<PAGE>
Dreyfus
Stock
Index Fund
Annual Report
December 31, 1997
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus Stock
Index Fund, for the fiscal year ended December 31, 1997. Over the period, your
Fund produced a total return of 32.96%.* This compares with a return of 33.35%**
for the Standard & Poor's 500 Composite Stock Price Index, which the Fund is
designed to mirror. The difference is accounted for by commissions and other
Fund expenses.
Economic Review
In 1997, the U.S. economy put in its best growth performance of this business
cycle to date. In tandem, the labor market tightened markedly, marginally
boosting wage inflation towards year end. Yet price inflation decelerated and
bond yields fell. Although corporate profit growth was robust for much of the
year, strains began to appear in the second half in some sectors. The Federal
Reserve Board (the "Fed") tightened credit early in the year, then subsequently
stayed on hold, torn between strong economic reports at home and worsening
financial crises overseas. While the problems overseas may slow the U.S. economy
somewhat in 1998, incoming evidence indicates little adverse impact on economic
activity to date.
Real Gross Domestic Product ("GDP") grew 3.8% in 1997, its best annual growth
since 1988. Almost all the major sectors contributed to growth. Households
enjoyed rising real incomes as wage increases outpaced price inflation. Moderate
interest rates buoyed housing demand. Tightening factory capacity boosted
capital spending, and until late in the year, steady foreign growth kept exports
robust. That all these sectors grew simultaneously in a late phase of the
business cycle was unusual. The year 1997 also saw a dramatic narrowing of the
Federal budget deficit. It is likely that the associated drop in Federal
borrowing boosted the supply of credit available to the private sector.
As mentioned, overall corporate profit growth rebounded in 1997, after
slowing in 1996. Profits from domestic sources generally did well. However,
profits from international sources began to show strains in the second half,
impacted by the rising dollar and by financial stresses overseas. More recently,
profits at some companies have been slowed by price weakness.
Economic data this winter show the economy still quite strong, although some
leading statistics have begun to signal somewhat slower economic growth for
1998. First, recently slowing export orders and rising import orders imply a
widening trade deficit. Second, the number of announced layoffs has begun to
rise, indicating some future easing of labor market pressures. Once these
leading indicators actually show up in a slowing of the economy, market
expectations may shift to anticipate the possibility of a move by the Fed to
ease credit. At the start of 1998, there was uncertainty about both the severity
of Asian stresses and their impact on the U.S. economy.
Market Overview
By virtually every measurement, 1997 was a historically favorable year for
stocks. The 12-month gains, despite setbacks along the way, were impressive.
However, the year ended on a note of uncertainty with no assurance that the
gains of 1997 could be repeated in 1998.
Index figures (price changes only, without including income) tell the story:
For the 12 months ended December 31, 1997, the Dow Jones Industrial Average
(DJIA) rose by 22.64%, the broader Standard & Poor's 500 Composite Stock Price
Index was up 31.01%, the Nasdaq Composite up 21.64% and the Russell 2000,
representing small capitalization stocks, gained 20.52%.
The economic background, at least until October when Asia's troubles
surfaced, was clearly favorable. So much so that economic commentators talked of
the "Goldilocks economy" -- not too hot and not too cold. Unemployment was low,
industrial production and other output measures continued to grow, yet price and
wage inflation were not problems. By the end of the year, there was even talk
that the next economic problem might be a touch of deflation.
The market began the year by rebounding from earlier weakness. The signs in
the market and the economy were so bullish that Fed Chairman Alan Greenspan
warned against "irrational exuberance," then followed that up on March 25 with
an increase in short-term interest rates. That cooled off the stock market
temporarily, but not for long. By early August, major stock market averages
reached all-time record highs.
As summer turned into autumn, however, doubts began to appear. There were
worries about the profit outlook and worries that inflation might resume. The
biggest negative influences, however, were the financial setbacks in Asia,
starting
<PAGE>
with Thailand, Malaysia, the Philippines, Hong Kong and Indonesia, then
spreading to South Korea and Japan. This raised questions for American investors
about how our export orders might be affected, how the profits of U.S.
multinationals would fare, and whether devaluation of Asian currencies would
cause a flood of cheaper imported goods into the U.S.
In view of these unsettling questions, it was impressive that the damage to
U.S. stocks by year-end was comparatively limited. On October 27, the DJIA sank
to 7161.15, a one-day loss of 7.18%, the worst since the big market sinking
spell of ten years earlier. Yet by the end of the year, the Dow had bounced back
to 7908.25, with other major indices and averages following suit.
For much of the year, large capitalization companies were in favor, though
small caps staged an impressive rally in midyear. Among the best-performing
industry groups were banks and other financial stocks, broadcasting,
advertising, airlines, home construction and trucking. Consumer software,
precious metals (particularly gold) and heavy industrial materials were among
the laggards.
A feature of the year was mergers and acquisitions that were the driving
force for some key stocks, particularly in the communications, finance and
broadcasting industries. The merger pace was such that it seemed likely to carry
over into 1998.
The boom of 1997 gave rise to such terms as "new era" and "new paradigm" to
describe the phenomenon of a stock market making new highs for three years in a
row. Yet the clouds that appeared on the horizon late in the year place the
burden of proof for 1998 on the "new era" advocates.
We thank you for allowing us to invest assets on your behalf.
Sincerely,
/s/ Steven Falci
Steven Falci
Portfolio Manager
January 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
The Fund'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.
<PAGE>
Dreyfus Stock Index Fund December 31, 1997
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS STOCK INDEX FUND
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
$34,885
Standard & Poor's 500
Composite Stock
Price Index*
Dollars
$33,704
Dreyfus Stock
Index Fund
*
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
One Year Ended Five Years Ended From Inception (9/29/89)
December 31, 1997 December 31, 1997 to December 31, 1997
------------------ ----------------------- ----------------------
<S> <C> <C> <C>
32.96% 19.70% 15.85%
</TABLE>
- --------------------------------------------------------------------------------
Past performance is not predictive of future performance.
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.
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 of the Fund. 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
- --------------------------------------------------------------------------------
Statement of Investments December 31, 1997
Shares COMMON STOCKS--97.5% Value
--------- -----------------
Basic Industries--3.9%
26,400 Air Products & Chemicals.. $ 2,171,400
9,800 Armstrong World Industries 732,550
24,800 Avery Dennison............ 1,109,800
7,300 Ball...................... 257,781
12,800 Bemis..................... 564,000
13,400 Boise Cascade............. 405,350
7,000 Centex.................... 440,562
23,100 Champion International.... 1,046,718
30,900 Crown Cork & Seal......... 1,548,862
54,900 Dow Chemical.............. 5,572,350
272,400 duPont (E.I.) de Nemours & Co 16,361,025
18,900 Eastman Chemical.......... 1,125,731
34,800 Engelhard................. 604,650
9,000 (a)FMC....................... 605,812
20,200 Fluor..................... 754,975
50,900 Fort James................ 1,946,925
41,300 Fortune Brands............ 1,530,681
22,000 Georgia Pacific........... 1,336,500
17,500 Grace (W.R.).............. 1,407,656
14,400 Great Lakes Chemical...... 646,200
23,900 Hercules.................. 1,196,493
72,800 International Paper....... 3,139,500
9,400 Kaufman & Broad Home...... 210,912
26,300 Louisiana Pacific......... 499,700
39,700 Masco..................... 2,019,737
25,200 Mead...................... 705,600
141,944 Monsanto.................. 5,961,648
32,100 Morton International...... 1,103,437
16,100 Nalco Chemical............ 636,956
33,800 (a)Owens-Illinois............ 1,282,287
43,200 PPG Industries............ 2,467,800
7,000 Potlach................... 301,000
38,100 Praxair................... 1,714,500
14,800 Rohm & Haas............... 1,417,100
41,600 Sherwin-Williams.......... 1,154,400
24,100 Sigma-Aldrich............. 957,975
23,900 Stone Container........... 249,456
13,700 Temple-Inland............. 716,681
41,000 Tenneco................... 1,619,500
16,700 Union Camp................ 896,581
29,900 Union Carbide............. 1,283,831
24,600 Westvaco.................. 773,362
48,000 Weyerhaeuser.............. 2,355,000
26,800 Willamette Industries..... 862,625
---------------
73,695,609
---------------
Capital Goods--22.0%
52,900 AMP....................... 2,221,800
17,600 Adobe Systems............. 726,000
33,900 (a)Advanced Micro Devices.... 608,081
6,800 Aeroquip-Vickers.......... 333,625
136,300 AlliedSignal.............. 5,307,181
21,750 (a)Andrew.................... 522,000
30,700 (a)Apple Computer............ 402,937
87,800 (a)Applied Materials......... 2,644,975
11,500 Autodesk.................. 425,500
70,500 Automatic Data Processing. 4,326,937
50,700 (a)Bay Networks.............. 1,296,018
241,124 Boeing.................... 11,800,005
6,100 Briggs & Stratton......... 296,231
47,600 Browning-Ferris Industries 1,761,200
Shares COMMON STOCKS (continued) Value
--------- -----------------
Capital Goods (continued)
38,000 Cabletron Systems......... $ 570,000
18,000 Case...................... 1,087,875
90,700 Caterpillar............... 4,404,618
190,448 Cendant................... 6,546,650
18,400 (a)Ceridian.................. 842,950
9,600 Cincinnati Milacron....... 249,000
241,650 (a)Cisco Systems............. 13,471,987
39,500 Cognizant................. 1,760,218
182,097 (a)Compaq Computer........... 10,277,099
131,525 Computer Associates
International........... 6,954,384
18,600 (a)Computer Sciences......... 1,553,100
29,400 Cooper Industries......... 1,440,600
11,050 Crane..................... 479,293
9,200 Cummins Engine............ 543,375
28,300 (a)DSC Communications........ 679,200
11,500 (a)Data General.............. 200,531
60,700 Deere & Co................ 3,539,568
79,700 (a)Dell Computer............. 6,694,800
19,800 Deluxe.................... 683,100
36,800 (a)Digital Equipment......... 1,361,600
53,600 Dover..................... 1,936,300
23,100 Dow Jones & Co............ 1,240,181
42,200 Dresser Industries........ 1,769,762
41,100 Dun & Bradstreet.......... 1,271,531
11,000 EG&G...................... 228,937
118,800 (a)EMC....................... 3,259,575
18,600 Eaton..................... 1,660,050
106,800 Emerson Electric.......... 6,027,525
36,300 Equifax................... 1,286,381
103,300 First Data................ 3,021,525
9,800 Foster Wheeler............ 265,212
15,000 General Dynamics.......... 1,296,562
788,600 General Electric.......... 57,863,525
12,100 General Signal............ 510,468
43,350 Genuine Parts............. 1,471,190
18,400 Goodrich (B.F.)........... 762,450
12,000 Grainger (W.W.)........... 1,166,250
11,900 Harnischfeger Industries.. 420,218
19,200 Harris.................... 880,800
250,500 Hewlett-Packard........... 15,656,250
30,700 Honeywell................. 2,102,950
28,500 ITT Industries............ 894,187
32,000 Ikon Office Solutions..... 900,000
60,100 Illinois Tool Works....... 3,613,512
39,950 Ingersoll-Rand............ 1,617,975
393,300 Intel..................... 27,629,325
236,600 International Business
Machines................ 24,739,487
30,000 Interpublic Group Cos..... 1,494,375
20,200 Johnson Controls.......... 964,550
20,200 (a)KLA-Tencor................ 780,225
34,200 (a)LSI Logic................. 675,450
46,700 Lockheed Martin........... 4,599,950
154,598 Lucent Technologies....... 12,348,515
13,400 McDermott International... 490,775
50,700 (a)Micron Technology......... 1,318,200
288,600 (a)Microsoft................. 37,301,550
100,100 Minnesota Mining &
Manufacturing........... 8,214,456
143,400 Motorola.................. 8,182,762
38,900 (a)National Semiconductor.... 1,008,968
<PAGE>
Dreyfus Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -----------------
Capital Goods (continued)
10,900 National Service Industries $ 540,231
63,100 Northern Telecommunications 5,615,900
16,100 Northrop Grumman.......... 1,851,500
84,100 (a)Novell.................... 630,750
235,950 (a)Oracle.................... 5,264,634
12,800 Owens-Corning............. 436,800
30,601 Pall...................... 633,058
30,700 (a)Parametric Technology..... 1,454,412
26,950 Parker-Hannifin........... 1,236,331
10,500 Perkin-Elmer.............. 746,156
34,800 Pitney Bowes.............. 3,129,825
20,700 Raychem................... 891,393
56,900 Raytheon, Cl. B........... 2,873,450
50,300 Rockwell International.... 2,628,175
18,700 Ryder System.............. 612,425
14,000 Safety-Kleen.............. 384,125
18,700 Scientific-Atlanta........ 313,225
58,900 (a)Seagate Technology........ 1,133,825
60,600 Service Corp. International 2,238,412
6,000 Shared Medical Systems.... 396,000
44,400 (a)Silicon Graphics.......... 552,225
14,750 Snap-On................... 643,468
21,400 Stanley Works............. 1,009,812
88,800 (a)Sun Microsystems.......... 3,540,900
83,000 (a)3COM...................... 2,899,812
12,100 Tektronix................. 480,218
43,600 (a)Tellabs................... 2,305,350
92,300 Texas Instruments......... 4,153,500
39,700 Textron................... 2,481,250
36,200 (a)Thermo Electron........... 1,610,900
13,200 Thomas & Betts............ 623,700
15,200 Timken.................... 522,500
128,300 Tyco International........ 5,781,518
42,100 (a)Unisys.................... 584,137
56,700 United Technologies....... 4,128,468
109,200 Waste Management.......... 3,003,000
78,300 Xerox..................... 5,779,518
---------------
409,995,245
---------------
Consumer Cyclical--11.9%
59,200 Albertson's............... 2,804,600
38,200 Omnicom Group............. 1,618,725
18,100 American Greetings, Cl. A. 708,162
65,600 American Stores........... 1,348,900
36,400 (a)AutoZone.................. 1,055,600
22,700 Black & Decker............ 886,718
23,900 Brunswick................. 724,468
170,000 CBS....................... 5,004,375
41,400 CVS....................... 2,652,187
25,500 (a)Charming Shoppes.......... 119,531
162,400 Chrysler.................. 5,714,450
23,700 Circuit City Stores....... 842,831
23,600 Clear Channel Communications 1,874,725
84,000 Comcast, Cl. A ........... 2,651,250
19,000 Cooper Tire and Rubber.... 463,125
51,200 (a)Costco Cos................ 2,284,800
25,100 Dana...................... 1,192,250
36,800 Darden Restaurants........ 460,000
52,400 Dayton Hudson............. 3,537,000
26,900 Dillard's, Cl. A.......... 948,225
Shares COMMON STOCKS (continued) Value
--------- -----------------
Consumer Cyclical (continued)
162,600 Disney (Walt).............$ 16,107,562
35,200 Donnelley (R.R.) & Sons... 1,311,200
15,200 Echlin.................... 550,050
50,400 (a)Federated Department Stores 2,170,350
8,700 Fleetwood Enterprises..... 369,206
287,700 Ford Motor................ 14,007,393
17,700 (a)Fruit of the Loom, Cl. A.. 453,562
68,300 Gannett................... 4,221,793
96,900 Gap....................... 3,433,893
175,600 General Motors............ 10,645,750
14,500 Giant Food, Cl. A......... 488,468
37,600 Goodyear Tire & Rubber.... 2,392,300
9,200 Great Atlantic & Pacific.. 273,125
17,000 Harcourt General.......... 930,750
7,500 Harland (John H.)......... 157,500
24,300 (a)Harrah's Entertainment.... 458,662
30,550 Hasbro.................... 962,325
60,200 Hilton Hotel.............. 1,790,950
175,850 Home Depot................ 10,353,168
28,000 (a)ITT....................... 2,320,500
9,400 Jostens................... 216,787
117,300 (a)K mart.................... 1,356,281
8,900 King World Productions.... 513,975
19,300 Knight-Ridder............. 1,003,600
61,300 (a)Kroger.................... 2,264,268
65,400 Limited................... 1,667,700
16,800 Liz Claiborne............. 702,450
9,400 Longs Drug Stores......... 301,975
41,900 Lowes..................... 1,998,106
30,600 Marriott International.... 2,119,050
70,000 Mattel.................... 2,607,500
56,000 May Department Stores..... 2,950,500
23,700 Maytag.................... 884,306
165,700 McDonald's................ 7,912,175
23,800 McGraw-Hill Cos........... 1,761,200
8,900 Mercantile Stores......... 541,787
12,900 Meredith.................. 460,368
43,100 (a)Mirage Resorts............ 980,525
21,400 Moore..................... 323,675
69,500 NIKE, Cl. B............... 2,727,875
17,600 (a)Navistar International.... 436,700
23,100 New York Times, Cl. A..... 1,527,487
35,500 (a)Nextlevel Systems......... 634,562
18,600 Nordstrom................. 1,122,975
18,700 PACCAR.................... 981,750
59,900 Penney (J.C.)............. 3,612,718
15,200 Pep Boys-Manny, Moe & Jack 362,900
11,198 Raytheon, Cl. A........... 552,201
13,600 (a)Reebok International...... 391,850
29,600 Rite Aid.................. 1,737,150
8,800 Russell................... 233,750
94,300 Sears, Roebuck & Co....... 4,267,075
4,900 Springs Industries........ 254,800
14,600 Supervalu................. 611,375
42,000 Sysco..................... 1,913,625
39,300 TJX....................... 1,350,937
29,700 TRW....................... 1,585,237
25,500 Tandy..................... 983,343
122,000 (a)Tele-Communications, Cl. A 3,408,375
134,800 Time Warner............... 8,357,600
23,100 Times Mirror, Cl. A....... 1,420,650
<PAGE>
Dreyfus Stock Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -----------------
Consumer Cyclical (continued)
68,700 (a)Toys R Us................. $ 2,159,756
29,600 Tribune................... 1,842,600
36,860 Tricon Global Restaurants. 1,071,243
146,000 (a)US West Media Group....... 4,215,750
30,300 V.F....................... 1,391,906
85,001 (a)Viacom, Cl. B............. 3,522,228
545,400 Wal-Mart Stores........... 21,509,212
118,600 Walgreen.................. 3,721,075
31,700 Wendy's International..... 762,781
18,000 Whirlpool................. 990,000
35,900 Winn-Dixie Stores......... 1,568,381
32,500 (a)Woolworth................. 662,187
---------------
222,748,711
---------------
Consumer Staples--11.5%
13,500 Alberto-Culver, Cl. B..... 432,843
118,400 Anheuser-Busch............ 5,209,600
134,913 Archer Daniels Midland.... 2,925,925
31,900 Avon Products............. 1,957,862
16,600 Brown-Forman, Cl. B....... 917,150
34,600 CPC International......... 3,728,150
110,800 Campbell Soup............. 6,440,250
24,900 Clorox.................... 1,968,656
597,400 Coca-Cola................. 39,801,775
71,300 Colgate-Palmolive......... 5,240,550
113,900 ConAgra................... 3,737,343
8,900 Coors (Adolph), Cl. B..... 295,925
55,600 Corning................... 2,064,150
78,500 Eastman Kodak............. 4,773,781
15,600 Ecolab.................... 864,825
38,500 General Mills............. 2,757,562
134,800 Gillette.................. 13,538,975
88,900 Heinz (H.J.).............. 4,517,231
34,400 Hershey Foods............. 2,130,650
26,300 International Flavors
& Fragrance............ 1,354,450
99,400 Kellogg................... 4,932,725
134,100 Kimberly-Clark............ 6,612,806
1,933 NACCO Industries, Cl. A... 207,193
38,300 Newell.................... 1,627,750
368,600 PepsiCo................... 13,430,862
583,600 Philip Morris Cos......... 26,444,375
15,900 Pioneer Hi-Bred International 1,705,275
11,000 Polaroid.................. 535,562
325,300 Procter & Gamble.......... 25,963,006
33,100 Quaker Oats............... 1,746,025
25,700 Ralston Purina Group...... 2,388,493
36,100 Rubbermaid................ 902,500
115,700 Sara Lee.................. 6,515,356
85,700 Seagram................... 2,769,181
14,800 Tupperware................ 412,550
44,300 UST....................... 1,636,331
154,200 Unilever, N.V............. 9,627,862
24,500 Whitman................... 638,531
28,000 Wrigley, (Wm) Jr.......... 2,227,750
---------------
214,981,786
---------------
Energy--8.7%
22,100 Amerada Hess.............. 1,212,737
118,200 Amoco..................... 10,061,775
Shares COMMON STOCKS (continued) Value
--------- -----------------
Energy (continued)
14,400 Anadarko Petroleum........ $ 873,900
21,800 Apache.................... 764,362
18,000 Ashland................... 966,375
77,300 Atlantic Richfield........ 6,193,662
40,600 Baker Hughes.............. 1,771,175
42,490 Burlington Resources...... 1,904,083
157,700 Chevron................... 12,142,900
25,500 Coastal................... 1,579,406
13,300 Columbia Gas System....... 1,044,881
23,000 Consolidated Natural Gas.. 1,391,500
4,900 Eastern Enterprises....... 220,500
75,500 Enron..................... 3,137,968
595,900 Exxon..................... 36,461,751
62,900 Halliburton............... 3,266,868
6,020 Helmerich & Payne......... 408,607
11,500 Kerr-McGee................ 728,093
189,300 Mobil..................... 13,665,093
11,700 Nicor..................... 493,593
7,500 ONEOK..................... 302,812
79,800 Occidental Petroleum...... 2,339,137
25,400 (a)Oryx Energy............... 647,700
20,100 Pacific Enterprises....... 756,262
11,400 Pennzoil.................. 761,662
8,400 Peoples Energy............ 330,750
63,400 Phillips Petroleum........ 3,082,825
20,800 (a)Rowan Cos................. 634,400
516,400 Royal Dutch Petroleum, A.D.R 27,982,425
119,200 Schlumberger.............. 9,595,600
20,700 Sonat..................... 947,025
17,500 Sun ...................... 736,093
132,600 Texaco.................... 7,210,125
69,400 USX-Marathon Group........ 2,342,250
61,144 Union Pacific Resources Group 1,482,742
59,500 Unocal.................... 2,309,343
13,000 (a)Western Atlas............. 962,000
76,600 Williams Cos.............. 2,173,525
---------------
162,885,905
---------------
Health Care--11.0%
20,500 (a)ALZA...................... 652,156
185,300 Abbott Laboratories....... 12,148,731
15,600 Allergan.................. 523,575
156,200 American Home Products.... 11,949,300
63,900 Amgen..................... 3,458,587
13,800 Bard (C.R.)............... 432,112
13,300 Bausch & Lomb............. 527,012
67,300 Baxter International...... 3,394,443
29,400 Becton, Dickinson & Co.... 1,470,000
26,800 Biomet.................... 686,750
46,800 (a)Boston Scientific......... 2,146,950
240,100 Bristol-Myers Squibb...... 22,719,462
26,100 Cardinal Health........... 1,960,762
157,550 Columbia/HCA Healthcare... 4,667,418
35,700 Guidant................... 2,222,325
47,700 HBO & Co.................. 2,289,600
93,300 (a)HEALTHSOUTH............... 2,589,075
39,400 (a)Humana.................... 817,550
320,500 Johnson & Johnson......... 21,112,937
267,900 Lilly (Eli)............... 18,652,537
17,700 Mallinckrodt Group........ 672,600
15,300 Manor Care................ 535,500
<PAGE>
Dreyfus Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -----------------
Health Care (continued)
112,600 Medtronic.................$ 5,890,387
290,900 Merck & Co................ 30,908,125
10,500 Millipore................. 356,343
311,300 Pfizer.................... 23,211,306
122,300 Pharmacia & Upjohn........ 4,479,237
176,500 Schering-Plough........... 10,965,062
22,100 St. Jude Medical.......... 674,050
72,900 (a)Tenet Healthcare.......... 2,414,812
17,700 U.S. Surgical............. 518,831
45,200 United Healthcare......... 2,245,875
65,400 Warner-Lambert............ 8,109,600
---------------
205,403,010
---------------
Interest Sensitive--16.9%
36,099 Aetna..................... 2,547,235
23,400 Ahmanson (H.F.) & Co...... 1,566,337
104,800 Allstate.................. 9,523,700
112,900 American Express.......... 10,076,325
59,815 American General.......... 3,233,748
168,900 American International Group 18,367,875
40,250 Aon....................... 2,359,656
33,000 BB&T...................... 2,114,062
35,100 BANKBOSTON................ 3,297,206
140,400 Banc One.................. 7,625,475
91,400 Bank of New York.......... 5,284,062
168,200 BankAmerica............... 12,278,600
24,000 Bankers Trust New York.... 2,698,500
47,900 Barnett Banks............. 3,442,812
12,800 Beneficial................ 1,064,000
17,800 CIGNA..................... 3,080,512
102,000 Chase Manhattan........... 11,169,000
41,500 Chubb..................... 3,138,437
13,100 Cincinnati Financial...... 1,843,825
110,300 Citicorp.................. 13,946,056
25,400 Comerica.................. 2,292,350
45,300 Conseco................... 2,058,318
48,700 CoreStates Financial...... 3,899,043
25,800 Countrywide Credit Industries 1,106,175
255,500 Federal National Mortgage
Association............. 14,579,468
37,150 Fifth Third Bancorp....... 3,037,012
71,200 First Chicago NBD......... 5,945,200
151,200 First Union............... 7,749,000
60,200 Fleet Financial Group..... 4,511,237
167,400 Federal Home Loan Mortgage 7,020,337
19,200 General Re................ 4,070,400
13,700 Golden West Financial..... 1,340,031
32,700 Green Tree Financial...... 856,331
25,100 H&R Block................. 1,124,793
28,400 Hartford Financial
Services Group......... 2,657,175
25,700 Household International... 3,278,356
46,000 Huntington Bancshares..... 1,656,000
17,100 Jefferson Pilot........... 1,331,662
52,300 Keycorp................... 3,703,493
24,600 Lincoln National.......... 1,921,875
27,700 Loews..................... 2,939,662
21,500 MBIA...................... 1,436,468
120,725 MBNA...................... 3,297,301
27,500 MGIC Investment........... 1,828,750
40,600 Marsh & McLennan.......... 3,027,237
Shares COMMON STOCKS (continued) Value
--------- -----------------
Interest Sensitive (continued)
60,600 Mellon Bank............... $ 3,673,875
79,800 Merrill Lynch & Co........ 5,820,412
43,100 Morgan (J.P.) & Co........ 4,864,912
141,367 Morgan Stanley, Dean Witter,
Discover and Co......... 8,358,323
51,800 National City............. 3,405,850
171,490 NationsBank............... 10,428,735
180,500 Norwest................... 6,971,812
73,900 PNC Bank.................. 4,216,918
17,400 Progressive............... 2,085,825
22,600 Providian Financial....... 1,021,237
5,100 Pulte..................... 213,243
13,200 Republic New York......... 1,507,275
20,200 St. Paul Cos.............. 1,657,662
33,600 Safeco.................... 1,638,000
63,750 Schwab (Charles).......... 2,673,515
38,700 State Street.............. 2,251,856
47,000 SunAmerica................ 2,009,250
51,500 SunTrust Banks............ 3,675,812
42,100 Synovus Financial......... 1,378,775
33,300 Torchmark................. 1,400,681
15,200 Transamerica.............. 1,618,800
275,524 Travelers Group........... 14,843,855
26,700 USF&G..................... 589,068
58,905 U.S. Bancorp.............. 6,593,678
33,600 UNUM...................... 1,827,000
49,100 Wachovia.................. 3,983,237
60,310 Washington Mutual......... 3,848,531
21,200 Wells Fargo............... 7,196,075
---------------
315,079,309
---------------
Mining And Metals--.9%
25,800 (a)ARMCO..................... 127,387
8,300 ASARCO.................... 186,231
54,700 Alcan Aluminium........... 1,511,087
42,332 Allegheny Teledyne........ 1,095,340
41,900 Aluminum Co. of America... 2,948,712
89,800 Barrick Gold.............. 1,672,525
55,300 Battle Mountain Gold...... 324,887
27,100 (a)Bethlehem Steel........... 233,737
22,500 Cyprus Amax Minerals...... 345,937
33,600 Echo Bay Mines............ 81,900
47,900 Freeport-McMoRan
Copper, Cl. B.......... 754,425
35,300 Homestake Mining.......... 313,287
40,200 Inco...................... 683,400
11,800 Inland Steel Industries... 202,075
37,619 Newmont Mining............ 1,105,058
21,200 Nucor..................... 1,024,225
14,500 Phelps Dodge.............. 902,625
57,700 Placer Dome............... 732,068
17,800 Reynolds Metals........... 1,068,000
20,600 USX-U.S. Steel............ 643,750
23,300 Worthington Industries.... 384,450
---------------
16,341,106
---------------
Transportation--1.3%
22,100 (a)AMR....................... 2,839,850
37,500 Burlington Northern Santa Fe 3,485,156
52,500 CSX....................... 2,835,000
<PAGE>
Dreyfus Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -----------------
Transportation (continued)
9,400 Caliber System............ $ 457,662
17,700 Delta Air Lines........... 2,106,300
27,700 (a)Federal Express........... 1,691,431
79,200 Laidlaw................... 1,079,100
90,800 Norfolk Southern.......... 2,797,775
52,700 Southwest Airlines........ 1,297,737
21,900 (a)USAir Group............... 1,368,750
59,500 Union Pacific............. 3,715,031
---------------
23,673,792
---------------
Utilities--9.4%
391,200 AT&T...................... 23,961,000
45,000 ALLTEL.................... 1,847,812
121,300 (a)Airtouch Communications... 5,041,531
45,600 American Electric Power... 2,354,100
132,400 Ameritech................. 10,658,200
35,600 Baltimore Gas & Electric.. 1,212,625
186,980 Bell Atlantic............. 17,015,180
238,800 BellSouth................. 13,447,425
38,000 CINergy................... 1,455,875
36,500 Carolina Power & Light.... 1,548,968
51,100 Central & Southwest....... 1,382,893
56,600 Consolidated Edison....... 2,320,600
34,900 DTE Energy................ 1,210,593
44,700 Dominion Resources........ 1,902,543
86,709 Duke Power................ 4,801,510
92,000 Edison International...... 2,501,250
58,100 Entergy................... 1,739,368
43,900 FPL Group................. 2,598,331
55,500 FirstEnergy............... 1,609,500
39,500 Frontier.................. 950,468
29,100 GPU....................... 1,225,837
230,300 GTE....................... 12,033,175
68,739 Houston Industries........ 1,834,472
166,600 MCI Communications........ 7,132,562
34,800 (a)Niagara Mohawk Power...... 365,400
17,800 Northern States Power..... 1,036,850
Shares COMMON STOCKS (continued) Value
--------- -----------------
Utilities (continued)
105,600 PG&E...................... $ 3,214,200
39,800 PP&L Resources............ 952,712
53,600 PECO Energy............... 1,299,800
71,300 PacifiCorp................ 1,947,381
55,900 Public Service Enterprise
Group 1,771,331
220,089 SBC Communications........ 16,121,519
164,900 Southern.................. 4,266,787
103,700 Sprint.................... 6,079,412
57,930 Texas Utilities........... 2,407,715
115,400 US West................... 5,207,425
52,100 UniCom.................... 1,602,075
31,800 Union Electric............ 1,375,350
217,300 (a)WorldCom.................. 6,573,325
---------------
176,007,100
---------------
TOTAL COMMON STOCKS
(cost $1,405,058,129)... $1,820,811,573
===============
Principal ..........................
Amount SHORT-TERM INVESTMENTS--2.2%
- ----------
U.S. Treasury Bills:
$ 9,567,000(b)4.93%, 1/8/98............ 9,560,399
15,911,000 5.08%, 1/22/1998......... 15,864,222
863,000 5.25%, 2/26/1998......... 856,329
7,821,000 5.22%, 3/5/1998.......... 7,750,533
1,050,000 5.23%, 3/12/1998......... 1,039,531
6,335,000 5.11%, 4/2/1998.......... 6,251,631
---------------
TOTAL SHORT-TERM
INVESTMENTS
(cost $41,319,552)...... $ 41,322,645
==============
TOTAL INVESTMENTS
(cost $1,446,377,681)........ 99.7% $1,862,134,218
======= ==============
CASH AND RECEIVABLES (NET)..... .3% $ 6,538,263
======= ==============
NET ASSETS..................... 100.0% $1,868,672,481
======= ==============
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open financial future positions.
<TABLE>
<CAPTION>
Statement of Financial Futures December 31, 1997
Market Value Unrealized
Covered (Depreciation)
Financial Futures Purchased Contracts by Contracts Expiration at 12/31/97
- ------------------------ -------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Standard & Poor's 500............................ 175 $42,835,625 March '98 $(21,450)
=========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1997
<TABLE>
<CAPTION>
Cost Value
--------------- ---------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,446,377,681 $1,862,134,218
Cash............................................. 4,581,097
Dividends receivable............................. 2,476,805
Receivable for investment securities sold........ 500,950
Receivable for futures variation margin--Note 4(a) 2,340
Prepaid expenses................................. 1,758
---------------
1,869,697,168
---------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 389,845
Payable for investment securities purchased...... 311,544
Accrued expenses................................. 323,298
---------------
1,024,687
---------------
NET ASSETS..................................................................... $1,868,672,481
===============
REPRESENTED BY: Paid-in capital.................................. $1,449,612,682
Accumulated undistributed investment income--net.. 363,269
Accumulated net realized gain (loss) on investments 2,961,443
Accumulated net unrealized appreciation (depreciation)
on investments [including ($21,450) net unrealized
(depreciation) on financial futures]--Note 4(b). 415,735,087
---------------
NET ASSETS..................................................................... $1,868,672,481
===============
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized)................ 72,574,255
NET ASSET VALUE, offering and redemption price per share....................... $25.75
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Operations Year Ended December 31, 1997
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>
INCOME: Cash dividends (net of $142,574 foreign taxes
withheld at source)...................... $22,913,978
Interest................................... 3,677,781
------------
Total Income............................. $ 26,591,759
EXPENSES: Management fee--Note 3(a)................... 3,357,626
Registration fees.......................... 228,319
Professional fees.......................... 117,490
Directors' fees and expenses--Note 3(c)..... 45,456
Prospectus and shareholders' reports....... 37,222
Shareholder servicing costs--Note 3(b)...... 16,455
Loan commitment fees--Note 2................ 9,720
Miscellaneous.............................. 28,862
------------
Total Expenses........................... 3,841,150
-------------
INVESTMENT INCOME--NET.................................................... 22,750,609
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.... $20,868,260
Net realized gain (loss) on financial futures 10,238,956
------------
Net Realized Gain (loss)................. 31,107,216
Net unrealized appreciation (depreciation) on
investments (including $245,720 net unrealized
appreciation on financial futures)....... 301,610,317
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 332,717,533
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $355,468,142
=============
</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, 1997 December 31, 1996
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 22,750,609 $ 11,787,770
Net realized gain (loss) on investments................................ 31,107,216 31,884,780
Net unrealized appreciation (depreciation) on investments.............. 301,610,317 67,782,146
--------------- ---------------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 355,468,142 111,454,696
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net.................................................. (22,484,033) (11,705,971)
Net realized gain on investments....................................... (52,209,539) (12,675,130)
--------------- ---------------
Total Dividends..................................................... (74,693,572) (24,381,101)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 968,080,279 520,828,128
Dividends reinvested................................................... 74,693,572 24,381,101
Cost of shares redeemed................................................ (268,834,713) (131,010,511)
--------------- ---------------
Increase (Decrease) in Net Assets from Capital Stock Transactions... 773,939,138 414,198,718
--------------- ---------------
Total Increase (Decrease) in Net Assets.......................... 1,054,713,708 501,272,313
NET ASSETS:
Beginning of Period.................................................... 813,958,773 312,686,460
--------------- ---------------
End of Period.......................................................... $1,868,672,481 $ 813,958,773
=============== ===============
Undistributed investment income--net....................................... $ 363,269 $ 96,693
--------------- ---------------
Shares Shares
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 40,703,214 27,543,376
Shares issued for dividends reinvested................................. 2,981,897 1,269,483
Shares redeemed........................................................ (11,239,469) (6,861,606)
--------------- ---------------
Net Increase (Decrease) In Shares Outstanding....................... 32,445,642 21,951,253
=============== ===============
</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>
Year Ended December 31,
--------------------------------------------
PER SHARE DATA: 1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $20.28 $17.20 $12.94 $13.20 $15.32
------ ------ ------ ------ ------
Investment Operations:
Investment income--net................................... .37 .39 .33 .32 .37
Net realized and unrealized gain (loss) on investments.. 6.26 3.43 4.39 (.21) 1.04
------ ------ ------ ------ ------
Total from Investment Operations........................ 6.63 3.82 4.72 .11 1.41
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.................... (.37) (.39) (.33) (.31) (.34)
Dividends in excess of investment income--net............ -- -- -- -- (.03)
Dividends from net realized gain on investments......... (.79) (.35) (.13) -- (3.00)
Dividends in excess of net realized gain on investments. -- -- -- (.06) (.16)
------ ------ ------ ------ ------
Total Distributions..................................... (1.16) (.74) (.46) (.37) (3.53)
------ ------ ------ ------ ------
Net asset value, end of period......................... $25.75 $20.28 $17.20 $12.94 $13.20
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................................... 32.96% 22.54% 36.78% .88% 9.33%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .28% .30% .39% .40% .40%
Ratio of net investment income to average net assets.... 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................................. 3.53% 10.92% 11.95% 2.82% 71.71%
Average commission rate paid*........................... $.0291 $.0317 -- -- --
Net Assets, end of period (000's Omitted)............... $1,868,672 $813,959 $312,686 $96,806 $61,319
<FN>
- -------------------------------------------------------------------------------
* For the years beginning January 1, 1996, the Fund is required to disclose its
average commisssion rate paid per share for purchases and
sales of investment securities.
</FN>
</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. 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. 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
December 31, 1997, the Fund did not borrow under the Facility. 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 had undertaken from January 1,
1997 until June 30, 1997 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, 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
<PAGE>
Dreyfus Stock Index Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
made to Dreyfus, or Dreyfus will bear, such excess expense. During the period
ended December 31, 1997, 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. During the period ended December 31, 1997, the Fund was
charged $15,500 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. During the period
ended December 31, 1997, the Fund was charged $340 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
December 31, 1997 amounted to $798,632,011 and $45,677,186, 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 December 31, 1997 and
their related unrealized market depreciation are set forth in the Statement of
Financial Futures.
(b) At December 31, 1997, accumulated net unrealized appreciation on
investments and financial futures was $415,735,087, consisting of $437,376,609
gross unrealized appreciation and $21,641,522 gross unrealized depreciation.
At December 31, 1997, 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
Shareholders and Board of Directors
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, 1997, and the related statements of operations for
the year then ended, and changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with 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 and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1997, 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, 1997, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended and the financial highlights for each of the five years
in the period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
New York, New York
January 29, 1998
Important Tax Information (Unaudited)
For Federal tax purposes the Fund hereby designates $.330 per share as a
long-term capital gain distribution (of which 90.91% is subject to the 20%
maximum Federal tax rate) of the $.480 per share paid on December 31, 1997 and
also designates $.355 per share as a long-term capital gain distribution of the
$.395 per share paid on September 2, 1997.
Additionally, the Fund designates 76.29% of the ordinary dividends paid
during the fiscal year ended December 31, 1997 as qualifying for the corporate
dividends received deduction.
<PAGE>
[Logo]
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. 763AR9712
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
PERIOD COMPOSITE STOCK DREYFUS 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
12/31/97 34,885 33,704
*Source: Lipper Analytical Services, Inc.
