-----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, Nxg4UEyFtx6wrupgHLMeDmH7y+riKW6Iw6eqPTDHy0PT/t7xzUegVYcm4LSEcJlj A52A2kigwuaInlKDutgHnA== 0000857114-05-000009.txt : 20050630 0000857114-05-000009.hdr.sgml : 20050630 20050630113622 ACCESSION NUMBER: 0000857114-05-000009 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 18 CONFORMED PERIOD OF REPORT: 20050430 FILED AS OF DATE: 20050630 DATE AS OF CHANGE: 20050630 EFFECTIVENESS DATE: 20050630 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS INDEX FUNDS INC CENTRAL INDEX KEY: 0000857114 IRS NUMBER: 133554128 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05883 FILM NUMBER: 05927303 BUSINESS ADDRESS: STREET 1: THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226850 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS S&P 500 INDEX FUND DATE OF NAME CHANGE: 19951228 FORMER COMPANY: FORMER CONFORMED NAME: PEOPLES INDEX FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS STOCK INDEX FUND INC DATE OF NAME CHANGE: 19900401 N-CSR 1 form.htm FORM NCSR-073 form
    UNITED STATES 
    SECURITIES AND EXCHANGE COMMISSION 
    Washington, D.C. 20549 
 
 
    FORM N-CSR 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
    INVESTMENT COMPANIES 
 
Investment Company Act file number 811-5883 
 
    Dreyfus Index Funds, Inc. 
    (Exact name of Registrant as specified in charter) 
 
 
    c/o The Dreyfus Corporation 
    200 Park Avenue 
    New York, New York 10166 
    (Address of principal executive offices) (Zip code) 
 
    Mark N. Jacobs, Esq. 
    200 Park Avenue 
    New York, New York 10166 
    (Name and address of agent for service) 
 
Registrant's telephone number, including area code: (212) 922-6000 
 
Date of fiscal year end:    10/31 
 
Date of reporting period:    04/30/2005 


FORM N-CSR

Item 1. Reports to Stockholders.


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

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

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


    Contents 
 
    THE FUND 


2    Letter from the Chairman 
3    Discussion of Fund Performance 
6    Understanding Your Fund’s Expenses 
6    Comparing Your Fund’s Expenses 
    With Those of Other Funds 
7    Statement of Investments 
25    Statement of Financial Futures 
26    Statement of Assets and Liabilities 
27    Statement of Operations 
28    Statement of Changes in Net Assets 
29    Financial Highlights 
30    Notes to Financial Statements 
37    Information About the Review and Approval 
    of the Fund’s Management Agreement 
    FOR MORE INFORMATION 


    Back Cover 


Dreyfus 
Smallcap Stock Index Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Smallcap Stock Index Fund, covering the six-month period from November 1, 2004, through April 30, 2005. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager,Tom Durante, CFA.

The six-month reporting period produced mixed results for U.S. stocks across most market-capitalization ranges. After rallying strongly in the weeks after the November 2004 presidential election, equities gave back most of their gains as rising energy prices and higher interest rates took their toll on investor sentiment during the first few months of 2005.

According to our economists, recent market turbulence probably is the result of a transition to a more mature phase of the economic cycle; one that typically is characterized by higher interest rates and slowing corporate profit growth. In this current market environment, we believe it is important to maintain a long-term investment perspective, and your financial advisor can help you decide what adjustments, if any, you should make to your investment portfolio.

Thank you for your continued confidence and support.

2

DISCUSSION OF FUND PERFORMANCE

Tom Durante, CFA, Portfolio Manager

For the six-month period ended April 30, 2005, Dreyfus Smallcap Stock Index Fund produced a total return of 2.39% .1 The Standard & Poor’s SmallCap 600 Index (the “S&P 600 Index”) produced a 2.57% return for the same period.2,3

We attribute the fund and market’s performance to investor’s changing economic expectations. Stock market gains achieved primarily during the first half of the reporting period were followed by relatively lackluster returns during the second half of the reporting period.The difference in return between the fund and the S&P 600 Index was primarily due to the fund’s sampling strategy, transaction costs and other fund operating expenses.

What is the fund’s investment approach?

The fund seeks to match the total return of the S&P 600 Index. To reach this goal, the fund generally invests in a representative sample of the stocks listed in the S&P 600 Index.While the fund generally owns the vast majority of the stocks in the S&P 600 Index, some very small, less liquid stocks may be excluded from the portfolio. Often considered a barometer for the small-cap stock market in general, the S&P 600 Index is composed of 600 domestic stocks across 10 economic sectors. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 600 Index than smaller ones.The fund may also use stock index futures as a substitute for the sale or purchase of stocks.

As an index fund, the fund uses a passive management approach: all investment decisions are made based on the composition of the S&P 600 Index.The fund does not attempt to manage market volatility.

How did Dreyfus Smallcap Stock Index Fund perform relative to its benchmark?

The Fund 3


DISCUSSION OF FUND PERFORMANCE (continued)

Small-cap stocks are often those of new and entrepreneurial companies and tend to grow faster than large-cap companies.They also typically use any profits for expansion rather than for paying dividends. Compared to larger, more established companies, small companies are subject to more erratic market movements and may carry additional risks because, among other things, their revenues and earnings also tend to be less predictable. As a result, their stocks tend to be less liquid and more volatile.

What other factors influenced the fund’s performance?

When the reporting period began, the U.S. economy was growing stronger due to low interest rates, strong consumer confidence and higher levels of capital spending among businesses. These factors helped fuel a post-election stock market rally, which persisted through the end of 2004. By February 2005, however, the U.S. economy appeared to hit a “soft patch,” and investors became concerned that rising short-term interest rates and higher energy prices might begin to constrain economic growth. As a result, investor sentiment shifted from smaller, faster-growing companies to shares of larger companies with track records of stable and predictable earnings under a broad range of economic conditions.This shift in sentiment hurt the smaller, less established and entrepreneurial companies that comprise the S&P 600 Index.

In this changing investment environment, the producer goods and services sector produced some of the stronger gains of the reporting period. Companies in the home construction, mining, industrial parts and heavy machinery industries posted especially positive results due to strong global economic growth and rising demand for these companies’ goods and services.Within the health care sector, medical service providers and HMOs fared well in a business environment characterized by greater pricing power and lower costs.A number of the smaller, niche health care companies in the S&P 600 Index also performed well, including a senior living center, a medical device company, a manufacturer of digital X-ray parts and a company whose devices protect health care workers and

4

patients from the spread of blood diseases. Energy stocks also helped fuel performance, an area in which almost all companies represented in the benchmark posted positive returns for the reporting period.

Only the technology and financials areas reported negative absolute returns. While technology stocks suffered across the board, electronic equipment and semiconductor companies bore the brunt of the sector’s weakness. Finally, in the financials sector, banks and thrifts were hurt by rising interest rates, which put pressure on their home mortgage businesses.

What is the fund’s current strategy?

As an index fund, our strategy is to replicate the returns of the small-cap market as represented by the S&P 600 Index.Accordingly, the percentage of the fund’s assets invested in each market sector closely approximates its representation in the S&P 600 Index.While small-cap stocks may involve greater risk than larger-cap stocks, in our view, an investment in a broadly diversified small-cap index fund, such as Dreyfus Smallcap Stock Index Fund, can help investors seek to manage stock market risk by limiting the impact on the overall portfolio of unexpected losses in any single industry group or holding.

May 16, 2005
1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price and investment return fluctuate such that upon redemption, 
    fund shares may be worth more or less than their original cost. Return figure provided reflects the 
    absorption of fund expenses by The Dreyfus Corporation pursuant to an agreement in effect that 
    may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s return 
    would have been lower. 
2    SOURCE: LIPPER INC. — Reflects the reinvestment of dividends and, where applicable, 
    capital gain distributions.The Standard & Poor’s SmallCap 600 Index is a broad-based index 
    and a widely accepted, unmanaged index of overall small-cap stock market performance. 
3    Standard & Poor’s®,”“S&P®,” and “Standard & Poor’s SmallCap 600 Index” are trademarks 
    of The McGraw-Hill Companies, Inc., and have been licensed for use by the fund.The fund is 
    not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no 
    representation regarding the advisability of investing in the fund. 

The Fund 5


U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )

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

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Smallcap Stock Index Fund from November 1, 2004 to April 30, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment assuming actual returns for the six months ended April 30, 2005

Expenses paid per $1,000     $ 2.51 
Ending value (after expenses)    $1,023.90 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2005

Expenses paid per $1,000     $ 2.51 
Ending value (after expenses)    $1,022.32 

Expenses are equal to the fund’s annualized expense ratio of .50%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS
April 30, 2005 (Unaudited)
Common Stocks—99.7%    Shares    Value ($) 



Consumer Cyclical—16.6%         
Action Performance Cos.    16,400 a    173,676 
Albany International, Cl. A    38,900    1,219,904 
Angelica    15,000    404,700 
Applica    22,500 b    52,425 
Arctic Cat    24,400    577,792 
Argosy Gaming    37,100 b    1,704,374 
Ashworth    12,400 b    136,276 
Aztar    37,600 b    1,026,856 
Bally Total Fitness Holdings    25,200 b    80,136 
Bassett Furniture    16,700    327,988 
Brown Shoe    23,600    729,240 
Burlington Coat Factory Warehouse    40,000    1,102,000 
CEC Entertainment    44,625 b    1,615,425 
CPI    8,100    133,083 
Casey’s General Stores    62,600    1,056,688 
Cato, Cl. A    29,200    750,440 
Children’s Place Retail Stores    24,500 b    911,645 
Christopher & Banks    39,075    610,352 
Coachmen Industries    12,500    143,625 
Cost Plus    21,300 b    493,947 
Department 56    23,100 b    301,224 
Dress Barn    31,200 b    536,640 
Electronics Boutique Holdings    21,300 b    1,187,049 
Enesco Group    7,300 b    40,953 
Ethan Allen Interiors    43,300    1,304,629 
Fedders    13,670 a    27,203 
Finish Line, Cl. A    52,400    944,248 
Fleetwood Enterprises    55,900 a,b    427,076 
Fossil    69,325 b    1,612,500 
Fred’s    38,800    560,272 
Frontier Airlines    33,600 b    326,256 
GameStop, Cl. B    59,900 b    1,398,066 
Genesco    30,800 b    792,484 
Goody’s Family Clothing    40,000    330,000 
Great Atlantic & Pacific    36,200 a,b    567,616 
Group 1 Automotive    26,600 b    668,990 

The Fund 7


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Consumer Cyclical (continued)         
Guitar Center    32,200 b    1,589,070 
Gymboree    29,000 b    331,470 
Haggar    7,200    139,680 
Hancock Fabrics    15,800    93,536 
Haverty Furniture    32,900    472,115 
Hibbett Sporting Goods    34,200 b    922,374 
Hot Topic    50,000 a,b    999,500 
IHOP    24,200    989,780 
Insight Enterprises    54,200 b    981,020 
Interface, Cl. A    47,900 b    287,400 
J. Jill Group    23,700 b    297,198 
JAKKS Pacific    35,700 b    670,803 
Jack in the Box    45,500 b    1,663,480 
Jo-Ann Stores    31,960 b    808,588 
K-Swiss    40,500    1,215,000 
K2    50,000 b    636,000 
Kellwood    33,300    850,482 
Landry’s Restaurants    30,000    780,000 
La-Z Boy    59,100 a    699,744 
Linens ‘n Things    52,300 b    1,220,159 
Lone Star Steakhouse & Saloon    28,300    802,305 
Longs Drug Stores    43,000    1,563,050 
Marcus    38,400    735,360 
Men’s Wearhouse    43,000 b    1,774,610 
Mesa Air Group    47,700 a,b    254,241 
Midas    21,600 b    466,992 
Monaco Coach    34,450    488,501 
Movie Gallery    36,000    973,080 
Multimedia Games    28,300 a,b    223,853 
NBTY    74,000 b    1,577,680 
National Presto Industries    7,300    284,700 
Nautilus Group    43,600 a    1,083,896 
O’Charleys    26,500 b    528,410 
OshKosh B’Gosh    16,400    432,140 
Oshkosh Truck    44,400 a    3,336,660 
Oxford Industries    19,500    714,090 
P.F. Chang’s China Bistro    30,600 a,b    1,698,912 

8


Common Stocks (continued)    Shares    Value ($) 



Consumer Cyclical (continued)         
Panera Bread, Cl. A    36,100 a,b    1,805,722 
Papa John’s International    18,300 b    627,324 
Pep Boys-Manny, Moe & Jack    63,000 a    893,340 
Phillips-Van Heusen    35,700    923,916 
Pinnacle Entertainment    38,600 b    585,176 
Polaris Industries    53,500    3,079,460 
Quiksilver    70,500 b    1,942,275 
RARE Hospitality International    39,050 b    1,086,371 
Russ Berrie & Co.    24,000    310,320 
Russell    36,700    642,617 
Ryan’s Restaurant Group    50,300 b    637,804 
SCP Pool    64,730    2,108,903 
School Specialty    28,900 b    1,072,479 
Select Comfort    44,300 a,b    979,916 
ShopKo Stores    37,000 b    886,520 
Shuffle Master    40,473 a,b    1,019,515 
SkyWest    68,400    1,236,672 
Sonic    73,955 b    2,369,518 
Sonic Automotive    49,200    967,764 
Stage Stores    22,400 b    847,168 
Standard Motor Products    21,700    197,036 
Steak n Shake    33,278 b    601,666 
Stein Mart    47,300 a,b    958,298 
Stride Rite    45,200    551,440 
Sturm Ruger    32,500    214,500 
Superior Industries International    29,200 a    593,636 
TBC    27,400 b    716,784 
Too    44,500 b    1,023,945 
Toro    56,400    2,330,448 
Tractor Supply    42,600 a,b    1,713,372 
Triarc, Cl. B    68,800 a    883,392 
WMS Industries    31,200 a,b    792,480 
Wabash National    38,400    979,200 
Winnebago Industries    38,500 a    1,121,890 
Wolverine World Wide    72,850    1,478,127 
Zale    62,300 b    1,683,969 
        96,724,620 

The Fund 9


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Consumer Staples—2.4%         
American Italian Pasta, Cl. A    18,200 a    430,612 
Corn Products International    94,000    2,069,880 
DIMON    54,300 a    323,085 
Delta & Pine Land    44,233    1,114,672 
Flowers Foods    51,650    1,489,586 
Hain Celestial Group    38,000 b    674,500 
J & J Snack Foods    13,400    655,930 
Lance    40,600    669,088 
Libbey    16,300    285,739 
Nash Finch    18,300    647,271 
Nature’s Sunshine Products    19,100    286,309 
Performance Food Group    52,000 b    1,398,280 
Ralcorp Holdings    35,900    1,422,358 
Sanderson Farms    20,800    753,792 
United Natural Foods    42,300 b    1,133,640 
WD-40    19,800    555,192 
        13,909,934 
Energy—8.8%         
American States Water    17,050    433,070 
Atmos Energy    99,300    2,611,590 
Atwood Oceanics    17,800 b    1,015,846 
Cabot Oil & Gas    58,450    1,720,768 
Cal Dive International    48,600 b    2,161,728 
Carbo Ceramics    17,300    1,148,374 
Cascade Natural Gas    10,500    196,665 
Cimarex Energy    52,600 a,b    1,867,300 
Dril-Quip    18,000 b    524,700 
Energen    46,000    2,849,700 
Frontier Oil    35,100    1,477,008 
Hydril    27,800 b    1,462,280 
Laclede Group    26,400    722,568 
New Jersey Resources    33,000    1,430,880 
Northwest Natural Gas    33,200    1,178,600 
Oceaneering International    31,100 b    1,020,391 
Patina Oil & Gas    86,850    3,335,040 
Penn Virginia    19,900    817,293 

10


Common Stocks (continued)    Shares    Value ($) 



Energy (continued)         
Petroleum Development    21,900 b    560,640 
Piedmont Natural Gas    93,000 a    2,134,350 
Remington Oil & Gas    36,500 b    1,064,705 
St. Mary Land & Exploration    74,000    1,605,800 
Southern Union    116,041 b    2,778,012 
Southwest Gas    41,300    1,010,611 
Southwestern Energy    42,890 b    2,519,788 
Spinnaker Exploration    35,500 b    1,136,355 
Stone Energy    31,100 b    1,397,634 
Swift Energy    33,900 b    892,587 
TETRA Technologies    24,950 b    674,398 
UGI    63,900    3,209,697 
Unit    51,000 b    1,956,360 
Veritas DGC    40,400 b    1,034,240 
Vintage Petroleum    75,000    2,166,750 
W-H Energy Services    33,900 b    746,478 
        50,862,206 
Health Care—11.8%         
AMERIGROUP    62,900 b    2,209,048 
Accredo Health    56,525 b    2,560,583 
Advanced Medical Optics    44,500 a,b    1,645,610 
Alpharma, Cl. A    69,000    651,360 
Amedisys    19,700 b    591,197 
American Healthways    39,000 a,b    1,456,650 
American Medical Systems Holdings    80,000 b    1,396,800 
AmSurg    35,300 b    913,917 
ArQule    39,200 b    205,800 
ArthroCare    28,700 a,b    843,206 
BioLase Technology    17,600 a    115,808 
Biosite    20,400 a,b    1,162,800 
Bradley Pharmaceuticals    20,000 a,b    178,800 
CONMED    37,000 a,b    1,099,640 
Cambrex    33,000    627,000 
Connetics    43,800 b    951,774 
Cooper Cos.    52,400    3,539,620 
Cyberonics    25,500 b    961,095 

The Fund 11


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Health Care (continued)         
DJ Orthopedics    23,900 b    601,085 
Datascope    20,000    574,400 
Diagnostic Products    34,500    1,673,250 
Enzo Biochem    38,617 b    525,963 
Haemonetics    32,500 b    1,390,025 
Hologic    24,400 b    868,152 
Hooper Holmes    76,000    278,160 
ICU Medical    16,400 a,b    581,052 
IDEXX Laboratories    42,000 b    2,383,080 
Immucor    55,400 b    1,653,136 
Integra LifeSciences Holdings    29,500 b    1,045,185 
Intermagnetics General    30,375 b    746,010 
Invacare    38,300    1,568,768 
Kensey Nash    14,000 a,b    384,720 
LCA-Vision    23,000    901,370 
LabOne    21,500 b    754,220 
MGI Pharma    82,700 b    1,823,535 
Medicis Pharmaceutical, Cl. A    66,000    1,854,600 
Mentor    43,800    1,607,460 
Merit Medical Systems    29,800 b    376,970 
Noven Pharmaceuticals    26,100 b    434,043 
OCA    67,400 a,b    273,644 
Odyssey Healthcare    42,150 b    481,774 
Osteotech    14,500 b    37,410 
Owens & Minor    48,300    1,401,183 
Pediatrix Medical Group    29,800 b    2,029,082 
Pharmaceutical Product Development    65,000 b    2,949,700 
PolyMedica    33,500    1,038,165 
Possis Medical    20,000 b    177,200 
Priority Healthcare, Cl. B    43,618 b    993,618 
Regeneron Pharmaceuticals    53,500 b    297,460 
RehabCare Group    20,800 b    624,416 
ResMed    40,700 b    2,527,470 
Respironics    44,000 b    2,780,360 
SFBC International    19,400 b    605,280 
Savient Pharmaceuticals    74,900 b    206,724 

12


Common Stocks (continued)    Shares    Value ($) 



Health Care (continued)         
Sierra Health Services    34,600 a,b    2,238,274 
Sunrise Senior Living    24,200 a,b    1,240,008 
SurModics    22,000 b    793,540 
Sybron Dental Specialties    49,999 b    1,862,463 
Theragenics    35,000 b    122,850 
United Surgical Partners International    34,900 b    1,544,325 
Viasys Healthcare    37,000 b    785,880 
Vital Signs    15,200    620,160 
        68,766,878 
Interest Sensitive—15.1%         
Anchor Bancorp Wisconsin    27,000    713,340 
BankAtlantic Bancorp, Cl. A    64,000    1,091,840 
BankUnited Financial, Cl. A    36,000    859,680 
Boston Private Financial Holdings    33,600    750,624 
Brookline Bancorp    73,000    1,095,000 
CRT Properties    37,600    868,184 
Capital Automotive    50,200    1,705,796 
Cash America International    36,100    536,085 
Centene    50,300 b    1,400,855 
Chittenden    52,037    1,306,649 
Colonial Properties Trust    49,300    1,905,445 
Commercial Federal    46,200    1,206,282 
Commercial Net Lease Realty    64,000    1,214,720 
Community Bank System    37,000    818,810 
Delphi Financial Group, Cl. A    37,517    1,557,706 
Dime Community Bancshares    37,350    554,274 
Downey Financial    31,280    2,024,754 
East West Bancorp    64,000    2,055,680 
Entertainment Properties Trust    31,200    1,347,840 
Essex Property Trust    27,900    2,119,005 
Financial Federal    21,700    766,010 
First Bancorp    50,250    1,822,065 
First Midwest Bancorp    54,274    1,772,589 
First Republic Bank    32,250    1,009,102 
FirstFed Financial    20,200 b    1,022,726 
Flagstar Bancorp    55,000    1,047,200 

The Fund 13


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Interest Sensitive (continued)         
Fremont General    88,000    1,908,720 
Gables Residential Trust    35,500    1,301,075 
Glenborough Realty Trust    43,800    899,652 
Gold Banc    43,300    598,839 
Hilb, Rogal & Hamilton    42,400    1,484,424 
Hudson United Bancorp    55,680    1,907,597 
Infinity Property & Casualty    27,400    889,130 
Investment Technology Group    48,300 b    918,183 
ipayment Holdings    12,600 b    458,514 
Irwin Financial    29,500    592,065 
Kilroy Realty    33,000    1,439,790 
LandAmerica Financial Group    22,100    1,096,160 
Lexington Corporate Properties Trust    61,000 a    1,401,780 
MAF Bancorp    38,800    1,566,744 
NCO Group    39,500 b    735,885 
Nara Bancorp    28,700    385,728 
New Century Financial    62,650    2,847,442 
Parkway Properties    17,500    798,000 
Philadelphia Consolidated Holdings    25,500 b    1,912,500 
Piper Jaffray    25,000 a,b    691,250 
Presidential Life    38,400    557,184 
PrivateBancorp    26,900    840,625 
ProAssurance    36,000 a,b    1,350,360 
Provident Bankshares    39,524    1,157,263 
RLI    28,300    1,214,070 
Republic Bancorp    86,578    1,097,809 
Rewards Network    33,500 b    165,825 
Riggs National    32,000 b    624,960 
SWS Group    23,471    342,677 
Selective Insurance Group    33,300 a    1,470,195 
Shurgard Storage Centers, Cl. A    53,200    2,225,356 
South Financial Group    85,000    2,243,150 
Southwest Bancorporation of Texas    85,200    1,414,320 
Sovran Self Storage    20,200    863,550 
Sterling Bancshares    52,000    698,360 
Sterling Financial    28,190 b    921,531 

14


Common Stocks (continued)    Shares    Value ($) 



Interest Sensitive (continued)         
Stewart Information Services    22,500    810,450 
Susquehanna Bancshares    58,600    1,232,358 
Trustco Bank    93,844    1,033,222 
UCBH Holdings    112,800    1,774,344 
UICI    54,000    1,253,880 
Umpqua Holdings    53,600    1,190,992 
United Bankshares    51,300    1,570,806 
Whitney Holding    50,980    2,307,865 
Wintrust Financial    26,300 a    1,207,433 
World Acceptance    22,800 b    580,260 
Zenith National Insurance    24,000    1,380,240 
        87,934,824 
Producer Goods & Services—22.2%         
A. Schulman    36,900    616,230 
A.M. Castle    18,700 b    223,465 
A.O. Smith    30,250    862,125 
AAR    32,950 b    485,353 
AMCOL International    35,300    674,583 
Acuity Brands    51,300    1,226,583 
Aleris International    31,078 b    666,934 
Apogee Enterprises    35,300    454,664 
Applied Industrial Technologies    35,650    994,635 
AptarGroup    43,700    2,107,651 
Arch Chemicals    30,400    783,712 
Arkansas Best    32,500    1,024,725 
Armor Holdings    41,000 b    1,435,410 
Astec Industries    23,900 b    556,870 
Baldor Electric    40,733    1,014,252 
Barnes Group    27,300    784,875 
Belden CDT    54,812 a    1,005,252 
Brady, Cl. A    57,400    1,701,910 
Briggs & Stratton    62,600 a    2,026,362 
Brush Engineered Materials    18,900 b    270,459 
Buckeye Technologies    34,300 b    270,970 
Building Materials Holding    16,100    884,534 
C&D Technologies    26,100    183,483 

The Fund 15


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Producer Goods & Services (continued)         
CLARCOR    32,150    1,627,112 
CUNO    19,300 b    978,896 
Caraustar Industries    33,000 b    295,020 
Carpenter Technology    32,000    1,769,600 
Century Aluminum    33,400 b    778,220 
Champion Enterprises    74,099 b    699,495 
Chesapeake    28,000    543,760 
Cleveland-Cliffs    24,800 a    1,438,648 
Commercial Metals    72,800    1,857,128 
Cubic    20,000    351,800 
Curtiss-Wright    28,100    1,523,020 
DRS Technologies    33,000 b    1,460,250 
Deltic Timber    16,300    577,835 
EDO    23,900    712,937 
EGL    54,000 b    1,053,540 
ElkCorp    22,700    624,250 
Emcor Group    18,100 b    808,708 
Engineered Support Systems    51,950    1,834,874 
Florida Rock Industries    48,225    2,800,908 
Forward Air    42,250    1,016,535 
Gardner Denver    30,500 a,b    1,114,470 
GenCorp    56,700    1,077,867 
Georgia Gulf    43,500    1,605,585 
Griffon    36,600 b    702,354 
H.B. Fuller    36,400    1,103,648 
Headwaters    48,600 a,b    1,553,742 
Heartland Express    79,456    1,473,114 
Hughes Supply    81,700    2,132,370 
IDEX    62,400    2,324,400 
Insituform Technologies, Cl. A    26,000 b    387,660 
JLG Industries    59,000 a    1,202,420 
Kaman, Cl. A    31,300    403,144 
Kansas City Southern    94,600 b    1,789,832 
Kaydon    34,100    935,704 
Kirby    29,800 b    1,214,052 
Knight Transportation    56,300    1,189,619 

16


Common Stocks (continued)    Shares    Value ($) 



Producer Goods & Services (continued)         
Landstar System    75,500 b    2,314,075 
Lawson Products    10,500    404,565 
Lennox International    69,000    1,348,950 
Lindsay Manufacturing    10,800    201,528 
Lone Star Technologies    33,400 b    1,300,596 
Lydall    16,900 b    151,086 
M.D.C. Holdings    46,744    3,056,123 
MacDermid    36,100    1,095,635 
MagneTek    22,700 b    82,174 
Manitowoc    34,475    1,379,000 
Massey Energy    91,200    3,293,232 
Material Sciences    16,500 b    202,455 
Maverick Tube    50,100 b    1,457,409 
Meritage Homes    29,000 b    1,835,410 
Milacron    25,026 b    52,555 
Moog, Cl. A    48,975 b    1,459,945 
Mueller Industries    49,200    1,274,280 
Myers Industries    39,309    377,759 
NVR    7,100 b    5,100,285 
Neenah Paper    19,700    592,773 
OM Group    36,900 b    809,586 
Offshore Logistics    27,500 b    796,675 
Omnova Solutions    28,000 b    113,400 
Penford    10,900    156,960 
PolyOne    110,500 b    853,060 
Pope & Talbot    21,000    274,050 
Quaker Chemical    8,500    165,665 
Quanex    33,650    1,697,979 
RTI International Metals    26,600 b    598,234 
Rayovac    50,400 b    1,836,576 
Regal Beloit    37,000    978,650 
Reliance Steel & Aluminum    39,100    1,475,243 
Robins & Myers    17,000    370,600 
Rock-Tenn, Cl. A    43,300    439,495 
Rogers    19,100 b    659,714 
Ryerson Tull    23,300 a    243,485 

The Fund 17


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Producer Goods & Services (continued)         
SEACOR Holdings    21,150 b    1,205,761 
Schweitzer-Mauduit International    15,500    452,910 
Simpson Manufacturing    51,000    1,377,000 
Skyline    11,800    425,980 
Standard Pacific    42,500    3,043,425 
Standex International    14,800    387,760 
Steel Technologies    15,100    289,769 
Stewart & Stevenson Services    33,700    808,800 
Technitrol    45,100    585,398 
Teledyne Technologies    44,100 b    1,341,522 
Texas Industries    26,200    1,209,916 
Thomas Industries    17,250    680,857 
Timken    112,900    2,804,436 
Tredegar    47,500    772,350 
Triumph Group    20,000 b    622,600 
URS    47,400 b    1,457,550 
USF    31,000    1,321,530 
United Stationers    40,500 b    1,708,290 
Universal Forest Products    21,400    814,484 
Valmont Industries    28,500    662,910 
Watsco    33,200    1,440,548 
Watts Water Technologies    34,000    1,062,500 
Wausau-Mosinee Paper    63,000    836,010 
Wellman    32,700    351,852 
Wilson Greatbatch Technologies    21,500 b    412,370 
Wolverine Tube    10,000 b    65,000 
Woodward Governor    15,400    1,086,624 
        128,894,913 
Services—7.5%         
ABM Industries    56,000    1,017,520 
ADVO    37,250    1,073,172 
Aaron Rents    53,397    1,172,598 
Administaff    32,900    449,743 
Arbitron    38,500    1,629,320 
Boston Communications Group    21,300 b    118,428 
Bowne & Co.    42,200    549,444 

18


Common Stocks (continued)    Shares    Value ($) 



Services (continued)         
CACI International, Cl. A    36,500 b    2,267,380 
CDI    22,500    497,475 
Central Parking    34,810    569,143 
Cerner    40,500 a,b    2,351,430 
Chemed    15,399 a    1,090,865 
Ciber    70,700 b    550,046 
Consolidated Graphics    16,500 b    757,350 
Cross Country Healthcare    39,000 b    628,290 
Daktronics    22,700 b    462,172 
Digital Insight    42,100 b    844,947 
eFunds    59,400 b    1,298,484 
4Kids Entertainment    16,500 b    332,640 
FactSet Research Systems    51,000    1,415,760 
FindWhat.com    35,000 b    294,700 
G & K Services, Cl. A    25,500    978,690 
Gentiva Health Services    33,000 b    646,140 
Global Payments    43,620    2,824,831 
Healthcare Services Group    16,000    404,000 
Heidrick & Struggles International    25,400 b    656,844 
Insurance Auto Auction    13,300 b    375,060 
Intrado    21,000 b    264,810 
John H. Harland    34,600    1,245,600 
Kronos    40,550 b    1,583,478 
Labor Ready    52,050 b    868,715 
MAXIMUS    26,500    813,550 
ManTech International, Cl. A    31,300 b    752,765 
Mobile Mini    15,000 b    525,900 
NDCHealth    34,000    519,180 
On Assignment    7,000 b    30,100 
PAREXEL International    32,300 b    588,829 
PRG-Schultz International    48,650 b    232,061 
Paxar    46,425 b    831,936 
Pegasus Solutions    17,600 b    188,144 
Pre-Paid Legal Services    21,700 a    774,907 
Shaw Group    89,200 b    1,611,844 
Sourcecorp    18,000 b    321,300 

The Fund 19


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Services (continued)         
Spherion    60,300 b    338,283 
Standard Register    31,500    392,805 
StarTek    17,800    258,990 
TALX    25,500    630,360 
Tetra Tech    60,856 b    644,465 
Thomas Nelson    18,800    450,824 
Vertrue    9,700 a,b    294,977 
Viad    26,000    669,500 
Volt Information Sciences    16,400 b    324,392 
Waste Connections    58,450 b    2,058,609 
Watson Wyatt & Company Holdings    40,200    1,061,280 
        43,534,076 
Technology—13.6%         
ANSYS    39,500 b    1,202,380 
ATMI    47,000 b    1,077,005 
Actel    29,500 b    413,885 
Adaptec    127,700 b    467,382 
Advanced Energy Industries    35,000 b    370,300 
Aeroflex    83,100 b    658,983 
Agilysys    44,000    581,680 
Alliance Semiconductor    19,600 b    30,968 
Altiris    31,600 a,b    514,764 
Analogic    17,100    713,241 
Anixter International    44,200 b    1,631,864 
Applied Signal Technology    13,400    261,434 
Artesyn Technologies    47,400 b    334,170 
Audiovox, Cl. A    23,900 b    326,474 
Avid Technology    42,300 b    2,094,273 
Axcelis Technologies    135,500 b    841,455 
BEI Technologies    17,300    397,900 
Bel Fuse, Cl. B    17,600    472,560 
Bell Microproducts    38,300 b    306,400 
Benchmark Electronics    50,000 b    1,352,000 
Black Box    23,600    767,472 
Brooks Automation    51,500 b    662,290 
Brooktrout    16,100 b    158,424 
C-COR    54,000 b    356,940 

20


Common Stocks (continued)    Shares    Value ($) 



Technology (continued)         
CTS    41,700    439,935 
Captaris    37,100 b    135,786 
Carreker    31,300 b    141,476 
Catapult Communications    18,400 b    271,952 
Ceradyne    27,700 b    550,122 
Checkpoint Systems    53,000 b    838,990 
Cognex    55,000    1,201,200 
Coherent    36,200 b    1,161,296 
Cohu    26,000    464,100 
Coinstar    30,500 b    522,770 
Concord Communications    15,400 b    253,330 
Cymer    42,700 b    1,058,533 
DSP Group    33,800 b    814,580 
Dendrite International    50,300 b    775,626 
Digi International    29,000 b    308,850 
Dionex    26,450 b    1,136,028 
Ditech Communications    39,300 b    444,483 
EPIQ Systems    21,600 a,b    327,672 
ESS Technology    46,200 b    177,408 
Electro Scientific Industries    34,500 b    570,285 
Esterline Technologies    30,700 b    992,224 
Exar    49,100 b    623,079 
FEI    35,100 b    632,853 
FLIR Systems    84,300 b    2,242,380 
FileNet    51,100 b    1,354,150 
Gerber Scientific    33,800 b    239,304 
Global Imaging Systems    29,400 b    1,019,886 
Harmonic    71,900 b    396,169 
Helix Technology    31,500    379,417 
Hutchinson Technology    30,300 b    1,122,312 
Hyperion Solutions    49,375 b    2,008,081 
Imagistics International    19,500 b    523,575 
Input/Output    77,100 b    465,684 
Inter-Tel    34,800    662,592 
Internet Security Systems    54,500 b    1,060,025 
Itron    24,300 b    876,501 
JDA Software Group    32,800 b    335,872 

The Fund 21


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Technology (continued)         
j2 Global Communications    30,000 a,b    1,071,600 
Keithley Instruments    20,200    280,578 
Kopin    63,000 b    193,410 
Kulicke & Soffa Industries    62,600 b    319,886 
Littelfuse    27,400 b    738,156 
MICROS Systems    47,200 b    1,871,480 
MRO Software    30,900 b    395,211 
MTS Systems    28,100    813,776 
Manhattan Associates    36,000 b    679,680 
MapInfo    24,500 b    277,585 
Meade Instruments    28,500 b    84,360 
Mercury Computer Systems    25,300 b    666,149 
Methode Electronics, Cl. A    45,600    513,912 
Microsemi    66,400 b    1,123,488 
NETGEAR    26,800 b    432,284 
NYFIX    35,500 b    187,795 
Napster    49,700 a,b    284,284 
Network Equipment Technologies    23,000 b    118,450 
PC-Tel    24,300 b    175,932 
Park Electrochemical    28,250    625,738 
Pericom Semiconductor    23,000 b    192,740 
Phoenix Technologies    32,400 b    262,116 
Photon Dynamics    15,100 b    292,185 
Photronics    46,600 b    740,940 
Pinnacle Systems    69,580 b    346,508 
Planar Systems    16,000 a,b    123,360 
Power Integrations    38,000 b    826,500 
Progress Software    45,300 b    1,208,604 
Radiant Systems    29,600 b    254,560 
RadiSys    23,300 b    326,200 
Roper Industries    51,400    3,478,238 
Rudolph Technologies    14,400 b    185,760 
SBS Technologies    17,300 b    162,793 
SPSS    21,300 b    342,717 
ScanSource    15,100 b    698,375 
Serena Software    42,000 a,b    799,260 

22


Common Stocks (continued)    Shares    Value ($) 



Technology (continued)         
Skyworks Solutions    180,400 b    945,296 
Sonic Solutions    31,500 a,b    462,735 
Standard Microsystems    30,400 b    430,160 
Supertex    22,900 b    326,554 
Symmetricom    54,950 b    565,985 
Synaptics    30,400 b    551,152 
THQ    46,350 a,b    1,168,947 
Take-Two Interactive Software    84,400 a,b    1,985,932 
Tollgrade Communications    13,400 b    94,604 
Trimble Navigation    65,000 b    2,237,300 
Ultratech    22,100 b    351,832 
Varian Semiconductor Equipment Associates    45,900 b    1,711,611 
Veeco Instruments    30,000 b    399,300 
Verity    44,500 b    364,900 
ViaSat    27,600 b    491,556 
Vicor    42,500    501,500 
WebEx Communications    49,000 b    1,069,180 
Websense    30,400 b    1,612,720 
X-Rite    27,000    279,990 
Zix    24,200 a,b    66,550 
        79,235,184 
Utilities—1.7%         
ALLETE    35,300    1,470,951 
Avista    60,000    1,007,400 
CH Energy Group    19,900    848,735 
Central Vermont Public Service    16,000    337,760 
Cleco    58,700    1,198,654 
Commonwealth Telephone Enterprises    25,800 b    1,198,668 
El Paso Electric    57,500 b    1,121,825 
General Communication, Cl. A    64,000 b    540,160 
Green Mountain Power    5,400    161,190 
UIL Holdings    18,200    934,388 
UniSource Energy    41,300    1,290,625 
        10,110,356 
Total Common Stocks         
(cost $497,428,602)        579,972,991 

The Fund 23


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

    Principal     
Short-Term Investments—.2%    Amount ($)    Value ($) 



Repurchase Agreement—.1%         
Greenwich Capital Markets, Tri-Party Repurchase Agreement,     
2.84%, dated 4/29/2005, due 5/02/2005 in the     
amount of $ 800,189 (fully collateralized by     
$780,000 of Federal Home Loan Mortgage Corp., 5%,     
7/15/2014, value $819,192)    800,000    800,000 
U.S. Treasury Bill-.1%         
2.61%, 6/9/2005    250,000 c    249,308 
Total Short-Term Investments         
(cost $1,049,270)        1,049,308 



 
Investment of Cash Collateral         
for Securities Loaned—7.2%    Shares    Value ($) 



Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $41,833,002)    41,833,002 d    41,833,002 



 
Total Investments (cost $540,310,874)    107.1%    622,855,301 
Liabilities, Less Cash and Receivables    (7.1%)    (41,506,204) 
Net Assets    100.0%    581,349,097 

a All or a portion of these securities are on loan. At April 30, 2005, the total market value of the fund’s securities on 
loan is $40,320,357 and the total market value of the collateral held by the fund is $41,833,002. 
b Non-income producing. 
c Partially held by the broker in a segregated account as collateral for open financial futures positions. 
d Investment in affiliated money market mutual fund. 

Portfolio Summary (Unaudited)         
 
    Value (%)        Value (%) 




Producer Goods & Services    22.2    Short Term/     
Consumer Cyclical    16.6    Money Market Instruments    7.4 
Interest Sensitive    15.1    Consumer Staples    2.4 
Technology    13.6    Utilities    1.7 
Health Care    11.8    Futures Contracts    (.0) 
Energy    8.8         
Services    7.5        107.1 
 
Based on net assets.             
See notes to financial statements.             

24


STATEMENT OF FINANCIAL FUTURES

April 30, 2005 (Unaudited)

        Market Value        Unrealized 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 4/30/2005 ($) 





Financial Futures Long                 
Russell 2000 E-mini    15    871,350    June 2005    (10,810) 
Russell 2000    1    290,450    June 2005    (16,050) 
                (26,860) 

See notes to financial statements.

The Fund 25


STATEMENT OF ASSETS AND LIABILITIES

April 30, 2005 (Unaudited)

    Cost    Value 



Assets ($):         
Investments in securities—See Statement         
of Investments (including securities on loan,     
valued at $40,320,357)—Note 1(b):         
Unaffiliated issuers    498,477,872    581,022,299 
Affiliated issuers    41,833,002    41,833,002 
Cash        645,627 
Receivable for shares of Common Stock subscribed    591,888 
Receivable for investment securities sold        377,154 
Dividends and interest receivable        304,685 
Receivable for futures variation margin—Note 4    18,559 
        624,793,214 



Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    245,290 
Liability for securities on loan—Note 1(b)        41,833,002 
Payable for investment securities purchased    1,023,168 
Payable for shares of Common Stock redeemed    342,657 
        43,444,117 



Net Assets ($)        581,349,097 



Composition of Net Assets ($):         
Paid-in capital        499,839,622 
Accumulated undistributed investment income—net    996,051 
Accumulated net realized gain (loss) on investments    (2,004,143) 
Accumulated net unrealized appreciation         
(depreciation) on investments [including ($26,860)     
net unrealized (depreciation) on financial futures]    82,517,567 


Net Assets ($)        581,349,097 



Shares Outstanding         
(200 million shares of $.001 par value Common Stock authorized)    30,972,674 
Net Asset Value, offering and redemption price per share—Note 3(c) ($)    18.77 

See notes to financial statements.
26

STATEMENT OF OPERATIONS
Six Months Ended April 30, 2005 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends (net of $1,149 foreign taxes withheld at source)    2,748,516 
Income from securities lending    135,095 
Interest    42,095 
Total Income    2,925,706 
Expenses:     
Management fee—Note 3(a)    711,051 
Shareholder servicing costs—Note 3(b)    711,051 
Loan commitment fees—Note 2    2,594 
Interest expense—Note 2    340 
Total Expenses    1,425,036 
Investment Income—Net    1,500,670 


Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    1,984,623 
Net realized gain (loss) on financial futures    146,169 
Net Realized Gain (Loss)    2,130,792 
Net unrealized appreciation (depreciation)     
on investments [including ($56,235) net     
unrealized (depreciation) on financial futures]    2,977,965 
Net Realized and Unrealized Gain (Loss) on Investments    5,108,757 
Net Increase in Net Assets Resulting from Operations    6,609,427 

See notes to financial statements.

The Fund 27


STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 



Operations ($):         
Investment income—net    1,500,670    2,358,579 
Net realized gain (loss) on investments    2,130,792    13,678,114 
Net unrealized appreciation         
(depreciation) on investments    2,977,965    39,677,338 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    6,609,427    55,714,031 



Dividends to Shareholders from ($):         
Investment income—net    (2,599,744)    (899,274) 
Net realized gain on investments    (14,620,303)     
Total Dividends    (17,220,047)    (899,274) 



Capital Stock Transactions ($):         
Net proceeds from shares sold    200,492,778    262,829,833 
Dividends reinvested    15,943,127    707,153 
Cost of shares redeemed    (102,122,530)    (117,659,086) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    114,313,375    145,877,900 
Total Increase (Decrease) in Net Assets    103,702,755    200,692,657 



Net Assets ($):         
Beginning of Period    477,646,342    276,953,685 
End of Period    581,349,097    477,646,342 
Undistributed investment income—net    996,051    2,095,125 



Capital Share Transactions (Shares):         
Shares sold    10,028,032    14,861,346 
Shares issued for dividends reinvested    788,162    42,651 
Shares redeemed    (5,101,324)    (6,641,176) 
Net Increase (Decrease) in Shares Outstanding    5,714,870    8,262,821 

See notes to financial statements.
28

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

    Six Months Ended                     
    April 30, 2005        Year Ended October 31,     



        (Unaudited)    2004    2003    2002    2001    2000 








Per Share Data ($):                         
Net asset value,                         
beginning of period    18.91    16.30    12.36    12.98    15.49    13.03 
Investment Operations:                         
Investment income—net a    .05    .11    .06    .04    .04    .03 
Net realized and unrealized                         
gain (loss) on investments    .45    2.55    3.95    (.53)    (1.06)    3.06 
Total from Investment Operations    .50    2.66    4.01    (.49)    (1.02)    3.09 
Distributions:                         
Dividends from investment                         
income—net    (.10)    (.05)    (.04)    (.04)    (.03)    (.04) 
Dividends from net realized                         
gain on investments    (.54)        (.03)    (.09)    (1.46)    (.59) 
Total Distributions    (.64)    (.05)    (.07)    (.13)    (1.49)    (.63) 
Net asset value, end of period    18.77    18.91    16.30    12.36    12.98    15.49 







Total Return (%)    2.39b    16.35    32.63    (3.92)    (6.95)    24.64 







Ratios/Supplemental Data (%):                         
Ratio of total expenses                         
to average net assets    .25b    .50    .50    .50    .51    .51 
Ratio of net investment income                         
to average net assets    .26b    .67    .44    .30    .28    .21 
Portfolio Turnover Rate    5.37b    15.54    13.52    12.35    42.01    36.89 







Net Assets, end of period                         
($ x 1,000)    581,349    477,646    276,954    161,889    83,182    59,628 
 
a    Based on average shares outstanding at each month end.                 
b    Not annualized.                         
See notes to financial statements.                         

The Fund 29


NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus Smallcap Stock Index Fund (the “fund”) is a separate non-diversified series of Dreyfus Index Funds, Inc. (the “Company”) which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering three series including the fund.The fund’s investment objective is to match the performance of the Standard & Poor’s Small Cap 600 Index.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

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

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value,

30

such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

(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 and premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the fund may lend securities to qualified insti-tutions.At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager.The fund will be entitled to receive all income on securities loaned, in addition to income earned as a result of the leading transaction. Such income earned is included in interest income. Although each security loaned is fully collateralized, the fund would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

The Fund 31


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, the fund, through its custodian and sub-custodian, takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the fund’s holding period.This arrangement results in a fixed rate of return that is not subject to market fluctuations during the fund’s holding period.The value of the collateral is at least equal, at all times, to the total amount of the repurchase obligation, including interest. In the event of a counter party default, the fund has the right to use the collateral to offset losses incurred. There is potential loss to the fund in the event the fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the fund seeks to assert its rights. The Manager, acting under the supervision of the Board of Directors, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the fund enters into repurchase agreements to evaluate potential risks.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the

32

best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2004, were as follows: ordinary income $899,274.The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “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 based on prevailing market rates in effect at the time of borrowings.

The average daily amount of borrowings outstanding under the Facility during the period ended April 30, 2005, was approximately $26,500 with a related weighted average annualized interest rate of 2.59% .

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Management Agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .25 of 1% of the value of the fund’s average daily net assets, and is payable monthly. Under the terms of the Agreement, the Manager has agreed to pay all the expenses of the fund, except management fees, brokerage commissions, taxes, interest, commitment fees, Shareholder Services Plan fees, fees and expenses of non-interested Board members (including counsel fees) and extraordinary expenses. In addition, the Manager is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board members (including counsel fees). Each Board member also serves as a Board member of other funds within the Dreyfus complex (collec-

The Fund 33


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

tively, the “Fund Group”). Each Board member receives an annual fee of $25,000, an attendance fee of $4,000 for each in-person meeting and $500 for telephone meetings.The chairman of the Board receives an additional 25% of such compensation (with the exception of reimburseable amounts). Subject to the Company’s Emeritus Program Guidelines, Emeritus Board Members, if any, receive 50% of the annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status.Amounts required to be paid by the Company directly to the non-interested Board members, that were applied to offset a portion of the management fee payable to the Manager, were in fact paid directly by the Manager to the non-interested Board members. All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services at the annual rate of .25 of 1% of the value of the fund’s average daily net assets. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, bank or other financial institution) in respect of these services.The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2005, the fund was charged an aggregate of $711,051 pursuant to the Shareholder Services Plan.

The components of Due to The Dreyfus Corporation and affiliates in the Statements of Assets and Liabilities consist of: management fees $122,645 and shareholders services plan fees $122,645.

(c) A 1% redemption fee is charged and retained by the fund on certain shares redeemed within six months following the date of issuance, including redemptions made through the use of the fund’s exchange privilege. During the period ended April 30, 2005, redemption fees charged and retained by the fund amounted to $9,956.

34

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended April 30, 2005, amounted to $129,539,844 and $30,351,389, 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. 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 broker, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at April 30, 2005, are set forth in the Statement of Financial Futures.

At April 30, 2005, accumulated net unrealized appreciation on investments was $82,544,427, consisting of $118,324,129 gross unrealized appreciation and $35,779,702 gross unrealized depreciation.

At April 30, 2005, the cost of investment for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

NOTE 5—Legal Matters:

In early 2004, two purported class and derivative actions were filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC, and certain directors of the Dreyfus Funds and the Dreyfus Founders Funds (together, the “Funds”) in the United States District Court for the Western District of Pennsylvania. In September

The Fund 35


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

2004, plaintiffs served a Consolidated Amended Complaint (the “Amended Complaint”) on behalf of a purported class of all persons who acquired interests in any of the Funds between January 30, 1999 and November 17, 2003, and derivatively on behalf of the Funds.The Amended Complaint in the newly styled In re Dreyfus Mutual Funds Fee Litigation also named the Distributor, Premier Mutual Fund Services, Inc. and two additional Fund directors as defendants and alleges violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Pennsylvania Unfair Trade Practices and Consumer Protection Law and common-law claims. Plaintiffs seek to recover allegedly improper and excessive Rule 12b-1 and advisory fees allegedly charged to the Funds for marketing and distribution services. More specifically, plaintiffs claim, among other things, that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend the Funds over other funds, and that such payments were not disclosed to investors. In addition, plaintiffs assert that economies of scale and soft-dollar benefits were not passed on to the Funds. Plaintiffs further allege that 12b-1 fees were improperly charged to certain of the Funds that were closed to new investors.The Amended Complaint seeks compensatory and punitive damages, rescission of the advisory contracts, and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. As noted, some of the claims in this litigation are asserted derivatively on behalf of the Funds that have been named as nominal defendants.With respect to such derivative claims, no relief is sought against the Funds. Dreyfus believes the allegations to be totally without merit and intends to defend the action vigorously. Defendants filed motions to dismiss the Amended Complaint on November 12, 2004, and those motions are pending.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Funds believe that any of the pending actions will have a material adverse effect on the Funds or Dreyfus’ ability to perform its contract with the Funds.

36

INFORMATION ABOUT THE REVIEW 
AND APPROVAL OF THE FUND’S 
INVESTMENT MANAGEMENT AGREEMENT (Unaudited) 

At a meeting of the Board of Directors held on March 14,2005,the Board considered the re-approval for another one-year term of the fund’s Management Agreement (the “Management Agreement”), pursuant to which the Manager provides the fund with investment advisory and administrative services. The Board members who are not “interested persons” (as defined in the Act (the “Independent Directors”)) of the fund were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent and Quality of Services Provided to the Fund. The Board members received a presentation from representatives of the Manager regarding services provided to the fund and other funds in the Dreyfus complex, and discussed the nature, extent and quality of the services provided to the fund pursuant to its Management Agreement.The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships the Manager has with various intermediaries and the different needs of each.The Manager’s representatives noted the diversity of distribution of the Fund as well as the distribution of other funds in the Dreyfus complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each of the fund’s distribution channels.The Board also reviewed the number of shareholder accounts in the fund, as well as the fund’s asset size.

The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day Fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure.

Comparative Analysis of the Fund’s Performance, Management Fee and Expense Ratio. The Board members reviewed the fund’s performance, management fee and expense ratio and placed significant emphasis on comparisons to a group of comparable funds and Lipper averages, and discussed the results of the comparisons.The Board members noted that

The Fund 37


I N FO R M AT I O N A B O U T T H E R E V I E W A N D A P P R OVA L O F T H E F U N D ’ S 
I N V E S T M E N T M A N A G E M E N T A G R E E M E N T ( U n a u d i t e d ) ( c o n t i n u e d ) 

the Fund’s performance as measured by total return was consistent with the total return of the S&P SmallCap 600 Index, and that the slight variations were due primarily to fees. The Board members also noted the fund’s performance as measured by total return was above the comparison group and Lipper category averages for the one-,three-,and five-year periods ended January 31, 2005.

The Board members reviewed the range of management fees, advisory fee and expense ratios, noting that the fund’s management fee was lower than a majority of the funds in the comparison group, and that the fund’s expense ratio was lower than that of the fund’s comparison group and Lipper category averages.The Board members also considered the fund’s primary distribution channel,and the fees charged,and services provided, by financial intermediaries offering the fund in that channel.The Board members noted that, as a “unitary fee” fund, the Manager has voluntarily agreed to pay all of the fund’s expenses, except management fees, brokerage commissions,taxes,interest,fees and expenses of non interested Board members, fees and expenses of independent counsel to the fund and to the non-interested Board members, Shareholder Services Plan fees, and extraordinary expenses.The Board also noted that the Manager voluntarily agreed to reduce its management fee in an amount equal to the Fund’s allocable portion of the accrued fees and expenses of non-interested Board members and fees and expenses of independent counsel to the fund and to the non-interested Board members.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates (the “Similar Funds”) and by separate accounts, or mutual funds for which the Manager or its affiliates serve as sub-investment adviser, with similar investment objectives, policies and strategies as the Fund (“Separate Accounts” and, collectively with the Similar Funds, the “Similar Accounts”) and explained the nature of each Similar Account and the differences, from the Manager’s perspective, in managing and providing other services to the Similar Accounts as compared to management of the fund.The Manager’s representatives also reviewed the costs associated with distribution of the fund and Similar Accounts

38

through intermediaries.The Board analyzed differences in fees paid to the Manager and discussed the relationship of the fees paid in light of the Manager’s performance and the services provided. Noting the Fund’s “unitary fee” structure, the Board members concluded that the Similar Funds had advisory fees and expense ratios that were higher than the fund’s management fee and expense ratio and the Separate Accounts had advisory fees that were lower than the fund’s management fee. A representative of the Manager stated that certain Similar Accounts had lower advisory fees as a result of historical pricing arrangements and other Similar Accounts were mutual funds that were sub-advised but not administered by an affiliate of the Manager. The Board members considered the relevance of the fee information provided for the Separate Accounts to evaluate the appropriateness and reasonableness of the fund’s management fee.The Board acknowledged that differences in fees paid by the Separate Accounts seemed to be consistent with the management and other services provided.

Analysis of Profitability and Economies of Scale.The Manager’s representatives reviewed the dollar amount of expenses allocated to, and profit received by, the Manager and the method used to determine such expenses and profit.The Board members evaluated the analysis in light of the relevant circumstances for the fund, the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund investors. The Board members also considered potential benefits to the Manager from acting as investment adviser and noted that the Manager had no soft dollar arrangement with respect to the fund.

It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Manager, including the nature, extent and quality of such services and that a discussion of economies of scale is predicated on increasing assets and that, if a fund’s assets had been decreasing, the possibility that the Manager may have realized any economies of scale would be less.It also was noted that the profitability per-

The Fund 39


I N FO R M AT I O N A B O U T T H E R E V I E W A N D A P P R OVA L O F T H E F U N D ’ S 
I N V E S T M E N T M A N A G E M E N T A G R E E M E N T ( U n a u d i t e d ) ( c o n t i n u e d ) 

centage for managing the fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and given the fund’s overall performance and generally superior service levels provided.

At the conclusion of these discussions, each of the Independent Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on their discussions and considerations as described above, the Board made the following conclusions and determinations.

  • The Board concluded that the nature, extent and quality of the services provided by the Manager are adequate and appropriate.
  • The Board was satisfied with the fund’s overall performance.
  • The Board concluded that the fee paid to the Manager was reason- able in light of comparative performance and expense and advisory fee information, costs of the services provided and profits realized, or to be realized, and benefits derived or to be derived by the Manager from its relationship with the fund.
  • The Board recognized that economies of scale may be realized as the fund’s assets increase and determined that, to the extent that material economies of scale had not been shared with the fund, the Board would seek to do so.

The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.

40

For More    Information 


 
Dreyfus    Transfer Agent & 
Smallcap Stock    Dividend Disbursing Agent 
Index Fund    Dreyfus Transfer, Inc. 
200 Park Avenue    200 Park Avenue 
New York, NY 10166    New York, NY 10166 
Manager    Distributor 
The Dreyfus Corporation    Dreyfus Service Corporation 
200 Park Avenue    200 Park Avenue 
New York, NY 10166    New York, NY 10166 
Custodian     
Boston Safe Deposit and     
Trust Company     
One Boston Place     
Boston, MA 02109     


 
Telephone 1-800-645-6561     

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

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

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.



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

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

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


    Contents 
 
    THE FUND 


2    Letter from the Chairman 
3    Discussion of Fund Performance 
6    Understanding Your Fund’s Expenses 
6    Comparing Your Fund’s Expenses 
    With Those of Other Funds 
7    Statement of Investments 
22    Statement of Financial Futures 
23    Statement of Assets and Liabilities 
24    Statement of Operations 
25    Statement of Changes in Net Assets 
26    Financial Highlights 
27    Notes to Financial Statements 
35    Information About the Review and Approval 
    of the Fund’s Management Agreement 
    FOR MORE INFORMATION 


    Back Cover 


Dreyfus 
S&P 500 Index Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus S&P 500 Index Fund, covering the six-month period from November 1, 2004, through April 30, 2005. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager,Tom Durante, CFA.

The six-month reporting period produced mixed results for U.S. stocks across most market-capitalization ranges. After rallying strongly in the weeks after the November 2004 presidential election, equities gave back most of their gains as rising energy prices and higher interest rates took their toll on investor sentiment during the first few months of 2005.

According to our economists, recent market turbulence probably is the result of a transition to a more mature phase of the economic cycle; one that typically is characterized by higher interest rates and slowing corporate profit growth. In this current market environment, we believe it is important to maintain a long-term investment perspective, and your financial advisor can help you decide what adjustments, if any, you should make to your investment portfolio.

Thank you for your continued confidence and support.

2

DISCUSSION OF FUND PERFORMANCE

Tom Durante, CFA, Portfolio Manager 
How did Dreyfus S&P 500 Index Fund perform relative to its 
benchmark? 

For the six-month period ended April 30, 2005, the fund produced a total return of 3.05% .1 The Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), the fund’s benchmark, produced a 3.28% return for the same period.2,3

We attribute the fund and market’s performance to investors’ changing economic expectations. Stock market gains achieved in the wake of the U.S. presidential election during the first half of the reporting period were followed by relatively lackluster returns during the second half of the reporting period.The difference in return between the fund and S&P 500 Index was primarily the result of transaction costs and other operating expenses that are not reflected by the S&P 500 Index.

What is the fund’s investment approach?

The fund seeks to match the total return of the S&P 500 Index.To pursue this goal, the fund generally invests in all 500 stocks in the S&P 500 Index in proportion to their weighting in the S&P 500 Index. Often considered a barometer for the stock market in general, the S&P 500 Index is made up of 500 widely held common stocks across 10 economic sectors.The S&P 500 Index is dominated by large-cap, blue-chip stocks that comprise nearly 75% of total U.S. market capitalization.

However, it is important to note that the S&P 500 Index is not composed of the 500 largest companies; rather, it is designed to reflect the industries of the U.S. economy. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 500 Index than smaller ones. The fund may also use stock index futures as a substitute for the sale or purchase of stocks.

As an index fund, the fund uses a passive management approach; all investment decisions are made based on the composition of the S&P 500 Index.The fund does not attempt to manage market volatility.

The Fund 3


DISCUSSION OF FUND PERFORMANCE (continued)

What other factors influenced the fund’s performance?

When the reporting period began, the U.S. economy was growing stronger due to low interest rates, strong consumer confidence and higher levels of capital spending among businesses. In addition, the resolution of the U.S. presidential election lifted a cloud of uncertainty from the economy and financial markets. These factors helped fuel a stock market rally that persisted through the end of 2004. By February 2005, however, the economy appeared to hit a “soft patch,” and investors became concerned that rising short-term interest rates and higher energy prices might constrain economic growth further.

In this changing investment environment, investor sentiment shifted from smaller, faster-growing companies to shares of larger companies with track records of stable and predictable earnings under a broad range of economic conditions. As a result, the large-cap stocks in the S&P 500 Index generally produced higher returns than smaller-cap stocks for the first extended period in several years.

The fund’s strongest gains during the reporting period stemmed from its energy holdings, which benefited from higher commodity prices as rising demand from China and other emerging markets was met by limited supplies of oil and gas. Large integrated energy companies, such as industry leader Exxon Mobil, produced particularly strong results.

The fund also received strong contributions to performance from the health care sector, where medical providers, HMOs and hospitals fared well.These companies benefited from greater pricing power and lower costs. In addition, as more workers found employment in the recovering economy, HMO enrollment trends improved, helping to boost revenues and earnings.

Consumer staples stocks benefited during the reporting period from investors’ increasing preference for value-oriented stocks over more growth-oriented shares. Companies that sell home goods, food, beverages and tobacco products to consumers tend to offer attractive dividends and produce stable, predictable returns regardless of economic conditions. In addition, tobacco companies, such as Altria Group, gained value as litigation concerns eased.

4

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On the other hand, technology stocks produced generally disappointing returns over the reporting period as investors turned away from the more growth-oriented parts of the market. Electronic equipment and Internet companies bore the brunt of the sector’s weakness. Automobile companies also lost value as the industry’s business fundamentals deteriorated in the rising interest-rate environment. Finally, in the consumer cyclicals area, large warehouse-type retailers, such as Wal-Mart Stores, were hurt by higher gasoline costs, which left their customer base with less disposable income. However, luxury retailers, whose customers generally have higher incomes, fared relatively well.

What is the fund’s current strategy?

As an index fund, our strategy is to attempt to replicate the returns of the S&P 500 Index. Accordingly, as of April 30, 2005, the percentage of the fund’s assets invested in each industry group closely approximated its representation in the S&P 500 Index. In our view, an investment in a broadly diversified index fund, such as Dreyfus S&P 500 Index Fund, can help investors seek to manage stock market risk by limiting the impact on the overall portfolio of unexpected losses in any single industry group or holding.

May 16, 2005
1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price and investment return fluctuate such that upon redemption, 
    fund shares may be worth more or less than their original cost. Return figure provided reflects the 
    absorption of fund expenses by The Dreyfus Corporation pursuant to an agreement in effect that 
    may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s return 
    would have been lower. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of dividends daily and, where applicable, 
    capital gain distributions.The Standard & Poor’s 500 Composite Stock Price Index is a widely 
    accepted, unmanaged index of U.S. stock market performance. 
3    “Standard & Poor’s®,”“S&P®,”“Standard & Poor’s 500” and “S&P 500®” are trademarks of 
    The McGraw-Hill Companies, Inc., and have been licensed for use by the fund.The fund is not 
    sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no 
    representation regarding the advisability of investing in the fund. 

The Fund 5


U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )

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

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus S&P 500 Index Fund from November 1, 2004 to April 30, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment assuming actual returns for the six months ended April 30, 2005

Expenses paid per $1,000     $ 2.52 
Ending value (after expenses)    $1,030.50 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2005

Expenses paid per $1,000     $ 2.51 
Ending value (after expenses)    $1,022.32 

Expenses are equal to the fund’s annualized expense ratio of .50%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS
April 30, 2005 (Unaudited)
Common Stocks—98.6%    Shares    Value ($) 



Consumer Cyclical—8.6%         
Albertson’s    110,172 a    2,180,304 
Autonation    67,600 b    1,235,052 
AutoZone    20,300 b    1,684,900 
Bed Bath & Beyond    90,600 b    3,371,226 
Best Buy    89,350 a    4,497,879 
Big Lots    33,800 b    344,084 
Brunswick    29,000    1,218,000 
CVS    119,800    6,179,284 
Circuit City Stores—Circuit City Group    57,300    905,340 
Coach    114,400 b    3,065,920 
Cooper Tire & Rubber    21,000    366,450 
Costco Wholesale    141,400    5,738,012 
Dana    44,959    513,432 
Darden Restaurants    44,250    1,327,500 
Delphi    167,969    554,298 
Delta Air Lines    41,900 a,b    137,851 
Dillard’s, Cl. A    21,100    490,997 
Dollar General    90,208    1,835,733 
Eastman Kodak    85,800    2,145,000 
Eaton    45,800    2,686,170 
Family Dollar Stores    50,200    1,354,396 
Federated Department Stores    50,700    2,915,250 
Ford Motor    548,092    4,993,118 
Gap    237,325    5,066,889 
General Motors    169,100 a    4,511,588 
Genuine Parts    52,300    2,243,670 
Harley-Davidson    87,400 a    4,109,548 
Harrah’s Entertainment    34,100    2,237,642 
Hasbro    50,000    946,000 
Hilton Hotels    115,200    2,514,816 
Home Depot    657,403    23,252,344 
International Game Technology    103,300    2,777,737 
J. C. Penney    80,900    3,835,469 
Johnson Controls    57,200    3,138,564 
Jones Apparel Group    36,600    1,114,470 
Kohl’s    97,600 b    4,645,760 
Kroger    219,200 b    3,456,784 

The Fund 7


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Consumer Cyclical (continued)         
Limited Brands    114,400    2,481,336 
Liz Claiborne    32,500    1,151,475 
Lowe’s Cos.    231,300 a    12,053,043 
Marriott International, Cl. A    60,200    3,777,550 
Mattel    124,700    2,250,835 
May Department Stores    87,450    3,067,746 
Maytag    23,800 a    230,622 
McDonald’s    380,800    11,161,248 
NIKE, Cl. B    68,800    5,284,528 
Navistar International    19,700 b    581,741 
Nordstrom    37,700    1,916,291 
Office Depot    93,600 b    1,832,688 
OfficeMax    28,000    909,440 
PACCAR    51,950    3,527,405 
RadioShack    47,400 a    1,183,578 
Reebok International    16,800 a    682,248 
Safeway    134,000 b    2,852,860 
Sears Holdings    28,762    3,889,773 
Southwest Airlines    220,518    3,281,308 
Staples    222,375    4,240,691 
Starbucks    119,600 a,b    5,922,592 
Starwood Hotels & Resorts Worldwide    63,600    3,456,024 
TJX Cos.    144,300    3,268,395 
Target    268,100    12,439,840 
Tiffany & Co.    43,600    1,314,540 
Toys R Us    64,400 b    1,632,540 
V. F.    29,900    1,692,041 
Visteon    38,815    135,852 
Wal-Mart Stores    1,014,200    47,809,388 
Walgreen    305,800    13,167,748 
Wendy’s International    34,100    1,463,913 
Whirlpool    20,000 a    1,241,200 
Yum! Brands    87,220    4,095,851 
        277,587,807 
Consumer Staples—8.0%         
Alberto-Culver, Cl. B    25,400    1,130,300 
Altria Group    619,300    40,248,307 

8


Common Stocks (continued)    Shares        Value ($) 




Consumer Staples (continued)             
Anheuser-Busch Cos.    232,600        10,901,962 
Archer-Daniels-Midland    186,560        3,356,214 
Avon Products    141,172        5,658,174 
Brown-Forman, Cl. B    27,000        1,498,500 
Campbell Soup    97,500        2,899,650 
Clorox    45,900        2,905,470 
Coca-Cola    678,200        29,461,008 
Coca-Cola Enterprises    105,600        2,143,680 
Colgate-Palmolive    157,300        7,831,967 
ConAgra Foods    154,300    a    4,127,525 
Fortune Brands    43,400        3,670,772 
General Mills    109,300        5,399,420 
Gillette    296,800        15,326,752 
H. J. Heinz    104,800        3,861,880 
Hershey Foods    65,500        4,185,450 
International Flavors & Fragrances    26,500    a    1,004,350 
Kellogg    105,100        4,724,245 
Kimberly-Clark    144,100        8,999,045 
McCormick & Co.    40,600        1,404,354 
Molson Coors Brewing, Cl. B    24,100    a    1,488,175 
Newell Rubbermaid    82,262    a    1,787,553 
Pactiv    44,400    b    951,936 
Pepsi Bottling Group    59,200        1,697,264 
PepsiCo    502,400        27,953,536 
Procter & Gamble    755,200        40,894,080 
Reynolds American    34,900    a    2,721,153 
SUPERVALU    40,400    a    1,275,024 
Sara Lee    236,300        5,054,457 
Sysco    190,700        6,598,220 
UST    49,500        2,267,100 
Wm. Wrigley Jr.    58,600        4,051,018 
            257,478,541 
Energy—8.6%             
Amerada Hess    25,500    a    2,388,075 
Anadarko Petroleum    70,932        5,180,873 
Apache    97,750    a    5,502,348 
BJ Services    48,600        2,369,250 

The Fund 9


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Energy (continued)         
Baker Hughes    101,190 a    4,464,503 
Burlington Resources    115,790    5,628,552 
ChevronTexaco    629,936    32,756,672 
ConocoPhillips    208,320    21,842,352 
Devon Energy    143,500    6,481,895 
Dynegy, Cl. A    99,100 b    331,985 
EOG Resources    71,500    3,399,825 
El Paso    192,575    1,923,824 
Exxon Mobil    1,911,476    109,011,476 
Halliburton    151,000    6,280,090 
Kerr-McGee    48,865    3,791,924 
KeySpan    48,100    1,824,433 
Kinder Morgan    32,900 a    2,515,534 
Marathon Oil    103,900    4,838,623 
Nabors Industries    42,400 b    2,284,088 
National-Oilwell Varco    50,200 a,b    1,994,948 
Nicor    13,200 a    488,004 
NiSource    81,200    1,887,088 
Noble    40,600    2,066,540 
Occidental Petroleum    118,900    8,204,100 
Peoples Energy    11,400    451,440 
Rowan Cos.    32,100    851,613 
Schlumberger    176,500    12,074,365 
Sempra Energy    71,266    2,877,721 
Sunoco    20,800 a    2,064,608 
Transocean    96,100 b    4,456,157 
Unocal    81,000    4,418,550 
Valero Energy    76,800    5,263,104 
Williams Cos.    170,700    2,905,314 
XTO Energy    104,000    3,137,680 
        275,957,554 
Health Care—13.5%         
Abbott Laboratories    466,700    22,942,972 
Aetna    88,158    6,468,152 
Allergan    39,400    2,773,366 
AmerisourceBergen    31,600 a    1,936,448 
Amgen    375,012 b    21,829,449 

10


Common Stocks (continued)    Shares    Value ($) 



Health Care (continued)         
Applera—Applied Biosystems Group    58,800    1,246,560 
Bausch & Lomb    16,100    1,207,500 
Baxter International    185,500    6,882,050 
Becton, Dickinson & Co.    75,700    4,429,964 
Biogen Idec    99,885 a,b    3,619,832 
Biomet    75,675    2,927,866 
Boston Scientific    227,500 b    6,729,450 
Bristol-Myers Squibb    585,000 a    15,210,000 
C.R. Bard    31,400    2,234,738 
CIGNA    39,400    3,624,012 
Cardinal Health    129,825    7,214,375 
Caremark Rx    136,800 b    5,478,840 
Chiron    44,200 a,b    1,509,430 
Eli Lilly & Co.    339,100    19,827,177 
Express Scripts    22,800 b    2,043,792 
Fisher Scientific International    35,100 b    2,084,238 
Forest Laboratories    105,200 b    3,753,536 
Genzyme    74,200 b    4,348,862 
Gilead Sciences    129,600 b    4,808,160 
Guidant    96,600    7,156,128 
HCA    123,250    6,882,280 
Health Management Associates, Cl. A    73,000    1,805,290 
Hospira    46,770 b    1,569,134 
Humana    48,100 b    1,666,665 
Johnson & Johnson    890,218    61,095,661 
King Pharmaceuticals    72,266 b    578,128 
Laboratory Corporation of America Holdings    40,400 b    1,999,800 
Manor Care    25,800    860,430 
McKesson    88,377    3,269,949 
Medco Health Solutions    82,391 b    4,199,469 
MedImmune    74,500 b    1,890,065 
Medtronic    362,100    19,082,670 
Merck & Co.    661,000    22,407,900 
Millipore    14,900 b    718,478 
Mylan Laboratories    80,600 a    1,329,900 
PerkinElmer    38,800    717,800 
Pfizer    2,233,409    60,681,723 

The Fund 11


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Health Care (continued)         
Quest Diagnostics    27,300    2,888,340 
Schering-Plough    441,500    9,214,105 
St. Jude Medical    108,000 b    4,215,240 
Stryker    112,200    5,447,310 
Tenet Healthcare    140,150 a,b    1,677,596 
Thermo Electron    47,900 b    1,196,542 
UnitedHealth Group    192,000 a    18,145,920 
Waters    36,200 b    1,434,606 
Watson Pharmaceuticals    32,800 b    984,000 
WellPoint Health Networks    91,300 b    11,663,575 
Wyeth    400,000    17,976,000 
Zimmer Holdings    73,820 b    6,010,424 
        433,895,897 
Interest Sensitive—23.4%         
ACE    85,100    3,655,896 
AFLAC    150,200    6,105,630 
Allstate    203,300    11,417,328 
Ambac Financial Group    32,550    2,175,967 
American Express    351,200    18,508,240 
American International Group    779,679    39,646,677 
AmSouth Bancorporation    106,300    2,797,816 
Aon    94,775    1,976,059 
Apartment Investment & Management, Cl. A    28,600    1,090,232 
Archstone-Smith Trust    59,800    2,151,006 
BB&T    164,200    6,438,282 
Bank of America    1,213,508    54,656,400 
Bank of New York    233,000    6,510,020 
Bear Stearns Cos.    33,872    3,206,324 
CIT Group    63,100    2,541,668 
Capital One Financial    74,000 a    5,245,860 
Charles Schwab    343,700    3,557,295 
Chubb    57,300    4,685,994 
Cincinnati Financial    49,985    2,011,396 
Citigroup    1,564,217    73,455,630 
Comerica    51,000    2,920,260 
Compass Bancshares    37,000    1,591,740 
Countrywide Financial    173,800    6,289,822 

12


Common Stocks (continued)    Shares    Value ($) 



Interest Sensitive (continued)         
E*TRADE Financial    111,000 b    1,233,210 
Equity Office Properties Trust    120,700    3,798,429 
Equity Residential    84,600    2,906,010 
Fannie Mae    289,800    15,634,710 
Federated Investors, Cl. B    28,500    810,825 
Fifth Third Bancorp    155,667 a    6,771,514 
First Horizon National    36,900    1,532,457 
Franklin Resources    59,200    4,065,856 
Freddie Mac    206,000    12,673,120 
General Electric    3,173,000    114,862,600 
Golden West Financial    84,500    5,266,885 
Goldman Sachs Group    134,000    14,309,860 
H&R Block    49,500    2,465,595 
Hartford Financial Services Group    88,500    6,404,745 
Huntington Bancshares    69,374    1,630,983 
J.P. Morgan Chase & Co.    1,063,841    37,755,717 
Janus Capital Group    70,700 a    918,393 
Jefferson-Pilot    40,825    2,049,823 
KeyCorp    121,600    4,032,256 
Lehman Brothers Holdings    82,600    7,576,072 
Lincoln National    52,200    2,347,434 
Loews    47,800    3,388,064 
M&T Bank    29,400 a    3,041,430 
MBIA    42,100 a    2,205,198 
MBNA    382,437    7,553,131 
MGIC Investment    29,000    1,711,000 
Marsh & McLennan Cos.    158,300    4,437,149 
Marshall & Ilsley    62,200    2,652,208 
Mellon Financial    126,900    3,513,861 
Merrill Lynch    278,600    15,024,898 
MetLife    219,400    8,534,660 
Morgan Stanley    333,060    17,525,617 
National City    177,900    6,041,484 
North Fork Bancorporation    140,850    3,964,928 
Northern Trust    60,900 a    2,742,327 
PNC Financial Services Group    84,600    4,503,258 
Plum Creek Timber    55,000    1,899,700 

The Fund 13


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Interest Sensitive (continued)         
Principal Financial Group    89,700 a    3,505,476 
Progressive    59,900    5,467,073 
ProLogis    55,100    2,181,409 
Providian Financial    87,700 b    1,461,959 
Prudential Financial    156,900    8,966,835 
Regions Financial    139,090    4,658,124 
SLM    128,700 a    6,131,268 
Safeco    38,100    2,006,727 
Simon Property Group    66,200 a    4,373,834 
Sovereign Bancorp    112,200    2,307,954 
St. Paul Travelers Cos.    200,412    7,174,750 
State Street    99,800    4,613,754 
SunTrust Banks    101,500    7,392,245 
Synovus Financial    93,050    2,608,192 
T. Rowe Price Group    37,100    2,046,807 
Torchmark    32,400    1,731,132 
U.S. Bancorp    554,853    15,480,399 
UnumProvident    89,095 a    1,489,668 
Wachovia    474,676    24,293,918 
Washington Mutual    261,390 a    10,800,635 
Wells Fargo    507,600    30,425,544 
XL Capital, Cl. A    41,600    2,924,480 
Zions Bancorporation    26,900    1,883,807 
        754,346,939 
Producer Goods & Services—10.2%         
Air Products & Chemicals    68,100    3,999,513 
Alcoa    260,848    7,569,809 
Allegheny Technologies    26,777 a    599,805 
American Power Conversion    53,800    1,305,188 
American Standard Cos.    53,900    2,409,869 
Ashland    19,900    1,338,076 
Avery Dennison    30,400    1,591,440 
Ball    32,900    1,299,550 
Bemis    32,000    881,920 
Black & Decker    24,000    2,007,120 
Boeing    249,198    14,832,265 
Burlington Northern Santa Fe    113,300    5,466,725 

14


Common Stocks (continued)    Shares    Value ($) 



Producer Goods & Services (continued)         
CSX    64,500    2,588,385 
Caterpillar    102,700    9,042,735 
Centex    37,900 a    2,187,588 
Cooper Industries, Cl. A    27,700    1,763,382 
Cummins    12,800 a    870,400 
Deere & Co.    73,900    4,621,706 
Dover    61,000    2,217,960 
Dow Chemical    285,463    13,111,316 
E. I. du Pont de Nemours    298,412    14,058,189 
Eastman Chemical    23,300    1,258,200 
Ecolab    66,100 a    2,162,131 
Emerson Electric    125,500    7,865,085 
Engelhard    36,600    1,121,058 
FedEx    90,220    7,664,189 
Fluor    25,600 a    1,319,936 
Freeport-McMoRan Copper & Gold, Cl. B    53,600 a    1,857,776 
General Dynamics    59,900    6,292,495 
Georgia-Pacific    77,767 a    2,665,075 
Goodrich    35,900    1,446,770 
Goodyear Tire & Rubber    52,600 a,b    624,362 
Great Lakes Chemical    15,400    478,016 
Hercules    33,500 b    443,205 
Honeywell International    254,725 a    9,108,966 
ITT Industries    27,600    2,496,696 
Illinois Tool Works    82,200    6,890,004 
Ingersoll-Rand, Cl. A    51,900    3,989,553 
International Paper    146,753    5,032,160 
KB HOME    25,000    1,425,000 
L-3 Communications Holdings    34,500    2,448,465 
Leggett & Platt    57,100    1,539,416 
Lockheed Martin    120,200    7,326,190 
Louisiana-Pacific    33,200    816,720 
Masco    134,100    4,222,809 
MeadWestvaco    60,711    1,787,939 
Molex    50,200    1,275,582 
Monsanto    79,664    4,669,904 
Newmont Mining    132,925    5,047,162 

The Fund 15


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares        Value ($) 




Producer Goods & Services (continued)             
Norfolk Southern    119,800        3,761,720 
Northrop Grumman    107,890    a    5,916,688 
Nucor    47,800        2,442,580 
PPG Industries    51,900        3,505,845 
Pall    37,100    a    995,393 
Parker-Hannifin    35,950        2,154,843 
Phelps Dodge    28,895        2,480,636 
Praxair    96,600        4,523,778 
Pulte Homes    35,500        2,536,475 
Raytheon    135,600        5,099,916 
Rockwell Automation    52,400        2,422,452 
Rockwell Collins    53,400        2,449,992 
Rohm & Haas    58,215        2,541,667 
Sealed Air    25,032    a,b    1,212,550 
Sherwin-Williams    37,900        1,689,203 
Sigma-Aldrich    20,600        1,203,658 
Snap-On    17,300        573,841 
Stanley Works    22,513        968,734 
3M    231,200        17,679,864 
Temple-Inland    34,200    a    1,154,250 
Textron    40,500        3,051,675 
Tyco International    602,671        18,869,629 
Union Pacific    78,100        4,992,933 
United Parcel Service, Cl. B    335,000        23,888,850 
United States Steel    34,200        1,462,392 
United Technologies    153,300        15,593,676 
Vulcan Materials    30,800        1,633,632 
W.W.Grainger    25,000        1,382,250 
Weyerhaeuser    72,700        4,987,947 
            328,214,874 
Services—6.5%             
ALLTEL    90,600        5,160,576 
Affiliated Computer Services, Cl. A    37,900    b    1,806,693 
Allied Waste Industries    81,200    a,b    648,788 
Apollo Group, Cl. A    49,600    b    3,577,152 
Automatic Data Processing    174,600        7,584,624 
Carnival    157,700        7,708,376 

16


Common Stocks (continued)    Shares    Value ($) 



Services (continued)         
Cendant    315,870    6,288,972 
Cintas    44,700    1,724,973 
Clear Channel Communications    157,800    5,040,132 
Comcast, Cl. A    662,218 b    21,263,820 
Computer Sciences    57,200 b    2,487,056 
Convergys    42,500 a,b    550,800 
Dow Jones & Co.    21,100    705,584 
Electronic Data Systems    155,000    2,999,250 
Equifax    40,400    1,359,460 
First Data    240,046    9,128,949 
Fiserv    57,850 b    2,447,055 
Gannett    75,200    5,790,400 
IMS Health    69,400    1,664,212 
Interpublic Group of Companies    126,600 b    1,628,076 
Knight-Ridder    22,600 a    1,462,220 
McGraw-Hill Cos.    57,000    4,963,560 
Meredith    13,600    639,200 
Monster Worldwide    36,100 b    830,661 
Moody’s    41,100 a    3,375,954 
NEXTEL Communications, Cl. A    337,300 b    9,441,027 
New York Times, Cl. A    43,600    1,454,496 
News, Cl. A    862,700    13,182,056 
Omnicom Group    55,800    4,625,820 
Paychex    106,475    3,258,135 
R. R. Donnelley & Sons    64,500    2,122,695 
Robert Half International    48,200 a    1,196,324 
Ryder System    19,200 a    709,056 
Sabre Holdings    39,421    771,075 
SunGard Data Systems    86,500 b    2,889,100 
Time Warner    1,375,850 b    23,128,038 
Tribune    89,300    3,446,980 
Unisys    101,000 b    655,490 
Univision Communications, Cl. A    87,400 b    2,297,746 
Viacom, Cl. B    510,424    17,670,879 
Walt Disney    612,900    16,180,560 
Waste Management    170,200    4,848,998 
        208,715,018 

The Fund 17


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Technology—14.0%         
ADC Telecommunications    242,700 b    550,929 
Adobe Systems    72,800    4,329,416 
Advanced Micro Devices    117,900 a,b    1,677,717 
Agilent Technologies    129,416 b    2,685,382 
Altera    111,500 b    2,311,395 
Analog Devices    111,500 a    3,803,265 
Andrew    48,150 b    590,801 
Apple Computer    244,600 b    8,820,276 
Applied Materials    499,300    7,424,591 
Applied Micro Circuits    92,200 b    246,174 
Autodesk    68,700 a    2,186,721 
Avaya    143,680 b    1,247,142 
BMC Software    66,300 a,b    1,074,060 
Broadcom, Cl. A    87,100 b    2,605,161 
CIENA    171,300 b    393,990 
Cisco Systems    1,935,000 b    33,436,800 
Citrix Systems    50,700 b    1,140,750 
Computer Associates International    159,329    4,285,950 
Compuware    116,000 b    690,200 
Comverse Technology    59,200 a,b    1,349,168 
Corning    422,000 b    5,802,500 
Danaher    82,400 a    4,171,912 
Dell    736,100 b    25,638,363 
EMC    720,100 b    9,447,712 
eBay    362,300 b    11,495,779 
Electronic Arts    92,200 b    4,922,558 
Freescale Semiconductor, Cl. B    120,249 b    2,267,896 
Gateway    89,500 b    305,195 
Hewlett-Packard    866,766    17,742,700 
Intel    1,864,100    43,843,632 
International Business Machines    488,700    37,326,906 
Intuit    55,500 a,b    2,236,650 
JDS Uniphase    432,500 a,b    640,100 
Jabil Circuit    54,900 b    1,515,240 
KLA-Tencor    58,800    2,294,376 
LSI Logic    115,200 b    617,472 
Lexmark International    37,900 b    2,632,155 

18


Common Stocks (continued)    Shares    Value ($) 



Technology (continued)         
Linear Technology    91,900    3,284,506 
Lucent Technologies    1,326,470 a,b    3,223,322 
Maxim Integrated Products    97,800    3,657,720 
Mercury Interactive    25,300 b    1,045,649 
Micron Technology    183,800 b    1,784,698 
Microsoft    3,029,100    76,636,230 
Motorola    733,995    11,259,483 
NCR    55,700 b    1,838,100 
NVIDIA    49,800 b    1,092,612 
National Semiconductor    106,400 a    2,030,112 
Network Appliance    109,600 b    2,918,648 
Novell    113,400 b    670,194 
Novellus Systems    41,800 b    979,374 
Oracle    1,345,100 b    15,549,356 
PMC-Sierra    53,800 b    433,628 
Parametric Technology    81,000 b    430,920 
Pitney Bowes    69,100    3,090,152 
QLogic    27,500 b    914,100 
QUALCOMM    492,700    17,190,303 
Sanmina-SCI    156,700 b    628,367 
Scientific-Atlanta    45,500    1,391,390 
Siebel Systems    154,100 b    1,386,900 
Solectron    290,700 a,b    959,310 
Sun Microsystems    1,011,200 b    3,670,656 
Symantec    212,400 b    3,988,872 
Symbol Technologies    72,600 a    970,662 
Tektronix    26,800    580,488 
Tellabs    138,300 b    1,073,208 
Teradyne    58,100 a,b    640,262 
Texas Instruments    515,300    12,861,888 
VERITAS Software    126,382 b    2,602,206 
Xerox    286,600 a,b    3,797,450 
Xilinx    104,300    2,809,842 
Yahoo!    390,300 a,b    13,469,253 
        452,610,895 
Utilities—5.8%         
AES    194,200 b    3,122,736 
AT&T    239,540    4,582,400 

The Fund 19


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Utilities (continued)         
Allegheny Energy    48,600 a,b    1,187,784 
Ameren    58,500 a    3,024,450 
American Electric Power    114,760    4,041,847 
BellSouth    548,300    14,524,467 
CMS Energy    64,500 a,b    833,340 
Calpine    159,900 a,b    286,221 
CenterPoint Energy    86,666 a    1,026,126 
CenturyTel    40,300    1,236,807 
Cinergy    57,300    2,269,080 
Citizens Communications    100,400 a    1,280,100 
Consolidated Edison    72,600    3,142,128 
Constellation Energy Group    52,900    2,780,424 
DTE Energy    52,100 a    2,393,995 
Dominion Resources    102,008    7,691,403 
Duke Energy    280,788 a    8,196,202 
Edison International    97,500    3,539,250 
Entergy    63,800    4,676,540 
Exelon    199,050    9,852,975 
FPL Group    117,100    4,780,022 
FirstEnergy    98,702    4,295,511 
PG&E    108,000    3,749,760 
PPL    56,600    3,071,116 
Pinnacle West Capital    29,000    1,215,100 
Progress Energy    73,969    3,105,958 
Public Service Enterprise Group    71,400    4,148,340 
Qwest Communications International    500,300 a,b    1,711,026 
SBC Communications    988,898    23,535,772 
Southern    222,400    7,328,080 
Sprint (FON Group)    442,450    9,848,937 
TECO Energy    61,800    1,026,498 
TXU    71,897    6,168,044 
Verizon Communications    829,256    29,687,365 
Xcel Energy    120,010 a    2,061,772 
        185,421,576 
Total Common Stocks         
(cost $2,375,145,942)        3,174,229,101 

20


    Principal     
Short-Term Investments—1.4%    Amount ($)    Value ($) 



Repurchase Agreement—1.2%         
Greenwich Capital Markets, Tri-Party Repurchase         
Agreement, 2.84%, dated 4/29/2005, due 5/2/2005     
amount of $40,209,514 (fully collateralized by         
in the $40,435,000 of various U.S. Government         
Agency Obligations, value $41,009,217)    40,200,000    40,200,000 
U.S. Treasury Bills—.2%         
2.61%, 6/9/2005    2,500,000 c    2,493,075 
2.69%, 7/7/2005    2,500,000 c    2,487,625 
        4,980,700 
Total Short-Term Investments         
(cost $45,180,185)        45,180,700 



 
Investment of Cash Collateral         
for Securities Loaned—2.7%    Shares    Value ($) 



Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund         
(cost $86,432,758)    86,432,758 d    86,432,758 



 
Total Investments (cost $2,506,758,885)    102.7%    3,305,842,559 
Liabilities, Less Cash and Receivables    (2.7%)    (85,894,353) 
Net Assets    100.0%    3,219,948,206 

a All or a portion of these securities are on loan. At April 30, 2005, the total market value of the fund’s securities on 
loan is $82,833,833 and the total market value of the collateral held by the fund is $86,432,758. 
b Non-income producing. 
c Partially held by the broker in a segregated account as collateral for open financial futures positions. 
d Investment in affiliated money market mutual funds. 

Portfolio Summary (Unaudited)          
 
    Value (%)    Value (%) 



Interest Sensitive    23.4    Consumer Staples    8.0 
Technology    14.0    Services    6.5 
Health Care    13.5    Utilities    5.8 
Producer Goods & Services    10.2    Short-Term/Money Market Instruments    4.1 
Consumer Cyclical    8.6    Futures Contracts    .0 
Energy    8.6        102.7 
 
Based on net assets.             
See notes to financial statements.             

The Fund 21


STATEMENT OF FINANCIAL FUTURES 
April 30, 2005 (Unaudited) 

        Market Value        Unrealized 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 4/30/2005 ($) 





 
Financial Futures Long                 
Standard & Poor’s 500    176    50,974,000    June 2005    (1,252,525) 

See notes to financial statements.
22

STATEMENT OF ASSETS AND LIABILITIES 
April 30, 2005 (unaudited) 

    Cost    Value 



Assets ($):         
Investments in securities—See Statement         
of Investments (including securities on loan,     
valued at $82,833,833)—Note 1(b):         
Unaffiliated issuers    2,420,326,127    3,219,409,801 
Affiliated issuers    86,432,758    86,432,758 
Cash        2,538,811 
Dividends and interest receivable        4,012,466 
Receivable for shares of Common Stock subscribed    1,561,866 
Receivable for futures variation margin—Note 4    676,625 
        3,314,632,327 



Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    1,332,075 
Liability for securities on loan—Note 1(b)        86,432,758 
Payable for shares of Common Stock redeemed    6,674,340 
Payable for investment securities purchased    244,948 
        94,684,121 



Net Assets ($)        3,219,948,206 



Composition of Net Assets ($):         
Paid-in capital        2,622,622,220 
Accumulated undistributed investment income—net    11,450,295 
Accumulated net realized gain (loss) on investments    (211,955,458) 
Accumulated net unrealized appreciation         
(depreciation) investments [including ($1,252,525)     
net unrealized (depreciation) on financial futures]    797,831,149 


Net Assets ($)        3,219,948,206 



Shares Outstanding         
(200 million shares of $.001 par value Common Stock authorized)    95,245,700 
Net Asset Value, offering and redemption price per share-Note 3(c) ($)    33.81 

See notes to financial statements.

The Fund 23


STATEMENT OF OPERATIONS
Six Months Ended April 30, 2005 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends    39,006,176 
Interest    252,214 
Income from securities lending    31,636 
Total Income    39,290,026 
Expenses:     
Management fee—Note 3(a)    4,054,055 
Shareholder servicing costs—Note 3(b)    4,054,055 
Loan commitment fees—Note 2    15,349 
Interest expense—Note 2    2,955 
Total Expenses    8,126,414 
Investment Income—Net    31,163,612 


Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    (20,469,104) 
Net realized gain (loss) on financial futures    2,478,221 
Net Realized Gain (Loss)    (17,990,883) 
Net unrealized appreciation (depreciation) on investments     
investments [including ($1,561,700) net     
unrealized (depreciation) on financial futures]    81,598,215 
Net Realized and Unrealized Gain (Loss) on Investments    63,607,332 
Net Increase in Net Assets Resulting from Operations    94,770,944 

See notes to financial statements.
24

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 



Operations ($):         
Investment income—net    31,163,612    36,420,285 
Net realized gain (loss) on investments    (17,990,883)    3,780,027 
Net unrealized appreciation         
(depreciation) on investments    81,598,215    210,684,606 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    94,770,944    250,884,918 



Dividends to Shareholders from ($):         
Investment income—net    (48,499,041)    (31,500,224) 



Capital Stock Transactions ($):         
Net proceeds from shares sold    437,719,409    845,857,923 
Dividends reinvested    47,446,210    30,880,377 
Cost of shares redeemed    (427,666,698)    (783,225,642) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    57,498,921    93,512,658 
Total Increase (Decrease) in Net Assets    103,770,824    312,897,352 



Net Assets ($):         
Beginning of Period    3,116,177,382    2,803,280,030 
End of Period    3,219,948,206    3,116,177,382 
Undistributed investment income—net    11,450,295    28,785,724 



Capital Share Transactions (Shares):         
Shares sold    12,630,498    25,942,195 
Shares issued for dividends reinvested    1,361,050    990,390 
Shares redeemed    (12,331,888)    (24,026,262) 
Net Increase (Decrease) in Shares Outstanding    1,659,660    2,906,323 

See notes to financial statements.

The Fund 25


FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

Six Months Ended                     
April 30, 2005        Year Ended October 31,     



(Unaudited)    2004    2003    2002    2001    2000 






Per Share Data ($):                         
Net asset value,                         
beginning of period    33.30    30.91    26.01    31.08    41.95    40.55 
Investment Operations:                         
Investment income—net a    .33    .39    .35    .32    .32    .31 
Net realized and unrealized                         
gain (loss) on investments    .70    2.35    4.86    (5.08)    (10.88)    1.92 
Total from Investment                         
Operations    1.03    2.74    5.21    (4.76)    (10.56)    2.23 
Distributions:                         
Dividends from investment                         
income—net    (.52)    (.35)    (.31)    (.31)    (.31)    (.32) 
Dividends from net realized                         
gain on investments                        (.51) 
Total Distributions    (.52)    (.35)    (.31)    (.31)    (.31)    (.83) 
Net asset value,                         
end of period    33.81    33.30    30.91    26.01    31.08    41.95 







Total Return (%)    3.05b    8.93    20.22    (15.54)    (25.31)    5.50 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    .25b    .50    .52    .50    .50    .50 
Ratio of net investment income                     
to average net assets    .95b    1.21    1.27    1.05    .88    .73 
Portfolio Turnover Rate    2.83b    1.87    2.17    4.42    1.89    7.64 







Net Assets, end of period                         
($ x 1,000) 3,219,948    3,116,177    2,803,280    2,185,380 2,514,308    3,072,253 
 
a Based on average shares outstanding at each month end.                 
b Not annualized.                         
See notes to financial statements.                         

26

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus S&P 500 Index Fund (the “fund”) is a separate non-diversified series of Dreyfus Index Funds, Inc. (the “Company”) which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering three series including the fund. The fund’s investment objective is to match the performance of the Standard & Poor’s 500 Composite Stock Price Index. The Dreyfus Corporation (“the Manager” or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

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

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is avail-

The Fund 27


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

able. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

(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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with Mellon Bank N.A., an affiliate of Dreyfus or the Manager, the fund may lend securities to qualified institutions. At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager as shown in the fund’s Statement of Investments.The fund

28

will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the fund would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

The fund may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, the fund, through its custodian and sub-custodian, takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the fund’s holding period.This arrangement results in a fixed rate of return that is not subject to market fluctuations during the fund’s holding period. The value of the collateral is at least equal, at all times, to the total amount of the repurchase obligation, including interest. In the event of a counter party default, the fund has the right to use the collateral to offset losses incurred. There is potential loss to the fund in the event the fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the fund seeks to assert its rights. The Manager, acting under the supervision of the Board of Directors, reviews the value of the collateral and the credit-worthiness of those banks and dealers with which the fund enters into repurchase agreements to evaluate potential risks.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized cap-

The Fund 29


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

ital gain, if any, can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with incomes tax regulations, which may differ from U.S. generally accepted accounting principles.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

The fund has an unused capital loss carryover of $142,539,901 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2004. If not applied, $16,218,557 of the carryover expires in fiscal 2008, $42,517,790 expires in fiscal 2009, $82,176,122 expires in fiscal 2010 and $1,627,432 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2004 were as follows: ordinary income $31,500,224. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “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 based on prevailing market rates in effect at the time of borrowings.

The average daily amount of borrowings outstanding under the line of credit during the period ended April 30, 2005 was approximately $230,400 with a related weighted average annualized interest rate of 2.59% .

30

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Management Agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .25 of 1% of the value of the fund’s average daily net assets, and is payable monthly. Under the terms of the Agreement, the Manager has agreed to pay all the expenses of the fund, except management fees, brokerage commissions, taxes, interest, commitment fees, Shareholder Services Plan fees, fees and expenses of non-interested Board members (including counsel fees) and extraordinary expenses. In addition, the Manager is required to reduce its fees in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board members (including counsel fees). Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the “Fund Group”). Each Board member receives an annual fee of $25,000, an attendance fee of $4,000 for each in-person meeting and $500 for telephone meetings.The chairman of the Board receives an additional 25% of such compensation (with the exception of reimburseable amounts). Subject to the Company’s Emeritus Program Guidelines,Emeritus Board Members, if any, receive 50% of the annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status.All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets. Amounts required to be paid by the Company directly to the non-interested Board members, that were applied to offset a portion of the management fee payable to the Manager, were in fact paid directly by the Manager to the non-interested Board members.All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services a fee, at the annual rate of .25 of 1% of the value of the fund’s average daily net assets.The ser-

The Fund 31


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

vices provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period April 30, 2005, the fund was charged $4,054,055 pursuant to the Shareholder Services Plan.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $666,038 and shareholder services plan fees $666,037.

(c) A 1% redemption fee is charged and retained by the fund on certain shares redeemed within six months following the date of issuance, including redemptions made through the use of the fund’s exchange privilege. During the period ended April 30, 2005, redemption fees charged and retained by the fund amounted to $15,908.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures during the period ended April 30, 2005, amounted to $121,545,658 and $91,026,988, 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. 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 broker, which consist of cash or cash equivalents.

32

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 as of April 30, 2005, are set forth in the Statement of Financial Futures.

At April 30, 2005, accumulated net unrealized appreciation on investments was $799,083,674, consisting of $1,059,383,156 gross unrealized appreciation and $260,299,482 gross unrealized depreciation.

At April 30, 2005, 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).

NOTE 5—Legal Matters:

In early 2004, two purported class and derivative actions were filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC, and certain directors of the Dreyfus Funds and the Dreyfus Founders Funds (together, the “Funds”) in the United States District Court for the Western District of Pennsylvania. In September 2004, plaintiffs served a Consolidated Amended Complaint (the “Amended Complaint”) on behalf of a purported class of all persons who acquired interests in any of the Funds between January 30, 1999 and November 17, 2003, and derivatively on behalf of the Funds.The Amended Complaint in the newly styled In re Dreyfus Mutual Funds Fee Litigation also named the Distributor, Premier Mutual Fund Services, Inc. and two additional Fund directors as defendants and alleges violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Pennsylvania Unfair Trade Practices and Consumer Protection Law and common-law claims. Plaintiffs seek to recover allegedly improper and excessive Rule 12b-1 and advisory fees allegedly charged to the Funds for marketing and distribution services. More specifically, plaintiffs claim, among other things, that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend the Funds over other funds, and that such payments were not disclosed to investors. In addition, plaintiffs assert

The Fund 33


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

that economies of scale and soft-dollar benefits were not passed on to the Funds. Plaintiffs further allege that 12b-1 fees were improperly charged to certain of the Funds that were closed to new investors.The Amended Complaint seeks compensatory and punitive damages, rescission of the advisory contracts, and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. As noted, some of the claims in this litigation are asserted derivatively on behalf of the Funds that have been named as nominal defendants.With respect to such derivative claims, no relief is sought against the Funds. Dreyfus believes the allegations to be totally without merit and intends to defend the action vigorously. Defendants filed motions to dismiss the Amended Complaint on November 12, 2004, and those motions are pending.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Funds believe that any of the pending actions will have a material adverse effect on the Funds or Dreyfus’ ability to perform its contract with the Funds.

34

INFORMATION ABOUT THE REVIEW 
AND APPROVAL OF THE FUND’S 
INVESTMENT MANAGEMENT AGREEMENT (Unaudited) 

At a meeting of the Board of Directors held on March 14, 2005, the Board considered the re-approval for another one-year term of the fund’s Management Agreement (the “Management Agreement”), pursuant to which the Manager provides the fund with investment advisory and administrative services.The Board members who are not “interested persons” (as defined in the Act (the “Independent Directors”)) of the fund were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent and Quality of Services Provided to the Fund. The Board members received a presentation from representatives of the Manager regarding services provided to the Fund and other funds in the Dreyfus complex, and discussed the nature, extent and quality of the services provided to the fund pursuant to its Management Agreement.The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships the Manager has with various intermediaries and the different needs of each.The Manager’s representatives noted the diversity of distribution of the fund as well as the distribution of other funds in the Dreyfus complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each of the fund’s distribution channels.The Board also reviewed the number of shareholder accounts in the fund,as well as the Fund’s asset size.

The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure.

Comparative Analysis of the Fund’s Performance, Management Fee and Expense Ratio. The Board members reviewed the fund’s performance, management fee and expense ratio and placed significant emphasis on comparisons to a group of comparable funds and Lipper averages, and discussed the results of the comparisons. The Board members noted that the fund’s performance as measured by total

The Fund 35


I N FO R M AT I O N A B O U T T H E R E V I E W A N D A P P R OVA L O F T H E F U N D ’ S 
I N V E S T M E N T M A N A G E M E N T A G R E E M E N T ( U n a u d i t e d ) ( c o n t i n u e d ) 

return was consistent with the total return of the S&P 500 Index, and that slight variations were due primarily to fees.The Board members also noted the fund’s performance as measured by total return was in the second quartile of the fund’s Lipper category for the one- and thee-year periods ended January 31, 2005, and above the Lipper category averages for the one-, three-, and five-year periods.

The Board members reviewed the range of management fees,advisory fee and expense ratios, noting that the fund’s management fee was lower than a majority of the funds in the comparison group, and that the fund’s expense ratio was higher than that of the comparison group average, but lower than that of the Lipper category averages.The Board members also considered the fund’s primary distribution channel, and the fees charged, and services provided, by financial intermediaries offering the fund in that channel. The Board members noted that, as a “unitary fee” fund, the Manager has voluntarily agreed to pay all of the fund’s expenses, except management fees,brokerage commissions,taxes,interest,fees and expenses of non interested Board members, fees and expenses of independent counsel to the fund and to the non-interested Board members, Shareholder Services Plan fees,and extraordinary expenses.The Board also noted that the Manager voluntarily agreed to reduce its management fee in an amount equal to the fund’s allocable portion of the accrued fees and expenses of non-interested Board members and fees and expenses of independent counsel to the fund and to the non-interested Board members.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates (the “Similar Funds”) and by separate accounts, or mutual funds for which the Manager or its affiliates serve as sub-investment adviser, with similar investment objectives, policies and strategies as the fund (“Separate Accounts” and, collectively with the Similar Funds, the “Similar Accounts”) and explained the nature of each Similar Account and the differences, from the Manager’s perspective, in managing and providing other services to the Similar Accounts as compared to management of the fund.The Manager’s representatives also reviewed the costs associated with distribution of the fund and Similar Accounts

36

through intermediaries.The Board analyzed differences in fees paid to the Manager and discussed the relationship of the fees paid in light of the Manager’s performance and the services provided. Noting the Fund’s “unitary fee” structure, the Board members concluded that the Similar Funds had advisory fees and expense ratios that were higher than the fund’s management fee and expense ratio and the Separate Accounts had advisory fees that were lower than the fund’s management fee. A representative of the Manager stated that certain Similar Accounts had lower advisory fees as a result of historical pricing arrangements and other Similar Accounts were mutual funds that were sub-advised but not administered by an affiliate of the Manager.The Board members considered the relevance of the fee information provided for the Separate Accounts to evaluate the appropriateness and reasonableness of the fund’s management fee.The Board acknowledged that differences in fees paid by the Separate Accounts seemed to be consistent with the management and other services provided.

Analysis of Profitability and Economies of Scale. The Manager’s representatives reviewed the dollar amount of expenses allocated to, and profit received by, the Manager and the method used to determine such expenses and profit.The Board members evaluated the analysis in light of the relevant circumstances for the fund, the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund investors. The Board members also considered potential benefits to the Manager from acting as investment adviser and noted that the Manager had no soft dollar arrangement with respect to the fund.

It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Manager, including the nature, extent and quality of such services and that a discussion of economies of scale is predicated on increasing assets and that, if a fund’s assets had been decreasing, the possibility that the Manager may have realized any economies of scale would be less. It also was noted that the

The Fund 37


I N FO R M AT I O N A B O U T T H E R E V I E W A N D A P P R OVA L O F T H E F U N D ’ S

I N V E S T M E N T M A N A G E M E N T A G R E E M E N T ( U n a u d i t e d ) ( c o n t i n u e d )

profitability percentage for managing the fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and given the fund’s overall performance and generally superior service levels provided.

At the conclusion of these discussions, each of the Independent Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on their discussions and considerations as described above, the Board made the following conclusions and determinations.

  • The Board concluded that the nature, extent and quality of the services provided by the Manager are adequate and appropriate.
  • The Board was satisfied with the fund’s overall performance.
  • The Board concluded that the fee paid to the Manager was reasonable in light of comparative performance and expense and advisory fee information, costs of the services provided and profits realized, or to be realized, and benefits derived or to be derived by the Manager from its relationship with the fund.
  • The Board recognized that economies of scale may be realized as the fund’s assets increase and determined that, to the extent that material economies of scale had not been shared with the fund, the Board would seek to do so.

The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.

38

NOTES


For More    Information 


 
Dreyfus S&P 500    Transfer Agent & 
Index Fund    Dividend Disbursing Agent 
200 Park Avenue    Dreyfus Transfer, Inc. 
New York, NY 10166    200 Park Avenue 
Manager    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue    Dreyfus Service Corporation 
New York, NY 10166    200 Park Avenue 
Custodian    New York, NY 10166 
Boston Safe Deposit and     
Trust Company     
One Boston Place     
Boston, MA 02109     


 
 
Telephone 1-800-645-6561     

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

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

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.



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

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

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


    Contents 
 
    THE FUND 


2    Letter from the Chairman 
3    Discussion of Fund Performance 
6    Understanding Your Fund’s Expenses 
6    Comparing Your Fund’s Expenses 
    With Those of Other Funds 
7    Statement of Investments 
40    Statement of Financial Futures 
41    Statement of Assets and Liabilities 
42    Statement of Operations 
43    Statement of Changes in Net Assets 
44    Financial Highlights 
45    Notes to Financial Statements 
54    Information About the Review and Approval 
    of the Fund’s Management Agreement 
    FOR MORE INFORMATION 


    Back Cover 


Dreyfus International 
Stock Index Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus International Stock Index Fund, covering the six-month period from November 1, 2004, through April 30, 2005. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager, Susan Ellison.

The six-month reporting period produced mixed results for most international stock markets. After rallying strongly when the global economy expanded and geopolitical concerns eased in the final weeks of 2004, equities gave back some of their gains during the first few months of 2005 as rising energy prices and currency fluctuations took their toll on investor sentiment in most markets.

According to our economists, recent market turbulence probably is the result of a transition to a more mature phase of the economic cycle in the United States. However, your financial advisor can help you diversify your portfolio in a way that allows you to participate in the longer-term gains of the world’s financial markets while providing a measure of protection from shorter-term volatility.

Thank you for your continued confidence and support.

2

DISCUSSION OF FUND PERFORMANCE

Susan Ellison, Portfolio Manager

How did Dreyfus International Stock Index Fund perform relative to its benchmark?

For the six-month period ended April 30, 2005, the fund produced a total return of 8.80% .1 This compares with an 8.71% total return for the fund’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Free Index (the “MSCI EAFE Free Index” or the “Index”), during the same period.2

We attribute the fund’s performance to strong global economic growth, particularly during the reporting period’s first half, which helped spark a rally in the international equity markets.

What is the fund’s investment approach?

In managing this fund, our goal is to match the performance of the MSCI EAFE Free Index, a broadly diversified, international index composed of slightly more than 1,000 stocks that trade in 21 major markets outside the United States, including Great Britain, Germany, France, Japan,Hong Kong,Singapore,Australia,Switzerland and the Netherlands.

Weighted by market capitalization (the total value of all shares outstanding in a country’s stock market) and share liquidity (a measure of the proportion of a company’s shares actually available to be bought or sold by the public), approximately 70% of the MSCI EAFE Free Index’s total value is represented by its top five countries, which currently are Great Britain, Japan, France, Switzerland and Germany.The MSCI EAFE Free Index is diversified among industry groups, as those groups are represented in individual country markets.

The fund attempts to match the Index return before fees and expenses by aligning the portfolio composition with the composition of the MSCI EAFE Free Index. Beginning by country, the fund invests in proportion to each country’s weighting in the Index.That means that if the

The Fund 3


DISCUSSION OF FUND PERFORMANCE (continued)

British market comprises 25% of the Index, then approximately 25% of the fund’s assets will be invested in Britain. In addition, the fund’s industry allocation also matches that of the Index, in the proper proportion. For example, if a certain percentage of the market value in the Japanese sub-index is composed of financial services firms, that same approximate percentage of the investment in the Japanese markets will also be invested in that sector.The fund also invests in securities that represent the market as a whole, such as stock index futures, and manages its exposure to foreign currencies so that the fund’s currency profile matches the currency makeup of the MSCI EAFE Free Index.

What other factors influenced the fund’s performance?

Most international stock markets were in the midst of a rally when the reporting period began. Companies throughout the world benefited at the time from an expanding global economy. U.S. consumer spending was strong, as was demand for energy and industrial commodities from China and other emerging markets.

During the first quarter of 2005, however, higher energy prices, mounting inflationary pressures, higher interest rates in many nations and a relatively weak U.S. dollar caused investors to worry that global economic growth might slow. As a result, by the end of the reporting period, international equities had given back some of their previous gains. Nonetheless, the Index posted gains in all but one of the 21 countries in which it invests.

The Index’s strongest returns stemmed from its investments in Austria, where Boehler-Uddeholm, a tooling material company and OMV, Austria’s largest oil and chemicals firm, helped fuel returns. Greece also provided attractive results, with market gains driven by Hellenic Technodomiki, a construction and building materials firm, Bank of Piraeus and OPAP, also known as the Organization of Football. In Norway, three stocks contributed strongly to the Index’s performance: drilling contractor Smedvig, oil services provider

4

Petroleum Geo-Services, fertilizer and industrial gas producer Yara International. From a market sector standpoint, the consumer non-durables and health care areas made the greatest contribution to the Index’s return during the reporting period.

On the other hand, Ireland was the only country that posted a negative absolute return during the reporting period, and relatively small gains were posted by Portugal and Japan. In terms of market sectors, the consumer durables and technology stocks hindered the Index’s overall performance.

What is the fund’s current strategy?

The strategy of this fund is to provide investors with a cost-effective way to gain broad exposure to international developed markets represented by the MSCI EAFE Free Index. As an index fund, the investments are not impacted by an individual’s preference for one market over another or one security over another. Instead it reflects the general composition of the overall market.

May 16, 2005
1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price, yield and investment return fluctuate such that upon 
    redemption, fund shares may be worth more or less than their original cost. Return figure provided 
    reflects the absorption of fund expenses by The Dreyfus Corporation pursuant to an agreement in 
    effect that may be extended, terminated or modified. Had these expenses not been absorbed, the 
    fund’s return would have been lower. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable, 
    capital gain distributions.The Morgan Stanley Capital International Europe, Australasia, Far 
    East (MSCI EAFE) Free Index is an unmanaged index composed of a sample of companies 
    representative of the market structure of European and Pacific Basin countries.The index reflects 
    actual investable opportunities for global investors for stocks that are free of foreign ownership 
    limits or legal restrictions at the country level. 

The Fund 5


U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )

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

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus International Stock Index Fund from November 1, 2004 to April 30, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment assuming actual returns for the six months ended April 30, 2005

Expenses paid per $1,000     $ 3.11 
Ending value (after expenses)    $1,088.00 

COMPARING YOUR FUND’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2005

Expenses paid per $1,000     $ 3.01 
Ending value (after expenses)    $1,021.82 

Expenses are equal to the fund’s annualized expense ratio of .60%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS
April 30, 2005 (Unaudited)
Common Stocks—98.2%    Shares    Value ($) 



Australia—5.2%         
AMP    32,584    172,316 
AXA Asia Pacific Holdings    11,966    40,199 
Alumina    20,091    90,255 
Amcor    15,267    77,747 
Ansell    2,300    16,836 
Aristocrat Leisure    5,262    40,063 
Australia & New Zealand Banking Group    32,210    544,736 
Australian Gas Light    8,315    93,456 
Australian Stock Exchange    1,805    28,219 
BHP Billiton    63,205    798,364 
BlueScope Steel    13,358    80,082 
Boral    10,893    49,462 
Brambles Industries    16,702    102,715 
CFS Gandel Retail Trust (Units)    25,706    31,868 
CSL    3,605    89,533 
CSR    17,462    32,741 
Centro Properties Group    14,248    57,079 
Coca-Cola Amatil    8,709    56,414 
Cochlear    1,053    25,309 
Coles Myer    21,064    141,507 
Commonwealth Bank of Australia    22,511    640,820 
Commonwealth Property Office Fund (Units)    23,240    22,977 
Computershare    7,663    30,331 
DB RREEF Trust    44,088    45,045 
Foster's Group    34,288    137,668 
Futuris    7,437    11,031 
General Property Trust (Units)    35,832    104,054 
Harvey Norman Holdings    7,600    14,721 
ING Industrial Fund (Units)    14,004    22,572 
Iluka Resources    3,328    15,226 
Insurance Australia Group    28,040    133,460 
Investa Property Group    26,768    43,148 
James Hardie Industries    7,823    34,334 
John Fairfax Holdings    15,266    45,423 
Leighton Holdings    2,731    21,175 

The Fund 7


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Australia (continued)         
Lend Lease    5,980    55,897 
Lion Nathan    5,126    29,248 
Macquarie Bank    3,802    136,698 
Macquarie Goodman Group    20,902    64,588 
Macquarie Infrastructure Group    33,565    95,675 
Mayne Group    11,000    30,175 
Mirvac Group    14,059    46,195 
National Australia Bank    27,418    626,086 
Newcrest Mining    6,042    70,098 
OneSteel    11,570    19,917 
Orica    4,898    60,460 
Origin Energy    14,000    76,746 
Pacific Brands    7,100    12,238 
PaperlinX    7,150    15,852 
Patrick    9,158    38,958 
Perpetual Trustees Australia    708    28,643 
Publishing & Broadcasting    2,474    27,686 
QBE Insurance Group    13,076    153,095 
Qantas Airways    17,284    43,579 
Rinker Group    16,119    143,955 
Rio Tinto    5,447    176,824 
Santos    10,729    77,696 
Sonic Healthcare    4,210    38,967 
Southcorp    9,724    32,247 
Stockland    21,889    100,087 
Suncorp-Metway    9,730    150,301 
TABCORP Holdings    8,961    108,978 
Telstra    38,020    143,920 
Toll Holdings    3,914    39,031 
Transurban Group    10,037    58,247 
WMC Resources    20,049    124,277 
Wesfarmers    6,573    185,465 
Westfield Group    24,861    316,857 
Westpac Banking    31,573    480,835 
Woodside Petroleum    8,370    153,898 
Woolworths    18,611    223,279 
        8,077,584 

8


Common Stocks (continued)    Shares        Value ($) 




Austria—.4%             
Bank Austria Creditanstalt    617        57,098 
Boehler-Uddeholm    150        19,439 
Erste Bank der Oesterreichischen Sparkassen    2,080        100,809 
Flughafen Wien    140        9,103 
IMMOFINANZ Immobilien Anlagen    3,887    a    35,424 
IMMOFINANZ Immobilien Anlagen (Rights)    3,887    a    803 
Mayr-Melnhof Karton    60        8,946 
OMV    300        92,566 
RHI    200    a    5,708 
Telekom Austria    6,024        116,139 
VA Technologie    150    a    12,001 
Verbund Oesterreichische Elektrizitaetswirtschafts, CL. A    120        29,996 
Voestalpine    466        31,625 
Wienerberger    1,063        45,098 
            564,755 
Belgium—1.4%             
AGFA-Gevaert    1,621        53,036 
Barco    180        13,847 
Bekaert    240        18,569 
Belgacom    2,805        107,257 
Cofinimmo    70        11,842 
Colruyt    315        47,752 
Compagnie Maritime Belge    250        9,462 
Cumerio    435        5,891 
Delhaize Group    1,222        80,876 
Dexia    11,119        256,807 
D'ieteren    35        7,752 
Electrabel    479        223,341 
Euronav    300        10,203 
Fortis    20,657        575,995 
Groupe Bruxelles Lambert    1,192        107,767 
InBev    3,220        102,801 
KBC Groupe    3,259        258,710 
Mobistar    481        41,110 
Omega Pharma    427        23,171 
Solvay    1,091        124,567 

The Fund 9


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Belgium (continued)         
UCB    1,603    78,250 
Umicore    435    37,856 
        2,196,862 
Denmark—.8%         
AP Moller—Maersk    19    168,424 
Bang & Olufsen, CL B    250    15,910 
Carlsberg, CL. B    500    24,623 
Coloplast, CL. B    400    23,109 
DSV    400    30,605 
Danisco    880    58,705 
Danske Bank    7,609    223,614 
East Asiatic    300    17,825 
FLSmidth, CL. B    500    8,498 
GN Store Nord    4,350    45,651 
H Lundbeck    1,100    25,913 
ISS    832    66,777 
Kobenhavns Lufthavne    75    16,851 
NKT Holding    200    7,049 
Novo-Nordisk, CL. B    4,166    210,745 
Novozymes, CL. B    1,025    49,992 
TDC    3,284    140,720 
Topdanmark    400 a    28,523 
Vestas Wind Systems    3,400 a    43,144 
William Demant Holding    400 a    19,075 
        1,225,753 
Finland—1.5%         
Amer Sports    1,140    18,911 
Elisa    2,550    36,536 
Fortum    6,447    97,918 
KCI Konecranes    200    7,867 
Kesko, CL. B    1,140    27,581 
Kone, CL. B    785    59,739 
Metso    1,910    34,699 
Neste Oil    1,361    30,501 
Nokia    82,223    1,318,166 
Nokian Renkaat    1,500    25,140 

10


Common Stocks (continued)    Shares    Value ($) 



Finland (continued)         
Orion, CL. B    1,500    25,587 
Outokumpu    1,440    20,281 
Pohjola Group, Cl. D    860    11,091 
Rautaruukki    2,100    27,011 
Sampo, CL. A    6,953    97,264 
Stora Enso, CL. R    10,935    145,529 
Tietoenator    1,403    42,561 
UPM-Kymmene    9,384    188,237 
Uponor    1,000    19,884 
Wartsila, CL. B    1,050    27,848 
        2,262,351 
France—9.1%         
AXA    25,062    619,797 
Accor    3,518    161,306 
Air France-KLM    2,198    34,711 
Air Liquide    1,937    346,776 
Alcatel    21,760 a    234,922 
Alstom    72,614 a    56,408 
Atos Origin    948 a    57,228 
Autoroutes du Sud de la France    1,278    66,332 
BNP Paribas    14,048    928,619 
Bouygues    3,511    140,401 
Business Objects    1,231 a    31,999 
CNP Assurances    592    40,309 
CapGemini    2,237 a    69,916 
Carrefour    10,138    494,265 
Casino Guichard Perrachon    552    41,030 
Cie de Saint-Gobain    5,449    308,457 
Cie Generale d'Optique Essilor International    1,679    120,300 
Compagnie Generale des Etablissements Michelin, Cl. B    2,513    152,696 
Credit Agricole    11,524    299,325 
Dassault Systemes    913    43,006 
European Aeronautic Defense and Space    4,175    119,220 
France Telecom    26,137    767,550 
Gecina    627    71,136 
Groupe Danone    4,276    402,004 

The Fund 11


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



France (continued)         
Hermes International    145    27,713 
Imerys    515    36,890 
Klepierre    421    40,603 
L'Oreal    5,393    388,401 
LVMH Moet Hennessy Louis Vuitton    4,257    301,795 
Lafarge    2,969    270,868 
Lagardere SCA    2,220    161,058 
Pernod-Ricard    887    134,801 
Peugeot    2,976    176,871 
Pinault-Printemps-Redoute    1,157    114,168 
Publicis Groupe    2,113    60,659 
Renault    3,220    270,564 
Sagem    3,111    64,230 
Sanofi-Aventis    17,175    1,525,701 
Schneider Electric    3,851    278,148 
Societe BIC    551    29,873 
Societe Generale    5,893    589,390 
Societe Television Francaise 1    2,139    60,744 
Sodexho Alliance    1,774    59,648 
Suez    14,256    390,682 
Technip    357    60,713 
Thales    1,434    58,325 
Thomson    4,110    101,713 
Total    10,027    2,232,296 
Unibail    739    91,503 
Valeo    1,372    60,113 
Veolia Environnement    5,424    205,150 
Vinci    1,274    192,022 
Vivendi Universal    18,016    536,949 
Zodiac    711    34,603 
        14,163,907 
Germany—6.3%         
Adidas-Salomon    788    122,902 
Allianz    5,438    653,108 
Altana    1,256    78,779 
BASF    9,153    593,639 

12


Common Stocks (continued)    Shares    Value ($) 



Germany (continued)         
Bayer    11,656    383,687 
Bayerische Hypo-und Vereinsbank    11,352 a    269,585 
Beiersdorf    287    31,184 
Celesio    579    46,026 
Commerzbank    7,856    173,043 
Continental    2,289    169,469 
DaimlerChrysler    15,218    599,279 
Deutsche Bank    8,645    708,612 
Deutsche Boerse    1,821    138,157 
Deutsche Lufthansa    4,258    55,365 
Deutsche Post    8,932    209,915 
Deutsche Telekom    48,140    903,767 
Douglas Holding    637    21,686 
E.ON    10,988    928,397 
Epcos    690 a    7,906 
Fresenius Medical Care    654    52,249 
HeidelbergCement    1,218    70,740 
Hypo Real Estate Holding    2,260    94,150 
Infineon Technologies    10,864 a    91,758 
KarstadtQuelle    709    6,865 
Linde    1,444    95,960 
MAN    2,429    102,654 
MLP    1,065    17,204 
Merck KGaA    912    69,822 
Metro    2,503    133,667 
Muenchener Rueckversicherungs    3,257    358,511 
Puma    303    70,095 
RWE    7,415    444,505 
SAP    3,625    571,991 
Schering    2,886    191,523 
Siemens    14,063    1,036,912 
Suedzucker    1,081    19,886 
TUI    2,524    61,095 
ThyssenKrupp    5,316    98,135 
Volkswagen    3,924    163,972 
        9,846,200 

The Fund 13


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Greece—.6%         
Alpha Bank    4,059    131,397 
Coca Cola Hellenic Bottling    1,908    51,701 
Cosmote Mobile Telecommunications    1,800    34,298 
EFG Eurobank Ergasias    3,210    97,065 
Emporiki Bank of Greece    950    29,432 
Folli—Follie    200    5,655 
Germanos    370    11,615 
Hellenic Duty Free Shops    300    5,180 
Hellenic Petroleum    1,600    16,828 
Hellenic Technodomiki Tev    1,080    5,307 
Hellenic Telecommunications Organization    4,470    83,830 
Hyatt Regency    600    7,314 
Intracom    1,100    5,579 
National Bank of Greece    4,650    156,238 
OPAP    2,850    74,832 
Piraeus Bank    2,800    47,375 
Public Power    1,800    48,503 
Technical Olympic    1,000    5,832 
Titan Cement    1,000    31,755 
Viohalco    1,550    11,723 
        861,459 
Hong Kong—1.7%         
ASM Pacific Technology    2,500    10,175 
BOC Hong Kong Holdings    65,500    124,791 
Bank of East Asia    24,391    71,662 
CLP Holdings    31,288    178,076 
Cathay Pacific Airways    17,000    32,338 
Cheung Kong Holdings    26,000    245,916 
Cheung Kong Infrastructure Holdings    8,000    25,355 
Esprit Holdings    16,000    119,766 
Giordano International    20,000    13,907 
Hang Lung Properties    31,000    47,727 
Hang Seng Bank    13,400    183,450 
Henderson Land Development    13,000    60,605 
Hong Kong & China Gas    65,772    134,802 
Hong Kong Exchanges and Clearing    18,000    43,851 

14


Common Stocks (continued)    Shares        Value ($) 




Hong Kong (continued)             
HongKong Electric Holdings    24,500        112,123 
Hopewell Holdings    10,000        24,430 
Hutchison Telecommunications International    23,000        21,863 
Hutchison Whampoa    37,800        338,993 
Hysan Development    13,000        26,886 
Johnson Electric Holdings    25,900        23,208 
Kerry Properties    7,000        15,337 
Kingboard Chemical Holdings    9,000        26,749 
Kingboard Chemical Holdings (Warrants)    600    a    500 
Li & Fung    28,000        53,785 
MTR    24,500        39,151 
New World Development    36,191        39,220 
Orient Overseas International    3,300        15,903 
PCCW    59,207        35,121 
SCMP Group    11,759        5,552 
Shangri-La Asia    20,000        30,545 
Sino Land    14,664        13,912 
SmarTone Telecommunications Holding    4,000        4,415 
Sun Hung Kai Properties    23,699        227,620 
Swire Pacific, CL. A    16,500        138,639 
Techtronic Industries    15,000        33,631 
Television Broadcasts    6,000        30,194 
Texwinca Holdings    8,000        6,681 
Wharf Holdings    20,171        67,513 
Yue Yuen Industrial Holdings    9,800        27,807 
            2,652,199 
Ireland—.8%             
Allied Irish Banks    15,378        313,876 
Bank of Ireland    17,191        260,099 
CRH    9,461        235,482 
DCC    1,465        32,786 
Depfa Bank    6,115        94,568 
Eircom Group    9,701        23,431 
Elan    6,426    a    35,101 
Fyffes    6,620        18,615 
Grafton Group (Units)    3,695        42,168 

The Fund 15


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Ireland (continued)         
Greencore Group    2,474    10,246 
Independent News & Media    8,990    28,555 
Irish Life & Permanent    4,916    82,279 
Kerry Group, CL. A    2,413    58,604 
Kingspan Group    1,760    19,793 
Ryanair Holdings    2,000 a    14,654 
Waterford Wedgwood (Units)    21,509 a    1,017 
        1,271,274 
Italy—4.0%         
Alleanza Assicurazioni    8,033    95,782 
Arnoldo Mondadori Editore    2,344    24,453 
Assicurazioni Generali    16,929    522,668 
Autogrill    1,808    25,529 
Autostrade    5,036    133,410 
Banca Antonveneta    3,973    132,882 
Banca Fideuram    4,720    24,707 
Banca Intesa    57,878    277,783 
Banca Intesa (RNC)    15,552    67,528 
Banca Monte dei Paschi di Siena    19,844    69,896 
Banca Nazionale del Lavoro    30,038 a    94,996 
Banca Popolare di Milano    7,102    67,722 
Banche Popolari Unite    5,798    123,228 
Banco Popolare di Verona e Novara    6,367    117,739 
Benetton Group    730    6,743 
Bulgari    2,557    27,886 
Capitalia    24,656    132,583 
ENI    45,897    1,156,374 
Edison    15,336 a    32,106 
Enel    64,658    615,582 
Fiat    9,391 a    62,191 
FinecoGroup    3,057    25,313 
Finmeccanica    104,772    97,643 
Gruppo Editoriale L'Espresso    3,559    20,631 
Italcementi    1,065    17,397 
Luxottica Group    2,554    51,085 
Mediaset    10,122    132,077 

16


Common Stocks (continued)    Shares    Value ($) 



Italy (continued)         
Mediobanca    8,015    132,447 
Mediolanum    4,030    26,287 
Pirelli & C    45,846    52,243 
Riunione Adriatica di Sicurta    5,192    113,476 
Sanpaolo IMI    18,891    280,856 
Seat Pagine Gialle    77,304    30,042 
Snam Rete Gas    16,019    90,438 
TIM    21,678    126,971 
Telecom Italia    146,027    496,873 
Telecom Italia (RNC)    100,644    284,608 
Telecom Italia Media    19,085 a    9,324 
Terna    17,885    49,178 
Tiscali    4,586 a    13,519 
UniCredito Italiano    78,280    440,626 
        6,302,822 
Japan—21.1%         
Acom    1,250    80,481 
Aderans    600    14,320 
Advantest    1,200    84,631 
Aeon    10,200    158,465 
Aeon Credit Service    520    34,343 
Aiful    1,125    84,042 
Aisin Seiki    2,700    58,725 
Ajinomoto    10,800    129,895 
Alfresa Holdings    500    22,588 
All Nippon Airways    9,000    29,118 
Alps Electric    3,000    47,110 
Amada    6,000    37,215 
Amano    1,000    10,960 
Anritsu    2,000    12,002 
Aoyama Trading    800    20,949 
Ariake Japan    320    7,930 
Asahi Breweries    6,700    85,430 
Asahi Glass    13,800    152,965 
Asahi Kasei    20,900    100,969 
Asatsu-DK    500    15,583 

The Fund 17


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Astellas Pharma    9,379    340,690 
Autobacs Seven    400    13,016 
Bandai    1,100    25,139 
Bank of Fukuoka    9,000    54,591 
Bank of Yokohama    22,000    125,807 
Benesse    1,100    35,703 
Bridgestone    11,400    218,932 
COMSYS Holdings    2,000    17,211 
CSK    1,000    38,283 
Canon    14,900    776,644 
Capcom    600    6,281 
Casio Computer    3,000    41,130 
Central Glass    3,000    20,628 
Central Japan Railway    18    148,122 
Chiba Bank    12,000    73,998 
Chubu Electric Power    11,600    278,068 
Chugai Pharmaceutical    5,028    78,518 
Circle K Sunkus    600    14,475 
Citizen Watch    4,800    43,829 
Coca-Cola West Japan    600    13,776 
Credit Saison    2,400    82,118 
Dai Nippon Printing    10,800    173,490 
Daicel Chemical Industries    4,000    21,523 
Daido Steel    200    788 
Daiichi Pharmaceutical    4,300    99,747 
Daikin Industries    3,300    82,404 
Daimaru    4,000    34,975 
Dainippon Ink and Chemicals    12,000    32,633 
Dainippon Screen Manufacturing    3,000    20,358 
Daito Trust Construction    1,500    60,082 
Daiwa House Industry    8,400    94,307 
Daiwa Securities Group    22,000    139,312 
Denki Kagaku Kogyo    7,600    26,246 
Denso    9,500    224,437 
Dentsu    28    71,571 

18

Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Dowa Mining    5,000    32,903 
East Japan Railway    60    312,379 
Ebara    4,000    16,104 
Eisai    4,500    149,865 
Electric Power Development    2,400    72,511 
FamilyMart    1,100    34,178 
Fanuc    2,600    153,815 
Fast Retailing    900    53,290 
Fuji Electric Holdings    10,000    29,885 
Fuji Photo Film    8,200    271,496 
Fuji Soft ABC    600    17,693 
Fuji Television Network    6    12,645 
Fujikura    5,000    21,706 
Fujitsu    30,800    169,924 
Furukawa Electric    10,000    44,272 
Goodwill Group    5    9,970 
Gunma Bank    6,000    33,830 
Gunze    3,000    13,480 
Hankyu Department Stores    2,000    14,173 
Hino Motors    4,000    24,160 
Hirose Electric    500    51,043 
Hitachi    55,900    328,375 
Hitachi Cable    3,000    12,849 
Hitachi Capital    1,000    18,992 
Hitachi Chemical    1,600    27,469 
Hitachi Construction Machinery    1,400    17,897 
Hitachi Software Engineering    400    7,096 
Hokkaido Electric Power    3,300    66,229 
Hokuhoku Financial Group    16,000    45,347 
Honda Motor    13,260    638,558 
House Foods    1,020    14,571 
Hoya    1,900    198,655 
INPEX    7    38,186 
Isetan    2,600    31,210 
Ishihara Sangyo Kaisha    4,000    8,969 

The Fund 19


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Ishikawajima-Harima Heavy Industries    17,000    27,902 
Ito En    400    19,637 
Itochu    23,500    116,166 
Itochu Techno-Science    500    16,082 
Ito-Yokado    6,000    205,925 
Jafco    500    28,818 
Japan Airlines    11,600    32,965 
Japan Real Estate Investment    4    32,961 
Japan Retail Fund Investment    4    32,447 
Japan Tobacco    16    205,881 
JFE Holdings    9,360    259,595 
JGC    4,000    41,029 
JS Group    4,524    81,352 
JSR    3,300    66,642 
Joyo Bank    12,462    62,348 
Kajima    14,800    56,326 
Kaken Pharmaceutical    2,000    14,354 
Kamigumi    4,400    34,415 
Kandenko    105    677 
Kanebo    600 a    4,088 
Kaneka    5,000    54,470 
Kansai Electric Power    12,599    253,382 
Kansai Paint    3,000    18,001 
Kao    9,000    206,901 
Katokichi    1,800    13,456 
Kawasaki Heavy Industries    21,000    40,669 
Kawasaki Kisen Kaisha    8,000    52,225 
Keihin Electric Express Railway    7,000    42,460 
Keio Electric Railway    9,000    50,895 
Keyence    540    119,517 
Kikkoman    3,000    28,934 
Kinden    2,000    16,718 
Kintetsu    26,354    81,937 
Kirin Brewery    12,000    116,954 
Kobe Steel    43,000    77,738 
Kokuyo    1,000    12,934 

20


Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Komatsu    16,600    117,185 
Komori    1,000    15,372 
Konami    1,500    32,223 
Konica Minolta Holdings    8,000    77,227 
Koyo Seiko    2,000    27,030 
Kubota    18,000    93,066 
Kuraray    6,500    60,182 
Kurita Water Industries    1,900    29,578 
Kyocera    2,900    212,013 
Kyowa Hakko Kogyo    6,000    44,490 
Kyushu Electric Power    7,100    152,601 
Lawson    900    34,932 
Leopalace21    1,800    27,609 
MEDICEO Holdings    1,700    21,271 
Mabuchi Motor    500    30,036 
Maeda Road Construction    200    1,480 
Makita    2,000    37,871 
Marubeni    22,000    71,805 
Maruha Group    400    1,003 
Marui    5,200    66,857 
Matsumotokiyoshi    700    19,787 
Matsushita Electric Industrial    39,195    574,156 
Matsushita Electric Works    5,000    42,127 
Meiji Dairies    4,000    22,240 
Meiji Seika Kaisha    6,000    28,856 
Meitec    500    16,519 
Millea Holdings    25    340,752 
Minebea    5,000    19,892 
Mitsubishi    19,500    267,011 
Mitsubishi Chemical    28,200    89,596 
Mitsubishi Electric    31,000    164,272 
Mitsubishi Estate    17,000    182,567 
Mitsubishi Gas Chemical    7,000    34,272 
Mitsubishi Heavy Industries    48,700    129,503 
Mitsubishi Logistics    2,000    20,738 
Mitsubishi Materials    14,000    32,461 

The Fund 21


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Mitsubishi Rayon    9,000    33,992 
Mitsubishi Tokyo Financial Group    81    702,569 
Mitsui    22,400    213,023 
Mitsui Chemicals    10,000    56,758 
Mitsui Engineering & Shipbuilding    13,000    28,149 
Mitsui Fudosan    12,000    133,934 
Mitsui Mining & Smelting    10,000    43,026 
Mitsui OSK Lines    15,000    94,775 
Mitsui Sumitomo Insurance    22,230    202,321 
Mitsui Trust Holdings    9,380    93,151 
Mitsukoshi    7,000    33,013 
Mitsumi Electric    900    9,919 
Mizuho Financial Group    137    644,420 
Murata Manufacturing    3,900    194,020 
NEC    28,800    158,863 
NEC Electronics    700    31,623 
NET One Systems    9    22,837 
NGK Insulators    5,000    51,468 
NGK Spark Plug    3,000    31,396 
NOK    1,700    44,526 
NSK    7,000    34,600 
NTN    7,000    37,262 
NTT Data    22    67,812 
NTT DoCoMo    355    548,668 
Namco    1,100    14,741 
Nichii Gakkan    320    9,185 
Nichirei    4,000    14,803 
Nidec    800    93,871 
Nikko Cordial    28,000    130,937 
Nikon    4,600    48,406 
Nintendo    1,750    199,646 
Nippon Building Fund    5    44,804 
Nippon Express    14,000    67,985 
Nippon Kayaku    2,000    11,296 
Nippon Light Metal    5,400    13,809 
Nippon Meat Packers    3,000    37,910 

22


Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Nippon Mining Holdings    13,300    80,220 
Nippon Oil    21,800    153,353 
Nippon Paper Group    15    64,620 
Nippon Sheet Glass    7,000    28,621 
Nippon Shokubai    3,000    26,991 
Nippon Steel    109,100    276,579 
Nippon Telegraph & Telephone    90    376,765 
Nippon Yusen    16,800    99,400 
Nishimatsu Construction    3,000    11,245 
Nissan Chemical Industries    3,000    26,067 
Nissan Motor    44,000    434,380 
Nisshin Seifun Group    3,000    31,309 
Nisshin Steel    12,000    30,926 
Nisshinbo Industries    3,000    23,483 
Nissin Food Products    1,600    42,489 
Nitori    350    23,590 
Nitto Denko    3,000    163,833 
Nomura Holdings    33,000    419,483 
Nomura Research Institute    400    38,122 
OJI Paper    15,000    80,061 
ORIX    1,440    196,249 
Obayashi    10,000    58,519 
Obic    100    18,133 
Odakyu Electric Railway    11,000    63,553 
Oki Electric Industry    10,000    37,403 
Okumura    3,000    18,581 
Olympus    4,000    81,100 
Omron    3,500    76,261 
Onward Kashiyama    3,000    38,564 
Oracle Corp Japan    500    21,826 
Oriental Land    900    56,530 
Osaka Gas    36,000    113,230 
Pioneer    2,500    42,688 
Promise    1,500    97,166 
QP    1,500    13,489 
Rakuten    87    72,967 

The Fund 23


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Resona Holdings    80,000    151,124 
Ricoh    12,000    191,630 
Rinnai    500    12,801 
Rohm    1,900    179,247 
Ryohin Keikaku    400    20,206 
SMC    1,000    105,432 
Saizeriya    400    5,372 
Sanden    2,000    9,445 
Sanken Electric    2,000    27,120 
Sankyo    6,600    137,514 
Sankyo    900    44,564 
Sanwa Shutter    3,200    17,283 
Sanyo Electric    26,000    75,026 
Sapporo Holdings    4,000    18,693 
Secom    3,500    140,315 
Sega Sammy Holdings    1,192    69,612 
Seiko Epson    1,700    59,031 
Seino Transportation    3,000    28,496 
Sekisui Chemical    7,000    50,751 
Sekisui House    9,000    95,214 
Seven-Eleven Japan    6,500    183,007 
77 Bank    6,000    40,747 
Sharp    17,000    265,876 
Shimachu    700    18,062 
Shimamura    300    24,862 
Shimano    1,200    39,573 
Shimizu    8,000    38,011 
Shin-Etsu Chemical    6,500    240,372 
Shinsei Bank    17,000    92,261 
Shionogi    5,000    69,613 
Shiseido    6,000    76,401 
Shizuoka Bank    10,400    96,917 
Showa Denko    17,000    43,228 
Showa Shell Sekiyu    3,000    30,174 
Skylark    1,000    16,617 

24

Common Stocks (continued)    Shares        Value ($) 




Japan (continued)             
Snow Brand Milk Products    1,750    a    5,492 
Softbank    4,100        165,084 
Sojitz Holdings    2,600    a    12,636 
Sompo Japan Insurance    13,000        126,256 
Sony    16,380        603,963 
Stanley Electric    2,600        42,225 
Sumitomo    16,000        135,413 
Sumitomo Bakelite    3,000        18,717 
Sumitomo Chemical    24,000        122,837 
Sumitomo Electric Industries    11,800        123,380 
Sumitomo Heavy Industries    9,000        36,589 
Sumitomo Metal Industries    65,000        115,219 
Sumitomo Metal Mining    9,000        63,281 
Sumitomo Mitsui Financial Group    77        497,574 
Sumitomo Osaka Cement    5,000        12,690 
Sumitomo Realty & Development    7,000        79,880 
Sumitomo Trust & Banking    21,000        131,419 
Suruga Bank    4,000        34,861 
Suzuken    720        19,626 
T&D Holdings    3,250        160,614 
TDK    2,200        154,037 
THK    1,500        28,118 
TIS    500        17,990 
Taiheiyo Cement    14,000        39,229 
Taisei    16,000        56,171 
Taisho Pharmaceutical    3,000        64,262 
Taiyo Nippon Sanso    4,000        22,686 
Taiyo Yuden    2,100        21,774 
Takara Holdings    3,000        19,256 
Takashimaya    5,000        44,598 
Takeda Pharmaceutical    15,700        764,660 
Takefuji    1,900        120,240 
Takuma    1,000        8,094 
Teijin    14,000        63,425 
Teikoku Oil    4,000        28,532 

The Fund 25


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Terumo    3,100    92,265 
Tobu Railway    12,000    44,975 
Toda    3,000    14,766 
Toho    2,400    37,971 
Tohoku Electric Power    7,300    140,915 
Tokyo Broadcasting System    500    9,409 
Tokyo Electric Power    20,372    488,885 
Tokyo Electron    3,000    154,963 
Tokyo Gas    45,000    180,346 
Tokyo Style    2,000    21,979 
Tokyu    16,820    81,498 
Tokyu Land    5,000    20,711 
TonenGeneral Sekiyu    5,000    53,410 
Toppan Printing    10,000    109,348 
Toray Industries    20,000    89,280 
Toshiba    51,000    209,007 
Tosoh    7,000    32,890 
Toto    5,000    42,603 
Toyo Seikan Kaisha    2,400    44,208 
Toyo Suisan Kaisha    2,000    31,448 
Toyobo    8,200    19,323 
Toyoda Gosei    800    14,612 
Toyota Industries    3,300    91,679 
Toyota Motor    50,914    1,852,871 
Trend Micro    1,500    55,112 
UFJ Holdings    67 a    352,850 
UNY    3,000    34,855 
USS    450    35,592 
Ube Industries    15,600    31,267 
Uni-Charm    800    35,772 
Uniden    1,000    20,136 
Ushio    2,000    38,636 
Wacoal    2,000    25,101 
West Japan Railway    29    107,552 
World    700    23,218 

26

Common Stocks (continued)    Shares    Value ($) 



Japan (continued)         
Yahoo! Japan    64    142,279 
Yakult Honsha    2,000    39,667 
Yamada Denki    1,300    62,502 
Yamaha    2,800    41,500 
Yamaha Motor    2,800    49,164 
Yamato Transport    7,400    97,890 
Yamazaki Baking    2,000    17,747 
Yokogawa Electric    3,900    50,885 
Zeon    3,000    23,790 
        32,853,275 
Luxembourg—.1%         
Arcelor    8,393    170,428 
Oriflame Cosmetics    580 a    12,478 
        182,906 
Netherlands—4.9%         
ABN AMRO Holding    30,832    757,016 
ASML Holding    8,512 a    123,421 
Aegon    24,276    305,513 
Akzo Nobel    4,746    195,493 
Corio    708    38,129 
DSM    1,376    92,719 
Euronext    1,645    54,355 
Getronics    14,624    23,332 
Hagemeyer    9,322 a    21,145 
Heineken    4,304    137,202 
IHC Caland    521 a    33,974 
ING Groep    33,064    909,453 
Koninklijke Ahold    27,715 a    211,001 
Koninklijke Philips Electronics    23,267    582,216 
OCE    1,200    17,933 
Qiagen    2,281 a    29,911 
Randstad Holdings    845    34,522 
Reed Elsevier    12,307    177,703 
Rodamco Europe    830    62,898 
Royal Dutch Petroleum    36,692    2,146,811 

The Fund 27


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Netherlands (continued)         
Royal KPN    38,520    322,531 
Royal Numico    2,584 a    107,352 
STMicroelectronics    10,308    146,672 
TNT    6,868    187,394 
Unilever    10,099    652,889 
VNU    4,148    117,122 
Vedior    3,112    48,009 
Wereldhave    389    38,436 
Wolters Kluwer    4,905    87,592 
        7,662,744 
New Zealand—.2%         
Auckland International Airport    19,388    28,322 
Carter Holt Harvey    8,850    12,062 
Contact Energy    5,704    29,751 
Fisher & Paykel Appliances Holdings    3,468    7,087 
Fisher & Paykel Healthcare    6,500    14,392 
Fletcher Building    8,814    40,055 
Independent Newspapers    1,500    6,581 
NGC Holdings    3,200    7,833 
Sky City Entertainment Group    7,799    25,263 
Sky Network Television    1,300    6,294 
Telecom Corp of New Zealand    34,153    151,773 
Tenon    1,122 a    2,986 
Tower    4,325 a    5,686 
Warehouse Group    2,700    7,425 
Waste Management    1,400    6,056 
        351,566 
Norway—.7%         
DNB NOR    11,807    112,998 
Frontline    700    31,013 
Norsk Hydro    2,575    203,487 
Norske Skogindustrier    1,680    29,406 
Orkla    3,258    109,393 
Petroleum Geo-Services    370 a    22,363 
Schibsted    1,100    26,232 

28

Common Stocks (continued)    Shares    Value ($) 



Norway (continued)         
Ship Finance International    70    1,300 
Smedvig, CL. A    800    14,038 
Statoil    11,740    207,361 
Stolt Offshore    3,591 a    26,341 
Storebrand    4,350    32,609 
Tandberg    3,000    30,705 
Telenor    13,857    116,104 
Tomra Systems    2,550    9,379 
Yara International    3,974    52,883 
        1,025,612 
Portugal—.3%         
Banco BPI    5,214    21,029 
Banco Comercial Portugues    37,567    101,172 
Banco Espirito Santo    1,834    31,070 
Brisa-Auto Estradas de Portugal    6,721    53,817 
Cimpor Cimentos de Portugal    4,095    22,737 
Energias de Portugal    35,735    96,958 
Jeronimo Martins    525 a    8,072 
PT Multimedia Servicos de Telecomunicacoes e Multimedia    780    18,539 
Portugal Telecom    13,600    149,776 
Sonae    13,560    21,583 
        524,753 
Singapore—.8%         
Allgreen Properties    6,000    4,367 
Ascendas Real Estate Investment Trust    15,700    19,049 
CapitaLand    19,000    29,707 
CapitaMall Trust    14,000    18,702 
Chartered Semiconductor Manufacturing    14,000 a    8,209 
City Developments    9,000    38,092 
ComfortDelgro    29,700    31,737 
Creative Technology    750    6,488 
DBS Group Holdings    20,059    175,838 
Datacraft Asia    3,000 a    2,828 
Fraser and Neave    3,430    32,610 
Haw Par    1,658    5,286 

The Fund 29


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Singapore (continued)         
Jardine Cycle & Carriage    2,422    18,150 
Keppel    10,500    68,865 
Keppel Land    5,000    7,731 
Neptune Orient Lines    8,000    16,708 
Oversea-Chinese Banking    18,143    149,238 
Overseas Union Enterprise    1,000    5,215 
Parkway Holdings    7,000    7,136 
SMRT    8,000    4,490 
STATS ChipPAC    15,000 a    9,146 
SembCorp Industries    13,037    15,758 
SembCorp Logistics    3,357    3,368 
SembCorp Marine    7,000    8,383 
Singapore Airlines    10,000    68,637 
Singapore Exchange    15,000    17,101 
Singapore Land    2,000    7,244 
Singapore Post    18,000    9,484 
Singapore Press Holdings    28,075    74,977 
Singapore Technologies Engineering    25,000    38,012 
Singapore Telecommunications    116,265    182,396 
Suntec Real Estate Investment Trust    19,000    14,190 
United Overseas Bank    20,112    176,402 
United Overseas Land    5,000    6,805 
Venture    4,000    34,176 
Wing Tai Holdings    6,000    3,427 
        1,319,952 
South Africa—.4%         
Anglo American    25,093    560,002 
Spain—3.9%         
ACS Actividades Cons y Serv    4,559    111,555 
Abertis Infraestructuras    4,088    90,178 
Acciona    488    42,140 
Acerinox    3,120    46,632 
Altadis    4,703    200,223 
Amadeus Global Travel Distribution    6,035    56,537 
Antena 3 de Television    1,243    24,872 

30

Common Stocks (continued)    Shares    Value ($) 



Spain (continued)         
Banco Bilbao Vizcaya Argentaria    56,848    883,414 
Banco Popular Espanol    2,975    185,953 
Banco Santander Central Hispano    104,752    1,227,003 
Cintra Concesiones de Infraestructuras de Transporte    3,202    34,398 
Corp Mapfre    1,777    26,536 
Endesa    16,899    370,412 
Fomento de Construcciones y Contratas    786    42,620 
Gamesa Corp Tecnologica    2,113    27,407 
Gas Natural SDG    2,864    81,934 
Grupo Ferrovial    1,164    66,574 
Iberdrola    13,594    355,596 
Iberia Lineas Aereas de Espana    8,017    24,859 
Inditex    3,759    111,887 
Indra Sistemas    2,010    34,895 
Metrovacesa    804    43,633 
NH Hoteles    1,165    14,154 
Promotora de Informaciones    1,230    23,454 
Repsol YPF    16,222    413,621 
Sacyr Vallehermoso    1,957    33,046 
Sociedad General de Aguas de Barcelona, Cl. A    1,172    24,029 
Sogecable    728 a    27,267 
Telefonica    78,621    1,341,198 
Telefonica Publicidad e Informacion    3,115    28,658 
Union Fenosa    3,685    110,938 
Zeltia    2,944    24,543 
        6,130,166 
Sweden—2.4%         
Alfa Laval    1,700    23,848 
Assa Abloy, CL. B    5,392    69,957 
Atlas Copco, CL. A    2,065    94,098 
Atlas Copco, CL. B    1,200    49,920 
Axfood    420    10,873 
Billerud    800    10,854 
Capio    1,120    17,393 
Castellum    600    22,196 

The Fund 31


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



Sweden (continued)         
D Carnegie    870    9,010 
Electrolux, CL. B    4,907    99,419 
Elekta, CL. B    400 a    14,075 
Eniro    2,873    32,741 
Gambro, CL. A    2,742    37,081 
Gambro, CL. B    2,300    31,207 
Getinge, CL. B    3,400    48,898 
Hennes & Mauritz, CL. B    8,384    290,023 
Hoganas, CL. B    400    10,584 
Holmen, CL. B    900    24,012 
Lundin Petroleum    3,300 a    24,782 
Modern Times Group, CL. B    900 a    27,808 
Nordea Bank    37,258    354,642 
OMX    1,650 a    19,200 
SAS    2,050 a    18,206 
SKF, Cl. B    1,597    67,485 
Sandvik    3,766    147,939 
Scania, CL. B    1,672    64,971 
Securitas, CL. B    4,804    77,346 
Skandia Forsakrings    18,860    88,870 
Skandinaviska Enskilda Banken, CL. A    8,329    147,336 
Skanska, CL. B    6,499    78,409 
Ssab Svenskt Stal, Ser. A    900    20,792 
Ssab Svenskt Stal, Ser. B    400    8,905 
Svenska Cellulosa, CL. B    3,302    115,220 
Svenska Handelsbanken, CL. A    9,088    204,865 
Swedish Match    5,764    68,182 
Telefonaktiebolaget LM Ericsson, CL. B    261,381    776,948 
Tele2, CL. B    1,615    51,285 
TeliaSonera    37,734    197,874 
Trelleborg, CL. B    1,040    15,326 
Volvo, CL. A    1,822    71,312 
Volvo, CL. B    3,953    160,736 
WM-data, Cl. B    5,000    12,715 
Wihlborgs Fastigheter    1,323    32,345 
        3,749,688 

32


Common Stocks (continued)    Shares    Value ($) 



Switzerland—6.9%         
ABB    32,551 a    202,977 
Adecco    2,250    109,173 
Ciba Specialty Chemicals    1,131    71,098 
Clariant    4,141    65,112 
Compagnie Financiere Richemont, Cl. A    9,079    270,449 
Credit Suisse Group    20,070    848,326 
Geberit    57    38,408 
Givaudan    128    80,874 
Holcim    2,818    171,991 
Kudelski    651    21,503 
Kuoni Reisen Holding    41    16,071 
Logitech International    791 a    45,670 
Lonza Group    651    39,355 
Micronas Semiconductor    647 a    23,553 
Nestle    7,108    1,874,251 
Nobel Biocare Holding    397    85,266 
Novartis    41,579    2,031,703 
Phonak Holding    822    28,766 
Rieter Holding    65    18,306 
Roche Holding    12,382    1,504,135 
SGS    76    51,634 
Schindler Holding    83    30,192 
Serono, CL . B    115    73,613 
Straumann Holding    143    30,991 
Sulzer    57    23,230 
Swatch Group    1,198    31,561 
Swatch Group, Cl. B    612    78,677 
Swiss Reinsurance    5,710    380,177 
Swisscom    464    160,786 
Syngenta    1,870    194,229 
Synthes    796    90,639 
UBS    18,840    1,516,764 
Unaxis Holding    216    30,982 
Valora Holding    61    13,350 
Zurich Financial Services    2,550 a    432,491 
        10,686,303 

The Fund 33


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



United Kingdom—24.7         
ARM Holdings    22,841    42,065 
Aegis Group    19,147    35,285 
Aggreko    4,440    15,616 
Alliance Unichem    4,523    69,063 
Amec    5,236    32,441 
Amvescap    13,352    77,729 
Arriva    3,304    32,004 
Associated British Ports Holdings    5,399    47,660 
AstraZeneca    29,106    1,278,040 
Aviva    40,315    455,682 
BAA    18,704    207,517 
BAE Systems    57,080    279,109 
BBA Group    7,305    38,832 
BG Group    62,541    484,119 
BHP Billiton    43,645    532,710 
BOC Group    8,747    162,317 
BP    379,337    3,869,473 
BPB    9,080    79,164 
BT Group    150,930    577,550 
Balfour Beatty    7,805    45,562 
Barclays    113,361    1,169,232 
Barratt Developments    4,062    46,288 
Bellway    2,066    30,244 
Berkeley Group Holdings    2,063    30,418 
Boots Group    13,282    152,894 
Brambles Industries    12,983    72,531 
British Airways    9,939 a    45,423 
British American Tobacco    28,440    533,059 
British Land    9,117    142,919 
British Sky Broadcasting    21,824    226,196 
Bunzl    8,000    78,182 
Cable & Wireless    41,967    96,365 
Cadbury Schweppes    36,726    369,808 
Capita Group    12,060    86,890 
Carnival    2,983    154,207 

34

Common Stocks (continued)    Shares    Value ($) 



United Kingdom (continued)         
Cattles    5,170    30,019 
Centrica    66,498    282,488 
Close Brothers Group    2,095    28,287 
Cobham    2,084    51,587 
Compass Group    37,753    169,140 
Cookson Group    36,741 a    24,964 
Corus Group    69,721 a    58,223 
Daily Mail & General Trust    5,415    69,176 
Davis Service Group    3,572    29,373 
De La Rue    2,707    19,155 
Diageo    53,281    789,910 
Dixons Group    34,175    93,204 
EMI Group    14,255    64,959 
Electrocomponents    8,351    36,777 
Emap    4,617    70,362 
Enterprise Inns    6,355    88,621 
Exel    5,316    83,923 
FKI    8,710    15,538 
Firstgroup    7,518    45,855 
Friends Provident    34,249    105,409 
GKN    13,381    59,071 
GUS    17,669    281,997 
GlaxoSmithKline    103,609    2,611,574 
Great Portland Estates    1,720    10,854 
Group 4 Securicor    21,182    53,348 
HBOS    69,185    1,023,925 
HMV Group    6,560    28,480 
HSBC Holdings    197,003    3,153,506 
Hammerson    4,961    80,899 
Hanson    12,575    116,304 
Hays    30,651    76,618 
Hilton Group    27,834    145,648 
ICAP    7,863    39,477 
IMI    5,951    45,374 
Imperial Chemical Industries    20,564    99,395 

The Fund 35


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



United Kingdom (continued)         
Imperial Tobacco Group    12,934    370,581 
Inchcape    1,275    43,338 
Intercontinental Hotels Group    11,116    132,270 
International Power    26,765    93,374 
Intertek Group    2,632    38,273 
Invensys    97,963 a    24,099 
Johnson Matthey    4,051    71,015 
Kelda Group    6,730    81,356 
Kesa Electricals    9,865    50,173 
Kingfisher    41,785    197,220 
Land Securities Group    8,334    212,491 
Legal & General Group    115,894    231,977 
Liberty International    4,322    78,115 
Lloyds TSB Group    98,762    849,351 
LogicaCMG    12,119    38,072 
London Stock Exchange    4,308    38,039 
MFI Furniture    9,710    18,898 
Man Group    4,763    111,063 
Marconi    3,397 a    16,983 
Marks & Spencer Group    28,797    186,155 
Meggitt    7,362    36,295 
Misys    9,747    37,946 
Mitchells & Butlers    8,756    50,194 
National Express Group    2,380    38,344 
National Grid Transco    54,636    538,380 
Next    4,496    127,570 
Pearson    14,059    171,142 
Peninsular and Oriental Steam Navigation    13,325    68,487 
Persimmon    4,925    63,837 
Pilkington    17,642    36,555 
Premier Farnell    5,140    14,619 
Provident Financial    4,272    54,623 
Prudential    41,838    377,828 
Punch Taverns    4,637    56,142 
Rank Group    11,179    55,554 

36

Common Stocks (continued)    Shares    Value ($) 



United Kingdom (continued)         
Reckitt Benckiser    10,928    355,316 
Reed Elsevier    22,700    222,314 
Rentokil Initial    32,086    96,420 
Reuters Group    25,057    184,782 
Rexam    10,028    88,293 
Rio Tinto    18,877    570,105 
Rolls-Royce Group    26,372    119,864 
Royal & Sun Alliance Insurance Group    50,757    73,534 
Royal Bank of Scotland Group    55,884    1,688,474 
SABMiller    14,309    212,451 
SSL International    3,900    20,523 
Sage Group    23,345    87,524 
Sainsbury (J)    23,356    126,283 
Schroders    2,417    31,255 
Scottish & Newcastle    13,855    120,515 
Scottish & Southern Energy    15,255    274,151 
Scottish Power    33,157    268,668 
Serco Group    7,990    36,534 
Severn Trent    5,981    111,037 
Shell Transport & Trading    169,605    1,521,035 
Signet Group    31,297    60,680 
Slough Estates    7,540    69,289 
Smith & Nephew    16,466    169,756 
Smiths Group    9,843    161,619 
Stagecoach Group    15,251    30,196 
Tate & Lyle    6,999    62,266 
Taylor Woodrow    9,825    53,954 
Tesco    136,720    808,012 
3i Group    10,804    132,190 
Tomkins    12,848    60,498 
Trinity Mirror    5,313    64,886 
Unilever    48,960    466,663 
United Business Media    6,221    59,095 
United Utilities    9,614    116,957 
United Utilities, CL. A    5,676    49,019 

The Fund 37


S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Common Stocks (continued)    Shares    Value ($) 



United Kingdom (continued)         
Vodafone Group    1,160,286    3,032,826 
WPP Group    21,114    230,112 
Whitbread    5,423    88,297 
William Hill    7,237    74,622 
Wimpey (George)    6,559    49,056 
Wolseley    10,451    210,490 
Yell Group    12,098    92,970 
        38,542,925 
Total Common Stocks         
(cost $123,422,189)        153,015,058 



 
Preferred Stocks—.2%         



Germany—.2%         
Fresenius Medical Care    400    23,015 
Henkel KGaA    1,030    89,088 
Porsche    140    90,941 
ProSiebenSat.1 Media    1,533    26,277 
RWE    665    34,438 
Volkswagen    1,897    59,908 
Total Preferred Stocks         
(cost $272,865)        323,667 



 
Other Investments—2.5%         



Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $3,900,000)    3,900,000 b    3,900,000 

38

    Principal     
Short-Term Investments—.2%    Amount ($)    Value ($) 



U.S. Treasury Bill;         
2.72%, 6/9/2005         
(cost $294,131)    295,000 c    294,183 



Total Investments (cost $127,889,185)    101.1%    157,532,908 
Liabilities, Less Cash and Receivables    (1.1%)    (1,634,287) 
Net Assets    100.0%    155,898,621 

a Non-income producing. 
b Investments in affiliated money market mutual funds. 
c Partially held by the broker in a segregated account as collateral for open financial futures positions. 

Portfolio Summary    (Unaudited)         
 
    Value (%)        Value (%) 




Financials    24.8    Telecommunication Services    7.2 
Consumer Discrentionary    12.0    Information Technology    5.9 
Industrials    9.8    Utilities    5.6 
Energy    8.8    Futures Contracts    (.0) 
Health Care    8.6    Short-Term Investments    2.7 
Consumer Staples    8.3         
Materials    7.4        101.1 
 
Based on net assets.             
See notes to financial statetments.         

The Fund 39


STATEMENT OF FINANCIAL FUTURES

April 30, 2005 (Unaudited)

                Unrealized 
        Market Value        Appreciation 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 4/30/2005 ($) 





Financial Futures Long                 
DJ Euro STOXX 50    22    825,898    June 2005    (2,009) 
Financial Times 100    7    641,193    June 2005    (5,908) 
TOPIX    4    428,156    June 2005    2,580 
                (5,337) 

See notes to financial statements.
40

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2005 (Unaudited)

    Cost    Value 



Assets ($):         
Investments in securities—See Statement of Investments:     
Unaffiliated issuers    123,989,185    153,632,908 
Affiliated issuers    3,900,000    3,900,000 
Cash        178,265 
Cash denominated in foreign currencies    458,495    457,601 
Dividends and interest receivable        695,652 
Receivable for shares of Common Stock subscribed    177,016 
Receivable investment securities sold        28,664 
Net unrealized appreciation on forward         
currency exchange contracts—Note 4        18,382 
Receivable for futures variation margin—Note 4    2,096 
        159,090,584 



Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    76,774 
Payable for investment securities purchased    3,043,475 
Payable for shares of Common Stock redeemed    63,052 
Net unrealized depreciation on forward         
currency exchange contracts—Note 4        8,662 
        3,191,963 



Net Assets ($)        155,898,621 



Composition of Net Assets ($):         
Paid-in capital        145,702,385 
Accumulated undistributed investment income—net    897,122 
Accumulated net realized gain (loss) on investments    (20,348,863) 
Accumulated net unrealized appreciation (depreciation)     
on investments and foreign currency transactions [including     
($5,337) net unrealized (depreciation) on financial futures]    29,647,977 


Net Assets ($)        155,898,621 



Shares Outstanding         
(200 million shares of $.001 par value Common Stock authorized)    11,628,947 
Net Asset Value, offering and redemption price per share—Note 3(c) ($)    13.41 

See notes to financial statements.

The Fund 41


STATEMENT OF OPERATIONS
Six Months Ended April 30, 2005 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends (net of $176,001 foreign taxes withheld at source)    2,004,769 
Income on securities lending    1,425 
Total Income    2,006,194 
Expenses:     
Management fee—Note 3(a)    249,339 
Shareholder servicing costs—Note 3(b)    178,100 
Loan commitment fees—Note 2    167 
Total Expenses    427,606 
Investment Income—Net    1,578,588 


Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    180,484 
Net realized gain (loss) on forward currency exchange contracts    283,011 
Net realized gain (loss) on financial futures    175,185 
Net Realized Gain (Loss)    638,680 
Net unrealized appreciation (depreciation) on investments     
and foreign currency transactions (including $1,060     
net unrealized appreciation on financial futures)    8,052,199 
Net Realized and Unrealized Gain (Loss) on Investments    8,690,879 
Net Increase in Net Assets Resulting from Operations    10,269,467 

See notes to financial statements.
42

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 



Operations ($):         
Investment income—net    1,578,588    2,266,584 
Net realized gain (loss) on investments    638,680    (1,547,714) 
Net unrealized appreciation         
(depreciation) on investments    8,052,199    16,665,140 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    10,269,467    17,384,010 



Dividends to Shareholders from ($):         
Investment income—net    (2,772,459)    (2,598,401) 



Capital Stock Transactions ($):         
Net proceeds from shares sold    48,498,175    49,003,241 
Dividends reinvested    2,386,289    2,173,964 
Cost of shares redeemed    (19,649,065)    (40,527,316) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    31,235,399    10,649,889 
Total Increase (Decrease) in Net Assets    38,732,407    25,435,498 



Net Assets ($):         
Beginning of Period    117,166,214    91,730,716 
End of Period    155,898,621    117,166,214 
Undistributed investment income—net    897,122    2,090,993 



Capital Share Transactions (Shares):         
Shares sold    3,579,324    4,094,263 
Shares issued for dividends reinvested    175,076    197,095 
Shares redeemed    (1,443,220)    (3,381,139) 
Net Increase (Decrease) in Shares Outstanding    2,311,180    910,219 

See notes to financial statements.

The Fund 43


FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund's financial statements.

Six Months Ended                     
April 30, 2005        Year Ended October 31,     



    (Unaudited)    2004    2003    2002    2001    2000 







Per Share Data ($):                         
Net asset value,                         
beginning of period    12.57    10.91    8.89    10.60    14.18    14.95 
Investment Operations:                         
Investment income—net a    .15    .25    .18    .15    .15    .19 
Net realized and unrealized                         
gain (loss) on investments    .96    1.72    2.04    (1.73)    (3.74)    (.78) 
Total from                         
Investment Operations    1.11    1.97    2.22    (1.58)    (3.59)    (.59) 
Distributions:                         
Dividends from investment                         
income—net    (.27)    (.31)    (.20)    (.13)        (.18) 
Redemption fee reimbursement        .00b    .00b    .00b    .01    .00b 

Net asset value, end of period    13.41    12.57    10.91    8.89    10.60    14.18 







Total Return (%)    8.80c    18.40    25.49    (15.12)    (25.25)    (4.09) 







Ratios/Supplemental Data (%):                     
Ratio total expenses to                         
average net assets    .30c    .60    .60    .60    .60    .60 
Ratio of net investment income                     
to average net assets    1.10c    2.07    1.98    1.44    1.26    1.21 
Portfolio Turnover Rate    2.32c    14.80    11.37    24.12    30.02    15.32 







Net Assets, end of period                         
($ x 1,000)    155,899    117,116    91,731    82,091    72,344    51,619 
 
a    Based on average shares outstanding at each month end.                 
b    Amount represents less than $.01 per share.                     
c    Not annualized.                         
See notes to financial statements.                         

44

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus International Stock Index Fund (the “fund”) is a separate non-diversified series of Dreyfus Index Funds, Inc. (the “Company”) which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering three series including the fund. The fund’s investment objective is to provide investment results that correspond to the net dividend and total return performance of equity securities of international issuers in the aggregate, as represented by the Morgan Stanley Capital International Europe,Australia, Far East (Free) Index. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

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

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used

The Fund 45


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

for valuation purposes. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the fund’s Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the funds Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate. Financial futures are valued at the last sales price.

(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities

46

other than investments in securities, resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) 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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the fund may lend securities to qualified institu-tions.At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The fund will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transac-tion.Although each security loaned is fully collateralized, the fund would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with incomes tax regulations, which may differ from U.S. generally accepted accounting principles.

The Fund 47


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(f) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

The fund has an unused capital loss carryover of $14,062,054 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2004. If not applied, $58,106 of the carryover expires in fiscal 2005, $167,514 expires in fiscal 2006, $2,874,348 expires in fiscal 2009, $5,891,135 expires in fiscal 2010, $4,292,311 expires in fiscal 2011 and $778,640 expires in fiscal 2012.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2004, was as follows: ordinary income $2,598,401. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line Of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “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 based on prevailing market rates in effect at the time of borrowings. During the period ended April 30, 2005, the fund did not borrow under the Facility.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Management Agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .35 of 1% of the value of the fund’s average daily net assets, and is payable monthly. Under the terms of the Agreement, the Manager has

48

agreed to pay all the expenses of the fund, except management fees, brokerage commissions, taxes, commitment fees, interest, Shareholder Services Plan fees, fees and expenses of non-interested Board Members (including counsel fees) and extraordinary expenses. In addition, the Manager is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Board Members (including counsel fees). Each Board member also serves as a Board Member of other funds within the Dreyfus complex (collectively, the “Fund Group”). Each Board member receives an annual fee of $25,000, an attendance fee of $4,000 for each in-person meeting and $500 for telephone meetings. The chairman of the Board receives an additional 25% of such compensation (with the exception of reimbursable amounts). Subject to the Company’s Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the Company’s annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. Amounts required to be paid by the Company directly to the non-interested Board members, that were applied to offset a portion of the management fee payable to the Manager were in fact paid directly by the Manager to the non-interested Board members. All Board fees are allocated among the funds in the Fund Group in proportion to each fund’s relative net assets.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services, a fee at the annual rate of .25 of 1% of the value of the fund’s average daily net assets.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2005, the fund was charged $178,100 pursuant to the Shareholder Services Plan.

The Fund 49


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $44,785 and shareholder services plan fees $31,989.

(c) A 1% redemption fee is charged and retained by the fund on certain shares redeemed within six months following the date of issuance, including redemptions made through the use of the fund’s exchange privilege.

(d) Pursuant to an exemptive order from the Securities and Exchange Commission, the fund invests it’s available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, forward currency exchange contracts and financial futures, during the period ended April 30, 2005, amounted to $34,466,096 and $3,223,273, respectively.

The fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings and to settle foreign currency transactions. When executing forward currency exchange contracts, the fund is obligated to buy or sell a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward currency exchange contracts, the fund would incur a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract decreases between those dates.With respect to purchases of forward currency exchange contracts, the fund would incur a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract increases between those dates. The fund is also exposed to credit risk associated with counter party nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract.

50

The following summarizes open forward currency exchange contracts at April 30, 2005:

    Foreign            Unrealized 
Forward Currency    Currency            Appreciation 
Exchange Contracts    Amounts    Cost ($)    Value ($)    (Depreciation) ($) 





Purchases:                 
Australian Dollar,                 
expiring 5/2/2005    241,712    187,675    188,729    1,054 
British Pound,                 
expiring 5/3/2005    480,593    916,737    917,885    1,148 
British Pound,                 
expiring 6/16/2005    313,930    598,147    598,322    175 
Danish Krone,                 
expiring 5/2/2005    58,676    10,215    10,173    (42) 
Euro,                 
expiring 5/2/2005    612,621    794,263    790,863    (3,400) 
Euro,                 
expiring 5/4/2005    5,938    7,699    7,666    (33) 
Euro,                 
expiring 6/16/2005    457,510    595,263    591,355    (3,908) 
Japanese Yen,                 
expiring 5/6/2005    59,579,968    562,309    567,888    5,579 
Japanese Yen,                 
expiring 6/16/2005    59,660,000    560,856    570,827    9,971 
New Zealand Dollar,                 
expiring 5/2/2005    21,098    15,245    15,446    201 
Norwegian Krone,                 
expiring 5/2/2005    114,715    18,314    18,227    (87) 
Singapore Dollar,                 
expiring 5/3/2005    57,770    35,090    35,344    254 
Swedish Krona,                 
expiring 5/2/2005    569,319    80,731    79,907    (824) 
Swiss Franc,                 
expiring 5/2/2005    256,695    215,997    215,629    (368) 
Total                9,720 

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

The Fund 51


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 broker, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open as of April 30, 2005, are set forth in the Statement of Financial Futures.

At April 30, 2005, accumulated net unrealized appreciation on investments was $29,643,723, consisting of $33,777,027 gross unrealized appreciation and $4,133,304 gross unrealized depreciation.

At April 30, 2005, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see Statement of Investments).

NOTE 5—Legal Matters:

In early 2004, two purported class and derivative actions were filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC, and certain directors of the Dreyfus Funds and the Dreyfus Founders Funds (together, the “Funds”) in the United States District Court for the Western District of Pennsylvania. In September 2004, plaintiffs served a Consolidated Amended Complaint (the “Amended Complaint”) on behalf of a purported class of all persons who acquired interests in any of the Funds between January 30, 1999 and November 17, 2003, and derivatively on behalf of the Funds.The Amended Complaint in the newly styled In re Dreyfus Mutual Funds Fee Litigation also named the Distributor, Premier Mutual Fund Services, Inc. and two additional Fund directors as defendants and alleges violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Pennsylvania Unfair Trade Practices and Consumer Protection Law and common-law claims. Plaintiffs seek to recover allegedly improper and excessive Rule 12b-1 and advisory fees allegedly charged to the Funds for marketing and

52

distribution services. More specifically, plaintiffs claim, among other things, that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend the Funds over other funds, and that such payments were not disclosed to investors. In addition, plaintiffs assert that economies of scale and soft-dollar benefits were not passed on to the Funds. Plaintiffs further allege that 12b-1 fees were improperly charged to certain of the Funds that were closed to new investors.The Amended Complaint seeks compensatory and punitive damages, rescission of the advisory contracts, and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. As noted, some of the claims in this litigation are asserted derivatively on behalf of the Funds that have been named as nominal defendants.With respect to such derivative claims, no relief is sought against the Funds. Dreyfus believes the allegations to be totally without merit and intends to defend the action vigorously. Defendants filed motions to dismiss the Amended Complaint on November 12, 2004, and those motions are pending.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Funds believe that any of the pending actions will have a material adverse effect on the Funds or Dreyfus’ ability to perform its contract with the Funds.

The Fund 53


INFORMATION ABOUT THE REVIEW 
AND APPROVAL OF THE FUND’S 
INVESTMENT MANAGEMENT AGREEMENT (Unaudited) 

At a meeting of the Board of Directors held on March 14, 2005, the Board considered the re-approval for another one-year term of the fund’s Management Agreement (the “Management Agreement”), pursuant to which the Manager provides the fund with investment advisory and administrative services.The Board members who are not “interested persons” (as defined in the Act (the “Independent Directors”)) of the fund were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent and Quality of Services Provided to the Fund. The Board members received a presentation from representatives of the Manager regarding services provided to the fund and other funds in the Dreyfus complex, and discussed the nature, extent and quality of the services provided to the fund pursuant to its Management Agreement.The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships the Manager has with various intermediaries and the different needs of each.The Manager’s representatives noted the diversity of distribution of the fund as well as the distribution of other funds in the Dreyfus complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each of the fund’s distribution channels.The Board also reviewed the number of shareholder accounts in the fund, as well as the fund’s asset size.

The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure.

Comparative Analysis of the Fund’s Performance, Management Fee and Expense Ratio. The Board members reviewed the fund’s performance, management fee and expense ratio and placed significant emphasis on comparisons to a group of comparable funds and Lipper averages, and discussed the results of the comparisons.The Board members noted that the fund’s performance as measured by total return was consistent with

54

the total return of the EAFE Index, and that the slight variations were due primarily to fees.The Board members also noted that the fund’s performance measured by total return was above the comparison group and Lipper category averages for the one-year period ended January 31,2005.

The Board members reviewed the range of management fees, advisory fee and expense ratios, noting that the fund’s management fee was lower than a majority of the funds in the comparison group, and that the fund’s expense ratio was lower than that of the fund’s comparison group and Lipper category averages.The Board members also considered the fund’s primary distribution channel,and the fees charged,and services provided, by financial intermediaries offering the fund in that channel.The Board members noted that, as a “unitary fee” fund, the Manager has voluntarily agreed to pay all of the fund’s expenses, except management fees, brokerage commissions, taxes, interest, fees and expenses of non interested Board members, fees and expenses of independent counsel to the fund and to the non-interested Board members, Shareholder Services Plan fees, and extraordinary expenses.The Board also noted that the Manager voluntarily agreed to reduce its management fee in an amount equal to the fund’s allocable portion of the accrued fees and expenses of non-interested Board members and fees and expenses of independent counsel to the fund and to the non-interested Board members.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates (the “Similar Funds”) and by separate accounts, or mutual funds for which the Manager or its affiliates serve as sub-investment adviser, with similar investment objectives, policies and strategies as the Fund (“Separate Accounts” and, collectively with the Similar Funds, the “Similar Accounts”) and explained the nature of each Similar Account and the differences, from the Manager’s perspective, in managing and providing other services to the Similar Accounts as compared to management of the fund.The Manager’s representatives also reviewed the costs associated with distribution of the fund and Similar Accounts through inter-mediaries.The Board analyzed differences in fees paid to the Manager and

The Fund 55


I N FO R M AT I O N A B O U T T H E R E V I E W A N D A P P R OVA L O F T H E F U N D ’ S 
I N V E S T M E N T M A N A G E M E N T A G R E E M E N T ( U n a u d i t e d ) ( c o n t i n u e d ) 

discussed the relationship of the fees paid in light of the Manager’s performance and the services provided.Noting the fund’s “unitary fee”struc-ture, the Board members concluded that the Similar Funds had advisory fees and expense ratios that were higher than the fund’s management fee and expense ratio and the Separate Accounts had advisory fees that were lower than the fund’s management fee. A representative of the Manager stated that certain Similar Accounts had lower advisory fees as a result of historical pricing arrangements and other Similar Accounts were mutual funds that were sub-advised but not administered by an affiliate of the Manager.The Board members considered the relevance of the fee information provided for the Separate Accounts to evaluate the appropriateness and reasonableness of the fund’s management fee. The Board acknowledged that differences in fees paid by the Separate Accounts seemed to be consistent with the management and other services provided.

Analysis of Profitability and Economies of Scale. The Manager’s representatives reviewed the dollar amount of expenses allocated to, and profit received by, the Manager and the method used to determine such expenses and profit.The Board members evaluated the analysis in light of the relevant circumstances for the fund, the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund investors. The Board members also considered potential benefits to the Manager from acting as investment adviser and noted that the Manager had no soft dollar arrangement with respect to the fund.

It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Manager, including the nature, extent and quality of such services and that a discussion of economies of scale is predicated on increasing assets and that, if a fund’s assets had been decreasing, the possibility that the Manager may have realized any economies of scale would be less. It also was noted that the profitability percentage for managing the fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and given the fund’s overall performance and generally superior service levels provided.

56

At the conclusion of these discussions, each of the Independent Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on their discussions and considerations as described above, the Board made the following conclusions and determinations.

  • The Board concluded that the nature, extent and quality of the services provided by the Manager are adequate and appropriate.
  • The Board was satisfied with the fund’s overall performance.
  • The Board concluded that the fee paid to the Manager was reasonable in light of comparative performance and expense and advisory fee information, costs of the services provided and profits realized, or to be realized, and benefits derived or to be derived by the Manager from its relationship with the fund.
  • The Board recognized that economies of scale may be realized as the fund’s assets increase and determined that, to the extent that material economies of scale had not been shared with the fund, the Board would seek to do so.

The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.

The Fund 57


For More    Information 


 
Dreyfus International    Transfer Agent & 
Stock Index Fund    Dividend Disbursing Agent 
200 Park Avenue    Dreyfus Transfer, Inc. 
New York, NY 10166    200 Park Avenue 
Manager    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue    Dreyfus Service Corporation 
New York, NY 10166    200 Park Avenue 
Custodian    New York, NY 10166 
Boston Safe Deposit and     
Trust Company     
One Boston Place     
Boston, MA 02109     


 
 
Telephone 1-800-645-6561     

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

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

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.



Item 2.    Code of Ethics. 
    Not applicable. 
Item 3.    Audit Committee Financial Expert. 
    Not applicable. 
Item 4.    Principal Accountant Fees and Services. 
    Not applicable. 
Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. 
Item 9.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 10.    Submission of Matters to a Vote of Security Holders. 
The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and 
nominating persons for election or appointment by the Registrant's Board as Board members. The 
Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the 
Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the 
Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, 
New York    10166. A nomination submission must include information regarding the recommended nominee 
as specified in the Charter. This information includes all information relating to a recommended nominee 
that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well 
as information sufficient to evaluate the factors to be considered by the Committee, including character and 
integrity, business and professional experience, and whether the person has the ability to apply sound and 
independent business judgment and would act in the interests of the Registrant and its shareholders. 


Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)(1)    Not applicable. 
(a)(2)    Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) 
under the Investment Company Act of 1940. 
(a)(3)    Not applicable. 
(b)    Certification of principal executive and principal financial officers as required by Rule 30a-2(b) 
under the Investment Company Act of 1940. 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Index Funds, Inc.

By:    /s/ Stephen E. Canter 

    Stephen E. Canter 
    President 
Date:    June 29, 2005 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:    /s/ Stephen E. Canter 

    Stephen E. Canter 
    Chief Executive Officer 
Date:    June 29, 2005 
 
By:    /s/ James Windels 

James Windels
    Chief Financial Officer 
Date:    June 29, 2005 

EXHIBIT INDEX

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)


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[EX-99.CERT]
Exhibit (a)(2)

SECTION 302 CERTIFICATION

I, Stephen E. Canter, certify that:

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

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

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

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

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

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

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

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

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

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

By:    /s/ Stephen E. Canter 

    Stephen E. Canter 
    Chief Executive Officer 
Date:    June 29, 2005 


SECTION 302 CERTIFICATION

I, James Windels, certify that:

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

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

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

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

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

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

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

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

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

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

By:    /s/ James Windels 

James Windels
    Chief Financial Officer 
Date:    June 29, 2005 


EX-99.906 18 sec906.htm CERTIFICATION SECTION 906 sec906

[EX-99.906CERT]
Exhibit (b)

SECTION 906 CERTIFICATIONS

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

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

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

By:    /s/ Stephen E. Canter 

    Stephen E. Canter 
    Chief Executive Officer 
Date:    June 29, 2005 
 
By:    /s/ James Windels 

James Windels
    Chief Financial Officer 
Date:    June 29, 2005 

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

-1-


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