<PAGE>
Dreyfus
Stock
Index Fund
Annual Report
December 31, 1996
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to inform you that Dreyfus Stock Index Fund produced a total
return of 22.54% for the 12 months ended December 31, 1996, based on net asset
value.* This compares with a total return of 22.95% for the Standard & Poor's
500 Composite Stock Price Index (the S&P 500), which serves as the benchmark for
the Fund.** The difference is accounted for by transaction fees and other Fund
expenses.
Stocks of the kind represented in the S&P 500, which is dominated by large
capitalization companies, had a particularly good year. Small companies, as
measured by the Russell 2000 Index, did not move upward as strongly. That Index
provided a total return of 16.50% for the year.***
ECONOMIC REVIEW
The much-heralded "Goldilocks" phase of the U.S. economy--not too hot and not
too cold--may be ending. First, the slowdown to 2% GDP growth seems to have been
confined to the summer and recent data depict faster growth for the fourth
quarter of 1996. Second, inflation has begun a cyclical climb, although there is
yet little linkage to the tight labor market. The economy is operating with very
little slack near the close of its sixth year of expansion. Hence, the
resumption of faster growth quickly restored a rising trend to bond yields and
pulled short-term rates above their December lows. As yet there is little
expectation of tighter Federal Reserve policy, although sustained above-trend
growth would probably justify higher rates during 1997. Modest tightening in
1997 would in our opinion help allay inflation fears and sustain another year of
economic growth.
Although the economy grew near its 2.4% long-term trend rate in 1996, it was
nonetheless quite volatile during the year. After a strong first half, and then
the summer slowdown, the return to faster growth late in the year is not broad-
based. Strong sectors are in manufacturing, exports, services and construction.
By contrast, some retailers found Christmas sales disappointing and capital
goods orders are mixed. However, inventories are quite lean and this tilts the
odds towards yet another year of growth in 1997. While corporate profit growth
slowed in 1996, profits still tended to surprise on the upside and should
maintain steady growth in 1997 too.
Accelerating wage growth in 1996 did not fuel higher prices. And surging
energy prices have failed to lift inflation elsewhere. Indeed, core inflation
(excluding food and energy) decelerated last year. The general price structure
has so far ignored the higher oil price, responding to it as temporary. However,
oil prices have been rising now for a year and, at some point, their ability to
raise the overall price level may become worrisome, especially if the Fed finds
them significant.
Both long-term and short-term interest rates were quite volatile in 1996. The
strength of the economy prompted rising rates through summer's end, but bond
yields then fell 90 basis points after the economy slowed. That period of low
rates may have ended now that faster growth is again apparent.
We believe the economy has reverted to a period of growth above the long-term
average. Key issues are whether faster growth will fuel higher inflation this
time and at what point rising oil prices would disturb price stability. The
economy will shortly begin a seventh expansion year and continued volatility in
growth and in sentiment is likely.
MARKET OVERVIEW
The stock market in 1996 was a mixture of agony and ecstasy, with the accent
for most of the year on the more desirable of those two alternatives. By the end
of the year, the Standard & Poor's 500 Composite Stock Price Index had
registered a gain of 22.95%, while the blue chip Dow Jones Industrial Average
("DJIA") gained 28.91%.+ The road leading to those impressive year-end gains was
not a smooth one, however.
The market year began haltingly, in the wake of shaky business conditions at
the end of the previous year. As 1996 unfolded, however, the market picked up
steam. The economy took on characteristics that continued for much of the
<PAGE>
year--low inflation, moderate growth and relatively low interest rates. This was
a combination that investors liked, perhaps too much. By midyear, satisfaction
with the economy turned into fear that economic growth might be overdone.
The prevailing nervousness about potential inflation served to boost interest
rates temporarily, without the need for Federal Reserve intervention. This was a
temporary setback for large capitalization stocks, but more damaging to Nasdaq
issues and particularly to the smaller capitalization stocks measured by the
Russell 2000 Index.
As summer turned into fall, interest rates eased and inflation remained at
bay. The benign economic environment allowed many stocks to resume their upward
course, causing a string of record-breaking performances by the DJIA and other
broad market indexes. In mid-fall the prospect that government would continue
divided in Washington, with a Democratic President and a Republican-controlled
Congress, appeared to be another plus factor for the market. Stocks continued to
surge, hardly pausing for breath when Chairman Alan Greenspan raised a caution
signal in early December by referring to "irrational exuberance" in the equity
markets.
Stock market veterans issued a stream of warnings that what goes up so
strongly and consistently must, at some point, come down. Nonetheless, a fairly
steady flow of new money coming into stocks from people putting money aside for
retirement seemed to be fueling the boom. While at the very end of the year,
caution caused a softening of stock prices, which backed away from the year's
record of 6560.91 on the DJIA, that record was surpassed in early 1997, when the
average surpassed 6700.
Among the best performing groups for 1996 were oil drillers, semi-conductors,
computers, financial enterprises and consumer nondurables. Corporate earnings
were very strong for much of the year, but showed signs of flagging as the year
wore on. This raised questions in the minds of many market observers whether the
scorching pace of the past year could be maintained.
We appreciate your investment and your confidence in the Dreyfus Corporation.
Sincerely,
Steven A. Falci, CFA
Portfolio Manager
January 20, 1997 New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC.--Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
*** The Russell 2000 Index is a widely accepted unmanaged index of small cap
stock performance.
+ The Dow Jones Industrial Average (DJIA) is a price weighted average of 30
actively traded blue chip stocks.
<PAGE>
Dreyfus Stock Index Fund December 31, 1996
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS STOCK INDEX
FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
INSERT PLOT POINTS HERE
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
- --------------------------------------------------------------------------------
One Year Ended Five Years Ended From Inception (9/29/89)
December 31, 1996 December 31, 1996 to December 31, 1996
22.54% 14.64% 13.69%
Past performance is not predictive of future performance.
The Fund's performance does not reflect the deduction of additional charges
applicable to separate accounts of participating insurance companies using the
Fund as an underlying investment. The above graph compares a $10,000 investment
made in Dreyfus Stock Index Fund on 9/29/89 (Inception Date) to a $10,000
investment made in the Standard & Poor's 500 Composite Stock Price Index on that
date. For comparative purposes, the value of the Index on 9/30/89 is used as the
beginning value on 9/29/89. All dividends and capital gain distributions are
reinvested. The Fund's performance shown in the line graph takes into account
all applicable fees and expenses. The Standard & Poor's 500 Composite Stock
Price Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
<PAGE>
Dreyfus Stock Index Fund
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Statement of Investments December 31, 1996
Shares COMMON STOCKS--91.6% Value
---------- ------------
Basic Industries--5.2%
14,700 Air Products & Chemicals... $ 1,016,137
17,200 Alco Standard.............. 887,950
5,400 Armstrong World Industries. 375,300
13,800 Avery Dennison............. 488,175
4,000 Ball....................... 104,000
6,900 Bemis...................... 254,437
6,400 Boise Cascade.............. 203,200
3,700 Centex..................... 139,212
12,500 Champion International..... 540,625
16,900 Crown Cork & Seal.......... 918,937
32,000 Dow Chemical............... 2,508,000
74,100 duPont (E.I.) de Nemours... 6,993,187
10,300 Eastman Chemical........... 569,075
4,900 (a)FMC........................ 343,612
11,000 Fluor...................... 690,250
12,000 Georgia Pacific............ 864,000
7,100 Goodrich (B.F.)............ 287,550
11,700 Grace (W.R.)............... 605,475
8,300 Great Lakes Chemical....... 388,025
13,500 Hercules................... 583,875
39,600 International Paper........ 1,598,850
11,300 James River................ 374,312
37,200 Kimberly-Clark............. 3,543,300
14,300 Louisiana Pacific.......... 302,087
6,900 Mead....................... 401,062
55,000 Minnesota Mining &
Manufacturing............ 4,558,125
77,344 Monsanto................... 3,006,748
18,700 Morton International....... 762,025
8,900 Nalco Chemical............. 321,512
43,300 Occidental Petroleum....... 1,012,137
24,200 PPG Industries............. 1,358,225
3,700 Potlach.................... 159,100
20,600 Praxair.................... 950,175
8,400 Rohm & Haas................ 685,650
11,300 Sherwin-Williams........... 632,800
6,600 Sigma-Aldrich.............. 412,087
13,000 Stone Container............ 193,375
7,300 Temple-Inland.............. 395,112
9,200 Union Camp................. 439,300
16,800 Union Carbide.............. 686,700
13,400 Westvaco................... 385,250
26,100 Weyerhaeuser............... 1,236,487
7,300 Willamette Industries...... 508,262
-------------
42,683,703
-------------
Capital Goods--21.3%
28,900 AMP........................ 1,109,037
18,000 (a)Advanced Micro Devices..... 463,500
5,900 Alexander & Alexander Services 102,512
22,932 Allegheny Teledyne......... 527,436
Capital Goods (continued)
37,200 AlliedSignal............... $ 2,492,400
16,000 (a)Amdahl..................... 194,000
22,400 American Brands............ 1,111,600
8,000 (a)Andrew..................... 424,500
16,400 Apple Computer............. 342,350
23,700 (a)Applied Materials.......... 851,718
6,000 Autodesk................... 168,000
38,200 Automatic Data Processing.. 1,637,825
25,500 (a)Bay Networks............... 532,312
48,397 Boeing..................... 5,148,230
3,800 Briggs & Stratton.......... 167,200
28,000 Browning-Ferris Industries. 735,000
35,600 (a)COMPAQ Computer............ 2,643,300
51,850 (a)CUC International.......... 1,231,437
20,500 (a)Cabletron Systems.......... 681,625
9,700 Case....................... 528,650
25,200 Caterpillar................ 1,896,300
9,100 (a)Ceridian................... 368,550
5,200 Cincinnati Milacron........ 113,750
85,400 (a)Cisco Systems.............. 5,433,575
22,500 Cognizant.................. 742,500
47,950 Computer Associates
International............ 2,385,512
10,000 (a)Computer Sciences.......... 821,250
14,200 Cooper Industries.......... 598,175
6,050 Crane...................... 175,450
5,200 Cummins Engine............. 239,200
15,400 (a)DSC Communications......... 275,275
5,100 (a)Data General............... 73,950
34,000 Deere...................... 1,381,250
23,700 (a)Dell Computer.............. 1,259,062
10,900 Deluxe..................... 356,975
20,400 (a)Digital Equipment.......... 742,050
14,800 Dover...................... 743,700
12,700 Dow Jones & Co............. 430,212
23,100 Dresser Industries......... 716,100
22,400 Dun & Bradstreet........... 532,000
6,200 EG&G....................... 124,775
30,600 EMC........................ 1,013,625
10,200 Eaton...................... 711,450
29,500 Emerson Electric........... 2,854,125
58,900 First Data................. 2,149,850
5,300 Foster Wheeler............. 196,762
8,300 General Dynamics........... 585,150
216,700 General Electric........... 21,426,285
6,600 General Signal............. 282,150
15,900 Genuine Parts.............. 707,550
4,300 Giddings & Lewis........... 55,362
7,000 Grainger (W.W.)............ 561,750
13,700 H&R Block.................. 397,300
<PAGE>
Dreyfus Stock Index Fund
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Statement of Investments (continued) December 31, 1996
Shares COMMON STOCKS (continued) Value
---------- ------------
Capital Goods (continued)
6,500 Harnischfeger Industries... $ 312,812
5,100 Harris..................... 349,987
133,900 Hewlett-Packard............ 6,728,475
16,700 Honeywell.................. 1,098,025
16,300 Illinois Tool Works........ 1,301,962
14,400 Ingersoll-Rand............. 640,800
68,200 International Business
Machines................. 10,298,200
108,000 Intel...................... 14,141,250
6,300 (a)Intergraph................. 64,575
10,700 Interpublic Group Cos...... 508,250
5,400 Johnson Controls........... 447,525
17,000 (a)LSI Logic.................. 454,750
41,300 Laidlaw, Cl. B............. 474,950
25,400 Lockheed Martin............ 2,324,100
83,898 Lucent Technologies........ 3,880,282
9,800 Mallinckrodt Group......... 432,425
9,500 Marsh & McLennan........... 988,000
7,200 McDermott International.... 119,700
27,900 McDonnell Douglas.......... 1,785,600
27,500 Micron Technology.......... 800,937
157,300 (a)Microsoft.................. 12,996,912
78,000 Motorola................... 4,787,250
18,300 (a)National Semiconductor..... 446,062
6,200 National Service Industries 231,725
34,000 Northern Telecommunications 2,103,750
7,600 (a)Northrop Grumman........... 628,900
45,300 (a)Novell..................... 428,934
86,500 (a)Oracle..................... 3,611,375
6,800 Owens-Corning.............. 289,850
15,101 Pall....................... 385,075
9,800 Parker-Hannifin............ 379,750
5,700 Perkin-Elmer............... 335,587
19,500 Pitney Bowes............... 1,062,750
29,300 Rockwell................... 1,783,638
5,900 Raychem.................... 472,737
31,100 Raytheon................... 1,496,687
10,800 Ryder System............... 303,750
7,700 Safety-Kleen............... 126,087
10,200 Scientific-Atlanta......... 153,000
32,700 (a)Seagate Technology......... 1,291,650
31,000 Service Corp. International 868,000
3,100 Shared Medical Systems..... 152,675
23,000 (a)Silicon Graphics........... 586,500
8,050 Snap-On.................... 286,781
11,700 Stanley Works.............. 315,900
48,300 (a)Sun Microsystems........... 1,240,706
22,900 (a)3COM....................... 1,680,287
3,700 TRINOVA.................... 134,587
16,700 TRW........................ 826,650
15,600 (a)Tandem Computers........... 214,500
Capital Goods (continued)
4,300 Tektronix.................. $ 220,375
23,600 (a)Tellabs.................... 887,950
25,000 Texas Instruments.......... 1,593,750
10,900 Textron.................... 1,027,325
20,000 Thermo Electron............ 825,000
7,000 Thomas & Betts............. 310,625
4,100 Timken..................... 188,087
20,600 Tyco International......... 1,089,225
23,000 (a)Unisys..................... 155,250
31,700 United Technologies........ 2,092,200
82,500 Westinghouse Electric...... 1,639,687
63,800 WMX Technologies........... 2,081,475
42,700 Xerox...................... 2,247,087
-------------
172,576,298
-------------
Consumer Cyclical--10.8%
33,100 Albertson's................ 1,179,187
9,900 American Greetings, Cl. A.. 280,912
19,100 American Stores............ 780,712
20,000 (a)Autozone................... 550,000
16,400 Becton, Dickinson & Co..... 711,350
11,500 Black & Decker............. 346,437
12,900 Brunswick.................. 309,600
13,900 CVS........................ 575,113
13,800 (a)Charming Shoppes........... 69,862
95,900 Chrysler................... 3,164,700
12,900 Circuit City Stores........ 388,612
42,900 Comcast, Cl. A............. 764,156
10,900 Cooper Tire and Rubber..... 215,275
13,400 Dana....................... 437,175
20,700 Darden Restaurants......... 181,125
28,500 Dayton Hudson.............. 1,118,625
15,000 Dillard Department Stores, Cl. A 463,125
89,300 Disney (Walt).............. 6,217,512
19,800 Donnelley (R.R.) & Sons.... 621,225
8,200 Echlin..................... 259,325
27,300 (a)Federated Department Stores 931,612
4,600 Fleetwood Enterprises...... 126,500
4,900 Fleming Cos................ 84,525
156,100 Ford Motor................. 4,975,687
10,200 (a)Fruit of the Loom, Cl. A... 386,325
18,500 Gannett.................... 1,385,187
37,300 Gap........................ 1,123,662
18,100 (a)General Instrument......... 391,412
99,500 General Motors............. 5,547,125
7,900 Giant Food, Cl. A.......... 272,550
20,400 Goodyear Tire & Rubber..... 1,048,050
5,000 Great Atlantic & Pacific... 159,375
17,000 (a)HFS........................ 1,015,750
9,400 Harcourt General........... 433,575
4,000 Harland (John H.).......... 132,000
<PAGE>
Dreyfus Stock Index Fund
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Statement of Investments (continued) December 31, 1996
Shares COMMON STOCKS (continued) Value
---------- ------------
Consumer Cyclical (continued)
13,500 (a)Harrah's Entertainment..... $ 268,312
11,300 Hasbro..................... 439,287
32,600 Hilton Hotel............... 851,675
63,200 Home Depot................. 3,167,900
15,300 (a)ITT........................ 663,637
15,600 ITT Industries............. 382,200
5,100 Jostens.................... 107,737
63,700 (a)K mart..................... 660,887
4,900 (a)King World Productions..... 180,687
12,300 Knight-Ridder.............. 470,475
16,600 (a)Kroger..................... 771,900
35,700 Limited.................... 655,987
9,400 Liz Claiborne.............. 363,075
2,600 Longs Drug Stores.......... 127,725
22,800 Lowes...................... 809,400
16,900 Marriott International..... 933,725
21,100 Masco...................... 759,600
35,800 Mattel..................... 993,450
33,100 May Department Stores...... 1,547,425
13,200 Maytag..................... 260,700
91,800 McDonald's................. 4,153,950
13,100 McGraw-Hill Cos............ 604,237
4,800 Mercantile Stores.......... 237,000
3,600 Meredith................... 189,900
13,100 Moore...................... 266,912
1,133 NACCO Industries, Cl. A.... 60,615
37,900 NIKE, Cl. B................ 2,264,525
9,700 (a)Navistar International..... 88,512
12,700 New York Times, Cl. A...... 482,600
10,700 Nordstrom.................. 379,181
5,100 PACCAR..................... 346,800
30,400 Penney (J.C.).............. 1,482,000
8,200 Pep Boys-Manny, Moe & Jack. 252,150
25,800 (a)Price/Costco............... 648,225
7,300 Reebok International....... 306,600
16,200 Rite Aid................... 643,950
5,000 Russell.................... 148,750
51,500 Sears, Roebuck & Co........ 2,375,437
2,700 Springs Industries......... 116,100
6,500 Stride Rite................ 65,000
8,900 Supervalu.................. 252,537
23,600 Sysco...................... 769,950
10,300 TJX Cos.................... 487,962
7,700 Tandy...................... 338,800
87,400 (a)Tele-Communications, Cl. A. 1,141,662
74,900 Time Warner................ 2,808,750
13,000 Times Mirror, Cl. A........ 646,750
36,100 (a)Toys R Us.................. 1,083,000
8,100 Tribune.................... 638,887
82,200 (a)US West Media Group........ 1,520,700
8,400 V.F........................ 567,000
Consumer Cyclical (continued)
46,601 (a)Viacom, Cl. B.............. $ 1,625,209
301,900 Wal-Mart Stores............ 6,905,962
32,400 Walgreen................... 1,296,000
17,100 Wendy's International...... 350,550
9,800 Whirlpool.................. 456,925
19,900 Winn-Dixie Stores.......... 629,337
17,600 (a)Woolworth.................. 385,000
-------------
88,080,572
-------------
Consumer Staples--12.0%
3,700 Alberto-Culver, Cl. B...... 177,600
65,700 Anheuser-Busch Cos......... 2,628,000
71,551 Archer Daniels Midland..... 1,574,122
17,500 Avon Products.............. 999,687
9,100 Brown-Forman, Cl. B........ 416,325
18,900 CPC International.......... 1,464,750
30,800 Campbell Soup.............. 2,471,700
6,800 Clorox..................... 682,550
327,500 Coca-Cola.................. 17,234,687
19,300 Colgate-Palmolive.......... 1,780,425
31,700 ConAgra.................... 1,577,075
5,000 Coors (Adolph), Cl. B...... 95,000
43,900 Eastman Kodak.............. 3,522,975
8,500 Ecolab..................... 319,812
20,600 General Mills.............. 1,305,525
73,500 Gillette................... 5,714,625
48,400 Heinz (H.J.)............... 1,730,300
20,200 Hershey Foods.............. 883,750
14,600 International Flavors &
Fragrances............... 657,000
175,300 Johnson & Johnson.......... 8,721,175
27,700 Kellogg.................... 1,817,812
8,300 Manor Care................. 224,100
20,900 Newell..................... 658,350
204,500 PepsiCo.................... 5,981,625
107,200 Philip Morris Cos.......... 12,073,400
10,900 Pioneer Hi-Bred International 763,000
6,000 Polaroid................... 261,000
89,800 Procter & Gamble........... 9,653,500
17,900 Quaker Oats................ 682,437
13,900 Ralston-Ralston Purina Group 1,019,912
19,700 Rubbermaid................. 448,175
63,700 Sara Lee................... 2,372,825
49,100 Seagram.................... 1,902,625
8,200 Tupperware................. 439,725
24,500 UST........................ 793,187
21,100 Unilever, N.V.............. 3,697,775
13,600 Whitman.................... 311,100
15,300 Wrigley, (Wm) Jr........... 860,625
-------------
97,918,256
-------------
<PAGE>
Dreyfus Stock Index Fund
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Statement of Investments (continued) December 31, 1996
Shares COMMON STOCKS (continued) Value
---------- ------------
Energy--9.1%
12,200 Amerada Hess............... $ 706,075
65,400 Amoco...................... 5,264,700
8,500 Ashland.................... 372,937
21,200 Atlantic Richfield......... 2,809,000
19,000 Baker Hughes............... 655,500
16,400 Burlington Resources....... 826,150
85,900 Chevron.................... 5,583,500
13,800 Coastal.................... 674,475
7,300 Columbia Gas System........ 464,462
12,500 Consolidated Natural Gas... 690,625
2,700 Eastern Enterprises........ 95,512
33,500 Enron...................... 1,444,687
9,200 Enserch.................... 211,600
163,500 Exxon...................... 16,023,000
16,500 Halliburton................ 994,125
3,320 Helmerich & Payne.......... 173,055
6,400 Kerr-McGee................. 460,800
4,500 Louisiana Land & Exploration 241,312
51,900 Mobil...................... 6,344,775
6,500 Nicor...................... 232,375
18,100 Noram Energy............... 278,287
3,600 Oneok...................... 108,000
13,800 (a)Oryx Energy................ 341,550
11,100 Pacific Enterprises........ 337,162
19,900 Panenergy.................. 895,500
6,100 Pennzoil................... 344,650
4,600 Peoples Energy............. 155,825
34,600 Phillips Petroleum......... 1,531,050
11,200 (a)Rowan Cos.................. 253,400
70,500 Royal Dutch Petroleum...... 12,037,875
11,900 (a)Santa Fe Energy Resources.. 165,112
32,500 Schlumberger............... 3,245,937
11,300 Sonat...................... 581,950
21,900 Tenneco.................... 988,238
9,600 Sun........................ 234,000
34,800 Texaco..................... 3,414,750
37,900 USX-Marathon Group......... 904,862
32,944 Union Pacific Resources Group 963,614
32,900 Unocal..................... 1,336,562
7,100 (a)Western Atlas.............. 503,212
20,700 Williams Cos............... 776,250
-------------
73,666,451
-------------
Health Care-- 8.3%
102,300 Abbott Laboratories........ 5,191,725
8,600 (a)Allergan................... 306,375
11,100 Alza....................... 287,212
84,000 American Home Products..... 4,924,500
34,800 (a)Amgen...................... 1,892,250
7,500 Bard (C.R.)................ 210,000
7,300 Bausch & Lomb.............. 255,500
Health Care (continued)
35,900 Baxter International....... $ 1,471,900
13,100 (a)Beverly Enterprises........ 167,025
15,200 Biomet..................... 229,900
23,400 (a)Boston Scientific.......... 1,404,000
65,900 Bristol-Myers Squibb....... 7,166,625
88,350 Columbia/HCA Healthcare.... 3,600,262
30,300 Corning.................... 1,401,375
9,600 Guidant.................... 547,200
21,400 (a)Humana..................... 409,275
72,600 Lilly (Eli)................ 5,299,800
31,600 Medtronic.................. 2,148,800
158,600 Merck & Co................. 12,569,050
5,700 Millipore.................. 235,837
84,800 Pfizer..................... 7,027,800
66,900 Pharmacia & Upjohn......... 2,650,912
48,600 Schering-Plough............ 3,146,850
10,700 St. Jude Medical........... 456,087
28,600 (a)Tenet Healthcare........... 625,625
8,300 U.S. Surgical.............. 326,812
24,300 United Healthcare.......... 1,093,500
35,700 Warner-Lambert............. 2,677,500
-------------
67,723,697
-------------
Interest Sensitive--13.5%
19,799 Aetna...................... 1,583,920
13,900 Ahmanson (H.F.) & Co....... 451,750
58,500 Allstate................... 3,385,687
62,300 American Express........... 3,519,950
26,700 American General........... 1,091,362
61,800 American International Group 6,689,850
14,200 Aon........................ 882,175
56,200 Banc One................... 2,416,600
51,600 Bank of New York........... 1,741,500
47,300 BankAmerica................ 4,718,175
20,100 Bank of Boston............. 1,291,425
10,800 Bankers Trust New York..... 931,500
25,600 Barnett Banks.............. 1,052,800
7,100 Beneficial................. 449,962
20,300 Boatmens Bancshares........ 1,309,350
9,900 CIGNA...................... 1,352,587
57,800 Chase Manhattan............ 5,158,650
22,900 Chubb...................... 1,230,875
62,000 Citicorp................... 6,386,000
14,100 Comerica................... 738,487
29,300 CoreStates Financial....... 1,519,937
21,101 Dean Witter, Discover & Co. 1,397,941
143,700 Federal National Mortgage
Association.............. 5,352,825
23,600 Federal Home Loan Mortgage. 2,598,950
13,900 Fifth Third Bancorp........ 873,093
17,700 First Bank Systems......... 1,208,025
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1996
Shares COMMON STOCKS (continued) Value
---------- ------------
Interest Sensitive (continued)
41,900 First Chicago NBD.......... $ 2,252,125
37,400 First Union................ 2,767,600
34,500 Fleet Financial Group...... 1,720,687
10,900 General Re................. 1,719,475
7,600 Golden West Financial...... 479,750
18,200 Great Western Financial.... 527,800
18,100 Green Tree Financial....... 699,112
12,700 Household International.... 1,171,575
15,500 ITT Hartford............... 1,046,250
9,400 Jefferson Pilot............ 532,275
5,100 Kaufman & Broad Home....... 65,662
29,700 Keycorp.................... 1,499,850
13,700 Lincoln National........... 719,250
15,200 Loews...................... 1,432,600
5,700 MBIA....................... 577,125
29,300 MBNA....................... 1,215,950
7,800 MGIC Investment............ 592,800
17,100 Mellon Bank................ 1,214,100
21,700 Merrill Lynch & Co......... 1,768,550
24,600 Morgan (J.P.) & Co......... 2,401,575
20,000 Morgan Stanley Group....... 1,142,500
29,200 National City.............. 1,310,350
37,900 NationsBank................ 3,704,725
48,700 Norwest.................... 2,118,450
44,900 PNC Bank................... 1,689,362
12,300 Providian.................. 631,912
3,100 Pulte...................... 95,325
7,300 Republic New York.......... 595,862
16,600 Safeco..................... 654,662
14,300 Salomon.................... 673,887
10,900 St. Paul Cos............... 639,012
29,400 SunTrust Banks............. 1,447,950
9,300 Torchmark.................. 469,650
8,700 Transamerica............... 687,300
84,266 Travelers Group............ 3,823,600
9,700 UNUM....................... 700,825
15,200 USF&G...................... 317,300
4,500 USLife..................... 149,625
19,900 U.S. Bancorp............... 894,256
21,700 Wachovia................... 1,226,050
12,100 Wells Fargo................ 3,263,975
-------------
109,974,065
-------------
Mining and Metals--1.3%
14,000 (a)ARMCO...................... 57,750
5,600 ASARCO..................... 139,300
29,800 Alcan Aluminium............ 1,002,025
22,800 Aluminum Co. of America.... 1,453,500
47,100 Barrick Gold............... 1,354,125
29,600 Battle Mountain Gold....... 203,500
14,700 (a)Bethlehem Steel............ 132,300
Mining and Metals (continued)
12,200 Cyprus Amax Minerals....... $ 285,175
18,300 Echo Bay Mines............. 121,237
18,900 Engelhard.................. 361,462
25,500 Freeport-McMoRan
Copper, Cl. B.......... 761,812
19,300 Homestake Mining........... 275,025
22,200 Inco....................... 707,625
6,400 Inland Steel Industries.... 128,000
13,101 Newmont Mining............. 586,269
11,500 Nucor...................... 586,500
8,600 Phelps Dodge............... 580,500
31,500 Placer Dome................ 685,125
8,400 Reynolds Metals............ 473,550
17,301 Santa Fe Pacific Gold...... 266,002
11,100 USX-U.S. Steel............. 348,262
11,900 Worthington Industries..... 215,687
-------------
10,724,731
-------------
Transportation--1.3%
11,900 (a)AMR........................ 1,048,687
20,100 Burlington Northern Santa Fe 1,736,137
28,500 CSX........................ 1,204,125
5,100 Caliber System............. 98,175
10,600 Conrail.................... 1,056,025
9,900 Delta Air Lines............ 701,662
15,000 Federal Express............ 667,500
16,500 Norfolk Southern........... 1,443,750
19,100 Southwest Airlines......... 422,587
8,500 (a)USAir Group................ 198,687
32,300 Union Pacific.............. 1,942,037
-------------
10,519,372
-------------
Utilities--8.8%
25,000 ALLTEL..................... 784,375
213,300 AT&T....................... 9,278,550
66,000 (a)Airtouch Communications.... 1,666,500
24,700 American Electric Power.... 1,015,787
72,300 Ameritech.................. 4,383,187
19,400 Baltimore Gas & Electric... 518,950
57,600 Bell Atlantic.............. 3,729,600
130,800 BellSouth.................. 5,281,050
20,700 CINergy.................... 690,862
19,900 Carolina Power & Light..... 726,350
27,700 Central & Southwest........ 709,812
31,000 Consolidated Edison........ 906,750
19,100 DTE Energy................. 618,362
23,700 Dominion Resources......... 912,450
26,500 Duke Power................. 1,225,625
57,000 Edison International....... 1,132,875
30,400 Entergy.................... 843,600
24,100 FPL Group.................. 1,108,600
22,000 Frontier................... 497,750
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1996
Shares COMMON STOCKS (continued) Value
---------- ------------
Utilities (continued)
15,900 GPU........................ $ 534,637
126,600 GTE........................ 5,760,300
30,900 Houston Industries......... 699,112
90,200 MCI Communications......... 2,948,412
57,900 NYNEX...................... 2,786,437
19,000 Niagara Mohawk Power....... 187,625
9,100 Northern States Power...... 417,462
20,100 Ohio Edison................ 457,275
29,300 PECO Energy................ 739,825
21,400 PP&L Resources............. 492,200
54,300 Pacific Gas & Electric..... 1,140,300
56,400 Pacific Telesis Group...... 2,072,700
38,800 PacifiCorp................. 795,400
31,400 Public Service Enterprise Group 855,650
79,400 SBC Communications......... 4,108,950
88,700 Southern................... 2,006,837
56,600 Sprint..................... 2,256,925
29,600 Texas Utilities............ 1,206,200
28,400 UniCom..................... 770,350
13,400 Union Electric............. 515,900
62,800 US West.................... 2,025,300
114,400 (a)WorldCom................... 2,981,550
-------------
71,790,382
-------------
TOTAL COMMON STOCKS
(cost $631,260,923)...... $745,657,527
=============
U.S. Treasury Bills:
$ 979,000 4.9%, 1/2/1997........... $ 978,873
2,628,000 4.94%, 1/9/1997.......... 2,625,188
4,979,000 (b).........4.96%, 1/16/1997 4,968,744
3,041,000 4.99%, 1/23/1997......... 3,031,938
499,000 5.01%, 1/30/1997......... 497,054
3,443,000 4.98%, 2/27/1997......... 3,416,006
26,111,000 4.94%, 3/6/1997.......... 25,880,701
29,643,000 4.89%, 3/13/1997......... 29,352,795
-------------
TOTAL SHORT-TERM
(cost $70,755,963)..... $ 70,751,299
=============
TOTAL INVESTMENTS
(cost $702,016,886)............ 100.3% $816,408,826
======= =============
LIABILITIES LESS CASH AND
RECEIVABLES ................... (.3%)$ (2,450,053)
======= =============
NET ASSETS....................... 100.0% $813,958,773
======= =============
Notes to Statement of Investments:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by custodian in a segregated account as collateral for open
financial future positions.
Statement of Financial Futures December 31, 1996
<TABLE>
<CAPTION>
Financial Futures Purchased
- ----------------------------------------------------------------------------------------------------------------
Market Value Unrealized
Number of Covered (Depreciation)
Issuer Contracts by Contracts Expiration at 12/31/96
- ----- ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Standard & Poor's 500............................ 187 $69,610,750 March 1997 ($267,170)
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1996
<TABLE>
<CAPTION>
Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of
Investments.................................... $702,016,886 $816,408,826
Cash............................................. 3,146,261
Dividends and interest receivable................ 1,074,756
Receivable for investment securities sold........ 154,980
Prepaid expenses................................. 698
-------------
820,785,521
-------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 170,483
Payable for investment securities purchased...... 5,081,867
Payable for futures variation margin--Note 4(a)... 1,377,500
Accrued expenses................................. 196,898
-------------
6,826,748
-------------
NET ASSETS..................................................................... $813,958,773
=============
REPRESENTED BY: Paid-in capital.................................. $675,673,544
Accumulated undistributed investment income--net.. 96,693
Accumulated net realized gain (loss) on investments 24,063,766
Accumulated net unrealized appreciation (depreciation)
on investments [including ($267,170) net unrealized
(depreciation) on financial futures]--Note 4(b). 114,124,770
-------------
NET ASSETS..................................................................... $813,958,773
=============
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized)................ 40,128,613
NET ASSET VALUE, offering and redemption price per share....................... $20.28
=======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Operations Year Ended December 31, 1996
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME: Cash dividends
(net of $62,931 foreign taxes withheld at source) $ 10,395,226
Interest......................................... 2,964,524
--------------
Total Income................................ $ 13,359,750
EXPENSES: Management fee--Note 3(a)......................... 1,278,312
Registration fees................................. 125,515
Professional fees................................. 77,292
Prospectus and shareholders' reports.............. 40,817
Directors' fees and expenses--Note 3(c)........... 37,160
Shareholder servicing costs--Note 3(b)............ 6,090
Miscellaneous..................................... 6,794
--------------
Total Expenses.............................. 1,571,980
---------------
INVESTMENT INCOME--NET.......................................................... 11,787,770
---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments--Note 4(a) $23,146,990
Net realized gain (loss) on financial futures--Note 4(a) 8,737,790
--------------
Net Realized Gain.............................. 31,884,780
Net unrealized appreciation (depreciation) on investments
[including ($32,355) net unrealized (depreciation) on
financial futures]............................. 67,782,146
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 99,666,926
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $111,454,696
===============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1996 December 31, 1995
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 11,787,770 $ 4,465,773
Net realized gain (loss) on investments.............................. 31,884,780 8,075,002
Net unrealized appreciation (depreciation) on investments............ 67,782,146 43,128,888
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 111,454,696 55,669,663
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (11,705,971) (4,476,568)
Net realized gain on investments..................................... (12,675,130) (2,357,447)
-------------- --------------
Total Dividends.................................................. (24,381,101) (6,834,015)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 520,828,128 219,772,239
Dividends reinvested................................................. 24,381,101 6,834,015
Cost of shares redeemed.............................................. (131,010,511) (59,561,665)
-------------- --------------
Increase (Decrease) in Net Assets from Capital Stock Transactions 414,198,718 167,044,589
-------------- --------------
Total Increase (Decrease) in Net Assets........................ 501,272,313 215,880,237
NET ASSETS:
Beginning of Period.................................................. 312,686,460 96,806,223
-------------- --------------
End of Period........................................................ $813,958,773 $312,686,460
============== ==============
Undistributed investment income--net.................................... $ 96,693 $ 14,894
-------------- --------------
<CAPTION>
CAPITAL SHARE TRANSACTIONS:
Shares Shares
-------------- --------------
<S> <C> <C>
Shares sold.......................................................... 27,543,376 14,313,682
Shares issued for dividends reinvested............................... 1,269,483 417,105
Shares redeemed...................................................... (6,861,606) (4,033,543)
-------------- --------------
Net Increase (Decrease) in Shares Outstanding.................... 21,951,253 10,697,244
============== ==============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Four Months
Ended Year Ended
December 31, December 31, August 31,
------------------------------------------- ------------- ----------
PER SHARE DATA: 1996 1995 1994 1993 1992 1992
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $17.20 $12.94 $13.20 $15.32 $14.87 $14.20
------- ------- ------- ------- ------- -------
Investment Operations:
Investment income--net................. .39 .33 .32 .37 .13 .37
Net realized and unrealized gain (loss)
on investments..................... 3.43 4.39 (.21) 1.04 .77 .68
------- ------- ------- ------- ------- -------
Total from Investment Operations...... 3.82 4.72 .11 1.41 .90 1.05
------- ------- ------- ------- ------- -------
Distributions:
Dividends from investment income--net.. (.39) (.33) (.31) (.34) (.21) (.38)
Dividends in excess of investment income--net -- -- -- (.03) -- --
Dividends from net realized gain
on investments..................... (.35) (.13) -- (3.00) (.24) --
Dividends in excess of net realized gain
on investments..................... -- -- (.06) (.16) -- --
------- ------- ------- ------- ------- -------
Total Distributions................... (.74) (.46) (.37) (3.53) (.45) (.38)
------- ------- ------- ------- ------- -------
Net asset value, end of period........ $20.28 $17.20 $12.94 $13.20 $15.32 $14.87
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN.................. 22.54% 36.78% .88% 9.33% 6.05%(1) 7.49%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses
to average net assets.............. .30% .39% .40% .40% .13%(1) .40%
Ratio of net investment income
to average net assets.............. 2.24% 2.38% 2.57% 2.38% .85%(1) 2.63%
Decrease reflected in above expense ratios
due to undertakings by the Manager. -- .03% .16% .27% .03%(1) .13%
Portfolio Turnover Rate............... 10.92% 11.95% 2.82% 71.71% 6.94%(1) 7.66%
Average commission rate paid (2)...... $.0317 -- -- -- -- --
Net Assets, end of period (000's Omitted) $813,959 $312,686 $96,806 $61,319 $70,072 $74,446
<FN>
- ------------------
(1) Not annualized.
(2) For fiscal years beginning January 1, 1996, the Fund is required to disclose
its average commission rate paid per share for purchases and sales of
investment securities.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Stock Index Fund (the "Fund") is registered under the Investment
Company Act of 1940 ("Act") as a non-diversified open-end management investment
company, that is intended to be a funding vehicle for variable annuity contracts
and variable life insurance policies to be offered by the separate accounts of
life insurance companies. The Fund's investment objective is to provide
investment results that correspond to the price and yield performance of
publicly traded common stocks as represented by the Standard and Poor's 500
Composite Stock Price Index. The Dreyfus Corporation ("Dreyfus") serves as the
Fund's manager and Mellon Equity Associates ("Mellon Equity"), an affiliate of
Dreyfus, serves as the Fund's index manager. Boston Safe Deposit and Trust
Company, an affiliate of Dreyfus, is the Fund's custodian. Dreyfus is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. acts as the
distributor of the Fund's shares, which are sold without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (including financial
futures) are valued at the last sales price on the securities exchange on which
such securities are primarily traded or at the last sales price on the national
securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is used
when no asked price is available. 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 investment income-net 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.
(d) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the provisions available to
certain investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of taxable income sufficient to relieve
it from substantially all Federal income and excise taxes.
NOTE 2--Bank Line ofCredit:
The Fund participates with other Dreyfus managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. For the period ended December 31, 1996, the Fund did not borrow
under the line of credit.
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of .245 of 1% of the value of the
Fund's average daily net assets, and is payable monthly. Dreyfus has agreed to
pay Mellon Equity, a monthly fee at the annual rate of .095 of 1% of the value
of the Fund's average daily net assets. Dreyfus has currently undertaken from
January 1, 1996 until December 31, 1996 and thereafter until such a time as they
give shareholders at least 180 days notice to the contrary that if in any full
fiscal year the Fund's aggregate expenses (exclusive of brokerage commissions,
transaction fees and extraordinary expenses) exceed an annual rate of .40 of 1%
of the value of the Fund's average daily net assets, the Fund may deduct from
the payments to be made to Dreyfus, or Dreyfus will bear, such excess expense.
There was no expense reim bursement for the period ended December 31, 1996.
(b) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, an amount not
to exceed an annual rate of .25 of 1% of the value of the Fund's average daily
net assets for certain allocated expenses with respect to servicing and/or
maintaining shareholder accounts. During the period ended December 31, 1996, the
Fund was charged an aggregate of $9,218 pursuant to the Shareholder Services
Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $362 during the period ended December 31, 1996.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1996
amounted to $424,886,551 and $51,539,693, respectively.
The Fund may invest in financial futures contracts in order to gain exposure
to or protect against changes in the market. The Fund is exposed to market risk
as a result of changes in the value of the underlying financial instruments (see
the 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 received or made to reflect daily unrealized gains
or losses. When the contracts are closed, the Fund recognizes a realized gain or
loss. These investments require initial margin deposits with a custodian, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board of
Trade on which the contract is traded and is subject to change. Contracts open
at December 31, 1996 and their related unrealized market depreciation are set
forth in the Statement of Financial Futures.
(b) At December 31, 1996, accumulated net unrealized appreciation on
investments was $114,124,770, consisting of $121,757,907 gross unrealized
appreciation and $7,633,137 gross unrealized depreciation.
At December 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
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, including the statements of investments and financial
futures, as of December 31, 1996, 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
four years in the period then ended, for the period September 1, 1992 to
December 31, 1992, and the year ended August 31, 1992. 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, 1996, 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, 1996, 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
January 29, 1997
Important Tax Information (Unaudited)
For Federal tax purposes the Fund hereby designates $.1175 per share as a
long-term capital gain distribution of the $.2725 per share paid on December 31,
1996 and also designates $.101 per share as a long-term capital gain
distribution of the $.165 per share paid on August 30, 1996.
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Proxy Results (Unaudited)
A special meeting of stockholders of the Fund was held on July 26, 1996, at
which shareholders approved the election of the following Board members: Joseph
S. DiMartino, by a vote of 23,175,588 shares in favor of and 882,570 shares
withholding authority to vote; John M. Fraser, Jr., by a vote of 23,124,031
shares in favor of and 934,127 shares withholding authority to vote; Ehud
Houminer, by a vote of 23,157,401 shares in favor of and 900,757 shares
withholding authority to vote; David J. Mahoney, by a vote of 23,150,331 shares
in favor of and 907,827 shares withholding authority to vote; Gloria Messinger,
by a vote of 23,170,518 shares in favor of and 887,640 shares withholding
authority to vote; David P. Feldman, by a vote of 23,192,286 shares in favor of
and 865,872 shares withholding authority to vote, Jack R. Meyer, by a vote of
23,199,621 shares in favor of and 858,537 shares withholding authority to vote;
John Szarkowski, by a vote of 23,129,134 shares in favor of and 929,024 shares
withholding authority to vote; and Anne Wexler, by a vote of 23,161,016 shares
in favor of and 897,142 shares withholding authority to vote. The shareholders
also ratified the selection Coopers & Lybrand L.L.P. as independent auditors by
a vote of 22,776,119 shares in favor of, and 191,304 shares against the
selection, with 1,090,734 shares abstaining (including broker non-votes). Also
considered at the meeting was a change from fundamental policy to a
non-fundamental policy an investment restriction which prohibits the Fund from
purchasing securities of any company having less than three years continuous
operations if such purchase would cause the value of such investments in all
such companies to exceed 5% of the value of the Fund's total assets. The change
from fundamental to non-fundamental policy was proposed to afford the Fund the
investment flexibility to permit it to be competitive with other similar funds,
and was approved by shareholders by a vote of 19,870,738 shares with 1,183,650
shares voting against the change and 3,003,158 shares abstaining (including
broker non-votes).
<PAGE>
Dreyfus Stock Index Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Index Fund Manager
Mellon Equity Associates
500 Grant Street
Pittsburgh, PA 15258
Custodian
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02108
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 763AR9612
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN DREYFUS STOCK INDEX FUND
AND THE STANDARD & POOR'S 500 COMPOSITE
STOCK PRICE INDEX
EXHIBIT A:
STANDARD
& POOR'S 500
COMPOSITE DREYFUS
PERIOD STOCK STOCK
PRICE INDEX* INDEX FUND
9/29/89 10,000 10,000
12/31/89 10,205 10,216
12/31/90 9,888 9,860
12/31/91 12,893 12,803
12/31/92 13,875 13,713
12/31/93 15,270 14,993
12/31/94 15,471 15,125
12/31/95 21,278 20,688
12/31/96 26,161 25,350
*Source: Lipper Analytical Services, Inc.
