-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VxMll7/LBmnCDKFU/+cJA+TYsrRidrjZlqbPON8wZRQLjgT6gfHzrk2DGlb5XdE4 tqixSLwAYI7YS62CI31ZJQ== 0000846800-97-000001.txt : 19970226 0000846800-97-000001.hdr.sgml : 19970226 ACCESSION NUMBER: 0000846800-97-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970225 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS LIFE & ANNUITY INDEX FUND INC CENTRAL INDEX KEY: 0000846800 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05719 FILM NUMBER: 97542678 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: UNIONDALE STATE: NY ZIP: 11566 BUSINESS PHONE: 2129226785 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 N-30D 1 ANNUAL REPORT Dreyfus Stock Index Fund Annual Report December 31, 1996 Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Letter to Shareholders Dear Shareholder: We are pleased to inform you that Dreyfus Stock Index Fund produced a total return of 22.54% for the 12 months ended December 31, 1996, based on net asset value.* This compares with a total return of 22.95% for the Standard & Poor's 500 Composite Stock Price Index (the S&P 500), which serves as the benchmark for the Fund.** The difference is accounted for by transaction fees and other Fund expenses. Stocks of the kind represented in the S&P 500, which is dominated by large capitalization companies, had a particularly good year. Small companies, as measured by the Russell 2000 Index, did not move upward as strongly. That Index provided a total return of 16.50% for the year.*** ECONOMIC REVIEW The much-heralded "Goldilocks" phase of the U.S. economy--not too hot and not too cold--may be ending. First, the slowdown to 2% GDP growth seems to have been confined to the summer and recent data depict faster growth for the fourth quarter of 1996. Second, inflation has begun a cyclical climb, although there is yet little linkage to the tight labor market. The economy is operating with very little slack near the close of its sixth year of expansion. Hence, the resumption of faster growth quickly restored a rising trend to bond yields and pulled short-term rates above their December lows. As yet there is little expectation of tighter Federal Reserve policy, although sustained above-trend growth would probably justify higher rates during 1997. Modest tightening in 1997 would in our opinion help allay inflation fears and sustain another year of economic growth. Although the economy grew near its 2.4% long-term trend rate in 1996, it was nonetheless quite volatile during the year. After a strong first half, and then the summer slowdown, the return to faster growth late in the year is not broad- based. Strong sectors are in manufacturing, exports, services and construction. By contrast, some retailers found Christmas sales disappointing and capital goods orders are mixed. However, inventories are quite lean and this tilts the odds towards yet another year of growth in 1997. While corporate profit growth slowed in 1996, profits still tended to surprise on the upside and should maintain steady growth in 1997 too. Accelerating wage growth in 1996 did not fuel higher prices. And surging energy prices have failed to lift inflation elsewhere. Indeed, core inflation (excluding food and energy) decelerated last year. The general price structure has so far ignored the higher oil price, responding to it as temporary. However, oil prices have been rising now for a year and, at some point, their ability to raise the overall price level may become worrisome, especially if the Fed finds them significant. Both long-term and short-term interest rates were quite volatile in 1996. The strength of the economy prompted rising rates through summer's end, but bond yields then fell 90 basis points after the economy slowed. That period of low rates may have ended now that faster growth is again apparent. We believe the economy has reverted to a period of growth above the long-term average. Key issues are whether faster growth will fuel higher inflation this time and at what point rising oil prices would disturb price stability. The economy will shortly begin a seventh expansion year and continued volatility in growth and in sentiment is likely. MARKET OVERVIEW The stock market in 1996 was a mixture of agony and ecstasy, with the accent for most of the year on the more desirable of those two alternatives. By the end of the year, the Standard & Poor's 500 Composite Stock Price Index had registered a gain of 22.95%, while the blue chip Dow Jones Industrial Average ("DJIA") gained 28.91%.+ The road leading to those impressive year-end gains was not a smooth one, however. The market year began haltingly, in the wake of shaky business conditions at the end of the previous year. As 1996 unfolded, however, the market picked up steam. The economy took on characteristics that continued for much of the year--low inflation, moderate growth and relatively low interest rates. This was a combination that investors liked, perhaps too much. By midyear, satisfaction with the economy turned into fear that economic growth might be overdone. The prevailing nervousness about potential inflation served to boost interest rates temporarily, without the need for Federal Reserve intervention. This was a temporary setback for large capitalization stocks, but more damaging to Nasdaq issues and particularly to the smaller capitalization stocks measured by the Russell 2000 Index. As summer turned into fall, interest rates eased and inflation remained at bay. The benign economic environment allowed many stocks to resume their upward course, causing a string of record-breaking performances by the DJIA and other broad market indexes. In mid-fall the prospect that government would continue divided in Washington, with a Democratic President and a Republican-controlled Congress, appeared to be another plus factor for the market. Stocks continued to surge, hardly pausing for breath when Chairman Alan Greenspan raised a caution signal in early December by referring to "irrational exuberance" in the equity markets. Stock market veterans issued a stream of warnings that what goes up so strongly and consistently must, at some point, come down. Nonetheless, a fairly steady flow of new money coming into stocks from people putting money aside for retirement seemed to be fueling the boom. While at the very end of the year, caution caused a softening of stock prices, which backed away from the year's record of 6560.91 on the DJIA, that record was surpassed in early 1997, when the average surpassed 6700. Among the best performing groups for 1996 were oil drillers, semi-conductors, computers, financial enterprises and consumer nondurables. Corporate earnings were very strong for much of the year, but showed signs of flagging as the year wore on. This raised questions in the minds of many market observers whether the scorching pace of the past year could be maintained. We appreciate your investment and your confidence in the Dreyfus Corporation. Sincerely, Steven A. Falci, CFA Portfolio Manager January 20, 1997 New York, N.Y. * Total return includes reinvestment of dividends and any capital gains paid. ** SOURCE: LIPPER ANALYTICAL SERVICES, INC.--Reflects the reinvestment of income dividends and, where applicable, capital gain distributions. The Standard & Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index of U.S. stock market performance. *** The Russell 2000 Index is a widely accepted unmanaged index of small cap stock performance. + The Dow Jones Industrial Average (DJIA) is a price weighted average of 30 actively traded blue chip stocks. Dreyfus Stock Index Fund December 31, 1996 - -------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS STOCK INDEX FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX INSERT PLOT POINTS HERE *Source: Lipper Analytical Services, Inc. Average Annual Total Returns - -------------------------------------------------------------------------------- One Year Ended Five Years Ended From Inception (9/29/89) December 31, 1996 December 31, 1996 to December 31, 1996 22.54% 14.64% 13.69% Past performance is not predictive of future performance. The Fund's performance does not reflect the deduction of additional charges applicable to separate accounts of participating insurance companies using the Fund as an underlying investment. The above graph compares a $10,000 investment made in Dreyfus Stock Index Fund on 9/29/89 (Inception Date) to a $10,000 investment made in the Standard & Poor's 500 Composite Stock Price Index on that date. For comparative purposes, the value of the Index on 9/30/89 is used as the beginning value on 9/29/89. All dividends and capital gain distributions are reinvested. The Fund's performance shown in the line graph takes into account all applicable fees and expenses. The Standard & Poor's 500 Composite Stock Price Index is a widely accepted, unmanaged index of overall stock market performance, which does not take into account charges, fees and other expenses. 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. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments December 31, 1996 Shares COMMON STOCKS--91.6% Value ---------- ------------ Basic Industries--5.2% 14,700 Air Products & Chemicals... $ 1,016,137 17,200 Alco Standard.............. 887,950 5,400 Armstrong World Industries. 375,300 13,800 Avery Dennison............. 488,175 4,000 Ball....................... 104,000 6,900 Bemis...................... 254,437 6,400 Boise Cascade.............. 203,200 3,700 Centex..................... 139,212 12,500 Champion International..... 540,625 16,900 Crown Cork & Seal.......... 918,937 32,000 Dow Chemical............... 2,508,000 74,100 duPont (E.I.) de Nemours... 6,993,187 10,300 Eastman Chemical........... 569,075 4,900 (a)FMC........................ 343,612 11,000 Fluor...................... 690,250 12,000 Georgia Pacific............ 864,000 7,100 Goodrich (B.F.)............ 287,550 11,700 Grace (W.R.)............... 605,475 8,300 Great Lakes Chemical....... 388,025 13,500 Hercules................... 583,875 39,600 International Paper........ 1,598,850 11,300 James River................ 374,312 37,200 Kimberly-Clark............. 3,543,300 14,300 Louisiana Pacific.......... 302,087 6,900 Mead....................... 401,062 55,000 Minnesota Mining & Manufacturing............ 4,558,125 77,344 Monsanto................... 3,006,748 18,700 Morton International....... 762,025 8,900 Nalco Chemical............. 321,512 43,300 Occidental Petroleum....... 1,012,137 24,200 PPG Industries............. 1,358,225 3,700 Potlach.................... 159,100 20,600 Praxair.................... 950,175 8,400 Rohm & Haas................ 685,650 11,300 Sherwin-Williams........... 632,800 6,600 Sigma-Aldrich.............. 412,087 13,000 Stone Container............ 193,375 7,300 Temple-Inland.............. 395,112 9,200 Union Camp................. 439,300 16,800 Union Carbide.............. 686,700 13,400 Westvaco................... 385,250 26,100 Weyerhaeuser............... 1,236,487 7,300 Willamette Industries...... 508,262 ------------- 42,683,703 ------------- Capital Goods--21.3% 28,900 AMP........................ 1,109,037 18,000 (a)Advanced Micro Devices..... 463,500 5,900 Alexander & Alexander Services 102,512 22,932 Allegheny Teledyne......... 527,436 Capital Goods (continued) 37,200 AlliedSignal............... $ 2,492,400 16,000 (a)Amdahl..................... 194,000 22,400 American Brands............ 1,111,600 8,000 (a)Andrew..................... 424,500 16,400 Apple Computer............. 342,350 23,700 (a)Applied Materials.......... 851,718 6,000 Autodesk................... 168,000 38,200 Automatic Data Processing.. 1,637,825 25,500 (a)Bay Networks............... 532,312 48,397 Boeing..................... 5,148,230 3,800 Briggs & Stratton.......... 167,200 28,000 Browning-Ferris Industries. 735,000 35,600 (a)COMPAQ Computer............ 2,643,300 51,850 (a)CUC International.......... 1,231,437 20,500 (a)Cabletron Systems.......... 681,625 9,700 Case....................... 528,650 25,200 Caterpillar................ 1,896,300 9,100 (a)Ceridian................... 368,550 5,200 Cincinnati Milacron........ 113,750 85,400 (a)Cisco Systems.............. 5,433,575 22,500 Cognizant.................. 742,500 47,950 Computer Associates International............ 2,385,512 10,000 (a)Computer Sciences.......... 821,250 14,200 Cooper Industries.......... 598,175 6,050 Crane...................... 175,450 5,200 Cummins Engine............. 239,200 15,400 (a)DSC Communications......... 275,275 5,100 (a)Data General............... 73,950 34,000 Deere...................... 1,381,250 23,700 (a)Dell Computer.............. 1,259,062 10,900 Deluxe..................... 356,975 20,400 (a)Digital Equipment.......... 742,050 14,800 Dover...................... 743,700 12,700 Dow Jones & Co............. 430,212 23,100 Dresser Industries......... 716,100 22,400 Dun & Bradstreet........... 532,000 6,200 EG&G....................... 124,775 30,600 EMC........................ 1,013,625 10,200 Eaton...................... 711,450 29,500 Emerson Electric........... 2,854,125 58,900 First Data................. 2,149,850 5,300 Foster Wheeler............. 196,762 8,300 General Dynamics........... 585,150 216,700 General Electric........... 21,426,285 6,600 General Signal............. 282,150 15,900 Genuine Parts.............. 707,550 4,300 Giddings & Lewis........... 55,362 7,000 Grainger (W.W.)............ 561,750 13,700 H&R Block.................. 397,300 Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1996 Shares COMMON STOCKS (continued) Value ---------- ------------ Capital Goods (continued) 6,500 Harnischfeger Industries... $ 312,812 5,100 Harris..................... 349,987 133,900 Hewlett-Packard............ 6,728,475 16,700 Honeywell.................. 1,098,025 16,300 Illinois Tool Works........ 1,301,962 14,400 Ingersoll-Rand............. 640,800 68,200 International Business Machines................. 10,298,200 108,000 Intel...................... 14,141,250 6,300 (a)Intergraph................. 64,575 10,700 Interpublic Group Cos...... 508,250 5,400 Johnson Controls........... 447,525 17,000 (a)LSI Logic.................. 454,750 41,300 Laidlaw, Cl. B............. 474,950 25,400 Lockheed Martin............ 2,324,100 83,898 Lucent Technologies........ 3,880,282 9,800 Mallinckrodt Group......... 432,425 9,500 Marsh & McLennan........... 988,000 7,200 McDermott International.... 119,700 27,900 McDonnell Douglas.......... 1,785,600 27,500 Micron Technology.......... 800,937 157,300 (a)Microsoft.................. 12,996,912 78,000 Motorola................... 4,787,250 18,300 (a)National Semiconductor..... 446,062 6,200 National Service Industries 231,725 34,000 Northern Telecommunications 2,103,750 7,600 (a)Northrop Grumman........... 628,900 45,300 (a)Novell..................... 428,934 86,500 (a)Oracle..................... 3,611,375 6,800 Owens-Corning.............. 289,850 15,101 Pall....................... 385,075 9,800 Parker-Hannifin............ 379,750 5,700 Perkin-Elmer............... 335,587 19,500 Pitney Bowes............... 1,062,750 29,300 Rockwell................... 1,783,638 5,900 Raychem.................... 472,737 31,100 Raytheon................... 1,496,687 10,800 Ryder System............... 303,750 7,700 Safety-Kleen............... 126,087 10,200 Scientific-Atlanta......... 153,000 32,700 (a)Seagate Technology......... 1,291,650 31,000 Service Corp. International 868,000 3,100 Shared Medical Systems..... 152,675 23,000 (a)Silicon Graphics........... 586,500 8,050 Snap-On.................... 286,781 11,700 Stanley Works.............. 315,900 48,300 (a)Sun Microsystems........... 1,240,706 22,900 (a)3COM....................... 1,680,287 3,700 TRINOVA.................... 134,587 16,700 TRW........................ 826,650 15,600 (a)Tandem Computers........... 214,500 Capital Goods (continued) 4,300 Tektronix.................. $ 220,375 23,600 (a)Tellabs.................... 887,950 25,000 Texas Instruments.......... 1,593,750 10,900 Textron.................... 1,027,325 20,000 Thermo Electron............ 825,000 7,000 Thomas & Betts............. 310,625 4,100 Timken..................... 188,087 20,600 Tyco International......... 1,089,225 23,000 (a)Unisys..................... 155,250 31,700 United Technologies........ 2,092,200 82,500 Westinghouse Electric...... 1,639,687 63,800 WMX Technologies........... 2,081,475 42,700 Xerox...................... 2,247,087 ------------- 172,576,298 ------------- Consumer Cyclical--10.8% 33,100 Albertson's................ 1,179,187 9,900 American Greetings, Cl. A.. 280,912 19,100 American Stores............ 780,712 20,000 (a)Autozone................... 550,000 16,400 Becton, Dickinson & Co..... 711,350 11,500 Black & Decker............. 346,437 12,900 Brunswick.................. 309,600 13,900 CVS........................ 575,113 13,800 (a)Charming Shoppes........... 69,862 95,900 Chrysler................... 3,164,700 12,900 Circuit City Stores........ 388,612 42,900 Comcast, Cl. A............. 764,156 10,900 Cooper Tire and Rubber..... 215,275 13,400 Dana....................... 437,175 20,700 Darden Restaurants......... 181,125 28,500 Dayton Hudson.............. 1,118,625 15,000 Dillard Department Stores, Cl. A 463,125 89,300 Disney (Walt).............. 6,217,512 19,800 Donnelley (R.R.) & Sons.... 621,225 8,200 Echlin..................... 259,325 27,300 (a)Federated Department Stores 931,612 4,600 Fleetwood Enterprises...... 126,500 4,900 Fleming Cos................ 84,525 156,100 Ford Motor................. 4,975,687 10,200 (a)Fruit of the Loom, Cl. A... 386,325 18,500 Gannett.................... 1,385,187 37,300 Gap........................ 1,123,662 18,100 (a)General Instrument......... 391,412 99,500 General Motors............. 5,547,125 7,900 Giant Food, Cl. A.......... 272,550 20,400 Goodyear Tire & Rubber..... 1,048,050 5,000 Great Atlantic & Pacific... 159,375 17,000 (a)HFS........................ 1,015,750 9,400 Harcourt General........... 433,575 4,000 Harland (John H.).......... 132,000 Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1996 Shares COMMON STOCKS (continued) Value ---------- ------------ Consumer Cyclical (continued) 13,500 (a)Harrah's Entertainment..... $ 268,312 11,300 Hasbro..................... 439,287 32,600 Hilton Hotel............... 851,675 63,200 Home Depot................. 3,167,900 15,300 (a)ITT........................ 663,637 15,600 ITT Industries............. 382,200 5,100 Jostens.................... 107,737 63,700 (a)K mart..................... 660,887 4,900 (a)King World Productions..... 180,687 12,300 Knight-Ridder.............. 470,475 16,600 (a)Kroger..................... 771,900 35,700 Limited.................... 655,987 9,400 Liz Claiborne.............. 363,075 2,600 Longs Drug Stores.......... 127,725 22,800 Lowes...................... 809,400 16,900 Marriott International..... 933,725 21,100 Masco...................... 759,600 35,800 Mattel..................... 993,450 33,100 May Department Stores...... 1,547,425 13,200 Maytag..................... 260,700 91,800 McDonald's................. 4,153,950 13,100 McGraw-Hill Cos............ 604,237 4,800 Mercantile Stores.......... 237,000 3,600 Meredith................... 189,900 13,100 Moore...................... 266,912 1,133 NACCO Industries, Cl. A.... 60,615 37,900 NIKE, Cl. B................ 2,264,525 9,700 (a)Navistar International..... 88,512 12,700 New York Times, Cl. A...... 482,600 10,700 Nordstrom.................. 379,181 5,100 PACCAR..................... 346,800 30,400 Penney (J.C.).............. 1,482,000 8,200 Pep Boys-Manny, Moe & Jack. 252,150 25,800 (a)Price/Costco............... 648,225 7,300 Reebok International....... 306,600 16,200 Rite Aid................... 643,950 5,000 Russell.................... 148,750 51,500 Sears, Roebuck & Co........ 2,375,437 2,700 Springs Industries......... 116,100 6,500 Stride Rite................ 65,000 8,900 Supervalu.................. 252,537 23,600 Sysco...................... 769,950 10,300 TJX Cos.................... 487,962 7,700 Tandy...................... 338,800 87,400 (a)Tele-Communications, Cl. A. 1,141,662 74,900 Time Warner................ 2,808,750 13,000 Times Mirror, Cl. A........ 646,750 36,100 (a)Toys R Us.................. 1,083,000 8,100 Tribune.................... 638,887 82,200 (a)US West Media Group........ 1,520,700 8,400 V.F........................ 567,000 Consumer Cyclical (continued) 46,601 (a)Viacom, Cl. B.............. $ 1,625,209 301,900 Wal-Mart Stores............ 6,905,962 32,400 Walgreen................... 1,296,000 17,100 Wendy's International...... 350,550 9,800 Whirlpool.................. 456,925 19,900 Winn-Dixie Stores.......... 629,337 17,600 (a)Woolworth.................. 385,000 ------------- 88,080,572 ------------- Consumer Staples--12.0% 3,700 Alberto-Culver, Cl. B...... 177,600 65,700 Anheuser-Busch Cos......... 2,628,000 71,551 Archer Daniels Midland..... 1,574,122 17,500 Avon Products.............. 999,687 9,100 Brown-Forman, Cl. B........ 416,325 18,900 CPC International.......... 1,464,750 30,800 Campbell Soup.............. 2,471,700 6,800 Clorox..................... 682,550 327,500 Coca-Cola.................. 17,234,687 19,300 Colgate-Palmolive.......... 1,780,425 31,700 ConAgra.................... 1,577,075 5,000 Coors (Adolph), Cl. B...... 95,000 43,900 Eastman Kodak.............. 3,522,975 8,500 Ecolab..................... 319,812 20,600 General Mills.............. 1,305,525 73,500 Gillette................... 5,714,625 48,400 Heinz (H.J.)............... 1,730,300 20,200 Hershey Foods.............. 883,750 14,600 International Flavors & Fragrances............... 657,000 175,300 Johnson & Johnson.......... 8,721,175 27,700 Kellogg.................... 1,817,812 8,300 Manor Care................. 224,100 20,900 Newell..................... 658,350 204,500 PepsiCo.................... 5,981,625 107,200 Philip Morris Cos.......... 12,073,400 10,900 Pioneer Hi-Bred International 763,000 6,000 Polaroid................... 261,000 89,800 Procter & Gamble........... 9,653,500 17,900 Quaker Oats................ 682,437 13,900 Ralston-Ralston Purina Group 1,019,912 19,700 Rubbermaid................. 448,175 63,700 Sara Lee................... 2,372,825 49,100 Seagram.................... 1,902,625 8,200 Tupperware................. 439,725 24,500 UST........................ 793,187 21,100 Unilever, N.V.............. 3,697,775 13,600 Whitman.................... 311,100 15,300 Wrigley, (Wm) Jr........... 860,625 ------------- 97,918,256 ------------- Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1996 Shares COMMON STOCKS (continued) Value ---------- ------------ Energy--9.1% 12,200 Amerada Hess............... $ 706,075 65,400 Amoco...................... 5,264,700 8,500 Ashland.................... 372,937 21,200 Atlantic Richfield......... 2,809,000 19,000 Baker Hughes............... 655,500 16,400 Burlington Resources....... 826,150 85,900 Chevron.................... 5,583,500 13,800 Coastal.................... 674,475 7,300 Columbia Gas System........ 464,462 12,500 Consolidated Natural Gas... 690,625 2,700 Eastern Enterprises........ 95,512 33,500 Enron...................... 1,444,687 9,200 Enserch.................... 211,600 163,500 Exxon...................... 16,023,000 16,500 Halliburton................ 994,125 3,320 Helmerich & Payne.......... 173,055 6,400 Kerr-McGee................. 460,800 4,500 Louisiana Land & Exploration 241,312 51,900 Mobil...................... 6,344,775 6,500 Nicor...................... 232,375 18,100 Noram Energy............... 278,287 3,600 Oneok...................... 108,000 13,800 (a)Oryx Energy................ 341,550 11,100 Pacific Enterprises........ 337,162 19,900 Panenergy.................. 895,500 6,100 Pennzoil................... 344,650 4,600 Peoples Energy............. 155,825 34,600 Phillips Petroleum......... 1,531,050 11,200 (a)Rowan Cos.................. 253,400 70,500 Royal Dutch Petroleum...... 12,037,875 11,900 (a)Santa Fe Energy Resources.. 165,112 32,500 Schlumberger............... 3,245,937 11,300 Sonat...................... 581,950 21,900 Tenneco.................... 988,238 9,600 Sun........................ 234,000 34,800 Texaco..................... 3,414,750 37,900 USX-Marathon Group......... 904,862 32,944 Union Pacific Resources Group 963,614 32,900 Unocal..................... 1,336,562 7,100 (a)Western Atlas.............. 503,212 20,700 Williams Cos............... 776,250 ------------- 73,666,451 ------------- Health Care-- 8.3% 102,300 Abbott Laboratories........ 5,191,725 8,600 (a)Allergan................... 306,375 11,100 Alza....................... 287,212 84,000 American Home Products..... 4,924,500 34,800 (a)Amgen...................... 1,892,250 7,500 Bard (C.R.)................ 210,000 7,300 Bausch & Lomb.............. 255,500 Health Care (continued) 35,900 Baxter International....... $ 1,471,900 13,100 (a)Beverly Enterprises........ 167,025 15,200 Biomet..................... 229,900 23,400 (a)Boston Scientific.......... 1,404,000 65,900 Bristol-Myers Squibb....... 7,166,625 88,350 Columbia/HCA Healthcare.... 3,600,262 30,300 Corning.................... 1,401,375 9,600 Guidant.................... 547,200 21,400 (a)Humana..................... 409,275 72,600 Lilly (Eli)................ 5,299,800 31,600 Medtronic.................. 2,148,800 158,600 Merck & Co................. 12,569,050 5,700 Millipore.................. 235,837 84,800 Pfizer..................... 7,027,800 66,900 Pharmacia & Upjohn......... 2,650,912 48,600 Schering-Plough............ 3,146,850 10,700 St. Jude Medical........... 456,087 28,600 (a)Tenet Healthcare........... 625,625 8,300 U.S. Surgical.............. 326,812 24,300 United Healthcare.......... 1,093,500 35,700 Warner-Lambert............. 2,677,500 ------------- 67,723,697 ------------- Interest Sensitive--13.5% 19,799 Aetna...................... 1,583,920 13,900 Ahmanson (H.F.) & Co....... 451,750 58,500 Allstate................... 3,385,687 62,300 American Express........... 3,519,950 26,700 American General........... 1,091,362 61,800 American International Group 6,689,850 14,200 Aon........................ 882,175 56,200 Banc One................... 2,416,600 51,600 Bank of New York........... 1,741,500 47,300 BankAmerica................ 4,718,175 20,100 Bank of Boston............. 1,291,425 10,800 Bankers Trust New York..... 931,500 25,600 Barnett Banks.............. 1,052,800 7,100 Beneficial................. 449,962 20,300 Boatmens Bancshares........ 1,309,350 9,900 CIGNA...................... 1,352,587 57,800 Chase Manhattan............ 5,158,650 22,900 Chubb...................... 1,230,875 62,000 Citicorp................... 6,386,000 14,100 Comerica................... 738,487 29,300 CoreStates Financial....... 1,519,937 21,101 Dean Witter, Discover & Co. 1,397,941 143,700 Federal National Mortgage Association.............. 5,352,825 23,600 Federal Home Loan Mortgage. 2,598,950 13,900 Fifth Third Bancorp........ 873,093 17,700 First Bank Systems......... 1,208,025 Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1996 Shares COMMON STOCKS (continued) Value ---------- ------------ Interest Sensitive (continued) 41,900 First Chicago NBD.......... $ 2,252,125 37,400 First Union................ 2,767,600 34,500 Fleet Financial Group...... 1,720,687 10,900 General Re................. 1,719,475 7,600 Golden West Financial...... 479,750 18,200 Great Western Financial.... 527,800 18,100 Green Tree Financial....... 699,112 12,700 Household International.... 1,171,575 15,500 ITT Hartford............... 1,046,250 9,400 Jefferson Pilot............ 532,275 5,100 Kaufman & Broad Home....... 65,662 29,700 Keycorp.................... 1,499,850 13,700 Lincoln National........... 719,250 15,200 Loews...................... 1,432,600 5,700 MBIA....................... 577,125 29,300 MBNA....................... 1,215,950 7,800 MGIC Investment............ 592,800 17,100 Mellon Bank................ 1,214,100 21,700 Merrill Lynch & Co......... 1,768,550 24,600 Morgan (J.P.) & Co......... 2,401,575 20,000 Morgan Stanley Group....... 1,142,500 29,200 National City.............. 1,310,350 37,900 NationsBank................ 3,704,725 48,700 Norwest.................... 2,118,450 44,900 PNC Bank................... 1,689,362 12,300 Providian.................. 631,912 3,100 Pulte...................... 95,325 7,300 Republic New York.......... 595,862 16,600 Safeco..................... 654,662 14,300 Salomon.................... 673,887 10,900 St. Paul Cos............... 639,012 29,400 SunTrust Banks............. 1,447,950 9,300 Torchmark.................. 469,650 8,700 Transamerica............... 687,300 84,266 Travelers Group............ 3,823,600 9,700 UNUM....................... 700,825 15,200 USF&G...................... 317,300 4,500 USLife..................... 149,625 19,900 U.S. Bancorp............... 894,256 21,700 Wachovia................... 1,226,050 12,100 Wells Fargo................ 3,263,975 ------------- 109,974,065 ------------- Mining and Metals--1.3% 14,000 (a)ARMCO...................... 57,750 5,600 ASARCO..................... 139,300 29,800 Alcan Aluminium............ 1,002,025 22,800 Aluminum Co. of America.... 1,453,500 47,100 Barrick Gold............... 1,354,125 29,600 Battle Mountain Gold....... 203,500 14,700 (a)Bethlehem Steel............ 132,300 Mining and Metals (continued) 12,200 Cyprus Amax Minerals....... $ 285,175 18,300 Echo Bay Mines............. 121,237 18,900 Engelhard.................. 361,462 25,500 Freeport-McMoRan Copper, Cl. B.......... 761,812 19,300 Homestake Mining........... 275,025 22,200 Inco....................... 707,625 6,400 Inland Steel Industries.... 128,000 13,101 Newmont Mining............. 586,269 11,500 Nucor...................... 586,500 8,600 Phelps Dodge............... 580,500 31,500 Placer Dome................ 685,125 8,400 Reynolds Metals............ 473,550 17,301 Santa Fe Pacific Gold...... 266,002 11,100 USX-U.S. Steel............. 348,262 11,900 Worthington Industries..... 215,687 ------------- 10,724,731 ------------- Transportation--1.3% 11,900 (a)AMR........................ 1,048,687 20,100 Burlington Northern Santa Fe 1,736,137 28,500 CSX........................ 1,204,125 5,100 Caliber System............. 98,175 10,600 Conrail.................... 1,056,025 9,900 Delta Air Lines............ 701,662 15,000 Federal Express............ 667,500 16,500 Norfolk Southern........... 1,443,750 19,100 Southwest Airlines......... 422,587 8,500 (a)USAir Group................ 198,687 32,300 Union Pacific.............. 1,942,037 ------------- 10,519,372 ------------- Utilities--8.8% 25,000 ALLTEL..................... 784,375 213,300 AT&T....................... 9,278,550 66,000 (a)Airtouch Communications.... 1,666,500 24,700 American Electric Power.... 1,015,787 72,300 Ameritech.................. 4,383,187 19,400 Baltimore Gas & Electric... 518,950 57,600 Bell Atlantic.............. 3,729,600 130,800 BellSouth.................. 5,281,050 20,700 CINergy.................... 690,862 19,900 Carolina Power & Light..... 726,350 27,700 Central & Southwest........ 709,812 31,000 Consolidated Edison........ 906,750 19,100 DTE Energy................. 618,362 23,700 Dominion Resources......... 912,450 26,500 Duke Power................. 1,225,625 57,000 Edison International....... 1,132,875 30,400 Entergy.................... 843,600 24,100 FPL Group.................. 1,108,600 22,000 Frontier................... 497,750 Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Investments (continued) December 31, 1996 Shares COMMON STOCKS (continued) Value ---------- ------------ Utilities (continued) 15,900 GPU........................ $ 534,637 126,600 GTE........................ 5,760,300 30,900 Houston Industries......... 699,112 90,200 MCI Communications......... 2,948,412 57,900 NYNEX...................... 2,786,437 19,000 Niagara Mohawk Power....... 187,625 9,100 Northern States Power...... 417,462 20,100 Ohio Edison................ 457,275 29,300 PECO Energy................ 739,825 21,400 PP&L Resources............. 492,200 54,300 Pacific Gas & Electric..... 1,140,300 56,400 Pacific Telesis Group...... 2,072,700 38,800 PacifiCorp................. 795,400 31,400 Public Service Enterprise Group 855,650 79,400 SBC Communications......... 4,108,950 88,700 Southern................... 2,006,837 56,600 Sprint..................... 2,256,925 29,600 Texas Utilities............ 1,206,200 28,400 UniCom..................... 770,350 13,400 Union Electric............. 515,900 62,800 US West.................... 2,025,300 114,400 (a)WorldCom................... 2,981,550 ------------- 71,790,382 ------------- TOTAL COMMON STOCKS (cost $631,260,923)...... $745,657,527 ============= U.S. Treasury Bills: $ 979,000 4.9%, 1/2/1997........... $ 978,873 2,628,000 4.94%, 1/9/1997.......... 2,625,188 4,979,000 (b).........4.96%, 1/16/1997 4,968,744 3,041,000 4.99%, 1/23/1997......... 3,031,938 499,000 5.01%, 1/30/1997......... 497,054 3,443,000 4.98%, 2/27/1997......... 3,416,006 26,111,000 4.94%, 3/6/1997.......... 25,880,701 29,643,000 4.89%, 3/13/1997......... 29,352,795 ------------- TOTAL SHORT-TERM (cost $70,755,963)..... $ 70,751,299 ============= TOTAL INVESTMENTS (cost $702,016,886)............ 100.3% $816,408,826 ======= ============= LIABILITIES LESS CASH AND RECEIVABLES ................... (.3%)$ (2,450,053) ======= ============= NET ASSETS....................... 100.0% $813,958,773 ======= ============= Notes to Statement of Investments: - -------------------------------------------------------------------------------- (a) Non-income producing. (b) Partially held by custodian in a segregated account as collateral for open financial future positions. Statement of Financial Futures December 31, 1996
Financial Futures Purchased - ---------------------------------------------------------------------------------------------------------------- Market Value Unrealized Number of Covered (Depreciation) Issuer Contracts by Contracts Expiration at 12/31/96 - ----- ---------- ------------ ------------ ------------ Standard & Poor's 500............................ 187 $69,610,750 March 1997 ($267,170)
See notes to financial statements. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Assets and Liabilities December 31, 1996
Cost Value ------------- ------------- ASSETS: Investments in securities--See Statement of Investments.................................... $702,016,886 $816,408,826 Cash............................................. 3,146,261 Dividends and interest receivable................ 1,074,756 Receivable for investment securities sold........ 154,980 Prepaid expenses................................. 698 ------------- 820,785,521 ------------- LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 170,483 Payable for investment securities purchased...... 5,081,867 Payable for futures variation margin--Note 4(a)... 1,377,500 Accrued expenses................................. 196,898 ------------- 6,826,748 ------------- NET ASSETS..................................................................... $813,958,773 ============= REPRESENTED BY: Paid-in capital.................................. $675,673,544 Accumulated undistributed investment income--net.. 96,693 Accumulated net realized gain (loss) on investments 24,063,766 Accumulated net unrealized appreciation (depreciation) on investments [including ($267,170) net unrealized (depreciation) on financial futures]--Note 4(b). 114,124,770 ------------- NET ASSETS..................................................................... $813,958,773 ============= SHARES OUTSTANDING (200 million shares of $.001 par value Common Stock authorized)................ 40,128,613 NET ASSET VALUE, offering and redemption price per share....................... $20.28 =======
See notes to financial statements. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Operations Year Ended December 31, 1996 INVESTMENT INCOME INCOME: Cash dividends (net of $62,931 foreign taxes withheld at source) $ 10,395,226 Interest......................................... 2,964,524 -------------- Total Income................................ $ 13,359,750 EXPENSES: Management fee--Note 3(a)......................... 1,278,312 Registration fees................................. 125,515 Professional fees................................. 77,292 Prospectus and shareholders' reports.............. 40,817 Directors' fees and expenses--Note 3(c)........... 37,160 Shareholder servicing costs--Note 3(b)............ 6,090 Miscellaneous..................................... 6,794 -------------- Total Expenses.............................. 1,571,980 --------------- INVESTMENT INCOME--NET.......................................................... 11,787,770 --------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments--Note 4(a) $23,146,990 Net realized gain (loss) on financial futures--Note 4(a) 8,737,790 -------------- Net Realized Gain.............................. 31,884,780 Net unrealized appreciation (depreciation) on investments [including ($32,355) net unrealized (depreciation) on financial futures]............................. 67,782,146 --------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 99,666,926 --------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $111,454,696 ===============
See notes to financial statements. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Statement of Changes in Net Assets
Year Ended Year Ended December 31, 1996 December 31, 1995 ----------------- ----------------- OPERATIONS: Investment income--net................................................ $ 11,787,770 $ 4,465,773 Net realized gain (loss) on investments.............................. 31,884,780 8,075,002 Net unrealized appreciation (depreciation) on investments............ 67,782,146 43,128,888 -------------- -------------- Net Increase (Decrease) in Net Assets Resulting from Operations.. 111,454,696 55,669,663 -------------- -------------- DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net................................................ (11,705,971) (4,476,568) Net realized gain on investments..................................... (12,675,130) (2,357,447) -------------- -------------- Total Dividends.................................................. (24,381,101) (6,834,015) -------------- -------------- CAPITAL STOCK TRANSACTIONS: Net proceeds from shares sold........................................ 520,828,128 219,772,239 Dividends reinvested................................................. 24,381,101 6,834,015 Cost of shares redeemed.............................................. (131,010,511) (59,561,665) -------------- -------------- Increase (Decrease) in Net Assets from Capital Stock Transactions 414,198,718 167,044,589 -------------- -------------- Total Increase (Decrease) in Net Assets........................ 501,272,313 215,880,237 NET ASSETS: Beginning of Period.................................................. 312,686,460 96,806,223 -------------- -------------- End of Period........................................................ $813,958,773 $312,686,460 ============== ============== Undistributed investment income--net.................................... $ 96,693 $ 14,894 -------------- -------------- CAPITAL SHARE TRANSACTIONS: Shares Shares -------------- -------------- Shares sold.......................................................... 27,543,376 14,313,682 Shares issued for dividends reinvested............................... 1,269,483 417,105 Shares redeemed...................................................... (6,861,606) (4,033,543) -------------- -------------- Net Increase (Decrease) in Shares Outstanding.................... 21,951,253 10,697,244 ============== ==============
See notes to financial statements. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Financial Highlights Contained below is per share operating performance data for a share of Common Stock outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements.
Four Months Ended Year Ended December 31, December 31, August 31, ------------------------------------------- ------------- ---------- PER SHARE DATA: 1996 1995 1994 1993 1992 1992 ------- ------- ------- ------- ------- ------- Net asset value, beginning of period.. $17.20 $12.94 $13.20 $15.32 $14.87 $14.20 ------- ------- ------- ------- ------- ------- Investment Operations: Investment income--net................. .39 .33 .32 .37 .13 .37 Net realized and unrealized gain (loss) on investments..................... 3.43 4.39 (.21) 1.04 .77 .68 ------- ------- ------- ------- ------- ------- Total from Investment Operations...... 3.82 4.72 .11 1.41 .90 1.05 ------- ------- ------- ------- ------- ------- Distributions: Dividends from investment income--net.. (.39) (.33) (.31) (.34) (.21) (.38) Dividends in excess of investment income--net -- -- -- (.03) -- -- Dividends from net realized gain on investments..................... (.35) (.13) -- (3.00) (.24) -- Dividends in excess of net realized gain on investments..................... -- -- (.06) (.16) -- -- ------- ------- ------- ------- ------- ------- Total Distributions................... (.74) (.46) (.37) (3.53) (.45) (.38) ------- ------- ------- ------- ------- ------- Net asset value, end of period........ $20.28 $17.20 $12.94 $13.20 $15.32 $14.87 ======= ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN.................. 22.54% 36.78% .88% 9.33% 6.05%(1) 7.49% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets.............. .30% .39% .40% .40% .13%(1) .40% Ratio of net investment income to average net assets.............. 2.24% 2.38% 2.57% 2.38% .85%(1) 2.63% Decrease reflected in above expense ratios due to undertakings by the Manager. -- .03% .16% .27% .03%(1) .13% Portfolio Turnover Rate............... 10.92% 11.95% 2.82% 71.71% 6.94%(1) 7.66% Average commission rate paid (2)...... $.0317 -- -- -- -- -- Net Assets, end of period (000's Omitted) $813,959 $312,686 $96,806 $61,319 $70,072 $74,446 - ------------------ (1) Not annualized. (2) For fiscal years beginning January 1, 1996, the Fund is required to disclose its average commission rate paid per share for purchases and sales of investment securities.
See notes to financial statements. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS NOTE 1--Significant Accounting Policies: Dreyfus Stock Index Fund (the "Fund") is registered under the Investment Company Act of 1940 ("Act") as a non-diversified open-end management investment company, that is intended to be a funding vehicle for variable annuity contracts and variable life insurance policies to be offered by the separate accounts of life insurance companies. The Fund's investment objective is to provide investment results that correspond to the price and yield performance of publicly traded common stocks as represented by the Standard and Poor's 500 Composite Stock Price Index. The Dreyfus Corporation ("Dreyfus") serves as the Fund's manager and Mellon Equity Associates ("Mellon Equity"), an affiliate of Dreyfus, serves as the Fund's index manager. Boston Safe Deposit and Trust Company, an affiliate of Dreyfus, is the Fund's custodian. Dreyfus is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. acts as the distributor of the Fund's shares, which are sold without a sales charge. The Fund's financial statements are prepared in accordance with generally accepted accounting principles which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (a) Portfolio valuation: Investments in securities (including financial futures) are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market. 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. Bid price is used when no asked price is available. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, amortization of discount on investments, is recognized on the accrual basis. (c) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are declared and paid on a quarterly basis. Dividends from net realized capital gain 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. This may result in distributions that are in excess of investment income-net on a fiscal year basis. To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the Fund not to distribute such gain. (d) Federal income taxes: It is the policy of the Fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of taxable income sufficient to relieve it from substantially all Federal income and excise taxes. NOTE 2--Bank Line ofCredit: The Fund participates with other Dreyfus managed funds in a $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. Interest is charged to the Fund at rates which are related to the Federal Funds rate in effect at the time of borrowings. For the period ended December 31, 1996, the Fund did not borrow under the line of credit. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) NOTE 3--Management Fee and Other Transactions With Affiliates: (a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment advisory fee is computed at the annual rate of .245 of 1% of the value of the Fund's average daily net assets, and is payable monthly. Dreyfus has agreed to pay Mellon Equity, a monthly fee at the annual rate of .095 of 1% of the value of the Fund's average daily net assets. Dreyfus has currently undertaken from January 1, 1996 until December 31, 1996 and thereafter until such a time as they give shareholders at least 180 days notice to the contrary that if in any full fiscal year the Fund's aggregate expenses (exclusive of brokerage commissions, transaction fees and extraordinary expenses) exceed an annual rate of .40 of 1% of the value of the Fund's average daily net assets, the Fund may deduct from the payments to be made to Dreyfus, or Dreyfus will bear, such excess expense. There was no expense reim bursement for the period ended December 31, 1996. (b) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, an amount not to exceed an annual rate of .25 of 1% of the value of the Fund's average daily net assets for certain allocated expenses with respect to servicing and/or maintaining shareholder accounts. During the period ended December 31, 1996, the Fund was charged an aggregate of $9,218 pursuant to the Shareholder Services Plan. The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the Fund. Such compensation amounted to $362 during the period ended December 31, 1996. (c) Each director who is not an "affiliated person" as defined in the Act receives from the Fund an annual fee of $2,500 and an attendance fee of $500 per meeting. The Chairman of the Board receives an additional 25% of such compensation. NOTE 4--Securities Transactions: (a) The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 1996 amounted to $424,886,551 and $51,539,693, respectively. The Fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market. The Fund is exposed to market risk as a result of changes in the value of the underlying financial instruments (see the Statement of Financial Futures). Investments in financial futures require the Fund to "mark to market" on a daily basis, which reflects the change in the market value of the contract at the close of each day's trading. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses. When the contracts are closed, the Fund recognizes a realized gain or loss. These investments require initial margin deposits with a custodian, which consist of cash or cash equivalents, up to approximately 10% of the contract amount. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at December 31, 1996 and their related unrealized market depreciation are set forth in the Statement of Financial Futures. (b) At December 31, 1996, accumulated net unrealized appreciation on investments was $114,124,770, consisting of $121,757,907 gross unrealized appreciation and $7,633,137 gross unrealized depreciation. At December 31, 1996, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Report of Independent Accountants To the Shareholders and Board of Directors of Dreyfus Stock Index Fund: We have audited the accompanying statement of assets and liabilities of Dreyfus Stock Index Fund, including the statements of investments and financial futures, as of December 31, 1996, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, for the period September 1, 1992 to December 31, 1992, and the year ended August 31, 1992. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1996, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Stock Index Fund as of December 31, 1996, the results of its operations, the changes in its net assets, and the financial highlights for the periods referred to above, in conformity with generally accepted accounting principles. COOPERS & LYBRAND L.L.P. New York, New York January 29, 1997 Important Tax Information (Unaudited) For Federal tax purposes the Fund hereby designates $.1175 per share as a long-term capital gain distribution of the $.2725 per share paid on December 31, 1996 and also designates $.101 per share as a long-term capital gain distribution of the $.165 per share paid on August 30, 1996. Dreyfus Stock Index Fund - -------------------------------------------------------------------------------- Proxy Results (Unaudited) A special meeting of stockholders of the Fund was held on July 26, 1996, at which shareholders approved the election of the following Board members: Joseph S. DiMartino, by a vote of 23,175,588 shares in favor of and 882,570 shares withholding authority to vote; John M. Fraser, Jr., by a vote of 23,124,031 shares in favor of and 934,127 shares withholding authority to vote; Ehud Houminer, by a vote of 23,157,401 shares in favor of and 900,757 shares withholding authority to vote; David J. Mahoney, by a vote of 23,150,331 shares in favor of and 907,827 shares withholding authority to vote; Gloria Messinger, by a vote of 23,170,518 shares in favor of and 887,640 shares withholding authority to vote; David P. Feldman, by a vote of 23,192,286 shares in favor of and 865,872 shares withholding authority to vote, Jack R. Meyer, by a vote of 23,199,621 shares in favor of and 858,537 shares withholding authority to vote; John Szarkowski, by a vote of 23,129,134 shares in favor of and 929,024 shares withholding authority to vote; and Anne Wexler, by a vote of 23,161,016 shares in favor of and 897,142 shares withholding authority to vote. The shareholders also ratified the selection Coopers & Lybrand L.L.P. as independent auditors by a vote of 22,776,119 shares in favor of, and 191,304 shares against the selection, with 1,090,734 shares abstaining (including broker non-votes). Also considered at the meeting was a change from fundamental policy to a non-fundamental policy an investment restriction which prohibits the Fund from purchasing securities of any company having less than three years continuous operations if such purchase would cause the value of such investments in all such companies to exceed 5% of the value of the Fund's total assets. The change from fundamental to non-fundamental policy was proposed to afford the Fund the investment flexibility to permit it to be competitive with other similar funds, and was approved by shareholders by a vote of 19,870,738 shares with 1,183,650 shares voting against the change and 3,003,158 shares abstaining (including broker non-votes). Dreyfus Stock Index Fund 200 Park Avenue New York, NY 10166 Manager The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Index Fund Manager Mellon Equity Associates 500 Grant Street Pittsburgh, PA 15258 Custodian Boston Safe Deposit and Trust Company One Boston Place Boston, MA 02108 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Printed in U.S.A. 763AR9612 EX-99.A 2 GRAPH IN PRES'S LETTER OF ANNUAL REPORT COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS STOCK INDEX FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX EXHIBIT A: STANDARD & POOR'S 500 COMPOSITE DREYFUS PERIOD STOCK STOCK PRICE INDEX* INDEX FUND 9/29/89 10,000 10,000 12/31/89 10,205 10,216 12/31/90 9,888 9,860 12/31/91 12,893 12,803 12/31/92 13,875 13,713 12/31/93 15,270 14,993 12/31/94 15,471 15,125 12/31/95 21,278 20,688 12/31/96 26,161 25,350 *Source: Lipper Analytical Services, Inc. -----END PRIVACY-ENHANCED MESSAGE-----