-----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, DJxacTrJcULHVf+N+IjdzIh/tgv3teeli4Saq8m+8sr7rz+1eZkoyDHibFGRLSmW MXWuDgAH5n+Y/EUwoIjOVQ== 0000846800-98-000008.txt : 19980904 0000846800-98-000008.hdr.sgml : 19980904 ACCESSION NUMBER: 0000846800-98-000008 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980903 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: SEC FILE NUMBER: 811-05719 FILM NUMBER: 98703865 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 SEMI-ANNUAL REPORT DREYFUS STOCK INDEX FUND - ----------------------------------------------------------------------------- LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to provide you with this semi-annual report for the Dreyfus Stock Index Fund for the six-month period ended June 30, 1998. Over this period, your Fund produced a total return of 17.51%.* This compares with a total return of 17.72%** for the Standard & Poor's 500 Composite Stock Price Index, which the Fund is designed to mirror. The difference is accounted for by transaction costs and other Fund expenses. ECONOMIC REVIEW Fears of Federal Reserve Board tightening appear to have eased due to accumulating evidence of slower overall economic growth since the spring. Monetary tightening has been deterred by the Asian financial crisis. The Fed's main domestic concern is that the tight labor market has begun to fuel faster wage growth across many industries. However, rising wages have still not meant rising prices. Instead, this cost-price mix threatens to further erode corporate profit margins. Market interest rates have already reflected the slower economy, and the interest rate curve has become quite flat. The shift to slower economic growth this spring is largely due to the drag from Asia's recession, but may well be reinforced this summer by the multiplier impacts of the General Motors strike. Among broader economic factors, the trade deficit has widened sharply due to both weak exports and strong growth in imports. Also, inventories soared earlier this year, potentially creating some drag on future production. However, slowing industrial output has largely been met by shortening the manufacturing work week, not by cutting jobs. Hence, the shift to slower growth has not relieved the tightness in the labor market. Instead, the virtual absence of bad news has left consumers to enjoy the benefits of rising real wages and lower interest rates that, in turn, have boosted spending and home ownership. Although growth in corporate profits has slowed in many sectors in the past year, consensus estimates of future profit growth continue to be cut by many analysts. Profit margins had already begun to shrink under the weight of rising labor costs, making companies' reported profits increasingly dependent on growth of sales. Overall profits could thus prove quite vulnerable to a period of significantly slower economic growth. Virtually all Treasury market interest rates have already fallen near to the floor set by the Federal Funds rate. This implies that further substantial interest rate drops are unlikely unless the economy weakens enough to justify action by the Fed to ease credit. MARKET OVERVIEW Measured broadly, the half-year ended June 30, 1998 was another period of solid advance for the stock market. Yet that general statement did not apply to all categories of stocks. To be sure, the S& P 500 achieved a new record of 17.72% at the end of the six-month period. The Dow Jones Industrial Average (DJIA), while it didn't reach its all-time record, nonetheless gained 14.16% for the six months, closing the half-year above 9000. Small and medium size stocks, however, underperformed the large cap issues. The Standard & Poor's MidCap 400 Index gained just 8.63% for the half-year, and the Russell 2000 index of small cap issues advanced a mere 4.93%. The first calendar quarter provided most of the strength for the six months, particularly among the large cap companies. In the April-June quarter, the S&P 500 gained 3.32% and the DJIA 2.15%, while the Russell 2000 actually dropped by 4.66%. Stock categories that were strongest during the half-year included financials, particularly banks, brokerages, insurance and diversified financial services; technology, especially communications and computer issues; and cyclical consumer stocks such as advertising, airlines, automotive, broadcasting and home construction. The weak categories for the period included precious metals, oil drilling and oilfield suppliers, and some industrial issues. Corporate profits dropped sharply from the strong pace of last year. According to the statistical service First Call, profits for stocks in the S&P 500 were expected to show a rise of just 2.3% for the second quarter, compared to 3.8% in the first quarter. Of course there were optimists forecasting a hefty rise in profits for later this year and early 1999, which could potentially propel stock prices upward. Yet most investors seemed preoccupied with the here and now, which included the strike at General Motors plants and the continuing fallout from financial troubles in Japan and Southeast Asia. As expected, the Fed at its last meeting made no change in interest rates, even though inflationary pressures are a constant worry for the Fed. The reason for their inaction may well have been the precarious state of some economies elsewhere in the world and the desire not to precipitate a major correction in the US stock market. Even so, the Fed thought it timely to issue a stern warning to banks not to become over-extended with unwise loans, which happened in the 1980s. Despite warnings like this, and that stock prices are extremely high historically in relation to earnings and cash flow, investors still appeared eager to own equities. Moreover, surveys of consumer sentiment continued to show that the average consumer was more confident about the future than had been the case in a generation. We thank you for your interest in this Dreyfus-managed Fund and look forward to continuing to serve your investment needs. Sincerely, [Steven Falci, signature logo] Portfolio Manager July 17, 1998 New York, N.Y. *Total return includes reinvestment of dividends and any capital gains paid. The Portfolio'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. ** 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.
DREYFUS STOCK INDEX FUND - ------------------------------------------------------------------------------ STATEMENT OF INVESTMENTS JUNE 30, 1998 (UNAUDITED) Shares COMMON STOCKS--96.0% Value ____________ _______________ Basic Industries--3.7% 68,300 Air Products & Chemicals $ 2,732,000 11,80 Armstrong World Industries 795,025 29,800 Avery Dennison 1,601,750 8,800 Ball 353,650 15,400 Bemis 629,475 16,300 Boise Cascade 533,825 17,200 Centex 649,300 27,900 Champion International 1,372,331 67,100 Corning 2,331,725 37,300 Crown Cork & Seal 1,771,750 65,800 Dow Chemical 6,362,038 328,500 duPont (E.I.) de Nemours & Co. 24,514,313 22,800 Eastman Chemical 1,419,300 41,900 Engelhard 848,475 10,100 (a) FMC 688,694 24,300 Fluor 1,239,300 60,600 Fort James 2,696,700 49,800 Fortune Brands 1,914,188 26,900 Georgia Pacific 1,585,419 21,600 Grace (W.R.) & Co. 368,550 17,400 Great Lakes Chemical 686,213 28,000 Hercules 1,151,500 87,800 International Paper 3,775,400 11,300 Kaufman & Broad Home 358,775 31,800 Louisiana Pacific 580,350 48,000 Masco 2,904,000 30,400 Mead 965,200 172,144 Monsanto 9,618,546 37,800 Morton International 945,000 19,300 Nalco Chemical 677,913 44,800 (a) Owens-Illinois 2,004,800 51,700 PPG Industries 3,596,381 8,400 Potlach 352,800 45,800 Praxair 2,144,013 17,800 Rohm & Haas 1,850,088 23,912 Sealed Air 878,766 50,200 Sherwin-Williams 1,662,875 29,100 Sigma-Aldrich 1,022,138 28,800 (a) Stone Container 450,000 16,400 Temple-Inland 883,550 49,400 Tenneco 1,880,288 20,200 Union Camp 1,002,425 35,800 Union Carbide 1,910,825 29,600 Westvaco 836,200 57,900 Weyerhaeuser 2,674,256 32,300 Willamette Industries 1,033,600 _______________ 100,253,710 _______________ Capital Goods--22.7% 63,900 AMP $ 2,196,563 19,900 Adobe Systems 844,506 41,200 (a) Advanced Micro Devices 702,975 8,200 Aeroquip-Vickers 478,675 56,832 Allegheny Teledyne 1,300,032 163,800 AlliedSignal 7,268,625 25,650 (a) Andrew 463,303 38,500 (a) Apple Computer 1,104,469 106,300 (a) Applied Materials 3,135,850 56,000 Ascend Communications 2,775,500 13,500 Autodesk 521,438 86,800 Automatic Data Processing 6,325,550 63,800 (a) Bay Networks 2,057,550 290,124 Boeing 12,928,651 7,200 Briggs & Stratton 269,550 53,500 Browning-Ferris Industries 1,859,125 45,900 (a) Cabletron Systems 616,781 21,800 Case 1,051,850 108,100 Caterpillar 5,715,788 235,248 (a) Cendant 4,910,802 21,000 (a) Ceridian 1,233,750 11,600 Cincinnati Milacron 282,025 295,450 (a) Cisco Systems 27,199,866 47,100 Cognizant 2,967,300 479,772 Compaq Computer 13,613,531 158,525 Computer Associates International 8,808,045 45,300 Computer Sciences 2,899,200 35,100 Cooper Industries 1,928,306 13,350 Crane 648,309 11,100 Cummins Engine 568,875 34,200 (a) DSC Communications 1,026,000 14,100 (a) Data General 210,619 72,500 Deere & Co. 3,833,438 189,500 Dell Computer 17,587,969 23,600 Deluxe 845,175 64,600 Dover 2,212,550 28,000 Dow Jones & Co 1,561,000 49,400 Dun & Bradstreet 1,784,575 13,200 EG&G 396,000 144,000 (a) EMC 6,453,000 21,200 Eaton 1,648,300 128,700 Emerson Electric 7,770,263 43,600 Equifax 1,583,225 124,300 First Data 4,140,744 11,800 Foster Wheeler 252,963 45,000 (a) Gateway 2000 2,278,125 DREYFUS STOCK INDEX FUND - ------------------------------------------------------------------------------ STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED) Shares COMMON STOCKS (continued) Value ____________ _______________ Capital Goods (continued) 51,300 General Dynamics $ 2,385,450 950,000 General Electric 86,450,000 13,700 General Signal 493,200 51,850 Genuine Parts 1,792,066 20,900 Goodrich (B.F.) 1,037,163 28,800 Grainger (W.W.) 1,434,600 122,400 HBO & Co. 4,314,600 13,900 Harnischfeger Industries 393,544 23,200 Harris 1,036,750 301,900 Hewlett-Packard 18,076,263 37,000 Honeywell 3,091,813 34,400 ITT Industries 1,285,700 39,100 Ikon Office Solutions 569,394 72,400 Illinois Tool Works 4,828,175 48,050 Ingersoll-Rand 2,117,203 474,900 Intel 35,201,963 282,200 International Business Machines 32,400,088 36,600 Interpublic Group Cos 2,221,163 24,400 Johnson Controls 1,395,375 24,400 (a) KLA-Tencor 675,575 41,100 (a) LSI Logic 947,869 56,400 Lockheed Martin 5,971,350 377,696 Lucent Technologies 31,419,586 17,500 McDermott International 602,656 61,400 (a) Micron Technology 1,523,488 706,800 (a) Microsoft 76,599,386 12,700 Millipore 346,075 118,600 Minnesota Mining & Manufacturing 9,747,438 173,300 Motorola 9,109,081 47,700 (a) National Semiconductor 629,044 12,500 National Service Industries 635,938 151,100 Northern Telecommunications 8,574,925 19,400 Northrop Grumman 2,000,625 101,900 (a) Novell 1,299,225 47,000 Omnicom Group 2,344,125 285,650 (a) Oracle 7,016,278 15,500 Owens-Corning 632,594 36,201 Pall 742,121 74,500 (a) Parametric Technology 2,020,813 32,150 Parker-Hannifin 1,225,719 14,100 Perkin-Elmer 876,844 79,400 Pitney Bowes 3,821,125 24,600 Raychem 727,238 98,300 Raytheon, Cl. B 5,811,988 Capital Goods (continued) 58,300 Rockwell International $ 2,802,044 22,200 Ryder System 700,688 22,900 Scientific-Atlanta 581,088 70,300 (a) Seagate Technology 1,674,019 73,100 Service Corp. International 3,134,163 7,600 Shared Medical Systems 558,125 54,500 (a) Silicon Graphics 660,813 17,650 Snap-On 639,813 25,900 Stanley Works 1,076,469 109,600 (a) Sun Microsystems 4,760,750 102,900 (a) 3COM 3,157,744 14,700 Tektronix 520,013 52,700 (a) Tellabs 3,774,638 113,300 Texas Instruments 6,606,806 47,700 Textron 3,419,494 46,200 (a) Thermo Electron 1,579,463 16,000 Thomas & Betts 788,000 18,300 Timken 563,869 166,100 Tyco International 10,464,300 72,400 (a) Unisys 2,045,300 67,600 United Technologies 6,253,000 132,100 Waste Management 4,623,500 94,600 Xerox 9,613,725 ________________ 616,084,176 ________________ Consumer Cyclical--12.5% 71,300 Albertson's 3,694,231 21,100 American Greetings, Cl. A 1,074,781 79,300 American Stores 1,918,069 44,200 (a) AutoZone 1,411,638 27,600 Black & Decker 1,683,600 28,900 Brunswick 715,275 206,500 CBS 6,556,375 110,900 CVS 4,318,169 188,200 Chrysler 10,609,775 28,700 Circuit City Stores 1,345,313 35,800 (a) Clear Channel Communications 3,906,675 101,300 Comcast, Cl. A 4,112,147 31,300 (a) Consolidated Stores 1,134,625 22,900 Cooper Tire and Rubber 472,313 62,200 (a) Costco Cos. 3,922,488 30,500 Dana 1,631,750 126,900 Dayton Hudson 6,154,650 43,100 Darden Restaurants 684,213 32,200 Dillard's, Cl. A 1,334,288 196,000 Disney (Walt) 20,592,250 42,300 Donnelley (R.R.) & Sons 1,935,225 DREYFUS STOCK INDEX FUND - ------------------------------------------------------------------------------ STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED) Shares COMMON STOCKS (continued) Value ____________ _______________ Consumer Cyclical (continued) 18,300 Echlin $ 897,844 60,900 (a) Federated Department Stores 3,277,181 10,600 Fleetwood Enterprises 424,000 348,300 Ford Motor 20,549,700 21,300 (a) Fruit of the Loom, Cl. A 706,894 82,300 Gannett 5,848,444 114,900 Gap 7,080,713 42,900 (a) General Instrument 1,166,344 205,300 General Motors 13,716,606 17,400 Giant Food, Cl. A 749,288 45,400 Goodyear Tire & Rubber 2,925,463 11,100 Great Atlantic & Pacific 366,994 20,500 Harcourt General 1,219,750 29,300 (a) Harrah's Entertainment 681,225 38,650 Hasbro 1,519,428 72,700 Hilton Hotel 2,071,950 212,350 Home Depot 17,638,322 11,300 Jostens 272,613 141,600 (a) K mart 2,725,800 21,400 (a) King World Productions 545,700 23,000 Knight-Ridder 1,266,438 74,000 (a) Kroger 3,172,750 65,400 Limited 2,166,375 19,400 Liz Claiborne 1,013,650 11,200 Longs Drug Stores 323,400 101,600 Lowes 4,121,150 74,100 Marriott International, Cl. A 2,398,988 84,400 Mattel 3,571,175 67,100 May Department Stores 4,395,050 27,600 Maytag 1,362,750 199,900 McDonald's 13,793,100 28,700 McGraw-Hill Cos. 2,340,844 176,200 Mediaone Group 7,741,788 10,700 Mercantile Stores 844,631 15,300 Meredith 718,144 52,100 (a) Mirage Resorts 1,110,381 25,800 Moore 341,850 21,000 (a) Navistar International 606,375 27,900 New York Times, Cl. A 2,211,075 84,400 NIKE, Cl. B 4,109,225 22,400 Nordstrom 1,730,400 22,600 PACCAR 1,180,850 72,600 Penney (J.C.) 5,249,888 18,400 Pep Boys-Manny, Moe & Jack 348,450 16,300 (a) Reebok International 451,306 Consumer Cyclical (continued) 74,800 Rite Aid $ 2,809,675 10,600 Russell 319,988 103,500 Seagram 4,237,031 113,800 Sears, Roebuck & Co. 6,948,913 5,900 Springs Industries 272,138 17,400 Supervalu 772,125 98,700 Sysco 2,529,188 93,800 TJX 2,262,925 35,800 TRW 1,955,575 30,000 Tandy 1,591,875 147,200 (a) Tele-Communications, Cl. A 5,658,000 167,900 Time Warner 14,344,956 25,700 Times Mirror, Cl. A 1,615,888 82,400 (a) Toys R Us 1,941,550 35,700 Tribune 2,456,606 44,060 (a) Tricon Global Restaurants 1,396,151 35,500 V.F 1,828,250 39,200 Venator Group 749,700 102,501 (a) Viacom, Cl. B 5,970,683 652,000 Wal-Mart Stores 39,609,000 143,800 Walgreen 5,940,738 38,400 Wendy's International 902,400 21,800 Whirlpool 1,498,750 43,200 Winn-Dixie Stores 2,211,300 ________________ 339,985,547 ________________ Consumer Staples--10.2% 16,500 Alberto-Culver, Cl. B 478,500 142,200 Anheuser-Busch 6,710,063 165,913 Archer Daniels Midland 3,214,564 38,300 Avon Products 2,968,250 83,500 Bestfoods 4,848,219 20,000 Brown-Forman, Cl. B 1,285,000 132,500 Campbell Soup 7,039,063 30,000 Clorox 2,861,250 718,000 Coca-Cola 61,389,000 85,900 Colgate-Palmolive 7,559,200 138,000 ConAgra 4,372,875 10,800 Coors (Adolph), Cl. B 367,200 94,300 Eastman Kodak 6,889,794 37,500 Ecolab 1,162,500 45,900 General Mills 3,138,413 325,200 Gillette 18,434,775 106,100 Heinz (H.J.) 5,954,863 41,500 Hershey Foods 2,863,500 31,700 International Flavors & Fragrances 1,376,969 119,300 Kellogg 4,481,206 DREYFUS STOCK INDEX FUND - ------------------------------------------------------------------------------ STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED) Shares COMMON STOCKS (continued) Value ____________ _______________ Consumer Staples (continued) 161,300 Kimberly-Clark $ 7,399,638 2,333 NACCO Industries, Cl. A 301,540 46,200 Newell 2,301,338 440,400 PepsiCo 18,138,975 703,800 Philip Morris 27,712,125 70,900 Pioneer Hi-Bred International 2,933,488 13,000 Polaroid 462,313 389,700 Procter & Gamble 35,487,056 40,200 Quaker Oats 2,208,488 31,100 Ralston Purina Group 3,632,869 43,500 Rubbermaid 1,443,656 137,400 Sara Lee 7,685,813 17,700 Tupperware 497,813 53,500 UST 1,444,500 185,800 Unilever 14,666,588 33,700 Wrigley, (Wm) Jr 3,302,600 ________________ 277,014,004 ________________ Energy--7.7% 26,600 Amerada Hess 1,444,713 282,700 Amoco 11,767,388 17,400 Anadarko Petroleum 1,169,063 27,700 Apache 872,550 21,900 Ashland 1,130,588 93,100 Atlantic Richfield 7,273,438 49,200 Baker Hughes 1,700,475 51,290 Burlington Resources 2,208,676 190,600 Chevron 15,831,713 30,800 Coastal 2,150,225 24,150 Columbia Energy Group 1,343,344 27,700 Consolidated Natural Gas 1,630,838 51,000 Dresser Industries 2,247,188 5,900 Eastern Enterprises 252,963 95,400 Enron 5,157,563 715,800 Exxon 51,045,488 76,000 Halliburton 3,386,750 14,640 Helmerich & Payne 325,740 13,800 Kerr-McGee 798,675 227,700 Mobil 17,447,513 14,000 Nicor 561,750 9,000 ONEOK 358,875 98,300 Occidental Petroleum 2,654,100 30,700 (a) Oryx Energy 679,238 13,800 Pennzoil 698,625 10,200 Peoples Energy 393,975 76,400 Phillips Petroleum 3,681,525 25,100 (a) Rowan Cos. 487,881 Energy (continued) 622,500 Royal Dutch Petroleum, A.D.R. $ 34,120,781 144,500 Schlumberger 9,871,156 67,391 Sempra Energy 1,870,100 33,300 Sonat 1,286,213 27,400 Sun 1,063,463 159,100 Texaco 9,496,281 73,644 Union Pacific Resources Group 1,293,373 71,600 Unocal 2,559,700 83,700 USX-Marathon Group 2,871,956 15,800 (a) Western Atlas 1,341,025 119,300 Williams Cos. 4,026,375 ________________ 208,501,283 ________________ Health Care--11.3% 24,800 (a) ALZA 1,072,600 444,100 Abbott Laboratories 18,152,588 18,900 Allergan 876,488 377,200 American Home Products 19,520,100 76,400 (a) Amgen 4,994,650 16,500 Bard (C.R.) 628,031 16,000 Bausch & Lomb 802,000 81,300 Baxter International 4,374,956 35,500 Becton, Dickinson & Co. 2,755,688 32,400 Biomet 1,071,225 56,500 (a) Boston Scientific 4,046,813 288,600 Bristol-Myers Squibb 33,170,963 31,800 Cardinal Health 2,981,250 187,950 Columbia/HCA Healthcare 5,474,044 43,800 Guidant 3,123,488 114,300 (a) HEALTHSOUTH 3,050,381 47,600 (a) Humana 1,484,525 390,400 Johnson & Johnson 28,792,000 322,000 Lilly (Eli) 21,272,125 21,200 Mallinckrodt Group 629,375 18,500 Manor Care 711,094 136,100 Medtronic 8,676,375 347,800 Merck & Co. 46,518,250 375,400 Pfizer 40,801,288 147,300 Pharmacia & Upjohn 6,794,213 212,500 Schering-Plough 19,470,313 26,700 (a) St. Jude Medical 982,894 88,900 (a) Tenet Healthcare 2,778,125 22,000 U.S. Surgical 1,003,750 54,700 United Healthcare 3,473,450 237,100 Warner-Lambert 16,448,813 ________________ 305,931,855 ________________ DREYFUS STOCK INDEX FUND - ------------------------------------------------------------------------------ STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED) Shares COMMON STOCKS (continued) Value ____________ _______________ Interest Sensitive--17.4% 43,099 Aetna $ 3,280,911 31,800 Ahmanson (H.F.) & Co. 2,257,800 124,500 Allstate 11,399,531 134,900 American Express 15,378,600 73,715 American General 5,247,587 203,600 American International Group 29,725,600 48,650 Aon 3,417,663 100,519 Associates First Capital, Cl. A 7,727,398 84,400 BANKBOSTON 4,694,750 41,400 BB&T 2,799,675 203,710 Banc One 11,369,564 109,300 Bank of New York 6,633,144 201,300 BankAmerica 17,399,869 28,400 Bankers Trust New York 3,296,175 32,600 Bear Stearns Cos. 1,854,125 15,400 Beneficial 2,359,088 64,500 CIGNA 4,450,500 18,800 Capital One Financial 2,334,725 244,700 Chase Manhattan 18,474,850 49,400 Chubb 3,970,525 47,800 Cincinnati Financial 1,834,325 132,600 Citicorp 19,790,550 45,700 Comerica 3,027,625 54,700 Conseco 2,557,225 31,500 Countrywide Credit Industries 1,598,625 308,000 Federal National Mortgage Association 18,711,000 76,125 Fifth Third Bancorp 4,795,875 84,500 First Chicago NBD 7,488,813 280,790 First Union 16,356,018 79,100 Fleet Financial Group 6,604,850 73,400 (a) Franklin Resources 3,963,600 201,800 Federal Home Loan Mortgage 9,497,213 22,800 General Re 5,779,800 16,500 Golden West Financial 1,754,156 39,500 Green Tree Financial 1,691,094 30,500 H&R Block 1,284,813 34,300 Hartford Financial Services Group 3,923,063 93,200 Household International 4,636,700 55,500 Huntington Bancshares 1,859,250 30,850 Jefferson Pilot 1,787,372 127,500 Keycorp 4,542,188 29,600 Lehman Brothers Holdings 2,295,850 Interest Sensitive (continued) 29,700 Lincoln National $ 2,713,838 33,400 Loews 2,909,975 28,400 MBIA 2,126,450 145,525 MBNA 4,802,325 33,100 MGIC Investment 1,888,769 73,950 Marsh & McLennan 4,469,353 73,900 Mellon Bank 5,145,288 38,100 Mercantile Bancorp 1,919,288 96,700 Merrill Lynch & Co. 8,920,575 51,600 Morgan (J.P.) 6,043,650 171,967 Morgan Stanley, Dean Witter, Discover and Co. 15,713,485 95,400 National City 6,773,400 272,971 NationsBank 20,882,282 32,400 Northern Trust 2,470,500 219,300 Norwest 8,196,338 88,500 PNC Bank 4,762,406 21,000 Progressive 2,961,000 27,600 Providian Financial 2,168,325 12,300 Pulte 367,463 31,700 Republic New York 1,995,119 48,800 SLM Holding 2,391,200 41,000 Safeco 1,862,938 77,050 Schwab (Charles) 2,504,125 66,990 St. Paul Companies 2,817,767 46,700 State Street 3,245,650 51,100 Summit Bancorp 2,427,250 56,700 SunAmerica 3,256,706 61,200 SunTrust Banks 4,976,325 76,200 Synovus Financial 1,809,750 40,600 Torchmark 1,857,450 18,200 Transamerica 2,095,275 332,924 Travelers Group 20,183,518 213,815 U.S. Bancorp 9,194,045 40,300 UNUM 2,236,650 59,800 Wachovia 5,053,100 112,065 Washington Mutual 4,867,823 25,200 Wells Fargo 9,298,800 ________________ 471,160,286 ________________ Mining And Metals--.6% 11,700 ASARCO 260,325 66,000 Alcan Aluminium 1,823,250 50,100 Aluminum Co. of America 3,303,469 31,300 (a) Armco 199,538 108,200 Barrick Gold 2,076,088 66,700 Battle Mountain Gold 396,031 37,100 (a) Bethlehem Steel 461,431 DREYFUS STOCK INDEX FUND - ------------------------------------------------------------------------------ STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED) Shares COMMON STOCKS (continued) Value ____________ _______________ Mining And Metals (continued) 27,100 Cyprus Amax Minerals $ 359,075 56,100 Freeport-McMoRan Copper, Cl. B 852,019 61,300 Homestake Mining 635,988 48,500 Inco 660,813 45,419 Newmont Mining 1,073,024 25,500 Nucor 1,173,000 17,100 Phelps Dodge 977,906 71,700 Placer Dome 842,475 21,500 Reynolds Metals 1,202,656 25,000 USX-U.S. Steel 825,000 28,100 Worthington Industries 423,256 ________________ 17,545,344 ________________ Transportation--1.1% 52,900 (a) AMR 4,403,925 45,300 Burlington Northern Santa Fe 4,447,894 63,300 CSX 2,880,150 21,700 Delta Air Lines 2,804,725 42,620 (a) FDX 2,674,405 95,400 Laidlaw 1,162,688 109,500 Norfolk Southern 3,264,469 64,100 Southwest Airlines 1,898,963 71,800 Union Pacific 3,168,175 26,500 (a) USAir Group 2,100,125 ________________ 28,805,519 ________________ Utilities--8.8% 471,500 AT&T 26,934,438 79,200 ALLTEL 3,682,800 163,800 (a) Airtouch Communications 9,572,063 39,800 Ameren 1,582,050 55,000 American Electric Power 2,495,625 317,700 Ameritech 14,256,788 42,900 Baltimore Gas & Electric 1,332,581 450,960 Bell Atlantic 20,575,050 287,900 BellSouth 19,325,288 45,800 CINergy 1,603,000 43,600 Carolina Power & Light 1,891,150 61,600 Central & Southwest 1,655,500 68,200 Consolidated Edison 3,141,463 42,100 DTE Energy 1,699,788 56,200 Dominion Resources 2,290,150 104,509 Duke Power 6,192,158 110,700 Edison International 3,272,569 70,800 Entergy 2,035,500 52,800 FPL Group 3,326,400 Utilities (continued) 66,900 FirstEnergy $ 2,057,175 47,700 Frontier 1,502,550 36,800 GPU 1,391,500 278,000 GTE 15,463,750 82,039 Houston Industries 2,532,954 202,200 MCI Communications 11,752,875 76,300 (a) NEXTEL Communications, Cl. A 1,897,963 54,200 (a) Niagara Mohawk Power 809,613 43,200 Northern States Power 1,236,600 110,600 PG&E 3,490,813 48,200 PP&L Resources 1,093,538 64,600 PECO Energy 1,885,513 86,100 PacifiCorp 1,948,013 67,300 Public Service Enterprise Group 2,317,644 532,178 SBC Communications 21,287,120 200,300 Southern 5,545,806 124,800 Sprint 8,798,400 81,330 Texas Utilities 3,385,361 144,766 US West 6,804,002 62,800 UniCom 2,201,925 294,100 (a) WorldCom 14,245,469 ________________ 238,512,945 ________________ TOTAL COMMON STOCKS (cost $1,856,693,335) $2,603,794,669 ================
Principal SHORT-TERM Amount INVESTMENTS--4.1% ____________ U.S. Treasury Bills: $20,025,000 (b) 4.89%, 7/30/1998 $ 19,949,706 64,107,000 (b) 4.88%, 9/17/1998 63,428,748 6,965,000 4.95%, 10/1/1998 6,876,475 18,622,000 4.97%, 10/8/1998 18,367,437 _______________ TOTAL SHORT-TERM INVESTMENTS (cost $108,618,848) $ 108,622,366 ================ TOTAL INVESTMENTS (cost $1,965,312,183) 100.1% $2,712,417,035 ====== ============== LIABILITIES, LESS CASH AND RECEIVABLES . (.1%) $ (2,317,913) ====== ============== NET ASSETS 100.0% $2,710,099,122 ====== ==============
DREYFUS STOCK INDEX FUND - ----------------------------------------------------------------------------- Notes to Statement of Investments: - ----------------------------------------------------------------------------- (a) Non-income producing. (b) Partially held by the custodian in a segregated account as collateral for open financial futures positions.
STATEMENT OF FINANCIAL FUTURES JUNE 30, 1998 (UNAUDITED) Market Value Unrealized Covered Apreciation Financial Futures Purchased Contracts by Contracts Expiration at 6/30/98 _________________________ ___________ ______________ ______________ ____________ Standard & Poor's 500 384 $109,728,000 September '98 $1,482,378 ============ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS STOCK INDEX FUND - ----------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1998 (UNAUDITED) Cost Value ______________ ______________ ASSETS: Investments in securities--See Statement of Investments $1,965,312,183 $2,712,417,035 Cash 5,717,878 Dividends receivable 2,527,794 Receivable for investment securities sold 400,107 Prepaid expenses 12,595 _______________ 2,721,075,409 _______________ LIABILITIES: Due to The Dreyfus Corporation and affiliates 522,910 Payable for investment securities purchased 9,476,868 Payable for futures variation margin--Note 4(a) 754,714 Accrued expenses 221,795 _______________ 10,976,287 _______________ NET ASSETS $2,710,099,122 =============== REPRESENTED BY: Paid-in capital $1,951,240,610 Accumulated distributions in excess of investment income--net (105,997) Accumulated net realized gain (loss) on investments 10,377,279 Accumulated net unrealized appreciation (depreciation) on investments (including $1,482,378 net unrealized appreciation on financial futures)--Note 4(b) 748,587,230 _______________ NET ASSETS $2,710,099,122 =============== SHARES OUTSTANDING (200 million shares of $.001 par value Common Stock authorized) 90,263,243 NET ASSET VALUE, offering and redemption price per share $30.02 ======= SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS STOCK INDEX FUND - ----------------------------------------------------------------------------- STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) INVESTMENT INCOME INCOME: Cash dividends (net of $114,297 foreign taxes withheld at source) $ 16,481,168 Interest 2,463,823 _____________ Total Income $ 18,944,991 EXPENSES: Management fee--Note 3(a) 2,808,575 Registration fees 147,973 Professional fees 32,291 Prospectus and shareholders' reports 31,901 Directors' fees and expenses--Note 3(c) 20,589 Loan commitment fees--Note 2 7,949 Miscellaneous 11,129 _____________ Total Expenses 3,060,407 _____________ INVESTMENT INCOME--NET 15,884,584 _____________ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4: Net realized gain (loss) on investments $ 2,557,340 Net realized gain (loss) on financial futures 8,883,341 _____________ Net Realized Gain (Loss) 11,440,681 Net unrealized appreciation (depreciation) on investments (including $1,503,828 net unrealized appreciation on financial futures) 332,852,143 _____________ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 344,292,824 _____________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $360,177,408 ============= SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS STOCK INDEX FUND - ----------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS Six Months Ended June 30, 1998 Year Ended (Unaudited) December 31, 1997 _________________ _________________ OPERATIONS: Investment income--net $ 15,884,584 $ 22,750,609 Net realized gain (loss) on investments 11,440,681 31,107,216 Net unrealized appreciation (depreciation) on investments 332,852,143 301,610,317 _______________ _______________ Net Increase (Decrease) in Net Assets Resulting from Operations 360,177,408 355,468,142 _______________ _______________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net (16,353,850) (22,484,033) Net realized gain on investments (4,024,845) (52,209,539) _______________ _______________ Total Dividends (20,378,695) (74,693,572) _______________ _______________ CAPITAL STOCK TRANSACTIONS: Net proceeds from shares sold 723,465,744 968,080,279 Dividends reinvested 20,378,697 74,693,572 Cost of shares redeemed (242,216,513) (268,834,713) ______________ _______________ Increase (Decrease) in Net Assets from Capital Stock Transactions 501,627,928 773,939,138 ______________ _______________ Total Increase (Decrease) in Net Assets 841,426,641 1,054,713,708 NET ASSETS: Beginning of Period 1,868,672,481 813,958,773 ______________ _______________ End of Period $2,710,099,122 $1,868,672,481 ============== =============== Undistributed investment income (Distributions in excess of investment income)--net $ (105,997) $ 363,269 ______________ _______________ Shares Shares ______________ _______________ CAPITAL SHARE TRANSACTIONS: Shares sold 25,534,315 40,703,214 Shares issued for dividends reinvested 685,490 2,981,897 Shares redeemed (8,530,817) (11,239,469) ______________ _______________ Net Increase (Decrease) in Shares Outstanding 17,688,988 32,445,642 ============== =============== 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.
Six Months Ended June 30, 1998 Year Ended December 31, ______________________________________________________ PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993 __________ ______ ______ ______ ______ ______ Net asset value, beginning of period $25.75 $20.28 $17.20 $12.94 $13.20 $15.32 ______ ______ ______ ______ ______ ______ Investment Operations: Investment income--net .18 .37 .39 .33 .32 .37 Net realized and unrealized gain (loss) on investments 4.32 6.26 3.43 4.39 (.21) 1.04 ______ ______ ______ ______ ______ ______ Total from Investment Operations 4.50 6.63 3.82 4.72 .11 1.41 ______ ______ ______ ______ ______ ______ Distributions: Dividends from investment income--net (.19) (.37) (.39) (.33) (.31) (.34) Dividends in excess of investment income--net -- -- -- -- -- (.03) Dividends from net realized gain on investments (.04) (.79) (.35) (.13) -- (3.00) Dividends in excess of net realized gain on investments -- -- -- -- (.06) (.16) ______ ______ ______ ______ ______ ______ Total Distributions (.23) (1.16) (.74) (.46) (.37) (3.53) ______ ______ ______ ______ ______ ______ Net asset value, end of period $30.02 $25.75 $20.28 $17.20 $12.94 $13.20 ====== ====== ====== ====== ====== ====== TOTAL INVESTMENT RETURN 17.51%* 32.96% 22.54% 36.78% .88% 9.33% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets .13%* .28% .30% .39% .40% .40% Ratio of net investment income to average net assets .69%* 1.66% 2.24% 2.38% 2.57% 2.38% Decrease reflected in above expense ratios due to undertakings by the Manager -- -- -- .03% .16% .27% Portfolio Turnover Rate .55%* 3.53% 10.92% 11.95% 2.82% 71.71% Net Assets, end of period (000's Omitted) $2,710,099 $1,868,672 $813,959 $312,686 $96,806 $61,319 - ----------------------------- * Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS STOCK INDEX FUND - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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. is 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. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Trustees. 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. 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 OF CREDIT: The Fund participates with other Dreyfus-managed funds in a $600 million redemption credit facility (" Facility" ) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the Fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the Fund at rates based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 1998, the Fund did not borrow under the Facility. DREYFUS STOCK INDEX FUND - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 undertaken from January 1, 1998 until such a time as they give shareholders at least 180 days notice to the contrary that if any full fiscal year the Fund's aggregate expenses (exclusive of brokerage commissions, transaction fees, commitment 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. During the period ended June 30, 1998, there was no expense reimbursement pursuant to the Investment Advisory Agreement. (B) Under the 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. 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. During the period ended June 30, 1998, the Fund was charged $213 pursuant to the transfer agency agreement. (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 and financial futures, during the period ended June 30, 1998 amounted to $461,251,750 and $12,153,964, 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. 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. Typically, 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 June 30, 1998 are set forth in the Statement of Financial Futures. (B) At June 30, 1998, accumulated net unrealized appreciation on investments and financial futures was $748,587,230, consisting of $776,017,971 gross unrealized appreciation and $27,430,741 gross unrealized depreciation. At June 30, 1998, 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). [reg.tm] [reg.tm] 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. 763SA986 Stock Index Fund Semi-Annual Report June 30, 1998 -----END PRIVACY-ENHANCED MESSAGE-----