0000857114-11-000010.txt : 20110630 0000857114-11-000010.hdr.sgml : 20110630 20110630172352 ACCESSION NUMBER: 0000857114-11-000010 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 19 CONFORMED PERIOD OF REPORT: 20110430 FILED AS OF DATE: 20110630 DATE AS OF CHANGE: 20110630 EFFECTIVENESS DATE: 20110630 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05883 FILM NUMBER: 11943254 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 0000857114 S000000130 Dreyfus International Stock Index Fund C000000294 Dreyfus International Stock Index Fund DIISX 0000857114 S000000131 Dreyfus S&P 500 Index Fund C000000295 Dreyfus S&P 500 Index Fund PEOPX 0000857114 S000000132 Dreyfus Smallcap Stock Index Fund C000000296 Dreyfus Smallcap Stock Index Fund DISSX N-CSRS 1 semiform-078.htm SEMI-ANNUAL REPORT semiform-078.htm - Generated by SEC Publisher for SEC Filing

 

 

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number

811-5883

 

 

 

Dreyfus Index Funds, Inc.

 

 

 

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York  10166

 

 

 

 

 

 

 

 

Michael A. Rosenberg, Esq.

200 Park Avenue

New York, New York  10166

 

 

 

 

 

Registrant's telephone number, including area code: 

(212) 922-6000

 

 

Date of fiscal year end:

 

10/31

 

Date of reporting period:

04/30/11

 

             

 

 

 

 


 
 

 

FORM N-CSR

Item 1.      Reports to Stockholders.

 

 

 


 

Dreyfus International Stock Index Fund

SEMIANNUAL REPORT April 30, 2011



 

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     

A Letter from the Chairman and CEO

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

37     

Statement of Financial Futures

38     

Statement of Assets and Liabilities

39     

Statement of Operations

40     

Statement of Changes in Net Assets

41     

Financial Highlights

42     

Notes to Financial Statements

57     

Information About the Renewal of the Fund’s Management Agreement

 

FOR MORE INFORMATION

 

Back Cover


 

Dreyfus International
Stock Index Fund

The Fund


A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus International Stock Index Fund, covering the six-month period from November 1, 2010, through April 30, 2011.

Multiple crosscurrents have influenced the global economy. A modest slowdown earlier in 2010 gave way to renewed strength during the reporting period. The recovery has been fueled by three important characteristics. First, macroeconomic policy has been stimulative in most of the developed world. Second, in response to inflation worries emerging countries have shifted policy from aggressively stimulative to neutral, but not restrictive, supporting ongoing demand for commodities. Third, corporate balance sheets have strengthened due to cheap bond financing, rising profits and relatively slow growth in corporate spending. Although shocks emanating from events in the Middle East and Japan presented potential headwinds, global equities generally rallied as investors increasingly recognized that otherwise positive forces would prevent a return to global recession.

We expect the global economy to continue to expand at a moderate rate, which generally should be good for stocks in most markets. However, in the wake of recent gains we believe that selectivity will become more important.We favor companies with higher growth potential, and we are also optimistic about the prospects of high-quality companies capable of generating dividend increases and share buybacks. As always, your financial advisor can help you align your investment portfolio with the opportunities and challenges that the future may have in store.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.


Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
May 16, 2011

2


 


DISCUSSION OF FUND PERFORMANCE

For the period of November 1, 2010, through April 30, 2011, as provided by Thomas J. Durante, CFA, Karen Q. Wong and Richard A. Brown, Portfolio Managers

Fund and Market Performance Overview

For the six-month period ended April 30, 2011, Dreyfus International Stock Index Fund produced a total return of 12.46%.1 This compares with a 12.71% total return for the fund’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (the “MSCI EAFE Index” or the “Index”), during the same period.2

International stocks generally rallied during the reporting period as a global economic recovery gained traction, commodity prices moved higher and corporate earnings grew. Contrary to the trend over the past several years, developed markets generally produced higher returns than emerging markets.The difference in returns between the fund and the MSCI EAFE Index was primarily the result of transaction costs and operating expenses that are not reflected in the MSCI EAFE Index’s results.

The Fund’s Investment Approach

The fund seeks to match the performance of the MSCI EAFE Index, a broadly diversified, international index composed of approximately 1,000 companies located in developed markets outside the United States and Canada.The fund attempts to match the Index’s return before fees and expenses by aligning the portfolio composition with the composition of the MSCI EAFE Index.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 Index.

Stocks Rallied as the Global Economy Gained Momentum

Investor sentiment improved dramatically in the weeks before the start of the reporting period, when a new round of quantitative easing of U.S. monetary policy from the Federal Reserve Board helped con-

The Fund  3 

 


 

DISCUSSION OF FUND PERFORMANCE (continued)

vince investors that the global economy was unlikely to slip back into recession. A more optimistic investment outlook was reinforced by encouraging economic data in Europe as well as strong corporate earnings across a number of geographic regions and industry groups.

While robust ongoing demand for industrial commodities and equipment from the emerging markets helped drive some market sectors higher, equity markets in Asia and Latin America were derailed by intensifying inflationary pressures.To forestall a potential acceleration of inflation, several central banks—including those in China, India and Europe—tightened their monetary policies. Concerned that these measures might dampen economic growth, investors turned their attention to more developed markets.

The global market rally was interrupted in February when a wave of political unrest in the Middle East led to sharply higher crude oil prices, and again in March when a devastating earthquake, tsunami and nuclear disaster in Japan threatened one of the world’s largest economies. However, investors proved resilient, and most equity markets, with the notable exception of Japan, bounced back by the reporting period’s end.

Financial Stocks Led the International Market’s Advance

The financials sector, which comprises approximately one-fourth of the MSCI Index, ranked as the reporting period’s top performing sector on the strength of attractive financial results from financial institutions in Germany,Australia and Switzerland.Australian banks were supported by the need among local companies to finance exports to nearby Asian emerging markets, a German insurance conglomerate gained value as the capital markets rallied, and Swiss banks benefited from a strong local currency. These gains were partly offset by weakness among banks in some of Europe’s smaller nations, particularly those at the epicenter of the region’s sovereign debt crisis. In addition, real estate companies in Hong Kong and Singapore fared poorly as interest rates climbed.

Not surprisingly, metals-and-mining companies and other members of the materials sector gained value along with commodity prices during

4


 

the reporting period. Energy companies fared well when oil and gas prices soared, especially integrated energy producers with refinery operations. In the industrials sector, manufacturers in Germany, Australia, France and Scandinavia participated in the global industrial rebound amid robust demand for the equipment and materials used in infrastructure construction.

Disappointments during the reporting period included the utilities sector, which eked out a modestly positive total return due to industry-wide concerns in the aftermath of the catastrophic failure of Japan’s Fukushima nuclear power plant.The telecommunications sector also lagged market averages when a number of Japanese companies suffered from supply-chain disruptions after the earthquake.

Index Funds Offer Diversification Benefits

An as index fund, we attempt to replicate the returns of the MSCI EAFE Index by closely approximating its composition. In our view, one of the greatest benefits of an index fund is that it offers a broadly diversified investment vehicle that can help investors manage risks by limiting the impact on the overall portfolio of unexpected losses in any single country, industry group or holding.

May 16, 2011

  Equity funds are subject generally to market, market sector, market liquidity, issuer and investment 
  style risks, among other factors, to varying degrees, all of which are more fully described in the 
  fund’s prospectus. 
  The fund’s performance will be influenced by political, social and economic factors affecting 
  investments in foreign companies. Special risks associated with investments in foreign companies 
  include exposure to currency fluctuations, less liquidity, less developed or less efficient trading 
  markets, lack of comprehensive company information, political instability and differing auditing 
  and legal standards. 
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. 
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) 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. Investors cannot invest directly in any index. 

 

The Fund  5 

 


 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) 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, 2010 to April 30, 2011. 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, 2011 
 
Expenses paid per $1,000  $ 3.16 
Ending value (after expenses)  $ 1,124.60 

 

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, 2011 
 
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, 2011 (Unaudited) 

 

Common Stocks—96.8%  Shares    Value ($) 
Australia—8.5%       
AGL Energy  22,974    365,561 
Alumina  132,098    326,710 
Amcor  65,080    498,545 
AMP  148,682    891,656 
Asciano  147,855    266,980 
ASX  8,615    302,635 
Australia & New Zealand Banking Group  132,793    3,521,170 
Bendigo and Adelaide Bank  20,512    209,659 
BHP Billiton  166,245    8,337,902 
Billabong International  8,993    66,430 
BlueScope Steel  91,697    173,604 
Boral  39,692    213,711 
Brambles  72,477    533,794 
Caltex Australia  6,352    98,640 
CFS Retail Property Trust  115,692    226,629 
Coca-Cola Amatil  28,058    366,623 
Cochlear  2,889    254,571 
Commonwealth Bank of Australia  79,693    4,684,181 
Computershare  24,153    255,861 
Crown  23,845    219,980 
CSL  28,323    1,064,693 
CSR  23,864    78,347 
Dexus Property Group  242,514    233,549 
Fairfax Media  105,013    151,696 
Fortescue Metals Group  63,911    430,139 
Foster’s Group  100,850    620,255 
Goodman Fielder  66,293    77,989 
Goodman Group  316,833    246,177 
GPT Group  93,796    324,362 
Harvey Norman Holdings  31,092    91,189 
Incitec Pivot  83,565    343,851 
Insurance Australia Group  110,789    432,836 
James Hardie Industries-CDI  22,829  a  147,400 
Leighton Holdings  7,148    189,929 
Lend Lease Group  27,459    261,434 
MacArthur Coal  9,965    126,501 

 

The Fund  7 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Australia (continued)     
Macquarie Group  17,714  681,591 
MAp Group  41,877  135,194 
Metcash  38,630  171,636 
Mirvac Group  165,941  230,630 
National Australia Bank  110,621  3,278,269 
Newcrest Mining  39,105  1,773,843 
OneSteel  73,726  171,854 
Orica  18,395  535,073 
Origin Energy  54,701  978,749 
OZ Minerals  164,157  258,690 
Paladin Energy  33,468 a 120,865 
Qantas Airways  55,702a 128,621 
QBE Insurance Group  53,896  1,103,542 
QR National  83,580  313,729 
Ramsay Health Care  6,148  121,711 
Rio Tinto  22,340  2,009,862 
Santos  42,846  708,958 
Sims Metal Management  8,218  157,025 
Sonic Healthcare  18,514  253,666 
SP Ausnet  62,635  59,977 
Stockland  120,967  500,400 
Suncorp Group  67,772  617,066 
TABCORP Holdings  33,277  277,861 
Tatts Group  70,864  179,917 
Telstra  224,517  714,991 
Toll Holdings  33,878  208,730 
Transurban Group  64,460  373,873 
Wesfarmers  51,496  1,876,619 
Wesfarmers-PPS  7,780  286,329 
Westfield Group  111,839  1,103,972 
Westfield Retail Trust  144,163  418,079 
Westpac Banking  153,715  4,178,556 
Woodside Petroleum  32,233  1,650,840 
Woolworths  63,701  1,848,053 
WorleyParsons  9,422  312,939 
    54,376,899 

 

8


 

Common Stocks (continued)  Shares  Value ($) 
Austria—.3%     
Erste Group Bank  9,607  486,308 
IMMOFINANZ  49,649a 236,445 
OMV  7,541  344,471 
Raiffeisen Bank International  2,344  129,450 
Telekom Austria  17,644  273,283 
Verbund  3,340  151,257 
Vienna Insurance Group  2,207  131,954 
Voestalpine  5,799  285,846 
    2,039,014 
Belgium—1.0%     
Ageas  111,877  340,093 
Anheuser-Busch InBev  37,403  2,388,878 
Anheuser-Busch InBev (STRIP)  12,680 a 56 
Bekaert  2,164  271,254 
Belgacom  7,731  304,576 
Cie Nationale a Portefeuille  1,371 a 99,341 
Colruyt  4,105  237,302 
Delhaize Group  5,397  468,086 
Dexia  31,667a 126,379 
Groupe Bruxelles Lambert  4,113  408,530 
Groupe Bruxelles Lambert (STRIP)  236a  4 
KBC Groep  8,356a  341,162 
Mobistar  1,360  101,066 
Solvay  3,065  442,853 
UCB  5,144  248,828 
Umicore  5,756  330,694 
    6,109,102 
China—.1%     
Foxconn International Holdings  132,000 a 77,831 
Sands China  130,213a  365,446 
Yangzijiang Shipbuilding Holdings  81,000  119,951 
    563,228 
Denmark—1.1%     
AP Moller—Maersk, Cl. A  30  295,306 
AP Moller—Maersk, Cl. B  68  689,923 
Carlsberg, Cl. B  5,582  664,068 

 

The Fund  9 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Denmark (continued)     
Coloplast, Cl. B  1,189  175,039 
Danske Bank  31,217a  751,446 
DSV  10,631  278,324 
Novo Nordisk, Cl. B  21,700  2,747,764 
Novozymes, Cl. B  2,468  427,155 
Pandora  2,876  129,764 
Tryg  1,536  98,241 
Vestas Wind Systems  10,261a  364,988 
William Demant Holding  1,278a  119,343 
    6,741,361 
Finland—1.1%     
Elisa  6,364  153,426 
Fortum  22,743  784,823 
Kesko, Cl. B  3,623  188,396 
Kone, Cl. B  8,003  502,117 
Metso  6,835  419,810 
Neste Oil  6,406  121,460 
Nokia  193,896  1,789,260 
Nokian Renkaat  5,429  281,905 
Orion, Cl. B  4,426  110,184 
Outokumpu  7,143  119,114 
Pohjola Bank  7,347  109,217 
Rautaruukki  4,060  105,469 
Sampo, Cl. A  21,632  729,154 
Sanoma  4,669  97,184 
Stora Enso, Cl. R  29,938  361,322 
UPM-Kymmene  27,030  555,004 
Wartsila  8,360  329,170 
    6,757,015 
France—9.6%     
Accor  7,894  351,344 
Aeroports de Paris  1,537  147,534 
Air France  7,338a  129,714 
Air Liquide  14,501  2,148,774 
Alcatel-Lucent  118,275a  763,829 
Alstom  10,751  716,079 

 

10


 

Common Stocks (continued)  Shares  Value ($) 
France (continued)     
Atos Origin  2,389a 147,461 
AXA  88,033  1,978,666 
BioMerieux  590  64,292 
BNP Paribas  49,301  3,908,006 
Bouygues  11,866  591,768 
Bureau Veritas  2,465  213,023 
Cap Gemini  7,608  461,814 
Carrefour  30,647  1,455,419 
Casino Guichard Perrachon  3,007  317,055 
Christian Dior  3,253  522,910 
Cie de St-Gobain  20,522  1,419,862 
Cie Generale d’Optique Essilor International  10,612  889,844 
Cie Generale de Geophysique-Veritas  7,003 a 248,050 
Cie Generale des Etablissements Michelin, Cl. B  9,025  906,062 
CNP Assurances  8,148  187,308 
Credit Agricole  49,205  820,521 
Danone  29,882  2,192,473 
Dassault Systemes  3,123  254,458 
Edenred  7,894  245,238 
EDF  13,562  571,924 
Eiffage  2,009  139,146 
Eramet  238  93,853 
Eurazeo  1,682  140,341 
Eutelsat Communications  5,239  226,375 
Fonciere des Regions  1,253  142,395 
France Telecom  96,005  2,255,413 
GDF Suez  64,131  2,628,359 
Gecina  1,000  144,428 
Groupe Eurotunnel  26,075  283,752 
Icade  1,094  140,572 
Iliad  735  94,639 
Imerys  1,905  147,841 
JC Decaux  3,387 a 118,538 
Klepierre  4,591  188,942 
L’Oreal  12,259  1,557,019 
Lafarge  10,508  744,792 

 

The Fund  11 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
France (continued)     
Lagardere  6,046  265,910 
Legrand  8,042  367,834 
LVMH Moet Hennessy Louis Vuitton  12,678  2,280,588 
Metropole Television  3,249  86,402 
Natixis  46,403a  267,249 
Neopost  1,569  149,954 
PagesJaunes Groupe  6,051  63,190 
Pernod-Ricard  10,093  1,016,128 
Peugeot  7,792a  354,434 
PPR  3,880  695,077 
Publicis Groupe  6,643  377,071 
Renault  10,002a  610,472 
Safran  8,590  333,894 
Sanofi-Aventis  53,933  4,272,776 
Schneider Electric  12,583  2,227,096 
SCOR  8,435  258,103 
Societe BIC  1,432  139,452 
Societe Generale  32,855  2,201,252 
Societe Television Francaise 1  6,190  116,354 
Sodexo  4,880  380,893 
Suez Environnement  13,276  306,472 
Technip  5,002  565,178 
Thales  4,382  193,895 
Total  108,866  6,980,578 
Unibail-Rodamco  4,801 a 1,125,034 
Vallourec  5,660  706,954 
Veolia Environnement  17,750  593,958 
Vinci  22,697  1,518,656 
Vivendi  63,988  2,011,136 
    61,165,823 
Germany—8.2%     
Adidas  10,707  798,371 
Allianz  23,548  3,713,656 
Axel Springer  695  114,039 
BASF  47,238  4,863,683 
Bayer  42,505  3,742,614 

 

12


 

Common Stocks (continued)  Shares  Value ($) 
Germany (continued)     
Bayerische Motoren Werke  16,924  1,598,646 
Beiersdorf  5,218  340,388 
Brenntag  1,624a  199,976 
Celesio  3,952  95,980 
Commerzbank  42,511a  271,197 
Continental  2,534a  254,776 
Daimler  46,394  3,592,224 
Deutsche Bank  48,302  3,160,225 
Deutsche Boerse  10,223  850,855 
Deutsche Lufthansa  11,634a  264,425 
Deutsche Post  44,384  879,726 
Deutsche Telekom  145,346  2,418,336 
E.ON  93,435  3,199,335 
Fraport Frankfurt Airport Services Worldwide  1,957  156,870 
Fresenius & Co.  5,710  600,277 
Fresenius Medical Care & Co.  9,802  771,607 
GEA Group  9,030  330,768 
Hannover Rueckversicherung  3,039  184,088 
HeidelbergCement  7,142  547,062 
Henkel & Co.  6,718  382,025 
Hochtief  2,305  218,620 
Infineon Technologies  56,400  641,282 
K+S  7,318  593,114 
Kabel Deutschland Holding  3,111a  194,749 
Lanxess  4,118  378,357 
Linde  8,636  1,557,975 
MAN  5,407  754,769 
Merck  3,332  353,547 
Metro  6,743  495,741 
Muenchener Rueckversicherungs  9,739  1,610,307 
Puma  268  89,461 
RWE  21,433  1,400,853 
Salzgitter  2,195  172,626 
SAP  44,482  2,870,701 
Siemens  42,365  6,173,358 
Suedzucker  3,046  94,109 

 

The Fund  13 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Germany (continued)     
ThyssenKrupp  17,127  789,345 
TUI  7,370a  94,120 
United Internet  5,818  114,195 
Volkswagen  1,464  261,505 
Wacker Chemie  762  189,132 
    52,379,015 
Greece—.2%     
Alpha Bank  25,409a  148,525 
Bank of Cyprus Public  46,122  168,328 
Coca-Cola Hellenic Bottling  9,393  260,034 
EFG Eurobank Ergasias  16,597 a 93,568 
Hellenic Telecommunications Organization  13,152  156,293 
National Bank of Greece  49,923 a 388,102 
OPAP  10,949  231,800 
Public Power  6,826  113,119 
    1,559,769 
Hong Kong—2.5%     
AIA Group  399,400  1,344,599 
ASM Pacific Technology  9,600  129,028 
Bank of East Asia  78,350  323,785 
BOC Hong Kong Holdings  189,500  595,268 
Cathay Pacific Airways  63,000  157,184 
Cheung Kong Holdings  71,000  1,116,973 
Cheung Kong Infrastructure Holdings  27,000  131,565 
CLP Holdings  100,788  829,130 
Esprit Holdings  59,759  248,496 
Hang Lung Group  41,000  276,057 
Hang Lung Properties  125,000  556,800 
Hang Seng Bank  39,100  611,095 
Henderson Land Development  53,762  367,868 
Hong Kong & China Gas  225,231  559,047 
Hong Kong Exchanges & Clearing  52,300  1,193,105 
HongKong Electric Holdings  71,000  496,788 
Hopewell Holdings  33,000  99,625 
Hutchison Whampoa  108,800  1,242,412 
Hysan Development  34,000  158,672 

 

14


 

Common Stocks (continued)  Shares  Value ($) 
Hong Kong (continued)     
Kerry Properties  36,000  191,874 
Li & Fung  144,600  739,047 
Lifestyle International Holdings  27,500  78,596 
Link REIT  112,500  354,115 
MTR  76,500  278,715 
New World Development  138,191  242,309 
NWS Holdings  60,000  88,367 
Orient Overseas International  11,300  86,267 
PCCW  167,000  66,219 
Shangri-La Asia  73,000  203,467 
Sino Land  130,664  229,784 
SJM Holdings  74,000  159,478 
Sun Hung Kai Properties  73,699  1,150,895 
Swire Pacific, Cl. A  40,000  610,742 
Wharf Holdings  78,311  572,643 
Wheelock & Co.  49,000  201,864 
Wing Hang Bank  10,500  117,063 
Wynn Macau  78,800  280,501 
Yue Yuen Industrial Holdings  39,800  137,575 
    16,227,018 
Ireland—.2%     
Anglo Irish Bank  35,225a,b 52 
CRH  36,280  888,646 
Elan  23,710a  188,895 
Governor & Co. of the Bank of Ireland  129,718 a 53,886 
Kerry Group, Cl. A  7,435  307,751 
Ryanair Holdings  4,000  20,741 
    1,459,971 
Israel—.7%     
Bank Hapoalim  50,958 a 266,831 
Bank Leumi Le-Israel  60,678  314,318 
Bezeq Israeli Telecommunication  88,933  263,359 
Cellcom Israel  2,512  80,333 
Delek Group  202  53,663 
Elbit Systems  1,178  66,632 
Israel  117  144,855 

 

The Fund  15 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Israel (continued)     
Israel Chemicals  22,812  402,217 
Israel Discount Bank, Cl. A  45,964 a 96,816 
Makhteshim-Agan Industries  12,148 a 65,372 
Mizrahi Tefahot Bank  6,222  68,713 
NICE Systems  3,141a 118,940 
Partner Communications  4,318  79,839 
Teva Pharmaceutical Industries  48,524  2,255,194 
    4,277,082 
Italy—2.8%     
A2A  55,689  100,713 
Assicurazioni Generali  59,670  1,432,349 
Atlantia  15,086  371,756 
Autogrill  6,976a 100,132 
Banca Carige  32,548  78,999 
Banca Monte dei Paschi di Siena  111,297 a 151,084 
Banco Popolare  80,055  237,775 
Enel  337,435  2,409,964 
Enel Green Power  78,085  231,924 
ENI  133,831  3,583,837 
EXOR  3,792  136,988 
Fiat  40,975  437,993 
Fiat Industrial  38,512 a 573,075 
Finmeccanica  19,919  269,511 
Intesa Sanpaolo  393,608  1,309,224 
Intesa Sanpaolo-RSP  47,999  137,864 
Luxottica Group  5,885  194,613 
Mediaset  37,823  252,288 
Mediobanca  23,810  271,644 
Parmalat  85,271  323,353 
Pirelli & C  11,503  119,887 
Prysmian  9,251  218,635 
Saipem  13,551  770,592 
Snam Rete Gas  72,977  454,726 
Telecom Italia  494,749  746,483 
Telecom Italia-RSP  319,041  412,741 

 

16


 

Common Stocks (continued)  Shares  Value ($) 
Italy (continued)     
Terna Rete Elettrica Nazionale  67,119  336,571 
UniCredit  691,164  1,782,154 
Unione di Banche Italiane  32,249  289,458 
    17,736,333 
Japan—18.8%     
77 Bank  17,000  78,149 
ABC-Mart  1,600  59,749 
Advantest  8,200  161,393 
Aeon  30,400  364,920 
Aeon Credit Service  3,960  53,490 
AEON Mall  3,900  92,669 
Air Water  7,000  84,114 
Aisin Seiki  9,900  347,610 
Ajinomoto  34,800  382,997 
Alfresa Holdings  1,900  66,666 
All Nippon Airways  41,000  119,756 
Amada  20,000  159,477 
Aozora Bank  21,959  47,360 
Asahi Breweries  20,100  374,800 
Asahi Glass  51,800  655,001 
Asahi Kasei  65,900  449,946 
Asics  9,000  129,554 
Astellas Pharma  22,879  871,286 
Bank of Kyoto  17,000  156,717 
Bank of Yokohama  63,000  310,574 
Benesse Holdings  3,700  153,673 
Bridgestone  34,000  741,681 
Brother Industries  12,900  196,505 
Canon  58,850  2,756,101 
Canon Marketing Japan  2,900  32,059 
Casio Computer  13,100  103,650 
Central Japan Railway  79  594,885 
Chiba Bank  39,000  229,270 
Chiyoda  8,000  79,073 
Chubu Electric Power  33,600  734,198 

 

The Fund  17 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Chugai Pharmaceutical  11,428  188,025 
Chugoku Bank  9,000  104,486 
Chugoku Electric Power  15,700  277,469 
Citizen Holdings  12,400  74,577 
Coca-Cola West  2,700  55,670 
Cosmo Oil  36,000  117,575 
Credit Saison  8,600  143,404 
Dai Nippon Printing  28,800  342,874 
Dai-ichi Life Insurance  420  689,475 
Daicel Chemical Industries  15,000  96,130 
Daido Steel  14,200  80,678 
Daihatsu Motor  9,000  144,306 
Daiichi Sankyo  35,483  693,130 
Daikin Industries  11,700  370,005 
Dainippon Sumitomo Pharma  9,000  85,852 
Daito Trust Construction  4,100  325,918 
Daiwa House Industry  25,400  304,587 
Daiwa Securities Group  87,000  373,133 
Dena  4,000  149,125 
Denki Kagaku Kogyo  27,600  141,163 
Denso  25,500  850,419 
Dentsu  8,200  217,077 
Dowa Holdings  11,350  73,858 
East Japan Railway  17,400  959,638 
Eisai  13,000  471,038 
Electric Power Development  5,980  156,686 
Elpida Memory  9,400a  139,251 
FamilyMart  3,000  108,109 
FANUC  9,900  1,641,053 
Fast Retailing  2,800  438,600 
Fuji Electric Holdings  29,000  90,067 
Fuji Heavy Industries  31,000  229,998 
Fuji Media Holdings  11  14,601 
FUJIFILM Holdings  23,600  730,047 
Fujitsu  97,800  555,654 
Fukuoka Financial Group  39,000  160,537 

 

18


 

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Furukawa Electric  35,000  138,033 
Gree  4,300  87,441 
GS Yuasa  21,000  142,864 
Gunma Bank  22,000  118,487 
Hachijuni Bank  21,000  124,747 
Hakuhodo DY Holdings  1,170  60,706 
Hamamatsu Photonics  3,200  125,216 
Hankyu Hanshin Holdings  56,000  247,079 
Hino Motors  12,000  56,347 
Hirose Electric  1,600  165,640 
Hiroshima Bank  24,000  104,412 
Hisamitsu Pharmaceutical  3,400  141,213 
Hitachi  230,900  1,246,416 
Hitachi Chemical  5,200  106,512 
Hitachi Construction Machinery  5,000  121,149 
Hitachi High-Technologies  3,900  81,278 
Hitachi Metals  8,000  104,708 
Hokkaido Electric Power  9,600  173,803 
Hokuhoku Financial Group  63,000  119,571 
Hokuriku Electric Power  9,300  187,971 
Honda Motor  83,820  3,295,364 
Hoya  22,800  486,966 
Ibiden  7,100  238,621 
Idemitsu Kosan  1,100  128,654 
IHI  73,000  183,535 
INPEX  109  827,508 
Isetan Mitsukoshi Holdings  20,020  192,453 
Isuzu Motors  61,000  260,118 
Ito En  3,300  58,199 
ITOCHU  76,500  791,022 
Itochu Techno-Solutions  1,400  49,002 
Iyo Bank  14,000  116,465 
J Front Retailing  26,800  115,272 
Japan Petroleum Exploration  1,400  68,154 
Japan Prime Realty Investment  36  101,957 
Japan Real Estate Investment  26  257,308 

 

The Fund  19 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Japan Retail Fund Investment  78  125,834 
Japan Steel Works  17,000  136,184 
Japan Tobacco  236  913,286 
JFE Holdings  24,260  659,571 
JGC  11,000  271,001 
Joyo Bank  31,462  126,019 
JS Group  12,924  309,641 
JSR  9,100  188,976 
JTEKT  10,800  139,492 
Jupiter Telecommunications  120  128,814 
JX Holdings  117,776  815,752 
Kajima  40,800  116,155 
Kamigumi  12,400  105,447 
Kaneka  16,000  116,539 
Kansai Electric Power  38,199  801,266 
Kansai Paint  11,000  98,422 
Kao  28,300  705,930 
Kawasaki Heavy Industries  76,000  311,905 
Kawasaki Kisen Kaisha  35,000  116,465 
KDDI  153  1,014,469 
Keikyu  24,000  166,231 
Keio  31,000  173,453 
Keisei Electric Railway  13,000  74,821 
Keyence  2,205  575,028 
Kikkoman  8,000  79,073 
Kinden  6,000  51,023 
Kintetsu  81,354  243,641 
Kirin Holdings  43,000  597,782 
Kobe Steel  127,000  311,474 
Koito Manufacturing  4,000  62,706 
Komatsu  48,500  1,697,560 
Konami  5,200  102,282 
Konica Minolta Holdings  25,000  219,066 
Kubota  61,000  578,876 
Kuraray  18,500  268,357 
Kurita Water Industries  5,700  165,788 

 

20


 

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Kyocera  8,500  931,292 
Kyowa Hakko Kirin  14,705  146,071 
Kyushu Electric Power  19,500  359,527 
Lawson  3,100  151,485 
Mabuchi Motor  1,500  73,854 
Makita  5,700  260,272 
Marubeni  87,000  628,321 
Marui Group  10,900  74,959 
Maruichi Steel Tube  2,000  49,667 
Matsui Securities  8,000  39,142 
Mazda Motor  78,000a  177,841 
McDonald’s Holdings Japan  3,000  76,682 
Medipal Holdings  7,700  63,676 
MEIJI Holdings  3,521  150,144 
Minebea  18,000  96,722 
Miraca Holdings  2,600  98,373 
Mitsubishi  69,600  1,869,095 
Mitsubishi Chemical Holdings  64,100  432,126 
Mitsubishi Electric  99,000  1,087,121 
Mitsubishi Estate  60,000  1,041,163 
Mitsubishi Gas Chemical  20,000  155,041 
Mitsubishi Heavy Industries  156,700  743,524 
Mitsubishi Logistics  6,000  66,182 
Mitsubishi Materials  61,000  209,749 
Mitsubishi Motors  203,000a  247,683 
Mitsubishi Tanabe Pharma  11,000  180,983 
Mitsubishi UFJ Financial Group  654,890  3,123,520 
Mitsubishi UFJ Lease & Finance  2,910  115,661 
Mitsui & Co.  88,900  1,568,952 
Mitsui Chemicals  49,000  179,357 
Mitsui Engineering & Shipbuilding  34,000  83,806 
Mitsui Fudosan  43,000  733,978 
Mitsui Mining & Smelting  34,000  120,680 
Mitsui OSK Lines  57,000  316,120 
Mitsumi Electric  4,800  61,228 
Mizuho Financial Group  1,059,000  1,670,594 

 

The Fund  21 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Mizuho Securities  34,000a  85,901 
Mizuho Trust & Banking  92,000  77,101 
MS&AD Insurance Group Holdings  28,457  662,500 
Murata Manufacturing  10,400  749,815 
Nabtesco  4,500  113,360 
Namco Bandai Holdings  10,350  113,781 
NEC  140,800a  293,261 
NGK Insulators  13,000  223,342 
NGK Spark Plug  8,000  110,919 
NHK Spring  7,000  65,997 
Nidec  5,600  485,876 
Nikon  16,200  337,616 
Nintendo  5,150  1,216,730 
Nippon Building Fund  27  271,198 
Nippon Electric Glass  18,085  272,590 
Nippon Express  44,000  174,070 
Nippon Meat Packers  9,000  124,008 
Nippon Paper Group  4,900  97,650 
Nippon Sheet Glass  51,000  149,593 
Nippon Steel  260,100  807,804 
Nippon Telegraph & Telephone  25,000  1,153,870 
Nippon Yusen  81,800  300,424 
Nishi-Nippon City Bank  33,000  92,729 
Nissan Chemical Industries  7,000  72,467 
Nissan Motor  127,100  1,212,416 
Nisshin Seifun Group  9,800  121,866 
Nisshin Steel  42,000  82,820 
Nisshinbo Holdings  7,000  68,930 
Nissin Foods Holdings  3,200  113,108 
Nitori Holdings  1,950  167,987 
Nitto Denko  8,600  456,285 
NKSJ Holdings  72,500  462,842 
NOK  5,300  90,467 
Nomura Holdings  180,300  915,499 
Nomura Real Estate Holdings  5,400  82,524 
Nomura Real Estate Office Fund  12  86,369 

 

22


 

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Nomura Research Institute  5,700  122,093 
NSK  23,000  202,958 
NTN  25,000  119,238 
NTT Data  65  213,249 
NTT DoCoMo  791  1,455,463 
NTT Urban Development  55  45,280 
Obayashi  35,000  147,091 
Obic  350  64,919 
Odakyu Electric Railway  32,000  257,925 
OJI Paper  44,000  196,845 
Olympus  11,000  309,367 
Omron  10,500  286,893 
Ono Pharmaceutical  4,200  213,002 
ORACLE JAPAN  2,000  86,394 
Oriental Land  2,700  228,272 
ORIX  5,460  532,273 
Osaka Gas  101,000  370,939 
OTSUKA  1,000  62,485 
Otsuka Holdings  13,200  353,345 
Panasonic  113,795  1,399,648 
Rakuten  372  342,016 
Resona Holdings  94,900  446,781 
Ricoh  36,000  394,873 
Rinnai  1,800  118,240 
Rohm  5,100  306,729 
Sankyo  2,800  144,590 
Santen Pharmaceutical  3,800  146,352 
Sapporo Hokuyo Holdings  15,000  66,182 
Sapporo Holdings  13,000  51,910 
SBI Holdings  1,112  118,957 
Secom  11,000  544,306 
Sega Sammy Holdings  9,984  172,265 
Seiko Epson  6,700  116,511 
Sekisui Chemical  22,000  182,746 
Sekisui House  31,000  296,857 
Senshu Ikeda Holdings  41,600  61,523 

 

The Fund  23 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Seven & I Holdings  38,360  956,400 
Seven Bank  26  49,026 
Sharp  51,000  465,751 
Shikoku Electric Power  9,200  232,891 
Shimadzu  12,000  103,377 
Shimamura  1,200  111,955 
Shimano  3,500  186,776 
Shimizu  29,000  122,233 
Shin-Etsu Chemical  21,000  1,087,010 
Shinko Electric Industries  4,200  42,756 
Shinsei Bank  50,000  59,773 
Shionogi & Co.  15,400  249,012 
Shiseido  18,000  297,486 
Shizuoka Bank  31,400  284,821 
Showa Denko  72,000  142,864 
Showa Shell Sekiyu  11,300  122,554 
SMC  2,700  490,818 
Softbank  41,500  1,733,855 
Sojitz  66,600  126,404 
Sony  51,480  1,433,877 
Sony Financial Holdings  8,600  158,878 
Square Enix Holdings  3,700  61,195 
Stanley Electric  8,200  137,138 
Sumco  6,800a  129,731 
Sumitomo  57,200  780,385 
Sumitomo Chemical  82,000  434,558 
Sumitomo Electric Industries  38,500  531,902 
Sumitomo Heavy Industries  29,000  188,711 
Sumitomo Metal Industries  173,000  362,460 
Sumitomo Metal Mining  27,000  478,174 
Sumitomo Mitsui Financial Group  69,600  2,140,153 
Sumitomo Mitsui Trust Holdings  162,640  553,225 
Sumitomo Realty & Development  19,000  388,945 
Sumitomo Rubber Industries  9,400  104,843 
Suruga Bank  12,000  99,827 

 

24


 

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Suzuken  3,720  92,381 
Suzuki Motor  17,100  404,212 
Sysmex  3,200  111,412 
T&D Holdings  14,650  359,479 
Taisei  58,000  135,100 
Taisho Pharmaceutical  6,000  140,794 
Taiyo Nippon Sanso  15,000  120,532 
Takashimaya  15,000  102,231 
Takeda Pharmaceutical  38,500  1,859,995 
TDK  6,600  338,378 
Teijin  47,000  223,589 
Terumo  8,500  471,407 
THK  6,700  169,853 
Tobu Railway  45,000  174,698 
Toho  5,800  87,064 
Toho Gas  22,000  102,490 
Tohoku Electric Power  22,300  327,327 
Tokio Marine Holdings  36,900  1,022,777 
Tokuyama  18,000  92,950 
Tokyo Electric Power  74,272  389,026 
Tokyo Electron  8,800  505,940 
Tokyo Gas  135,000  597,301 
Tokyo Steel Manufacturing  5,500  59,176 
Tokyo Tatemono  19,000  68,141 
Tokyu  57,820  238,007 
Tokyu Land  24,000  102,933 
TonenGeneral Sekiyu  14,000  173,231 
Toppan Printing  28,000  218,782 
Toray Industries  77,000  564,641 
Toshiba  206,000  1,084,077 
Tosoh  29,000  111,511 
TOTO  14,000  108,874 
Toyo Seikan Kaisha  7,100  119,792 
Toyo Suisan Kaisha  5,000  114,802 
Toyoda Gosei  3,600  78,309 

 

The Fund  25 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Toyota Boshoku  4,200  65,117 
Toyota Industries  9,600  289,869 
Toyota Motor  142,014  5,653,256 
Toyota Tsusho  11,600  191,713 
Trend Micro  5,200  147,464 
Tsumura & Co.  3,100  96,087 
Ube Industries  46,600  147,599 
UNICHARM  6,300  249,236 
UNY  9,000  78,420 
Ushio  5,900  119,396 
USS  980  75,004 
West Japan Railway  88  318,314 
Yahoo! Japan  751  273,873 
Yakult Honsha  5,100  140,919 
Yamada Denki  4,410  305,450 
Yamaguchi Financial Group  11,000  98,829 
Yamaha  9,200  114,858 
Yamaha Motor  13,600a  257,619 
Yamato Holdings  20,600  327,000 
Yamato Kogyo  1,800  59,187 
Yamazaki Baking  6,000  76,904 
Yaskawa Electric  12,000  139,463 
Yokogawa Electric  11,500a  92,692 
    120,090,126 
Luxembourg—.5%     
ArcelorMittal  43,959  1,619,995 
Millicom International Cellular, SDR  4,027  437,282 
SES  16,018  421,339 
Subsea 7  14,829  390,606 
Tenaris  24,082  608,445 
    3,477,667 
Netherlands—2.7%     
Aegon  81,616a  649,136 
Akzo Nobel  12,145  944,875 
ASML Holding  22,623  938,262 
Corio  2,950  209,245 

 

26


 

Common Stocks (continued)  Shares  Value ($) 
Netherlands (continued)     
Delta Lloyd  3,776  99,548 
European Aeronautic Defence and Space  20,994a  650,651 
Fugro  3,362  308,897 
Heineken  13,262  795,181 
Heineken Holding  5,874  310,545 
ING Groep  198,369a  2,619,257 
Koninklijke Ahold  60,558  851,625 
Koninklijke Boskalis Westminster  3,558  189,529 
Koninklijke DSM  8,006  552,904 
Koninklijke KPN  81,120  1,289,539 
Koninklijke Philips Electronics  50,485  1,499,480 
Koninklijke Vopak  3,832  183,971 
QIAGEN  11,934a  255,840 
Randstad Holding  5,958  335,714 
Reed Elsevier  34,899  458,061 
SBM Offshore  8,291  242,996 
STMicroelectronics  32,926  389,471 
TNT  19,165  472,699 
Unilever  84,456  2,784,126 
Wolters Kluwer  15,164  353,881 
    17,385,433 
New Zealand—.1%     
Auckland International Airport  56,228  100,791 
Contact Energy  16,082a  77,263 
Fletcher Building  32,253  239,332 
Sky City Entertainment Group  33,202  95,440 
Telecom Corporation of New Zealand  91,970  161,518 
    674,344 
Norway—.9%     
Aker Solutions  8,329  201,268 
DnB NOR  51,118  832,282 
Norsk Hydro  47,819  424,425 
Orkla  41,365  419,647 
Renewable Energy  29,300a  103,575 
SeaDrill  14,482  513,873 
Statoil  57,070  1,672,106 

 

The Fund  27 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Norway (continued)     
Telenor  43,766  757,272 
Yara International  9,814  575,647 
    5,500,095 
Portugal—.3%     
Banco Comercial Portugues, Cl. R  154,733a  123,733 
Banco Espirito Santo  27,218  114,842 
Brisa Auto-Estradas de Portugal  9,633  64,554 
Cimpor-Cimentos de Portugal  12,398  85,806 
Energias de Portugal  96,162  393,756 
Galp Energia, Cl. B  12,510  280,345 
Jeronimo Martins  11,415  187,642 
Portugal Telecom  28,947  353,957 
    1,604,635 
Singapore—1.7%     
Ascendas Real Estate Investment Trust  74,281  123,371 
CapitaLand  132,500  368,583 
CapitaMall Trust  120,000  185,559 
Capitamalls Asia  74,000  107,163 
City Developments  30,000  290,612 
ComfortDelgro  93,700  117,293 
Cosco Singapore  48,000  87,183 
DBS Group Holdings  89,588  1,097,998 
Fraser and Neave  50,150  257,264 
Genting Singapore  312,527a  554,865 
Global Logistic Properties  90,843  143,446 
Golden Agri-Resources  374,440  203,725 
Hutchison Port Holdings Trust  269,000  247,480 
Jardine Cycle & Carriage  5,422  163,603 
Keppel  73,700  717,554 
Keppel Land  36,000  122,823 
Neptune Orient Lines  56,000  86,136 
Noble Group  161,963  295,502 
Olam International  59,300  139,244 
Oversea-Chinese Banking  126,942  991,856 
SembCorp Industries  53,254  235,281 
SembCorp Marine  41,000  190,198 

 

28


 

Common Stocks (continued)  Shares  Value ($) 
Singapore (continued)     
Singapore Airlines  27,733  319,477 
Singapore Exchange  46,000  293,557 
Singapore Press Holdings  80,075  260,747 
Singapore Technologies Engineering  92,000  237,104 
Singapore Telecommunications  405,951  1,036,259 
StarHub  26,918  63,207 
United Overseas Bank  64,112  1,029,149 
UOL Group  23,111  91,517 
Wilmar International  98,000  422,549 
    10,480,305 
Spain—3.6%     
Abertis Infraestructuras  14,596  346,364 
Acciona  1,296  151,012 
Acerinox  5,086  102,355 
ACS Actividades de Construccion y Servicios  7,321  368,907 
Amadeus IT Holding, Cl. A  9,770 a 204,955 
Banco Bilbao Vizcaya Argentaria  225,272  2,894,273 
Banco de Sabadell  50,703  225,141 
Banco de Valencia  11,277 a 45,674 
Banco Popular Espanol  45,199  271,446 
Banco Santander  428,868  5,485,876 
Bankinter  16,421  122,785 
Criteria Caixacorp  42,917  317,401 
EDP Renovaveis  13,006a  100,337 
Enagas  8,939  221,539 
Ferrovial  23,356  322,703 
Fomento de Construcciones y Contratas  3,199  108,826 
Gas Natural  16,252  334,665 
Gestevision Telecinco  9,934  111,817 
Grifols  6,640  131,709 
Iberdrola  195,155  1,815,355 
Iberdrola Renovables  40,110  183,936 
Inditex  11,088  995,887 
Indra Sistemas  5,136  116,734 
International Consolidated Airlines Group  53,331 a 212,387 
Mapfre  40,701  170,282 

 

The Fund  29 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Spain (continued)     
Red Electrica  5,475  349,924 
Repsol  37,398  1,337,704 
Telefonica  211,490  5,694,830 
Zardoya Otis  7,387  126,032 
    22,870,856 
Sweden—3.1%     
Alfa Laval  17,158  385,154 
Assa Abloy, Cl. B  16,208  487,794 
Atlas Copco, Cl. A  34,477  1,014,736 
Atlas Copco, Cl. B  20,174  535,862 
Boliden  13,856  313,101 
Electrolux, Ser. B  12,421  316,738 
Getinge, Cl. B  10,269  273,617 
Hennes & Mauritz, Cl. B  52,378  1,855,311 
Hexagon, Cl. B  12,498  325,544 
Holmen, Cl. B  3,004  111,141 
Husqvarna, Cl. B  20,545  161,977 
Industrivarden, Cl. C  5,510  110,248 
Investor, Cl. B  23,197  579,213 
Kinnevik Investment, Cl. B  11,875  307,346 
Modern Times Group, Cl. B  2,552  196,034 
Nordea Bank  137,127  1,568,654 
Ratos, Cl. B  5,558  230,254 
Sandvik  52,869  1,124,499 
Scania, Cl. B  16,508  429,996 
Securitas, Cl. B  15,857  199,153 
Skandinaviska Enskilda Banken, Cl. A  73,450  708,008 
Skanska, Cl. B  20,691  445,580 
SKF, Cl. B  20,274  641,446 
SSAB, Cl. A  9,760  174,881 
Svenska Cellulosa, Cl. B  29,154  447,898 
Svenska Handelsbanken, Cl. A  24,877  865,499 
Swedbank, Cl. A  36,621  696,281 
Swedish Match  11,752  418,029 
Tele2, Cl. B  16,050  403,953 

 

30


 

Common Stocks (continued)  Shares  Value ($) 
Sweden (continued)     
Telefonaktiebolaget LM Ericsson, Cl. B  154,393  2,350,194 
TeliaSonera  114,309  935,728 
Volvo, Cl. B  71,086  1,398,746 
    20,012,615 
Switzerland—7.8%     
ABB  113,622a  3,124,294 
Actelion  5,031a  295,157 
Adecco  6,268  445,678 
Aryzta  4,068  225,779 
Baloise Holding  2,556  281,515 
Cie Financiere Richemont, Cl. A  26,709  1,719,193 
Credit Suisse Group  58,403  2,643,586 
GAM Holding  11,520a  226,168 
Geberit  2,016  470,079 
Givaudan  442a  489,613 
Holcim  12,479  1,082,007 
Julius Baer Group  10,717a  498,798 
Kuehne & Nagel International  2,891  460,057 
Lindt & Spruengli  6  222,431 
Lindt & Spruengli-PC  47  155,323 
Logitech International  9,187a  126,732 
Lonza Group  2,668a  228,260 
Nestle  178,604  11,043,854 
Novartis  108,680  6,426,067 
Pargesa Holding-BR  1,539  157,542 
Roche Holding  36,178  5,844,635 
Schindler Holding-PC  3,518  452,564 
SGS  278  549,630 
Sika-BR  104  264,416 
Sonova Holding  2,369  238,278 
Straumann Holding  380  98,933 
Swatch Group  2,143  189,389 
Swatch Group-BR  1,609  788,335 
Swiss Life Holding  1,524a  276,915 
Swiss Reinsurance  17,953a  1,065,665 

 

The Fund  31 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Switzerland (continued)     
Swisscom  1,214  554,824 
Syngenta  4,843a 1,706,998 
Synthes  3,082  528,779 
Transocean  16,516a 1,205,728 
UBS  187,132a  3,725,617 
Zurich Financial Services  7,540 a 2,109,759 
    49,922,598 
United Kingdom—21.0%     
3i Group  49,824  232,774 
Admiral Group  10,809  305,048 
Aggreko  13,180  392,846 
AMEC  17,013  340,521 
Anglo American  67,823  3,530,068 
Antofagasta  20,373  464,521 
ARM Holdings  67,291  696,435 
Associated British Foods  18,863  316,826 
AstraZeneca  73,705  3,675,784 
Autonomy  11,216a  301,194 
Aviva  144,392  1,076,064 
Babcock International Group  19,762  211,121 
BAE Systems  175,353  959,039 
Balfour Beatty  33,777  184,677 
Barclays  593,565  2,794,866 
BG Group  173,950  4,449,283 
BHP Billiton  113,570  4,782,124 
BP  968,191  7,469,673 
British American Tobacco  102,708  4,472,939 
British Land  44,401  444,721 
British Sky Broadcasting Group  60,158  844,865 
BT Group  395,911  1,292,981 
Bunzl  16,760  207,983 
Burberry Group  23,186  500,815 
Cable & Wireless Worldwide  140,485  112,685 
Cairn Energy  74,002 a 557,786 
Capita Group  31,077  381,504 
Capital Shopping Centres Group  29,284  198,258 

 

32


 

Common Stocks (continued)  Shares  Value ($) 
United Kingdom (continued)     
Carnival  9,179  369,738 
Centrica  263,430  1,409,992 
Cobham  58,884  224,029 
Compass Group  98,184  957,210 
Diageo  129,891  2,638,810 
Essar Energy  18,577  142,843 
Eurasian Natural Resources  13,200  200,684 
Experian  52,763  709,767 
Firstgroup  25,087  135,867 
Fresnillo  9,006  246,503 
G4S  72,991  336,260 
GlaxoSmithKline  267,307  5,820,617 
Hammerson  35,663  279,634 
Home Retail Group  44,656  163,790 
HSBC Holdings  911,421  9,963,394 
ICAP  27,917  241,435 
Imperial Tobacco Group  52,098  1,830,912 
Inmarsat  23,343  237,113 
Intercontinental Hotels Group  15,563  340,312 
International Power  79,135  436,368 
Intertek Group  8,606  305,030 
Invensys  41,117  233,587 
Investec  26,347  211,509 
ITV  187,172a 237,423 
J Sainsbury  64,644  375,546 
Johnson Matthey  11,081  370,205 
Kazakhmys  10,953  251,930 
Kingfisher  120,262  550,620 
Land Securities Group  39,463  516,704 
Legal & General Group  304,912  624,532 
Lloyds Banking Group  2,116,075a  2,091,227 
London Stock Exchange Group  7,101  103,221 
Lonmin  8,963  243,981 
Man Group  94,804  394,845 
Marks & Spencer Group  82,497  533,890 
National Grid  180,670  1,850,275 

 

The Fund  33 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
United Kingdom (continued)     
Next  9,365  349,426 
Old Mutual  283,488  657,251 
Pearson  42,503  815,975 
Petrofac  13,173  331,775 
Prudential  129,892  1,674,726 
Randgold Resources  4,522 a 393,716 
Reckitt Benckiser Group  31,581  1,750,930 
Reed Elsevier  62,459  552,144 
Resolution  71,775  362,383 
Rexam  46,669  304,048 
Rio Tinto  74,632  5,427,420 
Rolls-Royce Group  94,438 a 1,010,474 
Royal Bank of Scotland Group  938,188a  648,942 
Royal Dutch Shell, Cl. A  182,634  7,074,882 
Royal Dutch Shell, Cl. B  138,767  5,385,976 
RSA Insurance Group  183,775  421,781 
SABMiller  48,652  1,813,272 
Sage Group  67,743  322,026 
Schroders  5,805  183,772 
Scottish & Southern Energy  46,949  1,063,428 
Segro  35,573  192,894 
Serco Group  25,274  238,390 
Severn Trent  12,168  304,636 
Shire  29,445  908,584 
Smith & Nephew  46,312  507,892 
Smiths Group  19,823  440,408 
Standard Chartered  119,894  3,317,613 
Standard Life  120,093  452,898 
Tesco  416,192  2,801,386 
Thomas Cook Group  43,248  123,568 
Tui Travel  29,455  117,517 
Tullow Oil  45,194  1,080,212 
Unilever  66,454  2,152,545 
United Utilities Group  36,086  380,097 

 

34


 

Common Stocks (continued)  Shares  Value ($) 
United Kingdom (continued)     
Vedanta Resources  6,494  251,836 
Vodafone Group  2,698,782  7,724,439 
Weir Group  10,377  333,011 
Whitbread  8,998  252,137 
WM Morrison Supermarkets  109,098  536,446 
Wolseley  14,763  533,846 
WPP  65,758  857,155 
Xstrata  106,643  2,706,364 
    133,535,425 
Total Common Stocks     
   (cost $503,014,251)    616,945,729 
 
Preferred Stocks—.5%     
Germany     
Bayerische Motoren Werke  2,987  186,787 
Henkel & Co.  9,090  620,079 
Porsche Automobil Holding  7,841  569,195 
ProSieben Sat.1 Media  3,585  102,837 
RWE  1,967  119,895 
Volkswagen  8,704  1,717,453 
Total Preferred Stocks     
   (cost $1,792,178)    3,316,246 
 
Rights—.0%     
Australia—.0%     
Origin Energy  9,041 a 33,243 
Portugal—.0%     
Banco Comercial Portugues  154,733 a 5,280 
Spain—.0%     
Banco de Valencia  11,277a  887 
Banco Popular Espanol  45,135 a 3,147 
    4,034 
Total Rights     
(cost $32,577)    42,557 

 

The Fund  35 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

  Principal   
Short-Term Investments—.2%  Amount ($)  Value ($) 
U.S. Treasury Bills;     
0.06%, 6/16/11     
(cost $1,179,911)  1,180,000c  1,179,998 
 
Other Investment—1.1%  Shares  Value ($) 
Registered Investment Company;     
Dreyfus Institutional Preferred     
Plus Money Market Fund     
(cost $7,300,000)  7,300,000d  7,300,000 
Total Investments (cost $513,318,917)  98.6%  628,784,530 
Cash and Receivables (Net)  1.4%  8,803,016 
Net Assets  100.0%  637,587,546 

 

BR—Bearer Certificate 
CDI—Chess Depository Interest 
PC—Participation Certificate 
PPS—Price Protected Shares 
RSP—Risparmio (Savings) Shares 
SDR—Swedish Depository Receipts 
STRIP—Separate Trading of Registered Interest and Principal of Securities 
a Non-income producing security. 
b The valuation of this security has been determined in good faith by management under the direction of the Board of 
Directors.At April 30, 2011, the value of this security amounted to $52 or less than .01% of net assets. 
c Held by a broker as collateral for open financial futures positions. 
d Investment in affiliated money market mutual fund. 

 

Portfolio Summary (Unaudited)     
 
  Value (%)  Value (%) 
Banking  12.3  Diversified Financials  4.3 
Materials  11.2  Insurance  4.2 
Capital Goods  9.2  Automobiles & Components  4.0 
Energy  8.3  Real Estate  3.0 
Food, Beverage & Tobacco  6.5  Others  18.6 
Pharmaceuticals & Biotechnology  5.9  Short-term/Money Market Investments  1.3 
Telecommunications  5.3     
Utilities  4.5    98.6 
 
† Based on net assets.       
See notes to financial statements.       

 

36


 

STATEMENT OF FINANCIAL FUTURES 
April 30, 2011 (Unaudited) 

 

        Unrealized 
    Market Value    Appreciation 
    Covered by    (Depreciation) 
Contracts  Contracts ($)  Expiration  at 4/30/2011($) 
Financial Futures Long         
DJ Euro Stoxx 50  132  5,771,230  June 2011  324,863 
FTSE 100  46  4,628,849  June 2011  199,754 
SPI 200 Index  12  1,578,498  June 2011  39,168 
TOPIX  42  4,417,920  June 2011  (104,039) 
Gross Unrealized Appreciation        563,785 
Gross Unrealized Depreciation        (104,039) 
 
See notes to financial statements.         

 

The Fund  37 

 


 

STATEMENT OF ASSETS AND LIABILITIES 
April 30, 2011 (Unaudited) 

 

  Cost  Value 
Assets ($):     
Investments in securities—See Statement of Investments:     
Unaffiliated issuers  506,018,917  621,484,530 
Affiliated issuers  7,300,000  7,300,000 
Cash    509,905 
Cash denominated in foreign currencies  3,964,500  4,125,000 
Dividends and interest receivable    3,622,544 
Receivable for shares of Common Stock subscribed    584,408 
Unrealized appreciation on forward foreign     
currency exchange contracts—Note 4    564,083 
Receivable for investment securities sold    345,782 
    638,536,252 
Liabilities ($):     
Due to The Dreyfus Corporation and affiliates—Note 3(b)    303,221 
Payable for shares of Common Stock redeemed    482,982 
Unrealized depreciation on forward foreign     
currency exchange contracts—Note 4    151,455 
Payable for futures variation margin—Note 4    11,048 
    948,706 
Net Assets ($)    637,587,546 
Composition of Net Assets ($):     
Paid-in capital    575,951,223 
Accumulated undistributed investment income—net    3,134,873 
Accumulated net realized gain (loss) on investments    (58,132,790) 
Accumulated net unrealized appreciation (depreciation) on     
investments and foreign currency transactions (including     
$459,746 net unrealized appreciation on financial futures)    116,634,240 
Net Assets ($)    637,587,546 
Shares Outstanding     
(200 million shares of $.001 par value Common Stock authorized)    39,050,550 
Net Asset Value, offering and redemption price per share—Note 3(c) ($)  16.33 
See notes to financial statements.     

 

38


 

STATEMENT OF OPERATIONS 
Six Months Ended April 30, 2011 (Unaudited) 

 

Investment Income ($):   
Income:   
Cash dividends (net of $707,385 foreign taxes withheld at source):   
Unaffiliated issuers  8,560,407 
Affiliated issuers  8,091 
Total Income  8,568,498 
Expenses:   
Management fee—Note 3(a)  1,030,387 
Shareholder servicing costs—Note 3(b)  735,990 
Directors’ fees—Note 3(a)  15,313 
Loan commitment fees—Note 2  200 
Total Expenses  1,781,890 
Less—Directors’ fees reimbursed by the Manager—Note 3(a)  (15,313) 
Net Expenses  1,766,577 
Investment Income—Net  6,801,921 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):   
Net realized gain (loss) on investments and foreign currency transactions  (5,067,393) 
Net realized gain (loss) on financial futures  129,969 
Net realized gain (loss) on forward foreign currency exchange contracts  (406,270) 
Net Realized Gain (Loss)  (5,343,694) 
Net unrealized appreciation (depreciation)   
on investments and foreign currency transactions  68,360,526 
Net unrealized appreciation (depreciation) on financial futures  572,104 
Net unrealized appreciation (depreciation)   
on forward foreign currency exchange contracts  416,769 
Net Unrealized Appreciation (Depreciation)  69,349,399 
Net Realized and Unrealized Gain (Loss) on Investments  64,005,705 
Net Increase in Net Assets Resulting from Operations  70,807,626 
 
See notes to financial statements.   

 

The Fund  39 

 


 

STATEMENT OF CHANGES IN NET ASSETS

  Six Months Ended   
  April 30, 2011  Year Ended 
  (Unaudited)  October 31, 2010 
Operations ($):     
Investment income—net  6,801,921  12,261,382 
Net realized gain (loss) on investments  (5,343,694)  (46,595,846) 
Net unrealized appreciation     
(depreciation) on investments  69,349,399  74,380,343 
Net Increase (Decrease) in Net Assets     
Resulting from Operations  70,807,626  40,045,879 
Dividends to Shareholders from ($):     
Investment income—net  (12,701,894)  (13,103,285) 
Net realized gain on investments    (3,322,070) 
Total Dividends  (12,701,894)  (16,425,355) 
Capital Stock Transactions ($):     
Net proceeds from shares sold  99,845,397  181,100,102 
Dividends reinvested  12,108,195  15,535,963 
Cost of shares redeemed  (93,899,448)  (206,110,488) 
Increase (Decrease) in Net Assets from     
Capital Stock Transactions  18,054,144  (9,474,423) 
Total Increase (Decrease) in Net Assets  76,159,876  14,146,101 
Net Assets ($):     
Beginning of Period  561,427,670  547,281,569 
End of Period  637,587,546  561,427,670 
Undistributed investment income—net  3,134,873  9,034,846 
Capital Share Transactions (Shares):     
Shares sold  6,578,395  13,033,884 
Shares issued for dividends reinvested  818,675  1,097,173 
Shares redeemed  (6,182,195)  (15,247,182) 
Net Increase (Decrease) in Shares Outstanding  1,214,875  (1,116,125) 
 
See notes to financial statements.     

 

40


 

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, 2011    Year Ended October 31,   
  (Unaudited)  2010  2009  2008  2007  2006 
Per Share Data ($):             
Net asset value,             
beginning of period  14.84  14.05  11.51  21.98  18.03  14.47 
Investment Operations:             
Investment income—neta  .18  .31  .30  .49  .43  .38 
Net realized and unrealized             
gain (loss) on investments  1.64  .89  2.51  (10.47)  3.90  3.45 
Total from Investment Operations  1.82  1.20  2.81  (9.98)  4.33  3.83 
Distributions:             
Dividends from             
investment income—net  (.33)  (.33)  (.25)  (.49)  (.38)  (.27) 
Dividends from net realized             
gain on investments    (.08)  (.02)       
Total Distributions  (.33)  (.41)  (.27)  (.49)  (.38)  (.27) 
Net asset value, end of period  16.33  14.84  14.05  11.51  21.98  18.03 
Total Return (%)  12.46b  8.73  25.13  (46.37)  24.40  26.83 
Ratios/Supplemental Data (%):             
Ratio of total expenses             
to average net assets  .61c  .61  .61  .61  .61  .60 
Ratio of net expenses             
to average net assets  .60c  .60  .60  .60  .60  .60 
Ratio of net investment income             
to average net assets  2.31c  2.25  2.53  2.72  2.20  2.30 
Portfolio Turnover Rate  2.75b  10.49  17.26  7.17  3.31  4.12 
Net Assets, end of period             
($ x 1,000)  637,588  561,428  547,282  326,931  561,653  355,608 

 

a  Based on average shares outstanding at each month end. 
b  Not annualized. 
c  Annualized. 
See notes to financial statements. 

 

The Fund  41 

 


 

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 match the performance of the Morgan Stanley Capital International Europe, Australasia, Far East Free Index (MSCI EAFE®). The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities 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 Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

42


 

The Company 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. U.S. Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service approved by the Board of Directors. Registered investment companies that are not traded on an exchange 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 American Depository Receipts and futures contracts. For other

The Fund  43 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate.

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

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

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

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

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

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

44


 

The following is a summary of the inputs used as of April 30, 2011 in valuing the fund’s investments:

      Level 2—Other   Level 3—     
  Level 1—   Significant   Significant     
  Unadjusted   Observable   Unobservable     
  Quoted Prices   Inputs   Inputs  Total  
Assets ($)               
Investments in Securities:            
Equity Securities—               
Foreign  620,304,480     52  620,304,532  
U.S. Treasury    1,179,998     1,179,998  
Mutual Funds  7,300,000       7,300,000  
Other Financial               
Instruments:               
Forward Foreign               
Currency Exchange            
Contracts††    564,083     564,083  
Futures††  563,785       563,785  
Liabilities ($)               
Other Financial               
Instruments:               
Forward Foreign               
Currency Exchange            
Contracts††    (151,455 )    (151,455 ) 
Futures††  (104,039 )      (104,039 ) 

 

  See Statement of Investments for additional detailed categorizations. 
††  Amount shown represents unrealized appreciation (depreciation) at period end. 

 

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

  Investments in 
  Equity Securities—Foreign ($) 
Balance as of 10/31/2010  49 
Realized gain (loss)   
Change in unrealized appreciation (depreciation)  3 
Net purchases (sales)   
Transfers in and/or out of Level 3   
Balance as of 4/30/2011  52 
The amount of total gains (losses) for   
the period included in earnings   
attributable to the change in   
unrealized gains (losses) relating   
to investments still held at 4/30/2011  3 

 

The Fund  45 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about FairValue Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at April 30, 2011.The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the fund’s financial statement disclosures.

(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 of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date, 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 other than investments resulting from changes in exchange rates. Foreign currency gains and losses on investments are included with net realized and unrealized gain or loss on investments.

46


 

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Investing in foreign markets may involve special risks and considerations not typically associated with investing in the U.S. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls and delayed settlements, and their prices may be more volatile than those of comparable securities in the U.S.

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

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended April 30, 2011 were as follows:

Affiliated               
Investment  Value       Value   Net 
Company  10/31/2010 ($)  Purchases ($)  Sales ($)  4/30/2011 ($)  Assets (%) 
Dreyfus               
Institutional               
Preferred               
Plus Money               
Market               
Fund  7,800,000   41,450,000  41,950,000  7,300,000   1.1 

 

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue

The Fund  47 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Code of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(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.

As of and during the period ended April 30, 2011, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the three-year period ended October 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

The fund has an unused capital loss carryover of $37,109,984 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2010. If not applied, the carryover expires in fiscal 2018.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2010 was as follows: ordinary income $13,109,592 and long-term capital gains $3,315,763.The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, (each,

48


 

a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended April 30, 2011, the fund did not borrow under the Facilities.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .35% 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 fees and commissions, taxes, interest fees, 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 the accrued 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.Annual retainer fees and attendance fees are allocated to each fund based on net assets. During the period ended April 30, 2011, fees reimbursed by the Manager amounted to $15,313.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services, at the annual rate of .25% 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 deter-

The Fund  49 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

mines the amounts to be paid to Service Agents. During the period ended April 30, 2011, the fund was charged $735,990 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 $176,879 and shareholder services plan fees $126,342.

(c) A 2% redemption fee is charged and retained by the fund on certain shares redeemed within sixty days following the date of issuance subject to exceptions, including redemptions made through use of the fund’s exchange privilege. During the period ended April 30, 2011, redemption fees charged and retained by the fund amounted to $3,271. Effective December 15, 2010, the fund no longer charges a redemption fee on shares that are redeemed or exchanged before the end of the required holding period. The fund reserves the right to reimpose a redemption fee in the future.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, forward contracts and financial futures, during the period ended April 30, 2011, amounted to $25,547,970 and $15,958,744, respectively.

The following tables show the fund’s exposure to different types of market risk as it relates to the Statement of Assets and Liabilities and the Statement of Operations, respectively.

Fair value of derivative instruments as of April 30, 2011 is shown below:

  Derivative    Derivative 
  Assets ($)    Liabilities ($) 
Equity risk1  563,785  Equity risk1  (104,039) 
Foreign exchange risk2  564,083  Foreign exchange risk3  (151,455) 
Gross fair value of       
derivative contracts  1,127,868    (255,494) 

 

Statement of Assets and Liabilities location: 
1  Includes cumulative appreciation (depreciation) on futures contracts as reported in the Statement of 
  Financial Futures, but only the unpaid variation margin is reported in the Statement of Assets 
  and Liabilities. 
2  Unrealized appreciation on forward foreign currency exchange contracts. 
3  Unrealized depreciation on forward foreign currency exchange contracts. 

 

50


 

The effect of derivative instruments in the Statement of Operations during the period ended April 30, 2011 is shown below:

  Amount of realized gain or (loss) on derivatives recognized in income ($) 
    Forward   
Underlying risk  Futures4  Contracts5  Total 
Equity  129,969    129,969 
Foreign exchange    (406,270)  (406,270) 
Total  129,969  (406,270)  (276,301) 
 
Change in unrealized appreciation or (depreciation) on derivatives recognized in income ($) 
    Forward   
Underlying risk  Futures6  Contracts7  Total 
Equity  572,104    572,104 
Foreign exchange    416,769  416,769 
Total  572,104  416,769  988,873 

 

Statement of Operations location: 
4  Net realized gain (loss) on financial futures. 
5  Net realized gain (loss) on forward foreign currency exchange contracts. 
6  Net unrealized appreciation (depreciation) on financial futures. 
7  Net unrealized appreciation (depreciation) on forward foreign currency exchange contracts. 

 

Futures Contracts: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk as a result of changes in value of underlying financial instruments. The fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board ofTrade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded.When the contracts are closed, the fund recognizes a realized gain or loss.There is minimal counter-

The Fund  51 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

party credit risk to the fund with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default. Contracts open at April 30, 2011 are set forth in the Statement of Financial Futures.

Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strategy. When executing forward 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 contracts, the fund incurs 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 contracts, the fund incurs 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. Any realized gain or loss which occurred during the period is reflected in the Statement of Operations.The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is typically limited to the unrealized gain on each open contract.The following summarizes open forward contracts at April 30, 2011:

  Foreign      Unrealized 
Forward Foreign Currency  Currency      Appreciation 
Exchange Contracts  Amounts  Cost ($)  Value ($) (Depreciation)($) 
Purchases:         
Australian Dollar,         
Expiring 6/15/2011  815,126  811,688  887,932  76,244 
Australian Dollar,         
Expiring 6/15/2011  121,600  124,670  132,461  7,791 
Australian Dollar,         
Expiring 6/15/2011  122,300  128,093  133,224  5,131 
British Pound,         
Expiring 6/15/2011  1,229,166  1,989,067  2,051,838  62,771 

 

52


 

  Foreign      Unrealized 
Forward Foreign Currency  Currency      Appreciation 
Exchange Contracts  Amounts  Cost ($)  Value ($) (Depreciation)($) 
Purchases (continued):         
British Pound,         
Expiring 6/15/2011  59,400  95,449  99,156  3,707 
British Pound,         
Expiring 6/15/2011  116,500  187,803  194,473  6,670 
British Pound,         
Expiring 6/15/2011  170,300  277,110  284,281  7,171 
British Pound,         
Expiring 6/15/2011  57,400  93,843  95,818  1,975 
British Pound,         
Expiring 6/15/2011  57,300  93,134  95,651  2,517 
British Pound,         
Expiring 6/15/2011  58,600  93,525  97,821  4,296 
British Pound,         
Expiring 6/15/2011  294,200  470,062  491,106  21,044 
British Pound,         
Expiring 6/15/2011  59,800  96,974  99,824  2,850 
British Pound,         
Expiring 6/15/2011  180,000  294,954  300,473  5,519 
British Pound,         
Expiring 6/15/2011  177,900  290,410  296,967  6,557 
British Pound,         
Expiring 6/15/2011  60,300  99,747  100,658  911 
Euro,         
Expiring 6/15/2011  1,192,549  1,656,886  1,763,973  107,087 
Euro,         
Expiring 6/15/2011  88,300  122,610  130,610  8,000 
Euro,         
Expiring 6/15/2011  615,988  854,166  911,146  56,980 
Euro,         
Expiring 6/15/2011  58,700  81,069  86,827  5,758 
Euro,         
Expiring 6/15/2011  144,300  201,234  213,443  12,209 
Euro,         
Expiring 6/15/2011  108,700  154,027  160,785  6,758 
Euro,         
Expiring 6/15/2011  83,400  118,096  123,362  5,266 
Euro,         
Expiring 6/15/2011  166,700  235,654  246,576  10,922 

 

The Fund  53 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

  Foreign      Unrealized 
Forward Foreign Currency  Currency      Appreciation 
Exchange Contracts  Amounts  Cost ($)  Value ($) (Depreciation)($) 
Purchases (continued):         
Euro,         
Expiring 6/15/2011  28,400  39,921  42,008  2,087 
Euro,         
Expiring 6/15/2011  312,800  439,969  462,682  22,713 
Euro,         
Expiring 6/15/2011  115,400  163,226  170,695  7,469 
Euro,         
Expiring 6/15/2011  232,300  335,267  343,609  8,342 
Euro,         
Expiring 6/15/2011  199,200  286,821  294,649  7,828 
Euro,         
Expiring 6/15/2011  85,300  121,685  126,173  4,488 
Euro,         
Expiring 6/15/2011  28,900  42,337  42,748  411 
Japanese Yen,         
Expiring 6/15/2011  9,310,000  112,647  114,801  2,154 
Japanese Yen,         
Expiring 6/15/2011  136,455,145  1,650,630  1,682,615  31,985 
Japanese Yen,         
Expiring 6/15/2011  9,070,000  110,962  111,842  880 
Japanese Yen,         
Expiring 6/15/2011  24,645,000  304,093  303,895  (198) 
Japanese Yen,         
Expiring 6/15/2011  8,215,000  101,484  101,298  (186) 
Japanese Yen,         
Expiring 6/15/2011  8,490,000  104,048  104,689  641 
Japanese Yen,         
Expiring 6/15/2011  25,980,000  307,164  320,357  13,193 
Japanese Yen,         
Expiring 6/15/2011  16,830,000  197,633  207,530  9,897 
Japanese Yen,         
Expiring 6/15/2011  6,049,200  71,377  74,592  3,215 
Japanese Yen,         
Expiring 6/15/2011  17,070,000  201,868  210,488  8,620 
Japanese Yen,         
Expiring 6/15/2011  8,510,000  101,128  104,936  3,808 
Japanese Yen,         
Expiring 6/15/2011  8,455,000  101,747  104,258  2,511 
Japanese Yen,         
Expiring 6/15/2011  16,770,000  203,206  206,789  3,583 

 

54


 

  Foreign      Unrealized 
Forward Foreign Currency  Currency      Appreciation 
Exchange Contracts  Amounts  Proceeds ($)  Value ($) (Depreciation)($) 
Sales:         
Australian Dollar,         
Expiring 6/15/2011  43,497  45,504  47,382  (1,878) 
Australian Dollar,         
Expiring 6/15/2011  122,300  128,150  133,223  (5,073) 
British Pound,         
Expiring 6/15/2011  59,800  98,449  99,743  (1,294) 
British Pound,         
Expiring 6/15/2011  58,400  93,435  97,487  (4,052) 
British Pound,         
Expiring 6/15/2011  174,800  280,512  291,793  (11,281) 
British Pound,         
Expiring 6/15/2011  59,000  94,651  98,488  (3,837) 
British Pound,         
Expiring 6/15/2011  358,400  577,506  598,274  (20,768) 
British Pound,         
Expiring 6/15/2011  20,546  33,569  34,297  (728) 
British Pound,         
Expiring 6/15/2011  177,900  289,857  296,967  (7,110) 
British Pound,         
Expiring 6/15/2011  120,800  201,495  201,651  (156) 
Euro,         
Expiring 6/15/2011  114,800  167,160  170,316  (3,156) 
Euro,         
Expiring 6/15/2011  58,200  80,293  86,087  (5,794) 
Euro,         
Expiring 6/15/2011  230,800  321,962  341,391  (19,429) 
Euro,         
Expiring 6/15/2011  57,100  80,959  84,460  (3,501) 
Euro,         
Expiring 6/15/2011  490,500  696,439  725,528  (29,089) 
Euro,         
Expiring 6/15/2011  28,800  41,118  42,600  (1,482) 
Euro,         
Expiring 6/15/2011  123,906  178,665  183,277  (4,612) 
Euro,         
Expiring 6/15/2011  256,100  369,152  378,813  (9,661) 
Euro,         
Expiring 6/15/2011  145,600  215,870  215,366  504 

 

The Fund  55 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

  Foreign      Unrealized 
Forward Foreign Currency  Currency      Appreciation 
Exchange Contracts  Amounts  Proceeds ($)  Value ($) (Depreciation)($) 
Sales (continued):         
Euro,         
Expiring 6/15/2011  88,200  130,792  130,462  330 
Japanese Yen,         
Expiring 6/15/2011  27,210,000  336,814  335,524  1,290 
Japanese Yen,         
Expiring 6/15/2011  17,230,000  205,448  212,462  (7,014) 
Japanese Yen,         
Expiring 6/15/2011  8,480,000  99,463  104,566  (5,103) 
Japanese Yen,         
Expiring 6/15/2011  16,910,000  203,389  208,516  (5,127) 
Japanese Yen,         
Expiring 6/15/2011  8,430,000  103,452  103,950  (498) 
Japanese Yen,         
Expiring 6/15/2011  8,535,000  104,817  105,245  (428) 
Gross Unrealized Appreciation      564,083 
Gross Unrealized Depreciation      (151,455) 

 

The following summarizes the average market value of derivatives outstanding during the period ended April 30, 2011:

  Average Market Value ($) 
Equity future contracts  9,905,741 
Forward contracts  7,538,138 

 

At April 30, 2011, accumulated net unrealized appreciation on investments was $115,465,613, consisting of $152,988,898 gross unrealized appreciation and $37,523,285 gross unrealized depreciation.

At April 30, 2011, 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).

56


 

INFORMATION ABOUT THE RENEWAL OF THE 
FUND’S MANAGEMENT AGREEMENT (Unaudited) 

 

At a meeting of the fund’s Board of Directors held on March 1, 2011, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”). The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of Dreyfus. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below.The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund.The Board members considered information previously provided to them in presentations from representatives of Dreyfus regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex, and representatives of Dreyfus confirmed that there had been no material changes in this information. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including the distribution channel(s) for the fund.

The Board members also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus 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 Dreyfus’ extensive administrative, accounting, and compliance infrastructures.The Board also considered portfolio management’s brokerage policies and practices (including policies and practices regarding soft dollars) and the standards applied in seeking best execution.

The Fund  57 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S 
MANAGEMENT AGREEMENT (Unaudited) (continued) 

 

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board members reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended December 31, 2010, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of October 31, 2010. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds. The Board members discussed the results of the comparisons and noted that the fund’s total return performance was at or above the Performance Group median and variously above and below the Performance Universe median for the various periods. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index.

The Board members also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons. Taking into consideration the fund’s “unitary” fee structure, they noted that the fund’s contractual management fee was above the Expense Group median, the fund’s actual management fee was at the Expense Group median and approximated the Expense Universe median and the fund’s total expenses were below the Expense Group and Expense Universe medians.

58


 

Representatives of Dreyfus reviewed with the Board members the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients.They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors, noting the fund’s “unitary” fee structure. The Board members considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the expenses allocated and profit received by Dreyfus and the resulting profitability percentage for managing the fund, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex. The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Board’s counsel stated that the Board members should consider the profitability analysis (1) as part of their evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if

The Fund  59 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S 
MANAGEMENT AGREEMENT (Unaudited) (continued) 

 

the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that, as a result of shared and allocated costs among funds in the Dreyfus funds complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board members also considered potential benefits to Dreyfus from acting as investment adviser and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

  • The Board concluded that the nature, extent and quality of the ser- vices provided by Dreyfus are adequate and appropriate.

  • The Board generally was satisfied with the fund’s performance.

  • The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.

  • The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the manage- ment of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

60


 

The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year. In addition, it should be noted that the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board members and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board members’ conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years. The Board members determined that renewal of the Agreement was in the best interests of the fund and its shareholders.

The Fund  61 

 


 



 

Dreyfus

S&P 500

Index Fund

SEMIANNUAL REPORT April 30, 2011



 

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.



 

 

Contents

 

THE FUND

2     

A Letter from the Chairman and CEO

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

23     

Statement of Financial Futures

24     

Statement of Assets and Liabilities

25     

Statement of Operations

26     

Statement of Changes in Net Assets

27     

Financial Highlights

28     

Notes to Financial Statements

36     

Information About the Renewal of the Fund’s Management Agreement

 

FOR MORE INFORMATION

 

Back Cover


 

Dreyfus 
S&P 500 Index Fund 

 

The Fund


A LETTER FROM THE CHAIRMAN AND CEO

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, 2010, through April 30, 2011.

Multiple crosscurrents have influenced the global and U.S. economies.A modest slowdown in the middle quarters of 2010 gave way to renewed strength by early 2011.The recovery has been fueled by three important characteristics. First, macroeconomic policy has been stimulative in the United States and most of the world. Second, in response to inflation worries emerging countries have shifted policy from aggressively stimulative to neutral, but not restrictive, supporting ongoing demand for commodities. Third, corporate balance sheets around the world have strengthened due to cheap bond financing, rising profits and relatively slow growth in corporate spending. Although shocks emanating from events in the Middle East and Japan presented potential headwinds, U.S. equities generally rallied as investors increasingly recognized that otherwise positive forces would prevent a double-dip recession.

We expect the U.S. economy to continue to expand at a moderate rate, which generally should be good for stocks. However, in the wake of recent gains we believe that selectivity will become more impor-tant.We favor companies with higher growth potential, and we are also optimistic about the prospects of high-quality companies capable of generating dividend increases and share buybacks. As always, your financial advisor can help you align your investment portfolio with the opportunities and challenges that the future may have in store.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.


Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
May 16, 2011

2


 


DISCUSSION OF FUND PERFORMANCE

For the period of November 1, 2010, through April 30, 2011, as provided by Thomas J. Durante, CFA, Karen Q. Wong, and Richard A. Brown, Portfolio Managers

Fund and Market Performance Overview

For the six-month period ended April 30, 2011, Dreyfus S&P 500 Index Fund produced a total return of 16.12%.1 In comparison, the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), the fund’s benchmark, produced a 16.36% return for the same period.2,3

Large-cap stocks rallied during much of the reporting period as an economic recovery gained traction, commodity prices surged higher and corporate earnings grew. The difference in returns between the fund and the S&P 500 Index was primarily the result of transaction costs and operating expenses that are not reflected in the S&P 500 Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the S&P 500 Index by generally investing in all 500 stocks in the S&P 500 Index in proportion to their respective weightings. 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. Each stock is weighted by its float-adjusted market capitalization; that is, larger companies have greater representation in the S&P 500 Index than smaller ones.

Stocks Rallied as the U.S. Economy Recovered

Investor sentiment improved dramatically in the weeks before the start of the reporting period, when a new round of quantitative easing of U.S. monetary policy from the Federal Reserve Board helped convince investors that the economy was unlikely to slip back into recession. A more optimistic investment outlook was reinforced by improvements in employment and consumer spending, as well as better-than-expected corporate earnings across a number of industry groups. Later in the

The Fund  3 

 


 

DISCUSSION OF FUND PERFORMANCE (continued)

fall, the end of uncertainty surrounding national midterm elections and the passage of fiscally stimulative tax legislation lent further support to stock prices.

Improving global economic conditions also supported U.S. stock prices. Better-than-expected economic data in Europe buoyed investor confidence, and robust ongoing demand for industrial commodities and equipment from the emerging markets helped drive several market sectors higher.

The market rally was interrupted in February when a wave of political unrest in the Middle East led to sharply higher crude oil prices, and again in March when a devastating earthquake, tsunami and nuclear disaster in Japan threatened one of the world’s largest economies. However, investors proved resilient, and the U.S. stock market bounced back by the reporting period’s end. Smaller stocks generally produced higher returns than their larger counterparts, and growth stocks typically outperformed value stocks during the reporting period.

Energy Stocks Led the Market’s Advance

Surging oil and natural gas prices supported a sharp rise in energy stocks during the reporting period, particularly in the wake of the political uprisings in the oil-rich Middle East. In addition, the catastrophic failure of Japan’s Fukushima nuclear power plant was widely expected to spark a shift back to fossil fuels, potentially boosting demand for a limited supply of oil and gas.These factors drove gains in large integrated oil companies, particularly those with refinery operations. In addition, exploration-and-production firms and oil services companies boosted earnings in the upturn after having previously cut costs during the recession.

Among industrial companies, the sector’s largest component, a diversified global conglomerate, drove the industry group higher as its financial services division recovered from previous weakness and other units delivered results that exceeded analysts’ expectations. In addition, a number of large machinery and equipment manufacturers saw sales rise during the commodities boom, and several defense contractors advanced as investors grew more confident that defense spending would remain robust.

4


 

The information technology sector benefited as companies throughout the world sought new methods to increase efficiency and productivity, driving the stocks of large technology service providers higher. In addition, one of the more innovative consumer electronics producers and its suppliers continued to do well on the strength of its smartphone and tablet computer products.

The U.S. stock market suffered relatively few weak spots during the reporting period, with the exception of a handful of companies that declined due to company-specific reasons. Of the 10 economic sectors represented in the S&P 500 Index, the utilities sector ranked at the bottom with a single-digit positive return, mainly as a result of higher input costs and the sector’s role as a traditionally defensive investment.

Index Funds Offer Diversification Benefits

As an index fund, we attempt to replicate the returns of the S&P 500 Index by closely approximating the composition of the S&P 500 Index. In our view, one of the greatest benefits of an index fund is that it offers a broadly diversified investment vehicle that can help investors manage risks by limiting the impact on the overall portfolio of unexpected losses in any single industry group or holding.

May 16, 2011

  Equity funds are subject generally to market, market sector, market liquidity, issuer and investment 
  style risks, among other factors, to varying degrees, all of which are more fully described in the 
  fund’s prospectus. 
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. 
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. Investors cannot invest directly in 
  any index. 
3  “Standard & Poor’s®,” “S&P®,”“Standard & Poor’s® 500” and “S&P 500®” are registered 
  trademarks of Standard & Poor’s Financial Services LLC, and have been licensed for use on 
  behalf of the fund.The fund is not sponsored, managed, advised, sold or promoted by Standard & 
  Poor’s and its affiliates and Standard & Poor’s and its affiliates make no representation regarding 
  the advisability of investing in the fund. 

 

The Fund  5 

 


 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) 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, 2010 to April 30, 2011. 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, 2011

Expenses paid per $1,000  $ 2.68 
Ending value (after expenses)  $ 1,161.20 

 

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

Using the SEC’s method to compare expenses

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

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended April 30, 2011

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, 2011 (Unaudited)

Common Stocks—99.6%  Shares  Value ($) 
Consumer Discretionary—10.6%     
Abercrombie & Fitch, Cl. A  18,335  1,298,118 
Amazon.com  73,159a  14,375,743 
Apollo Group, Cl. A  25,498a  1,020,685 
AutoNation  13,378a,b  453,648 
AutoZone  5,665a  1,599,683 
Bed Bath & Beyond  53,917a  3,025,822 
Best Buy  67,706  2,113,781 
Big Lots  15,031a  617,924 
Cablevision Systems (NY Group), Cl. A  47,251  1,664,653 
Carmax  45,866a  1,591,550 
Carnival  88,577  3,372,126 
CBS, Cl. B  141,109  3,558,769 
Chipotle Mexican Grill  6,367a  1,698,652 
Coach  61,535  3,680,408 
Comcast, Cl. A  570,932  14,981,256 
D.R. Horton  58,520  727,989 
Darden Restaurants  28,966  1,360,533 
DeVry  12,890  681,881 
DIRECTV, Cl. A  163,298a  7,934,650 
Discovery Communications, Cl. A  58,514a  2,589,830 
Expedia  41,133  1,029,559 
Family Dollar Stores  26,196  1,420,085 
Ford Motor  776,638a  12,014,590 
Fortune Brands  31,031  2,019,497 
GameStop, Cl. A  30,382a,b  780,210 
Gannett  48,993b  737,835 
Gap  89,189  2,072,752 
Genuine Parts  32,194  1,728,818 
Goodyear Tire & Rubber  51,381a  932,565 
H&R Block  62,215  1,075,697 
Harley-Davidson  49,510  1,844,743 
Harman International Industries  14,275  692,766 
Hasbro  28,842  1,350,959 
Home Depot  335,310  12,453,413 
International Game Technology  60,106  1,063,275 

 

The Fund  7 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Consumer Discretionary (continued)     
Interpublic Group of Cos.  100,407  1,179,782 
J.C. Penney  48,392  1,860,672 
Johnson Controls  138,557  5,680,837 
Kohl’s  60,046  3,165,025 
Leggett & Platt  30,818  810,205 
Lennar, Cl. A  32,922b  625,189 
Limited Brands  55,591  2,288,126 
Lowe’s  282,042  7,403,603 
Macy’s  87,042  2,081,174 
Marriott International, Cl. A  59,059  2,084,783 
Mattel  74,600  1,993,312 
McDonald’s  214,338  16,784,809 
McGraw-Hill  64,233  2,599,510 
Netflix  9,006a  2,095,426 
Newell Rubbermaid  59,038  1,125,264 
News, Cl. A  469,925  8,374,064 
NIKE, Cl. B  78,127  6,431,415 
Nordstrom  34,873  1,658,211 
O’Reilly Automotive  28,239a  1,667,795 
Omnicom Group  58,502  2,877,713 
Polo Ralph Lauren  13,426  1,755,718 
Priceline.com  10,017a  5,479,399 
Pulte Group  71,703a  582,945 
RadioShack  22,502  355,757 
Ross Stores  24,456  1,802,163 
Scripps Networks Interactive, Cl. A  19,173  985,876 
Sears Holdings  8,851a,b  760,920 
Stanley Black & Decker  34,244  2,487,827 
Staples  147,385  3,115,719 
Starbucks  151,314  5,476,054 
Starwood Hotels & Resorts Worldwide  38,501c  2,293,505 
Target  145,557  7,146,849 
Tiffany & Co.  25,860  1,795,718 
Time Warner  224,574  8,502,372 
Time Warner Cable  70,605  5,516,369 
TJX  80,744  4,329,493 

 

8


 

Common Stocks (continued)  Shares  Value ($) 
Consumer Discretionary (continued)     
Urban Outfitters  26,461a  832,463 
VF  18,007  1,810,784 
Viacom, Cl. B  124,176  6,352,844 
Walt Disney  389,957  16,807,147 
Washington Post, Cl. B  1,244b  542,260 
Whirlpool  15,588  1,343,374 
Wyndham Worldwide  35,279  1,221,006 
Wynn Resorts  15,535  2,285,975 
Yum! Brands  95,654  5,130,881 
    271,064,798 
Consumer Staples—10.4%     
Altria Group  429,607  11,530,652 
Archer-Daniels-Midland  131,160  4,855,543 
Avon Products  88,444  2,598,485 
Brown-Forman, Cl. B  21,177  1,521,779 
Campbell Soup  39,521b  1,327,510 
Clorox  28,588  1,991,440 
Coca-Cola  471,350  31,797,271 
Coca-Cola Enterprises  68,565  1,947,932 
Colgate-Palmolive  101,386  8,551,909 
ConAgra Foods  91,892  2,246,759 
Constellation Brands, Cl. A  37,119a  831,094 
Costco Wholesale  89,045  7,205,521 
CVS Caremark  279,570  10,131,617 
Dean Foods  36,647a  410,080 
Dr. Pepper Snapple Group  47,226  1,851,259 
Estee Lauder, Cl. A  23,191  2,249,527 
General Mills  130,700  5,042,406 
H.J. Heinz  64,787  3,319,038 
Hershey  32,159  1,855,896 
Hormel Foods  29,328  862,536 
J.M. Smucker  24,547  1,842,743 
Kellogg  52,129  2,985,428 
Kimberly-Clark  83,766  5,533,582 
Kraft Foods, Cl. A  357,337  11,999,376 
Kroger  130,894  3,182,033 

 

The Fund  9 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Consumer Staples (continued)     
Lorillard  30,672  3,266,568 
McCormick & Co.  27,263  1,339,159 
Mead Johnson Nutrition  42,093  2,815,180 
Molson Coors Brewing, Cl. B  31,401  1,530,799 
PepsiCo  325,788  22,443,535 
Philip Morris International  369,167  25,634,956 
Procter & Gamble  575,150  37,327,235 
Reynolds American  69,161  2,566,565 
Safeway  76,165  1,851,571 
Sara Lee  131,073  2,516,602 
SUPERVALU  45,281b  509,864 
SYSCO  120,006  3,469,373 
Tyson Foods, Cl. A  61,686  1,227,551 
Wal-Mart Stores  401,094  22,052,148 
Walgreen  190,390  8,133,461 
Whole Foods Market  30,529  1,916,000 
    266,271,983 
Energy—13.0%     
Anadarko Petroleum  101,319  7,998,122 
Apache  78,154  10,423,399 
Baker Hughes  89,078  6,895,528 
Cabot Oil & Gas  22,338  1,257,183 
Cameron International  50,291a  2,651,341 
Chesapeake Energy  134,382  4,524,642 
Chevron  412,154  45,106,134 
ConocoPhillips  293,889  23,196,659 
Consol Energy  45,313  2,450,980 
Denbury Resources  81,684a  1,843,608 
Devon Energy  87,743  7,984,613 
Diamond Offshore Drilling  14,532b  1,102,543 
El Paso  145,271  2,819,710 
EOG Resources  54,983  6,208,130 
EQT  29,591  1,556,783 
Exxon Mobil  1,018,918  89,664,784 
FMC Technologies  48,982a  2,276,683 
Halliburton  186,697  9,424,465 

 

10


 

Common Stocks (continued)  Shares  Value ($) 
Energy (continued)     
Helmerich & Payne  21,812  1,447,008 
Hess  61,260  5,265,910 
Marathon Oil  145,076  7,839,907 
Massey Energy  21,091b  1,439,250 
Murphy Oil  39,508  3,061,080 
Nabors Industries  57,861a  1,772,861 
National Oilwell Varco  85,752  6,576,321 
Newfield Exploration  27,563a  1,951,460 
Noble  53,001  2,279,573 
Noble Energy  35,748  3,441,460 
Occidental Petroleum  166,314  19,008,027 
Peabody Energy  55,746  3,724,948 
Pioneer Natural Resources  23,789  2,431,949 
QEP Resources  36,916  1,577,421 
Range Resources  31,915  1,801,602 
Rowan  25,897a  1,079,905 
Schlumberger  279,355  25,072,111 
Southwestern Energy  71,146a  3,120,464 
Spectra Energy  132,148  3,837,578 
Sunoco  25,144  1,072,643 
Tesoro  29,332a  795,484 
Valero Energy  116,358  3,292,931 
Williams  119,396  3,960,365 
    333,235,565 
Financial—15.4%     
ACE  69,500  4,673,875 
Aflac  97,462  5,476,390 
Allstate  110,376  3,735,124 
American Express  214,196  10,512,740 
American International Group  27,864a,b  867,964 
Ameriprise Financial  51,494  3,195,718 
AON  68,025  3,548,864 
Apartment Investment & Management, Cl. A  23,959c  645,935 
Assurant  22,218  882,055 
AvalonBay Communities  17,114c  2,166,804 
Bank of America  2,078,283  25,521,315 

 

The Fund  11 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Financial (continued)     
Bank of New York Mellon  253,614  7,344,661 
BB&T  141,963  3,821,644 
Berkshire Hathaway, Cl. B  355,454a  29,609,318 
BlackRock  19,594  3,839,248 
Boston Properties  29,273c  3,059,907 
Capital One Financial  93,700  5,128,201 
CB Richard Ellis Group, Cl. A  59,788a  1,596,937 
Charles Schwab  201,357  3,686,847 
Chubb  60,736  3,959,380 
Cincinnati Financial  33,929  1,074,871 
Citigroup  5,966,772a  27,387,483 
CME Group  13,778  4,075,119 
Comerica  35,706  1,354,328 
Discover Financial Services  111,904  2,779,695 
E*TRADE Financial  45,334a  736,224 
Equity Residential Properties Trust  60,335c  3,603,206 
Federated Investors, Cl. B  18,394b  474,197 
Fifth Third Bancorp  189,494  2,514,585 
First Horizon National  53,950  590,752 
Franklin Resources  29,925  3,863,916 
Genworth Financial, Cl. A  100,507a  1,225,180 
Goldman Sachs Group  106,850  16,135,419 
Hartford Financial Services Group  91,685  2,656,114 
HCP  75,524c  2,992,261 
Health Care REIT  34,854b,c  1,874,100 
Host Hotels & Resorts  139,629c  2,484,000 
Hudson City Bancorp  108,709  1,035,997 
Huntington Bancshares  176,659  1,199,515 
IntercontinentalExchange  15,081a  1,814,998 
Invesco  96,103  2,390,082 
Janus Capital Group  33,818  411,565 
JPMorgan Chase & Co.  817,730  37,313,020 
KeyCorp  174,327  1,511,415 
Kimco Realty  83,314b,c  1,627,956 
Legg Mason  30,843  1,145,817 
Leucadia National  40,624  1,570,524 

 

12


 

Common Stocks (continued)  Shares  Value ($) 
Financial (continued)     
Lincoln National  65,441  2,043,722 
Loews  64,402  2,850,433 
M&T Bank  24,686  2,181,502 
Marsh & McLennan  111,694  3,382,094 
Marshall & Ilsley  106,478  869,925 
MetLife  215,804  10,097,469 
Moody’s  40,802  1,596,990 
Morgan Stanley  317,294  8,297,238 
Nasdaq OMX Group  27,969a  757,960 
Northern Trust  50,197  2,509,348 
NYSE Euronext  52,949  2,120,607 
People’s United Financial  77,351  1,058,935 
Plum Creek Timber  33,812c  1,456,959 
PNC Financial Services Group  107,458  6,698,932 
Principal Financial Group  64,734  2,184,773 
Progressive  135,075  2,963,546 
ProLogis Trust  116,959c  1,905,262 
Prudential Financial  99,170  6,289,361 
Public Storage  28,855c  3,384,980 
Regions Financial  259,480  1,904,583 
Simon Property Group  60,964c  6,982,817 
SLM  108,033  1,792,267 
State Street  103,105  4,799,538 
SunTrust Banks  102,325  2,884,542 
T. Rowe Price Group  52,595  3,379,229 
Torchmark  17,167  1,148,816 
Travelers  89,585  5,668,939 
U.S. Bancorp  392,423  10,132,362 
Unum Group  64,804  1,716,010 
Ventas  32,590b,c  1,822,759 
Vornado Realty Trust  33,573c  3,245,838 
Wells Fargo & Co.  1,081,750  31,489,743 
Weyerhaeuser  108,425c  2,494,859 
XL Group  66,015  1,612,086 
Zions Bancorporation  35,634  871,251 
    393,710,941 

 

The Fund  13 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Health Care—11.2%     
Abbott Laboratories  316,341  16,462,386 
Aetna  79,129  3,274,358 
Agilent Technologies  71,552a  3,571,160 
Allergan  62,761  4,993,265 
AmerisourceBergen  56,581  2,299,452 
Amgen  191,612a  10,893,142 
Baxter International  119,756  6,814,116 
Becton Dickinson & Co.  45,503  3,910,528 
Biogen Idec  48,952a  4,765,477 
Boston Scientific  311,589a  2,333,802 
Bristol-Myers Squibb  350,028  9,835,787 
C.R. Bard  17,526  1,870,900 
Cardinal Health  71,639  3,129,908 
CareFusion  45,783a  1,344,647 
Celgene  96,085a  5,657,485 
Cephalon  15,346a  1,178,573 
Cerner  14,011a,b  1,683,842 
CIGNA  55,515  2,599,767 
Coventry Health Care  31,125a  1,004,404 
Covidien  102,500  5,708,225 
DaVita  20,207a  1,780,035 
Dentsply International  28,804  1,081,302 
Edwards Lifesciences  23,557a  2,034,147 
Eli Lilly & Co  209,376b  7,749,006 
Express Scripts  107,680a  6,109,763 
Forest Laboratories  59,407a  1,969,936 
Gilead Sciences  163,424a  6,347,388 
Hospira  33,776a  1,916,112 
Humana  34,186  2,602,238 
Intuitive Surgical  8,055a  2,816,834 
Johnson & Johnson  562,401  36,960,994 
Laboratory Corp. of America Holdings  20,812a  2,007,734 
Life Technologies  37,674a  2,079,605 
McKesson  51,626  4,285,474 
Medco Health Solutions  83,207a  4,936,671 
Medtronic  222,136  9,274,178 

 

14


 

Common Stocks (continued)  Shares  Value ($) 
Health Care (continued)     
Merck & Co.  633,113  22,760,412 
Mylan  90,148a  2,246,488 
Patterson  19,626  681,218 
PerkinElmer  25,168  711,499 
Pfizer  1,640,270  34,380,059 
Quest Diagnostics  31,940  1,800,777 
St. Jude Medical  67,014  3,581,228 
Stryker  70,058  4,133,422 
Tenet Healthcare  99,575a  690,055 
Thermo Fisher Scientific  81,126a  4,866,749 
UnitedHealth Group  226,299  11,140,700 
Varian Medical Systems  24,326a  1,707,685 
Waters  18,600a  1,822,800 
Watson Pharmaceuticals  25,793a  1,599,682 
WellPoint  77,273  5,933,794 
Zimmer Holdings  40,406a  2,636,492 
    287,975,701 
Industrial—11.2%     
3M  146,273  14,219,198 
Avery Dennison  22,614  943,908 
Boeing  150,859  12,035,531 
C.H. Robinson Worldwide  33,775  2,708,079 
Caterpillar  131,167  15,137,983 
Cintas  25,298  785,503 
CSX  77,024  6,061,019 
Cummins  40,372  4,851,907 
Danaher  110,822  6,121,807 
Deere & Co.  86,657  8,449,058 
Dover  38,231  2,601,237 
Dun & Bradstreet  10,081  828,456 
Eaton  68,904  3,688,431 
Emerson Electric  153,928  9,352,665 
Equifax  26,517  995,183 
Expeditors International of Washington  44,158  2,396,455 
Fastenal  30,360b  2,036,852 
FedEx  64,697  6,189,562 

 

The Fund  15 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Industrial (continued)     
Flowserve  11,599  1,468,665 
Fluor  36,680  2,565,399 
General Dynamics  77,171  5,619,592 
General Electric  2,182,258  44,627,176 
Goodrich  25,708  2,271,816 
Honeywell International  159,970  9,794,963 
Illinois Tool Works  101,874  5,950,460 
Ingersoll-Rand  66,600  3,363,300 
Iron Mountain  41,561  1,323,718 
ITT  37,667  2,176,776 
Jacobs Engineering Group  25,915a  1,285,643 
Joy Global  21,143  2,134,386 
L-3 Communications Holdings  23,109  1,853,111 
Lockheed Martin  58,985  4,674,561 
Masco  75,565  1,014,082 
Norfolk Southern  73,199  5,466,501 
Northrop Grumman  59,936  3,812,529 
Paccar  75,458  4,007,574 
Pall  23,430  1,369,249 
Parker Hannifin  32,865  3,099,827 
Pitney Bowes  43,656b  1,072,191 
Precision Castparts  29,456  4,551,541 
Quanta Services  43,463a  942,278 
R.R. Donnelley & Sons  44,092  831,575 
Raytheon  75,680  3,674,264 
Republic Services  63,686  2,013,751 
Robert Half International  29,782  903,288 
Rockwell Automation  29,044  2,530,604 
Rockwell Collins  32,061  2,023,049 
Roper Industries  18,775  1,623,850 
Ryder System  10,401  556,454 
Snap-On  12,320  761,006 
Southwest Airlines  154,233  1,812,238 
Stericycle  17,820a  1,626,610 
Textron  56,010b  1,461,861 
Tyco International  97,400  4,747,276 

 

16


 

Common Stocks (continued)  Shares  Value ($) 
Industrial (continued)     
Union Pacific  100,859  10,435,881 
United Parcel Service, Cl. B  202,390  15,173,178 
United Technologies  188,990  16,929,724 
W.W. Grainger  11,826  1,792,822 
Waste Management  97,616  3,851,927 
    286,597,530 
Information Technology—18.0%     
Adobe Systems  104,545a  3,507,485 
Advanced Micro Devices  117,196a  1,066,484 
Akamai Technologies  37,540a  1,292,878 
Altera  65,657  3,197,496 
Amphenol, Cl. A  35,468  1,983,016 
Analog Devices  60,868  2,453,589 
Apple  189,174a  65,876,062 
Applied Materials  274,291  4,303,626 
Autodesk  46,453a  2,089,456 
Automatic Data Processing  100,700  5,473,045 
BMC Software  36,043a  1,810,440 
Broadcom, Cl. A  97,567a  3,432,407 
CA  79,710  1,960,069 
Cisco Systems  1,134,875  19,928,405 
Citrix Systems  38,688a  3,262,946 
Cognizant Technology Solutions, Cl. A  61,951a  5,135,738 
Computer Sciences  31,230  1,592,105 
Compuware  45,674a  517,486 
Corning  322,355  6,750,114 
Dell  342,817a  5,317,092 
eBay  235,910a  8,115,304 
Electronic Arts  66,893a  1,349,901 
EMC  424,753a  12,037,500 
F5 Networks  16,570a  1,679,535 
Fidelity National Information Services  54,944  1,818,646 
First Solar  11,118a,b  1,551,739 
Fiserv  30,433a  1,865,847 
FLIR Systems  31,547  1,111,085 
Google, Cl. A  51,494a  28,017,885 

 

The Fund  17 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
Harris  26,070  1,385,099 
Hewlett-Packard  447,288  18,057,017 
Intel  1,127,654  26,150,296 
International Business Machines  250,612  42,749,395 
Intuit  57,253a  3,180,977 
Jabil Circuit  39,666  786,973 
JDS Uniphase  43,212a  900,538 
Juniper Networks  109,810a  4,209,017 
KLA-Tencor  34,089  1,496,507 
Lexmark International, Cl. A  16,412a  529,287 
Linear Technology  45,786  1,593,353 
LSI  133,817a  980,879 
MasterCard, Cl. A  19,812  5,465,933 
MEMC Electronic Materials  47,395a  560,683 
Microchip Technology  38,543b  1,581,805 
Micron Technology  176,204a  1,989,343 
Microsoft  1,519,442  39,535,881 
Molex  27,651b  746,577 
Monster Worldwide  26,844a  440,510 
Motorola Mobility Holdings  60,029a  1,564,356 
Motorola Solutions  68,605a  3,147,597 
National Semiconductor  47,055  1,134,967 
NetApp  75,515a  3,925,270 
Novellus Systems  18,809a  603,769 
NVIDIA  118,032a  2,360,640 
Oracle  798,824  28,797,605 
Paychex  65,425  2,140,052 
QUALCOMM  337,442  19,180,203 
Red Hat  39,527a  1,876,347 
SAIC  59,894a  1,042,156 
Salesforce.com  24,186a  3,352,180 
SanDisk  48,210a  2,369,039 
Symantec  161,241a  3,168,386 
Tellabs  79,975  393,477 
Teradata  33,932a  1,897,477 
Teradyne  37,237a  599,516 

 

18


 

Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
Texas Instruments  241,389  8,576,551 
Total System Services  34,814  656,244 
VeriSign  36,312  1,342,092 
Visa, Cl. A  99,608  7,781,377 
Western Digital  46,414a  1,847,277 
Western Union  134,547  2,859,124 
Xerox  284,387  2,869,465 
Xilinx  53,903  1,879,059 
Yahoo!  266,016a  4,721,784 
    460,923,461 
Materials—3.6%     
Air Products & Chemicals  44,005  4,203,358 
Airgas  15,521  1,077,933 
AK Steel Holding  24,144  392,340 
Alcoa  218,078  3,707,326 
Allegheny Technologies  20,089  1,446,408 
Ball  36,743  1,370,881 
Bemis  21,028  659,017 
CF Industries Holdings  14,301  2,024,306 
Cliffs Natural Resources  27,805  2,605,885 
Dow Chemical  239,802  9,829,484 
E.I. du Pont de Nemours & Co.  189,242  10,747,053 
Eastman Chemical  15,185  1,628,591 
Ecolab  47,500  2,506,100 
FMC  14,279  1,260,550 
Freeport-McMoRan Copper & Gold  194,344  10,694,750 
International Flavors & Fragrances  16,288  1,034,614 
International Paper  88,547  2,734,331 
MeadWestvaco  35,203  1,185,989 
Monsanto  110,274  7,503,043 
Newmont Mining  101,296  5,936,959 
Nucor  65,674b  3,084,051 
Owens-Illinois  34,835a  1,033,554 
PPG Industries  33,994  3,218,212 
Praxair  62,590  6,660,828 
Sealed Air  32,491  837,293 

 

The Fund  19 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Materials (continued)     
Sherwin-Williams  18,620  1,532,240 
Sigma-Aldrich  25,262  1,782,992 
Titanium Metals  16,877a  338,046 
United States Steel  29,675b  1,415,794 
Vulcan Materials  25,219b  1,139,899 
    93,591,827 
Telecommunication Services—3.0%     
American Tower, Cl. A  81,919a  4,285,183 
AT&T  1,213,938  37,777,750 
CenturyLink  122,013  4,975,690 
Frontier Communications  206,566  1,708,301 
Metropcs Communications  52,736a  887,547 
Sprint Nextel  615,520a  3,188,394 
Verizon Communications  578,705  21,863,475 
Windstream  99,542  1,275,133 
    75,961,473 
Utilities—3.2%     
AES  138,461a  1,833,224 
Ameren  47,292  1,386,128 
American Electric Power  97,396  3,553,006 
CenterPoint Energy  85,700  1,594,020 
CMS Energy  47,987  950,143 
Consolidated Edison  60,163  3,135,695 
Constellation Energy Group  41,729  1,519,770 
Dominion Resources  119,480  5,546,262 
DTE Energy  33,654  1,700,537 
Duke Energy  273,086  5,093,054 
Edison International  67,687  2,658,068 
Entergy  37,579  2,620,008 
Exelon  135,884  5,727,511 
FirstEnergy  87,209  3,484,872 
Integrys Energy Group  16,312  854,096 

 

20


 

Common Stocks (continued)  Shares  Value ($) 
Utilities (continued)     
NextEra Energy  86,138  4,872,827 
Nicor  9,670  536,008 
NiSource  58,649  1,140,723 
Northeast Utilities  36,026  1,282,526 
NRG Energy  53,049a  1,283,786 
ONEOK  21,529  1,505,738 
Pepco Holdings  45,045  868,017 
PG&E  80,772  3,721,974 
Pinnacle West Capital  21,331  925,552 
PPL  115,843  3,177,573 
Progress Energy  60,497  2,870,583 
Public Service Enterprise Group  103,124  3,317,499 
SCANA  22,994  954,711 
Sempra Energy  49,245  2,713,400 
Southern  172,026  6,715,895 
TECO Energy  45,103  869,135 
Wisconsin Energy  48,724  1,520,676 
Xcel Energy  99,013  2,408,986 
    82,342,003 
Total Common Stocks     
(cost $1,558,190,000)    2,551,675,282 
  Principal   
Short-Term Investments—.0%  Amount ($)  Value ($) 
U.S. Treasury Bills;     
0.07%, 6/16/11     
(cost $1,044,906)  1,045,000d  1,044,998 
 
Other Investment—.4%  Shares  Value ($) 
Registered Investment Company;     
Dreyfus Institutional Preferred     
Plus Money Market Fund     
(cost $11,100,000)  11,100,000e  11,100,000 

 

The Fund  21 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Investment of Cash Collateral     
for Securities Loaned—.8%  Shares  Value ($) 
Registered Investment Company;     
Dreyfus Institutional Cash     
Advantage Plus Fund     
(cost $20,883,334)  20,883,334e  20,883,334 
 
Total Investments (cost $1,591,218,240)  100.8%  2,584,703,614 
Liabilities, Less Cash and Receivables  (.8%)  (21,536,329) 
Net Assets  100.0%  2,563,167,285 

 

REIT—Real Estate Investment Trust

a  Non-income producing security. 
b  Security, or portion thereof, on loan.At April 30, 2011, the value of the fund’s securities on loan was $20,893,477 
  and the value of the collateral held by the fund was $21,327,596, consisting of cash collateral of $20,883,334 and 
  U.S. Government and Agency securities valued at $444,262. 
c  Investment in real estate investment trust. 
d  Held by a broker as collateral for open financial futures positions. 
e  Investment in affiliated money market mutual fund. 

 

Portfolio Summary (Unaudited)     
 
  Value (%)    Value (%) 
Information Technology  18.0  Materials  3.6 
Financial  15.4  Utilities  3.2 
Energy  13.0  Telecommunication Services  3.0 
Health Care  11.2  Short-Term/   
Industrial  11.2  Money Market Investments  1.2 
Consumer Discretionary  10.6     
Consumer Staples  10.4    100.8 
 
† Based on net assets.       
See notes to financial statements.       

 

22


 

STATEMENT OF FINANCIAL FUTURES

April 30, 2011 (Unaudited)

    Market Value    Unrealized  
    Covered by    Appreciation  
  Contracts  Contracts ($)  Expiration  at 4/30/2011 ($) 
Financial Futures Long           
Standard & Poor’s 500 E-mini  179  12,169,315  June 2011  385,865  
 
See notes to financial statements.           

 

The Fund  23 

 


 

STATEMENT OF ASSETS AND LIABILITIES 
April 30, 2011 (Unaudited) 

 

  Cost  Value 
Assets ($):     
Investments in securities—See Statement of Investments (including     
securities on loan, valued at $20,893,477)—Note 1(b:)     
Unaffiliated issuers  1,559,234,906  2,552,720,280 
Affiliated issuers  31,983,334  31,983,334 
Cash    1,289,213 
Dividends and interest receivable    2,689,529 
Receivable for shares of Common Stock subscribed    2,137,212 
Receivable for futures variation margin—Note 4    48,040 
    2,590,867,608 
Liabilities ($):     
Due to The Dreyfus Corporation and affiliates—Note 3(b)    1,033,682 
Liability for securities on loan—Note 1(b)    20,883,334 
Payable for shares of Common Stock redeemed    4,092,477 
Payable for investment securities purchased    1,674,330 
Loan commitment fees payable—Note 2    16,500 
    27,700,323 
Net Assets ($)    2,563,167,285 
Composition of Net Assets ($):     
Paid-in capital    1,611,298,990 
Accumulated undistributed investment income—net    9,467,929 
Accumulated net realized gain (loss) on investments    (51,470,873) 
Accumulated net unrealized appreciation (depreciation) on     
investments (including $385,865 net unrealized     
appreciation on financial futures)    993,871,239 
Net Assets ($)    2,563,167,285 
Shares Outstanding     
(200 million shares of $.001 par value Common Stock authorized)    68,070,213 
Net Asset Value, offering and redemption price per share ($)    37.65 
 
See notes to financial statements.     

 

24


 

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2011 (Unaudited)

Investment Income ($):   
Income:   
Cash dividends (net of $629 foreign taxes withheld at source):   
Unaffiliated issuers  24,455,354 
Affiliated issuers  21,356 
Income from securities lending—Note 1(b)  67,304 
Interest  1,283 
Total Income  24,545,297 
Expenses:   
Management fee—Note 3(a)  3,055,740 
Shareholder servicing costs—Note 3(b)  3,055,740 
Directors’ fees—Note 3(a)  61,615 
Loan commitment fees—Note 2  16,500 
Total Expenses  6,189,595 
Less—Directors’ fees reimbursed by the Manager—Note 3(a)  (61,615) 
Net Expenses  6,127,980 
Investment Income—Net  18,417,317 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):   
Net realized gain (loss) on investments  (5,026,011) 
Net realized gain (loss) on financial futures  3,556,033 
Net Realized Gain (Loss)  (1,469,978) 
Net unrealized appreciation (depreciation) on investments  348,795,757 
Net unrealized appreciation (depreciation) on financial futures  99,933 
Net Unrealized Appreciation (Depreciation)  348,895,690 
Net Realized and Unrealized Gain (Loss) on Investments  347,425,712 
Net Increase in Net Assets Resulting from Operations  365,843,029 
 
See notes to financial statements.   

 

The Fund  25 

 


 

STATEMENT OF CHANGES IN NET ASSETS

  Six Months Ended   
  April 30, 2011  Year Ended 
  (Unaudited)  October 31, 2010 
Operations ($):     
Investment income—net  18,417,317  35,571,695 
Net realized gain (loss) on investments  (1,469,978)  105,997,529 
Net unrealized appreciation     
(depreciation) on investments  348,895,690  199,240,314 
Net Increase (Decrease) in Net Assets     
Resulting from Operations  365,843,029  340,809,538 
Dividends to Shareholders from ($):     
Investment income—net  (34,804,799)  (38,533,901) 
Net realized gain on investments  (51,832,641)   
Total Dividends  (86,637,440)  (38,533,901) 
Capital Stock Transactions ($):     
Net proceeds from shares sold  280,975,321  485,529,471 
Dividends reinvested  84,742,937  37,789,348 
Cost of shares redeemed  (409,628,581)  (736,607,359) 
Increase (Decrease) in Net Assets     
from Capital Stock Transactions  (43,910,323)  (213,288,540) 
Total Increase (Decrease) in Net Assets  235,295,266  88,987,097 
Net Assets ($):     
Beginning of Period  2,327,872,019  2,238,884,922 
End of Period  2,563,167,285  2,327,872,019 
Undistributed investment income—net  9,467,929  25,855,411 
Capital Share Transactions (Shares):     
Shares sold  7,889,756  15,329,187 
Shares issued for dividends reinvested  2,446,143  1,196,255 
Shares redeemed  (11,501,169)  (23,322,185) 
Net Increase (Decrease) in Shares Outstanding  (1,165,270)  (6,796,743) 
 
See notes to financial statements.     

 

26


 

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, 2011       Year Ended October 31,      
  (Unaudited)   2010   2009   2008   2007   2006  
Per Share Data ($):                         
Net asset value,                           
beginning of period  33.62   29.45   27.66   44.18   40.57   35.50  
Investment Operations:                         
Investment income—neta  .27   .49   .53   .66   .61   .54  
Net realized and                           
unrealized gain                           
(loss) on investments  5.03   4.19   1.93   (16.51 )  4.90   5.01  
Total from                           
Investment Operations  5.30   4.68   2.46   (15.85 )  5.51   5.55  
Distributions:                           
Dividends from                           
investment income—net  (.51 )  (.51 )  (.67 )  (.67 )  (.56 )  (.48 ) 
Dividends from net realized                         
gain on investments  (.76 )        (1.34 )   
Total Distributions    (1.27 )  (.51 )  (.67 )  (.67 )  (1.90 )  (.48 ) 
Net asset value,                           
end of period    37.65   33.62   29.45   27.66   44.18   40.57  
Total Return (%)    16.12 b  16.02   9.42   (36.38 )  14.05   15.79  
Ratios/Supplemental                         
Data (%):                           
Ratio of total expenses                         
to average net assets  .51 c  .51   .51   .51   .51   .50  
Ratio of net expenses                         
to average net assets  .50 c  .50   .50   .50   .50   .50  
Ratio of net investment                         
income to average                         
net assets    1.51 c  1.55   2.06   1.77   1.47   1.45  
Portfolio Turnover Rate  1.96 b  5.45   4.36   4.95   4.71   5.04  
Net Assets,                           
end of period                           
($ x 1,000)  2,563,167   2,327,872   2,238,885   2,090,178   3,735,372   3,656,990  

 

a  Based on average shares outstanding at each month end. 
b  Not annualized. 
c  Annualized. 

 

See notes to financial statements.

The Fund  27 

 


 

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”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities 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 Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Company 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

28


 

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. U.S.Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service approved by the Board of Directors. Registered investment companies that are not traded on an exchange 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 American Depository Receipts 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.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active

The Fund  29 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

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

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

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

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

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of April 30, 2011 in valuing the fund’s investments:

    Level 2—Other  Level 3—   
  Level 1—  Significant  Significant   
  Unadjusted  Observable  Unobservable   
  Quoted Prices  Inputs  Inputs  Total 
Assets ($)         
Investments in Securities:       
Equity Securities—         
Domestic  2,551,675,282      2,551,675,282 
Mutual Funds  31,983,334      31,983,334 
U.S. Treasury    1,044,998    1,044,998 
Other Financial         
Instruments:         
Futures††  385,865      385,865 

 

  See Statement of Investments for additional detailed categorizations. 
††  Amount shown represents unrealized appreciation at period end. 

 

30


 

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about FairValue Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at April 30, 2011.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement withThe Bank of NewYork Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Manager, U.S. Government and Agency securities or letters of credit.The fund is 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 bears 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. During the period ended April 30, 2011,The Bank of New York Mellon earned $28,845 from lending portfolio securities, pursuant to the securities lending agreement.

The Fund  31 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended April 30, 2011 were as follows:

Affiliated               
Investment  Value       Value   Net 
Company  10/31/2010 ($)  Purchases ($)  Sales ($)  4/30/2011 ($)  Assets (%) 
Dreyfus               
Institutional               
Preferred               
Plus Money               
Market Fund  4,865,000   182,581,000  176,346,000  11,100,000   .4 
Dreyfus               
Institutional               
Cash               
Advantage               
Plus Fund  51,226,301   65,602,966  95,945,933  20,883,334   .8 
Total  56,091,301   248,183,966  272,291,933  31,983,334   1.2 

 

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

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

32


 

As of and during the period ended April 30, 2011, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the three-year period ended October 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2010 was as follows: ordinary income $38,533,901. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended April 30, 2011, the fund did not borrow under the Facilities.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .25% of the value of the fund’s average daily net assets and is payable monthly.

The Fund  33 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Under the terms of the Agreement, the Manager has agreed to pay all the expenses of the fund, except management fees, brokerage fees and commissions, taxes, interest fees, 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 the accrued 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. Annual retainer fees and attendance fees are allocated to each fund based on net assets. During the period ended April 30, 2011, fees reimbursed by the Manager amounted to $61,615.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services, at the annual rate of .25% 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, 2011, the fund was charged $3,055,740 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 $516,841 and shareholder services plan fees $516,841.

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, 2011, amounted to $47,772,402 and $157,861,359, respectively.

34


 

Futures Contracts: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk as a result of changes in value of underlying financial instruments.The fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market.A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a 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. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded. When the contracts are closed, the fund recognizes a realized gain or loss. There is minimal counterparty credit risk to the fund with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default. Contracts open at April 30, 2011 are set forth in the Statement of Financial Futures.

The following summarizes the average market value of derivatives outstanding during the period ended April 30, 2011:

  Average Market Value ($) 
Equity future contracts  24,542,809 

 

At April 30, 2011, accumulated net unrealized appreciation on investments was $993,485,374, consisting of $1,156,301,079 gross unrealized appreciation and $162,815,705 gross unrealized depreciation.

At April 30, 2011, 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).

The Fund  35 

 


 

INFORMATION ABOUT THE RENEWAL OF THE
FUND’S MANAGEMENT AGREEMENT (Unaudited)

At a meeting of the fund’s Board of Directors held on March 1, 2011, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”). The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of Dreyfus. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below. In evaluating the Agreement, the Board members relied on their knowledge, gained through their meetings and other interactions with Dreyfus, its affiliates, the fund, and the services provided to the fund.The Board also relied on materials regularly received throughout the year relating to the investment management and other services provided under the Agreement, including (a) information on the investment performance of the fund in comparison to similar mutual funds and benchmark performance indices; (b) general investment outlooks in the markets in which the fund invests; (c) compliance reports; and (d) fund expenses.The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board members considered information previously provided to them in presentations from representatives of Dreyfus regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex, and representatives of Dreyfus confirmed that there had been no material changes in this information. Dreyfus’ representatives reviewed the fund’s distribution of accounts and the relationships Dreyfus has with various intermediaries and the different needs of each. Dreyfus’ representatives noted the various distribution channels for the fund as well as the diverse methods of distribution among other funds in the Dreyfus fund complex, and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including those of the fund.

36


 

Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels.

The Board members also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus 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 Dreyfus’ extensive administrative, accounting, and compliance infrastructures.The Board also considered portfolio management’s brokerage policies and practices (including policies and practices regarding soft dollars) and the standards applied in seeking best execution.

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board members reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended December 31, 2010, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of October 31, 2010. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds.The Board members discussed the results of the comparisons and noted that the fund’s total return performance was below the Performance Group median and variously at and slightly below the

The Fund  37 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S
MANAGEMENT AGREEMENT (Unaudited) (continued)

Performance Universe median for the various periods and that there was only a few basis points difference between the fund’s performance and the Performance Universe median when performance was below the median. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index.

The Board members also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons. Taking into consideration the fund’s “unitary fee” structure, they noted that the fund’s contractual management fee was above the Expense Group median and the fund’s actual management fee and total expenses were above the Expense Group and Expense Universe medians.

Management noted that, pursuant to the fund’s Agreement, Dreyfus pays all of the fund’s expenses, except management fees, shareholder services fees, and certain other expenses, including the fees and expenses of the independent Board members and their counsel. Additionally, Dreyfus voluntarily has agreed to reduce its management fee in an amount equal to the fees and expenses of the independent Board members and their counsel.

Representatives of Dreyfus reviewed with the Board members the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients. They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors, noting the fund’s “unitary” fee structure. The Board members considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

38


 

Representatives of Dreyfus noted that mutual fund shares can be sold through different types of distribution channels, including retail direct, intermediary and separate accounts, and that this fund is sold primarily through the intermediary channel in which the intermediaries are paid for their services through a shareholder servicing fee and/or revenue sharing payments. The Board reviewed differences in fees paid to Dreyfus and discussed the relationship of the advisory fees and other fees paid in light of the services provided. The Board acknowledged that differences in fees paid by the Similar Clients and the fund seemed to be consistent with the services provided, which were described in detail in materials previously provided to the Board.

Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the expenses allocated and profit received by Dreyfus and the resulting profitability percentage for managing the fund, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex. The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Board’s counsel stated that the Board members should consider the profitability analysis (1) as part of their evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that, as a result of shared and allocated costs among funds in the Dreyfus

The Fund  39 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S
MANAGEMENT AGREEMENT (Unaudited) (continued)

funds complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board members also considered potential benefits to Dreyfus from acting as investment adviser and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

  • The Board concluded that the nature, extent and quality of the services provided by Dreyfus are adequate and appropriate.

  • The Board generally was satisfied with the fund’s overall perfor- mance, in light of the considerations described above.

  • The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.

  • The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

40


 

The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year. In addition, it should be noted that the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board members and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board members’ conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years. The Board members determined that renewal of the Agreement was in the best interests of the fund and its shareholders.

The Fund  41 

 


 

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  MBSC Securities Corporation 
New York, NY 10166  200 Park Avenue 
Custodian  New York, NY 10166 
The Bank of New York Mellon   
One Wall Street   
New York, NY 10286   

 

Ticker Symbol: PEOPX

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 most recent 12-month period ended June 30 is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.


© 2011 MBSC Securities Corporation 

 


 

Dreyfus

Smallcap

Stock Index Fund

SEMIANNUAL REPORT April 30, 2011



 

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     

A Letter from the Chairman and CEO

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

26     

Statement of Financial Futures

27     

Statement of Assets and Liabilities

28     

Statement of Operations

29     

Statement of Changes in Net Assets

30     

Financial Highlights

31     

Notes to Financial Statements

40     

Information About the Renewal of the Fund’s Management Agreement

 

FOR MORE INFORMATION

 

Back Cover


 

Dreyfus 
Smallcap Stock Index Fund 

 

The Fund


A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Smallcap Stock Index Fund, covering the six-month period from November 1, 2010, through April 30, 2011.

Multiple crosscurrents have influenced the global and U.S. economies.A modest slowdown in the middle quarters of 2010 gave way to renewed strength by early 2011.The recovery has been fueled by three important characteristics. First, macroeconomic policy has been stimulative in the United States and most of the world. Second, in response to inflation worries emerging countries have shifted policy from aggressively stimulative to neutral, but not restrictive, supporting ongoing demand for commodities. Third, corporate balance sheets around the world have strengthened due to cheap bond financing, rising profits and relatively slow growth in corporate spending. Although shocks emanating from events in the Middle East and Japan presented potential headwinds, U.S. equities generally rallied as investors increasingly recognized that otherwise positive forces would prevent a double-dip recession.

We expect the U.S. economy to continue to expand at a moderate rate, which generally should be good for stocks. However, in the wake of recent gains we believe that selectivity will become more impor-tant.We favor companies with higher growth potential, and we are also optimistic about the prospects of high-quality companies capable of generating dividend increases and share buybacks. As always, your financial advisor can help you align your investment portfolio with the opportunities and challenges that the future may have in store.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.


Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
May 16, 2011

2


 


DISCUSSION OF FUND PERFORMANCE

For the period of November 1, 2010, through April 30, 2011, Thomas J. Durante, CFA, Karen Q.Wong and Richard A. Brown, Portfolio Managers

Fund and Market Performance Overview

For the six-month period ended April 30, 2011, Dreyfus Smallcap Stock Index Fund produced a total return of 23.06%.1 In comparison, the Standard & Poor’s SmallCap 600 Index (the “S&P 600 Index”), the fund’s benchmark, produced a 23.22% return for the same period.2,3

Small-cap stocks rallied during much of the reporting period as an economic recovery gained traction, commodity prices moved higher and corporate earnings grew. Results were particularly attractive in the information technology, health care and industrials sectors.The difference in returns between the fund and the S&P 600 Index was primarily the result of transaction costs and operating expenses that are not reflected in the S&P 600 Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the S&P 600 Index by generally investing in a representative sample of the stocks listed in the S&P 600 Index. 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.

Stocks Rallied as the U.S. Economy Gained Momentum

Investor sentiment improved dramatically in the weeks before the start of the reporting period, when a new round of quantitative easing of U.S. monetary policy from the Federal Reserve Board helped convince investors that the economy was unlikely to slip back into recession. A more optimistic investment outlook was reinforced by improvements in employment and consumer spending, as well as better-than-expected corporate earnings across a number of industry groups. Later in the fall,

The Fund  3 

 


 

DISCUSSION OF FUND PERFORMANCE (continued)

the end of uncertainty surrounding national midterm elections and the passage of fiscally stimulative tax legislation lent further support to stock prices.

Improving global economic conditions also supported U.S. stocks. Investor confidence was buoyed by encouraging economic data in Europe and robust demand in the emerging markets for industrial commodities and equipment.

The market rally was interrupted in February when a wave of political unrest in the Middle East led to sharply higher crude oil prices, and again in March when a devastating earthquake, tsunami and nuclear disaster in Japan threatened one of the world’s largest economies. However, investors proved resilient, and the U.S. stock market bounced back by the reporting period’s end. Small-cap stocks generally produced higher returns than their large-cap counterparts, and growth stocks typically outperformed value stocks.

Technology Stocks Led the Market’s Advance

The information technology sector ranked as the S&P 600 Index’s top performing sector during the reporting period. Certain semiconductor manufacturers specializing in touchscreen technologies prospered as the popularity of smartphones and tablet computers soared, and some software developers gained value due to rising orders from businesses and government entities seeking to manage their resources more effectively. Video game developers generally fared well as consumers’ disposable incomes improved in the recovering economy.

In the health care sector, health maintenance organizations (HMOs) boosted profit margins after cutting costs during the economic downturn, magnifying the impact of subscriber growth on earnings during the recovery. Some small-cap biotechnology firms received favorable rulings on new products from federal regulators, bolstering their market values.

Strong demand for equipment used in oil and gas production and wastewater treatment by large energy companies helped drive the prices of some small-cap industrial companies higher, and the sector

4


 

was further bolstered by robust demand for certain components used in defense and telecommunications systems.

The energy sector also produced above-average absolute returns as commodity prices climbed, but its relatively small size in the S&P 600 Index limited its impact on the fund’s overall performance.

Laggards during the reporting period included the financials sector, where smaller banks continued to struggle amid persistent weakness in U.S. housing markets.The telecommunications, utilities and consumer staples sector produced positive absolute returns, but they trailed market averages as investors turned to more speculative investments in a rallying market.

Index Funds Offer Diversification Benefits

As an index portfolio, our strategy is to attempt to replicate the returns of the S&P 600 Index by investing in a representative sample of the small-cap stocks listed in the S&P 600 Index.The fund offers a diversified investment vehicle that can help investors manage the risks of investing in small-cap stocks by limiting the impact on the overall portfolio of unexpected losses in any single industry group or holding.

May 16, 2011

  Equity funds are subject generally to market, market sector, market liquidity, issuer and investment 
  style risks, among other factors, to varying degrees, all of which are more fully described in the 
  fund’s prospectus. Stocks of small-cap companies often experience sharper price fluctuations than 
  stocks of larger-cap companies. 
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. 
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. Investors 
  cannot invest directly in any index. 
3  “Standard & Poor’s®,” “S&P®,” and “S&P SmallCap 600®” are registered trademarks of 
  Standard & Poor’s Financial Services LLC, and have been licensed for use on behalf of the fund. 
  The fund is not sponsored, managed, advised, sold or promoted by Standard & Poor’s and its 
  affiliates and Standard & Poor’s and its affiliates make no representation regarding the advisability 
  of investing in the fund. 

 

The Fund  5 

 


 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) 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, 2010 to April 30, 2011. 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, 2011

Expenses paid per $1,000  $ 2.77 
Ending value (after expenses)  $ 1,230.60 

 

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, 2011

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, 2011 (Unaudited)

Common Stocks—98.4%  Shares  Value ($) 
Consumer Discretionary—13.9%     
American Public Education  40,666a  1,718,138 
Arbitron  65,933  2,550,288 
Arctic Cat  27,687a  464,865 
Audiovox, Cl. A  48,992a  361,561 
Big 5 Sporting Goods  46,114  551,062 
Biglari Holdings  2,550a  1,114,962 
BJ’s Restaurants  50,874a  2,388,534 
Blue Nile  30,806a  1,755,942 
Blyth  12,616  594,718 
Brown Shoe  111,306  1,408,021 
Brunswick  193,615  4,524,783 
Buckle  49,715b  2,261,535 
Buffalo Wild Wings  41,077a  2,509,805 
Cabela’s  80,768a  2,062,815 
California Pizza Kitchen  58,401a  934,416 
Callaway Golf  92,618  655,735 
Capella Education  35,013a  1,736,645 
Carter’s  121,830a  3,766,984 
Cato, Cl. A  81,035  2,067,203 
CEC Entertainment  57,265  2,166,335 
Children’s Place Retail Stores  64,758a  3,443,183 
Christopher & Banks  79,127  486,631 
Coinstar  80,836a  4,363,527 
Corinthian Colleges  108,969a  484,912 
Cracker Barrel Old Country Store  56,976  2,918,880 
CROCS  213,777a  4,299,055 
DineEquity  31,744a  1,586,248 
Drew Industries  34,192  823,001 
E.W. Scripps, Cl. A  99,006a  940,557 
Ethan Allen Interiors  68,121  1,641,035 
Finish Line, Cl. A  127,260  2,734,817 
Fred’s, Cl. A  92,219  1,287,377 
Genesco  58,830a  2,375,555 
Group 1 Automotive  52,525  2,260,676 
Haverty Furniture  28,942  379,140 

 

The Fund  7 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Consumer Discretionary (continued)     
Helen of Troy  80,949a  2,519,133 
Hibbett Sports  73,077a  2,760,849 
Hillenbrand  126,871  2,907,883 
Hot Topic  106,074  711,757 
HSN  80,453a  2,669,431 
Iconix Brand Group  179,131a  4,386,918 
Interval Leisure Group  77,377a  1,243,448 
Jack in the Box  118,024a  2,437,196 
JAKKS Pacific  78,377a  1,649,052 
JOS. A. Bank Clothiers  59,718a  3,130,418 
K-Swiss, Cl. A  38,118a  469,233 
Kid Brands  43,015a  314,440 
Kirkland’s  31,269a  471,849 
La-Z-Boy  105,459a  1,240,198 
Lithia Motors, Cl. A  49,075  892,674 
Live Nation  329,865a  3,658,203 
Liz Claiborne  214,496a  1,349,180 
Lumber Liquidators Holdings  42,221a,b  1,095,635 
M/I Homes  43,006a  571,550 
Maidenform Brands  56,548a  1,790,310 
Marcus  46,739  518,336 
MarineMax  50,003a  478,029 
Men’s Wearhouse  120,415  3,358,374 
Meritage Homes  64,475a  1,541,597 
Midas  23,051a  167,581 
Monarch Casino & Resort  17,578a  201,444 
Monro Muffler Brake  70,075  2,128,879 
Movado Group  39,189  654,064 
Multimedia Games Holding Company  80,390a  471,889 
NutriSystem  66,894  1,006,086 
O’Charleys  49,617a  324,495 
OfficeMax  193,160a  1,923,874 
Oxford Industries  31,942  1,097,208 
P.F. Chang’s China Bistro  60,776  2,437,118 
Papa John’s International  58,800a  1,767,528 
Peet’s Coffee & Tea  22,859a  1,062,486 

 

8


 

Common Stocks (continued)  Shares  Value ($) 
Consumer Discretionary (continued)     
PEP Boys-Manny Moe & Jack  152,066  2,083,304 
Perry Ellis International  24,744a  697,286 
PetMed Express  49,956  753,836 
Pinnacle Entertainment  133,763a  1,856,630 
Pool  112,795  3,413,177 
Pre-Paid Legal Services  17,667a  1,165,139 
Quiksilver  294,507a  1,281,105 
Red Robin Gourmet Burgers  38,055a  1,034,715 
Ruby Tuesday  154,067a  1,619,244 
Rue21  34,618a  1,042,694 
Ruth’s Hospitality Group  69,909a  343,253 
Shuffle Master  143,363a  1,566,958 
Skechers USA, Cl. A  62,979a  1,199,750 
Sonic  151,503a  1,699,864 
Sonic Automotive, Cl. A  86,760b  1,223,316 
Spartan Motors  84,289  569,794 
Stage Stores  103,654  1,996,376 
Standard Motor Products  52,014  741,200 
Standard-Pacific  185,158a,b  714,710 
Stein Mart  53,935  586,813 
Steven Madden  59,865a  3,181,825 
Sturm Ruger & Co.  59,348  1,411,295 
Superior Industries International  66,853  1,689,375 
Texas Roadhouse  157,694  2,565,681 
True Religion Apparel  62,993a  1,903,648 
Tuesday Morning  100,089a  500,445 
Universal Electronics  30,673a  849,335 
Universal Technical Institute  67,455  1,218,912 
Vitamin Shoppe  62,100a  2,423,142 
Volcom  33,292  656,851 
Winnebago Industries  60,361a  747,269 
Wolverine World Wide  116,373  4,617,681 
Zale  46,836a  172,356 
Zumiez  49,385a  1,388,212 
    169,942,477 

 

The Fund  9 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Consumer Staples—3.7%     
Alliance One International  240,548a  959,786 
Andersons  43,476  2,158,583 
B&G Foods  106,893  1,932,625 
Boston Beer, Cl. A  25,050a  2,361,213 
Cal-Maine Foods  29,253  845,119 
Calavo Growers  25,423  533,883 
Casey’s General Stores  93,988  3,668,352 
Central Garden & Pet, Cl. A  174,834a  1,751,837 
Darling International  242,011a  3,913,318 
Diamond Foods  44,545  2,922,152 
Hain Celestial Group  99,877a  3,396,817 
J & J Snack Foods  32,700  1,661,814 
Medifast  42,676a,b  842,851 
Nash Finch  28,940  1,077,147 
Prestige Brands Holdings  120,429a  1,390,955 
Sanderson Farms  33,972  1,617,067 
Seneca Foods, Cl. A  20,597a  575,892 
Snyders-Lance  95,161  1,879,430 
Spartan Stores  55,528  866,792 
TreeHouse Foods  80,708a  4,896,554 
United Natural Foods  100,655a  4,296,962 
WD-40  35,334  1,466,361 
    45,015,510 
Energy—4.9%     
Basic Energy Services  59,927a  1,842,156 
Bristow Group  82,847a  3,844,101 
Contango Oil & Gas  29,079a  1,800,572 
Georesources  43,261a  1,255,434 
Gulf Island Fabrication  30,108  1,064,017 
Gulfport Energy  86,250a  2,935,950 
Holly  103,168  5,973,427 
Hornbeck Offshore Services  48,751a,b  1,424,992 
ION Geophysical  375,319a  4,744,032 
Lufkin Industries  65,995  6,093,318 
Matrix Service  65,606a  948,663 
Penn Virginia  105,394  1,629,391 

 

10


 

Common Stocks (continued)  Shares  Value ($) 
Energy (continued)     
Petroleum Development  49,064a  1,953,728 
PetroQuest Energy  173,559a  1,520,377 
Pioneer Drilling  137,408a  2,129,824 
SEACOR Holdings  49,660  4,907,898 
Stone Energy  120,167a  4,249,105 
Swift Energy  93,695a  3,671,907 
Tetra Technologies  179,521a  2,651,525 
World Fuel Services  149,212  5,905,811 
    60,546,228 
Financial—19.0%     
Acadia Realty Trust  109,229c  2,277,425 
Amerisafe  38,602a  861,983 
Bank Mutual  52,675  215,441 
Bank of the Ozarks  26,441  1,177,418 
BioMed Realty Trust  285,352c  5,661,384 
Boston Private Financial Holdings  188,207  1,315,567 
Brookline Bancorp  173,462  1,599,320 
Cash America International  71,430  3,389,353 
Cedar Shopping Centers  149,671c  883,059 
City Holding  34,277  1,168,846 
Colonial Properties Trust  192,943c  4,082,674 
Columbia Banking System  92,895  1,752,000 
Community Bank System  92,903  2,324,433 
Delphi Financial Group, Cl. A  125,598  4,012,856 
DiamondRock Hospitality  383,226c  4,614,041 
Dime Community Bancshares  39,459  610,036 
EastGroup Properties  55,245c  2,544,585 
eHealth  60,882a  827,995 
Employers Holdings  69,624  1,403,620 
Entertainment Properties Trust  107,137c  5,100,793 
Extra Space Storage  211,233c  4,573,194 
EZCORP, Cl. A  119,711a  3,769,699 
First BanCorp  20,765a  103,617 
First Cash Financial Services  65,013a  2,551,110 
First Commonwealth Financial  266,119  1,649,938 
First Financial Bancorp  117,606  1,938,147 

 

The Fund  11 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Financial (continued)     
First Financial Bankshares  44,721b  2,478,438 
First Midwest Bancorp  160,781  2,106,231 
Forestar Group  82,807a  1,628,814 
Franklin Street Properties  153,850b,c  2,175,439 
Getty Realty  61,221b,c  1,555,626 
Glacier Bancorp  136,861  2,057,021 
Hancock Holding  79,703  2,603,100 
Hanmi Financial  348,323a  459,786 
Healthcare Realty Trust  135,378c  3,092,033 
Home Bancshares  48,869  1,171,390 
Home Properties  79,437c  5,036,306 
Horace Mann Educators  115,040  2,056,915 
Independent Bank/MA  47,127  1,381,292 
Infinity Property & Casualty  27,991  1,654,268 
Inland Real Estate  199,439c  1,948,519 
Interactive Brokers Group, Cl. A  103,111  1,808,567 
Investment Technology Group  108,689a  1,859,669 
Kilroy Realty  121,041c  5,076,460 
Kite Realty Group Trust  162,092c  842,878 
LaBranche & Co.  121,414a  489,298 
LaSalle Hotel Properties  182,760c  5,142,866 
Lexington Realty Trust  318,120c  3,174,838 
LTC Properties  70,430c  2,072,051 
Meadowbrook Insurance Group  92,046  942,551 
Medical Properties Trust  292,854c  3,613,818 
Mid-America Apartment Communities  75,048c  5,016,959 
Nara Bancorp  99,031a  973,475 
National Financial Partners  103,384a  1,663,449 
National Penn Bancshares  331,019  2,717,666 
National Retail Properties  206,484c  5,438,789 
Navigators Group  27,164a  1,407,910 
NBT Bankcorp  74,121  1,675,135 
Old National Bancorp  253,570  2,624,450 
optionsXpress Holdings  108,115  1,993,641 
Parkway Properties  55,873c  1,001,803 
Pennsylvania Real Estate Investment Trust  141,295c  2,231,048 

 

12


 

Common Stocks (continued)  Shares  Value ($) 
Financial (continued)     
Pinnacle Financial Partners  71,304a  1,145,855 
Piper Jaffray  29,132a  1,044,382 
Portfolio Recovery Associates  36,989a  3,338,627 
Post Properties  115,208c  4,677,445 
Presidential Life  45,610  508,095 
PrivateBancorp  148,111  2,331,267 
ProAssurance  75,675a  5,024,820 
Prospect Capital  188,145b  2,278,436 
Provident Financial Services  145,233  2,108,783 
PS Business Parks  47,423c  2,857,710 
RLI  44,215  2,619,297 
S&T Bancorp  49,864  1,017,724 
Safety Insurance Group  28,970  1,356,375 
Saul Centers  17,847c  781,520 
Selective Insurance Group  120,416  2,124,138 
Signature Bank  98,239a  5,718,492 
Simmons First National, Cl. A  35,400  934,206 
Sovran Self Storage  66,736c  2,854,966 
Sterling Bancorp  92,716  959,611 
Sterling Bancshares  190,758  1,695,839 
Stewart Information Services  58,941  597,662 
Stifel Financial  111,437a  5,090,419 
Susquehanna Bancshares  312,945  2,885,353 
SWS Group  66,150  403,515 
Tanger Factory Outlet Centers  187,132c  5,170,457 
Texas Capital Bancshares  91,197a  2,352,883 
Tompkins Financial  20,054  817,000 
Tower Group  89,224  2,040,553 
TradeStation Group  79,096a  763,276 
Trustco Bank  239,762  1,438,572 
UMB Financial  67,527  2,843,562 
Umpqua Holdings  295,831  3,434,598 
United Bankshares  89,326  2,336,768 
United Community Banks  258,754a  621,010 
United Fire & Casualty  44,689  884,842 
Universal Health Realty Income Trust  27,265c  1,175,394 

 

The Fund  13 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Financial (continued)     
Urstadt Biddle Properties, Cl. A  59,422c  1,169,425 
Whitney Holding  207,849  2,814,275 
Wilmington Trust  168,298  759,024 
Wilshire Bancorp  47,702a  190,808 
Wintrust Financial  68,194  2,297,456 
World Acceptance  40,439a  2,747,830 
    231,793,303 
Health Care—13.4%     
Abaxis  43,744a  1,270,763 
Affymetrix  197,297a  1,065,404 
Air Methods  22,525a  1,523,140 
Align Technology  171,686a  4,144,500 
Almost Family  20,005a  693,573 
Amedisys  58,095a  1,935,725 
American Medical Systems Holdings  190,063a  5,606,858 
AMERIGROUP  119,187a  8,140,472 
AMN Healthcare Services  74,529a  643,185 
AmSurg  81,641a  2,192,877 
Analogic  26,377  1,521,162 
ArQule  94,202a  665,066 
Bio-Reference Labs  50,224a  1,266,147 
Cambrex  76,858a  404,273 
Cantel Medical  33,730  874,619 
Catalyst Health Solutions  105,686a  6,294,658 
Centene  100,494a  3,640,898 
Chemed  50,657  3,527,247 
Computer Programs & Systems  18,947  1,113,894 
CONMED  53,206a  1,494,024 
CorVel  18,192a  942,346 
Cross Country Healthcare  71,128a  527,770 
CryoLife  111,987a  654,004 
Cubist Pharmaceuticals  127,107a  4,302,572 
Cyberonics  61,365a  2,182,753 
Dionex  40,051a  4,740,036 
Emergent BioSolutions  54,015a  1,253,688 
Ensign Group  20,145  557,211 

 

14


 

Common Stocks (continued)  Shares  Value ($) 
Health Care (continued)     
Enzo Biochem  76,337a  304,585 
eResearch Technology  130,080a  827,309 
Gentiva Health Services  70,797a  1,982,316 
Greatbatch  71,298a  1,930,037 
Haemonetics  63,848a  4,482,130 
Hanger Orthopedic Group  71,301a  1,937,248 
HealthSpring  147,718a  6,128,820 
Healthways  83,876a  1,419,182 
Hi-Tech Pharmacal  17,387a  480,924 
HMS Holdings  58,415a  4,597,845 
ICU Medical  24,931a  1,124,637 
Integra LifeSciences Holdings  51,539a  2,696,005 
Invacare  89,568  2,946,787 
IPC The Hospitalist  28,880a  1,497,717 
Kendle International  17,306a  173,925 
Kensey Nash  30,524a  754,859 
Landauer  16,638  1,001,108 
LCA-Vision  30,215a  203,649 
LHC Group  35,571a  1,053,613 
Magellan Health Services  83,483a  4,342,786 
MedCath  30,716a  414,973 
Meridian Bioscience  80,875  1,998,421 
Merit Medical Systems  58,194a  1,357,084 
Molina Healthcare  46,352a  1,993,136 
MWI Veterinary Supply  23,532a  1,957,156 
Natus Medical  61,408a  1,042,094 
Neogen  44,575a  1,867,693 
Omnicell  75,893a  1,167,234 
Palomar Medical Technologies  27,654a  442,741 
Par Pharmaceutical Cos.  94,901a  3,268,390 
Parexel International  125,690a  3,489,154 
PharMerica  77,275a  1,016,939 
PSS World Medical  137,181a  3,945,326 
Quality Systems  41,458  3,719,612 
Questcor Pharmaceuticals  146,156a  2,996,198 
Regeneron Pharmaceuticals  161,943a  8,276,907 

 

The Fund  15 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Health Care (continued)     
RehabCare Group  52,542a  1,974,003 
Salix Pharmaceuticals  133,293a  5,237,082 
Savient Pharmaceuticals  169,816a  1,971,564 
SurModics  31,651a  486,159 
Symmetry Medical  127,637a  1,269,988 
ViroPharma  195,774a  3,776,480 
West Pharmaceutical Services  85,206b  4,025,131 
Zoll Medical  51,906a  2,942,032 
    163,699,844 
Industrial—15.7%     
A.O. Smith  69,662  3,063,038 
AAON  28,315  930,148 
AAR  86,261  2,246,236 
ABM Industries  114,712  2,789,796 
Actuant, Cl. A  157,294  4,366,481 
Aerovironment  28,327a  811,569 
Albany International, Cl. A  64,279  1,626,901 
Allegiant Travel  33,064  1,483,582 
American Science & Engineering  20,595  1,814,419 
Apogee Enterprises  54,538  778,803 
Applied Industrial Technologies  98,478  3,472,334 
Arkansas Best  54,658  1,257,681 
Astec Industries  36,227a  1,404,883 
AZZ  25,481  1,115,558 
Badger Meter  32,008  1,213,423 
Barnes Group  122,369  3,027,409 
Belden  111,737  4,249,358 
Brady, Cl. A  131,182  4,946,873 
Briggs & Stratton  111,833  2,638,140 
Cascade  18,192  833,194 
CDI  13,960  206,887 
Ceradyne  59,092a  2,769,051 
CIRCOR International  36,637  1,664,419 
CLARCOR  123,374  5,575,271 
Comfort Systems USA  78,052  953,015 
Consolidated Graphics  27,207a  1,527,673 

 

16


 

Common Stocks (continued)  Shares  Value ($) 
Industrial (continued)     
Cubic  41,999  2,271,306 
Curtiss-Wright  117,041  3,891,613 
Dolan  86,759a  1,021,153 
Dycom Industries  85,831a  1,275,449 
EMCOR Group  145,458a  4,504,834 
Encore Wire  39,583  1,104,761 
EnPro Industries  54,724a  2,193,338 
ESCO Technologies  54,963  2,016,043 
Esterline Technologies  68,256a  4,900,781 
Exponent  29,920a  1,283,867 
Federal Signal  153,963  1,039,250 
Forward Air  62,326  2,095,400 
G & K Services, Cl. A  42,098  1,393,444 
GenCorp  194,843a  1,272,325 
Geo Group  147,146a  3,925,855 
Gibraltar Industries  76,805a  897,082 
Griffon  102,832a  1,310,080 
Healthcare Services Group  136,090  2,416,958 
Heartland Express  136,389  2,352,710 
Heidrick & Struggles International  38,474  900,292 
Hub Group, Cl. A  76,407a  3,077,674 
II-VI  53,814a  3,113,140 
Insituform Technologies, Cl. A  91,284a  2,310,398 
Insperity  60,207  1,823,670 
Interface, Cl. A  133,949  2,496,809 
John Bean Technologies  62,491  1,262,943 
Kaman  54,206  2,016,463 
Kaydon  84,962  3,288,029 
Kelly Services, Cl. A  48,724a  931,116 
Knight Transportation  162,413  2,925,058 
Lawson Products  9,558  210,563 
Lindsay  27,326  2,003,542 
Lydall  33,250a  324,188 
Mobile Mini  68,432a  1,704,641 
Moog, Cl. A  108,803a  4,800,388 
Mueller Industries  86,311  3,376,486 

 

The Fund  17 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Industrial (continued)     
National Presto Industries  8,682  963,962 
Navigant Consulting  114,057a  1,328,764 
NCI Building Systems  44,187a  547,035 
Old Dominion Freight Line  103,307a  3,865,748 
On Assignment  83,886a  920,229 
Orbital Sciences  111,059a  2,091,241 
Orion Marine Group  59,560a  615,255 
Powell Industries  18,807a  743,253 
Quanex Building Products  106,499  2,232,219 
Robbins & Myers  108,489  4,716,017 
School Specialty  37,846a  560,499 
SFN Group  134,921a  1,420,718 
Simpson Manufacturing  80,503  2,247,644 
SkyWest  119,560  1,976,327 
Standard Register  37,007  127,304 
Standex International  24,955  912,355 
SYKES Enterprises  88,534a  1,773,336 
Teledyne Technologies  82,071a  4,143,765 
Tetra Tech  152,353a  3,598,578 
Toro  77,063  5,233,348 
Tredegar  44,735  978,802 
Triumph Group  32,924  2,835,415 
TrueBlue  125,002a  1,760,028 
UniFirst  35,899  1,858,132 
United Stationers  52,215  3,762,613 
Universal Forest Products  38,044  1,228,441 
Viad  37,183  922,510 
Vicor  37,801  631,655 
Watts Water Technologies, Cl. A  78,706  3,045,922 
    191,538,906 
Information Technology—18.8%     
Advanced Energy Industries  79,271a  1,121,685 
Agilysys  56,250a  293,625 
Anixter International  70,466  5,294,815 
Arris Group  286,407a  3,436,884 
ATMI  84,720a  1,686,775 

 

18


 

Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
Avid Technology  57,943a  1,076,581 
Bel Fuse, Cl. B  27,512  553,817 
Benchmark Electronics  144,062a  2,434,648 
Black Box  34,697  1,212,313 
Blackbaud  94,021  2,600,621 
Blue Coat Systems  108,953a  3,137,846 
Bottomline Technologies  72,167a  2,004,799 
Brightpoint  172,171a  1,742,371 
Brooks Automation  160,932a  1,968,198 
Cabot Microelectronics  60,243a  2,942,871 
CACI International, Cl. A  74,675a  4,563,389 
Cardtronics  73,404a  1,559,835 
Ceva  49,267a  1,506,585 
Checkpoint Systems  86,257a  1,816,572 
Ciber  190,149a  1,087,652 
Cognex  84,551  2,644,755 
Cohu  46,209  665,872 
Commvault Systems  91,352a  3,598,355 
comScore  47,351a  1,411,533 
Comtech Telecommunications  72,339  2,047,194 
CSG Systems International  95,640a  2,031,394 
CTS  93,702  1,029,785 
Cymer  66,260a  3,187,769 
Daktronics  92,118  988,426 
DealerTrack Holdings  84,370a  1,894,950 
DG Fastchannel  57,114a  2,089,801 
Digi International  54,924a  648,652 
Diodes  77,346a  2,646,780 
DSP Group  61,946a  500,524 
DTS  32,642a  1,438,206 
Ebix  92,014a  2,102,520 
Electro Scientific Industries  58,052a  954,955 
EMS Technologies  33,613a  849,064 
Epicor Software  132,386a  1,654,825 
EPIQ Systems  74,058  1,053,845 
Exar  73,738a  450,539 

 

The Fund  19 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
FARO Technologies  31,222a  1,347,854 
FEI  90,209a  2,928,184 
Forrester Research  31,469  1,243,340 
Gerber Scientific  55,646a  531,976 
Harmonic  182,696a  1,512,723 
Heartland Payment Systems  81,393  1,624,604 
Hittite Microwave  50,590a  3,257,490 
Hutchinson Technology  80,571a,b  215,125 
iGATE Capital  77,774  1,319,047 
Infospace  90,510a  814,590 
Insight Enterprises  114,289a  1,961,199 
Integral Systems  16,542a  206,610 
Interactive Intelligence  27,739a  1,037,993 
Intermec  124,966a  1,434,610 
Intevac  49,429a  604,517 
j2 Global Communications  118,447a  3,489,449 
JDA Software Group  93,551a  3,065,666 
Knot  52,488a  535,902 
Kopin  147,790a  710,870 
Kulicke & Soffa Industries  192,282a  1,742,075 
Liquidity Services  38,223a  743,437 
Littelfuse  46,456  2,890,028 
LivePerson  103,302a  1,380,115 
Logmein  36,767a  1,583,555 
LoJack  55,755a  255,358 
Manhattan Associates  54,238a  1,960,704 
MAXIMUS  36,830  2,946,032 
Mercury Computer Systems  49,370a  953,335 
Methode Electronics  102,721  1,269,632 
Micrel  144,511b  1,851,186 
Microsemi  199,913a  4,717,947 
MicroStrategy, Cl. A  18,979a  2,681,733 
MKS Instruments  123,465  3,503,937 
Monolithic Power Systems  81,514a  1,384,108 

 

20


 

Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
MTS Systems  35,026  1,550,601 
NCI, Cl. A  14,934a  367,526 
Netgear  85,065a  3,551,464 
NetScout Systems  88,467a  2,263,871 
Network Equipment Technologies  56,733a  191,190 
Newport  106,946a  2,003,099 
Novatel Wireless  83,494a  517,663 
Oplink Communications  46,704a  924,739 
OSI Systems  42,753a  1,641,288 
Park Electrochemical  51,185  1,636,384 
PC-Tel  37,611a  274,560 
Perficient  67,178a  839,053 
Pericom Semiconductor  59,007a  536,374 
Plexus  81,069a  2,958,208 
Power Integrations  61,626  2,485,993 
Progress Software  163,290a  4,841,549 
Pulse Electronics  130,389  779,726 
Radiant Systems  90,099a  1,794,772 
Radisys  59,131a  520,944 
RightNow Technologies  47,493a  1,718,297 
Rofin-Sinar Technologies  65,333a  2,829,572 
Rogers  37,148a  1,542,385 
Rudolph Technologies  84,932a  960,581 
ScanSource  51,569a  1,844,623 
Sigma Designs  91,418a  1,166,494 
Smith Micro Software  81,351a  628,030 
Sourcefire  69,920a  1,861,270 
Stamps.com  28,963  391,580 
Standard Microsystems  52,499a  1,425,348 
StarTek  22,678a  123,368 
Stratasys  41,261a  2,221,905 
Super Micro Computer  50,528a  862,008 
Supertex  18,652a  402,697 
Symmetricom  111,780a  681,858 

 

The Fund  21 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Information Technology (continued)     
Synaptics  92,362a  2,624,928 
Synchronoss Technologies  45,537a  1,469,024 
SYNNEX  53,726a  1,801,433 
Take-Two Interactive Software  220,936a  3,574,744 
Taleo, Cl. A  82,559a  2,994,415 
Tekelec  142,935a  1,193,507 
TeleTech Holdings  84,857a  1,686,109 
Tessera Technologies  120,382a  2,378,748 
THQ  191,317a  772,921 
Tollgrade Communications  43,360a  437,502 
Triquint Semiconductor  374,201a  5,152,748 
TTM Technologies  87,550a  1,673,956 
Tyler Technologies  74,328a  1,842,591 
Ultratech  45,292a  1,418,093 
United Online  243,649  1,608,083 
Veeco Instruments  95,380a  4,876,779 
ViaSat  91,017a  3,633,399 
Volterra Semiconductor  59,970a  1,576,611 
Websense  109,919a  2,834,811 
Wright Express  83,634a  4,711,103 
    230,237,082 
Materials—4.7%     
A.M. Castle & Co.  32,272a  609,295 
AMCOL International  50,404  1,876,037 
American Vanguard  45,896b  409,392 
Arch Chemicals  58,097  2,246,611 
Balchem  57,370  2,277,015 
Buckeye Technologies  98,500  2,773,760 
Calgon Carbon  108,653a  1,864,485 
Century Aluminum  126,567a  2,528,809 
Clearwater Paper  24,583a  1,929,274 
Deltic Timber  19,414  1,316,269 
Eagle Materials  87,287  2,539,179 
H.B. Fuller  126,627  2,766,800 

 

22


 

Common Stocks (continued)  Shares  Value ($) 
Materials (continued)     
Hawkins  19,754  929,228 
Headwaters  128,136a  699,623 
Kaiser Aluminum  30,738  1,540,281 
KapStone Paper and Packaging  99,626a  1,731,500 
Koppers Holdings  48,875  2,235,054 
LSB Industries  39,452a  1,591,888 
Materion  52,121a  2,176,573 
Myers Industries  93,688  999,651 
Neenah Paper  43,859  1,023,230 
Olympic Steel  22,802  669,695 
OM Group  74,048a  2,683,500 
PolyOne  215,040  3,113,779 
Quaker Chemical  28,901  1,305,747 
RTI International Metals  69,076a  2,206,287 
Schulman (A.)  68,436  1,732,800 
Schweitzer-Mauduit International  44,159  2,289,203 
Stepan  20,374  1,466,317 
STR Holdings  97,465a  1,605,249 
Texas Industries  59,992  2,529,863 
Wausau Paper  123,946  836,636 
Zep  49,942  948,898 
    57,451,928 
Telecommunication Services—.6%     
Atlantic Tele-Network  20,169  740,807 
Cbeyond  55,335a  706,075 
Cincinnati Bell  450,731a  1,347,686 
General Communication, Cl. A  93,140a  1,071,110 
Neutral Tandem  86,899a  1,328,686 
NTELOS Holdings  60,809  1,199,762 
USA Mobility  61,809  954,949 
    7,349,075 
Utilities—3.7%     
Allete  68,671  2,780,489 
American States Water  41,259  1,440,352 

 

The Fund  23 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)  Shares  Value ($) 
Utilities (continued)     
Avista  148,177  3,608,110 
Central Vermont Public Service  15,853  371,119 
CH Energy Group  40,454  2,169,143 
El Paso Electric  110,693  3,429,269 
Laclede Group  47,182  1,810,373 
New Jersey Resources  91,651  4,012,481 
Northwest Natural Gas  51,894  2,399,579 
NorthWestern  97,602  3,176,945 
Piedmont Natural Gas  175,264  5,564,632 
South Jersey Industries  60,790  3,492,386 
Southwest Gas  114,680  4,560,824 
UIL Holdings  101,638  3,234,121 
UniSource Energy  94,779  3,519,144 
    45,568,967 
Total Common Stocks     
(cost $970,402,451)    1,203,143,320 
  Principal   
Short -Term Investments—.1%  Amount ($)  Value ($) 
U.S. Treasury Bills     
0.04%, 6/16/11     
(cost $779,960)  780,000d  779,998 
 
Other Investment—.9%  Shares  Value ($) 
Registered Investment Company;     
Dreyfus Institutional Preferred     
Plus Money Market Fund     
(cost $11,589,000)  11,589,000e  11,589,000 

 

24


 

Investment of Cash Collateral     
for Securities Loaned—.5%  Shares  Value ($) 
Registered Investment Company;     
Dreyfus Institutional Cash     
Advantage Plus Fund     
(cost $5,987,382)  5,987,382e  5,987,382 
 
Total Investments (cost $988,758,793)  99.9%  1,221,499,700 
Cash and Receivables (Net)  .1%  1,026,327 
Net Assets  100.0%  1,222,526,027 

 

a Non-income producing security. 
b Security, or portion thereof, on loan.At April 30, 2011, the value of the fund’s securities on loan was $5,795,734 
and the value of the collateral held by the fund was $5,987,382. 
c Investment in real estate investment trust. 
d Held by a broker as collateral for open financial futures positions. 
e Investment in affiliated money market mutual fund. 

 

Portfolio Summary (Unaudited)     
 
  Value (%)  Value (%) 
Financial  19.0  Materials  4.7 
Information Technology  18.8  Consumer Staples  3.7 
Industrial  15.7  Utilities  3.7 
Consumer Discretionary  13.9  Short-Term/Money Market Investments  1.5 
Health Care  13.4  Telecommunication Services  .6 
Energy  4.9    99.9 
 
† Based on net assets.       
See notes to financial statements.       

 

The Fund  25 

 


 

STATEMENT OF FINANCIAL FUTURES

April 30, 2011 (Unaudited)

    Market Value    Unrealized  
    Covered by    Appreciation  
  Contracts  Contracts ($)  Expiration  at 4/30/2011 ($) 
Financial Futures Long           
Russell 2000 Mini  224  19,351,360  June 2011  568,285  
 
See notes to financial statements.           

 

26


 

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2011 (Unaudited)

  Cost  Value 
Assets ($):     
Investments in securities—See Statement of Investments (including     
securities on loan, valued at $5,795,734)—Note 1(b):     
Unaffiliated issuers  971,182,411  1,203,923,318 
  Affiliated issuers  17,576,382  17,576,382 
Cash    1,697,764 
Receivable for investment securities sold    6,152,228 
Receivable for shares of Common Stock subscribed    1,835,900 
Dividends and interest receivable    538,967 
Receivable for futures variation margin—Note 4    107,361 
    1,231,831,920 
Liabilities ($):     
Due to The Dreyfus Corporation and affiliates—Note 3(b)    491,276 
Liability for securities on loan—Note 1(b)    5,987,382 
Payable for shares of Common Stock redeemed    1,910,672 
Payable for investment securities purchased    908,190 
Loan commitment fees payable—Note 2    8,285 
Interest payable—Note 2    88 
    9,305,893 
Net Assets ($)    1,222,526,027 
Composition of Net Assets ($):     
Paid-in capital    966,655,451 
Accumulated undistributed investment income—net    1,475,340 
Accumulated net realized gain (loss) on investments    21,086,044 
Accumulated net unrealized appreciation (depreciation) on     
investments (including $568,285 net unrealized     
appreciation on financial futures)    233,309,192 
Net Assets ($)    1,222,526,027 
Shares Outstanding     
(200 million shares of $.001 par value Common Stock authorized)    54,198,574 
Net Asset Value, offering and redemption price per share ($)    22.56 
 
See notes to financial statements.     

 

The Fund  27 

 


 

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2011 (Unaudited)

Investment Income ($):   
Income:   
 Cash dividends:   
 Unaffiliated issuers  8,225,073 
 Affiliated issuers  11,597 
Income from securities lending—Note 1(b)  162,482 
Interest  491 
Total Income  8,399,643 
Expenses:   
Management fee—Note 3(a)  1,442,073 
Shareholder servicing costs—Note 3(b)  1,442,073 
Directors’ fees—Note 3(a)  29,368 
Loan commitment fees—Note 2  8,285 
Interest expense—Note 2  4,231 
Total Expenses  2,926,030 
Less—Directors’ fees reimbursed by the Manager—Note 3(a)  (29,368) 
Net Expenses  2,896,662 
Investment Income—Net  5,502,981 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):   
Net realized gain (loss) on investments  29,663,500 
Net realized gain (loss) on financial futures  2,400,563 
Net Realized Gain (Loss)  32,064,063 
Net unrealized appreciation (depreciation) on investments  196,368,516 
Net unrealized appreciation (depreciation) on financial futures  381,147 
Net Unrealized Appreciation (Depreciation)  196,749,663 
Net Realized and Unrealized Gain (Loss) on Investments  228,813,726 
Net Increase in Net Assets Resulting from Operations  234,316,707 
 
See notes to financial statements.   

 

28


 

STATEMENT OF CHANGES IN NET ASSETS

  Six Months Ended   
  April 30, 2011  Year Ended 
  (Unaudited)  October 31, 2010 
Operations ($):     
Investment income—net  5,502,981  6,071,974 
Net realized gain (loss) on investments  32,064,063  32,546,093 
Net unrealized appreciation     
(depreciation) on investments  196,749,663  161,168,330 
Net Increase (Decrease) in Net Assets     
Resulting from Operations  234,316,707  199,786,397 
Dividends to Shareholders from ($):     
Investment income—net  (8,350,465)  (6,764,974) 
Net realized gain on investments  (21,136,380)   
Total Dividends  (29,486,845)  (6,764,974) 
Capital Stock Transactions ($):     
Net proceeds from shares sold  264,765,341  347,835,916 
Dividends reinvested  28,316,048  6,274,003 
Cost of shares redeemed  (278,085,003)  (348,615,530) 
Increase (Decrease) in Net Assets     
from Capital Stock Transactions  14,996,386  5,494,389 
Total Increase (Decrease) in Net Assets  219,826,248  198,515,812 
Net Assets ($):     
Beginning of Period  1,002,699,779  804,183,967 
End of Period  1,222,526,027  1,002,699,779 
Undistributed investment income—net  1,475,340  4,322,824 
Capital Share Transactions (Shares):     
Shares sold  12,751,590  19,731,208 
Shares issued for dividends reinvested  1,370,453  372,356 
Shares redeemed  (13,203,940)  (20,289,148) 
Net Increase (Decrease) in Shares Outstanding  918,103  (185,584) 
 
See notes to financial statements.     

 

The Fund  29 

 


 

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, 2011    Year Ended October 31,   
  (Unaudited)  2010  2009  2008  2007  2006 
Per Share Data ($):             
Net asset value,             
beginning of period  18.82  15.04  15.71  25.45  23.93  21.06 
Investment Operations:             
Investment income—neta  .10  .11  .15  .22  .15  .12 
Net realized and unrealized             
gain (loss) on investments  4.19  3.80  .45  (7.85)  2.45  3.11 
Total from             
Investment Operations  4.29  3.91  .60  (7.63)  2.60  3.23 
Distributions:             
Dividends from             
investment income—net  (.16)  (.13)  (.23)  (.15)  (.12)  (.11) 
Dividends from net realized             
gain on investments  (.39)    (1.04)  (1.96)  (.96)  (.25) 
Total Distributions  (.55)  (.13)  (1.27)  (2.11)  (1.08)  (.36) 
Net asset value, end of period  22.56  18.82  15.04  15.71  25.45  23.93 
Total Return (%)  23.06b  26.08  5.43  (32.21)  11.15  15.53 
Ratios/Supplemental Data (%):           
Ratio of total expenses             
to average net assets  .51c  .51  .51  .51  .51  .50 
Ratio of net expenses             
to average net assets  .50c  .50  .50  .50  .50  .50 
Ratio of net investment income           
to average net assets  .95c  .65  1.11  1.09  .60  .52 
Portfolio Turnover Rate  13.86b  20.72  25.48  31.84  25.08  25.05 
Net Assets, end of period             
($ x 1,000)  1,222,526  1,002,700  804,184  734,645  998,016  888,354 

 

a  Based on average shares outstanding at each month end. 
b  Not annualized. 
c  Annualized. 

 

See notes to financial statements.

30


 

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 SmallCap 600 Index.The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities 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 Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Company 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.

The Fund  31 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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. U.S.Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service approved by the Board of Directors. Registered investment companies that are not traded on an exchange 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 American Depository Receipts 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

32


 

public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

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

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

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

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

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

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities

The Fund  33 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The following is a summary of the inputs used as of April 30, 2011 in valuing the fund’s investments:

    Level 2—Other  Level 3—   
  Level 1—  Significant  Significant   
  Unadjusted  Observable  Unobservable   
  Quoted Prices  Inputs  Inputs  Total 
Assets ($)         
Investments in Securities:       
Equity Securities—         
Domestic  1,203,143,320      1,203,143,320 
Mutual Funds  17,576,382      17,576,382 
U.S. Treasury    779,998    779,998 
Other Financial         
Instruments:         
Futures††  568,285      568,285 

 

  See Statement of Investments for additional detailed categorizations. 
††  Amount shown represents unrealized appreciation at period end. 

 

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about FairValue Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at April 30, 2011.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement withThe Bank of NewYork Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the

34


 

fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Manager, U.S. Government and Agency securities or letters of credit.The fund is 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 bears 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. During the period ended April 30, 2011,The Bank of New York Mellon earned $54,161 from lending portfolio securities, pursuant to the securities lending agreement.

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

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended April 30, 2011 were as follows:

Affiliated           
Investment  Value     Value  Net 
Company  10/31/2010 ($)                        Purchases ($)             Sales ($) 4/30/2011 ($)  Assets (%) 
Dreyfus           
Institutional           
Preferred           
Plus Money           
Market           
Fund  10,179,000  156,833,000 155,423,000   11,589,000  .9 
Dreyfus           
Institutional           
Cash           
Advantage           
Plus Fund  123,776,219  163,237,071 281,025,908   5,987,382  .5 
Total  133,955,219  320,070,071 436,448,908   17,576,382  1.4 

 

The Fund  35 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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

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

As of and during the period ended April 30, 2011, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the three-year period ended October 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2010 was as follows: ordinary income $6,764,974. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary

36


 

or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended April 30, 2011, was approximately $597,200 with a related weighted average annualized interest rate of 1.43%.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .25% 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 fees and commissions, taxes, interest fees, 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 the accrued 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. Annual retainer fees and attendance fees are allocated to each fund based on net assets. During the period ended April 30, 2011, fees reimbursed by the Manager amounted to $29,368.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services, at the annual rate of .25% 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

The Fund  37 

 


 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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, 2011, the fund was charged $1,442,073 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 $245,638 and shareholder services plan fees $245,638.

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, 2011, amounted to $158,175,805 and $171,786,787, respectively.

Futures Contracts: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk as a result of changes in value of underlying financial instruments.The fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a 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. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which

38


 

they are traded. When the contracts are closed, the fund recognizes a realized gain or loss. There is minimal counterparty credit risk to the fund with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default. Contracts open at April 30, 2011 are set forth in the Statement of Financial Futures.

The following summarizes the average market value of derivatives outstanding during the period ended April 30, 2011:

  Average Market Value ($) 
Equity future contracts  15,621,320 

 

At April 30, 2011, accumulated net unrealized appreciation on investments was $232,740,907, consisting of $306,512,488 gross unrealized appreciation and $73,771,581 gross unrealized depreciation.

At April 30, 2011, 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).

The Fund  39 

 


 

INFORMATION ABOUT THE RENEWAL OF THE
FUND’S MANAGEMENT AGREEMENT (Unaudited)

At a meeting of the fund’s Board of Directors held on March 1, 2011, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”). The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of Dreyfus. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below.The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board members considered information previously provided to them in presentations from representatives of Dreyfus regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex, and representatives of Dreyfus confirmed that there had been no material changes in this information. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including the distribution channel(s) for the fund.

The Board members also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus 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 Dreyfus’ extensive administrative, accounting, and compliance infrastructures.The Board also considered portfolio management’s brokerage policies and practices (including policies and practices regarding soft dollars) and the standards applied in seeking best execution.

40


 

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board members reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended December 31, 2010, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of October 31, 2010. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds.The Board members discussed the results of the comparisons and noted that the fund’s total return performance ranked second among the three funds in the Performance Group for the various periods, except for the one-year period when the fund’s performance ranked third, and was above the Performance Universe median for the various periods, except for the two-year period when the fund’s performance was below the median. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index.

The Board members also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons. Taking into consideration the fund’s “unitary” fee structure, they noted that the fund’s contractual management fee was at the Expense Group median, the fund’s actual management fee was at the Expense Group

The Fund  41 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S
MANAGEMENT AGREEMENT (Unaudited) (continued)

and Expense Universe medians and the fund’s total expenses were at the Expense Group median and above the Expense Universe median.

Representatives of Dreyfus reviewed with the Board members the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients. They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors, noting the fund’s “unitary” fee structure. The Board members considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the expenses allocated and profit received by Dreyfus and the resulting profitability percentage for managing the fund, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex. The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Board’s counsel stated that the Board members should consider the profitability analysis (1) as part of their evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of ser-

42


 

vices provided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that, as a result of shared and allocated costs among funds in the Dreyfus funds complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board members also considered potential benefits to Dreyfus from acting as investment adviser and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

  • The Board concluded that the nature, extent and quality of the services provided by Dreyfus are adequate and appropriate.

  • The Board was satisfied with the fund’s performance.

  • The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.

  • The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

The Fund  43 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S
MANAGEMENT AGREEMENT (Unaudited) (continued)

The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year. In addition, it should be noted that the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board members and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board members’ conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years. The Board members determined that renewal of the Agreement was in the best interests of the fund and its shareholders.

44


 

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  MBSC Securities Corporation 
200 Park Avenue  200 Park Avenue 
New York, NY 10166  New York, NY 10166 
Custodian   
The Bank of New York Mellon   
One Wall Street   
New York, NY 10286   

 

Ticker Symbol: DISSX

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 most recent 12-month period ended June 30 is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.


© 2011 MBSC Securities Corporation 

 


 

 

 

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.      Investments.

(a)              Not applicable.

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

                  Not applicable.

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

Not applicable.

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

                  Not applicable.  [CLOSED END FUNDS ONLY]

Item 10.    Submission of Matters to a Vote of Security Holders.

                  There have been no material changes to the procedures applicable to Item 10.

Item 11.    Controls and Procedures.

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

 

 


 

 

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

Item 12.    Exhibits.

(a)(1)   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/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date:

June 13, 2011

 

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

 

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date:

June 13, 2011

 

By:       /s/ James Windels

            James Windels,

            Treasurer

 

Date:

June 13, 2011

 

 

 

 


 

 

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)

 

 

 


 
EX-99.CERT 2 exhibit302-078.htm CERTIFICATION REQUIRED BY RULE 30-2 exhibit302-078.htm - Generated by SEC Publisher for SEC Filing

 

[EX-99.CERT]—Exhibit  (a)(2)

SECTION 302 CERTIFICATION

 

I, Bradley J. Skapyak, certify that:

1.  I have reviewed this report on Form N-CSR of Dreyfus 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) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

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

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

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

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

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

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

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

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

Date:    June 13, 2011

 


 

 

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) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

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

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

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

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

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

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

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

By:       /s/ James Windels

            James Windels,

            Treasurer

Date:    June 13, 2011

 

 


 
EX-99.906CERT 3 exhibit906-078.htm CERTIFICATION REQUIRED BY SECTION 906 exhibit906-078.htm - Generated by SEC Publisher for SEC Filing

 

[EX-99.906CERT]

Exhibit (b)

 

 

SECTION 906 CERTIFICATIONS

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

 

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

 

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

 

By:       /s/Bradley J. Skapyak

Bradley J. Skapyak,

            President

 

Date:    June 13, 2011

 

 

By:       /s/James Windels

            James Windels,

            Treasurer

 

Date:    June 13, 2011

 

 

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

 


 
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