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Previous: GABELLI CONVERTIBLE SECURITIES FUND INC /DE, N-30D, 1998-09-03 |
Next: WM TRUST II, N-30D, 1998-09-03 |
DREYFUS STOCK INDEX FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this semi-annual report for the Dreyfus
Stock Index Fund for the six-month period ended June 30, 1998. Over this period,
your Fund produced a total return of 17.51%.* This compares with a total return
of 17.72%** for the Standard & Poor's 500 Composite Stock Price Index, which the
Fund is designed to mirror. The difference is accounted for by transaction costs
and other Fund expenses.
ECONOMIC REVIEW
Fears of Federal Reserve Board tightening appear to have eased due to
accumulating evidence of slower overall economic growth since the spring.
Monetary tightening has been deterred by the Asian financial crisis. The Fed's
main domestic concern is that the tight labor market has begun to fuel faster
wage growth across many industries. However, rising wages have still not meant
rising prices. Instead, this cost-price mix threatens to further erode corporate
profit margins. Market interest rates have already reflected the slower economy,
and the interest rate curve has become quite flat.
The shift to slower economic growth this spring is largely due to the drag
from Asia's recession, but may well be reinforced this summer by the multiplier
impacts of the General Motors strike. Among broader economic factors, the trade
deficit has widened sharply due to both weak exports and strong growth in
imports. Also, inventories soared earlier this year, potentially creating some
drag on future production. However, slowing industrial output has largely been
met by shortening the manufacturing work week, not by cutting jobs. Hence, the
shift to slower growth has not relieved the tightness in the labor market.
Instead, the virtual absence of bad news has left consumers to enjoy the
benefits of rising real wages and lower interest rates that, in turn, have
boosted spending and home ownership.
Although growth in corporate profits has slowed in many sectors in the past
year, consensus estimates of future profit growth continue to be cut by many
analysts. Profit margins had already begun to shrink under the weight of rising
labor costs, making companies' reported profits increasingly dependent on growth
of sales. Overall profits could thus prove quite vulnerable to a period of
significantly slower economic growth.
Virtually all Treasury market interest rates have already fallen near to the
floor set by the Federal Funds rate. This implies that further substantial
interest rate drops are unlikely unless the economy weakens enough to justify
action by the Fed to ease credit.
MARKET OVERVIEW
Measured broadly, the half-year ended June 30, 1998 was another period of
solid advance for the stock market. Yet that general statement did not apply to
all categories of stocks.
To be sure, the S& P 500 achieved a new record of 17.72% at the end of the
six-month period. The Dow Jones Industrial Average (DJIA), while it didn't reach
its all-time record, nonetheless gained 14.16% for the six months, closing the
half-year above 9000. Small and medium size stocks, however, underperformed the
large cap issues. The Standard & Poor's MidCap 400 Index gained just 8.63% for
the half-year, and the Russell 2000 index of small cap issues advanced a mere
4.93%.
The first calendar quarter provided most of the strength for the six months,
particularly among the large cap companies. In the April-June quarter, the S&P
500 gained 3.32% and the DJIA 2.15%, while the Russell 2000 actually dropped by
4.66%.
Stock categories that were strongest during the half-year included financials,
particularly banks, brokerages, insurance and diversified financial services;
technology, especially communications and computer issues; and cyclical consumer
stocks such as advertising, airlines, automotive, broadcasting and home
construction.
The weak categories for the period included precious metals, oil drilling and
oilfield suppliers, and some industrial issues.
Corporate profits dropped sharply from the strong pace of last year. According
to the statistical service First Call, profits for stocks in the S&P 500 were
expected to show a rise of just 2.3% for the second quarter, compared to 3.8% in
the first quarter. Of course there were optimists forecasting a hefty rise in
profits for later this year and early 1999, which could potentially propel stock
prices upward. Yet most investors seemed preoccupied with the here and now,
which included the strike at General Motors plants and the continuing fallout
from financial troubles in Japan and Southeast Asia.
As expected, the Fed at its last meeting made no change in interest rates,
even though inflationary pressures are a constant worry for the Fed. The reason
for their inaction may well have been the precarious state of some economies
elsewhere in the world and the desire not to precipitate a major correction in
the US stock market. Even so, the Fed thought it timely to issue a stern warning
to banks not to become over-extended with unwise loans, which happened in the
1980s.
Despite warnings like this, and that stock prices are extremely high
historically in relation to earnings and cash flow, investors still appeared
eager to own equities. Moreover, surveys of consumer sentiment continued to show
that the average consumer was more confident about the future than had been the
case in a generation.
We thank you for your interest in this Dreyfus-managed Fund and look forward
to continuing to serve your investment needs.
Sincerely,
[Steven Falci, signature logo]
Portfolio Manager
July 17, 1998
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
The Portfolio's performance does not reflect the deduction of additional charges
and expenses imposed in connection with investing in variable insurance
contracts, which will reduce returns.
** 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.
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
- ------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
Shares COMMON STOCKS--96.0% Value
____________ _______________
<S> <C> <C>
Basic Industries--3.7%
68,300 Air Products & Chemicals $ 2,732,000
11,80 Armstrong World Industries 795,025
29,800 Avery Dennison 1,601,750
8,800 Ball 353,650
15,400 Bemis 629,475
16,300 Boise Cascade 533,825
17,200 Centex 649,300
27,900 Champion International 1,372,331
67,100 Corning 2,331,725
37,300 Crown Cork & Seal 1,771,750
65,800 Dow Chemical 6,362,038
328,500 duPont (E.I.)
de Nemours & Co. 24,514,313
22,800 Eastman Chemical 1,419,300
41,900 Engelhard 848,475
10,100 (a) FMC 688,694
24,300 Fluor 1,239,300
60,600 Fort James 2,696,700
49,800 Fortune Brands 1,914,188
26,900 Georgia Pacific 1,585,419
21,600 Grace (W.R.) & Co. 368,550
17,400 Great Lakes Chemical 686,213
28,000 Hercules 1,151,500
87,800 International Paper 3,775,400
11,300 Kaufman & Broad Home 358,775
31,800 Louisiana Pacific 580,350
48,000 Masco 2,904,000
30,400 Mead 965,200
172,144 Monsanto 9,618,546
37,800 Morton International 945,000
19,300 Nalco Chemical 677,913
44,800 (a) Owens-Illinois 2,004,800
51,700 PPG Industries 3,596,381
8,400 Potlach 352,800
45,800 Praxair 2,144,013
17,800 Rohm & Haas 1,850,088
23,912 Sealed Air 878,766
50,200 Sherwin-Williams 1,662,875
29,100 Sigma-Aldrich 1,022,138
28,800 (a) Stone Container 450,000
16,400 Temple-Inland 883,550
49,400 Tenneco 1,880,288
20,200 Union Camp 1,002,425
35,800 Union Carbide 1,910,825
29,600 Westvaco 836,200
57,900 Weyerhaeuser 2,674,256
32,300 Willamette Industries 1,033,600
_______________
100,253,710
_______________
Capital Goods--22.7%
63,900 AMP $ 2,196,563
19,900 Adobe Systems 844,506
41,200 (a) Advanced Micro Devices 702,975
8,200 Aeroquip-Vickers 478,675
56,832 Allegheny Teledyne 1,300,032
163,800 AlliedSignal 7,268,625
25,650 (a) Andrew 463,303
38,500 (a) Apple Computer 1,104,469
106,300 (a) Applied Materials 3,135,850
56,000 Ascend Communications 2,775,500
13,500 Autodesk 521,438
86,800 Automatic Data Processing 6,325,550
63,800 (a) Bay Networks 2,057,550
290,124 Boeing 12,928,651
7,200 Briggs & Stratton 269,550
53,500 Browning-Ferris Industries 1,859,125
45,900 (a) Cabletron Systems 616,781
21,800 Case 1,051,850
108,100 Caterpillar 5,715,788
235,248 (a) Cendant 4,910,802
21,000 (a) Ceridian 1,233,750
11,600 Cincinnati Milacron 282,025
295,450 (a) Cisco Systems 27,199,866
47,100 Cognizant 2,967,300
479,772 Compaq Computer 13,613,531
158,525 Computer Associates
International 8,808,045
45,300 Computer Sciences 2,899,200
35,100 Cooper Industries 1,928,306
13,350 Crane 648,309
11,100 Cummins Engine 568,875
34,200 (a) DSC Communications 1,026,000
14,100 (a) Data General 210,619
72,500 Deere & Co. 3,833,438
189,500 Dell Computer 17,587,969
23,600 Deluxe 845,175
64,600 Dover 2,212,550
28,000 Dow Jones & Co 1,561,000
49,400 Dun & Bradstreet 1,784,575
13,200 EG&G 396,000
144,000 (a) EMC 6,453,000
21,200 Eaton 1,648,300
128,700 Emerson Electric 7,770,263
43,600 Equifax 1,583,225
124,300 First Data 4,140,744
11,800 Foster Wheeler 252,963
45,000 (a) Gateway 2000 2,278,125
DREYFUS STOCK INDEX FUND
- ------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Shares COMMON STOCKS (continued) Value
____________ _______________
Capital Goods (continued)
51,300 General Dynamics $ 2,385,450
950,000 General Electric 86,450,000
13,700 General Signal 493,200
51,850 Genuine Parts 1,792,066
20,900 Goodrich (B.F.) 1,037,163
28,800 Grainger (W.W.) 1,434,600
122,400 HBO & Co. 4,314,600
13,900 Harnischfeger Industries 393,544
23,200 Harris 1,036,750
301,900 Hewlett-Packard 18,076,263
37,000 Honeywell 3,091,813
34,400 ITT Industries 1,285,700
39,100 Ikon Office Solutions 569,394
72,400 Illinois Tool Works 4,828,175
48,050 Ingersoll-Rand 2,117,203
474,900 Intel 35,201,963
282,200 International Business
Machines 32,400,088
36,600 Interpublic Group Cos 2,221,163
24,400 Johnson Controls 1,395,375
24,400 (a) KLA-Tencor 675,575
41,100 (a) LSI Logic 947,869
56,400 Lockheed Martin 5,971,350
377,696 Lucent Technologies 31,419,586
17,500 McDermott International 602,656
61,400 (a) Micron Technology 1,523,488
706,800 (a) Microsoft 76,599,386
12,700 Millipore 346,075
118,600 Minnesota Mining
& Manufacturing 9,747,438
173,300 Motorola 9,109,081
47,700 (a) National Semiconductor 629,044
12,500 National Service Industries 635,938
151,100 Northern
Telecommunications 8,574,925
19,400 Northrop Grumman 2,000,625
101,900 (a) Novell 1,299,225
47,000 Omnicom Group 2,344,125
285,650 (a) Oracle 7,016,278
15,500 Owens-Corning 632,594
36,201 Pall 742,121
74,500 (a) Parametric Technology 2,020,813
32,150 Parker-Hannifin 1,225,719
14,100 Perkin-Elmer 876,844
79,400 Pitney Bowes 3,821,125
24,600 Raychem 727,238
98,300 Raytheon, Cl. B 5,811,988
Capital Goods (continued)
58,300 Rockwell International $ 2,802,044
22,200 Ryder System 700,688
22,900 Scientific-Atlanta 581,088
70,300 (a) Seagate Technology 1,674,019
73,100 Service Corp. International 3,134,163
7,600 Shared Medical Systems 558,125
54,500 (a) Silicon Graphics 660,813
17,650 Snap-On 639,813
25,900 Stanley Works 1,076,469
109,600 (a) Sun Microsystems 4,760,750
102,900 (a) 3COM 3,157,744
14,700 Tektronix 520,013
52,700 (a) Tellabs 3,774,638
113,300 Texas Instruments 6,606,806
47,700 Textron 3,419,494
46,200 (a) Thermo Electron 1,579,463
16,000 Thomas & Betts 788,000
18,300 Timken 563,869
166,100 Tyco International 10,464,300
72,400 (a) Unisys 2,045,300
67,600 United Technologies 6,253,000
132,100 Waste Management 4,623,500
94,600 Xerox 9,613,725
________________
616,084,176
________________
Consumer Cyclical--12.5%
71,300 Albertson's 3,694,231
21,100 American Greetings, Cl. A 1,074,781
79,300 American Stores 1,918,069
44,200 (a) AutoZone 1,411,638
27,600 Black & Decker 1,683,600
28,900 Brunswick 715,275
206,500 CBS 6,556,375
110,900 CVS 4,318,169
188,200 Chrysler 10,609,775
28,700 Circuit City Stores 1,345,313
35,800 (a) Clear Channel
Communications 3,906,675
101,300 Comcast, Cl. A 4,112,147
31,300 (a) Consolidated Stores 1,134,625
22,900 Cooper Tire and Rubber 472,313
62,200 (a) Costco Cos. 3,922,488
30,500 Dana 1,631,750
126,900 Dayton Hudson 6,154,650
43,100 Darden Restaurants 684,213
32,200 Dillard's, Cl. A 1,334,288
196,000 Disney (Walt) 20,592,250
42,300 Donnelley (R.R.) & Sons 1,935,225
DREYFUS STOCK INDEX FUND
- ------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Shares COMMON STOCKS (continued) Value
____________ _______________
Consumer Cyclical (continued)
18,300 Echlin $ 897,844
60,900 (a) Federated Department
Stores 3,277,181
10,600 Fleetwood Enterprises 424,000
348,300 Ford Motor 20,549,700
21,300 (a) Fruit of the Loom, Cl. A 706,894
82,300 Gannett 5,848,444
114,900 Gap 7,080,713
42,900 (a) General Instrument 1,166,344
205,300 General Motors 13,716,606
17,400 Giant Food, Cl. A 749,288
45,400 Goodyear Tire & Rubber 2,925,463
11,100 Great Atlantic & Pacific 366,994
20,500 Harcourt General 1,219,750
29,300 (a) Harrah's Entertainment 681,225
38,650 Hasbro 1,519,428
72,700 Hilton Hotel 2,071,950
212,350 Home Depot 17,638,322
11,300 Jostens 272,613
141,600 (a) K mart 2,725,800
21,400 (a) King World Productions 545,700
23,000 Knight-Ridder 1,266,438
74,000 (a) Kroger 3,172,750
65,400 Limited 2,166,375
19,400 Liz Claiborne 1,013,650
11,200 Longs Drug Stores 323,400
101,600 Lowes 4,121,150
74,100 Marriott International, Cl. A 2,398,988
84,400 Mattel 3,571,175
67,100 May Department Stores 4,395,050
27,600 Maytag 1,362,750
199,900 McDonald's 13,793,100
28,700 McGraw-Hill Cos. 2,340,844
176,200 Mediaone Group 7,741,788
10,700 Mercantile Stores 844,631
15,300 Meredith 718,144
52,100 (a) Mirage Resorts 1,110,381
25,800 Moore 341,850
21,000 (a) Navistar International 606,375
27,900 New York Times, Cl. A 2,211,075
84,400 NIKE, Cl. B 4,109,225
22,400 Nordstrom 1,730,400
22,600 PACCAR 1,180,850
72,600 Penney (J.C.) 5,249,888
18,400 Pep Boys-Manny,
Moe & Jack 348,450
16,300 (a) Reebok International 451,306
Consumer Cyclical (continued)
74,800 Rite Aid $ 2,809,675
10,600 Russell 319,988
103,500 Seagram 4,237,031
113,800 Sears, Roebuck & Co. 6,948,913
5,900 Springs Industries 272,138
17,400 Supervalu 772,125
98,700 Sysco 2,529,188
93,800 TJX 2,262,925
35,800 TRW 1,955,575
30,000 Tandy 1,591,875
147,200 (a) Tele-Communications, Cl. A 5,658,000
167,900 Time Warner 14,344,956
25,700 Times Mirror, Cl. A 1,615,888
82,400 (a) Toys R Us 1,941,550
35,700 Tribune 2,456,606
44,060 (a) Tricon Global Restaurants 1,396,151
35,500 V.F 1,828,250
39,200 Venator Group 749,700
102,501 (a) Viacom, Cl. B 5,970,683
652,000 Wal-Mart Stores 39,609,000
143,800 Walgreen 5,940,738
38,400 Wendy's International 902,400
21,800 Whirlpool 1,498,750
43,200 Winn-Dixie Stores 2,211,300
________________
339,985,547
________________
Consumer Staples--10.2%
16,500 Alberto-Culver, Cl. B 478,500
142,200 Anheuser-Busch 6,710,063
165,913 Archer Daniels Midland 3,214,564
38,300 Avon Products 2,968,250
83,500 Bestfoods 4,848,219
20,000 Brown-Forman, Cl. B 1,285,000
132,500 Campbell Soup 7,039,063
30,000 Clorox 2,861,250
718,000 Coca-Cola 61,389,000
85,900 Colgate-Palmolive 7,559,200
138,000 ConAgra 4,372,875
10,800 Coors (Adolph), Cl. B 367,200
94,300 Eastman Kodak 6,889,794
37,500 Ecolab 1,162,500
45,900 General Mills 3,138,413
325,200 Gillette 18,434,775
106,100 Heinz (H.J.) 5,954,863
41,500 Hershey Foods 2,863,500
31,700 International Flavors
& Fragrances 1,376,969
119,300 Kellogg 4,481,206
DREYFUS STOCK INDEX FUND
- ------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Shares COMMON STOCKS (continued) Value
____________ _______________
Consumer Staples (continued)
161,300 Kimberly-Clark $ 7,399,638
2,333 NACCO Industries, Cl. A 301,540
46,200 Newell 2,301,338
440,400 PepsiCo 18,138,975
703,800 Philip Morris 27,712,125
70,900 Pioneer Hi-Bred International 2,933,488
13,000 Polaroid 462,313
389,700 Procter & Gamble 35,487,056
40,200 Quaker Oats 2,208,488
31,100 Ralston Purina Group 3,632,869
43,500 Rubbermaid 1,443,656
137,400 Sara Lee 7,685,813
17,700 Tupperware 497,813
53,500 UST 1,444,500
185,800 Unilever 14,666,588
33,700 Wrigley, (Wm) Jr 3,302,600
________________
277,014,004
________________
Energy--7.7%
26,600 Amerada Hess 1,444,713
282,700 Amoco 11,767,388
17,400 Anadarko Petroleum 1,169,063
27,700 Apache 872,550
21,900 Ashland 1,130,588
93,100 Atlantic Richfield 7,273,438
49,200 Baker Hughes 1,700,475
51,290 Burlington Resources 2,208,676
190,600 Chevron 15,831,713
30,800 Coastal 2,150,225
24,150 Columbia Energy Group 1,343,344
27,700 Consolidated Natural Gas 1,630,838
51,000 Dresser Industries 2,247,188
5,900 Eastern Enterprises 252,963
95,400 Enron 5,157,563
715,800 Exxon 51,045,488
76,000 Halliburton 3,386,750
14,640 Helmerich & Payne 325,740
13,800 Kerr-McGee 798,675
227,700 Mobil 17,447,513
14,000 Nicor 561,750
9,000 ONEOK 358,875
98,300 Occidental Petroleum 2,654,100
30,700 (a) Oryx Energy 679,238
13,800 Pennzoil 698,625
10,200 Peoples Energy 393,975
76,400 Phillips Petroleum 3,681,525
25,100 (a) Rowan Cos. 487,881
Energy (continued)
622,500 Royal Dutch Petroleum, A.D.R. $ 34,120,781
144,500 Schlumberger 9,871,156
67,391 Sempra Energy 1,870,100
33,300 Sonat 1,286,213
27,400 Sun 1,063,463
159,100 Texaco 9,496,281
73,644 Union Pacific Resources
Group 1,293,373
71,600 Unocal 2,559,700
83,700 USX-Marathon Group 2,871,956
15,800 (a) Western Atlas 1,341,025
119,300 Williams Cos. 4,026,375
________________
208,501,283
________________
Health Care--11.3%
24,800 (a) ALZA 1,072,600
444,100 Abbott Laboratories 18,152,588
18,900 Allergan 876,488
377,200 American Home Products 19,520,100
76,400 (a) Amgen 4,994,650
16,500 Bard (C.R.) 628,031
16,000 Bausch & Lomb 802,000
81,300 Baxter International 4,374,956
35,500 Becton, Dickinson & Co. 2,755,688
32,400 Biomet 1,071,225
56,500 (a) Boston Scientific 4,046,813
288,600 Bristol-Myers Squibb 33,170,963
31,800 Cardinal Health 2,981,250
187,950 Columbia/HCA Healthcare 5,474,044
43,800 Guidant 3,123,488
114,300 (a) HEALTHSOUTH 3,050,381
47,600 (a) Humana 1,484,525
390,400 Johnson & Johnson 28,792,000
322,000 Lilly (Eli) 21,272,125
21,200 Mallinckrodt Group 629,375
18,500 Manor Care 711,094
136,100 Medtronic 8,676,375
347,800 Merck & Co. 46,518,250
375,400 Pfizer 40,801,288
147,300 Pharmacia & Upjohn 6,794,213
212,500 Schering-Plough 19,470,313
26,700 (a) St. Jude Medical 982,894
88,900 (a) Tenet Healthcare 2,778,125
22,000 U.S. Surgical 1,003,750
54,700 United Healthcare 3,473,450
237,100 Warner-Lambert 16,448,813
________________
305,931,855
________________
DREYFUS STOCK INDEX FUND
- ------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Shares COMMON STOCKS (continued) Value
____________ _______________
Interest Sensitive--17.4%
43,099 Aetna $ 3,280,911
31,800 Ahmanson (H.F.) & Co. 2,257,800
124,500 Allstate 11,399,531
134,900 American Express 15,378,600
73,715 American General 5,247,587
203,600 American International
Group 29,725,600
48,650 Aon 3,417,663
100,519 Associates First Capital, Cl. A 7,727,398
84,400 BANKBOSTON 4,694,750
41,400 BB&T 2,799,675
203,710 Banc One 11,369,564
109,300 Bank of New York 6,633,144
201,300 BankAmerica 17,399,869
28,400 Bankers Trust New York 3,296,175
32,600 Bear Stearns Cos. 1,854,125
15,400 Beneficial 2,359,088
64,500 CIGNA 4,450,500
18,800 Capital One Financial 2,334,725
244,700 Chase Manhattan 18,474,850
49,400 Chubb 3,970,525
47,800 Cincinnati Financial 1,834,325
132,600 Citicorp 19,790,550
45,700 Comerica 3,027,625
54,700 Conseco 2,557,225
31,500 Countrywide Credit
Industries 1,598,625
308,000 Federal National
Mortgage Association 18,711,000
76,125 Fifth Third Bancorp 4,795,875
84,500 First Chicago NBD 7,488,813
280,790 First Union 16,356,018
79,100 Fleet Financial Group 6,604,850
73,400 (a) Franklin Resources 3,963,600
201,800 Federal Home Loan
Mortgage 9,497,213
22,800 General Re 5,779,800
16,500 Golden West Financial 1,754,156
39,500 Green Tree Financial 1,691,094
30,500 H&R Block 1,284,813
34,300 Hartford Financial
Services Group 3,923,063
93,200 Household International 4,636,700
55,500 Huntington Bancshares 1,859,250
30,850 Jefferson Pilot 1,787,372
127,500 Keycorp 4,542,188
29,600 Lehman Brothers Holdings 2,295,850
Interest Sensitive (continued)
29,700 Lincoln National $ 2,713,838
33,400 Loews 2,909,975
28,400 MBIA 2,126,450
145,525 MBNA 4,802,325
33,100 MGIC Investment 1,888,769
73,950 Marsh & McLennan 4,469,353
73,900 Mellon Bank 5,145,288
38,100 Mercantile Bancorp 1,919,288
96,700 Merrill Lynch & Co. 8,920,575
51,600 Morgan (J.P.) 6,043,650
171,967 Morgan Stanley, Dean Witter,
Discover and Co. 15,713,485
95,400 National City 6,773,400
272,971 NationsBank 20,882,282
32,400 Northern Trust 2,470,500
219,300 Norwest 8,196,338
88,500 PNC Bank 4,762,406
21,000 Progressive 2,961,000
27,600 Providian Financial 2,168,325
12,300 Pulte 367,463
31,700 Republic New York 1,995,119
48,800 SLM Holding 2,391,200
41,000 Safeco 1,862,938
77,050 Schwab (Charles) 2,504,125
66,990 St. Paul Companies 2,817,767
46,700 State Street 3,245,650
51,100 Summit Bancorp 2,427,250
56,700 SunAmerica 3,256,706
61,200 SunTrust Banks 4,976,325
76,200 Synovus Financial 1,809,750
40,600 Torchmark 1,857,450
18,200 Transamerica 2,095,275
332,924 Travelers Group 20,183,518
213,815 U.S. Bancorp 9,194,045
40,300 UNUM 2,236,650
59,800 Wachovia 5,053,100
112,065 Washington Mutual 4,867,823
25,200 Wells Fargo 9,298,800
________________
471,160,286
________________
Mining And Metals--.6%
11,700 ASARCO 260,325
66,000 Alcan Aluminium 1,823,250
50,100 Aluminum Co. of America 3,303,469
31,300 (a) Armco 199,538
108,200 Barrick Gold 2,076,088
66,700 Battle Mountain Gold 396,031
37,100 (a) Bethlehem Steel 461,431
DREYFUS STOCK INDEX FUND
- ------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Shares COMMON STOCKS (continued) Value
____________ _______________
Mining And Metals (continued)
27,100 Cyprus Amax Minerals $ 359,075
56,100 Freeport-McMoRan
Copper, Cl. B 852,019
61,300 Homestake Mining 635,988
48,500 Inco 660,813
45,419 Newmont Mining 1,073,024
25,500 Nucor 1,173,000
17,100 Phelps Dodge 977,906
71,700 Placer Dome 842,475
21,500 Reynolds Metals 1,202,656
25,000 USX-U.S. Steel 825,000
28,100 Worthington Industries 423,256
________________
17,545,344
________________
Transportation--1.1%
52,900 (a) AMR 4,403,925
45,300 Burlington Northern
Santa Fe 4,447,894
63,300 CSX 2,880,150
21,700 Delta Air Lines 2,804,725
42,620 (a) FDX 2,674,405
95,400 Laidlaw 1,162,688
109,500 Norfolk Southern 3,264,469
64,100 Southwest Airlines 1,898,963
71,800 Union Pacific 3,168,175
26,500 (a) USAir Group 2,100,125
________________
28,805,519
________________
Utilities--8.8%
471,500 AT&T 26,934,438
79,200 ALLTEL 3,682,800
163,800 (a) Airtouch Communications 9,572,063
39,800 Ameren 1,582,050
55,000 American Electric Power 2,495,625
317,700 Ameritech 14,256,788
42,900 Baltimore Gas & Electric 1,332,581
450,960 Bell Atlantic 20,575,050
287,900 BellSouth 19,325,288
45,800 CINergy 1,603,000
43,600 Carolina Power & Light 1,891,150
61,600 Central & Southwest 1,655,500
68,200 Consolidated Edison 3,141,463
42,100 DTE Energy 1,699,788
56,200 Dominion Resources 2,290,150
104,509 Duke Power 6,192,158
110,700 Edison International 3,272,569
70,800 Entergy 2,035,500
52,800 FPL Group 3,326,400
Utilities (continued)
66,900 FirstEnergy $ 2,057,175
47,700 Frontier 1,502,550
36,800 GPU 1,391,500
278,000 GTE 15,463,750
82,039 Houston Industries 2,532,954
202,200 MCI Communications 11,752,875
76,300 (a) NEXTEL Communications,
Cl. A 1,897,963
54,200 (a) Niagara Mohawk Power 809,613
43,200 Northern States Power 1,236,600
110,600 PG&E 3,490,813
48,200 PP&L Resources 1,093,538
64,600 PECO Energy 1,885,513
86,100 PacifiCorp 1,948,013
67,300 Public Service Enterprise
Group 2,317,644
532,178 SBC Communications 21,287,120
200,300 Southern 5,545,806
124,800 Sprint 8,798,400
81,330 Texas Utilities 3,385,361
144,766 US West 6,804,002
62,800 UniCom 2,201,925
294,100 (a) WorldCom 14,245,469
________________
238,512,945
________________
TOTAL COMMON STOCKS
(cost $1,856,693,335) $2,603,794,669
================
</TABLE>
<TABLE>
<CAPTION>
Principal SHORT-TERM
Amount INVESTMENTS--4.1%
____________
U.S. Treasury Bills:
<S> <C> <C>
$20,025,000 (b) 4.89%, 7/30/1998 $ 19,949,706
64,107,000 (b) 4.88%, 9/17/1998 63,428,748
6,965,000 4.95%, 10/1/1998 6,876,475
18,622,000 4.97%, 10/8/1998 18,367,437
_______________
TOTAL SHORT-TERM
INVESTMENTS
(cost $108,618,848) $ 108,622,366
================
TOTAL INVESTMENTS
(cost $1,965,312,183) 100.1% $2,712,417,035
====== ==============
LIABILITIES, LESS CASH
AND RECEIVABLES . (.1%) $ (2,317,913)
====== ==============
NET ASSETS 100.0% $2,710,099,122
====== ==============
</TABLE>
DREYFUS STOCK INDEX FUND
- -----------------------------------------------------------------------------
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open financial futures positions.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES JUNE 30, 1998 (UNAUDITED)
Market Value Unrealized
Covered Apreciation
Financial Futures Purchased Contracts by Contracts Expiration at 6/30/98
_________________________ ___________ ______________ ______________ ____________
<S> <C> <C> <C> <C>
Standard & Poor's 500 384 $109,728,000 September '98 $1,482,378
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1998 (UNAUDITED)
Cost Value
______________ ______________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,965,312,183 $2,712,417,035
Cash 5,717,878
Dividends receivable 2,527,794
Receivable for investment securities sold 400,107
Prepaid expenses 12,595
_______________
2,721,075,409
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 522,910
Payable for investment securities purchased 9,476,868
Payable for futures variation margin--Note 4(a) 754,714
Accrued expenses 221,795
_______________
10,976,287
_______________
NET ASSETS $2,710,099,122
===============
REPRESENTED BY: Paid-in capital $1,951,240,610
Accumulated distributions in excess of
investment income--net (105,997)
Accumulated net realized gain (loss) on investments 10,377,279
Accumulated net unrealized appreciation (depreciation)
on investments (including $1,482,378 net unrealized
appreciation on financial futures)--Note 4(b) 748,587,230
_______________
NET ASSETS $2,710,099,122
===============
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized) 90,263,243
NET ASSET VALUE, offering and redemption price per share $30.02
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME: Cash dividends (net of $114,297 foreign taxes
withheld at source) $ 16,481,168
Interest 2,463,823
_____________
Total Income $ 18,944,991
EXPENSES: Management fee--Note 3(a) 2,808,575
Registration fees 147,973
Professional fees 32,291
Prospectus and shareholders' reports 31,901
Directors' fees and expenses--Note 3(c) 20,589
Loan commitment fees--Note 2 7,949
Miscellaneous 11,129
_____________
Total Expenses 3,060,407
_____________
INVESTMENT INCOME--NET 15,884,584
_____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments $ 2,557,340
Net realized gain (loss) on financial futures 8,883,341
_____________
Net Realized Gain (Loss) 11,440,681
Net unrealized appreciation (depreciation) on investments
(including $1,503,828 net unrealized appreciation
on financial futures) 332,852,143
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 344,292,824
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $360,177,408
=============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS STOCK INDEX FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
_________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net $ 15,884,584 $ 22,750,609
Net realized gain (loss) on investments 11,440,681 31,107,216
Net unrealized appreciation (depreciation) on investments 332,852,143 301,610,317
_______________ _______________
Net Increase (Decrease) in Net Assets Resulting from Operations 360,177,408 355,468,142
_______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (16,353,850) (22,484,033)
Net realized gain on investments (4,024,845) (52,209,539)
_______________ _______________
Total Dividends (20,378,695) (74,693,572)
_______________ _______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold 723,465,744 968,080,279
Dividends reinvested 20,378,697 74,693,572
Cost of shares redeemed (242,216,513) (268,834,713)
______________ _______________
Increase (Decrease) in Net Assets from Capital Stock Transactions 501,627,928 773,939,138
______________ _______________
Total Increase (Decrease) in Net Assets 841,426,641 1,054,713,708
NET ASSETS:
Beginning of Period 1,868,672,481 813,958,773
______________ _______________
End of Period $2,710,099,122 $1,868,672,481
============== ===============
Undistributed investment income (Distributions in excess of investment income)--net $ (105,997) $ 363,269
______________ _______________
Shares Shares
______________ _______________
CAPITAL SHARE TRANSACTIONS:
Shares sold 25,534,315 40,703,214
Shares issued for dividends reinvested 685,490 2,981,897
Shares redeemed (8,530,817) (11,239,469)
______________ _______________
Net Increase (Decrease) in Shares Outstanding 17,688,988 32,445,642
============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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>
Six Months Ended
June 30, 1998 Year Ended December 31,
______________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $25.75 $20.28 $17.20 $12.94 $13.20 $15.32
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net .18 .37 .39 .33 .32 .37
Net realized and unrealized gain (loss)
on investments 4.32 6.26 3.43 4.39 (.21) 1.04
______ ______ ______ ______ ______ ______
Total from Investment Operations 4.50 6.63 3.82 4.72 .11 1.41
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net (.19) (.37) (.39) (.33) (.31) (.34)
Dividends in excess of investment income--net -- -- -- -- -- (.03)
Dividends from net realized gain on investments (.04) (.79) (.35) (.13) -- (3.00)
Dividends in excess of net realized gain
on investments -- -- -- -- (.06) (.16)
______ ______ ______ ______ ______ ______
Total Distributions (.23) (1.16) (.74) (.46) (.37) (3.53)
______ ______ ______ ______ ______ ______
Net asset value, end of period $30.02 $25.75 $20.28 $17.20 $12.94 $13.20
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 17.51%* 32.96% 22.54% 36.78% .88% 9.33%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .13%* .28% .30% .39% .40% .40%
Ratio of net investment income
to average net assets .69%* 1.66% 2.24% 2.38% 2.57% 2.38%
Decrease reflected in above expense ratios
due to undertakings by the Manager -- -- -- .03% .16% .27%
Portfolio Turnover Rate .55%* 3.53% 10.92% 11.95% 2.82% 71.71%
Net Assets, end of period (000's Omitted) $2,710,099 $1,868,672 $813,959 $312,686 $96,806 $61,319
- -----------------------------
* Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS STOCK INDEX FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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. is 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. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Trustees. 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. 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 OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (" Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended June
30, 1998, the Fund did not borrow under the Facility.
DREYFUS STOCK INDEX FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 undertaken from January 1, 1998
until such a time as they give shareholders at least 180 days notice to the
contrary that if any full fiscal year the Fund's aggregate expenses (exclusive
of brokerage commissions, transaction fees, commitment 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. During the period ended June 30,
1998, there was no expense reimbursement pursuant to the Investment Advisory
Agreement.
(B) Under the 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.
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. During the period
ended June 30, 1998, the Fund was charged $213 pursuant to the transfer agency
agreement.
(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 and financial futures, during the period ended
June 30, 1998 amounted to $461,251,750 and $12,153,964, respectively.
The Fund may invest in financial futures contracts in order to gain exposure
to or protect against changes in the market. The Fund is exposed to market risk
as a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the Fund to "mark to market" on a daily
basis, which reflects the change in the market value of the contract at the
close of each day's trading. Typically, 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 June 30, 1998 are set
forth in the Statement of Financial Futures.
(B) At June 30, 1998, accumulated net unrealized appreciation on investments
and financial futures was $748,587,230, consisting of $776,017,971 gross
unrealized appreciation and $27,430,741 gross unrealized depreciation.
At June 30, 1998, 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).
[reg.tm]
[reg.tm]
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. 763SA986
Stock Index Fund
Semi-Annual
Report
June 30, 1998
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