N-CSR 1 lp1.htm FORM NCSR lp1.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- 06325

 

 

 

Dreyfus Midcap Index Fund, Inc.

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York 10166

 

 

(Address of principal executive offices) (Zip code)

 

 

 

 

 

Bennett A. MacDougall, Esq.

200 Park Avenue

New York, New York 10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code:

(212) 922-6000

 

 

Date of fiscal year end:

 

10/31

 

Date of reporting period:

10/31/2015

 
             

 

 

 

 

FORM N-CSR

Item 1.                         Reports to Stockholders.

 

 

 

Dreyfus Midcap Index Fund, Inc.

     

  

ANNUAL REPORT
October 31, 2015

   
 

 

 

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 F U N D

FOR MORE INFORMATION

 

Back Cover

 

       
 


Dreyfus Midcap Index Fund, Inc.

  

The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Midcap Index Fund, Inc., covering the 12-month period from November 1, 2014, through October 31, 2015. 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.

Financial markets proved volatile over the reporting period amid choppy U.S. and global economic growth. U.S. stocks advanced over the final months of 2014 and the spring of 2015, with some broad measures of market performance setting new record highs. Those gains were largely erased over the summer when global economic instability undermined investor sentiment, but a renewed rally in October enabled most broad stock indices to end the reporting period in positive territory. In contrast, international stocks generally lost a degree of value, with developed markets faring far better than emerging markets amid falling commodity prices and depreciating currency values. U.S. bonds generally produced modestly positive total returns, with municipal bonds and longer term U.S. government securities faring better, on average, than corporate-backed bonds.

We expect market volatility to persist over the near term until investors see greater clarity regarding short-term U.S. interest rates and global economic conditions. Our investment strategists and portfolio managers are monitoring developments carefully, keeping a close watch on credit spreads, currency values, commodity prices, corporate profits, economic trends in the emerging markets, and other developments that could influence investor sentiment. Over the longer term, we remain confident that markets are likely to benefit as investors increasingly recognize that inflation is likely to stay low, economic growth expectations are stabilizing, and monetary policies remain accommodative in most regions of the world. In our view, investors will continue to be well served under these circumstances by a long-term perspective and a disciplined investment approach.

Thank you for your continued confidence and support.

Sincerely,

J. Charles Cardona
President
The Dreyfus Corporation

November 16, 2015

2

 

DISCUSSION OF FUND PERFORMANCE

For the period of November 1, 2014, through October 31, 2015, as provided by Thomas J. Durante, CFA, Karen Q. Wong, CFA, and Richard A. Brown, CFA, Portfolio Managers

Overview Fund and Market Performance

For the 12-month period ended October 31, 2015, Dreyfus Midcap Index Fund produced a total return of 2.98%.1 The Standard & Poor’s MidCap 400® Index (“S&P 400 Index”), the fund’s benchmark, produced a total return of 3.42% for the same period.2,3

Modestly positive results from midcap stocks for the reporting period masked heightened volatility stemming from shifting economic sentiment. The difference in returns between the fund and the S&P 400 Index was primarily the result of transaction costs and operating expenses that are not reflected in the S&P 400 Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the S&P 400 Index by generally investing in all 400 stocks in the S&P 400 Index, in proportion to their respective weightings. The fund may also use stock index futures as a substitute for the sale or purchase of stocks. The S&P 400 Index is composed of 400 stocks of midsize domestic companies across 10 economic sectors. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 400 Index than smaller ones.

The fund employed futures contracts during the reporting period in its efforts to replicate the returns of the S&P 400 Index.

Global Economic Concerns Sparked Market Turmoil

After experiencing sharp declines in the early fall, the reporting period began in the midst of a stock market rally driven by robust employment gains and improved consumer and business confidence. The S&P 400 Index climbed through the end of January 2015 despite global economic concerns and plummeting commodity prices.

Investors responded negatively in February to sluggish domestic economic growth stemming from severe winter weather and an appreciating U.S. dollar. Indeed, U.S. GDP expanded at an anemic 0.6% annualized rate during the first quarter of 2015, but the S&P 400 Index soon resumed its advance, setting a new record high in June as the U.S. economy regained traction with a 3.9% annualized growth rate for the second quarter.

Uncertainty regarding a debt crisis in Greece and slowing economic growth in China again sent U.S. stock prices lower over the summer. In mid-August, the Chinese central bank unexpectedly devalued the country’s currency, sending commodity prices lower. In fact, lower U.S. export activity stemming from global economic weakness was cited as a primary factor behind a deceleration of U.S. economic growth to an annualized 1.5% rate for the third quarter. Midcap stocks dipped into negative territory in late August and through most of September, but a strong rally in October enabled the S&P 400 Index to end the reporting period with a modest gain.

3

 

DISCUSSION OF FUND PERFORMANCE (continued)

Financial Stocks Led Midcap Stocks Higher

Although the S&P 400 Index posted a mild single-digit gain for the reporting period overall, the economic sectors that comprise the index delivered widely disparate results. The financials sector led the midcap market’s advance, as insurance companies reported higher earnings due to recent mergers-and-acquisitions activity and strong performance in their fixed-income investment portfolios. In addition, midsize real estate investment trusts (REITs) that specialize in storage facilities and major urban commercial properties gained value in the recovering economy.

In the information technology sector, cost containment efforts helped a number of companies maintain their earnings growth. Moreover, some software developers posted higher earnings amid rising demand, and others gained value in the wake of acquisition offers from larger companies. Technology services companies providing global payment and e-commerce solutions also fared particularly well over the reporting period. The health care sector continued to see rising spending on medical services for an aging population, and the market sector benefited from the launch of innovative new breast cancer detection and heart implant technologies. Health care insurers reported higher enrollment rates due to the Affordable Care Act.

In contrast, the energy sector lost considerable value over the reporting period. A glut of supply of crude oil was met with tepid global demand, causing petroleum prices to fall sharply. Offshore drillers, exploration-and-production companies, and coal producers were hit especially hard. The materials sector also was hurt by declining commodity prices stemming mainly from reduced demand from the emerging markets and a strengthening U.S. dollar, which weighed on earnings for metals-and-mining companies. Finally, results from the industrials sector were undermined by weakness among trucking firms, railroads, and marine transport companies that struggled with lower demand from China and the U.S. energy industry.

Replicating the Performance of the S&P 400 Index

Although we do not actively manage the fund’s investments in response to macroeconomic trends, it is worth noting that the U.S. economic recovery appears to remain on track and aggressively accommodative monetary policies are at work in international markets. As always, we have continued to monitor the factors considered by the fund’s investment model in light of current market conditions.

November 16, 2015

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 midcap companies often experience sharper price fluctuations than stocks of large-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 reinvestment of dividends and, where applicable, capital gain distributions. The Standard & Poor’s MidCap 400 Index is a widely accepted, unmanaged total return index measuring the performance of the midsize company segment of the U.S. market. Investors cannot invest directly in any index.

3 “Standard & Poor’s®,” “S&P®,” and “S&P MidCap 400®” 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, endorsed, 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.

4

 

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Midcap Index Fund, Inc. and the Standard & Poor’s MidCap 400 Index

       

Average Annual Total Returns as of 10/31/15

  
       

 

1 Year

5 Years

10 Years

Fund

2.98%

12.87%

8.63%

Standard & Poor’s MidCap 400 Index

3.42%

13.41%

9.09%

† Source: Lipper Inc.

Past performance is not predictive of future performance. The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The above graph compares a $10,000 investment made in Dreyfus Midcap Index Fund, Inc. on 10/31/05 to a $10,000 investment made in the Standard & Poor’s MidCap 400 Index (the “Index”) on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all applicable fees and expenses. The Index is a widely accepted, unmanaged total return index measuring the performance of the midsize company segment of the U.S. stock market. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

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 Midcap Index Fund, Inc. from May 1, 2015 to October 31, 2015. 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 October 31, 2015

    
                 

Expenses paid per $1,000†

    

$2.48

      

Ending value (after expenses)

   

$968.70

      

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 October 31, 2015

                 

Expenses paid per $1,000†

    

 

$2.55

      

Ending value (after expenses)

   

 

$1,022.68

      

† Expenses are equal to the fund’s annualized expense ratio of .50%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

6

 

STATEMENT OF INVESTMENTS

October 31, 2015

           

Common Stocks - 98.5%

  

Shares

  

Value ($)

  

Automobiles & Components - .6%

          

Dana Holding

  

340,216

  

5,715,629

  

Gentex

  

624,383

  

10,233,637

  

Thor Industries

  

97,249

  

5,259,226

  
       

21,208,492

  

Banks - 6.0%

          

Associated Banc-Corp

  

323,209

  

6,250,862

  

BancorpSouth

  

185,383

  

4,621,598

  

Bank of Hawaii

  

94,257

a

6,171,948

  

Bank of the Ozarks

  

164,347

a

8,220,637

  

Cathay General Bancorp

  

162,366

  

5,082,056

  

Commerce Bancshares

  

170,346

  

7,759,260

  

Cullen/Frost Bankers

  

118,277

  

8,094,878

  

East West Bancorp

  

303,720

  

12,267,251

  

First Horizon National

  

498,719

  

7,071,835

  

First Niagara Financial Group

  

750,590

  

7,768,607

  

FirstMerit

  

350,782

  

6,591,194

  

Fulton Financial

  

381,919

  

5,125,353

  

Hancock Holding

  

166,518

  

4,595,897

  

International Bancshares

  

120,308

  

3,242,301

  

New York Community Bancorp

  

1,008,258

  

16,656,422

  

PacWest Bancorp

  

238,851

  

10,757,849

  

Prosperity Bancshares

  

138,737

  

7,128,307

  

Signature Bank

  

107,793

b

16,052,534

  

SVB Financial Group

  

107,847

b

13,164,883

  

Synovus Financial

  

280,092

  

8,859,310

  

TCF Financial

  

357,940

  

5,508,697

  

Trustmark

  

141,279

a

3,394,934

  

Umpqua Holdings

  

467,148

  

7,801,372

  

Valley National Bancorp

  

477,310

  

5,011,755

  

Washington Federal

  

199,527

  

4,976,203

  

Webster Financial

  

191,299

  

7,097,193

  
       

199,273,136

  

Capital Goods - 10.3%

          

A.O. Smith

  

158,716

  

12,192,563

  

Acuity Brands

  

91,818

  

20,071,415

  

AECOM

  

320,543

b

9,446,402

  

AGCO

  

159,284

a

7,707,753

  

B/E Aerospace

  

224,177

  

10,525,110

  

7

 

STATEMENT OF INVESTMENTS (continued)

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Capital Goods - 10.3% (continued)

          

Carlisle

  

137,925

  

11,999,475

  

CLARCOR

  

106,287

  

5,299,470

  

Crane

  

103,496

  

5,448,029

  

Donaldson

  

266,361

a

8,044,102

  

Esterline Technologies

  

65,645

b

5,057,947

  

Fortune Brands Home & Security

  

338,708

  

17,724,590

  

GATX

  

93,937

  

4,386,858

  

Graco

  

122,455

  

8,988,197

  

Granite Construction

  

82,878

  

2,721,714

  

Hubbell, Cl. B

  

107,692

  

10,429,970

  

Huntington Ingalls Industries

  

102,212

  

12,259,307

  

IDEX

  

165,549

  

12,707,541

  

ITT

  

190,285

  

7,531,480

  

Joy Global

  

207,205

a

3,559,782

  

KBR

  

306,634

  

5,654,331

  

Kennametal

  

170,862

  

4,804,639

  

KLX

  

110,876

  

4,336,360

  

Lennox International

  

85,013

  

11,290,577

  

Lincoln Electric Holdings

  

144,952

  

8,669,579

  

MSC Industrial Direct Cl. A

  

102,805

  

6,453,070

  

Nordson

  

122,251

  

8,709,161

  

NOW

  

226,614

a,b

3,741,397

  

Orbital ATK

  

124,222

  

10,635,888

  

Oshkosh

  

164,986

  

6,779,275

  

Regal Beloit

  

94,756

  

6,044,485

  

Teledyne Technologies

  

74,419

b

6,640,407

  

Terex

  

224,797

  

4,509,428

  

Timken

  

157,938

  

4,990,841

  

Toro

  

115,866

  

8,721,234

  

Trimble Navigation

  

548,434

b

12,476,873

  

Trinity Industries

  

327,628

  

8,868,890

  

Triumph Group

  

105,047

a

4,893,089

  

Valmont Industries

  

50,606

a

5,487,715

  

Wabtec

  

204,097

  

16,913,518

  

Watsco

  

54,607

  

6,718,299

  

Woodward

  

123,636

  

5,625,438

  
       

339,066,199

  

Commercial & Professional Services - 3.0%

          

CEB

  

71,464

  

5,342,649

  

8

 

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Commercial & Professional Services - 3.0% (continued)

          

Clean Harbors

  

115,609

b

5,374,662

  

Copart

  

232,306

b

8,411,800

  

Deluxe

  

105,748

  

6,297,293

  

FTI Consulting

  

87,479

b

2,975,161

  

Herman Miller

  

124,043

  

3,935,884

  

HNI

  

93,606

  

4,019,442

  

Manpowergroup

  

162,936

  

14,954,266

  

MSA Safety

  

66,881

  

2,907,986

  

R.R. Donnelley & Sons

  

441,657

a

7,450,754

  

Rollins

  

204,321

  

5,479,889

  

Towers Watson & Co., Cl. A

  

147,396

a

18,212,250

  

Waste Connections

  

262,332

  

14,291,847

  
       

99,653,883

  

Consumer Durables & Apparel - 4.1%

          

Brunswick

  

196,222

  

10,558,706

  

CalAtlantic Group

  

163,399

a,b

6,223,868

  

Carter's

  

111,694

  

10,150,751

  

Deckers Outdoor

  

71,070

b

3,955,756

  

Jarden

  

419,725

b

18,803,680

  

Kate Spade & Co.

  

270,081

b

4,853,356

  

KB Home

  

192,931

a

2,527,396

  

M.D.C. Holdings

  

82,026

a

2,131,856

  

NVR

  

8,096

b

13,259,305

  

Polaris Industries

  

129,206

a

14,515,002

  

Skechers USA, Cl. A

  

270,546

a,b

8,441,035

  

Tempur Sealy International

  

131,205

b

10,212,997

  

Toll Brothers

  

342,092

b

12,305,049

  

TRI Pointe Group

  

312,046

b

4,050,357

  

Tupperware Brands

  

106,560

a

6,273,187

  

Vista Outdoor

  

134,491

  

6,014,438

  
       

134,276,739

  

Consumer Services - 2.8%

          

Apollo Education Group

  

204,540

b

1,484,960

  

Brinker International

  

127,501

a

5,802,571

  

Buffalo Wild Wings

  

40,122

a,b

6,189,621

  

Cheesecake Factory

  

97,745

  

4,711,309

  

Cracker Barrel Old Country Store

  

50,643

a

6,961,387

  

DeVry Education Group

  

121,129

a

2,853,799

  

Domino's Pizza

  

117,724

  

12,557,619

  

9

 

STATEMENT OF INVESTMENTS (continued)

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Consumer Services - 2.8% (continued)

          

Dunkin' Brands Group

  

204,960

  

8,487,394

  

Graham Holdings, Cl. B

  

9,354

  

5,167,804

  

International Speedway, Cl. A

  

58,753

  

2,038,142

  

Jack in the Box

  

79,114

  

5,896,366

  

Panera Bread, Cl. A

  

51,827

b

9,192,555

  

Service Corporation International

  

429,340

  

12,133,148

  

Sotheby's

  

130,469

a

4,520,751

  

Wendy's

  

490,526

  

4,493,218

  
       

92,490,644

  

Diversified Financials - 3.0%

          

CBOE Holdings

  

177,625

  

11,907,980

  

Eaton Vance

  

250,358

  

9,040,427

  

Federated Investors, Cl. B

  

202,164

a

6,212,500

  

Janus Capital Group

  

313,477

a

4,868,298

  

MSCI

  

210,333

  

14,092,311

  

Raymond James Financial

  

268,986

  

14,823,818

  

SEI Investments

  

293,690

  

15,219,016

  

SLM

  

897,562

b

6,336,788

  

Stifel Financial

  

143,798

b

6,388,945

  

Waddell & Reed Financial, Cl. A

  

177,118

  

6,542,739

  

WisdomTree Investments

  

241,950

a

4,652,698

  
       

100,085,520

  

Energy - 3.5%

          

Atwood Oceanics

  

126,263

a

2,089,653

  

California Resources

  

653,602

  

2,640,552

  

Denbury Resources

  

749,600

a

2,653,584

  

Dril-Quip

  

81,898

b

5,041,641

  

Energen

  

166,589

  

9,687,150

  

Gulfport Energy

  

225,704

b

6,877,201

  

HollyFrontier

  

400,259

  

19,600,683

  

Nabors Industries

  

613,791

  

6,162,462

  

Noble

  

512,654

a

6,905,449

  

Oceaneering International

  

210,700

  

8,853,614

  

Oil States International

  

105,722

b

3,172,717

  

Patterson-UTI Energy

  

315,911

  

4,703,915

  

QEP Resources

  

346,256

  

5,353,118

  

Rowan Cos

  

269,277

  

5,299,371

  

SM Energy

  

142,984

a

4,768,516

  

Superior Energy Services

  

322,593

  

4,567,917

  

10

 

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Energy - 3.5% (continued)

          

Western Refining

  

148,933

  

6,198,591

  

World Fuel Services

  

155,166

  

6,898,680

  

WPX Energy

  

497,654

b

3,413,906

  
       

114,888,720

  

Food & Staples Retailing - .5%

          

Casey's General Stores

  

82,289

  

8,740,738

  

SUPERVALU

  

551,057

b

3,620,444

  

United Natural Foods

  

105,990

b

5,347,196

  
       

17,708,378

  

Food, Beverage & Tobacco - 2.5%

          

Boston Beer, Cl. A

  

20,452

a,b

4,491,055

  

Dean Foods

  

192,519

  

3,486,519

  

Flowers Foods

  

396,512

  

10,705,824

  

Hain Celestial Group

  

215,209

b

10,728,169

  

Ingredion

  

151,270

  

14,379,726

  

Lancaster Colony

  

41,192

  

4,684,354

  

Post Holdings

  

128,713

b

8,272,385

  

Tootsie Roll Industries

  

38,101

a

1,209,326

  

TreeHouse Foods

  

90,682

a,b

7,766,006

  

WhiteWave Foods

  

369,364

b

15,136,537

  
       

80,859,901

  

Health Care Equipment & Services - 7.0%

          

Align Technology

  

153,968

a,b

10,078,745

  

Allscripts Healthcare Solutions

  

396,821

b

5,579,303

  

AmSurg

  

102,675

b

7,196,491

  

Centene

  

251,672

b

14,969,451

  

Community Health Systems

  

250,281

b

7,017,879

  

Cooper

  

102,268

  

15,581,552

  

Halyard Health

  

98,600

b

2,926,448

  

Health Net

  

164,927

b

10,598,209

  

Hill-Rom Holdings

  

121,176

  

6,384,763

  

Hologic

  

515,796

b

20,043,833

  

IDEXX Laboratories

  

195,151

a,b

13,391,262

  

LifePoint Health

  

95,258

b

6,561,371

  

LivaNova

  

89,615

b

5,939,682

  

MEDNAX

  

199,191

b

14,036,990

  

Molina Healthcare

  

85,768

b

5,317,616

  

Owens & Minor

  

134,175

a

4,810,174

  

ResMed

  

297,661

a

17,148,250

  

11

 

STATEMENT OF INVESTMENTS (continued)

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Health Care Equipment & Services - 7.0% (continued)

          

Sirona Dental Systems

  

117,480

b

12,820,592

  

STERIS

  

175,064

a

13,121,047

  

Teleflex

  

87,631

a

11,654,923

  

VCA

  

173,457

b

9,500,240

  

WellCare Health Plans

  

94,595

b

8,381,117

  

West Pharmaceutical Services

  

152,612

  

9,158,246

  
       

232,218,184

  

Household & Personal Products - 1.3%

          

Avon Products

  

922,306

a

3,716,893

  

Church & Dwight

  

276,674

  

23,818,865

  

Edgewell Personal Care

  

131,582

  

11,146,311

  

Energizer Holdings

  

131,582

  

5,635,657

  
       

44,317,726

  

Insurance - 5.3%

          

Alleghany

  

33,887

b

16,817,101

  

American Financial Group

  

152,357

  

10,998,652

  

Arthur J. Gallagher & Co.

  

368,779

  

16,126,706

  

Aspen Insurance Holdings

  

128,941

  

6,267,822

  

Brown & Brown

  

249,480

  

8,050,720

  

CNO Financial Group

  

407,866

  

7,835,106

  

Endurance Specialty Holdings

  

128,461

a

8,109,743

  

Everest Re Group

  

94,479

  

16,814,428

  

First American Financial

  

228,436

  

8,710,265

  

Kemper

  

106,093

  

3,789,642

  

Mercury General

  

77,067

a

4,162,389

  

Old Republic International

  

512,078

  

9,237,887

  

Primerica

  

105,422

a

5,021,250

  

Reinsurance Group of America

  

141,228

  

12,744,415

  

RenaissanceRe Holdings

  

96,711

  

10,602,427

  

StanCorp Financial Group

  

89,240

  

10,237,613

  

The Hanover Insurance Group

  

93,913

  

7,912,170

  

W.R. Berkley

  

209,308

  

11,685,666

  
       

175,124,002

  

Materials - 6.9%

          

Albemarle

  

237,374

  

12,704,256

  

Allegheny Technologies

  

231,198

a

3,398,611

  

AptarGroup

  

131,610

  

9,681,232

  

Ashland

  

142,423

  

15,626,652

  

Bemis

  

205,942

  

9,428,025

  

12

 

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Materials - 6.9% (continued)

          

Cabot

  

136,012

  

4,888,271

  

Carpenter Technology

  

107,801

  

3,590,851

  

Chemours

  

384,183

  

2,662,388

  

Commercial Metals

  

247,393

  

3,555,037

  

Compass Minerals International

  

72,464

  

5,886,975

  

Cytec Industries

  

150,580

  

11,206,164

  

Domtar

  

136,956

  

5,648,065

  

Eagle Materials

  

106,573

  

7,037,015

  

Greif, Cl. A

  

55,157

  

1,808,046

  

Louisiana-Pacific

  

307,652

b

5,433,134

  

Minerals Technologies

  

73,541

  

4,334,507

  

NewMarket

  

22,134

  

8,715,041

  

Olin

  

349,703

a

6,707,304

  

Packaging Corporation of America

  

208,295

  

14,257,793

  

PolyOne

  

188,848

  

6,315,077

  

Reliance Steel & Aluminum

  

155,822

  

9,343,087

  

Royal Gold

  

140,341

  

6,713,913

  

RPM International

  

283,078

  

12,939,495

  

Scotts Miracle-Gro, Cl. A

  

94,120

  

6,226,979

  

Sensient Technologies

  

97,228

  

6,346,072

  

Silgan Holdings

  

87,685

  

4,460,536

  

Sonoco Products

  

212,762

  

9,082,810

  

Steel Dynamics

  

510,703

  

9,432,684

  

United States Steel

  

313,720

a

3,664,250

  

Valspar

  

158,195

  

12,805,885

  

Worthington Industries

  

102,021

  

3,132,045

  
       

227,032,200

  

Media - 1.5%

          

AMC Networks, Cl. A

  

128,679

b

9,508,091

  

Cable One

  

9,356

  

4,055,265

  

Cinemark Holdings

  

223,925

  

7,935,902

  

DreamWorks Animation SKG, Cl. A

  

153,978

a,b

3,116,515

  

John Wiley & Sons, Cl. A

  

104,160

  

5,450,693

  

Live Nation Entertainment

  

307,477

b

8,387,973

  

Meredith

  

79,423

  

3,734,469

  

New York Times, Cl. A

  

275,546

a

3,659,251

  

Time

  

232,040

  

4,311,303

  
       

50,159,462

  

13

 

STATEMENT OF INVESTMENTS (continued)

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Pharmaceuticals, Biotechnology & Life Sciences - 2.1%

          

Akorn

  

166,708

a,b

4,457,772

  

Bio-Rad Laboratories, Cl. A

  

43,797

b

6,108,806

  

Bio-Techne

  

78,713

  

6,942,487

  

Catalent

  

208,251

b

5,535,312

  

Charles River Laboratories International

  

100,344

b

6,546,443

  

Mettler-Toledo International

  

58,739

b

18,267,242

  

PAREXEL International

  

117,011

b

7,385,734

  

United Therapeutics

  

96,585

b

14,162,259

  
       

69,406,055

  

Real Estate - 10.8%

          

Alexander & Baldwin

  

95,357

  

3,598,773

  

Alexandria Real Estate Equities

  

152,443

c

13,680,235

  

American Campus Communities

  

241,250

c

9,787,512

  

BioMed Realty Trust

  

433,084

c

10,138,496

  

Camden Property Trust

  

183,511

c

13,541,277

  

Care Capital Properties

  

175,455

  

5,781,242

  

Communications Sales & Leasing

  

258,037

  

5,183,963

  

Corporate Office Properties Trust

  

199,584

c

4,590,432

  

Corrections Corporation of America

  

251,184

c

7,158,744

  

Douglas Emmett

  

291,258

c

8,897,932

  

Duke Realty

  

729,628

c

15,103,300

  

Equity One

  

156,739

c

4,166,123

  

Extra Space Storage

  

261,322

c

20,707,155

  

Federal Realty Investment Trust

  

145,435

c

20,868,468

  

Highwoods Properties

  

199,888

c

8,685,134

  

Hospitality Properties Trust

  

322,345

c

8,651,740

  

Jones Lang LaSalle

  

94,926

  

15,825,113

  

Kilroy Realty

  

194,699

c

12,818,982

  

Lamar Advertising, Cl. A

  

173,284

  

9,778,416

  

LaSalle Hotel Properties

  

242,922

c

7,144,336

  

Liberty Property Trust

  

314,784

c

10,708,952

  

Mack-Cali Realty

  

187,884

c

4,088,356

  

Mid-America Apartment Communities

  

159,271

c

13,568,296

  

National Retail Properties

  

284,091

c

10,795,458

  

Omega Healthcare Investors

  

340,799

  

11,764,381

  

Post Properties

  

116,301

c

6,947,822

  

Potlatch

  

86,612

c

2,705,759

  

Rayonier

  

272,812

c

6,179,192

  

Regency Centers

  

199,129

c

13,532,807

  

14

 

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Real Estate - 10.8% (continued)

          

Senior Housing Properties Trust

  

505,094

c

7,672,378

  

Sovran Self Storage

  

76,170

c

7,607,098

  

Tanger Factory Outlet Centers

  

202,414

c

7,074,369

  

Taubman Centers

  

129,082

c

9,936,732

  

UDR

  

554,678

c

19,114,204

  

Urban Edge Properties

  

195,334

a

4,637,229

  

Weingarten Realty Investors

  

242,535

c

8,673,052

  

WP GLIMCHER

  

392,332

  

4,558,898

  
       

355,672,356

  

Retailing - 3.8%

          

Aaron's

  

137,557

  

3,393,531

  

Abercrombie & Fitch, Cl. A

  

146,739

a

3,109,399

  

American Eagle Outfitters

  

378,346

a

5,781,127

  

Ascena Retail Group

  

361,743

b

4,818,417

  

Big Lots

  

110,094

  

5,075,333

  

Cabela's

  

105,379

a,b

4,127,695

  

Chico's FAS

  

295,671

  

4,086,173

  

CST Brands

  

163,805

  

5,885,514

  

Dick's Sporting Goods

  

198,869

  

8,859,614

  

Foot Locker

  

295,313

  

20,007,456

  

Guess?

  

134,307

a

2,827,162

  

HSN

  

68,878

  

4,260,104

  

J.C. Penney

  

643,334

a,b

5,899,373

  

LKQ

  

644,020

b

19,069,432

  

Murphy USA

  

85,591

b

5,252,720

  

Office Depot

  

1,037,107

b

7,902,755

  

Rent-A-Center

  

112,109

  

2,061,685

  

Williams-Sonoma

  

178,621

  

13,173,299

  
       

125,590,789

  

Semiconductors & Semiconductor Equipment - 1.9%

          

Advanced Micro Devices

  

1,334,225

a,b

2,828,557

  

Atmel

  

880,202

  

6,689,535

  

Cree

  

219,125

a,b

5,519,759

  

Cypress Semiconductor

  

703,095

b

7,410,621

  

Fairchild Semiconductor International

  

253,279

b

4,224,694

  

Integrated Device Technology

  

319,843

a,b

8,155,997

  

Intersil, Cl. A

  

276,536

  

3,747,063

  

Silicon Laboratories

  

83,567

b

4,175,843

  

SunEdison

  

663,655

a,b

4,844,682

  

15

 

STATEMENT OF INVESTMENTS (continued)

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Semiconductors & Semiconductor Equipment - 1.9% (continued)

          

Synaptics

  

77,994

b

6,636,509

  

Teradyne

  

447,370

  

8,732,662

  
       

62,965,922

  

Software & Services - 9.3%

          

ACI Worldwide

  

245,503

b

5,879,797

  

Acxiom

  

163,747

b

3,622,084

  

ANSYS

  

190,627

b

18,168,659

  

Broadridge Financial Solutions

  

250,865

  

14,946,537

  

Cadence Design Systems

  

618,400

b

13,740,848

  

CDK Global

  

340,798

  

16,968,332

  

CommVault Systems

  

88,846

b

3,600,040

  

Convergys

  

213,474

  

5,479,878

  

CoreLogic

  

190,339

b

7,419,414

  

DST Systems

  

70,498

  

8,611,331

  

FactSet Research Systems

  

87,309

a

15,289,552

  

Fair Isaac

  

66,210

  

6,115,818

  

Fortinet

  

307,638

b

10,570,442

  

Gartner

  

175,763

b

15,936,431

  

Global Payments

  

138,141

  

18,843,814

  

Jack Henry & Associates

  

172,959

  

13,376,649

  

Leidos Holdings

  

135,593

  

7,128,124

  

Manhattan Associates

  

156,295

b

11,386,091

  

MAXIMUS

  

141,703

  

9,664,145

  

Mentor Graphics

  

208,078

  

5,659,722

  

NeuStar, Cl. A

  

117,491

a,b

3,194,580

  

PTC

  

245,753

b

8,709,486

  

Rackspace Hosting

  

251,676

b

6,505,825

  

Rovi

  

187,297

a,b

1,713,768

  

Science Applications International

  

88,315

  

4,050,126

  

SolarWinds

  

140,627

b

8,160,585

  

Solera Holdings

  

144,654

a

7,906,788

  

Synopsys

  

328,861

b

16,436,473

  

Tyler Technologies

  

71,162

b

12,123,158

  

Ultimate Software Group

  

60,454

b

12,353,775

  

VeriFone Systems

  

240,272

b

7,241,798

  

WEX

  

81,974

b

7,370,282

  
       

308,174,352

  

Technology Hardware & Equipment - 5.1%

          

3D Systems

  

221,507

a,b

2,228,360

  

16

 

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Technology Hardware & Equipment - 5.1% (continued)

          

ARRIS Group

  

285,344

b

8,063,821

  

Arrow Electronics

  

200,296

b

11,014,277

  

Avnet

  

285,103

  

12,952,229

  

Belden

  

90,479

  

5,793,370

  

Ciena

  

248,324

b

5,994,541

  

Cognex

  

183,494

  

6,899,374

  

Diebold

  

137,143

  

5,056,462

  

FEI

  

88,646

  

6,399,355

  

Ingram Micro, Cl. A

  

331,214

  

9,863,553

  

InterDigital

  

78,538

  

3,985,018

  

IPG Photonics

  

76,721

a,b

6,338,689

  

Jabil Circuit

  

408,368

  

9,384,297

  

Keysight Technologies

  

356,231

b

11,784,121

  

Knowles

  

179,331

a,b

2,987,654

  

Lexmark International, Cl. A

  

130,992

  

4,255,930

  

MarketAxess Holdings

  

75,616

  

7,660,657

  

National Instruments

  

214,555

  

6,537,491

  

NCR

  

335,563

b

8,925,976

  

NetScout Systems

  

212,301

b

7,615,237

  

Plantronics

  

74,757

  

4,008,470

  

Polycom

  

281,419

b

3,877,954

  

Tech Data

  

75,006

b

5,459,687

  

Vishay Intertechnology

  

285,699

a

3,028,409

  

Zebra Technologies, Cl. A

  

109,638

b

8,431,162

  
       

168,546,094

  

Telecommunication Services - .2%

          

Telephone & Data Systems

  

200,148

  

5,732,239

  

Transportation - 2.1%

          

Alaska Air Group

  

270,066

  

20,592,532

  

Genesee & Wyoming, Cl. A

  

112,629

b

7,557,406

  

JetBlue Airways

  

657,806

b

16,339,901

  

Kirby

  

117,709

b

7,685,221

  

Landstar System

  

92,523

  

5,832,650

  

Old Dominion Freight Line

  

148,048

b

9,170,093

  

Werner Enterprises

  

95,722

  

2,532,804

  
       

69,710,607

  

Utilities - 4.9%

          

Alliant Energy

  

239,466

  

14,133,283

  

Aqua America

  

373,696

  

10,687,706

  

17

 

STATEMENT OF INVESTMENTS (continued)

           

Common Stocks - 98.5% (continued)

  

Shares

  

Value ($)

  

Utilities - 4.9% (continued)

          

Atmos Energy

  

213,158

  

13,428,954

  

Black Hills

  

94,192

  

4,312,110

  

Cleco

  

127,998

  

6,783,894

  

Great Plains Energy

  

331,779

  

9,123,922

  

Hawaiian Electric Industries

  

227,593

a

6,659,371

  

IDACORP

  

108,337

  

7,242,328

  

MDU Resources Group

  

418,351

  

7,890,100

  

National Fuel Gas

  

178,198

a

9,360,741

  

OGE Energy

  

422,090

  

12,033,786

  

ONE Gas

  

110,845

  

5,413,670

  

PNM Resources

  

168,818

  

4,747,162

  

Questar

  

377,658

  

7,798,638

  

Talen Energy

  

137,897

b

1,196,946

  

UGI

  

365,648

  

13,408,312

  

Vectren

  

177,873

  

8,087,885

  

Westar Energy

  

299,378

  

11,885,307

  

WGL Holdings

  

105,611

  

6,572,173

  
       

160,766,288

  

Total Common Stocks (cost $2,225,945,763)

      

3,254,927,888

  

Short-Term Investments - .1%

 

Principal Amount ($)

  

Value ($)

  

U.S. Treasury Bills

          

0.02%, 3/17/16
(cost $2,464,807)

  

2,465,000

d

2,464,068

  

Total Short-Term Investments (cost $2,464,807)

          

Other Investment - 1.2%

 

Shares

  

Value ($)

  

Registered Investment Company;

          

Dreyfus Institutional Preferred Plus Money Market Fund
(cost $38,685,785)

  

38,685,785

e

38,685,785

  

18

 

           

Investment of Cash Collateral for Securities Loaned - 2.9%

 

Shares

  

Value ($)

  

Registered Investment Company;

          

Dreyfus Institutional Cash Advantage Fund
(cost $95,707,092)

  

95,707,092

e

95,707,092

  

Total Investments (cost $2,362,803,447)

  

102.7%

  

3,391,784,833

  

Liabilities, Less Cash and Receivables

  

(2.7%)

  

(88,368,961)

  

Net Assets

  

100.0%

  

3,303,415,872

  

a Security, or portion thereof, on loan. At October 31, 2015, the value of the fund’s securities on loan was $227,874,253 and the value of the collateral held by the fund was $232,506,881, consisting of cash collateral of $95,707,092 and U.S. Government & Agency securities valued at $136,799,789.

b Non-income producing security.

c Investment in real estate investment trust.

d Held by or on behalf of a counterparty for open financial futures contracts.

e Investment in affiliated money market mutual fund.

   

Portfolio Summary (Unaudited) †

Value (%)

Real Estate

10.8

Capital Goods

10.3

Software & Services

9.3

Health Care Equipment & Services

7.0

Materials

6.9

Banks

6.0

Insurance

5.3

Technology Hardware & Equipment

5.1

Utilities

4.9

Short-Term/Money Market Investments

4.2

Consumer Durables & Apparel

4.1

Retailing

3.8

Energy

3.5

Diversified Financials

3.0

Commercial & Professional Services

3.0

Consumer Services

2.8

Food, Beverage & Tobacco

2.5

Pharmaceuticals, Biotechnology & Life Sciences

2.1

Transportation

2.1

Semiconductors & Semiconductor Equipment

1.9

Media

1.5

Household & Personal Products

1.3

Automobiles & Components

.6

Food & Staples Retailing

.5

Telecommunication Services

.2

 

102.7

† Based on net assets.

See notes to financial statements.

19

 

STATEMENT OF FINANCIAL FUTURES
October 31, 2015

           
 

Contracts

Market Value Covered by Contracts ($)

Expiration

Unrealized Appreciation at 10/31/2015 ($)

  
           

Financial Futures Long

          

E-mini Standard & Poor's Midcap

339

48,863,460

December 2015

1,204,348

  

Gross Unrealized Appreciation

      

1,204,348

  

See notes to financial statements.

20

 

STATEMENT OF ASSETS AND LIABILITIES
October 31, 2015

                 

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments
(including securities on loan, valued at $227,874,253)—Note 1(b):

 

 

 

 

Unaffiliated issuers

 

2,228,410,570

 

3,257,391,956

 

Affiliated issuers

 

134,392,877

 

134,392,877

 

Cash

 

 

 

 

3,612,021

 

Receivable for investment securities sold

 

 

 

 

14,945,388

 

Dividends and securities lending income receivable

 

 

 

 

1,876,383

 

Receivable for shares of Common Stock subscribed

 

 

 

 

1,240,534

 

Receivable for futures variation margin—Note 4

 

 

 

 

9,162

 

Other assets

 

 

 

 

22,705

 

 

 

 

 

 

3,413,491,026

 

Liabilities ($):

 

 

 

 

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

 

 

 

 

1,376,260

 

Liability for securities on loan—Note 1(b)

 

 

 

 

95,707,092

 

Payable for investment securities purchased

 

 

 

 

9,171,017

 

Payable for shares of Common Stock redeemed

 

 

 

 

3,816,655

 

Accrued expenses

 

 

 

 

4,130

 

 

 

 

 

 

110,075,154

 

Net Assets ($)

 

 

3,303,415,872

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

1,947,804,537

 

Accumulated undistributed investment income—net

 

 

 

 

25,105,028

 

Accumulated net realized gain (loss) on investments

 

 

 

 

300,320,573

 

Accumulated net unrealized appreciation (depreciation)
on investments (including $1,204,348 net unrealized
appreciation on financial futures)

 

 

 

 

1,030,185,734

 

Net Assets ($)

 

 

3,303,415,872

 

Shares Outstanding

 

 

  

(200 million shares of $.001 par value Common Stock authorized)

 

87,634,923

 

  

Net Asset Value Per Share ($)

 

37.70

 

  

 

See notes to financial statements.

21

 

STATEMENT OF OPERATIONS
Year Ended October 31, 2015

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Interest

 

 

1,577

 

Cash dividends:

 

 

 

 

Unaffiliated issuers

 

 

51,397,280

 

Affiliated issuers

 

 

53,009

 

Income from securities lending—Note 1(b)

 

 

1,652,278

 

Total Income

 

 

53,104,144

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

8,819,659

 

Shareholder servicing costs—Note 3(b)

 

 

8,819,659

 

Directors’ fees—Note 3(a,c)

 

 

245,859

 

Loan commitment fees—Note 2

 

 

36,783

 

Interest expense—Note 2

 

 

2,870

 

Total Expenses

 

 

17,924,830

 

Less—Directors' fees reimbursed by Dreyfus—Note 3(a)

 

 

(245,859)

 

Net Expenses

 

 

17,678,971

 

Investment Income—Net

 

 

35,425,173

 

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

 

 

Net realized gain (loss) on investments

327,783,684

 

Net realized gain (loss) on financial futures

 

 

3,892,590

 

Net Realized Gain (Loss)

 

 

331,676,274

 

Net unrealized appreciation (depreciation) on investments

 

 

(254,690,926)

 

Net unrealized appreciation (depreciation) on financial futures

 

 

(171,291)

 

Net Unrealized Appreciation (Depreciation)

 

 

(254,862,217)

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

76,814,057

 

Net Increase in Net Assets Resulting from Operations

 

112,239,230

 

See notes to financial statements.

22

 

STATEMENT OF CHANGES IN NET ASSETS

                   
                   

 

 

 

 

Year Ended October 31,

 

 

 

 

2015

 

 

 

2014

 

Operations ($):

 

 

 

 

 

 

 

 

Investment income—net

 

 

35,425,173

 

 

 

34,775,881

 

Net realized gain (loss) on investments

 

331,676,274

 

 

 

190,480,929

 

Net unrealized appreciation (depreciation)
on investments

 

(254,862,217)

 

 

 

147,343,603

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

112,239,230

 

 

 

372,600,413

 

Dividends to Shareholders from ($):

 

 

 

 

 

 

 

 

Investment income—net

 

 

(34,999,103)

 

 

 

(29,701,904)

 

Net realized gain on investments

 

 

(194,304,335)

 

 

 

(126,163,403)

 

Total Dividends

 

 

(229,303,438)

 

 

 

(155,865,307)

 

Capital Stock Transactions ($):

 

 

 

 

 

 

 

 

Net proceeds from shares sold

 

 

830,100,003

 

 

 

802,100,848

 

Dividends reinvested

 

 

203,641,906

 

 

 

140,337,139

 

Cost of shares redeemed

 

 

(1,185,679,890)

 

 

 

(992,963,048)

 

Increase (Decrease) in Net Assets
from Capital Stock Transactions

(151,937,981)

 

 

 

(50,525,061)

 

Total Increase (Decrease) in Net Assets

(269,002,189)

 

 

 

166,210,045

 

Net Assets ($):

 

 

 

 

 

 

 

 

Beginning of Period

 

 

3,572,418,061

 

 

 

3,406,208,016

 

End of Period

 

 

3,303,415,872

 

 

 

3,572,418,061

 

Undistributed investment income—net

25,105,028

 

 

 

24,661,099

 

Capital Share Transactions (Shares):

 

 

 

 

 

 

 

 

Shares sold

 

 

21,585,359

 

 

 

21,370,235

 

Shares issued for dividends reinvested

 

 

5,334,154

 

 

 

3,833,741

 

Shares redeemed

 

 

(30,572,506)

 

 

 

(26,445,797)

 

Net Increase (Decrease) in Shares Outstanding

(3,652,993)

 

 

 

(1,241,821)

 

See notes to financial statements.

23

 

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.

               
         
 

Year Ended October 31,

   

2015

2014

2013

2012

2011

Per Share Data ($):

            

Net asset value, beginning of period

39.13

36.81

29.10

27.46

25.98

Investment Operations:

            

Investment income—neta

.39

.37

.35

.26

.18

Net realized and unrealized gain (loss) on investments

.81

3.64

8.80

2.72

1.91

Total from Investment Operations

1.20

4.01

9.15

2.98

2.09

Distributions:

            

Dividends from investment income—net

  

(.40)

(.32)

(.34)

(.20)

(.22)

Dividends from net realized gain on investments

(2.23)

(1.37)

(1.10)

(1.14)

(.39)

Total Distributions

(2.63)

(1.69)

(1.44)

(1.34)

(.61)

Net asset value, end of period

37.70

39.13

36.81

29.10

27.46

Total Return (%)

2.98

11.21

32.84

11.51

8.00

Ratios/Supplemental Data (%):

          

Ratio of total expenses to average net assets

.51

.51

.51

.51

.51

Ratio of net expenses to average net assets

  

.50

.50

.50

.50

.50

Ratio of net investment income to average net assets

1.00

.98

1.07

.92

.64

Portfolio Turnover Rate

19.45

16.22

10.41

12.76

19.40

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

3,303,416

3,572,418

3,406,208

2,494,980

2,302,143

a Based on average shares outstanding.

See notes to financial statements.

24

 

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Midcap Index Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company. The fund’s investment objective is to seek to match the performance of the Standard & Poor’s® MidCap 400 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 Dreyfus, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

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

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

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

25

 

NOTES TO FINANCIAL STATEMENTS (continued)

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

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

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. For open short positions, asked prices are used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.

Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. U.S. Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service (the “Service”) approved by the fund’s Board of Directors (the “Board”). These securities are generally categorized within Level 2 of the fair value hierarchy.

The Service’s procedures are reviewed by Dreyfus under the general supervision of the Board.

Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American

26

 

Depository Receipts and financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to 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. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

Financial futures, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day and are generally categorized within Level 1 of the fair value hierarchy.

The following is a summary of the inputs used as of October 31, 2015 in valuing the fund’s investments:

27

 

NOTES TO FINANCIAL STATEMENTS (continued)

         
 

Level 1 - Unadjusted Quoted Prices

Level 2 - Other Significant Observable Inputs

Level 3 -Significant Unobservable Inputs

Total

Assets ($)

        

Investments in Securities:

    

Equity Securities—Domestic Common Stocks†

3,248,022,439

–

–

3,248,022,439

Equity Securities—Foreign Common Stocks†

6,905,449

–

–

6,905,449

Mutual Funds

134,392,877

–

–

134,392,877

U.S. Treasury

–

2,464,068

–

2,464,068

Other Financial Instruments:

    

Financial Futures††

1,204,348

–

–

1,204,348

† See Statement of Investments for additional detailed categorizations.

†† Amount shown represents unrealized appreciation at period end.

At October 31, 2015, there were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy.

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

Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus, or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, The Bank of New York Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. During the period ended October 31, 2015,

28

 

The Bank of New York Mellon earned $422,464 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” under the Act. Investments in affiliated investment companies during the period ended October 31, 2015 were as follows:

           

Affiliated Investment Company

Value 10/31/2014 ($)

Purchases ($)

Sales ($)

Value 10/31/2015 ($)

Net Assets (%)

Dreyfus Institutional Preferred Plus Money Market Fund

27,543,002

783,563,580

772,420,797

38,685,785

1.2

Dreyfus Institutional Cash Advantage Fund

145,869,660

771,978,189

822,140,757

95,707,092

2.9

Total

173,412,662

1,555,541,769

1,594,561,554

134,392,877

4.1

(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 October 31, 2015, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended October 31, 2015, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended October 31, 2015 remains subject to examination by the Internal Revenue Service and state taxing authorities.

29

 

NOTES TO FINANCIAL STATEMENTS (continued)

At October 31, 2015, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $25,105,028, undistributed capital gains $328,909,031 and unrealized appreciation $1,001,597,276.

The tax character of distributions paid to shareholders during the fiscal periods ended October 31, 2015 and October 31, 2014 were as follows: ordinary income $41,972,772 and $43,050,248, and long-term capital gains $187,330,666 and $112,815,059, respectively.

During the period ended October 31, 2015, as a result of permanent book to tax differences, primarily due to the tax treatment for dividend reclassification, the fund increased accumulated undistributed investment income-net by $17,859 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $480 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. Prior to October 7, 2015, the unsecured credit facility with Citibank, N.A. was $430 million. 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 October 31, 2015 was approximately $257,800 with a related weighted average annualized interest rate of 1.11%.

NOTE 3—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement (the “Agreement”) with Dreyfus, the management fee is computed at the annual rate of .25% of the value of the fund's average daily net assets and is payable monthly. Under the terms of the Agreement, Dreyfus has agreed to pay all of the fund’s direct expenses, except management fees, Shareholder Services Plan fees, brokerage fees and commissions, taxes, interest expense, commitment fees on borrowings, fees and expenses of non-interested Board members, fees and expenses of independent counsel to the fund and extraordinary expenses. Dreyfus has also agreed to reduce its management fee in an

30

 

amount equal to the fund’s allocable portion of the accrued fees and expenses of the non-interested Board members and fees and expenses of independent counsel to the fund and to non-interested Board members. During the period ended October 31, 2015, fees reimbursed by Dreyfus amounted to $245,859.

(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services, at an 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 (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2015, the fund was charged $8,819,659 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 $696,988 and Shareholder Services Plan fees $696,988, which are offset against an expense reimbursement currently in effect in the amount of $17,716.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended October 31, 2015, amounted to $671,942,238 and $1,034,879,408, respectively.

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund during the period ended October 31, 2015 is discussed below.

Financial Futures: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk, as a result of changes in value of underlying financial instruments. The fund invests in financial futures in order to manage its exposure to or protect against changes in the market. A financial futures contract represents a commitment for the future purchase or a sale of an asset at a specified

31

 

NOTES TO FINANCIAL STATEMENTS (continued)

date. Upon entering into such contracts, these investments require initial margin deposits with a counterparty, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. When the contracts are closed, the fund recognizes a realized gain or loss which is reflected in the Statement of Operations. There is minimal counterparty credit risk to the fund with financial futures since they are exchange traded, and the exchange guarantees the financial futures against default. Financial futures open at October 31, 2015 are set forth in the Statement of Financial Futures.

The following summarizes the average market value of derivatives outstanding during the period ended October 31, 2015:

         
       

Average Market Value ($)

Equity financial futures

      

52,413,403

At October 31, 2015, the cost of investments for federal income tax purposes was $2,390,187,557; accordingly, accumulated net unrealized appreciation on investments was $1,001,597,276, consisting of $1,188,972,965 gross unrealized appreciation and $187,375,689 gross unrealized depreciation.

NOTE 5—Pending Legal Matters:

The fund and dozens of other entities and individuals have been named as defendants in an adversary proceeding pending in the United States Bankruptcy Court for the Southern District of New York (Weisfelner, as Trustee of the LB Creditor Trust v. Fund 1, et al., Adv. Pro. No. 10-04609). The complaint alleges that payments made to shareholders of Lyondell Chemical Company (“Lyondell”) in connection with the acquisition of Lyondell by Basell AF S.C.A. in a cash-out merger in or around December, 2007 constituted constructive and/or intentional “fraudulent transfers” under applicable state law and seeks to recover from the former Lyondell shareholders the payments received for the shares.

On January 14, 2014, the Court issued a decision and order granting in part, and denying in part, defendants’ motion to dismiss the complaint. On April 9, 2014, plaintiff filed a Third Amended Complaint continuing to assert constructive and intentional fraudulent transfer claims under applicable state law. On August 1, 2014, defendants moved to dismiss the Third Amended Complaint, and oral arguments on the motion were held on January 14, 2015. On November 18, 2015, the Court granted

32

 

defendants’ motion to dismiss the intentional fraudulent transfer claim, and denied the motion to dismiss the constructive fraudulent transfer claim.

At this stage in the proceedings, it is not possible to assess with any reasonable certainty the probable outcome of the pending litigation. Consequently, at this time, management is unable to estimate the possible loss that may result.

33

 

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Dreyfus Midcap Index Fund, Inc.

We have audited the accompanying statement of assets and liabilities of Dreyfus Midcap Index Fund, Inc., including the statements of investments and financial futures, as of October 31, 2015, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2015 by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Midcap Index Fund, Inc. at October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
December 29, 2015

34

 

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund hereby reports 100% of the ordinary dividends paid during the fiscal year ended October 31, 2015 as qualifying for the corporate dividends received deduction. For the fiscal year ended October 31, 2015, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $36,818,084 represents the maximum amount that may be considered qualified dividend income. Shareholders will receive notification in early 2016 of the percentage applicable to the preparation of their 2015 income tax returns. Also, the fund hereby designates $2.1187 per share as a long-term capital gain distribution and $.0800 per share as a short-term capital gain distribution paid on December 29, 2014 and the fund also reports $.0280 per share as a long-term capital gain distribution paid on March 24, 2015.

35

 

BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (72)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

· Corporate Director and Trustee (1995-present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (1997-present)

· The Newark Group, a provider of a national market of paper recovery facilities, paperboard mills and paperboard converting plants, Director (2000-2010)

No. of Portfolios for which Board Member Serves: 140

———————

Peggy C. Davis (72)

Board Member (2006)

Principal Occupation During Past 5 Years:

· Shad Professor of Law, New York University School of Law (1983-present)

No. of Portfolios for which Board Member Serves: 51

———————

David P. Feldman (75)

Board Member (1989)

Principal Occupation During Past 5 Years:

· Corporate Director and Trustee (1985-present)

Other Public Company Board Memberships During Past 5 Years:

· BBH Mutual Funds Group (5 registered mutual funds), Director (1992-2014)

No. of Portfolios for which Board Member Serves: 37

———————

Ehud Houminer (75)

Board Member (1996)

Principal Occupation During Past 5 Years:

· Executive-in-Residence at the Columbia Business School, Columbia

University (1992-present)

Other Public Company Board Memberships During Past 5 Years:

· Avnet, Inc., an electronics distributor, Director (1993-2012)

No. of Portfolios for which Board Member Serves: 61

———————

36

 

Lynn Martin (75)

Board Member (2012)

Principal Occupation During Past 5 Years:

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

Other Public Company Board Memberships During Past 5 Years:

· AT&T, Inc., a telecommunications company, Director (1999-2012)

· Ryder System, Inc., a supply chain and transportation management company, Director (1993-2012)

No. of Portfolios for which Board Member Serves: 37

———————

Robin A. Melvin (52)

Board Member (2012)

Principal Occupation During Past 5 Years:

· Co-chairman, Illinois Mentoring Partnership, non-profit organization dedicated to increasing the quantity and quality of mentoring services in Illinois; (2014-present; a board member since 2013)

· Director, Boisi Family Foundation, a private family foundation that supports youth-serving organizations that promote the self sufficiency of youth from disadvantaged circumstances (1995-2012)

No. of Portfolios for which Board Member Serves: 111

———————

Dr. Martin Peretz (76)

Board Member (2006)

Principal Occupation During Past 5 Years:

· Editor-in-Chief Emeritus of The New Republic Magazine (2011-2012) (previously,

Editor-in-Chief, 1974-2011)

· Director of TheStreet.com, a financial information service on the web (1996-2010)

· Lecturer at Harvard University (1969-2012)

No. of Portfolios for which Board Member Serves: 37

———————

Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80. The address of the Board Members and Officers is c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board Members is available in the fund's Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-DREYFUS.

James F. Henry, Emeritus Board Member
Dr. Paul A Marks, Emeritus Board Member
Philip L. Toia, Emeritus Board Member

37

 

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since January 2010.

Chief Operating Officer and a director of the Manager since June 2009, Chairman of Dreyfus Transfer, Inc., an affiliate of the Manager and the transfer agent of the funds, since May 2011 and Executive Vice President of the Distributor since June 2007. From April 2003 to June 2009, Mr. Skapyak was the head of the Investment Accounting and Support Department of the Manager. He is an officer of 66 investment companies (comprised of 140 portfolios) managed by the Manager. He is 56 years old and has been an employee of the Manager since February 1988.

BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015

Chief Legal Officer of the Manager since June 2015; from June 2005 to June 2015, Director and Associate General Counsel of Deutsche Bank – Asset & Wealth Management Division, and Chief Legal Officer of Deutsche Investment Management Americas Inc. He is an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2015.

JANETTE E. FARRAGHER, Vice President and Secretary since December 2011.

Assistant General Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 52 years old and has been an employee of the Manager since February 1984.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 59 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since June 2000.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Senior Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since February 1991.

MAUREEN E. KANE, Vice President and Assistant Secretary since April 2015.

Managing Counsel of BNY Mellon since July 2014; from October 2004 until July 2014, General Counsel, and from May 2009 until July 2014, Chief Compliance Officer of Century Capital Management. She is an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 53 years old and has been an employee of the Manager since July 2014.

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

Senior Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager; from August 2005 to March 2013, Associate General Counsel of Third Avenue Management. She is 40 years old and has been an employee of the Manager since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Senior Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since April 1985.

38

 

RICHARD CASSARO, Assistant Treasurer since January 2008.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 56 years old and has been an employee of the Manager since September 1982.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1991.

ROBERT S. ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since October 1988.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since June 1989.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (67 investment companies, comprised of 165 portfolios). He is 58 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

39

 

NOTES

40

 

NOTES

41

 

For More Information

Dreyfus Midcap Index Fund, Inc.
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
The Bank of New York Mellon
225 Liberty Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166

Distributor
MBSC Securities Corporation
200 Park Avenue
New York, NY 10166

   

Ticker Symbol:  PESPX

Telephone Call your financial representative or 1-800-DREYFUS

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 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 www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (phone 1-800-SEC-0330 for information).

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 www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.

   

© 2015 MBSC Securities Corporation
0113AR1015

 
 

 

Item 2.             Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3.             Audit Committee Financial Expert.

The Registrant's Board has determined that David P. Feldman, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC").  David P. Feldman is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4.             Principal Accountant Fees and Services.

 

(a)  Audit Fees.  The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $32,226 in 2014 and $33,031 in 2015.

 

(b)  Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $12,120 in 2014 and $6,273 in 2015. These services consisted of one or more of the following: (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended, (iii) advisory services as to the accounting or disclosure treatment of Registrant transactions or events and (iv) advisory services to the accounting or disclosure treatment of the actual or potential impact to the Registrant of final or proposed rules, standards or interpretations by the Securities and Exchange Commission, the Financial Accounting Standards Boards or other regulatory or standard-setting bodies.

 

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2014 and $0 in 2015.

 

(c)  Tax Fees.  The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $3,578 in 2014 and $3,369 in 2015. These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies. The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2014 and $0 in 2015.

 

 

(d)  All Other Fees.  The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $2,228 in 2014 and $1,134 in 2015. These services consisted of a review of the Registrant's anti-money laundering program.

 

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were $0 in 2014 and $0 in 2015.

 

(e)(1) Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. The pre-approved services in the Policy can include pre-approved audit services, pre-approved audit-related services, pre-approved tax services and pre-approved all other services.  Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence.  Pre-approvals pursuant to the Policy are considered annually.

(e)(2) Note: None of the services described in paragraphs (b) through (d) of this Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f) None of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal account's full-time, permanent employees.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $26,822,186 in 2014 and $19,591,507 in 2015.

 

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.

 

Item 5.             Audit Committee of Listed Registrants.

                        Not applicable.  [CLOSED-END FUNDS ONLY]

Item 6.             Investments.

(a)                    Not applicable.

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

                        Not applicable.  [CLOSED-END FUNDS ONLY]

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

Not applicable.  [CLOSED-END FUNDS ONLY, beginning with reports for periods ended on and after December 31, 2005]

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)   Code of ethics referred to in Item 2.

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

(a)(3)   Not applicable.

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

 

 

 

SIGNATURES

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

Dreyfus Midcap Index Fund, Inc.

 

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date: December 22, 2015

 

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: December 22, 2015

 

By:       /s/ James Windels

            James Windels,

            Treasurer

 

Date: December 22, 2015

 

 

EXHIBIT INDEX

(a)(1)   Code of ethics referred to in Item 2.

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

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