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PROSPECTUS MAY 1, 1995
DREYFUS STOCK INDEX FUND
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DREYFUS STOCK INDEX FUND (THE "FUND") IS AN OPEN-END,
NON-DIVERSIFIED, MANAGEMENT INVESTMENT COMPANY, KNOWN AS A MUTUAL FUND, THAT
IS INTENDED TO BE A FUNDING VEHICLE FOR VARIABLE ANNUITY CONTRACTS AND
VARIABLE LIFE INSURANCE POLICIES TO BE OFFERED BY THE SEPARATE ACCOUNTS OF
LIFE INSURANCE COMPANIES (THE "PARTICIPATING INSURANCE COMPANIES").
THE FUND'S GOAL IS TO PROVIDE INVESTMENT RESULTS THAT CORRESPOND TO
THE PRICE AND YIELD PERFORMANCE OF PUBLICLY TRADED COMMON STOCKS IN THE
AGGREGATE, AS REPRESENTED BY THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE
INDEX. IN ANTICIPATION OF TAKING A MARKET POSITION, THE FUND IS PERMITTED TO
PURCHASE AND SELL STOCK INDEX FUTURES. THE FUND IS NEITHER SPONSORED BY NOR
AFFILIATED WITH STANDARD & POOR'S CORPORATION.
WELLS FARGO NIKKO INVESTMENT ADVISORS ("WFNIA") SERVES AS THE
FUND'S INDEX FUND MANAGER.
THE DREYFUS CORPORATION ("DREYFUS") SERVES AS THE FUND'S
ADMINISTRATOR.
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THIS PROSPECTUS SETS FORTH CONCISELY INFORMATION ABOUT THE FUND
THAT YOU SHOULD KNOW BEFORE INVESTING. IT SHOULD BE READ AND RETAINED FOR
FUTURE REFERENCE.
THE STATEMENT OF ADDITIONAL INFORMATION, DATED MAY 1, 1995, WHICH
MAY BE REVISED FROM TIME TO TIME, PROVIDES A FURTHER DISCUSSION OF CERTAIN
AREAS IN THIS PROSPECTUS AND OTHER MATTERS WHICH MAY BE OF INTEREST TO SOME
INVESTORS. IT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND
IS INCORPORATED HEREIN BY REFERENCE. FOR A FREE COPY, WRITE TO THE FUND AT
144 GLENN CURTISS BOULEVARD, UNIONDALE, NEW YORK 11556-0144, OR CALL (516)
338-3300.
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MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY
OTHER AGENCY. THE NET ASSET VALUE OF FUNDS OF THIS TYPE WILL FLUCTUATE FROM
TIME TO TIME.
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<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
Page
CONDENSED FINANCIAL INFORMATION................................................ 2
DESCRIPTION OF THE FUND........................................................ 2
MANAGEMENT OF THE FUND......................................................... 5
HOW TO BUY FUND SHARES......................................................... 7
HOW TO REDEEM FUND SHARES...................................................... 7
SHAREHOLDER SERVICES PLAN...................................................... 8
DIVIDENDS, DISTRIBUTIONS AND TAXES............................................. 8
PERFORMANCE INFORMATION........................................................ 9
GENERAL INFORMATION............................................................ 9
</TABLE>
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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CONDENSED FINANCIAL INFORMATION
The information in the following table has been audited by Coopers
& Lybrand L.L.P., the Fund's independent accountants, whose report thereon
appears in the Statement of Additional Information. Further financial data
and related notes are included in the Statement of Additional Information,
available upon request.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share
of Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements. The Fund's
total investment return shown below does not include expenses charged a
separate account or related insurance policy by a Participating Insurance
Company, inclusion of which would reduce the Fund's total investment return
for each period indicated.
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, FOUR MONTHS ENDED YEAR ENDED
------------------------------
DECEMBER 31, DECEMBER 31,
--------------
PER SHARE DATA: 1990(1) 1991 1992 1992 1993 1994
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year....................... $12.50 $11.62 $14.20 $14.87 $15.32 $13.20
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net.................................... .38 .39 .37 .13 .37 .32
Net realized and unrealized gain (loss) on investments... (.95) 2.60 .68 .77 1.04 (.21)
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS......................... (.57) 2.99 1.05 .90 1.41 .11
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net..................... (.31) (.39) (.38) (.21) (.34) (.31)
Dividends in excess of investment income-net............. -_ -_ -_ -_ (.03) -_
Dividends from net realized gain on investments.......... -_ (.02) -_ (.24) (3.00) -_
Dividends in excess of net realized gain on investments.. -_ -_ -_ ._ (.16) (.06)
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS...................................... (.31) (.41) (.38) (.45) (3.53) (.37)
------- ------- ------- ------- ------- -------
Net asset value, end of year............................. $11.62 $14.20 $14.87 $15.32 $13.20 $12.94
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (4.73%)(2) 26.26% 7.49% 6.05%(2) 9.33% .88%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. .37%(2) .40% .40% .13%(2) .40% .40%
Ratio of net investment income to average net assets..... 3.12%(2) 3.05% 2.63% .85%(2) 2.38% 2.56%
Decrease reflected in above expense ratios due to
undertakings by WFNIA and Dreyfus........................ .17%(2) .11% .13% .03%(2) .27% .16%
Portfolio Turnover Rate.................................. .99%(2) 1.02% 7.66% 6.94%(2) 71.71% 2.82%
Net Assets, end of year (000's Omitted).................. $48,184 $62,400 $74,446 $70,072 $61,319 $96,806
</TABLE>
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(1) From September 29, 1989 (commencement of operations) to August 31, 1990.
(2) Not annualized.
Further information about the Fund's performance is contained in
the Fund's annual report, which may be obtained without charge by writing to
the address or calling the number set forth on the cover page of this
Prospectus.
DESCRIPTION OF THE FUND
GENERAL _ The Fund is intended to be a funding vehicle for variable annuity
contracts ("VA contracts") and variable life insurance policies ("VLI
policies") to be offered by the Participating Insurance Companies. The Fund
currently does not foresee any disadvantages to the holders of VA contracts
and VLI policies arising from the fact that the interests of the holders of
such contracts and policies may differ. Nevertheless, the Fund's Directors
intend to monitor events in order to identify any material conflicts which
may arise and to determine what action, if any, should be taken in response
thereto. The VA contracts and the VLI policies are described in the separate
prospectuses issued by the Participating Insurance Companies over which the
Fund assumes no responsibility.
Individual VA contract holders and VLI policy holders are not the
"shareholders" of the Fund. Rather, the Participating Insurance Companies and
their separate accounts are the shareholders (the "shareholders"), although
such companies may pass through voting rights to their VA contract holders
and VLI policy holders.
INVESTMENT OBJECTIVE -- The Fund's investment objective is to provide
investment results that correspond to the price and yield performance of
publicly traded common stocks in the aggregate, as represented by the
Standard &
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*"Standard & Poor's 500," "S&P 500(Registration Mark)" are trademarks of
Standard & Poor's Corporation and have been licensed for use. The Fund is not
sponsored, endorsed, sold or promoted by Standard & Poor's Corporation.
Page 2
Poor's 500 Composite Stock Price Index* (the "Index"). The Fund's
investment objective cannot be changed without approval by the holders of a
majority (as defined in the Investment Company Act of 1940) of the Fund's
outstanding voting shares. There can be no assurance that the Fund's
investment objective will be achieved.
MANAGEMENT POLICIES -- The Fund attempts to duplicate the investment results
of the Index, which is composed of 500 selected common stocks, most of which
are listed on the New York Stock Exchange. Standard & Poor's Corporation
chooses the stocks to be included in the Index solely on a statistical basis.
The Fund attempts to be fully invested at all times in the stocks that
comprise the Index and stock index futures as described below and, in any
event, at least 80% of the Fund's net assets will be so invested. Inclusion
of a stock in the Index in no way implies an opinion by Standard & Poor's
Corporation as to its attractiveness as an investment. The Fund uses the
Index as the standard performance comparison because it represents
approximately 70% of the total market value of all common stocks and is well
known to investors. An investment in the Fund involves risks similar to those
of investing in common stocks.
The weightings of stocks in the Index are based on each stock's
relative total market capitalization; that is, its market price per share
times the number of shares outstanding. Because of this weighting, as of
December 31, 1994, approximately 46% of the Index was composed of the 50
largest companies. WFNIA generally selects stocks for the Fund's portfolio in
the order of their weightings in the Index beginning with the heaviest
weighted stocks. With respect to the Fund's assets invested in the stocks in
the Index, the percentage of such assets invested in each stock is
approximately the same as the percentage it represents in the Index.
No attempt is made to manage the portfolio in the traditional sense
using economic, financial and market analysis. The Fund is managed using a
computer program to determine which stocks are to be purchased or sold to
replicate the Index to the extent feasible. From time to time, administrative
adjustments may be made in the Fund's portfolio because of changes in the
composition of the Index, but such changes should be infrequent.
The Fund believes that the indexing approach described above is an
effective method of substantially duplicating percentage changes in the
Index. It is a reasonable expectation that there will be a close correlation
between the Fund's performance and that of the Index in both rising and
falling markets. The Fund will attempt to achieve a correlation between the
performance of its portfolio and that of the Index of at least 0.95, without
taking into account expenses. A correlation of 1.00 would indicate perfect
correlation, which would be achieved when the Fund's net asset value,
including the value of its dividends and capital gains distributions,
increases or decreases in exact proportion to changes in the Index. The
Fund's ability to correlate its performance with the Index, however, may be
affected by, among other things, changes in securities markets, the manner in
which the Index is calculated by Standard & Poor's Corporation and the timing
of purchases and redemptions. In the future, the Board of Directors, subject
to the approval of shareholders, may select another index if such a standard
of comparison is deemed to be more representative of the performance of
common stocks.
The Fund's ability to duplicate the performance of the Index also
depends to some extent on the size of the Fund's portfolio and the size of
cash flows into and out of the Fund. Investment changes to accommodate these
cash flows are made to maintain the similarity of the Fund's portfolio to the
Index to the maximum practicable extent.
From time to time, to increase its income, the Fund may lend
securities from its portfolio to brokers, dealers and other financial
institutions needing to borrow securities to complete certain transactions.
Such loans may not exceed 30% of the value of the Fund's total assets. In
connection with such loans, the Fund receives collateral consisting of cash,
U.S. Government securities or irrevocable letters of credit. Such collateral
is maintained at all times in an amount equal to at least 100% of the current
market value of the loaned securities. The Fund continues to be entitled to
payments in amounts equal to the dividends, interest or other distributions
payable on the loaned security and receives interest on the amount of the
loan. Such loans are terminable at any time upon specified notice. The Fund
might experience risk of loss if the institution with which it has engaged in
a portfolio loan transaction breaches its agreement with the Fund.
When the Fund has cash reserves, the Fund may invest in U.S.
Government securities, repurchase agreements, time deposits, certificates of
deposit, bankers' acceptances and high-grade commercial paper. See the
Page 3
Fund's
Statement of Additional Information for a description of these instruments.
The Fund also may purchase stock index futures in anticipation of taking a
market position when, in the opinion of WFNIA, available cash balances do not
permit an economically efficient trade in the cash market. The Fund also may
sell stock index futures to terminate existing positions it may have as a
result of its purchases of stock index futures. Futures transactions involve
so-called "derivative securities."
STOCK INDEX FUTURES -- A stock index future obligates the seller to deliver
(and the purchaser to take) an amount of cash equal to a specific dollar
amount times the difference between the value of a specific stock index at
the close of the last trading day of the contract and the price at which the
agreement is made. No physical delivery of the underlying stocks in the index
is made. The Fund purchases and sells futures contracts on the stock index
for which it can obtain the best price with consideration also given to liquid
ity.
Initially, when purchasing or selling futures contracts, the Fund
is required to deposit with its custodian in the broker's name an amount of
cash or cash equivalents up to approximately 10% of the contract amount. This
amount is subject to change by the exchange or board of trade on which the
contract is traded and members of such exchange or board of trade may impose
their own higher requirements. This amount is known as "initial margin" and
is in the nature of a performance bond or good faith deposit on the contract
which is returned to the Fund upon termination of the futures position,
assuming all contractual obligations have been satisfied. Subsequent
payments, known as "variation margin," to and from the broker, are made daily
as the price of the index or securities underlying the futures contract
fluctuates, making the long and short positions in the futures contract more
or less valuable, a process known as "marking-to-market." At any time prior
to the expiration of a futures contract, the Fund may elect to close the
position by taking an opposite position at the then prevailing price, which
will operate to terminate the Fund's existing position in the contract.
Using futures in anticipation of market transactions involves
certain risks. Although the Fund intends to purchase or sell futures
contracts only if there is an active market for such contracts, no assurance
can be given that a liquid market will exist for any particular contract at
any particular time. In addition, the price of stock index futures may not
correlate perfectly with the movement in the stock index due to certain
market distortions. First, all participants in the futures market are subject
to margin deposit and maintenance requirements. Rather than meeting
additional margin deposit requirements, investors may close futures contracts
through offsetting transactions which would distort the normal relationship
between the index and futures markets. Secondly, from the point of view of
speculators, the deposit requirements in the futures market are less onerous
than margin requirements in the securities market. Therefore, increased
participation by speculators in the futures market also may cause temporary
price distortions. Because of the possibility of price distortions in the
futures market and the imperfect correlation between movements in the stock
index and movements in the price of stock index futures, a correct forecast
of general market trends still may not result in a successful hedging
transaction.
The Fund is not a commodity pool. The Fund's commodity transactions
must constitute bona fide hedging or other permissible transactions pursuant
to regulations promulgated by the Commodity Futures Trading Commission. In
addition, the Fund may not engage in such transactions if the amount of
initial margin deposits, other than for bona fide hedging transactions, would
exceed 5% of the liquidation value of the Fund's assets, after taking into
account unrealized profits and losses on such contracts it has entered into.
In connection with its futures transactions, the Fund will establish and
maintain at its custodian bank a segregated account consisting of cash or
high quality money market instruments in an amount equal to the market value
of the underlying commodity less any amount deposited as margin.
CERTAIN FUNDAMENTAL POLICIES -- The Fund may: (i) invest up to 5% of its
assets in securities of any company having less than three years' continuous
operation (including operations of any predecessors); (ii) borrow money from
banks (which, if permitted by applicable regulatory authority, may be from
Wells Fargo Institutional Trust Company, N.A. or Wells Fargo Bank, N.A.,
affiliates of WFNIA), but only for temporary or emergency (not leveraging)
purposes in an amount up to 5% of the value of the Fund's total assets
(including the amount borrowed) valued at the lesser of cost or market, less
liabilities (not including the amount borrowed) at the time the borrowing is
made; (iii) pledge, hypothecate, mortgage or otherwise encumber its assets,
Page 4
but only in an amount up to 10% of the value of its total assets to secure
borrowings for temporary or emergency purposes. Collateral arrangements with
respect to initial or variation margin for futures contracts will not be
deemed to be pledges of the Fund's assets; (iv) invest up to 25% of its
assets in the securities of issuers in a single industry (or more to the
extent the Index also is so concentrated); (v) invest up to 10% of its total
assets in time deposits maturing from two business days through seven
calendar days; and (vi) invest up to 10% of its net assets in repurchase
agreements providing for settlement in more than seven days after notice and
in securities that are not readily marketable. This paragraph describes
fundamental policies that cannot be changed without approval of the holders
of a majority (as defined in the Investment Company Act of 1940) of the
Fund's outstanding voting shares. See "Investment Objective and Management
Policies_Investment Restrictions" in the Fund's Statement of Additional
Information.
INVESTMENT CONSIDERATIONS _ The Fund's classification as a "non-diversified"
investment company means that the proportion of the Fund's assets that may be
invested in the securities of a single issuer is not limited by the
Investment Company Act of 1940. A "diversified" investment company is
required by the Investment Company Act of 1940 generally, with respect to 75%
of its total assets, to invest not more than 5% of such assets in the
securities of a single issuer and to hold not more than 10% of the voting
securities of any single issuer. However, the Fund intends to conduct its
operations so as to qualify as a "regulated investment company" for purposes
of the Internal Revenue Code of 1986, as amended (the "Code"), which requires
that, at the end of each quarter of its taxable year, (i) at least 50% of the
market value of the Fund's total assets be invested in cash, U.S. Government
securities, the securities of other regulated investment companies and other
securities, with such other securities of any one issuer limited for the
purposes of this calculation to an amount not greater than 5% of the value of
the Fund's total assets and 10% of the outstanding voting securities of such
issuer, and (ii) not more than 25% of the value of its total assets be
invested in the securities of any one issuer (other than U. S . Government
securities or the securities of other regulated investment companies). Since
a relatively high percentage of the Fund's assets may be invested in the
securities of a limited number of issuers, some of which may be within the
same economic sector, the Fund's portfolio securities may be more susceptible
to any single economic, political or regulatory occurrence than the portfolio
securities of a diversified investment company.
Since the stocks of some foreign issuers are included in the Index,
the Fund's portfolio may contain securities of such foreign issuers which may
subject the Fund to additional investment risks with respect to those
securities that are different in some respects from those incurred by a fund
which invests only in securities of domestic issuers. Such risks include
future political and economic developments, the possible imposition of
withholding taxes on income payable on the securities, the possible establishm
ent of exchange controls or the adoption of other foreign governmental
restrictions which might adversely affect an investment in these securities
and the possible seizure or nationalization of foreign deposits.
Investment decisions for the Fund are made independently from those
of the other accounts and investment companies that may be managed by WFNIA.
However, if such other accounts or investment companies are prepared to
invest in, or desire to dispose of, securities in which the Fund invests at
the same time as the Fund, available investments or opportunities for sales
will be allocated equitably to each. In some cases, this procedure may
adversely affect the size of the position obtained for or disposed of by the
Fund or the price paid or received by the Fund.
MANAGEMENT OF THE FUND
INDEX FUND MANAGER -- WFNIA, located at 45 Fremont Street, San Francisco,
California 94105, is the index fund manager. WFNIA was organized and
registered as an investment adviser on April 3, 1990. Pursuant to an Index
Management Agreement with the Fund, WFNIA manages the investment of the
Fund's assets, subject to the supervision of the Fund's Board of Directors
and in conformity with Maryland law and the stated policies of the Fund.
WFNIA is responsible for placing purchase and sale orders and providing
continuous supervision of the investment portfolio. WFNIA also serves as
index fund manager of Dreyfus Edison Electric Index Fund, Inc. and Peoples
Index Fund, Inc.
Page 5
On April 3, 1990, Wells Fargo & Company, Wells Fargo Bank, N.A. and
Wells Fargo Investment Advisors ("WFIA"), the predecessor index manager of
the Fund, signed an agreement with The Nikko Securities Co., Ltd. and an
affiliate ("Nikko") pursuant to which the assets and business of WFIA
relevant to its performance as index fund manager were transferred to WFNIA.
WFIA and Nikko each own 50% of WFNIA. WFNIA, one of the world's largest
managers of index funds, is responsible for managing or providing investment
advice for assets aggregating in excess of $158 billion as of December 31,
1994.
Pursuant to the terms of the Index Management Agreement, the Fund
has agreed to pay WFNIA a monthly fee at the annual rate of .15 of 1% of the
value of the Fund's average daily net assets. For the fiscal year ended
December 31, 1994, the Fund paid WFNIA a monthly index management fee at the
effective annual rate of .07 of 1% of the value of the Fund's average daily
net assets, pursuant to an undertaking in effect (see "Expenses" below).
ADMINISTRATOR _ Dreyfus, located at 200 Park Avenue, New York, New York
10166, serves as the Fund's administrator. Dreyfus is a wholly-owned
subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon
Bank Corporation ("Mellon"). Dreyfus generally assists in all aspects of the
Fund's operations, other than providing index management or investment
advice, under an Administration Agreement with the Fund, subject to the
overall authority of the Fund's Directors in accordance with Maryland law.
Dreyfus was organized in 1947 and, as of January 31, 1994, managed or
administered approximately $70 billion in assets for more than 1.9 million
investor accounts nationwide.
Mellon is a publicly owned multibank holding company incorporated
under Pennsylvania law in 1971 and registered under the Federal Bank Holding
Company Act of 1956, as amended. Mellon provides a comprehensive range of
financial products and services in domestic and selected international
markets. Mellon is among the twenty-five largest bank holding companies in
the United States based on total assets. Mellon's principal wholly-owned
subsidiaries are Mellon Bank, N.A., Mellon Bank (DE) National Association,
Mellon Bank (MD), The Boston Company, Inc., AFCO Credit Corporation and a
number of companies known as Mellon Financial Services Corporations. Through
its subsidiaries, including Dreyfus, Mellon managed approximately $193
billion in assets as of December 31, 1994, including approximately $70
billion in mutual fund assets. As of September 30, 1994, Mellon, through
various subsidiaries, provided non-investment services, such as custodial or
administration services, for approximately $654 billion in assets, including
approximately $74 billion in mutual fund assets.
Pursuant to the terms of the Administration Agreement, the Fund has
agreed to pay Dreyfus a monthly fee at the annual rate of .15 of 1% of the
value of the Fund's average daily net assets. For the fiscal year ended
December 31, 1994, the Fund paid Dreyfus a monthly administration fee at the
effective annual rate of .07 of 1% of the value of the Fund's average daily
net assets, pursuant to an undertaking in effect (see "Expenses" below).
CUSTODIAN AND TRANSFER AND DIVIDEND DISBURSING AGENT -- Wells Fargo
Institutional Trust Company, N.A., 45 Fremont Street, San Francisco,
California 94105 ("WFITC"), is the custodian of the Fund's investments. WFITC
is owned by WFNIA and Wells Fargo & Company.
The Shareholder Services Group, Inc., a subsidiary of First Data
Corporation, P.O. Box 9671, Providence, Rhode Island 02940-9671, is the
Fund's Transfer and Dividend Disbursing Agent (the "Transfer Agent").
DISTRIBUTOR -- The Fund's distributor is Premier Mutual Fund Services, Inc.
(the "Distributor"), located at One Exchange Place, Boston, Massachusetts
02109. The Distributor is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc.
EXPENSES _ All expenses incurred in the operation of the Fund are borne by
the Fund, except to the extent specifically assumed by WFNIA and/or Dreyfus.
The expenses borne by the Fund include the following: organizational costs,
taxes, interest, brokerage fees and commissions, if any, fees of Directors
who are not officers, directors, employees or holders, directly or
indirectly, of 5% or more of the outstanding voting securities of WFNIA or
Dreyfus or their affiliates, Securities and Exchange Commission fees, state
Blue Sky qualification fees, index management and administration fees,
charges of custodians, transfer and dividend disbursing
Page 6
agents' fees, certain
insurance premiums, industry association fees, outside auditing and legal
expenses, costs of independent pricing services, costs of maintaining
corporate existence, costs attributable to investor services (including,
without limitation, telephone and personnel expenses), costs of shareholders'
reports and corporate meetings, costs of preparing and printing prospectuses
and statements of additional information for regulatory purposes and for
distribution to existing shareholders, and any extraordinary expenses.
WFNIA and Dreyfus have undertaken that, until such time as they
give shareholders at least 180 days' notice to the contrary, if in any fiscal
year the aggregate expenses of the Fund (excluding brokerage commissions,
transaction fees and extraordinary expenses) exceed .40 of 1% of the value of
the Fund's average net assets for the fiscal year, the Fund may deduct from
the payments to be made to WFNIA and Dreyfus, or WFNIA and Dreyfus will bear,
such excess expense. In addition, from time to time, WFNIA and/or Dreyfus or
one of their affiliates may waive receipt of their fees and/or voluntarily
assume certain expenses of the Fund which would have the effect of lowering
the overall expense ratio of the Fund and increasing yield to investors at
the time such amounts are waived or assumed, as the case may be. The Fund
will not pay WFNIA and/or Dreyfus or their affiliates at a later time for any
amounts which may be waived, nor will the Fund reimburse WFNIA and/or Dreyfus
or their affiliates for any amounts which may be assumed.
Dreyfus may pay the Distributor for shareholder services from
Dreyfus' own assets, including past profits but not including the
administration fee paid by the Fund. The Distributor may use part or all of
such payments to pay securities dealers or others in respect of these
services.
HOW TO BUY FUND SHARES
Separate accounts of the Participating Insurance Companies place
orders based on, among other things, the amount of premium payments to be
invested pursuant to VA contracts and VLI policies. Individuals may not place
orders directly with the Fund. See the prospectus of the separate account of
the applicable Participating Insurance Company for more information on the
purchase of Fund shares.
If an order is received by the Fund or its agent by the close of
trading on the floor of the New York Stock Exchange (currently 4:00 p.m., New
York time) on a business day, Fund shares will be purchased at the net asset
value determined as of such close of trading on the day the order is
received. Otherwise, Fund shares will be purchased at the net asset value
determined as of the close of trading on the floor of the New York Stock
Exchange on the next business day.
Fund shares are sold on a continuous basis. Net asset value per
share is determined as of the close of trading on the floor of the New York
Stock Exchange on each day the New York Stock Exchange is open for business.
For purposes of determining net asset value, futures contracts will be valued
15 minutes after the close of trading on the floor of the New York Stock
Exchange. Net asset value per share is computed by dividing the value of the
Fund's net assets (i.e., the value of its assets less liabilities) by the
total number of shares outstanding. The Fund's investments are valued based
on market value, or where market quotations are not readily available, based
on fair value as determined in good faith by the Board of Directors. For
further information regarding the methods employed in valuing Fund
investments, see "Determination of Net Asset Value" in the Fund's Statement
of Additional Information.
HOW TO REDEEM FUND SHARES
Fund shares may be redeemed at any time by the separate accounts of
the Participating Insurance Companies. Individuals may not place redemption
orders directly with the Fund. When the Fund or its agent receives a request
in proper form by the close of trading on the floor of the New York Stock
Exchange (currently 4:00 p.m., New York time), the Fund will redeem the
shares at the net asset value determined as of the close of such trading on
the day the request is received. To maximize the Fund's ability to track the
Index, shareholders are urged to transmit redemption requests so that they
may be received by the Fund or its agent prior to 12:00 noon, New York time,
on the day upon which shareholders want their redemption requests to be
effective. The value of the shares redeemed may be more or less than their
original cost, depending on the Fund's then-current net asset value. No
charges are imposed by the Fund when shares are redeemed.
Page 7
The Fund ordinarily will make payment for all shares redeemed
within seven days after receipt by the Transfer Agent of a redemption request
in proper form, except as provided by the rules of the Securities and
Exchange Commission.
Should any conflict between VA contract holders and VLI policy
holders arise which would require that a substantial amount of net assets be
withdrawn, orderly portfolio management could be disrupted to the potential
detriment of such contract and policy holders.
SHAREHOLDER SERVICES PLAN
The Fund has adopted a Shareholder Services Plan pursuant to which
the Fund reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of
Dreyfus, an amount not to exceed an annual rate of .25 of 1% of the value of
the Fund's average daily net assets for certain allocated expenses with
respect to servicing and/or maintaining shareholder accounts.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund ordinarily declares and pays dividends from net investment
income quarterly, and automatically reinvests them in additional Fund shares
at net asset value or, at the shareholder's option, pays them in cash. The
Fund makes distributions from net realized securities gains, if any, once a
year, but may make distributions on a more frequent basis to comply with the
distribution requirements of the Code, in all events in a manner consistent
with the provisions of the Investment Company Act of 1940. The Fund will not
make distributions from net realized securities gains unless capital loss
carryovers, if any, have been utilized or have expired. If all shares in an
account are redeemed at any time, all dividends to which the shareholder is
entitled will be paid along with the proceeds of the redemption. All expenses
are accrued daily and deducted before declaration of dividends to investors.
Notice as to the tax status of dividends and distributions will be
mailed to shareholders annually. Dividends derived from net investment
income, together with distributions of net realized short-term securities
gains and all or a portion of any gains realized from the sale or other
disposition of certain market discount bonds, paid by the Fund will be
taxable as ordinary income whether received in cash or reinvested in
additional Fund shares. Distributions from net realized long-term securities
gains of the Fund will be taxable to U.S. shareholders as long-term capital
gains for Federal income tax purposes, regardless of how long shareholders
have held their Fund shares and whether such distributions are received in
cash or reinvested in additional Fund shares. The Code provides that the net
capital gain of an individual generally will not be subject to Federal income
tax at a rate in excess of 28%. Since the Fund's shareholders are the
Participating Insurance Companies and their separate accounts, no discussion
is included herein as to the Federal income tax consequences to VA contract
holders and VLI policy holders. Participating Insurance Companies should
consult their own tax advisers as to the taxability of dividends and
distributions paid to them.
Section 817(h) of the Code requires that the investments of a
segregated asset account of an insurance company be "adequately diversified''
as provided therein or in accordance with U.S. Treasury Regulations, in order
for the account to serve as the basis for VA contracts or VLI policies.
Section 817(h) and the U.S. Treasury Regulations issued thereunder provide
the manner in which a segregated asset account will treat investments in a
regulated investment company for purposes of the diversification requirements.
If the Fund satisfies certain conditions, a segregated asset account owning
shares of the Fund will be treated as owning multiple investments consisting
of the account's proportionate share of each of the assets of the Fund. The
Fund intends to satisfy these conditions so that the shares of the Fund owned
by a segregated asset account of a Participating Insurance Company will be
treated as multiple investments. Further, the Fund intends to satisfy the
diversification standards prescribed under Section 817(h) for segregated
accounts.
Management of the Fund believes that the Fund has qualified for the
fiscal year ended December 31, 1994 as a "regulated investment company" under
the Code. The Fund intends to continue to so qualify if such qualification is
in the best interest of its shareholders. Qualification as a regulated
investment company relieves the Fund of any liability for Federal income
taxes to the extent its earnings are distributed in accordance with
Page 8
applicable provisions of the Code. In addition, the Fund is subject to a
non-deductible 4% excise tax, measured with respect to certain undistributed
amounts of taxable investment income and capital gains.
Participating Insurance Companies should consult their tax advisers
regarding specific questions as to Federal, state or local taxes.
PERFORMANCE INFORMATION
For the purpose of advertising, performance is calculated on the
basis of average annual total return. Advertisements also may include
performance calculated on the basis of total return.
Average annual total return is calculated pursuant to a
standardized formula which assumes that an investment in the Fund was
purchased with an initial payment of $1,000 and that the investment was
redeemed at the end of a stated period of time, after giving effect to the
reinvestment of dividends and distributions during the period. The return is
expressed as a percentage rate which, if applied on a compounded annual
basis, would result in the redeemable value of the investment at the end of
the period. Advertisements of the Fund's performance will include the Fund's
average annual total return for one, five and ten year periods, or for
shorter time periods depending upon the length of time during which the Fund
has operated.
Total return is computed on a per share basis and assumes the
reinvestment of dividends and distributions. Total return generally is
expressed as a percentage rate which is calculated by combining the income
and principal changes for a specified period and dividing by the net asset
value per share at the beginning of the period. Advertisements may include
the percentage rate of total return or may include the value of a
hypothetical investment at the end of the period which assumes the
application of the percentage rate of total return.
Performance will vary from time to time and past results are not
necessarily representative of future results. Performance information, such
as that described above, may not provide a basis for comparison with other
investments or other investment companies using a different method of
calculating performance.
The Fund's average annual total return and total return should not
be compared with other funds that offer their shares directly to the public
since the figures provided do not reflect charges of Participating Insurance
Companies. In addition, the Fund's total return should be distinguished from
the rate of return of a separate account or investment division of a separate
account of a Participating Insurance Company, which rate will reflect the
deduction of additional charges, including mortality and expense risk
charges, and therefore will be lower. VA contract holders and VLI policy
holders should consult the prospectus for such contract or policy.
Comparative performance information may be used from time to time
in advertising or marketing the Fund's shares, including data from Standard &
Poor's 500 Composite Stock Price Index, Standard & Poor's MidCap 400 Index,
Lipper Analytical Services, Inc., the Dow Jones Industrial Average, Money
Magazine, Morningstar, Inc. and other industry publications. The Fund may
cite in its advertisements or in reports or other communications to
shareholders, historical performance of unmanaged indices as reported in
Ibbotson, Roger G. and Rex A. Sinquefield, Stocks, Bonds, Bills and Inflation
(SBBI), 1982, updated annually in the SBBI Yearbook, Ibbotson Associates,
Chicago. In its advertisements, the Fund also may cite the aggregate amount
of assets committed to index investing by pension funds and/or other
institutional investors, which currently exceeds $300 billion, and may refer
to or discuss then current or past economic or financial conditions,
developments or events.
GENERAL INFORMATION
The Fund was incorporated under Maryland law on January 24, 1989,
and commenced operations on September 29, 1989. On May 1, 1994, the Fund,
which is incorporated under the name Dreyfus Life and Annuity Index Fund,
Inc., began operating under the name Dreyfus Stock Index Fund. The Fund is
authorized to issue 200 million shares of Common Stock, par value $.001 per
share. Each share has one vote. In accordance with current law, the Fund
anticipates that a Participating Insurance Company issuing a VA contract or
VLI policy that participates in the Fund will request voting instructions
from contract and policy holders and will vote shares in proportion to the
voting instructions received. For further information on voting rights, see
the applicable prospectus of the Participating Insurance Company.
Page 9
Unless otherwise required by the Investment Company Act of 1940,
ordinarily it will not be necessary for the Fund to hold annual meetings of
shareholders. As a result, Fund shareholders may not consider each year the
election of Directors or the appointment of auditors. However, pursuant to
the Fund's By-Laws, the holders of at least 10% of the shares outstanding and
entitled to vote may require the Fund to hold a special meeting of
shareholders for purposes of removing a Director from office and the holders
of at least 25% of such shares may require the Fund to hold a special meeting
of shareholders for any other purpose. Fund shareholders may remove a
Director by the affirmative vote of a majority of the Fund's outstanding
voting shares. In addition, the Board of Directors will call a meeting of
shareholders for the purpose of electing Directors if, at any time, less than
a majority of the Directors then holding office have been elected by
shareholders.
The Transfer Agent maintains a record of shareholder ownership and
sends confirmations and statements of account.
Owners of policies and contracts issued by a Participating
Insurance Company for which shares of the Fund are an investment vehicle will
receive from the Participating Insurance Company unaudited semi-annual
financial statements and audited year-end financial statements certified by
the Fund's independent public accountants. Each report will show the
investments owned by the Fund and the market values thereof as determined by
the Directors and will provide other information about the Fund and its
operations.
Shareholder inquiries may be made by writing to the Fund at 144
Glenn Curtiss Boulevard, Uniondale, New York 11566-0144, or by calling (516)
338-3300.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE
ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND IN THE
FUND'S OFFICIAL SALES LITERATURE IN CONNECTION WITH THE OFFER OF THE FUND'S
SHARES, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. THIS PROSPECTUS
DOES NOT CONSTITUTE AN OFFER IN ANY STATE IN WHICH, OR TO ANY PERSON TO WHOM,
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
The Fund is not sponsored, endorsed, sold or promoted by Standard &
Poor's Corporation ("S&P"). S&P makes no representation or warranty, express
or implied, to the owners of the Fund or any member of the public regarding
the advisability of investing in securities generally or in the Fund
particularly or the ability of the S&P 500 Index to track general stock
market performance. S&P's only relationship to the Fund is the licensing of
certain trademarks and trade names of S&P and of the S&P 500 Index which is
determined, composed and calculated by S&P without regard to the Fund. S&P
has no obligation to take the needs of the Fund or the owners of the Fund
into consideration in determining, composing or calculating the S&P 500
Index. S&P is not responsible for and has not participated in the calculation
of the Fund's net asset value, nor is S&P a distributor of the Fund. S&P has
no obligation or liability in connection with the administration, marketing
or trading of the Fund.
S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE
S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO WARRANTY, EXPRESS OR
IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE FUND, OWNERS OF THE FUND, OR ANY
OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR ANY DATA INCLUDED
THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS
ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE
WITH RESPECT TO THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR
ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST
PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
Page 10
Stock
Index Fund
Prospectus
Copy Rights 1995 Dreyfus Service Corporation
SSVp8050195
__________________________________________________________________________
DREYFUS STOCK INDEX FUND
PART B
(STATEMENT OF ADDITIONAL INFORMATION)
MAY 1, 1995
__________________________________________________________________________
This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the current Prospectus
of Dreyfus Stock Index Fund (the "Fund"), dated May 1, 1995, as it may be
revised from time to time. To obtain a copy of the Fund's Prospectus,
please write to the Fund at 144 Glenn Curtiss Boulevard, Uniondale, New
York 11556-0144, or call (516) 338-3300.
Wells Fargo Nikko Investment Advisors ("WFNIA") serves as the Fund's
index fund manager.
The Dreyfus Corporation ("Dreyfus") serves as the Fund's
administrator.
Premier Mutual Fund Services, Inc. (the "Distributor") serves as the
distributor of the Fund's shares.
TABLE OF CONTENTS
Page
Investment Objective and Management Policies. . . . . . . . . . . . . . . B-2
Management of the Fund. . . . . . . . . . . . . . . . . . . . . . . . . . B-5
Index Management and Administration Agreements. . . . . . . . . . . . . . B-9
Shareholder Services Plan . . . . . . . . . . . . . . . . . . . . . . . . B-11
Purchase of Fund Shares . . . . . . . . . . . . . . . . . . . . . . . . . B-12
Redemption of Fund Shares . . . . . . . . . . . . . . . . . . . . . . . . B-12
Determination of Net Asset Value. . . . . . . . . . . . . . . . . . . . . B-12
Dividends, Distributions and Taxes. . . . . . . . . . . . . . . . . . . . B-13
Portfolio Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . B-15
Performance Information . . . . . . . . . . . . . . . . . . . . . . . . . B-15
Information About the Fund. . . . . . . . . . . . . . . . . . . . . . . . B-16
Custodian, Transfer and Dividend Disbursing Agent,
Counsel and Independent Accountants . . . . . . . . . . . . . . . . B-16
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-17
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . B-18
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . B-32
INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Description of the Fund."
Other Portfolio Securities
Securities issued or guaranteed by the U.S. Government or its
agencies or instrumentalities include U.S. Treasury securities, which
differ in their interest rates, maturities and times of issuance. Some
obligations issued or guaranteed by U.S. Government agencies and
instrumentalities, for example, Government National Mortgage Association
pass-through certificates, are supported by the full faith and credit of
the U.S. Treasury; others, such as those of the Federal Home Loan Banks,
by the right of the issuer to borrow from the Treasury; others, such as
those issued by the Federal National Mortgage Association, by
discretionary authority of the U.S. Government to purchase certain
obligations of the agency or instrumentality; and others, such as those
issued by the Student Loan Marketing Association, only by the credit of
the agency or instrumentality. These securities bear fixed, floating or
variable rates of interest. Principal and interest may fluctuate based on
generally recognized reference rates or the relationship of rates. While
the U.S. Government provides financial support to such U.S. Government-
sponsored agencies or instrumentalities, no assurance can be given that it
will always do so, since it is not so obligated by law. The Fund will
invest in such securities only when it is satisfied that the credit risk
with respect to the issuer is minimal.
Repurchase agreements involve the acquisition by the Fund of an
underlying debt instrument, subject to an obligation of the seller to
repurchase, and the Fund to resell, the instrument at a fixed price,
usually not more than one week after its purchase. The Fund's custodian
or sub-custodian will have custody of, and will hold in a segregated
account, securities acquired by the Fund under a repurchase agreement.
Repurchase agreements are considered by the staff of the Securities and
Exchange Commission to be loans by the Fund. In an attempt to reduce the
risk of incurring a loss on a repurchase agreement, the Fund will enter
into repurchase agreements only with domestic banks with total assets in
excess of one billion dollars or primary government securities dealers
reporting to the Federal Reserve Bank of New York, with respect to
securities of the type in which the Fund may invest, and will require that
additional securities be deposited with it if the value of the securities
purchased should decrease below resale price. WFNIA will monitor on an
ongoing basis the value of the collateral to assure that it always equals
or exceeds the repurchase price. Certain costs may be incurred by the
Fund in connection with the sale of the securities if the seller does not
repurchase them in accordance with the repurchase agreement. In addition,
if bankruptcy proceedings are commenced with respect to the seller of the
securities, realization on the securities by the Fund may be delayed or
limited. The Fund will consider on an ongoing basis the creditworthiness
of the institutions with which it enters into repurchase agreements.
Time deposits are non-negotiable deposits maintained in a banking
institution for a specified period of time (in no event longer than seven
days) at a stated interest rate. Time deposits which may be held by the
Fund will not benefit from insurance from the Bank Insurance Fund or the
Savings Association Insurance Fund administered by the Federal Deposit
Insurance Corporation.
Certificates of deposit are negotiable certificates evidencing the
obligation of a bank to repay funds deposited with it for a specified
period of time.
Bankers' acceptances are credit instruments evidencing the obligation
of a bank to pay a draft drawn on it by a customer. These instruments
reflect the obligation both of the bank and of the drawer to pay the full
amount of the instrument upon maturity. Other short-term bank obligations
may include uninsured, direct obligations bearing fixed, floating or
variable interest rates.
Commercial paper consists of short-term, unsecured promissory notes
issued to finance short-term credit needs. The commercial paper purchased
by the Fund will consist only of direct obligations which, at the time of
their purchase, are (a) rated not lower than Prime-1 by Moody's Investors
Service, Inc. or A-1 by Standard & Poor's Corporation, (b) issued by
companies having an outstanding unsecured debt issue currently rated at
least Aa3 by Moody's Investors Service, Inc. or AA- by Standard & Poor's
Corporation, or (c) if unrated, determined by WFNIA to be of comparable
quality to those rated obligations which may be purchased by the Fund.
Management Policies
Lending Portfolio Securities. To a limited extent, the Fund may lend
its portfolio securities to brokers, dealers and other financial
institutions, provided it receives cash collateral which at all times is
maintained in an amount equal to at least 100% of the current market value
of the securities loaned. For purposes of this policy, the Fund considers
collateral consisting of U.S. Government securities or irrevocable letters
of credit issued by banks whose securities meet the standards for
investment by the Fund to be the equivalent of cash. By lending its
portfolio securities, the Fund can increase its income through the
investment of the cash collateral. Such loans may not exceed 30% of the
value of the Fund's total assets. From time to time, the Fund may return
to the borrower or a third party which is unaffiliated with the Fund, and
which is acting as a "placing broker," a part of the interest earned from
the investment of collateral received for securities loaned.
The Securities and Exchange Commission currently requires that the
following conditions must be met whenever portfolio securities are loaned:
(1) the Fund must receive at least 100% cash collateral from the borrower;
(2) the borrower must increase such collateral whenever the market value
of the securities rises above the level of such collateral; (3) the Fund
must be able to terminate the loan at any time; (4) the Fund must receive
reasonable interest on the loan, as well as any dividends, interest or
other distributions payable on the loaned securities, and any increase in
market value; (5) the Fund may pay only reasonable custodian fees in
connection with the loan; and (6) while voting rights on the loaned
securities may pass to the borrower, the Fund's Directors must terminate
the loan and regain the right to vote the securities if a material event
adversely affecting the investment occurs. These conditions may be
subject to future modification.
Investment Restrictions
The Fund has adopted the following investment restrictions as
fundamental policies. These restrictions cannot be changed without
approval of the holders of a majority (as defined in the Investment
Company Act of 1940 (the "Act")) of the Fund's outstanding voting shares.
The Fund may not:
1. Purchase securities of any company having less than three years'
continuous operations (including operations of any predecessors) if such
purchase would cause the value of the Fund's investments in all such
companies to exceed 5% of the value of its total assets.
2. Purchase securities of closed-end investment companies except
(a) in the open market where no commission other than the ordinary
broker's commission is paid, which purchases are limited to a maximum of
(i) 3% of the total outstanding voting stock of any one closed-end
investment company, (ii) 5% of the Fund's net assets with respect to the
securities issued by any one closed-end investment company and (iii) 10%
of the Fund's net assets in the aggregate, or (b) those received as part
of a merger or consolidation. The Fund may not purchase the securities of
open-end investment companies other than itself.
3. Invest in commodities, except that the Fund may invest in
futures contracts as described in the Prospectus and Statement of
Additional Information.
4. Purchase, hold or deal in real estate, or oil and gas interests,
but the Fund may purchase and sell securities that are secured by real
estate or issued by companies that invest or deal in real estate.
5. Borrow money or pledge, mortgage or hypothecate its assets,
except as described in the Fund's Prospectus and the Statement of
Additional Information and in connection with entering into futures
contracts. Collateral arrangements with respect to initial or variation
margin for futures contracts will not be deemed to be pledges of the
Fund's assets.
6. Lend any funds or other assets except through the purchase of
debt securities, bankers' acceptances and commercial paper of corporations
and other entities. However, the Fund may lend its portfolio securities
in an amount not to exceed 30% of the value of its total assets. Any
loans of portfolio securities will be made according to guidelines
established by the Securities and Exchange Commission and the Fund's
Directors.
7. Act as an underwriter of securities of other issuers or purchase
securities subject to restrictions on disposition under the Securities Act
of 1933 (so-called "restricted securities"). The Fund may not enter into
repurchase agreements providing for settlement in more than seven days
after notice or purchase securities which are not readily marketable, if,
in the aggregate, more than 10% of the value of the Fund's net assets
would be so invested. The Fund will not enter into time deposits maturing
in more than seven days and time deposits maturing from two business
through seven calendar days will not exceed 10% of the Fund's total
assets.
8. Invest in the securities of a company for the purpose of
exercising management or control, but the Fund will vote the securities it
owns in its portfolio as a shareholder in accordance with its views.
9. Purchase, sell or write puts, calls or combinations thereof.
10. Invest more than 25% of its assets in investments in any
particular industry or industries (including banking), except to the
extent the Index also is so concentrated, provided that, when the Fund has
adopted a temporary defensive posture, there shall be no limitation on the
purchase of obligations issued or guaranteed by the U.S. Government, its
agencies or instrumentalities.
In addition to the investment restrictions adopted as fundamental
policies set forth above, the Fund operates with certain non-fundamental
policies which may be changed by vote of a majority of the Directors at
any time. The Fund may not: (i) engage in arbitrage transactions,
(ii) purchase warrants (other than those acquired by the Fund in units or
attached to securities), (iii) sell securities short, but reserves the
right to sell securities short against the box, and (iv) invest more than
10% of its total assets in the securities of any single issuer or invest
in more than 10% of the voting securities of any single issuer. In
addition, the Fund intends to: (i) comply with the diversification
requirements under Section 817(h) of the Internal Revenue Code of 1986, as
amended (the "Code"), and (ii) comply in all material respects with
relevant insurance laws and regulations applicable to investments of
separate accounts of Participating Insurance Companies.
If a percentage restriction is adhered to at the time of investment,
a later change in percentage resulting from a change in values or assets
will not constitute a violation of such restriction.
The Fund may make commitments more restrictive than the restrictions
listed above so as to permit the sale of Fund shares in certain states.
Should the Fund determine that a commitment is no longer in the best
interests of the Fund and its shareholders, the Fund reserves the right to
revoke the commitment by terminating the sale of Fund shares in the state
involved.
MANAGEMENT OF THE FUND
Directors and officers of the Fund, together with information as to
their principal business occupations during at least the last five years,
are shown below. Each Director who is deemed to be an "interested person"
of the Fund, as defined in the Act, is indicated by an asterisk.
Directors of the Fund
*JOSEPH S. DiMARTINO, Chairman of the Board. Since January 1995, Chairman
of the Board of various funds in the Dreyfus Family of Funds. For
more than five years prior thereto, he was President, a director and,
until August 1994, Chief Operating Officer of Dreyfus and Executive
Vice President and a director of Dreyfus Service Corporation, a
wholly-owned subsidiary of Dreyfus and until August 1994, the Fund's
distributor. From August 1994 to December 31, 1994, he was a
director of Mellon Bank Corporation. Mr. DiMartino is a director and
former Treasurer of The Muscular Dystrophy Association; a trustee of
Bucknell University; Chairman of the Board of Directors of the Noel
Group, Inc.; a director of HealthPlan Corporation; a director of
Belding Heminway Company, Inc.; and a director of Curtis Industries,
Inc. Mr. DiMartino is also a Board member of 93 other funds in the
Dreyfus Family of Funds. He is 51 years old and his address is 200
Park Avenue, New York, New York 10166.
*DAVID P. FELDMAN, Director. Corporate Vice President-Investment
Management of AT&T. He is also a trustee of Corporate Property
Investors, a real estate investment company. Mr. Feldman is also a
Board member of 27 other funds in the Dreyfus Family of Funds. He is
55 years old and his address is One Oak Way, Berkeley Heights, New
Jersey 07922.
JACK R. MEYER, Director. President and Chief Executive Officer of Harvard
Management Company, an investment management company, since September
1990. For more than five years prior thereto, he was Treasurer and
Chief Investment Officer of The Rockefeller Foundation. Mr. Meyer is
also a Board member of four other funds in the Dreyfus Family of
Funds. He is 49 years old and his address is 600 Atlantic Avenue,
Boston, Massachusetts 02210.
JOHN SZARKOWSKI, Director. Director Emeritus of the Department of
Photography at The Museum of Modern Art. Consultant in photography.
Mr. Szarkowski is also a Board member of four other funds in the
Dreyfus Family of Funds. He is 69 years old and his address is
Bristol Road Box 221, East Chatham, New York 12060.
ANNE WEXLER, Director. Chairman of the Wexler Group, consultants
specializing in government relations and public affairs. She is also
a Director of Alumax, The Continental Corporation, Comcast
Corporation, The New England Electric System and the NOVA
Corporation, and a member of the Board of the Carter Center of Emory
University, the Council of Foreign Relations, the National Park
Foundation, the Visiting Committee of the John F. Kennedy School of
Government at Harvard University and the Board of Visitors of the
University of Maryland School of Public Affairs. Ms. Wexler is also
a Board member of 16 other funds in the Dreyfus Family of Funds. She
is 65 years old and her address is 1317 F Street, N.W., Washington,
D.C. 20004.
For so long as the Fund's plan described in the section captioned
"Shareholder Services Plan" remains in effect, the Directors of the Fund
who are not "interested persons" of the Fund, as defined in the Act, will
be selected and nominated by the Directors who are not "interested
persons" of the Fund.
The Fund typically pays its Directors an annual retainer and a per
meeting fee and reimburses them for their expenses. The Chairman of the
Board receives an additional 25% of such compensation. For the fiscal
year ended December 31, 1994, the aggregate amount of compensation paid to
each Director by the Fund and all other funds in the Dreyfus Family of
Funds for which such person is a Board member were as follows:
<TABLE>
<CAPTION>
(5)
(3) Total
(2) Pension or (4) Compensation from
(1) Aggregate Retirement Benefits Estimated Annual Fund and Fund
Name of Board Compensation from Accrued as Part of Benefits Upon Complex Paid to
Member Fund* Fund's Expenses Retirement Board Members
- --------------------- ------------------ -------------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Joseph S. DiMartino** $5,625 None None $445,000
David P. Feldman $4,500 None None $ 85,631
Jack R. Meyer $4,500 None None $ 21,875
John Szarkowski $4,500 None None $ 21,875
Anne Wexler $5,000 None None $ 26,329
</TABLE>
* Amount does not include reimbursed expenses for attending Board
meetings, which amounted to $548 for all Directors as a group.
** Estimated amounts for the current fiscal year ending December 31,
1995.
Officers of the Fund
MARIE E. CONNOLLY, President and Treasurer. President and Chief Operating
Officer and a Director of the Distributor and an officer of other
investment companies advised or administered by Dreyfus. From
December 1991 to July 1994, she was President and Chief Compliance
Officer of Funds Distributor, Inc., a wholly-owned subsidiary of The
Boston Company, Inc. Prior to December 1991, she served as Vice
President and Controller, and later as Senior Vice President, of The
Boston Company Advisors, Inc. She is 37 years old.
JOHN E. PELLETIER, Vice President and Secretary. Senior Vice President -
General Counsel of the Distributor and an officer of other investment
companies advised or administered by Dreyfus. From February 1992 to
July 1994, he served as Counsel for The Boston Company Advisors, Inc.
From August 1990 to February 1992, he was employed as an Associate at
Ropes & Gray, and prior to August 1990, he was employed as an
Associate at Sidley & Austin. He is 30 years old.
ERIC B. FISCHMAN, Vice President and Assistant Secretary. Associate
General Counsel of the Distributor and an officer of other investment
companies advised or administered by Dreyfus. From September 1992 to
August 1994, he was an attorney with the Board of Governors of the
Federal Reserve System. He is 30 years old.
FREDERICK C. DEY, Vice President and Assistant Treasurer. Senior Vice
President of the Distributor and an officer of other investment
companies advised or administered by Dreyfus. From 1988 to August
1994, he was manager of the High Performance Fabric Division of
Springs Industries Inc. He is 33 years old.
JOSEPH F. TOWER, III, Assistant Treasurer. Senior Vice President,
Treasurer and Chief Financial Officer of the Distributor and an
officer of other investment companies advised or administered by
Dreyfus. From July 1988 to August 1994, he was employed by The
Boston Company, Inc. where he held various management positions in
the Corporate Finance and Treasury areas. He is 32 years old.
JOHN J. PYBURN, Assistant Treasurer. Vice President of the Distributor
and an officer of other investment companies advised or administered
by Dreyfus. From 1984 to July 1994, he was Assistant Vice President
in the Mutual Fund Accounting Department of Dreyfus. He is 59 years
old.
PAUL FURCINITO, Assistant Secretary. Assistant Vice President of the
Distributor and an officer of other investment companies advised or
administered by Dreyfus. From January 1992 to July 1994, he was a
Senior Legal Product Manager, and, from January 1990 to January 1992,
he was a mutual fund accountant, for The Boston Company Advisors,
Inc. He is 28 years old.
RUTH D. LEIBERT, Assistant Secretary. Assistant Vice President of the
Distributor and an officer of other investment companies advised or
administered by Dreyfus. From March 1992 to July 1994, she was a
Compliance Officer for The Managers Funds, a registered investment
company. From March 1990 until September 1991, she was Development
Director of The Rockland Center for the Arts and, prior thereto, was
employed as a Research Assistant for the Bureau of National Affairs.
She is 50 years old.
The address of each officer of the Fund is 200 Park Avenue, New York,
New York 10166.
Directors and officers of the Fund, as a group, owned less than 1% of
the Fund's shares of Common Stock outstanding on February 8, 1995.
The following persons are known by the Fund to own of record 5% or
more of the Fund's outstanding voting securities on February 8, 1995:
Travelers Fund U, One Tower Square, 12 NB-Roger Ferland, Hartford,
Connecticut 06183--33.5%; UNUM Life Insurance Company UNUM TSA Annuity,
2211 Congress Street, Portland, Maine 04122--25.4%; Nationwide Variable
Account II, P.O. Box 182029, Columbus, Ohio 43218--21.4%; and Transamerica
Occidental Life Insurance Company Separate Account VA-2L, 1150 South Olive
Street, Los Angeles, California 90015--5.7%. A shareholder that owns,
directly or indirectly, 25% or more of the Fund's voting securities may be
deemed to be a "control person" (as defined in the Act) of the Fund.
INDEX MANAGEMENT AND ADMINISTRATION AGREEMENTS
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Management
of the Fund."
Index Management Agreement. WFNIA provides management services
pursuant to the Index Management Agreement (the "Management Agreement")
dated April 4, 1990, with the Fund, which is subject to annual approval by
(i) the Fund's Board of Directors or (ii) vote of a majority (as defined
in the Act) of the outstanding voting securities of the Fund, provided
that in either event the continuance also is approved by a majority of the
Directors who are not "interested persons" (as defined in the Act) of the
Fund by vote cast in person at a meeting called for the purpose of voting
on such approval. The Management Agreement was approved by shareholders
on August 8, 1991 and was last approved by the Fund's Board of Directors,
including a majority of the Directors who are not "interested persons" of
any party to the Management Agreement, at a meeting held on May 4, 1994.
The Management Agreement is terminable without penalty, on 60 days'
notice, by the Fund's Board of Directors or by vote of the holders of a
majority of the Fund's shares, or, upon not less than 90 days' notice, by
WFNIA. The Management Agreement will terminate automatically in the event
of its assignment (as defined in the Act).
The Fund has agreed that neither WFNIA nor Dreyfus will be liable for
any error of judgment or mistake of law or for any loss suffered by the
Fund in connection with the matters to which WFNIA's or Dreyfus'
respective agreement with the Fund relates, except for a loss resulting
from willful misfeasance, bad faith or gross negligence on the part of
WFNIA or Dreyfus, as the case may be, in the performance of its
obligations or from reckless disregard by it of its obligations and duties
under its respective agreement with the Fund.
As compensation for WFNIA's services, the Fund has agreed to pay
WFNIA a monthly index management fee at the annual rate of .15 of 1% of
the value of the Fund's average daily net assets. All fees and expenses
are accrued daily and deducted before declaration of dividends to
investors. For the fiscal year ended August 31, 1992 and for the period
from September 1, 1992 (commencement of new fiscal year period) through
December 31, 1992, and for the fiscal years ended December 31, 1993 and
1994, the index management fees payable amounted to $100,173, $37,565,
$69,306 and $116,361, respectively, which amounts were reduced by $42,790,
$11,307, $62,783 and $63,576, respectively, pursuant to undertakings.
Such reductions resulted in net fees being paid to WFNIA of $57,383 and
$26,258 in the respective fiscal 1992 periods, $6,523 in fiscal 1993 and
$52,785 in fiscal 1994. See "Management of the Fund--Expenses" in the
Fund's Prospectus.
The Fund paid Wells Fargo Institutional Trust Company, N.A., the
Fund's custodian, which is owned by WFNIA and Wells Fargo & Company, for
custodial services provided to the Fund during the fiscal year ended
December 31, 1994, $22,284.
Administration Agreement. Pursuant to the Administration Agreement
(the "Administration Agreement") dated August 24, 1994 with the Fund,
Dreyfus, together with WFNIA, furnishes the Fund clerical help and
accounting, data processing, bookkeeping, internal auditing and legal
services and certain other services required by the Fund, prepares reports
to the Fund's shareholders, tax returns, reports to and filings with the
Securities and Exchange Commission and state Blue Sky authorities, and
generally assists in all aspects of the Fund's operations, other than
providing investment advice. Dreyfus bears all expenses in connection
with the performance of its services and pays the salaries of all officers
and employees who are employed by both it and its affiliates and the Fund.
The Administration Agreement is subject to annual approval by (i) the
Fund's Board of Directors or (ii) vote of a majority (as defined in the
Act) of the Fund's outstanding voting securities, provided that in either
event the continuance also is approved by a majority of the Directors who
are not "interested persons" (as defined in the Act) of the Fund, by vote
cast in person at a meeting called for the purpose of voting on such
approval. The Administration Agreement was approved by the Fund's Board
of Directors, including a majority of the Directors who are not
"interested persons" of any party to the Administration Agreement, at a
meeting held on June 1, 1994. The Administration Agreement is terminable
without penalty, on 60 days' notice, by the Fund's Board of Directors or
by vote of the holders of a majority of the Fund's shares, or, upon not
less than 90 days' notice, by Dreyfus. The Administration Agreement will
terminate automatically in the event of its assignment (as defined in the
Act).
As compensation for Dreyfus' services, the Fund has agreed to pay
Dreyfus a monthly administration fee at the annual rate of .15 of 1% of
the value of the Fund's average daily net assets. For the fiscal year
ended August 31, 1992 and for the period from September 1, 1992
(commencement of new fiscal year period) through December 31, 1992, and
for the fiscal years ended December 31, 1993 and 1994, the administration
fees payable to Dreyfus amounted to $100,173, $37,565, $69,306 and
$116,361, respectively, which amounts were reduced by $42,790, $11,307,
$62,783 and $63,577, respectively, pursuant to undertakings. Such
reductions resulted in net fees being paid to Dreyfus of $57,383 and
$26,258 in the respective fiscal 1992 periods, $6,523 in fiscal 1993 and
$52,784 in fiscal 1994. See "Management of the Fund--Expenses" in the
Fund's Prospectus.
The following persons are officers and/or directors of Dreyfus:
Howard Stein, Chairman of the Board and Chief Executive Officer; W. Keith
Smith, Vice Chairman of the Board; Robert E. Riley, President, Chief
Operating Officer and a director; Lawrence S. Kash, Vice Chairman--
Distribution and a director; Philip L. Toia, Vice Chairman--Operations and
Administration; Paul H. Snyder, Vice President--Finance and Chief
Financial Officer; Daniel C. Maclean III, General Counsel and Vice
President; Elie M. Genadry, Vice President--Institutional Sales; Henry D.
Gottmann, Vice President--Retail Sales and Service; Jeffrey N. Nachman,
Vice President--Fund Administration; Barbara E. Casey, Vice President--
Retirement Services; Diane M. Coffey, Vice President--Corporate
Communications; Mark N. Jacobs, Vice President--Legal and Secretary;
Katherine C. Wickham, Vice President--Human Resources; Maurice Bendrihem--
Controller; and Mandell L. Berman, Frank V. Cahouet, Alvin E. Friedman,
Lawrence M. Greene, Julian M. Smerling and David B. Truman, directors.
Expenses and Expense Information. All expenses incurred in the
operation of the Fund are borne by the Fund, except to the extent
specifically assumed by WFNIA and/or Dreyfus. The expenses borne by the
Fund include the following: organizational costs, taxes, interest,
brokerage fees and commissions, if any, fees of Directors who are not
officers, directors, employees or holders of 5% or more of the outstanding
voting securities of WFNIA or Dreyfus or their affiliates, Securities and
Exchange Commission fees, state Blue Sky qualification fees, index
management and administration fees, charges of custodians, transfer and
dividend disbursing agents' fees, certain insurance premiums, industry
association fees, outside auditing and legal expenses, costs of
maintaining corporate existence, costs of independent pricing services,
costs attributable to investor services (including, without limitation,
telephone and personnel expenses), costs of shareholders' reports and
corporate meetings, costs of preparing and printing prospectuses and
statements of additional information for regulatory purposes and for
distribution to existing shareholders, and any extraordinary expenses.
WFNIA and Dreyfus have agreed that if in any fiscal year the
aggregate expenses of the Fund (including fees pursuant to the Management
Agreement and the Administration Agreement, but excluding taxes,
brokerage, interest on borrowings and, with the prior written consent of
the necessary state securities commissions, extraordinary expenses) exceed
the expense limitation of any state having jurisdiction over the Fund, the
Fund may deduct from the fees to be paid to each of WFNIA and Dreyfus an
equal share of such excess expense, to the extent required by state law.
Such deduction, if any, will be estimated daily and reconciled and
effected on a monthly basis.
The aggregate of the fees payable to WFNIA and Dreyfus is not subject
to reduction as the value of the Fund's net assets increase.
SHAREHOLDER SERVICES PLAN
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Shareholder Services Plan."
The Fund has adopted a Shareholder Services Plan (the "Plan")
pursuant to which the Fund reimburses Dreyfus Service Corporation for
certain allocated expenses with respect to servicing and/or maintaining
shareholder accounts.
A quarterly report of the amounts expended under the Plan, and the
purposes for which such expenditures were incurred, must be made to the
Directors for their review. In addition, the Plan provides that material
amendments of the Plan must be approved by the Board of Directors, and by
the Directors who are not "interested persons" (as defined in the Act) of
the Fund and have no direct or indirect financial interest in the
operation of the Plan, by vote cast in person at a meeting called for the
purpose of considering such amendments. The Plan is subject to annual
approval by such vote of the Directors cast in person at a meeting called
for the purpose of voting on the Plan. The Plan is terminable at any time
by vote of a majority of the Directors who are not "interested persons"
(as defined in the Act) of the Fund and have no direct or indirect
financial interest in the operation of the Plan.
For the fiscal year ended December 31, 1994, $2,179 was charged to
the Fund under the Plan.
PURCHASE OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to Buy
Fund Shares."
The Distributor. The Distributor serves as the Fund's distributor
pursuant to an agreement which is renewable annually. The Distributor
also acts as distributor for the other funds in the Dreyfus Family of
Funds and for certain other investment companies.
REDEMPTION OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to
Redeem Fund Shares."
Redemption Commitment. The Fund has committed to pay in cash all
redemption requests by any shareholder of record, limited in amount during
any 90-day period to the lesser of $250,000 or 1% of the value of the
Fund's net assets at the beginning of such period. Such commitment is
irrevocable without the prior approval of the Securities and Exchange
Commission. In the case of requests for redemption in excess of such
amount, the Board of Directors reserves the right to make payments in
whole or part in securities or other assets of the Fund in case of an
emergency or any time a cash distribution would impair the liquidity of
the Fund to the detriment of the existing shareholders. In such event,
the securities would be valued in the same manner as the Fund's portfolio
is valued. If the recipient sold such securities, brokerage charges would
be incurred.
Suspension of Redemptions. The right of redemption may be suspended
or the date of payment postponed (a) during any period when the New York
Stock Exchange is closed (other than customary weekend and holiday
closings), (b) when trading in the markets the Fund ordinarily utilizes is
restricted, or when an emergency exists as determined by the Securities
and Exchange Commission so that disposal of the Fund's investments or
determination of its net asset value is not reasonably practicable or
(c) for such other periods as the Securities and Exchange Commission by
order may permit to protect the Fund's shareholders.
DETERMINATION OF NET ASSET VALUE
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to
Buy Fund Shares."
Valuation of Portfolio Securities. The Fund's portfolio securities
are valued at the last sale price on the securities exchange or national
securities market on which such securities are primarily traded.
Securities not listed on an exchange or national securities market, or
securities in which there were no transactions, are valued at the average
of the most recent bid and asked prices. Bid price is used when no asked
price is available. Any securities or other assets for which recent
market quotations are not readily available are valued at fair value as
determined in good faith by the Board of Directors. Expenses and fees,
including the index management and administration fees (reduced by the
expense limitation, if any), are accrued daily and taken into account for
the purpose of determining the net asset value of Fund shares.
New York Stock Exchange Closings. The holidays (as observed) on
which the New York Stock Exchange is closed currently are: New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving and Christmas.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Dividends,
Distributions and Taxes."
Taxation of the Fund. Management of the Fund believes that the Fund
qualified for the fiscal year ended December 31, 1994 as a "regulated
investment company" under the Code. The Fund intends to continue to so
qualify so long as such qualification is in the best interests of its
shareholders. Qualification as a regulated investment company relieves
the Fund from any liability for Federal income taxes to the extent its
earnings are distributed in accordance with the applicable provisions of
the Code. Among the requirements for such qualification is that less than
30% of the Fund's gross income must be derived from the gain on the sale
or other disposition of securities held for less than three months.
Accordingly, the Fund may be restricted in the selling of securities held
for less than three months, and in the utilization of certain of the
investment techniques described in the Prospectus under "Description of
the Fund." The Code, however, allows the Fund to net certain offsetting
positions, making it easier for the Fund to satisfy the 30% test. The
term "regulated investment company" does not imply the supervision of
management or investment practices or policies by any government agency.
If, however, the Fund does not qualify as a "regulated investment
company," it would be subject to the general rules governing the Federal
income taxation of corporations under the Code. As such, the Fund's
taxable income could be subject to a maximum tax rate of 35% thereby
reducing the amount of cash available for distribution to shareholders.
Moreover, distributions to shareholders would not be deductible in
computing the Fund's taxable income. Shareholders in receipt of
distributions from the Fund would be required to treat such amounts as
ordinary dividend income to the extent attributable to each such
shareholder's share of the Fund's current and accumulated earnings and
profits. Amounts received in excess of the Fund's current and accumulated
earnings and profits would constitute a return of capital to the extent of
the shareholder's basis in Fund shares. Any excess received over basis
would constitute capital gain. Certain corporate shareholders would be
entitled to a dividends received deduction under Section 243 of the Code
to the extent amounts distributed from the Fund constituted ordinary
dividend income.
Section 817(h) of the Code requires that the investments of a
segregated asset account of an insurance company be "adequately
diversified" as provided therein or in accordance with U.S. Treasury
Regulations in order for the account to serve as the basis for VA
contracts or VLI policies. The Fund intends to comply with the applicable
requirements so that the Fund's investments are "adequately diversified"
for this purpose. Upon satisfaction of these requirements, shares of the
Fund owned by a segregated asset account of a Participating Insurance
Company will be treated as multiple investments.
If, however, the Fund were not to satisfy these conditions, a
segregated asset account of a Participating Insurance Company owning
shares of the Fund would be required to treat such shares as a single
investment asset (and, accordingly, would not be able to treat its
proportionate interest in the Fund's assets as being directly owned) for
purposes of determining whether the segregated asset account is
"adequately diversified" within the meaning of Section 817(h) of the Code.
This, in turn, would make it more difficult for any such segregated asset
account to satisfy the diversification standards of the Code. If a
segregated asset account is not adequately diversified, it may not serve
as the basis for VA contracts or VLI policies.
Ordinarily, gains and losses realized from portfolio transactions
will be treated as capital gain or loss. However, all or a portion of any
gains realized from the sale or other disposition of certain market
discount bonds will be treated as ordinary income under Section 1276 of
the Code. In addition, all or a portion of the gain realized from
engaging in "conversion transactions" may be treated as ordinary income
under Section 1258. "Conversion transactions" are defined to include
certain forward, futures, option and "straddle" transactions, transactions
marketed or sold to produce capital gains, or transactions described in
Treasury regulations to be issued in the future.
Under Section 1256 of the Code, gain or loss realized by the Fund
from certain financial futures transactions will be treated as 60% long-
term capital gain or loss and 40% short-term capital gain or loss. Gain
or loss will arise upon the exercise or lapse of such futures as well as
from closing transactions. In addition, any such futures remaining
unexercised at the end of the Fund's taxable year will be treated as sold
for their then fair market value, resulting in additional gain or loss to
the Fund characterized in the manner described above.
Offsetting positions held by the Fund involving futures may
constitute "straddles." Straddles are defined to include "offsetting
positions" in actively traded personal property. The tax treatment of
straddles is governed by Sections 1092 and 1258 of the Code, which, in
certain circumstances, overrides or modifies the provisions of
Section 1256. As such, all or a portion of any short-or long-term capital
gain from certain "straddle" and/or conversion transactions may be
recharacterized to ordinary income.
If a Fund were treated as entering into straddles by reason of its
futures transactions, such straddles could be characterized as "mixed
straddles" if the futures transactions comprising such straddles were
governed by Section 1256 of the Code. The Fund may make one or more
elections with respect to "mixed straddles." Depending upon which
election is made, if any, the results to the Fund may differ. If no
election is made, to the extent the straddle rules apply to positions
established by the Fund, losses realized by the Fund will be deferred to
the extent of unrealized gain in any offsetting positions. Moreover, as a
result of the straddle and the conversion transaction rules, short-term
capital loss on straddle positions may be recharacterized as long-term
capital loss, and long-term capital gain may be recharacterized as short-
term capital gain or ordinary income.
Shareholder Taxation. Since the shareholders of the Fund are the
separate accounts of Participating Insurance Companies, no discussion is
included herein as to the Federal income tax consequences at the level of
the holders of the VA contracts or VLI policies. For information
concerning the Federal income tax consequences to such holders, see the
prospectuses for such VA contracts or VLI policies.
PORTFOLIO TRANSACTIONS
WFNIA assumes general supervision over placing orders on behalf of
the Fund for the purchase or sale of portfolio securities. Allocation of
brokerage transactions, including their frequency, is made in the best
judgment of WFNIA and in a manner deemed fair and reasonable to
shareholders. The primary consideration is prompt execution of orders at
the most favorable net price. Brokers also are selected because of their
ability to handle special executions such as are involved in large block
trades or broad distributions, provided the primary consideration is met.
Portfolio turnover may vary from year to year, as well as within a year.
High turnover rates are likely to result in comparatively greater
brokerage expenses. The overall reasonableness of brokerage commissions
paid is evaluated by WFNIA based upon its knowledge of available
information as to the general level of commissions paid by other
institutional investors for comparable services.
For its portfolio securities transactions for the fiscal year ended
August 31, 1992, for the period September 1, 1992 (commencement of new
fiscal year period) through December 31, 1992, and for the fiscal years
ended December 31, 1993 and 1994, the Fund paid total brokerage
commissions of $20,224, $15,740, $66,766 and $36,780, respectively, none
of which was paid to the Distributor. No spreads or concessions were paid
by the Fund for the fiscal years.
PERFORMANCE INFORMATION
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Performance Information."
The Fund's average annual total return for the 1, 5 and 5.258 year
periods ended December 31, 1994 was 0.88%, 8.16% and 8.19%, respectively.
Average annual total return is calculated by determining the ending
redeemable value of an investment purchased with a hypothetical $1,000
payment made at the beginning of the period (assuming the reinvestment of
dividends and distributions), dividing by the amount of the initial
investment, taking the "n"th root of the quotient (where "n" is the number
of years in the period) and subtracting 1 from the result.
The Fund's total return for the period September 29, 1989
(commencement of operations) through December 31, 1994 was 51.25%. Total
return is calculated by subtracting the amount of the Fund's net asset
value per share at the beginning of a stated period from the net asset
value per share at the end of the period (after giving effect to the
reinvestment of dividends and distributions during the period), and
dividing the result by the net asset value per share at the beginning of
the period.
INFORMATION ABOUT THE FUND
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "General
Information."
Each Fund share has one vote and, when issued and paid for in
accordance with the terms of the offering, is fully paid and
non-assessable. Fund shares are of one class and have equal rights as to
dividends and in liquidation. Shares have no preemptive, subscription or
conversion rights and are freely transferable.
The Fund sends annual and semi-annual financial statements to all its
shareholders.
Effective May 1, 1994, the Fund, which is incorporated under the name
Dreyfus Life and Annuity Index Fund, Inc., began operating under the name
Dreyfus Stock Index Fund.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT, COUNSEL
AND INDEPENDENT ACCOUNTANTS
Wells Fargo Institutional Trust Company, N.A. (the "Custodian"), 45
Fremont Street, San Francisco, California 94105, acts as custodian of the
Fund's investments. The Custodian is owned by WFNIA and Wells Fargo &
Company. The Shareholder Services Group, Inc., a subsidiary of First Data
Corporation, P.O. Box 9671, Providence, Rhode Island 02940-9671, acts as
transfer and dividend disbursing agent. Neither the Custodian nor The
Shareholder Services Group, Inc. has any part in determining the
investment policies of the Fund or which securities are to be purchased or
sold by the Fund.
Stroock & Stroock & Lavan, 7 Hanover Square, New York, New York
10004-2696, as counsel for the Fund, has rendered its opinion as to
certain legal matters regarding the due authorization and valid issuance
of the shares of Common Stock being sold pursuant to the Fund's
Prospectus.
Coopers & Lybrand L.L.P., 1301 Avenue of the Americas, New York, New
York 10019, independent accountants, have been selected as auditors of the
Fund.
APPENDIX
Description of Standard & Poor's Corporation ("S&P") A-1 Commercial
Paper Rating:
The designation A-1 by S&P indicates that the degree of safety
regarding timely payment is either overwhelming or very strong. Those
issues determined to possess overwhelming safety characteristics are
denoted with a plus sign (+) designation.
Description of Moody's Investors Service, Inc. ("Moody's") Prime-1
Commercial Paper Rating:
The rating Prime-1 (P-1) is the highest commercial paper rating
assigned by Moody's. Issuers of P-1 paper must have a superior capacity
for repayment of short-term promissory obligations, and ordinarily will be
evidenced by leading market positions in well established industries, high
rates of return on funds employed, conservative capitalization structures
with moderate reliance on debt and ample asset protection, broad margins
in earnings coverage of fixed financial charges and high internal cash
generation, and well established access to a range of financial markets
and assured sources of alternate liquidity.
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
SHARES COMMON STOCKS-90.6% VALUE
---------- ------------
CAPITAL GOODS-15.7%
2,760 AMP..................... $ 200,790
2,475(a) Advanced Micro Devices 61,566
1,431 Alco Standard........... 89,795
7,425 Allied-Signal........... 252,450
3,045(a) Amdahl................ 33,495
690(a) Andrew................ 36,052
3,105 Apple Computer.......... 121,095
1,220 Autodesk................ 48,342
2,210 Black & Decker.......... 52,487
8,926 Boeing.................. 417,290
770 Briggs & Stratton....... 25,217
5,155 Browning-Ferris Industries 146,273
5,300 Caterpillar............. 292,162
1,170(a) Ceridian 31,444
860 Cincinnati Milacron..... 20,317
445(a) Clark Equipment 24,141
9,499 Columbia/HCA Healthcare. 346,713
6,786(a) Compaq Computer 268,047
4,240 Computer Associates International 205,640
1,330(a) Computer Sciences 67,830
3,015 Cooper Industries....... 102,887
5,956 Corning................. 177,935
690(a) Cray Research 10,867
2,975(a) DSC Communications 106,728
930(a) Data General 9,300
2,248 Deere & Co.............. 148,930
3,740(a) Digital Equipment 124,355
1,490 Dover................... 76,921
1,425 EG & G.................. 20,128
870 E-Systems............... 36,214
2,188 Eastman Chemical........ 110,494
1,990 Eaton................... 98,505
5,875 Emerson Electric........ 367,187
2,150 Fluor................... 92,719
1,638 General Dynamics........ 71,253
44,797 General Electric........ 2,284,647
1,239 General Signal.......... 39,493
900 Giddings & Lewis........ 13,275
1,330 Grainger (W.W.)......... 76,807
1,226 Harnischfeger Industries 34,481
1,045 Harris.................. 44,412
6,649 Hewlett-Packard......... 664,069
3,390 Honeywell .............. 106,785
2,960 Illinois Tool Works..... 129,500
2,770 Ingersoll-Rand.......... 87,255
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
CAPITAL GOODS (CONTINUED)
10,874 Intel................... $ 694,577
1,150(a) Intergraph 9,344
15,372 International Business Machines 1,129,842
1,655 Lockheed ............... 120,194
2,224 Loral................... 84,234
1,270(a) Lotus Development 52,070
665(a) M/A-Com 4,821
2,484 Martin Marietta......... 110,228
1,040 McDonnell Douglas....... 147,680
2,671 Micron Technology....... 117,858
15,204(a) Microsoft 929,345
820 Morrison Knudsen........ 10,455
15,306 Motorola................ 885,835
3,205(a) National Semiconductor 62,498
1,921(a) Navistar International 29,055
6,600 Northern Telecom........ 220,275
1,295 Northrop ............... 54,390
9,647(a) Novell 165,205
7,517(a) Oracle Systems 331,688
3,005 Pall.................... 56,344
1,285 Parker-Hannifin......... 58,468
1,168 Perkin-Elmer............ 29,930
2,610 Pet..................... 51,548
4,090 Pitney Bowes............ 129,858
1,140 Raychem................. 40,613
3,465 Raytheon................ 221,327
5,721 Rockwell International . 204,526
3,375(a) Santa Fe Pacific Gold 43,453
1,960 Scientific-Atlanta...... 41,160
2,500(a) Sun Microsystems 88,750
2,960(a) Tandem Computers 50,690
820 Tektronix .............. 28,085
2,443 Texas Instruments....... 182,920
500 Thomas & Betts.......... 33,563
785 Timken.................. 27,671
1,961 Tyco Laboratories....... 93,148
4,430(a) Unisys 38,209
1,164(a) Varity 42,195
12,668 WMX Technologies........ 332,535
1,376 Western Atlas........... 51,772
9,254 Westinghouse Electric... 113,362
2,773 Xerox................... 274,527
310 Zurn Industries......... 5,580
------------
15,176,121
------------
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
CONSUMER BASIC-15.0%
2,118(a) ALZA $ 38,124
21,125 Abbott Laboratories..... 689,203
6,635 Albertson's............. 192,415
1,645 Allergan................ 46,471
5,256 American Brands......... 197,100
8,008 American Home Products.. 502,502
3,490(a) Amgen 205,910
13,541 Archer-Daniels-Midland.. 279,283
1,355 Bard (C.R.)............. 36,585
1,561 Bausch & Lomb........... 52,879
7,415 Baxter International.... 209,474
1,875 Becton Dickinson & Co... 90,000
2,245(a) Beverly Enterprises 32,272
2,985(a) Biomet 41,790
13,401 Bristol-Myers Squibb.... 775,583
1,995 Bruno's................. 16,708
3,855 CPC International....... 205,279
6,535 Campbell Soup........... 288,357
1,410 Clorox.................. 83,014
3,823 Colgate-Palmolive....... 242,283
1,095 Community Psychiatric Centers 12,045
6,495 ConAgra................. 202,969
950 Fleming Cos............. 22,087
4,127 General Mills........... 235,239
1,545 Giant Food.............. 33,604
970 Great Atlantic & Pacific Tea 17,581
6,515 Heinz (H.J.)............ 239,426
2,255 Hershey Foods........... 109,086
16,850 Johnson & Johnson....... 922,537
5,829 Kellogg................. 338,811
3,035(a) Kroger 73,219
7,672 Lilly (Eli) & Co........ 503,475
1,630 Manor Care.............. 44,621
3,040 Medtronic .............. 169,100
32,953 Merck & Co.............. 1,256,333
720 Millipore............... 34,830
4,315(a) National Medical Enterprises 60,949
8,218 Pfizer.................. 634,840
22,438 Philip Morris Cos....... 1,290,185
2,312 Pioneer Hi Bred International 79,764
1,660 Premark International... 74,285
17,938 Procter & Gamble........ 1,112,156
3,518 Quaker Oats............. 108,178
2,597 Ralston-Purina Group.... 115,891
1,345(a) Ryan's Family Steak House 10,087
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
CONSUMER BASIC (CONTINUED)
1,240 St. Jude Medical........ $ 49,290
12,619 Sara Lee ............... 318,630
5,018 Schering-Plough......... 371,332
580 Shared Medical Systems . 18,995
1,865 Supervalu............... 45,693
4,790 Sysco................... 123,343
5,305 UST..................... 147,214
4,217 Unilever, N.V........... 491,281
4,531 United Healthcare....... 204,461
4,206 U.S. HealthCare......... 173,498
1,470 U.S. Surgical........... 27,930
4,535 Upjohn.................. 139,451
3,500 Warner-Lambert.......... 269,500
1,925 Winn-Dixie Stores....... 98,897
3,058 Wrigley (Wm.) Jr........ 150,989
------------
14,557,034
------------
CONSUMER DISCRETIONARY-13.8%
730 Alberto-Culver, Cl. B Convertible 19,892
3,713 American Stores......... 99,787
6,810 Anheuser-Busch Cos...... 346,459
1,860 Avon Products........... 111,135
1,200(a) Bally Entertainment 7,350
383 Bassett Furniture Industries 10,915
1,788 Brown-Forman............ 54,534
450 Brown Group............. 14,400
2,455 Brunswick............... 46,338
2,615 Charming Shoppes........ 17,324
9,277 Chrysler ............... 454,573
33,703 Coca-Cola............... 1,735,704
2,160 Cooper Tire & Rubber.... 51,030
965 Coors (Adolph).......... 16,164
1,105 Cummins Engine.......... 50,001
2,588 Dana.................... 60,494
1,855 Dayton-Hudson........... 131,241
1,325 Delta Air Lines......... 66,912
2,965 Dillard Department Stores, Cl. A 79,314
14,015 Disney (Walt)........... 646,442
8,885 Eastman Kodak........... 424,259
1,540 Echlin.................. 46,200
26,770 Ford Motor ............. 749,560
3,795 Gap..................... 115,747
19,722 General Motors.......... 833,254
3,250 Genuine Parts........... 117,000
5,810 Gillette................ 434,297
700 Goodrich (B.F.)......... 30,362
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
CONSUMER DISCRETIONARY (CONTINUED)
3,978 Goodyear Tire & Rubber.. $ 133,760
840 Handleman............... 9,555
2,035 Harcourt General........ 71,734
805(a) Hartmarx 4,729
2,270 Hasbro.................. 66,397
1,274 Hilton Hotels........... 85,836
2,920 International Flavors & Fragrances 135,050
1,150 Jostens................. 21,419
11,867 K mart.................. 154,271
975(a) King World Productions 33,638
9,330 Limited................. 169,106
2,040 Liz Claiborne........... 34,425
546 Longs Drug Stores....... 17,336
4,150 Lowe's Cos.............. 144,213
635 Luby's Cafeterias....... 14,208
3,238 Marriott International.. 91,069
4,668 Mattel.................. 117,284
6,505 May Department Stores... 219,544
2,760 Maytag.................. 41,400
18,299 McDonald's.............. 535,246
2,772 Melville ............... 85,586
940 Mercantile Stores....... 37,130
1,920 NIKE, Cl. B............. 143,280
2,131 Nordstrom .............. 89,502
365 Oshkosh B'Gosh.......... 5,110
495 Outboard Marine......... 9,714
1,030 PACCAR.................. 45,578
6,159 Penney (J.C.)........... 274,845
1,600 Pep Boys-Manny, Moe & Jack 49,600
20,776 PepsiCo................. 753,130
1,220 Polaroid ............... 39,650
5,692(a) Price/Costco 73,285
2,654(a) Promus Cos. 82,274
2,130 Reebok International.... 84,135
2,208 Rite Aid................ 51,612
4,225 Rubbermaid.............. 121,469
1,025 Russell................. 32,159
300 SPX..................... 4,988
1,485 Safety-Kleen............ 21,904
9,740 Seagram................. 287,330
1,040(a) Shoney's 13,260
3,722 Southwest Airlines...... 62,344
450 Springs Industries...... 16,650
1,250 Stride Rite............. 13,906
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
CONSUMER DISCRETIONARY (CONTINUED)
1,890 TJX Cos................. $ 29,531
730 TRINOVA................. 21,444
1,665 Tandy................... 83,458
7,480(a) Toys R Us 228,140
1,538(a) USAir Group 6,729
1,680 V.F..................... 81,690
60,164 Wal-Mart Stores......... 1,278,485
3,225 Walgreen................ 141,094
2,620 Wendy's International... 37,663
1,945 Whirlpool............... 97,736
3,420 Woolworth (F.W.)........ 51,300
1,150(a) Zenith Electronics 13,369
------------
13,339,988
------------
ENERGY & RELATED-9.0%
2,453 Amerada Hess............ 111,918
13,038 Amoco................... 770,872
1,582 Ashland Oil............. 54,579
4,210 Atlantic Richfield...... 428,367
3,670 Baker Hughes............ 66,977
3,380 Burlington Resources.... 118,300
17,060 Chevron................. 761,302
2,705 Coastal................. 69,654
4,790 Dresser Industries...... 90,411
32,534 Exxon................... 1,976,440
915 Foster Wheeler.......... 27,221
2,986 Halliburton............. 98,911
625 Helmerich & Payne....... 16,016
1,351 Kerr-McGee.............. 62,146
885 Louisiana Land & Exploration 32,192
1,415 McDermott International. 35,021
10,405 Mobil................... 876,621
8,170 Occidental Petroleum.... 157,272
2,590 Oryx Energy............. 30,756
1,205 Pennzoil................ 53,171
6,830 Phillips Petroleum...... 223,683
2,135(a) Rowan Cos. 13,077
14,041 Royal Dutch Petroleum... 1,509,408
2,318(a) Santa Fe Energy Resources 18,544
6,375 Schlumberger............ 321,141
2,795 Sun..................... 80,356
6,780 Texaco.................. 405,953
7,495 USX-Marathon Group...... 122,731
6,375 Unocal.................. 173,719
------------
8,706,759
------------
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
FINANCE-8.9%
2,960 Aetna Life & Casualty... $ 139,490
3,045 Ahmanson (H.F.) & Co.... 49,101
1,105 Alexander & Alexander Services 20,442
13,305 American Express........ 392,497
5,455 American General........ 154,104
8,277 American International Group 811,146
10,650 Banc One ............... 270,244
2,800 Bank of Boston.......... 72,450
9,708 BankAmerica............. 383,466
2,070 Bankers Trust New York.. 114,626
2,525 Barnett Banks........... 96,897
1,376 Beneficial.............. 53,664
2,750 Boatmen's Bancshares.... 74,594
1,885 CIGNA................... 119,933
4,844 Chase Manhattan......... 166,512
6,416 Chemical Banking........ 230,174
2,275 Chubb................... 176,028
10,306 Citicorp................ 426,411
1,430 Continental............. 27,170
3,749 CoreStates Financial.... 97,474
4,725 Federal Home Loan Mortgage 238,612
2,409 First Chicago........... 115,030
2,135 First Fidelity Bancorp.. 95,808
1,991 First Interstate Bancorp 134,641
4,595 First Union............. 190,118
3,525 Fleet Financial Group... 114,562
2,130 General Re.............. 263,587
1,620 Golden West Financial... 57,105
3,465 Great Western Financial. 55,440
2,510 Household International 93,184
1,300 Jefferson-Pilot......... 67,438
6,380 KeyCorp................. 159,500
2,505 Lincoln National........ 87,675
3,873 Mellon Bank............. 118,611
5,076 Merrill Lynch & Co...... 181,467
4,954 Morgan (J.P.) & Co...... 277,424
4,210 NBD Bancorp............. 115,249
3,897 National City........... 100,835
8,066 Norwest................. 188,543
6,105 PNC Financial........... 128,968
2,560 Providian............... 79,040
1,645 SAFECO.................. 85,540
2,185 St. Paul Cos............ 97,779
9,207 Sears, Roebuck & Co..... 423,522
3,130 Shawmut National........ 51,254
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
FINANCE (CONTINUED)
3,110 SunTrust Banks.......... $ 148,503
1,897 Torchmark............... 66,158
1,831 Transamerica............ 91,092
8,448 Travelers .............. 274,560
1,960 UNUM.................... 73,990
2,365 USF & G................. 32,223
585 USLIFE.................. 20,402
2,575 U.S. Bancorp............ 58,259
4,499 Wachovia ............... 145,093
1,362 Wells Fargo & Co........ 197,490
------------
8,505,125
------------
GENERAL BUSINESS-6.7%
12,942(a) Airtouch Communications 376,936
1,930 American Greetings...... 52,110
3,675 Automatic Data Processing 214,987
2,790 Block (H & R)........... 103,579
1,615 CBS..................... 89,431
4,055 Capital Cities/ABC...... 345,689
2,530 Circuit City Stores..... 56,292
6,832(a) Cisco Systems 239,974
6,199 Comcast, Cl. A.......... 97,247
4,467 Dean Witter, Discover & Co. 151,320
2,140 Deluxe.................. 56,710
2,385 Dial.................... 50,681
4,015 Donnelley (R.R.) & Sons. 118,442
2,625 Dow Jones & Co.......... 81,375
4,450 Dun & Bradstreet........ 244,750
1,460(a) Federal Express 87,965
2,888 First Data.............. 136,819
3,720 Gannett ................ 198,090
780 Harland (John H.)....... 15,600
2,786 ITT..................... 246,909
2,000 Interpublic Group of Cos. 64,250
1,415 Knight-Ridder........... 71,457
3,870 MBNA.................... 90,461
1,909 Marsh & McLennan Cos.... 151,288
1,307 McGraw-Hill............. 87,406
360 Meredith ............... 16,785
11,016 Minnesota
Mining & Manufacturing 587,979
3,845 Morton International.... 109,582
750(a) National Education 3,094
1,305 National Service Industries 33,441
7,258 NationsBank............. 327,517
2,760 New York Times, Cl. A... 61,065
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
GENERAL BUSINESS (CONTINUED)
1,540(a) Rollins Environmental Services $ 7,508
2,770 Salomon................. 103,875
2,260 Service Corporation International 62,715
1,695 TRW..................... 111,870
15,053(a) Tele-Communications, Cl. A 327,403
1,435 Teledyne................ 28,879
2,310 Textron................. 116,366
9,940 Time Warner............. 349,143
3,348 Times Mirror............ 105,044
1,755 Tribune................. 96,086
3,290 United Technologies..... 206,859
9,349(a) Viacom, Cl. B (non-voting) 379,803
2,740 Whitman................. 47,265
------------
6,512,047
------------
MANUFACTURING-PROCESSING--6.2%
1,110 ASARCO.................. 31,635
2,960 Air Products & Chemicals 132,090
5,880 Alcan Aluminium......... 149,205
2,360 Aluminum Co. Of America. 204,435
9,123 American Barrick Resources 202,987
2,640(a) Armco 17,490
1,470 Avery Dennison.......... 52,185
755 Ball.................... 23,782
1,340 Bemis................... 32,160
2,849(a) Bethlehem Steel 51,282
2,320(a) Crown Cork & Seal 87,580
2,400 Cyprus Amax Minerals.... 62,700
7,254 Dow Chemical............ 487,831
17,860 DuPont (E.I.) de Nemours 1,004,625
525 Eastern Enterprises..... 13,781
2,885 Echo Bay Mines.......... 30,653
1,645 Ecolab.................. 34,545
2,497 Engelhard............... 55,558
970(a) FMC 56,017
1,120 Federal Paper Board..... 32,480
505 First Mississippi....... 12,625
2,440 Grace (W.R.) & Co....... 94,245
1,820 Great Lakes Chemical.... 103,740
1,065 Hercules................ 122,874
3,585 Homestake Mining........ 61,393
3,055 Inco.................... 87,449
1,165(a) Inland Steel Industries 40,921
3,268 International Paper..... 246,325
2,115 James River............. 42,829
4,187 Kimberly-Clark.......... 211,444
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
MANUFACTURING-PROCESSING (CONTINUED)
1,990 Mallinckrodt Group...... $ 59,451
3,435(a) Maxus Energy 11,593
1,560 Mead.................... 75,855
3,080 Monsanto................ 217,140
2,570 Moore................... 48,509
235 NACCO Industries........ 11,368
1,800 Nalco Chemical.......... 60,300
2,272 Newmont Mining.......... 81,792
2,310 Nucor................... 128,205
1,150 Ogden................... 21,563
5,590 PPG Industries.......... 207,529
1,850 Phelps Dodge............ 114,469
1,055 Pittston................ 27,958
6,235 Placer Dome............. 135,611
3,583 Praxair................. 73,452
1,630 Reynolds Metals......... 79,870
1,770 Rohm & Haas............. 101,111
1,985 Scott Paper............. 137,213
1,315 Sigma Aldrich........... 43,395
2,320(a) Stone Container 40,020
1,455 Temple-Inland........... 65,657
1,969 USX-U.S. Steel.......... 69,900
1,835 Union Camp.............. 86,474
3,945 Union Carbide........... 115,884
1,750 Westvaco ............... 68,688
2,493 Williams Cos............ 62,637
2,332 Worthington Industries.. 46,640
------------
5,979,150
------------
SHELTER--2.3%
990 Armstrong World Industries 38,115
970 Boise Cascade........... 25,947
805 Centex.................. 18,314
2,415 Champion International . 88,147
805 Crane................... 21,634
7,180 Federal National
Mortgage Association 523,242
1,205 Fleetwood Enterprises... 22,594
2,387 Georgia-Pacific......... 170,670
11,821 Home Depot.............. 543,766
1,090 Johnson Controls........ 53,410
820 Kaufman & Broad Home.... 10,558
2,920 Louisiana-Pacific....... 79,570
4,210 Masco................... 95,251
4,095 Newell.................. 85,995
1,145(a) Owens Corning Fiberglas 36,640
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
SHELTER (CONTINUED)
750 Potlatch................ $ 27,938
690 Pulte................... 15,870
2,220 Sherwin-Williams........ 73,538
285 Skyline................. 5,486
1,090 Snap-on Tools........... 36,243
1,180 Stanley Works........... 42,185
5,405 Weyerhaeuser............ 202,688
------------
2,217,801
------------
TRANSPORTATION--1.2%
1,965(a) AMR 104,636
2,320 Burlington Northern..... 111,650
2,750 CSX..................... 191,469
2,045 Conrail................. 103,272
955(a) Consolidated Freightways 21,368
3,560 Norfolk Southern........ 215,825
1,045 Roadway Services........ 59,304
2,015 Ryder System............ 44,330
4,824(a) Santa Fe Pacific 84,420
5,350 Union Pacific........... 244,094
700 Yellow.................. 16,713
------------
1,197,081
------------
UTILITIES--11.8%
4,906 ALLTEL.................. 147,793
40,945 AT&T.................... 2,057,486
4,818 American Electric Power. 158,392
14,425 Ameritech............... 582,409
3,842 Baltimore Gas & Electric 85,004
11,455 Bell Atlantic........... 569,886
12,990 BellSouth............... 703,084
4,180 Carolina Power & Light.. 111,292
4,950 Central & South West.... 111,994
3,828 Cinergy................. 89,479
1,325(a) Columbia Gas System 31,137
6,145 Consolidated Edison Co.
of New York 158,234
2,410 Consolidated Natural Gas 85,555
3,835 Detroit Edison.......... 100,189
4,495 Dominion Resources...... 160,696
5,350 Duke Power ............. 203,969
1,725 ENSERCH................. 22,641
6,645 Enron................... 202,672
5,938 Entergy................. 129,894
4,970 FPL Group............... 174,571
25,205 GTE..................... 765,602
3,410 Houston Industries...... 121,481
17,741 MCI Communications...... 325,991
1,390 NICOR................... 31,623
11,066 NYNEX................... 406,676
3,735 Niagara Mohawk Power.... 53,224
SHARES COMMON STOCKS (CONTINUED) VALUE
---------- ------------
UTILITIES (CONTINUED)
3,115 Noram Energy............ $ 16,743
1,745 Northern States Power... 76,780
680 ONEOK................... 12,240
3,960 Ohio Edison............. 73,260
5,803 PECO Energy............. 142,174
2,116 Pacific Enterprises..... 44,965
11,315 Pacific Gas & Electric.. 275,803
11,105 Pacific Telesis Group... 316,493
7,410 PacifiCorp.............. 134,306
3,785 Panhandle Eastern....... 74,754
920 Peoples Energy.......... 24,035
6,390 Public Service Enterprise Group 169,335
11,710 SCEcorp................. 171,259
2,260 Sonat................... 63,280
17,145 Southern................ 342,900
15,700 Southwestern Bell....... 633,888
9,115 Sprint.................. 251,802
4,472 Tenneco................. 190,060
5,885 Texas Utilities......... 188,320
1,035 Transco Energy.......... 17,207
5,605 Unicom.................. 134,520
2,685 Union Electric.......... 94,982
11,967 US West................. 426,324
------------
11,466,404
------------
TOTAL COMMON STOCKS
(cost $84,544,224) $87,657,510
============
PRINCIPAL SHORT-TERM
AMOUNT INVESTMENTS--9.3% VALUE
---------- ------------
U. S. TREASURY BILLS:
$1,559,000(b) 4.86%, 1/5/95........... $ 1,542,432
1,250,000(b) 5.00%, 1/26/95 1,234,253
563,000(b) 5.09%, 2/9/95 555,378
1,591,000(b) 5.21%, 2/16/95 1,569,720
310,000(b) 5.33%, 2/23/95 305,983
1,934,000(b) 5.59%, 3/9/95 1,906,310
521,000(b) 5.67%, 3/16/95 513,749
430,000(b) 5.71%, 3/23/95 423,923
999,000(b) 5.55%, 4/6/95 983,312
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $9,035,060) $ 9,035,060
============
TOTAL INVESTMENTS
(cost $93,579,284).......... 99.9% $96,692,570
====== ============
CASH AND RECEIVABLES (NET).. .1% $ 113,653
====== ============
NET ASSETS.................. 100.0% $96,806,223
====== ============
(a) Non-income producing.
(b) Held in a segregated account as collateral for open financial futures
positions.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF FINANCIAL FUTURES DECEMBER 31, 1994
FINANCIAL FUTURES LONG;
- -------------------------------
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
CONTRACTS BY CONTRACTS EXPIRATION AT 12/31/94
------------ -------------- ------------- -------------
<S> <C> <C> <C> <C>
Standard & Poor's 500........................ 38 $8,765,650 March '95 $100,450
==========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $93,579,284)--see statement..................................... $96,692,570
Cash.................................................................... 26,080
Dividends and interest receivable....................................... 302,183
Receivable for subscriptions to Common Stock............................ 190,843
-------------
97,211,676
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 46,508
Due to Wells Fargo Nikko Investment Advisors............................ 46,508
Payable for Common Stock redeemed ...................................... 153,971
Payable for futures variation margin_Note 3(a).......................... 60,250
Due to Wells Fargo Institutional Trust Company, N.A..................... 16,736
Payable for investment securities purchased............................. 2,173
Accrued expenses........................................................ 79,307 405,453
---------- -------------
NET ASSETS ................................................................ $96,806,223
=============
REPRESENTED BY:
Paid-in capital......................................................... $94,430,237
Accumulated undistributed investment income--net........................ 25,689
Accumulated distributions in excess of net realized gain on investments_Note 1(c) (863,439)
Accumulated net unrealized appreciation on investments
(including $100,450 net unrealized appreciation on financial
futures)_Note 3(b).................................................... 3,213,736
-------------
NET ASSETS at value applicable to 7,480,116 shares outstanding (200 million
shares of $.001 par value Common Stock authorized)...................... $96,806,223
=============
NET ASSET VALUE, per share
($96,806,223 / 7,480,116 shares)........................................ $12.94
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
INVESTMENT INCOME:
<S> <C> <C>
INCOME:
Cash dividends (net of foreign taxes witheld at source of $7,034)..... $2,111,790
Interest.............................................................. 193,576
------------
TOTAL INCOME.................................................... $2,305,366
EXPENSES:
Index management fee--Note 2(a)....................................... $ 116,361
Administration fee_Note 2(a).......................................... 116,361
Auditing fees......................................................... 84,907
Prospectus and shareholders' reports.................................. 27,984
Custodian fees_Note 2(c).............................................. 22,284
Shareholder servicing costs_Note 2(b)................................. 18,359
Directors' fees and expenses_Note 2(d)................................ 16,432
Legal fees............................................................ 15,517
Registration fees..................................................... 5,670
Miscellaneous......................................................... 17,245
------------
441,120
Less_reduction in index management fee and administration fee
due to undertaking_Note 2(a)...................................... 127,153
------------
TOTAL EXPENSES.................................................. 313,967
------------
INVESTMENT INCOME--NET.......................................... 1,991,399
------------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3(a)............................. $ 439,443
Net realized (loss) on financial futures_Note 3(a)...................... (239,890)
------------
NET REALIZED GAIN..................................................... 199,553
Net unrealized (depreciation) on investments (including $102,075 net
unrealized appreciation on financial futures)......................... (1,356,172)
------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (1,156,619)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 834,780
============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-------------------------------
1993 1994
------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 1,100,602 $ 1,991,399
Net realized gain on investments........................................ 8,512,323 199,553
Net unrealized (depreciation) on investments for the year............... (5,843,385) (1,356,172)
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 3,769,540 834,780
------------- -------------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net............................................. (1,029,496) (1,968,656)
In excess of investment income_net...................................... (90,054) ___
From net realized gain on investments................................... (11,029,996) ___
In excess of net realized gain on investments........................... (641,803) (429,123)
------------- -------------
TOTAL DIVIDENDS....................................................... (12,791,349) (2,397,779)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 40,165,929 47,033,174
Dividends reinvested.................................................... 14,046,814 2,397,779
Cost of shares redeemed................................................. (53,943,720) (12,380,738)
------------- -------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 269,023 37,050,215
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... (8,752,786) 35,487,216
NET ASSETS:
Beginning of year....................................................... 70,071,793 61,319,007
------------- -------------
End of year [including distributions in excess of investment income-net; ($90,054)
in 1993 and undistributed investment income_net; $25,689 in 1994]..... $61,319,007 $96,806,223
============= ==============
SHARES SHARES
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 2,578,683 3,593,641
Shares issued for dividends reinvested.................................. 1,010,623 186,922
Shares redeemed......................................................... (3,516,794) (945,685)
------------- -------------
NET INCREASE IN SHARES OUTSTANDING.................................... 72,512 2,834,878
============= ==============
</TABLE>
See notes to financial statements.
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
FINANCIAL HIGHLIGHTS
Reference is made to page 2 of the Fund's Prospectus dated May 1, 1995.
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Wells Fargo
Nikko Investment Advisors ("WFNIA") serves as the Fund's index manager. Wells
Fargo Investment Advisors ("WFIA"), the predecessor index manager of the
Fund, and The Nikko Securities Co., Ltd. and an affiliate ("Nikko") each own
50% of WFNIA. Wells Fargo Institutional Trust Company, N.A. ("WFITC"), an
affiliate of WFNIA, is the custodian of the Fund's investments. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's administrator. Prior to August
24, 1994, Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus,
acted as the exclusive distributor of the Fund's shares, which are sold
without a sales charge. Effective August 24, 1994, Dreyfus became a direct
subsidiary of Mellon Bank, N.A.
Effective May 1, 1994, your Fund began operating under the name Dreyfus
Stock Index Fund.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(A) PORTFOLIO VALUATION: Investments in securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market.
Securities not listed on an exchange or the national securities market, or
securities for which there were no transactions, are valued at the average of
the most recent bid and asked prices. Bid price is used when no asked price
is available. Short-term investments are carried at amortized cost, which
approximates value. Investments denominated in foreign currencies are
translated to U.S. dollars at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a
quarterly basis. Dividends from net realized capital gain are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. This may result in distributions that are in excess of net
realized gains on a fiscal year basis. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.
Dividends in excess of net realized gain for financial statement purposes
result from Federal income tax distribution requirements, primarily losses
from securities transactions incurred in prior years.
During the year ended 1994, the Fund reclassified $100,934 of expenses
from undistributed investment income to paid-in capital and net assets were not
affected by the change.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of taxable income sufficient to relieve it from substantially all Federal
income and excise taxes.
NOTE 2--MANAGEMENT FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) Fees paid by the Fund pursuant to the provisions of an Index
Management Agreement with WFNIA and an Administration Agreement with Dreyfus
are payable monthly. WFNIA and Dreyfus each receive annual fees of .15 of 1%
of the average daily value of the Fund's net assets. The agreements further
provide that if in any full year the aggregate expenses of the Fund,
exclusive of interest, taxes, brokerage and extraordinary expenses, exceed
the expense limitation of any state having jurisdiction over the Fund, the
Fund may deduct from the fees to be paid to each of WFNIA and Dreyfus, or
WFNIA and Dreyfus will each bear 50% of such excess expenses. The most
stringent state expense limitation applicable to the Fund presently requires
reimbursement of expenses in any full year that such expenses exceed 2 1/2%
of the first $30 million, 2% of the next $70 million and 1 1/2% of the excess
over $100 million of the average value of the Fund's net assets in accordance
with California "blue sky" regulations. However, WFNIA and Dreyfus have
currently undertaken from January 1, 1994 until December 31, 1994 and
thereafter until such a time as they give shareholders at least 180 days
notice to the contrary that if the Fund's aggregate expenses (exclusive of
brokerage commissions, transaction fees and extraordinary expenses) exceed an
annual rate of .40 of 1% of the average daily value of the Fund's net assets,
the Fund may deduct from the payments to be made to WFNIA and Dreyfus, or
WFNIA and Dreyfus will bear, such excess expense. Pursuant to undertaking,
WFNIA and Dreyfus reduced the index management fee and the administration fee
for the year ended December 31, 1994, $63,576 and $63,577, respectively.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. 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. During year ended
December 31, 1994, the Fund was charged an aggregate of $2,179 pursuant to
the Shareholder Services Plan.
(C) During the year ended December 31, 1994, Wells Fargo Institutional
Trust Company, N.A. earned $22,284 for custodian services provided to the
Fund.
(D) Prior to August 24, 1994, certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of Dreyfus. Each director
who is not an "affiliated person" receives an annual fee of $2,500 and an
attendance fee of $500 per meeting.
NOTE 3--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
other than short-term securities, for the year ended December 31, 1994
amounted to $32,879,576 and $2,068,451, respectively.
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund is engaged in trading financial futures contracts. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments (see Statement of Financial Futures). Investments in
financial futures require the Fund to "mark to market" on a daily basis,
which reflects the change in the market value of the contract at the close of
each day's trading. Accordingly, variation margin payments are made or
received to reflect daily unrealized gains or losses. When the contracts are
closed, the Fund recognizes a realized gain or loss. These investments
require initial margin deposits with a custodian, which consist of cash or
cash equivalents, up to approximately 10% of the contract amount. The amount
of these deposits is determined by the exchange or Board of Trade on which
the contract is traded and is subject to change.
(B) At December 31, 1994, accumulated net unrealized appreciation on
investments was $3,213,736, consisting of $7,122,194 gross unrealized
appreciation and $3,908,458 gross unrealized depreciation.
At December 31, 1994, the costs of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS STOCK INDEX FUND
(INCORPORATED AS DREYFUS LIFE AND ANNUITY INDEX FUND, INC.)-SEE NOTE 1
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
DREYFUS STOCK INDEX FUND:
We have audited the accompanying statement of assets and liabilities of
Dreyfus Stock Index Fund, incorporated as Dreyfus Life and Annuity Index
Fund, Inc. (the Fund), including the statements of investments and financial
futures, as of December 31, 1994, 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 two years in the period then ended, for the period September 1, 1992 to
December 31, 1992, the years ended August 31, 1992, and 1991, and for the
period from September 28, 1989 (commencement of operations) to August 31,
1990. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Stock Index Fund as of December 31, 1994, the results of
its operations, the changes in its net assets, and the financial highlights
for the periods referred to above, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 17, 1995
