Dreyfus
Stock Index Fund
ANNUAL REPORT December 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
22 Statement of Financial Futures
23 Statement of Assets and Liabilities
24 Statement of Operations
25 Statement of Changes in Net Assets
26 Financial Highlights
27 Notes to Financial Statements
31 Report of Independent Accountants
32 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Stock Index Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Stock Index Fund,
covering the 12-month period from January 1, 1999 through December 31, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio managers,
Steven Falci and Jocelin Reed.
The past year has been both highly volatile and rewarding for many investors in
U.S. stocks. On December 31, the last trading day of 1999, most major stock
market indices hit new highs, including the Dow Jones Industrial Average, the S&
P 500 Index of large-cap stocks, the technology-heavy Nasdaq 100 and the Russell
2000 Index of small-capitalization stocks.
These simultaneous highs masked the remarkable narrowness of the stock market's
advance in 1999, however. Following the trend established over the past several
years, growth-oriented stocks handily outperformed value-oriented stocks.
Indeed, until a more broad-based rally in the fourth quarter, stellar
performance was generally limited to a handful of highly valued technology and
telecommunications companies. In our view, many fundamentally sound companies in
other market sectors may be selling at attractive valuations.
We appreciate your confidence over the past year, and we look forward to
your continued participation in Dreyfus Stock Index Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
January 14, 2000
DISCUSSION OF FUND PERFORMANCE
Steven Falci and Jocelin Reed, Portfolio Managers
How did Dreyfus Stock Index Fund perform relative to its benchmark?
For the 12-month period ended December 31, 1999, Dreyfus Stock Index Fund
produced a total return of 20.60% .(1) In contrast, the Standard & Poor's
500((reg.tm)) Composite Stock Price Index ("S&P 500") produced a total return of
21.03% for the same period.(2) The difference in returns is primarily due to
transaction costs and other fund operating expenses.
What is the fund's investment approach?
The fund seeks to match the total return of the S&P 500 Index. To pursue this
goal, the fund generally invests in all 500 stocks in the S&P 500 in proportion
to their weighting in the Index. Often considered a barometer for the stock
market in general, the S&P 500 is made up of 500 widely held common stocks. It
is dominated by large blue chip stocks, which, when combined, cover nearly 75%
of the total U.S. market capitalization.
However, it is important to note that the S&P 500 is not composed of the 500
largest companies; rather, it is designed to capture the returns of many
different sectors of the U.S. economy. Accordingly, it is composed of 376
industrial, 41 utility, 72 financial and 11 transportation stocks. Each stock is
weighted by its market capitalization; that is, larger companies have greater
representation in the S& P 500 than smaller ones. The fund may also use stock
index futures as a substitute for the sale or purchase of stocks.
Dreyfus Stock Index Fund uses a passive management approach: all investment
decisions are made based on the fund's objective, which is to seek to match the
performance of the S& P 500. The fund does not attempt to manage market
volatility.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
At the beginning of the fund's 12-month reporting period, and following the
trend of the past few years, the growth of the U.S. equity market was dominated
by large-cap growth stocks. However in April, market sentiment began to shift
away from domestic large-cap growth stocks to include a broader group of
companies, including small- and mid-cap names. By August however, the equity
market began to narrow, once again favoring large-cap growth names. That
narrowing intensified even further in mid-October and continued through the end
of the year, led primarily by optimism in technology names.
To illustrate the importance of the fourth calendar quarter's performance, let's
look at the gains of the S&P 500 on a quarterly basis. By the end of the second
quarter, the S&P 500 had recorded gains of approximately 10%. By the end of the
third quarter, however, the S&P 500 was down approximately 6%, leaving the index
with about a 4% positive return going into the fourth quarter. Gains from the
fourth quarter were approximately 14%, which enabled the S&P 500 to complete the
calendar year with a total return of more than 20%.
During the reporting period, the largest gains within the S&P 500, and therefore
for the fund as well, came from its technology group, which includes electronic
instruments, communications equipment, electrical equipment, electronic
semiconductor and computer software companies. In addition, the S&P 500's
holdings within the broadcast media and basic materials areas provided strong
returns, as did its retail apparel stores and healthcare stocks.
On the other hand, the poorest performing returns of the S&P 500, and therefore
for the fund as well during the reporting period, were generated from its
pollution control, tobacco, office equipment and supplies, manufactured housing
and supermarket chain holdings. In addition, the stocks of specialty printing,
toys, and homebuilding stocks provided disappointing returns.
What is the fund's current strategy?
As a passively managed index fund, our strategy is to hold all 500 stocks that
make up the S& P 500 in an effort to closely match the Index's returns
We are pleased that the overall stock market recorded another positive year in
1999 and that the fund was successful in its goal of producing a return that is
similar to the S& P 500. We would also like to take this time to remind
shareholders that the benefit of investing in an index fund, such as Dreyfus
Stock Index Fund, is that it represents an inexpensive way for investors to
obtain broad exposure to the U.S. stock market, and to the large-cap asset class
in particular.
January 14, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR
LESS THAN THEIR ORIGINAL COST. 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.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD
& POOR'S 500(reg.tm) COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED
INDEX OF U.S. STOCK MARKET PERFORMANCE.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Stock Index Fund
and the Standard & Poor's 500 Composite Stock Price Index
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 12/31/99
<TABLE>
Inception From
Date 1 Year 5 Years 10 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FUND 9/29/89 20.60% 28.07% 17.70% 17.46%
</TABLE>
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
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.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS STOCK INDEX FUND
ON 9/29/89 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES OF THE FUND. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE
INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE,
WHICH DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. FURTHER
INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF
APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS
AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
December 31, 1999
COMMON STOCKS--98.7% Shares Value ($)
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ALCOHOL & TOBACCO--1.0%
Anheuser-Busch Cos. 196,100 13,898,588
Brown-Forman, Cl. B 28,700 1 ,643,075
Coors (Adolph), Cl. B 15,400 808,500
Philip Morris Cos. 1,002,700 23,250,106
Seagram 181,400 8,151,663
UST 73,000 1,838,688
49,590,620
CONSUMER CYCLICAL--9.3%
AMR 63,100(a) 4,227,700
Albertson's 176,377 5,688,158
AutoZone 62,400(a) 2,016,300
Bed Bath & Beyond 58,600(a) 2,036,350
Best Buy 85,500(a) 4,291,031
Black & Decker 36,500 1,907,125
Brunswick 38,600 858,850
CVS 164,300 6,561,731
Circuit City Group 84,300 3,798,769
Consolidated Stores 46,200(a) 750,750
Cooper Tire and Rubber 31,800 494,888
Costco Wholesale 92,600(a) 8,449,750
Dana 69,506 2,080,836
Darden Restaurants 55,400 1,004,125
Dayton Hudson 185,500 13,622,656
Delphi Automotive Systems 237,003 3,732,797
Delta Air Lines 58,900 2,933,956
Dillard's, Cl. A 44,900 906,419
Dollar General 94,250 2,144,188
Eastman Kodak 132,800 8,798,000
Federated Department Stores 87,500(a) 4,424,219
Ford Motor 507,500 27,119,531
Gap 359,700 16,546,200
General Motors 270,200 19,640,163
Grainger (W.W.) 39,200 1,874,250
Great Atlantic & Pacific 16,100 448,788
Harrah's Entertainment 53,800(a) 1,422,338
Hasbro 81,675 1,556,930
Hilton Hotel 155,400 1,495,725
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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CONSUMER CYCLICAL (CONTINUED)
Home Depot 963,000 66,025,688
K mart 207,100(a) 2,083,944
Kohl's 68,300(a) 4,930,406
Kroger 348,000 6,568,500
Leggett & Platt 82,500 1,768,594
Limited 89,800 3,889,463
Liz Claiborne 25,800 970,725
Longs Drug Stores 16,500 425,906
Lowes 160,000 9,560,000
Marriott International, Cl. A 104,400 3,295,125
Mattel 176,300 2,313,938
May Department Stores 140,150 4,519,838
Maytag 36,600 1,756,800
McDonald's 568,300 22,909,594
Mirage Resorts 83,500(a) 1,278,594
NIKE, Cl. B 118,000 5,848,375
Navistar International 27,800(a) 1,317,025
Nordstrom 58,800 1,539,825
Office Depot 157,200(a) 1,719,375
PACCAR 32,800 1,453,450
Penney (J.C.) 110,600 2,205,088
Pep Boys-Manny, Moe & Jack 22,100 201,663
Polaroid 18,600 349,913
Reebok International 23,500(a) 192,406
Rite Aid 108,600 1,214,963
Russell 14,000 234,500
Safeway 214,100(a) 7,613,931
Sara Lee 379,000 8,361,688
Sears, Roebuck & Co. 159,600 4,857,825
Southwest Airlines 211,450 3,422,847
Springs Industries 7,500 299,531
Staples 194,950(a) 4,045,213
TJX Cos. 133,300 2,724,319
Tandy 81,100 3,989,106
Toys R Us 103,900(a) 1,487,069
Tricon Global Restaurants 64,360(a) 2,485,905
US Airways Group 30,000(a) 961,875
COMMON STOCKS (CONTINUED) Shares Value ($)
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CONSUMER CYCLICAL (CONTINUED)
V.F. 49,900 1,497,000
Wal-Mart Stores 1,866,800 129,042,550
Walgreen 421,000 12,314,250
Wendy's International 50,900 1,049,813
Whirlpool 31,600 2,055,975
Winn-Dixie Stores 62,300 1,491,306
487,106,424
CONSUMER STAPLES--5.2%
Alberto-Culver, Cl. B 23,400 604,013
Archer Daniels Midland 259,015 3,156,745
Avon Products 109,400 3,610,200
Bestfoods 117,000 6,149,813
Campbell Soup 182,100 7,044,994
Clorox 99,000 4,987,125
Coca-Cola 1,035,800 60,335,350
Coca-Cola Enterprises 178,300 3,588,288
Colgate-Palmolive 244,600 15,899,000
ConAgra 204,800 4,620,800
Fortune Brands 69,800 2,307,763
General Mills 128,200 4,583,150
Gillette 455,200 18,748,550
Heinz (H.J.) 150,400 5,987,800
Hershey Foods 58,500 2,778,750
International Flavors & Fragrances 44,500 1,679,875
Kellogg 170,000 5,238,125
Nabisco Group Holdings 136,800 1,453,500
National Service Industries 17,000 501,500
Newell Rubbermaid 118,271 3,429,859
PepsiCo 613,400 21,622,350
Procter & Gamble 550,300 60,292,244
Quaker Oats 56,100 3,681,563
Ralston-Purina Group 135,700 3,782,638
SUPERVALU 58,300 1,166,000
Sysco 138,800 5,491,275
Tupperware 24,200 409,888
Unilever, N.V. 239,789 13,053,514
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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CONSUMER STAPLES (CONTINUED)
Wrigley, (Wm) Jr 48,800 4,047,350
270,252,022
ENERGY--6.0%
Amerada Hess 38,000 2,156,500
Anadarko Petroleum 53,500 1,825,688
Apache 47,800 1,765,613
Atlantic Richfield 135,200 11,694,800
Baker Hughes 137,920 2,904,940
Burlington Resources 91,290 3,018,276
Chevron 275,200 23,839,200
Coastal 89,500 3,171,656
Columbia Energy Group 34,450 2,178,963
Conoco, Cl. B 263,036 6,543,010
Consolidated Natural Gas 40,200 2,610,488
Eastern Enterprises 11,300 649,044
El Paso Energy 95,600 3,710,475
Enron 299,500 13,290,313
Exxon Mobil 1,446,169 116,507,013
Halliburton 185,100 7,450,275
McDermott International 24,900 225,656
Nicor 19,800 643,500
ONEOK 13,300 334,163
Occidental Petroleum 146,200 3,161,575
Peoples Energy 14,900 499,150
Phillips Petroleum 106,300 4,996,100
Rowan Cos. 34,900(a) 756,894
Royal Dutch Petroleum 899,500 54,363,531
Schlumberger 229,700 12,920,625
Sunoco 38,000 893,000
Texaco 231,900 12,595,069
Tosco 63,900 1,737,281
Transocean Sedco Forex 132,670 4,469,318
USX-Marathon Group 129,500 3,197,031
Union Pacific Resources Group 105,644 1,346,961
Unocal 101,700 3,413,306
Williams Cos. 182,100 5,565,431
314,434,845
COMMON STOCKS (CONTINUED) Shares Value ($)
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HEALTH CARE--9.5%
ALZA 42,600(a) 1,475,025
Abbott Laboratories 638,200 23,174,638
Allergan 55,400 2,756,150
American Home Products 548,100 21,615,694
Amgen 427,800(a) 25,694,738
Bard (C.R.) 21,500 1,139,500
Bausch & Lomb 24,100 1,649,344
Baxter International 122,100 7,669,406
Becton, Dickinson & Co. 105,000 2,808,750
Biomet 47,200 1,888,000
Boston Scientific 173,500(a) 3,795,313
Bristol-Myers Squibb 833,200 53,481,025
Cardinal Health 114,250 5,469,719
Columbia/HCA Healthcare 236,650 6,936,803
Guidant 126,700 5,954,900
HEALTHSOUTH 174,100(a) 935,788
Humana 70,300(a) 575,581
Johnson & Johnson 582,400 54,236,000
Lilly (Eli) & Co. 458,400 30,483,600
Mallinckrodt Group 29,800 948,013
Manor Care 44,900(a) 718,400
McKesson HBOC 118,046 2,663,413
Medtronic 492,300 17,938,181
Merck & Co. 978,200 65,600,538
Pfizer 1,625,500 52,727,156
Pharmacia & Upjohn 212,500 9,562,500
Schering-Plough 616,000 25,987,500
Service Corp. International 114,100 791,569
Sigma-Aldrich 42,300 1,271,644
St. Jude Medical 35,500(a) 1,089,406
Tenet Healthcare 130,300(a) 3,062,050
Tyco International 701,972 27,289,162
United HealthCare 72,700 3,862,188
Warner-Lambert 358,600 29,382,788
Watson Pharmaceuticals 40,200(a) 1,439,663
Wellpoint Health Networks 27,600(a) 1,819,875
497,894,020
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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INTEREST SENSITIVE--17.4%
AFLAC 111,500 5,261,406
Aetna 62,799 3,504,969
Allstate 334,900 8,037,600
American Express 188,500 31,338,125
American General 104,515 7,930,076
American International Group 649,425 70,219,078
Amsouth Bancorp 165,050 3,187,528
Aon 107,425 4,297,000
Associates First Capital, Cl. A 305,438 8,380,455
BB&T 134,000 3,668,250
Bank One 492,010 15,775,071
Bank of America 714,646 35,866,296
Bank of New York 308,500 12,340,000
Bear Stearns Cos. 51,327 2,194,229
Block (H&R) 41,000 1,793,750
CIGNA 78,000 6,283,875
Capital One Financial 82,800 3,989,925
Cendant 302,148(a) 8,025,806
Chase Manhattan 349,200 27,128,475
Chubb 73,900 4,161,494
Cincinnati Financial 69,200 2,158,175
Citigroup 1,411,911 78,449,305
Comerica 65,600 3,062,700
Conseco 137,201 2,452,468
Countrywide Credit Industries 47,400 1,196,850
Equifax 60,300 1,420,819
Federal Home Loan Mortgage 291,600 13,723,425
Federal National Mortgage Association 430,000 26,848,125
Fifth Third Bancorp 126,625 9,291,109
First Union 401,290 13,167,328
Firstar 413,133 8,727,435
Fleet Boston Financial 386,586 13,458,025
Franklin Resources 105,800 3,392,213
General Electric 1,373,800 212,595,496
Golden West Financial 69,300 2,321,550
Hartford Financial Services Group 94,800 4,491,150
Household International 200,825 7,480,731
Huntington Bancshares 96,635 2,307,161
COMMON STOCKS (CONTINUED) Shares Value ($)
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INTEREST SENSITIVE (CONTINUED)
Jefferson-Pilot 44,250 3,020,063
Keycorp 188,200 4,163,925
Lehman Brothers Holdings 50,300 4,259,781
Lincoln National 83,400 3,336,000
Loews 45,100 2,737,006
MBIA 41,900 2,212,844
MBNA 336,387 9,166,546
MGIC Investment 45,800 2,756,588
Marsh & McLennan Cos. 110,750 10,597,391
Mellon Financial 215,700 7,347,281
Merrill Lynch 155,000 12,942,500
Morgan (J.P.) 73,600 9,319,600
Morgan Stanley Dean Witter & Co. 233,167 33,284,589
National City 259,300 6,142,169
Northern Trust 93,600 4,960,800
Old Kent Financial 49,800 1,761,675
Paine Webber Group 61,100 2,371,444
PNC Bank 127,500 5,673,750
Progressive 30,600 2,237,625
Providian Financial 59,500 5,418,219
Regions Financial 93,900 2,359,238
Republic New York 44,000 3,168,000
SLM Holding 67,500 2,851,875
Safeco 55,200 1,373,100
Schwab (Charles) 343,050 13,164,544
SouthTrust 70,300 2,658,219
St. Paul Companies 95,090 3,203,344
State Street 67,600 4,939,025
Summit Bancorp 74,300 2,275,438
SunTrust Banks 135,000 9,289,688
Synovus Financial 113,800 2,261,775
T. Rowe Price Associates 50,900 1,880,119
Torchmark 55,800 1,621,688
U.S. Bancorp 306,915 7,308,413
Union Planters 60,000 2,366,250
UnumProvident 100,144 3,210,867
Wachovia 84,800 5,766,400
Washington Mutual 242,909 6,315,634
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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INTEREST SENSITIVE (CONTINUED)
Wells Fargo 691,900 27,978,706
907,629,592
PRODUCER GOODS--6.7%
Air Products & Chemicals 96,200 3,228,713
Alcan Aluminium 94,800 3,904,575
Alcoa 153,800 12,765,400
Allegheny Technologies 39,966 896,737
Armstrong World Industries 16,800 560,700
Ashland 30,300 998,006
Avery Dennison 47,700 3,476,138
Ball 12,800 504,000
Barrick Gold 163,600 2,893,675
Bemis 21,900 763,763
Bethlehem Steel 54,900(a) 459,788
Boeing 391,524 16,272,716
Boise Cascade 23,900 967,950
Briggs & Stratton 9,800 525,525
Burlington Northern Santa Fe 195,000 4,728,750
CSX 91,300 2,864,538
Caterpillar 149,200 7,021,725
Centex 25,000 617,188
Champion International 40,300 2,496,081
Cooper Industries 39,600 1,601,325
Crane 28,375 563,953
Crown Cork & Seal 51,300 1,147,838
Cummins Engine 17,600 850,300
Deere & Co. 98,000 4,250,750
Dow Chemical 92,300 12,333,588
duPont (E.I.) deNemours & Co. 437,632 28,829,008
Eastman Chemical 32,800 1,564,150
Ecolab 54,300 2,124,488
Emerson Electric 182,300 10,459,463
Engelhard 52,800 996,600
FDX 124,740(a) 5,106,544
FMC 13,300(a) 762,256
Fleetwood Enterprises 14,000 288,750
Fluor 31,800 1,458,825
COMMON STOCKS (CONTINUED) Shares Value ($)
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PRODUCER GOODS (CONTINUED)
Fort James 92,700 2,537,663
Foster Wheeler 17,100 151,763
Freeport-McMoRan Copper, Cl. B 68,600 1,449,175
General Dynamics 83,600 4,409,900
Genuine Parts 75,150 1,864,659
Georgia-Pacific 71,900 3,648,925
Goodrich (B.F.) 46,100 1,267,750
Goodyear Tire & Rubber 65,600 1,849,100
Grace (W.R.) & Co. 29,900(a) 414,863
Great Lakes Chemical 24,500 935,594
Hercules 44,500 1,240,438
Homestake Mining 109,200 853,125
Honeywell International 331,113 19,101,052
ITT Industries 36,900 1,233,844
Illinois Tool Works 125,700 8,492,606
Inco 80,500 1,891,750
Ingersoll-Rand 69,250 3,813,078
International Paper 173,460 9,789,649
Kansas City Southern Industries 46,400 3,462,600
Kaufman & Broad Home 20,100 486,169
Kerr-McGee 36,258 2,247,996
Kimberly-Clark 223,500 14,583,375
Lockheed Martin 165,800 3,626,875
Louisiana-Pacific 45,100 642,675
Masco 185,800 4,714,675
Mead 42,900 1,863,469
Milacron 15,500 238,313
Minnesota Mining & Manufacturing 169,000 16,540,875
Monsanto 265,844 9,470,693
NACCO Industries, Cl. A 3,433 190,746
Newmont Mining 70,319 1,722,816
Norfolk Southern 159,600 3,271,800
Northrop Grumman 29,100 1,573,219
Nucor 36,600 2,006,138
Owens-Corning 23,000 444,188
Owens-Illinois 65,400(a) 1,639,088
PPG Industries 72,800 4,554,550
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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PRODUCER GOODS (CONTINUED)
Pactiv 71,500(a) 759,688
Pall 52,101 1,123,428
Parker-Hannifin 45,550 2,337,284
Phelps Dodge 32,733 2,197,203
Placer Dome 136,600 1,468,450
Potlach 12,100 539,963
Praxair 66,900 3,365,906
Pulte 18,100 407,250
Raytheon, Cl. B 141,700 3,763,906
Reynolds Metals 26,400 2,022,900
Rockwell International 80,300 3,844,363
Rohm & Haas 91,406 3,719,082
Sealed Air 35,112(a) 1,819,241
Sherwin-Williams 71,000 1,491,000
Snap-On 27,550 731,797
Stanley Works 37,300 1,123,663
TRW 50,900 2,643,619
Temple-Inland 23,400 1,542,938
Textron 63,000 4,831,313
Thomas & Betts 23,900 761,813
Timken 26,000 531,375
USX-U.S. Steel Group 37,100 1,224,300
Union Carbide 55,900 3,731,325
Union Pacific 104,000 4,537,000
United Technologies 202,100 13,136,500
Vulcan Materials 42,000 1,677,375
Westvaco 42,000 1,370,250
Weyerhaeuser 98,900 7,102,256
Willamette Industries 46,800 2,173,275
Worthington Industries 38,500 637,656
353,125,119
SERVICES--8.3%
ALLTEL 128,000 10,584,000
Allied Waste Industries 79,100 697,069
America Online 935,800(a) 70,594,413
American Greetings, Cl. A 28,300 668,588
Automatic Data Processing 259,600 13,985,950
COMMON STOCKS (CONTINUED) Shares Value ($)
- --------------------------------------------------------------------------------
SERVICES (CONTINUED)
CBS 319,871 20,451,752
Carnival 257,300(a) 12,302,156
Ceridian 60,700(a) 1,308,844
Clear Channel Communications 141,600 12,637,800
Comcast, Cl. A 314,400 15,798,600
Computer Sciences 67,100(a) 6,349,338
Deluxe 31,800 872,513
Disney (Walt) 865,100 25,304,175
Donnelley (R.R.) & Sons 53,600 1,329,950
Dow Jones & Co 38,100 2,590,800
Dun & Bradstreet 67,500 1,991,250
Electronic Data Systems 196,900 13,179,994
First Data 180,000 8,876,250
Gannett 117,300 9,567,281
Harcourt General 29,800 1,199,450
IMS Health 131,200 3,567,000
Interpublic Group Cos. 118,300 6,824,431
Jostens 14,200(a) 345,238
Knight-Ridder 34,000 2,023,000
McGraw-Hill Cos. 82,600 5,090,225
MediaOne Group 254,400(a) 19,541,100
Meredith 21,800 908,788
New York Times, Cl. A 73,000 3,586,125
NEXTEL Communications, Cl. A 151,700(a) 15,644,063
Omnicom Group 74,400 7,440,000
Paychex 103,150 4,126,000
Quintiles Transnational 48,100(a) 898,869
Ryder System 26,900 657,369
Shared Medical Systems 11,200 570,500
Sprint (PCS Group) 179,800(a) 18,429,500
Time Warner 542,600 39,304,588
Times Mirror, Cl. A 25,100 1,681,700
Tribune 99,400 5,473,213
Viacom, Cl. B 292,202(a) 17,659,958
Waste Management 259,772 4,464,831
Yahoo 110,400(a) 47,768,700
436,295,371
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- --------------------------------------------------------------------------------
TECHNOLOGY--26.7%
ADC Telecommunications 64,200(a) 4,658,513
Adaptec 43,300(a) 2,159,588
Adobe Systems 51,200 3,443,200
Advanced Micro Devices 61,800(a) 1,788,338
Analog Devices 72,500(a) 6,742,500
Andrew 34,450(a) 652,397
Apple Computer 67,500(a) 6,939,844
Applied Materials 157,500(a) 19,953,281
Autodesk 24,700 833,625
BMC Software 100,400 8,025,725
Cabletron Systems 73,000(a) 1,898,000
Cisco Systems 1,369,450(a) 146,702,331
Citrix Systems 38,300(a) 4,710,900
Compaq Computer 713,172 19,300,217
Computer Associates International 225,525 15,772,655
Compuware 149,800(a) 5,580,050
Comverse Technology 29,300(a) 4,241,175
Corning 102,700 13,241,881
Danaher 59,600 2,875,700
Dell Computer 1,065,900(a) 54,360,900
Dover 87,400 3,965,775
EMC 425,100 46,442,175
Eaton 30,300 2,200,538
Gateway 131,400(a) 9,469,013
General Instrument 72,700(a) 6,179,500
Hewlett-Packard 425,000 48,423,438
Ikon Office Solutions 62,600 426,463
Intel 1,398,600 115,122,263
International Business Machines 754,900 81,529,200
Johnson Controls 35,800 2,036,125
KLA-Tencor 37,000(a) 4,120,875
LSI Logic 61,800(a) 4,171,500
Lexmark International Group, Cl. A 54,000(a) 4,887,000
Lucent Technologies 1,311,747 98,135,072
Micron Technology 113,000 8,785,750
Microsoft 2,160,000(a) 252,180,000
Millipore 18,900 730,013
COMMON STOCKS (CONTINUED) Shares Value ($)
- --------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Molex 64,900 3,679,019
Motorola 254,700 37,504,575
National Semiconductor 70,500(a) 3,018,281
Network Appliance 61,800(a) 5,133,263
Nortel Networks 556,740 56,230,740
Novell 140,500(a) 5,611,219
Oracle 595,875(a) 66,775,242
PE Biosystems Group 42,800 5,149,375
Parametric Technology 113,000(a) 3,058,063
PeopleSoft 111,500(a) 2,376,344
PerkinElmer 19,200 800,400
Pitney Bowes 112,200 5,420,663
QUALCOMM 276,000(a) 48,645,000
Scientific-Atlanta 32,100 1,785,563
Seagate Technology 87,400(a) 4,069,563
Silicon Graphics 79,200(a) 777,150
Solectron 122,600(a) 11,662,325
Sun Microsystems 649,200(a) 50,272,425
3COM 150,000(a) 7,050,000
Tektronix 19,700 765,838
Tellabs 164,300(a) 10,546,006
Teradyne 71,800(a) 4,738,800
Texas Instruments 335,600 32,511,250
Thermo Electron 66,200 993,000
Unisys 128,400 4,100,775
Xerox 278,200 6,311,663
Xilinx 132,600(a) 6,029,156
1,397,701,218
UTILITIES--8.6%
AT&T 1,340,565 68,033,674
AES 86,400(a) 6,458,400
Ameren 57,600 1,886,400
American Electric Power 81,100 2,605,338
Bell Atlantic 651,360 40,099,350
BellSouth 790,900 37,024,006
CINergy 66,700 1,609,138
CMS Energy 49,500 1,543,781
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- --------------------------------------------------------------------------------
UTILITIES (CONTINUED)
Carolina Power & Light 66,900 2,036,269
Central & Southwest 89,200 1,784,000
CenturyTel 58,550 2,773,806
Consolidated Edison 92,700 3,198,150
Constellation Energy Group 62,700 1,818,300
DTE Energy 60,800 1,907,600
Dominion Resources 80,500 3,159,625
Duke Energy 153,109 7,674,589
Edison International 145,700 3,815,519
Entergy 103,500 2,665,125
FPL Group 75,200 3,219,500
FirstEnergy 98,100 2,225,644
Florida Progress 41,200 1,743,275
GPU 52,600 1,574,713
GTE 411,500 29,036,469
Global Crossing 322,240(a) 16,112,000
MCI WorldCom 1,188,654(a) 63,072,954
New Century Energies 48,300 1,467,113
Niagara Mohawk Power 78,600(a) 1,095,488
Northern States Power 64,700 1,261,650
PG&E 161,100 3,302,550
PP&L Resources 66,200 1,514,325
PECO Energy 78,300 2,720,925
Pinnacle West Capital 35,600 1,088,025
Public Service Enterprise Group 92,000 3,202,750
Reliant Energy 124,139 2,839,680
SBC Communications 1,432,262 69,822,773
Sempra Energy 100,791 1,751,244
Southern 286,600 6,735,100
Sprint (FON Group) 363,900 24,495,019
Texas Utilities 115,930 4,122,761
U S West 211,666 15,239,952
UniCom 91,200 3,055,200
450,792,180
TOTAL COMMON STOCKS
(cost $3,403,393,884) 5,164,821,411
Principal
SHORT-TERM INVESTMENTS--1.3% Amount ($) Value ($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--1.2%
Greenwich Capital Markets, 2.8% dated
12/31/1999, due 1/3/2000 in the amount
of $60,614,140 (fully collateralized by
$51,850,000 U.S. Treasury Inflation Protected
Securities, 3.375%, 1/15/2007; $8,990,000
U.S. Treasury Inflation Protected Securities,
3.875%, 1/15/2009, total value $61,816,371) 60,600,000 60,600,000
U.S. TREASURY BILLS--.1%
5.07%, 3/2/2000 5,062,000(b) 5,019,935
TOTAL SHORT-TERM INVESTMENTS
(cost $65,618,513) 65,619,935
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $3,469,012,397) 100.0% 5,230,441,346
<S> <C> <C>
LIABILITIES, LESS CASH AND RECEIVABLES .0% (735,043)
NET ASSETS 100.0% 5,229,706,303
A NON-INCOME PRODUCING.
B PARTIALLY HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<TABLE>
STATEMENT OF FINANCIAL FUTURES
December 31, 1999
Market Value Unrealized
Covered Appreciation
Contracts by Contracts ($) Expiration at 12/31/99 ($)
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL FUTURES LONG
<S> <C> <C> <C> <C>
Standard & Poor's 500 170 63,078,500 March 2000 1,621,440
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments
<S> <C> <C>
--Note 1(b) 3,469,012,397 5,230,441,346
Cash 57,209
Receivable for shares of Common Stock subscribed 8,523,006
Dividends and interest receivable 4,609,615
Receivable for investment securities sold 440,296
Receivable for futures variation margin--Note 4(a) 134,822
Prepaid expenses 47,822
5,244,254,116
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 1,063,468
Payable for shares of Common Stock redeemed 10,008,479
Payable for investment securities purchased 3,117,039
Accrued expenses 358,827
14,547,813
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 5,229,706,303
- ------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 3,470,181,617
Accumulated undistributed investment income--net 646,347
Accumulated net realized gain (loss) on investments (4,172,050)
Accumulated net unrealized appreciation (depreciation)
on investments (including $1,621,440 net unrealized
appreciation on financial futures)--Note 4(b) 1,763,050,389
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 5,229,706,303
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized) 136,011,886
NET ASSET VALUE, offering and redemption price per share ($) 38.45
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $537,410 foreign taxes withheld at source) 53,998,178
Interest 5,925,047
TOTAL INCOME 59,923,225
EXPENSES:
Management fee--Note 3(a) 10,577,826
Registration fees 277,786
Prospectus and shareholders' reports 71,142
Professional fees 51,484
Directors' fees and expenses--Note 3(c) 46,846
Loan commitment fees--Note 2 34,591
Shareholder servicing costs--Note 3(b) 13,041
Miscellaneous 258,613
TOTAL EXPENSES 11,331,329
INVESTMENT INCOME--NET 48,591,896
- -------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 8,464,981
Net realized gain (loss) on financial futures 15,612,800
NET REALIZED GAIN (LOSS) 24,077,781
Net unrealized appreciation (depreciation) on investments
[including ($617,496) net unrealized (depreciation) on
financial futures] 754,135,017
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 778,212,798
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 826,804,694
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
-------------------------------------
1999 1998
- -------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 48,591,896 34,943,946
Net realized gain (loss) on investments 24,077,781 17,387,491
Net unrealized appreciation (depreciation)
on investments 754,135,017 593,180,285
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 826,804,694 645,511,722
- -------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (47,945,549) (35,513,218)
Net realized gain on investments (41,840,248) (6,552,514)
TOTAL DIVIDENDS (89,785,797) (42,065,732)
- -------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 1,770,669,411 1,531,271,100
Dividends reinvested 89,785,797 42,065,732
Cost of shares redeemed (808,309,981) (604,913,124)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 1,052,145,227 968,423,708
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,789,164,124 1,571,869,698
- -------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 3,440,542,179 1,868,672,481
END OF PERIOD 5,229,706,303 3,440,542,179
Undistributed investment income--net 646,347 --
- -------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 50,987,939 52,994,265
Shares issued for dividends reinvested 2,504,918 1,413,619
Shares redeemed (23,266,719) (21,196,391)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 30,226,138 33,211,493
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended December 31,
----------------------------------------------------
1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 32.52 25.75 20.28 17.20 12.94
Investment Operations:
Investment income--net .40(a) .37 .37 .39 .33
Net realized and unrealized
gain (loss) on investments 6.24 6.85 6.26 3.43 4.39
Total from Investment Operations 6.64 7.22 6.63 3.82 4.72
Distributions:
Dividends from investment income--net (.38) (.38) (.37) (.39) (.33)
Dividends from net realized gain
on investments (.33) (.07) (.79) (.35) (.13)
Total Distributions (.71) (.45) (1.16) (.74) (.46)
Net asset value, end of period 38.45 32.52 25.75 20.28 17.20
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 20.60 28.21 32.96 22.54 36.78
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .26 .26 .28 .30 .39
Ratio of net investment income
to average net assets 1.13 1.35 1.66 2.24 2.38
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation -- -- -- -- .03
Portfolio Turnover Rate 2.64 2.40 3.53 10.92 11.95
- -------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 5,229,706 3,440,542 1,868,672 813,959 312,686
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Stock Index Fund (the "fund") is registered under the Investment Company
Act of 1940, as amended (the "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. Dreyfus is a direct
subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon
Financial Corporation. 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 Directors.
(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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
income, including, where applicable, amortization of discount on investments, is
recognized on the accrual basis.
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the fund' s Manager, subject to the seller's
agreement to repurchase and the fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(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 of 1986, as
amended (the "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 applicable provisions of the 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 $500 million
redemption credit facility (the "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, 1999, the fund did not borrow under the Facility.
NOTE 3--Management Fee, Index Management Fee and Other Transactions With
Affiliates:
(A) Pursuant to an Management Agreement with Dreyfus, the management 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 index-management 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, 1999 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 and extraordinary
expenses, exceed an annual rate of .40 of 1% 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 December 31, 1999, there
was no expense reimbursement pursuant to the undertaking.
(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, 1999, the fund was
charged $4,760 pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended December 31, 1999, the fund was charged $714 pursuant to the transfer
agency agreement.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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, 1999, amounted to $1,153,224,572 and $110,379,290, 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, 1999 are set
forth in the Statement of Financial Futures.
(B) At December 31, 1999, accumulated net unrealized appreciation on investments
and financial futures was $1,763,050,389, consisting of $1,942,416,593 gross
unrealized appreciation and $179,366,204 gross unrealized depreciation.
At December 31, 1999, 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).
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
Dreyfus Stock Index Fund
In our opinion, the accompanying statement of assets and liabilities, including
the statements of investments and financial futures, and the related statements
of operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Dreyfus Stock Index
Fund (the "Fund" ) at December 31, 1999, 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 accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund' s management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 4, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $.1320 per share as a
long-term capital gain distribution of the $.2700 per share paid on December 30,
1999 and also designates $.1110 per share as a long-term capital gain
distribution of the $.2410 per share paid on March 31, 1999.
The fund also designates 87.52% of the ordinary dividends paid during the fiscal
year ended December 31, 1999 as qualifying for the corporate dividends received
deduction.
For More Information
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 02109
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-554-4611 or 516-338-3300
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Attn: Institutional Servicing
(c) 2000 Dreyfus Service Corporation 763AR9912
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
12/31/98 44,862 43,213
12/31/99 54,298 52,116
*Source: Lipper Analytical Services, Inc.
