

6,299,271

 

Boston Scientific

     

144,385

b

5,102,566

 

Cardinal Health

     

31,567

 

1,407,888

 

Centene

     

21,774

b

2,510,542

 

Cerner

     

34,998

b

1,835,295

 

Cigna

     

40,009

 

7,598,454

 

Cooper

     

5,165

 

1,314,493

 

CVS Health

     

136,198

 

8,923,693

 

Danaher

     

64,344

 

6,635,153

 

DaVita

     

13,763

b

708,244

 

Dentsply Sirona

     

23,770

 

884,482

 

Edwards Lifesciences

     

21,979

b

3,366,523

 

HCA Healthcare

     

28,133

 

3,501,152

 

Henry Schein

     

15,896

a,b

1,248,154

 

Hologic

     

29,316

b

1,204,888

 

Humana

     

14,379

 

4,119,296

 

IDEXX Laboratories

     

9,224

b

1,715,848

 

Intuitive Surgical

     

11,884

b

5,691,485

 

Laboratory Corporation of America Holdings

     

10,957

b

1,384,527

 

McKesson

     

20,906

 

2,309,486

 

Medtronic

     

141,377

 

12,859,652

 

Quest Diagnostics

     

14,077

 

1,172,192

 

ResMed

     

15,225

 

1,733,671

 

Stryker

     

32,409

 

5,080,111

 

UnitedHealth Group

     

101,355

 

25,249,558

 

Universal Health Services, Cl. B

     

8,836

 

1,029,924

 

Varian Medical Systems

     

9,947

b

1,127,095

 

WellCare Health Plans

     

5,305

b

1,252,457

 

Zimmer Biomet Holdings

     

21,197

 

2,198,553

 
       

147,811,769

 

Household & Personal Products - 1.8%

         

Church & Dwight

     

25,840

 

1,699,238

 

Clorox

     

13,577

 

2,092,759

 

12

 

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Household & Personal Products - 1.8% (continued)

         

Colgate-Palmolive

     

91,367

 

5,438,164

 

Coty

     

50,145

a

328,951

 

Estee Lauder, Cl. A

     

23,710

 

3,084,671

 

Kimberly-Clark

     

36,231

 

4,128,160

 

Procter & Gamble

     

262,443

 

24,123,761

 
       

40,895,704

 

Insurance - 2.3%

         

Aflac

     

80,592

 

3,671,772

 

Allstate

     

36,043

 

2,978,233

 

American International Group

     

92,618

 

3,650,075

 

Aon

     

25,297

 

3,677,172

 

Arthur J. Gallagher & Co.

     

18,596

 

1,370,525

 

Assurant

     

5,513

 

493,083

 

Brighthouse Financial

     

12,716

b

387,584

 

Chubb

     

48,398

 

6,252,054

 

Cincinnati Financial

     

15,791

 

1,222,539

 

Everest Re Group

     

4,404

 

959,015

 

Hartford Financial Services Group

     

38,362

 

1,705,191

 

Lincoln National

     

23,336

 

1,197,370

 

Loews

     

28,355

 

1,290,720

 

Marsh & McLennan Cos.

     

53,441

 

4,261,920

 

MetLife

     

103,787

 

4,261,494

 

Principal Financial Group

     

28,084

 

1,240,470

 

Progressive

     

60,815

 

3,668,969

 

Prudential Financial

     

43,822

 

3,573,684

 

Torchmark

     

10,610

 

790,763

 

Travelers

     

27,883

 

3,338,989

 

Unum Group

     

23,602

 

693,427

 

Willis Towers Watson

     

13,744

 

2,087,164

 
       

52,772,213

 

Materials - 2.7%

         

Air Products & Chemicals

     

23,312

 

3,731,086

 

Albemarle

     

11,143

a

858,791

 

Avery Dennison

     

8,957

 

804,607

 

Ball

     

36,926

 

1,697,857

 

Celanese, Ser. A

     

14,094

a

1,268,037

 

CF Industries Holdings

     

25,382

 

1,104,371

 

DowDuPont

     

241,582

 

12,919,805

 

Eastman Chemical

     

15,052

 

1,100,452

 

Ecolab

     

26,706

 

3,935,129

 

FMC

     

13,855

 

1,024,716

 

Freeport-McMoRan

     

153,956

 

1,587,286

 

International Flavors & Fragrances

     

10,443

a

1,402,182

 

13

 

STATEMENT OF INVESTMENTS (continued)

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Materials - 2.7% (continued)

         

International Paper

     

43,861

 

1,770,230

 

Linde

     

58,023

 

9,053,909

 

LyondellBasell Industries, Cl. A

     

33,480

 

2,784,197

 

Martin Marietta Materials

     

6,493

 

1,115,952

 

Mosaic

     

37,072

 

1,082,873

 

Newmont Mining

     

56,693

 

1,964,412

 

Nucor

     

33,462

 

1,733,666

 

Packaging Corporation of America

     

10,111

 

843,864

 

PPG Industries

     

25,326

 

2,589,077

 

Sealed Air

     

15,944

 

555,489

 

Sherwin-Williams

     

8,713

 

3,428,217

 

Vulcan Materials

     

13,938

 

1,377,074

 

WestRock

     

27,422

 

1,035,455

 
       

60,768,734

 

Media & Entertainment - 7.8%

         

Activision Blizzard

     

79,579

 

3,705,994

 

Alphabet, Cl. A

     

31,496

b

32,912,060

 

Alphabet, Cl. C

     

32,415

b

33,569,298

 

CBS, Cl. B

     

35,072

 

1,533,348

 

Charter Communications, Cl. A

     

18,798

b

5,356,866

 

Comcast, Cl. A

     

478,914

 

16,307,022

 

Discovery Communications, Cl. A

     

15,796

b

390,793

 

Discovery, Cl. C

     

38,258

b

882,995

 

DISH Network, Cl. A

     

24,130

b

602,526

 

Electronic Arts

     

31,999

b

2,525,041

 

Facebook, Cl. A

     

252,773

b

33,136,013

 

Interpublic Group of Companies

     

39,200

 

808,696

 

Netflix

     

45,932

b

12,294,159

 

News Corp., Cl. A

     

39,914

 

453,024

 

News Corp., Cl. B

     

10,892

 

125,803

 

Omnicom Group

     

23,203

a

1,699,388

 

Take-Two Interactive Software

     

12,100

b

1,245,574

 

TripAdvisor

     

11,427

b

616,372

 

Twenty-First Century Fox, Cl. A

     

110,024

 

5,294,355

 

Twenty-First Century Fox, Cl. B

     

51,714

 

2,470,895

 

Twitter

     

76,394

b

2,195,564

 

Viacom, Cl. B

     

37,242

 

957,119

 

Walt Disney

     

156,810

 

17,194,216

 
       

176,277,121

 

Pharmaceuticals Biotechnology & Life Sciences - 8.7%

         

AbbVie

     

158,531

 

14,614,973

 

Agilent Technologies

     

33,657

 

2,270,501

 

Alexion Pharmaceuticals

     

23,177

b

2,256,513

 

14

 

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Pharmaceuticals Biotechnology & Life Sciences - 8.7% (continued)

         

Allergan

     

33,604

 

4,491,511

 

Amgen

     

67,230

 

13,087,664

 

Biogen

     

21,231

b

6,388,833

 

Bristol-Myers Squibb

     

170,681

 

8,871,998

 

Celgene

     

74,088

b

4,748,300

 

Eli Lilly & Co.

     

100,023

 

11,574,662

 

Gilead Sciences

     

135,617

 

8,482,843

 

Illumina

     

15,344

b

4,602,126

 

Incyte

     

18,567

b

1,180,676

 

IQVIA Holdings

     

17,222

b

2,000,680

 

Johnson & Johnson

     

282,563

 

36,464,755

 

Merck & Co.

     

274,563

 

20,979,359

 

Mettler-Toledo International

     

2,688

b

1,520,279

 

Mylan

     

53,390

b

1,462,886

 

Nektar Therapeutics

     

18,321

a,b

602,211

 

PerkinElmer

     

11,424

a

897,355

 

Perrigo

     

12,871

 

498,751

 

Pfizer

     

609,829

 

26,619,036

 

Regeneron Pharmaceuticals

     

8,156

b

3,046,266

 

Thermo Fisher Scientific

     

42,143

 

9,431,182

 

Vertex Pharmaceuticals

     

27,052

b

4,482,787

 

Waters

     

7,957

b

1,501,088

 

Zoetis

     

50,692

 

4,336,194

 
       

196,413,429

 

Real Estate - 2.9%

         

Alexandria Real Estate Equities

     

11,255

c

1,297,026

 

American Tower

     

46,076

c

7,288,762

 

Apartment Investment & Management, Cl. A

     

16,134

c

707,960

 

AvalonBay Communities

     

14,657

c

2,551,051

 

Boston Properties

     

16,412

c

1,847,171

 

CBRE Group, Cl. A

     

33,614

b

1,345,905

 

Crown Castle International

     

43,842

c

4,762,556

 

Digital Realty Trust

     

21,727

c

2,315,012

 

Duke Realty

     

38,113

c

987,127

 

Equinix

     

8,277

c

2,918,139

 

Equity Residential

     

39,183

c

2,586,470

 

Essex Property Trust

     

7,018

c

1,720,884

 

Extra Space Storage

     

12,919

c

1,168,911

 

Federal Realty Investment Trust

     

7,719

c

911,151

 

HCP

     

49,402

c

1,379,798

 

Host Hotels & Resorts

     

78,594

c

1,310,162

 

15

 

STATEMENT OF INVESTMENTS (continued)

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Real Estate - 2.9% (continued)

         

Iron Mountain

     

29,726

c

963,420

 

Kimco Realty

     

44,462

c

651,368

 

Macerich

     

11,594

c

501,788

 

Mid-America Apartment Communities

     

12,040

c

1,152,228

 

Prologis

     

65,652

c

3,855,085

 

Public Storage

     

15,879

c

3,214,068

 

Realty Income

     

30,170

a,c

1,901,917

 

Regency Centers

     

17,954

c

1,053,541

 

SBA Communications

     

11,899

b,c

1,926,329

 

Simon Property Group

     

32,297

c

5,425,573

 

SL Green Realty

     

9,463

c

748,334

 

UDR

     

27,397

c

1,085,469

 

Ventas

     

37,210

c

2,180,134

 

Vornado Realty Trust

     

18,531

c

1,149,478

 

Welltower

     

39,641

c

2,751,482

 

Weyerhaeuser

     

79,336

c

1,734,285

 
       

65,392,584

 

Retailing - 6.3%

         

Advance Auto Parts

     

7,601

 

1,196,853

 

Amazon.com

     

43,263

b

64,979,728

 

AutoZone

     

2,668

b

2,236,691

 

Best Buy

     

24,827

 

1,314,838

 

Booking Holdings

     

4,892

b

8,426,079

 

CarMax

     

19,225

a,b

1,205,984

 

Dollar General

     

28,287

 

3,057,259

 

Dollar Tree

     

24,686

b

2,229,640

 

eBay

     

96,721

b

2,714,958

 

Expedia Group

     

12,770

 

1,438,540

 

Foot Locker

     

12,212

 

649,678

 

Gap

     

21,479

 

553,299

 

Genuine Parts

     

14,986

 

1,438,956

 

Home Depot

     

119,147

 

20,471,838

 

Kohl's

     

17,145

a

1,137,399

 

L Brands

     

23,228

 

596,263

 

LKQ

     

32,255

b

765,411

 

Lowe's

     

84,734

 

7,826,032

 

Macy's

     

32,850

a

978,273

 

Nordstrom

     

12,475

a

581,460

 

O'Reilly Automotive

     

8,436

b

2,904,768

 

Ross Stores

     

39,535

 

3,289,312

 

Target

     

55,349

 

3,658,015

 

The TJX Companies

     

131,085

 

5,864,743

 

Tiffany & Co.

     

11,067

 

891,004

 

16

 

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Retailing - 6.3% (continued)

         

Tractor Supply

     

12,545

 

1,046,755

 

Ulta Salon Cosmetics & Fragrance

     

5,898

b

1,444,066

 
       

142,897,842

 

Semiconductors & Semiconductor Equipment - 3.7%

         

Advanced Micro Devices

     

91,336

a,b

1,686,063

 

Analog Devices

     

39,376

 

3,379,642

 

Applied Materials

     

103,220

 

3,379,423

 

Broadcom

     

43,742

 

11,122,716

 

Intel

     

481,304

 

22,587,597

 

KLA-Tencor

     

16,410

 

1,468,531

 

Lam Research

     

16,470

 

2,242,720

 

Maxim Integrated Products

     

28,981

 

1,473,684

 

Microchip Technology

     

24,503

a

1,762,256

 

Micron Technology

     

118,369

b

3,755,848

 

NVIDIA

     

64,237

 

8,575,639

 

Qorvo

     

13,732

b

833,944

 

Qualcomm

     

127,202

 

7,239,066

 

Skyworks Solutions

     

18,595

 

1,246,237

 

Texas Instruments

     

101,707

 

9,611,311

 

Xilinx

     

26,783

 

2,281,108

 
       

82,645,785

 

Software & Services - 10.8%

         

Accenture

     

67,050

 

9,454,720

 

Adobe

     

51,258

b

11,596,610

 

Akamai Technologies

     

17,429

b

1,064,563

 

Alliance Data Systems

     

5,143

 

771,861

 

ANSYS

     

9,172

b

1,311,046

 

Autodesk

     

23,305

b

2,997,256

 

Automatic Data Processing

     

46,156

 

6,051,975

 

Broadridge Financial Solutions

     

12,526

 

1,205,628

 

Cadence Design Systems

     

29,610

b

1,287,443

 

Citrix Systems

     

13,780

 

1,411,899

 

Cognizant Technology Solutions, Cl. A

     

60,505

 

3,840,857

 

DXC Technology

     

30,237

 

1,607,701

 

Fidelity National Information Services

     

34,255

 

3,512,850

 

Fiserv

     

42,154

b

3,097,897

 

FleetCor Technologies

     

9,515

b

1,767,126

 

Fortinet

     

15,106

b

1,063,916

 

Gartner

     

9,618

a,b

1,229,565

 

Global Payments

     

16,932

 

1,746,197

 

International Business Machines

     

95,532

 

10,859,122

 

Intuit

     

27,018

 

5,318,493

 

Jack Henry & Associates

     

8,055

 

1,019,119

 

17

 

STATEMENT OF INVESTMENTS (continued)

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Software & Services - 10.8% (continued)

         

Mastercard, Cl. A

     

95,562

 

18,027,771

 

Microsoft

     

814,079

 

82,686,004

 

Oracle

     

271,171

 

12,243,371

 

Paychex

     

33,714

 

2,196,467

 

PayPal Holdings

     

123,861

b

10,415,471

 

Red Hat

     

18,836

b

3,308,355

 

salesforce.com

     

80,496

b

11,025,537

 

Symantec

     

65,265

 

1,233,182

 

Synopsys

     

16,006

b

1,348,345

 

Total System Services

     

17,702

 

1,438,996

 

VeriSign

     

11,384

b

1,688,133

 

Visa, Cl. A

     

185,329

a

24,452,308

 

Western Union

     

48,471

a

826,915

 
       

243,106,699

 

Technology Hardware & Equipment - 5.3%

         

Amphenol

     

31,453

 

2,548,322

 

Apple

     

475,623

 

75,024,772

 

Arista Networks

     

5,463

b

1,151,054

 

Cisco Systems

     

474,432

 

20,557,139

 

Corning

     

84,836

 

2,562,896

 

F5 Networks

     

6,631

b

1,074,421

 

FLIR Systems

     

14,297

 

622,491

 

Hewlett Packard Enterprise

     

153,822

 

2,031,989

 

HP

     

164,983

 

3,375,552

 

IPG Photonics

     

3,960

b

448,628

 

Juniper Networks

     

36,601

 

984,933

 

Keysight Technologies

     

19,551

b

1,213,726

 

Motorola Solutions

     

16,825

 

1,935,548

 

NetApp

     

26,678

 

1,591,876

 

Seagate Technology

     

28,223

a

1,089,126

 

TE Connectivity

     

36,731

 

2,777,966

 

Western Digital

     

31,153

 

1,151,726

 

Xerox

     

22,734

 

449,224

 
       

120,591,389

 

Telecommunication Services - 2.1%

         

AT&T

     

766,560

 

21,877,622

 

CenturyLink

     

101,788

 

1,542,088

 

Verizon Communications

     

435,304

 

24,472,791

 
       

47,892,501

 

Transportation - 2.0%

         

Alaska Air Group

     

12,955

 

788,312

 

American Airlines Group

     

43,966

 

1,411,748

 

CH Robinson Worldwide

     

14,255

 

1,198,703

 

18

 

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Transportation - 2.0% (continued)

         

CSX

     

84,698

 

5,262,287

 

Delta Air Lines

     

66,037

 

3,295,246

 

Expeditors International of Washington

     

17,944

 

1,221,807

 

FedEx

     

25,408

 

4,099,073

 

J.B. Hunt Transport Services

     

9,078

 

844,617

 

Kansas City Southern

     

10,358

 

988,671

 

Norfolk Southern

     

28,784

 

4,304,359

 

Southwest Airlines

     

53,616

 

2,492,072

 

Union Pacific

     

77,396

 

10,698,449

 

United Continental Holdings

     

24,585

b

2,058,502

 

United Parcel Service, Cl. B

     

73,205

 

7,139,684

 
       

45,803,530

 

Utilities - 3.3%

         

AES

     

66,868

 

966,911

 

Alliant Energy

     

24,013

 

1,014,549

 

Ameren

     

25,769

 

1,680,912

 

American Electric Power

     

51,367

 

3,839,170

 

American Water Works

     

18,830

 

1,709,199

 

CenterPoint Energy

     

52,220

 

1,474,171

 

CMS Energy

     

29,823

 

1,480,712

 

Consolidated Edison

     

33,145

 

2,534,267

 

Dominion Resources

     

68,882

 

4,922,308

 

DTE Energy

     

18,823

 

2,076,177

 

Duke Energy

     

74,417

 

6,422,187

 

Edison International

     

34,214

 

1,942,329

 

Entergy

     

19,236

 

1,655,643

 

Evergy

     

28,692

 

1,628,845

 

Eversource Energy

     

33,807

 

2,198,807

 

Exelon

     

100,746

 

4,543,645

 

FirstEnergy

     

51,621

 

1,938,369

 

NextEra Energy

     

50,276

 

8,738,974

 

NiSource

     

38,527

 

976,659

 

NRG Energy

     

31,903

 

1,263,359

 

PG&E

     

54,666

b

1,298,318

 

Pinnacle West Capital

     

11,763

 

1,002,208

 

PPL

     

74,530

 

2,111,435

 

Public Service Enterprise Group

     

53,173

 

2,767,655

 

SCANA

     

15,187

 

725,635

 

Sempra Energy

     

29,122

a

3,150,709

 

Southern

     

107,404

 

4,717,184

 

WEC Energy Group

     

32,730

 

2,266,880

 

19

 

STATEMENT OF INVESTMENTS (continued)

               
 

Description

     

Shares

 

Value ($)

 

Common Stocks - 98.1% (continued)

         

Utilities - 3.3% (continued)

         

Xcel Energy

     

54,054

 

2,663,241

 
       

73,710,458

 

Total Common Stocks (cost $855,176,134)

     

2,218,356,989

 
       

Principal Amount ($)

     

Short-Term Investments - .1%

         

U.S. Treasury Bills - .1%

         

2.39%, 3/7/19
(cost $2,469,479)

     

2,480,000

d,e

2,469,332

 
   

1-Day
Yield (%)

 

Shares

     

Investment Companies - 2.0%

         

Registered Investment Companies - 2.0%

         

Dreyfus Institutional Preferred Government Plus Money Market Fund
(cost $44,784,965)

 

2.32

 

44,784,965

f

44,784,965

 
               

Investment of Cash Collateral for Securities Loaned - .0%

         

Registered Investment Companies - .0%

         

Dreyfus Institutional Preferred Government Money Market Fund, Institutional Shares
(cost $528,028)

 

2.69

 

528,028

f

528,028

 

Total Investments (cost $902,958,606)

 

100.2%

 

2,266,139,314

 

Liabilities, Less Cash and Receivables

 

(.2%)

 

(4,230,212)

 

Net Assets

 

100.0%

 

2,261,909,102

 

a Security, or portion thereof, on loan. At December 31, 2018, the value of the fund’s securities on loan was $52,565,954 and the value of the collateral held by the fund was $53,207,486, consisting of cash collateral of $528,028 and U.S. Government & Agency securities valued at $52,679,458.

b Non-income producing security.

c Investment in real estate investment trust.

d Held by a counterparty for open exchange traded derivative contracts.

e Security is a discount security. Income is recognized through the accretion of discount.

f Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.

20

 

   

Portfolio Summary (Unaudited)

Value (%)

Information Technology

19.7

Health Care

15.2

Financials

13.2

Communication Services

9.9

Consumer Discretionary

9.7

Industrials

9.0

Consumer Staples

7.3

Energy

5.2

Utilities

3.3

Real Estate

2.9

Materials

2.7

Investment Companies

2.0

Government

.1

 

100.2

 Based on net assets.

See notes to financial statements.

21

 

STATEMENT OF INVESTMENTS IN AFFILIATED ISSUERS

             

Registered Investment Company

Value
12/31/17($)

Purchases($)

Sales($)

Value
12/31/18($)

Net
Assets(%)

Dividends/
Distributions($)

Dreyfus Institutional Preferred Government Plus Money Market Fund

39,341,583

328,753,987

323,310,605

44,784,965

2.0

375,452

Dreyfus Institutional Preferred Government Money Market Fund, Institutional Shares

7,574,859

34,335,351

41,382,182

528,028

.0

-

Total

46,916,442

363,089,338

364,692,787

45,312,993

2.0

375,452

See notes to financial statements.

22

 

STATEMENT OF FUTURES
December 31, 2018

             

Description

Number of
Contracts

Expiration

Notional
Value ($)

Value ($)

Unrealized Appreciation ($)

 

Futures Long

   

Standard & Poor's 500 E-mini

391

3/19

48,903,824

48,976,660

72,836

 

Gross Unrealized Appreciation

 

72,836

 

See notes to financial statements.

23

 

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2018

             

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments
(including securities on loan, valued at $52,565,954)—Note 1(b):

 

 

 

Unaffiliated issuers

857,645,613

 

2,220,826,321

 

Affiliated issuers

 

45,312,993

 

45,312,993

 

Dividends and securities lending income receivable

 

2,656,036

 

Receivable for investment securities sold

 

610,647

 

Receivable for futures variation margin—Note 4

 

388,891

 

Receivable for shares of Common Stock subscribed

 

370,244

 

Cash collateral held by broker—Note 4

 

197

 

Prepaid expenses

 

 

 

 

9,195

 

 

 

 

 

 

2,270,174,524

 

Liabilities ($):

 

 

 

 

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

 

 

 

528,835

 

Payable for shares of Common Stock redeemed

 

5,483,776

 

Payable for investment securities purchased

 

1,499,425

 

Liability for securities on loan—Note 1(b)

 

528,028

 

Directors fees and expenses payable

 

38,213

 

Accrued expenses

 

 

 

 

187,145

 

 

 

 

 

 

8,265,422

 

Net Assets ($)

 

 

2,261,909,102

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

804,834,010

 

Total distributable earnings (loss)

 

 

 

 

1,457,075,092

 

Net Assets ($)

 

 

2,261,909,102

 

 

       

Net Asset Value Per Share

Initial Shares

Service Shares

 

Net Assets ($)

2,089,484,895

172,424,207

 

Shares Outstanding

42,658,579

3,515,505

 

Net Asset Value Per Share ($)

48.98

49.05

 

       

See notes to financial statements.

     

24

 

STATEMENT OF OPERATIONS
Year Ended December 31, 2018

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Cash dividends (net of $2,095 foreign taxes withheld at source):

 

Unaffiliated issuers

 

 

48,370,484

 

Affiliated issuers

 

 

375,452

 

Income from securities lending—Note 1(b)

 

 

91,443

 

Interest

 

 

21,962

 

Total Income

 

 

48,859,341

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

6,237,780

 

Distribution fees—Note 3(b)

 

 

502,807

 

Directors’ fees and expenses—Note 3(d)

 

 

223,478

 

Prospectus and shareholders’ reports

 

 

123,139

 

Professional fees

 

 

90,833

 

Loan commitment fees—Note 2

 

 

57,568

 

Shareholder servicing costs—Note 3(c)

 

 

4,762

 

Interest expense—Note 2

 

 

2,938

 

Miscellaneous

 

 

106,975

 

Total Expenses

 

 

7,350,280

 

Investment Income—Net

 

 

41,509,061

 

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

 

 

Net realized gain (loss) on investments

131,119,464

 

Net realized gain (loss) on futures

(1,503,792)

 

Net Realized Gain (Loss)

 

 

129,615,672

 

Net unrealized appreciation (depreciation) on investments

 

 

(267,761,616)

 

Net unrealized appreciation (depreciation) on futures

 

 

(250,763)

 

Net Unrealized Appreciation (Depreciation)

 

 

(268,012,379)

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

(138,396,707)

 

Net (Decrease) in Net Assets Resulting from Operations

 

(96,887,646)

 

             

See notes to financial statements.

         

25

 

STATEMENT OF CHANGES IN NET ASSETS

                   

 

 

 

 

Year Ended December 31,

 

 

 

 

2018

 

2017a

 

Operations ($):

 

 

 

 

 

 

 

 

Investment income—net

 

 

41,509,061

 

 

 

40,201,868

 

Net realized gain (loss) on investments

 

129,615,672

 

 

 

58,319,174

 

Net unrealized appreciation (depreciation)
on investments

 

(268,012,379)

 

 

 

364,176,835

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

(96,887,646)

 

 

 

462,697,877

 

Distributions ($):

 

Distributions to shareholders:

 

 

 

 

 

 

 

 

Initial Shares

 

 

(91,983,099)

 

 

 

(87,542,630)

 

Service Shares

 

 

(7,398,303)

 

 

 

(7,813,070)

 

Total Distributions

 

 

(99,381,402)

 

 

 

(95,355,700)

 

Capital Stock Transactions ($):

 

Net proceeds from shares sold:

 

 

 

 

 

 

 

 

Initial Shares

 

 

330,404,029

 

 

 

330,265,209

 

Service Shares

 

 

6,256,745

 

 

 

5,490,066

 

Distributions reinvested:

 

 

 

 

 

 

 

 

Initial Shares

 

 

91,983,099

 

 

 

87,542,630

 

Service Shares

 

 

7,398,303

 

 

 

7,813,070

 

Cost of shares redeemed:

 

 

 

 

 

 

 

 

Initial Shares

 

 

(496,870,696)

 

 

 

(410,263,974)

 

Service Shares

 

 

(34,698,540)

 

 

 

(36,621,638)

 

Increase (Decrease) in Net Assets
from Capital Stock Transactions

(95,527,060)

 

 

 

(15,774,637)

 

Total Increase (Decrease) in Net Assets

(291,796,108)

 

 

 

351,567,540

 

Net Assets ($):

 

Beginning of Period

 

 

2,553,705,210

 

 

 

2,202,137,670

 

End of Period

 

 

2,261,909,102

 

 

 

2,553,705,210

 

Capital Share Transactions (Shares):

 

Initial Shares

 

 

 

 

 

 

 

 

Shares sold

 

 

6,237,412

 

 

 

6,720,657

 

Shares issued for distributions reinvested

 

 

1,769,164

 

 

 

1,811,821

 

Shares redeemed

 

 

(9,197,291)

 

 

 

(8,326,728)

 

Net Increase (Decrease) in Shares Outstanding

(1,190,715)

 

 

 

205,750

 

Service Shares

 

 

 

 

 

 

 

 

Shares sold

 

 

115,243

 

 

 

111,594

 

Shares issued for distributions reinvested

 

 

142,206

 

 

 

162,007

 

Shares redeemed

 

 

(640,906)

 

 

 

(745,122)

 

Net Increase (Decrease) in Shares Outstanding

(383,457)

 

 

 

(471,521)

 

                   

Distributions to shareholders include $37,288,688 Initial shares and $2,942,855 Service shares of distributions from net investment income and $50,253,942 Initial shares and $4,870,215 Service shares distributions from net realized gains. Undistributed investment income—net was $703,875 in 2017 and is no longer presented as a result of the adoption of SEC’s Disclosure Update and Simplification Rule.

 


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

 

2018

2017

2016

2015

2014

Per Share Data ($):

           

Net asset value,
beginning of period

 

53.48

45.86

43.42

44.99

40.84

Investment Operations:

           

Investment income—neta

 

.89

.85

.83

.80

.74

Net realized and unrealized
gain (loss) on investments

 

(3.27)

8.79

4.04

(.32)

4.65

Total from
Investment Operations

 

(2.38)

9.64

4.87

.48

5.39

Distributions:

           

Dividends from
investment income—net

 

(.90)

(.85)

(.88)

(.81)

(.75)

Dividends from net realized
gain on investments

 

(1.22)

(1.17)

(1.55)

(1.24)

(.49)

Total Distributions

 

(2.12)

(2.02)

(2.43)

(2.05)

(1.24)

Net asset value, end of period

 

48.98

53.48

45.86

43.42

44.99

Total Return (%)

 

(4.63)

21.53

11.71

1.11

13.42

Ratios/Supplemental Data (%):

         

Ratio of total expenses
to average net assets

 

.27

.27

.27

.27

.27

Ratio of net expenses
to average net assets

 

.27

.27

.27

.27

.27

Ratio of net investment income
to average net assets

 

1.65

1.71

1.91

1.81

1.76

Portfolio Turnover Rate

 

3.69

2.90

3.87

3.74

1.59

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

 

2,089,485

2,344,944

2,001,468

1,880,694

1,955,325

a Based on average shares outstanding.

See notes to financial statements.

27

 

FINANCIAL HIGHLIGHTS (continued)

             
     
     
   

Year Ended December 31,

Service Shares

 

2018

2017

2016

2015

2014

Per Share Data ($):

           

Net asset value, beginning of period

 

53.54

45.91

43.47

45.03

40.89

Investment Operations:

           

Investment income—neta

 

.76

.72

.72

.69

.64

Net realized and unrealized
gain (loss) on investments

 

(3.27)

8.81

4.04

(.31)

4.63

Total from
Investment Operations

 

(2.51)

9.53

4.76

.38

5.27

Distributions:

           

Dividends from
investment income—net

 

(.76)

(.73)

(.77)

(.70)

(.64)

Dividends from net realized
gain on investments

 

(1.22)

(1.17)

(1.55)

(1.24)

(.49)

Total Distributions

 

(1.98)

(1.90)

(2.32)

(1.94)

(1.13)

Net asset value, end of period

 

49.05

53.54

45.91

43.47

45.03

Total Return (%)

 

(4.85)

21.22

11.44

.86

13.10

Ratios/Supplemental Data (%):

           

Ratio of total expenses
to average net assets

 

.52

.52

.52

.52

.52

Ratio of net expenses
to average net assets

 

.52

.52

.52

.52

.52

Ratio of net investment income
to average net assets

 

1.40

1.46

1.66

1.56

1.50

Portfolio Turnover Rate

 

3.69

2.90

3.87

3.74

1.59

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

 

172,424

208,762

200,670

203,044

234,542

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 S&P 500® 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. Effective January 31, 2018, BNY Mellon Asset Management North America Corporation, a wholly-owned subsidiary of BNY Mellon and an affiliate of Dreyfus, serves as the fund’s index manager. BNY Mellon Asset Management North America Corporation is a specialist multi-asset investment manager formed by the combination of certain BNY Mellon affiliated investment management firms, including Mellon Capital Management Corporation which serviced as the fund’s index manager prior to January 31, 2018.

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 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.

29

 

NOTES TO FINANCIAL STATEMENTS (continued)

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

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

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

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

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

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

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

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

30

 

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.

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 is engaged 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 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 accurately reflect 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 such securities are generally categorized within Level 3 of the fair value hierarchy.

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.

31

 

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the inputs used as of December 31, 2018 in valuing the fund’s investments:

         

 

Level 1 -
Unadjusted
Quoted Prices

Level 2 – Other
Significant
Observable
Inputs

Level 3 -
Significant
Unobservable
Inputs

Total

Assets ($)

       

Investment in Securities:

Equity Securities-
Common Stocks

2,218,356,989

-

-

2,218,356,989

Investment Companies

45,312,993

-

-

45,312,993

U.S. Treasury

-

2,469,332

-

2,469,332

Other Financial Instruments:

Futures††

72,836

-

-

72,836

 See Statement of Investments for additional detailed categorizations.

†† Amount shown represents unrealized appreciation at period end, but only variation margin on exchanged traded and centrally cleared derivatives are reported in the Statement of Assets and Liabilities..

At December 31, 2018, there were no transfers between levels of the fair value hierarchy. It is the fund’s policy to recognize transfers between levels at the end of the reporting period.

(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 unreturned securities and is subrogated to the fund’s rights against the

32

 

borrower and the collateral. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis. During the period ended December 31, 2018, The Bank of New York Mellon earned $17,071 from lending portfolio securities, pursuant to the securities lending agreement.

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

(d) Dividends and distributions to shareholders: Dividends and distributions 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 and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended December 31, 2018, 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, 2018, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended December 31, 2018 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At December 31, 2018, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $662,869, undistributed capital gains $126,481,341 and unrealized appreciation $1,329,784,697.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2018 and December 31, 2017 were as

33

 

NOTES TO FINANCIAL STATEMENTS (continued)

follows: ordinary income $45,258,635 and $42,151,900, and long-term capital gains $54,122,767 and $53,203,800, respectively.

(f) New Accounting Pronouncements: In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The update provides guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 will be effective for annual periods beginning after December 15, 2019. Management is currently assessing the potential impact of these changes to future financial statements.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed long-term open-end funds in a $1.030 billion unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $830 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is in amount equal to $200 million and is available only to the Dreyfus Floating Rate Income Fund, a series of The Dreyfus/Laurel Funds, Inc. Prior to October 3, 2018, the unsecured credit facility with Citibank, N.A. was $830 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended December 31, 2018 was approximately $92,900 with a related weighted average annualized interest rate of 3.16%.

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 BNY Mellon Asset Management North America Corporation a monthly index-management fee at the annual rate of .095%

34

 

of the value of the fund’s average daily net assets. Pursuant to the Index Agreement, BNY Mellon Asset Management North America Corporation pays the Custodian for its services to the fund.

(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, 2018, Service shares were charged $502,807 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, 2018, Initial shares were charged 3,191 pursuant to the Shareholder 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, if any, 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, 2018, the fund was charged $1,499 for transfer agency services. These fees are included in Shareholder servicing costs in the Statement of Operations.

During the period ended December 31, 2018, the fund was charged $12,774 for services performed by the Chief Compliance Officer and his staff. These fees are included in Miscellaneous in the Statement of Operations.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees

35

 

NOTES TO FINANCIAL STATEMENTS (continued)

$481,792, Distribution Plan fees $37,771, Chief Compliance Officer fees $6,289 and transfer agency fees $2,983.

(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 futures, during the period ended December 31, 2018, amounted to $92,621,654 and $251,141,691, 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, 2018 is discussed below.

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 futures in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a 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 futures since they are exchange traded, and the exchange guarantees the futures against default. Futures open at December 31, 2018 are set forth in the Statement of Futures.

The following summarizes the average market value of derivatives outstanding during the period ended December 31, 2018:

     

 

 

Average Market Value ($)

Equity futures

 

26,831,223

     

At December 31, 2018, the cost of investments for federal income tax purposes was $936,354,617; accordingly, accumulated net unrealized appreciation on investments was $1,329,784,697, consisting of

36

 

$1,417,396,184 gross unrealized appreciation and $87,611,487 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 State Law Cases: The Tribune LBO was executed in two-steps - a voluntary tender offer in June 2007, and a mandatory go-private merger in December 2007. In 2008, approximately one year after the LBO was concluded, Tribune filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code (the “Code”). Beginning in June 2011, Tribune creditors filed complaints in various courts throughout the country, which alleged 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 (collectively, “the state law cases”). The state law cases were consolidated for pre-trial proceedings in the United States District Court for the Southern District of New York, in a case styled In re Tribune Company Fraudulent Conveyance Litigation (S.D.N.Y. Nos. 11-md-2296 and 12-mc-2296 (RJS) (“Tribune MDL”)). On November 6, 2012, the defendants filed a motion to dismiss most of the cases in the Tribune MDL. On September 23, 2013, the Court dismissed 50 cases, including at least one case in which the fund was a defendant. On September 30, 2013, plaintiffs appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit. On March 29, 2016, the Second Circuit affirmed the dismissal on the ground that the plaintiffs’ claims were preempted by section 546(e) of the Code, which exempts qualified transfers that were made “… by or to (or for the benefit of),” among other specified entities, “a financial institution …” On September 9, 2016, Plaintiffs filed a petition for certiorari to the U.S. Supreme Court.

During the pendency of the plaintiffs’ cert. petition, the Supreme Court agreed to hear the appeal of Merit Management Group, LP v. FTI Consulting, Inc. (“Merit Mgmt.”), a Seventh Circuit case that concerned the scope of Section 546(e) of the Code. In contrast to the Second Circuit, the Seventh Circuit had held that Section 546(e) does not exempt qualified transfers from avoidance that passed through “financial institutions.”

On February 27, 2018, the Supreme Court affirmed the Seventh Circuit’s decision. Noting that “the parties … d[id] not contend that either the debtor or petitioner … qualified as a ‘financial institution,’” the Court

37

 

NOTES TO FINANCIAL STATEMENTS (continued)

declined to address the effect that such an assertion would have had on the application Section 546(e). While the Merit Mgmt. decision likely will make it more difficult for some defendants to assert a defense under Section 546(e), the decision appears to be less consequential for registered investment company defendants, such as the Dreyfus Fund defendants, which are specifically defined as “financial institutions” under Section 101(22)(B) of the Code.

On April 3, 2018, Justices Kennedy and Thomas issued a Statement stating that “consideration of [the petition for certiorari filed by the Tribune plaintiffs] will be deferred for an additional period of time” to allow the Second Circuit or the District Court to consider whether to vacate the earlier judgment or provide other relief in light of Merit Mgmt. On April 10, 2018, the plaintiffs/appellants moved the Second Circuit to recall its mandate, vacate its decision, and remand the case to the district court for further proceedings. The defendants’ filed an opposition brief on April 20, 2018; plaintiffs/appellants filed their reply on April 27, 2018. On May 15, 2018, the Second Circuit issued an Order stating that “the mandate in this case is recalled in anticipation of further panel review.” As of February 6, 2019, there has been no subsequent activity in the state law cases.

The FitzSimons Litigation: On November 1, 2010, a case styled The Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, et al., Adv. Pro. No-10-54010(KJC) was filed in the United States Bankruptcy Court for the District of Delaware. (“the FitzSimons Litigation”). The case was subsequently transferred to the Tribune MDL. Count One of the multi-count Complaint sought recovery of alleged “fraudulent conveyances” from more than 5,000 Tribune shareholders (“Shareholder Defendants”), including the fund, that participated in the Tribune LBO. On January 10, 2013, Mark S. Kirchner, as Litigation Trustee for the Tribune Litigation Trust, became the successor plaintiff to the Creditors Committee. 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, which did not change the legal basis of the claims against the Shareholder Defendants. On May 23, 2014, the defendants filed a motion to dismiss Count One against the Shareholder Defendants, which the Court granted on January 9, 2017. The plaintiff then sought leave to file an interlocutory appeal. On February 23, 2017, the Court entered an order stating that it would permit the plaintiff to file an interlocutory appeal after the Court decided other pending motions.

On March 8, 2018, following the U.S. Supreme Court’s decision in Merit Management, the Plaintiff in the FitzSimons Litigation submitted a letter to

38

 

the Court seeking permission to file another amended complaint or a motion for leave to amend in order to add a claim of constructive fraudulent transfer. On June 18, 2018, the Court issued an order staying the Trustee’s request pending further action by the Second Circuit in the state law cases. The Court also ordered counsel for all of the parties to file a joint letter “indicating how they wish to proceed with respect to a potential global resolution of this multi-district litigation.” On July 9, 2018, the parties submitted the joint letter requested by the Court expressing their views regarding a potential mediation. On November 30, 2018, the Court issued an Opinion and Order resolving the remaining motions by dismissing most, but not all, of the claims asserted against the individual defendants. After Judge Richard J. Sullivan issued the Opinion and Order, the U.S. Judicial Panel on Multidistrict Litigation reassigned the entire litigation to Judge Denise Cote. As of February 6, 2019, there has been no subsequent activity in FitzSimons Litigation.

At this stage in the proceedings, management does not believe that a loss is probable and, in any event, is unable to reasonably estimate the possible loss that may result.

39

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Dreyfus Stock Index Fund, Inc. (the “Fund”), including the statements of investments, investments in affiliated issuers and futures, as of December 31, 2018, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund at December 31, 2018, 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 its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Dreyfus investment companies since at least 1957, but we are unable to determine the specific year.

New York, New York
February 11, 2019

40

 

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the fund hereby reports 100% of the ordinary dividends paid during the fiscal year ended December 31, 2018 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in early 2019 of the percentage applicable to the preparation of their 2018 income tax returns. Also, the fund hereby reports $.0770 per share as a short-term capital gain distribution and $1.1472 per share as a long-term capital gain distribution paid on March 29, 2018.

41

 

BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (75)
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: 122

———————

Peggy C. Davis (75)
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: 45

———————

David P. Feldman (79)
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: 31

———————

Joan Gulley (71)
Board Member (2017)
Principal Occupation During Past 5 Years:

· PNC Financial Services Group, Inc.(1993-2014), Executive Vice President and Chief Human Resources Officer and Executive Committee Member (2008-2014)

No. of Portfolios for which Board Member Serves: 52

———————

42

 

Ehud Houminer (78)
Board Member (1993)
Principal Occupation During Past 5 Years:

· Board of Overseers at the Columbia Business School, Columbia University (1992-present)

· Trustee, Ben Gurion University

No. of Portfolios for which Board Member Serves: 52

———————

Lynn Martin (79)
Board Member (2012)
Principal Occupation During Past 5 Years:

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

No. of Portfolios for which Board Member Serves: 31

———————

Robin A. Melvin (55)
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; board member since 2013)

No. of Portfolios for which Board Member Serves: 99

———————

Dr. Martin Peretz (79)
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)

· Lecturer at Harvard University (1968-2010)

No. of Portfolios for which Board Member Serves: 31

———————

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
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 Chief Executive Officer of MBSC Securities Corporation since August 2016. He is an officer of 62 investment companies (comprised of 122 portfolios) managed by the Manager. He is 60 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 and Associate General Counsel and Managing Director of BNY Mellon since June 2015; from June 2005 to June 2015, he served in various capacities with Deutsche Bank – Asset & Wealth Management Division, including as Director and Associate General Counsel, and Chief Legal Officer of Deutsche Investment Management Americas Inc. from June 2012 to May 2015. He is an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since June 2015.

JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.

Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since December 1996.

SONALEE CROSS, Vice President and Assistant Secretary since March 2018.

Counsel of BNY Mellon since October 2016; Associate at Proskauer Rose LLP from April 2016 to September 2016; Attorney at EnTrust Capital from August 2015 to February 2016; Associate at Sidley Austin LLP from September 2013 until August 2015. She is an officer of 63 investment companies (comprised of 147 portfolios) managed by Dreyfus. She is 31 years old and has been an employee of the Manager since October 2016.

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

Managing Counsel of BNY Mellon since December 2017, from March 2013 to December 2017, Senior Counsel of BNY Mellon. She is an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. She is 43 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 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since October 1990.

NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.

Counsel of BNY Mellon since May 2016; Attorney at Wildermuth Endowment Strategy Fund/Wildermuth Advisory, LLC from November 2015 until May 2016; Assistant General Counsel at RCS Advisory Services from July 2014 until November 2015; Associate at Sutherland, Asbill & Brennan from January 2013 until January 2014. She is an officer of 63 investment companies (comprised of 147 portfolios) managed by Dreyfus. She is 33 years old and has been an employee of the Manager since May 2016.

JAMES WINDELS, Treasurer since September 2003.

Director – Mutual Fund Accounting of the Manager, and an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 60 years old and has been an employee of the Manager since April 1985.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since April 1991.

ROBERT S. ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Dreyfus Financial Reporting of the Manager, and an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 54 years old and has been an employee of the Manager since October 1988.

44

 

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since June 1989.

ROBERT SVAGNA, Assistant Treasurer since September 2003.

Senior Accounting Manager – Fixed Income and Equity Funds of the Manager, and an officer of 63 investment companies (comprised of 147 portfolios) managed by the Manager. He is 51 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, the Dreyfus Family of Funds and BNY Mellon Funds Trust (63 investment companies, comprised of 147 portfolios). He is 61 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.

CARIDAD 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 57 investment companies (comprised of 141 portfolios) managed by the Manager. She is 50 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

BNY Mellon Asset Management
North America Corporation

BNY Mellon Center
One Boston Place
Boston, MA 02108-4408

Custodian

The Bank of New York Mellon
240 Greenwich 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 1-800-258-4260 or 1-800-258-4261

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, D.C. 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.

   

© 2019 MBSC Securities Corporation
0763AR1218

 


 

 

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").  Mr. Feldman is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4.             Principal Accountant Fees and Services.

 

(a)  Audit Fees.  The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $34,702 in 2017 and $35,222 in 2018.

 

(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 $11,104 in 2017 and $10,016 in 2018.  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 2017 and $0 in 2018.

 

(c)  Tax Fees.  The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $3,503 in 2017 and $4,482 in 2018.  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 2017 and $0 in 2018 

 


 

(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 $24 in 2017 and $26 in 2018.  These services consisted of a review of the Registrant's anti-money laundering program.

 

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were $0 in 2017 and $0 in 2018. 

 

(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 $31,379,272 in 2017 and $53,294,289 in 2018. 

 

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.           Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable. 

Item 13.           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 8, 2019

 

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 8, 2019

 

By:       /s/ James Windels

            James Windels

            Treasurer

 

Date:    February 8, 2019

 

 

 


 

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 8, 2019


 

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 8, 2019

 

EX-99.906 CERT 4 exhibit906-763.htm CERTIFICATION REQUIRED BY SECTION 906 exhibit906-763.htm - Generated by SEC Publisher for SEC Filing

[EX-99.906CERT]

Exhibit (b)

 

 

SECTION 906 CERTIFICATIONS

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

 

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

 

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

 

                                                                        By:       /s/ Bradley J. Skapyak

                                                                        Bradley J. Skapyak

                                                                                    President

                                                                        Date:    February 8, 2019

 

 

                                                                        By:       /s/ James Windels

                                                                                    James Windels

                                                                                    Treasurer

 

                                                                        Date:    February 8, 2019

 

 

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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