LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that the total return on the Peoples Index Fund
was 3.14% for the fiscal year ended October 31, 1994.*
This compares with the return of 3.86% for the Standard & Poor's 500
Composite Stock Price Index for the same period.** As you know, the Fund's
goal is to approximate, as closely as possible, the return from the S&P
500.*** The difference between the Fund's return and that of the S&P 500
Index results from several factors, including the use of futures contracts,
commissions associated with equity and futures trading and other transaction
costs, as well as other Fund expenses.
It has been a difficult year for the stock market, particularly since
February when the Federal Reserve Board began its series of six steps to
boost interest rates, as a means of heading off inflation.
Major indexes of consumer and producer prices have not as yet shown any
strong recurrence of inflation. However, bond prices were undermined by the
Fed's actions, and for most of the year, stock prices tended to follow the
lead of bonds.
Another influence on equity markets was the weakness of the U.S. dollar
in foreign exchange trading. For example, the dollar commanded 112.9 yen and
1.76 German marks at one point in the past year. The corresponding valuations
in mid-November, 1994, were 98.7 yen and 1.55 German marks.
At the same time, the U.S. economy has continued to expand with rising
industrial production, improved corporate profits, lower unemployment and
creation of more jobs.
A new Congress takes office in January, with a clear Republican majority.
How much of the legislative program set forth in the Republican "Contract
with America" will become law remains to be seen. Over the next few months,
the securities markets will be evaluating the impact of these political
changes on securities prices.
You may be sure that your stake in Peoples Index Fund will reflect the
market's adjustment to this new financial and political environment.
Sincerely,
The Dreyfus Corporation
Administrator
November 16, 1994
New York, N.Y.
*Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**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 stock market performance.
***"S&PRegistration Mark" and "S&P 500Registration Mark" are trademarks of
Standard & Poor's Corporation and have been licensed for use by the
Fund. The Fund is not sponsored, sold, endorsed or promoted by S&P.
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PEOPLES INDEX FUND, INC.
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A]
* Source: Lipper Analytical Services, Inc.
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (1/2/90)
OCTOBER 31, 1994 TO OCTOBER 31, 1994
------------------- --------------------------
<S> <C> <C>
3.14% 8.72%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Peoples Index Fund on
1/2/90 (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 12/31/89 is used as the beginning value on 1/2/90. All
dividends and capital gain distributions are reinvested.
The Fund's performance takes into account applicable fees and expenses. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted,
unmanaged index of overall stock market performance, which does not take into
account charges, fees and other expenses. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus
and elsewhere in this report.
SHARES COMMON STOCKS-97.5% VALUE
- ----------- ----------------
CAPITAL GOODS-16.6%
7,274 AMP $ 550,096
6,539 (a) Advanced Micro Devices 172,466
3,820 Alco Standard 217,740
19,664 Allied-Signal 680,866
8,031 (a) Amdahl 81,314
1,775 (a) Andrew 91,856
8,188 Apple Computer 353,619
3,248 Autodesk 112,056
5,809 Black & Decker 145,951
23,641 Boeing 1,037,249
976 Briggs & Stratton 67,832
13,611 Browning-Ferris Industries 432,149
17,883 (a) COMPAQ 717,555
14,138 Caterpillar 844,745
3,096 (a) Ceridian 80,496
2,294 Cincinnati Milacron 62,798
1,230 (a) Clark Equipment 86,254
24,968 Columbia Healthcare 1,039,293
11,275 Computer Associates International 559,522
3,512 (a) Computer Sciences 163,308
8,003 Cooper Industries 299,112
15,408 Corning 523,872
1,779 (a) Cray Research 34,023
7,741 (a) DSC Communications 238,036
2,582 (a) Data General 25,174
6,045 Deere & Co 433,729
9,635 (a) Digital Equipment 295,072
3,933 Dover 218,281
3,860 EG & G 62,242
2,316 E-Systems 96,114
5,711 Eastman Chemical 308,394
5,331 Eaton 279,211
15,611 Emerson Electric 948,368
5,741 Fluor 284,180
4,338 General Dynamics 183,822
119,070 General Electric 5,819,546
3,308 General Signal 119,088
2,410 Giddings & Lewis 37,355
3,560 Grainger (W.W.) 195,800
1,751 Harnischfeger Industries 43,775
2,748 Harris 117,821
17,707 Hewlett-Packard 1,730,859
9,057 Honeywell 292,088
7,843 Illinois Tool Works 351,955
7,380 Ingersoll-Rand 262,913
29,180 Intel 1,812,808
3,179 (a) Intergraph 27,419
40,550 International Business Machines 3,020,975
4,367 Lockheed 314,424
5,772 Loral 228,716
3,153 (a) Lotus Development 120,602
1,793 (a) M/A-Com 12,551
6,643 Martin Marietta 304,748
2,751 McDonnell Douglas 387,891
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
CAPITAL GOODS (CONTINUED)
7,043 Micron Technology $ 279,079
40,067 (a) Microsoft 2,524,221
2,269 Morrison Knudson 35,453
39,385 Motorola 2,318,792
8,523 (a) National Semiconductor 150,218
5,183 (a) Navistar International 68,027
17,529 Northern Telecommunications 633,235
3,438 Northrop 150,842
25,638 (a) Novell 474,303
19,910 (a) Oracle Systems 915,860
8,016 Pall 145,290
3,347 Parker-Hannifin 156,472
3,056 Perkin-Elmer 90,152
7,007 Pet 120,871
10,977 Pitney Bowes 370,474
3,005 Raychem 111,185
9,394 Raytheon 598,868
15,280 Rockwell International 532,890
9,114 (a) Santa Fe Pacific Gold 131,014
5,248 Scientific-Atlanta 113,488
6,540 (a) Sun Microsystems 214,185
7,955 (a) Tandem Computers 140,207
2,071 Tektronix 78,698
6,409 Texas Instruments 479,874
1,362 Thomas & Betts 97,043
2,121 Timken 73,970
5,261 Tyco Laboratories 253,843
11,911 (a) Unisys 126,554
3,011 (a) Varity 115,171
33,577 WMX Technologies 986,324
3,579 Western Atlas 164,634
24,639 Westinghouse Elec 348,026
7,331 Xerox 751,428
886 Zurn Industries 16,170
------------
40,694,990
------------
CONSUMER BASIC-15.7%
5,614 (a) ALZA 99,648
56,729 Abbott Laboratories 1,758,599
17,665 Albertson's 529,950
4,342 Allergan 114,520
14,016 American Brands 487,056
21,272 American Home Products 1,350,772
9,296 (a) Amgen 518,252
23,879 Archer-Daniels-Midland 683,536
3,596 Bard (C.R.) 88,102
4,162 Bausch & Lomb 135,265
19,673 Baxter International 511,498
5,027 Becton Dickinson & Co 237,526
5,749 (a) Beverly Enterprises 86,954
7,957 (a) Biomet 91,505
9,806 Borden 132,381
35,363 Bristol-Myers Squibb 2,064,315
5,379 Bruno's 51,773
10,331 CPC International 552,708
PEOPLES INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
CONSUMER BASIC (CONTINUED)
17,375 Campbell Soup $ 716,719
3,698 Clorox 199,692
10,206 Colgate-Palmolive 622,566
3,072 Community Psychiatric Centers 30,336
17,233 ConAgra 536,377
2,585 Fleming Cos. 62,040
10,976 General Mills 614,656
4,164 Giant Food 95,772
2,616 Great Atlantic & Pacific Tea 68,343
17,274 Heinz (H.J.) 641,297
6,068 Hershey Foods 286,713
44,709 Johnson & Johnson 2,442,229
15,567 Kellogg 914,561
7,625 (a) Kroger 199,203
20,391 Lilly (Eli) & Co 1,264,242
4,349 Manor Care 119,597
8,116 Medtronic 423,047
87,636 Merck & Co 3,132,987
1,686 Millipore 86,618
11,520 (a) National Medical Enterprises 167,040
21,237 Pfizer 1,574,193
60,545 Philip Morris Cos. 3,708,381
6,204 Pioneer Hi Bred International 207,834
4,452 Premark International 199,227
47,568 Procter & Gamble 2,973,000
4,661 Quaker Oats 348,992
6,973 Ralston Purina 296,353
3,826 (a) Ryan's Family Steak House 23,913
3,266 St. Jude Medical 121,659
33,238 Sara Lee 818,486
13,384 Schering-Plough 953,610
1,615 Shared Medical Systems 47,643
4,926 Supervalu 119,456
12,750 Sysco 317,156
14,164 UST 375,346
11,151 Unilever, N.V. 1,324,181
11,891 United Healthcare 627,250
11,128 U.S. Health Care Systems 525,798
3,962 U.S. Surgical 89,145
12,060 Upjohn 397,980
9,276 Warner-Lambert 707,295
5,140 Winn-Dixie Stores 271,778
8,081 Wrigley (Wm.) Jr 364,655
------------
38,511,726
------------
CONSUMER DISCRETIONARY-14.8%
1,991 Alberto-Culver, Cl. B Convertible 50,522
9,880 American Stores 267,995
18,396 Anheuser-Busch Cos. 933,597
4,968 Avon Products 314,226
3,395 (a) Bally Manufacturing 23,765
958 Bassett Furniture Industries 26,105
4,745 Brown-Forman 145,909
1,285 Brown Group 43,529
6,660 Brunswick 136,530
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
CONSUMER DISCRETIONARY (CONTINUED)
7,175 Charming Shoppes $ 52,019
24,596 Chrysler 1,199,055
89,625 Coca-Cola 4,503,656
5,754 Cooper Tire & Rubber 141,692
2,646 Coors (Adolph) 45,643
2,846 Cummins Engine 120,955
6,809 Dana 174,481
4,927 Dayton-Hudson 381,842
3,497 Delta Air Lines 182,281
7,896 Dillard Dept Stores, Cl. A 209,244
37,399 Disney (Walt) 1,472,586
23,144 Eastman Kodak 1,113,805
4,151 Echlin 127,643
70,136 Ford Motor 2,069,012
10,087 Gap 340,436
52,192 General Motors 2,061,584
8,665 Genuine Parts 313,023
15,390 Gillette 1,144,631
1,736 Goodrich (B.F.) 77,903
10,522 Goodyear Tire & Rubber 368,270
2,365 Handleman 26,606
5,394 Harcourt General 199,578
2,251 (a) Hartmarx 12,943
6,074 Hasbro 200,442
3,321 Hilton Hotels 201,336
7,742 International Flavors & Fragrances 339,680
3,195 Jostens 55,114
31,660 K mart 518,433
2,584 (a) King World Productions 91,732
24,871 Limited 457,005
5,518 Liz Claiborne 127,604
1,468 Longs Drug Stores 51,013
10,928 Lowe's Cos. 434,388
1,806 Luby's Cafeterias 41,764
8,661 Marriott International 253,334
12,365 Mattel 361,676
17,331 May Department Stores 652,079
7,384 Maytag 117,221
48,864 McDonald's 1,404,840
7,287 Melville 243,204
2,560 Mercantile Stores 116,480
5,138 NIKE, Cl. B 312,776
5,700 Nordstrom 280,725
981 Oshkosh B'Gosh 14,715
1,414 Outboard Marine 29,164
2,701 PACCAR 120,870
16,404 Penney (J.C.) 830,452
4,230 Pep Boys-Manny Moe & Jack 151,222
55,072 PepsiCo 1,927,520
3,263 Polaroid 109,718
15,173 (a) Price/Costco 238,975
7,102 (a) Promus Companies 210,397
5,739 Reebok International 228,843
5,927 Rite Aid 142,248
PEOPLES INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
CONSUMER DISCRETIONARY (CONTINUED)
11,258 Rubbermaid $ 309,595
2,797 Russell 83,910
928 SPX 16,124
4,005 Safety-Kleen 55,569
25,857 Seagram 798,335
2,846 (a) Shoney's 42,690
9,905 Southwest Airlines 234,006
1,291 Springs Industries 52,124
3,432 Stride Rite 47,619
5,061 TJX 79,711
2,006 TRINOVA 70,210
4,395 Tandy 194,479
19,983 (a) Toys R Us 769,345
4,231 (a) USAir Group 18,511
4,493 V.F. Corp 227,458
159,893 Wal-Mart Stores 3,757,485
8,600 Walgreen 356,900
7,054 Wendy's International 104,047
5,190 Whirlpool 269,880
9,158 Woolworth (F.W.) 141,949
3,088 (a) Zenith Electronics 42,846
------------
36,218,829
------------
ENERGY & RELATED-10.1%
6,515 Amerada Hess 324,121
34,561 Amoco 2,190,303
4,225 Ashland Oil 164,247
11,143 Atlantic Richfield 1,207,623
9,705 Baker Hughes 198,952
8,962 Burlington Resources 378,644
45,347 Chevron 2,040,615
7,229 Coastal 206,026
12,733 Dresser Industries 268,985
86,341 Exxon 5,428,690
2,474 Foster Wheeler 89,064
7,960 Halliburton 294,520
1,669 Helmerich & Payne 52,156
3,603 Kerr-McGee 176,997
2,269 Louisiana Land & Exploration 102,956
3,694 McDermott International 94,659
27,715 Mobil 2,383,490
21,684 Occidental Petroleum 474,338
6,768 Oryx Energy 98,136
3,221 Pennzoil 165,882
18,212 Phillips Petroleum 671,568
5,794 (a) Rowan Companies 44,179
37,239 Royal Dutch Petroleum 4,338,344
6,258 (a) Santa Fe Energy Resources 57,104
16,884 Schlumberger 991,935
7,417 Sun 238,271
18,077 Texaco 1,181,784
19,906 USX - Marathon 373,238
16,808 Unocal 491,634
------------
24,728,461
------------
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
FINANCE-9.8%
7,815 Aetna Life & Casualty $ 360,467
8,100 Ahmanson (H.F.) & Co 154,912
3,013 Alexander & Alexander Services 61,013
34,370 American Express 1,056,877
14,531 American General 399,602
22,046 American International Group 2,064,057
28,394 Banc One 819,877
7,447 Bank Of Boston 214,101
25,789 BankAmerica 1,121,821
5,493 Bankers Trust New York 366,658
6,737 Barnett Banks 279,585
3,644 Beneficial 142,571
7,298 Boatmen's Bancshares 216,203
5,033 CIGNA 331,549
12,886 Chase Manhattan 463,896
17,597 Chemical Banking 668,686
6,074 Chubb 424,421
27,050 Citicorp 1,291,637
3,844 Continental 58,141
9,989 CoreStates Financial 258,465
12,567 Federal Home Loan 684,902
6,485 First Chicago 317,765
5,589 First Fidelity Bancorp 251,505
5,633 First Interstate Bancorp 450,640
11,871 First Union 534,195
9,855 Fleet/Norstar Financial Group 337,534
5,747 General Re 643,664
4,249 Golden West Financial 165,711
9,208 Great Western Financial 164,593
6,540 Household International 229,718
3,469 Jefferson-Pilot 188,193
16,960 Key 485,480
6,559 Lincoln National 237,764
6,643 Mellon Bank 369,517
13,519 Merrill Lynch & Co 532,311
13,449 Morgan (J.P.) & Co 832,157
11,131 NBD Bancorp 342,278
10,388 National City 281,775
22,127 Norwest 542,112
16,313 PNC Financial 383,356
6,893 Providian 218,853
4,426 SAFECO 221,853
5,875 St. Paul Cos. 256,297
24,478 Sears, Roebuck & Co 1,211,661
8,137 Shawmut National 167,826
8,509 SunTrust Banks 430,768
5,071 Torchmark 186,993
4,849 Transamerica 238,207
22,603 Travelers 785,440
5,213 UNUM 239,146
5,904 USF & G 80,442
1,555 USLIFE 50,926
6,941 U.S. Bancorp 171,790
11,954 Wachovia 400,459
3,772 Wells Fargo 560,614
------------
23,950,984
------------
PEOPLES INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
GENERAL BUSINESS-7.2%
34,299 (a) Airtouch Communications $ 1,024,683
5,177 American Greetings 141,720
9,792 Automatic Data Processing 571,608
7,418 Block (H & R) 329,174
4,335 CBS 259,558
10,751 Capital Cities/ABC 893,677
6,668 Circuit City Stores 170,034
18,229 (a) cisco Systems 549,149
16,556 Comcast, Cl. A 271,104
11,847 Dean Witter Discovery 457,590
5,690 Deluxe 160,742
6,382 Dial 131,629
10,754 Donnelley (R.R.) & Sons 337,407
6,939 Dow Jones & Co 207,303
11,770 Dun & Bradstreet 690,016
3,906 (a) Federal Express 237,289
7,619 First Data 381,902
10,237 Gannett 491,376
2,101 Harland (John H) 44,909
8,112 ITT 715,884
5,256 Interpublic Group Cos. 173,448
3,690 Knight-Ridder 190,035
10,345 MBNA 276,729
5,097 Marsh & Mclennan 382,275
3,450 McGraw-Hill 257,887
1,010 Meredith 49,490
29,413 Minnesota Mining & Manufacturing 1,628,745
10,221 Morton International 291,299
2,106 (a) National Education 10,267
3,393 National Service Industries 90,763
19,135 NationsBank 947,183
7,267 New York Times 164,416
4,303 (a) Rollins Environmental Services 25,280
7,313 Salomon 287,035
5,963 Service Corporation International 158,765
4,520 TRW 322,050
40,151 (a) Tele-Communications, Cl. A 908,416
3,895 Teledyne 66,702
6,120 Textron 312,120
26,362 Time Warner 935,851
8,935 Times Mirror 291,504
4,712 Tribune 247,969
8,733 United Technologies 550,179
24,238 (a) Viacom, Cl. B 951,342
7,320 Whitman 120,780
------------
17,707,284
------------
MANUFACTURING-6.8%
2,912 ASARCO 91,364
7,862 Air Products & Chemicals 375,410
15,634 Alcan Aluminium 418,209
6,163 Aluminum Co. Of America 525,396
24,308 American Barrick Resources 580,353
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
MANUFACTURING (CONTINUED)
7,181 (a) Armco $ 51,165
3,889 Avery Dennison 130,768
2,103 Ball 59,410
3,569 Bemis 88,333
7,586 (a) Bethlehem Steel 144,134
6,244 (a) Crown Cork & Seal 242,735
6,397 Cyprus Amax Minerals 170,320
19,183 Dow Chemical 1,409,950
47,287 DuPont (E.I.) de Nemours 2,819,487
1,416 Eastern Enterprises 36,816
7,824 Echo Bay Mines 95,844
4,365 Ecolab 93,302
6,749 Engelhard 158,601
2,544 (a) FMC 155,184
2,920 Federal Paper Board 87,600
1,443 First Mississippi 30,303
6,557 Grace (W.R.) & Co. 259,821
4,933 Great Lakes Chemical 289,814
2,777 Hercules 324,215
9,517 Homestake Mining 178,444
8,097 Inco 243,922
3,131 (a) Inland Steel Industries 111,933
8,697 International Paper 647,926
5,659 James River 129,450
11,220 Kimberly-Clark 577,830
5,328 Mallinckrodt Group 161,838
9,314 (a) Maxus Energy 44,241
4,112 Mead 204,058
8,206 Monsanto 624,682
6,924 Moore 125,498
668 NACCO Industries 39,412
4,820 Nalco Chemical 155,445
6,020 Newmont Mining 249,078
6,099 Nucor 376,613
2,984 Ogden 64,156
14,801 PPG Industries 603,141
4,933 Phelps Dodge 302,763
2,872 Pittston 79,339
16,610 Placer Dome 359,191
9,432 Praxair 218,115
4,320 Reynolds Metals 239,220
4,731 Rohm & Haas 285,634
5,171 Scott Paper 341,932
3,462 Sigma Aldrich 120,305
6,218 (a) Stone Container 104,152
3,841 Temple-Inland 181,487
5,284 USX- US Steel 198,150
4,821 Union Camp 228,998
10,482 Union Carbide 347,216
4,631 Westvaco 162,085
7,255 Williams Cos. 210,395
6,287 Worthington Industries 139,886
------------
16,695,069
------------
PEOPLES INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
SHELTER-2.5%
2,568 Armstrong World Industries $ 106,572
2,656 Boise Cascade 70,384
2,105 Centex 46,836
6,507 Champion International 240,759
2,132 Crane 57,830
19,045 Federal National
Mortgage Association 1,447,420
3,187 Fleetwood Enterprises 73,301
6,248 Georgia-Pacific 461,571
31,373 Home Depot 1,427,471
2,811 Johnson Controls 139,847
2,257 Kaufman & Broad Home 29,341
7,612 Louisiana-Pacific 233,118
10,889 Masco 258,614
10,952 Newell 229,992
3,052 (a) Owens Corning Fiberglas 98,809
2,061 Potlatch 78,833
1,873 Pulte 38,631
5,975 Sherwin-Williams 194,934
733 Skyline 14,477
2,983 Snap-on Tools 94,710
3,113 Stanley Works 123,742
14,287 Weyerhaeuser 560,765
------------
6,027,957
------------
TRANSPORTATION-1.3%
5,262 (a) AMR 290,068
6,234 Burlington Northern 310,921
7,235 CSX 524,537
5,434 Conrail 295,474
2,546 (a) Consolidated Freightways 56,967
9,453 Norfolk Southern 595,539
2,764 Roadway Services 158,239
5,433 Ryder System 127,675
13,214 (a) Santa Fe Pacific 203,165
14,300 Union Pacific 698,912
2,007 Yellow Freight Systems 39,137
------------
3,300,634
------------
UTILITIES-12.7%
12,829 American Electric Power 410,528
109,148 American Telephone & Telegraph 6,003,140
38,233 Ameritech 1,543,657
10,238 Baltimore Gas & Electric 238,033
30,296 Bell Atlantic 1,586,753
34,481 BellSouth 1,836,113
11,199 Carolina Power & Light 295,374
13,204 Central & South West 297,090
10,225 Cinergy 236,458
3,481 (a) Columbia Gas System 97,033
16,283 Consolidated Edison 405,040
6,422 Consolidated Natural Gas 232,798
10,233 Detroit Edison 269,895
11,768 Dominion Resources 436,887
SHARES COMMON STOCKS (CONTINUED) VALUE
- ----------- ----------------
UTILITIES (CONTINUED)
14,257 Duke Power $ 564,934
17,436 Enron 564,491
4,595 Enserch 65,479
15,863 Entergy 370,798
13,209 FPl Group 437,548
66,487 GTE 2,044,475
9,103 Houston Industries 317,467
45,075 MCI Communications 1,036,725
3,633 NICOR 88,554
29,290 NYNEX 1,149,633
9,986 Niagara Mohawk Power 137,308
8,522 Noram Energy 51,132
4,678 Northern States Power 207,586
1,850 ONEOK 32,606
10,595 Ohio Edison 203,954
5,722 Pacific Enterprises 123,023
29,938 Pacific Gas & Electric 673,605
29,498 Pacific Telesis Group 932,874
19,583 PacifiCorp 345,150
8,392 Panhandle Eastern 197,212
2,377 Peoples Energy 67,150
15,397 Philadelphia Electric 394,548
17,021 Public Service Enterprise Group 446,801
31,085 SCEcorp 431,304
6,024 Sonat 195,780
45,128 Southern 891,278
41,878 Southwestern Bell 1,753,641
24,055 Sprint 784,794
11,860 Tenneco 524,805
15,676 Texas Utilities 511,430
2,901 Transco Energy 41,702
14,891 Unicom 322,018
7,075 Union Electric 253,816
31,627 U.S. West 1,189,966
------------
31,242,386
------------
TOTAL COMMON STOCKS
(cost $215,291,301) $239,078,320
============
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS-3.0%
U.S. TREASURY BILLS:
$ 400,000 (b) 4.59%, 12/22/94 $ 395,167
5,088,000 4.86%, 1/5/95 5,025,926
1,883,000 5%, 1/26/95 1,858,990
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $7,280,083) $ 7,280,083
============
TOTAL INVESTMENTS
(cost $222,571,384) 100.5% $246,358,403
====== ============
LIABILITIES, LESS CASH
AND RECEIVABLES (.5%) $ (1,156,336)
====== ============
NET ASSETS 100.0% $245,202,067
====== ============
See notes to financial statements.
PEOPLES INDEX FUND, INC.
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Wholly held by the custodian in a segregrated account as collateral
for open financial futures positions.
<TABLE>
STATEMENT OF FINANCIAL FUTURES OCTOBER 31, 1994
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES LONG; CONTRACTS BY CONTRACTS EXPIRATION AT 10/31/94
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
Standard & Poor's 500........................ 19 $4,488,275 December '94 $53,900
===========
</TABLE>
See notes to financial statements.
<TABLE>
PEOPLES INDEX FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $222,571,384)_see statement..................................... $246,358,403
Cash.................................................................... 4,980
Dividends and interest receivable....................................... 497,722
Receivable for subscriptions to Common Stock............................ 146
Prepaid expenses ....................................................... 38,572
--------------
246,899,823
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 126,963
Due to Wells Fargo Nikko Investment Advisors............................ 63,482
Due to Wells Fargo Institutional Trust Company, N. A.................... 13,433
Payable for investment securities purchased............................. 1,134,110
Payable for Common Stock redeemed....................................... 136,207
Payable for futures variation margin_Note 3(a).......................... 44,500
Accrued expenses........................................................ 179,061 1,697,756
------------ --------------
NET ASSETS ................................................................ $245,202,067
==============
REPRESENTED BY:
Paid-in capital......................................................... $199,783,056
Accumulated undistributed investment income_net......................... 4,833,921
Accumulated undistributed net realized gain on investments.............. 16,744,171
Accumulated net unrealized appreciation on investments (including $53,900
gross unrealized appreciation on financial futures)_Note 3(b)......... 23,840,919
--------------
NET ASSETS at value applicable to 14,938,169 shares outstanding
(200 million shares of $.001 par value Common Stock authorized)......... $245,202,067
==============
NET ASSET VALUE, offering and redemption price per share
($245,202,067 / 14,938,169 shares)...................................... $16.41
=======
See notes to financial statements.
PEOPLES INDEX FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1994
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $38,176 foreign taxes withheld at source)...... $ 7,488,195
Interest.............................................................. 388,218
-------------
TOTAL INCOME.................................................... $ 7,876,413
EXPENSES:
Index management fee_Note 2(a)........................................ 274,298
Administration fee_Note 2(a).......................................... 548,596
Shareholder servicing costs_Note 2(b)................................. 743,357
Professional fees..................................................... 46,835
Registration fees..................................................... 40,608
Custodian fees_Note 2(a).............................................. 38,774
Prospectus and shareholders' reports.................................. 27,379
Directors' fees and expenses_Note 2(c)................................ 18,621
Miscellaneous......................................................... 29,156
-------------
1,767,624
Less_reduction in index management fee and administration fee due to
undertakings and reduction in expenses due to redemption fee_Note 2(a,d) 91,694
-------------
TOTAL EXPENSES.................................................. 1,675,930
--------------
INVESTMENT INCOME--NET.......................................... 6,200,483
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments_Note 3(a).............................. $19,083,937
Net realized (loss) on financial futures_Note 3(a)...................... (372,704)
-------------
NET REALIZED GAIN............................................... 18,711,233
Net unrealized (depreciation) on investments [including ($34,325)
net unrealized (depreciation) on financial futures]_Note 3(b)......... (18,291,976)
--------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 419,257
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 6,619,740
==============
See notes to financial statements.
</TABLE>
<TABLE>
PEOPLES INDEX FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
--------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 4,296,279 $ 6,200,483
Net realized gain on investments........................................ 1,859,821 18,711,233
Net unrealized appreciation (depreciation) on investments for the year.. 17,964,279 (18,291,976)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 24,120,379 6,619,740
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................... (2,523,142) (5,373,357)
Net realized gain on investments........................................ (220,775) (11,440,051)
-------------- --------------
TOTAL DIVIDENDS....................................................... (2,743,917) (16,813,408)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 105,146,252 153,302,049
Proceeds from acquisition of Dreyfus Index Fund_Note 1.................. 128,791,946 ___
Dividends reinvested.................................................... 2,296,866 13,583,900
Cost of shares redeemed................................................. (68,806,372) (192,893,713)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 167,428,692 (26,007,764)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 188,805,154 (36,201,432)
NET ASSETS:
Beginning of year....................................................... 92,598,345 281,403,499
-------------- --------------
End of year (including undistributed investment income_net:
$4,006,795 in 1993 and $4,833,921 in 1994)............................ $281,403,499 $245,202,067
============== ==============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 6,534,448 9,481,323
Shares issued in connection with acquisition of Dreyfus Index Fund_Note 1 8,156,551 ___
Shares issued for dividends reinvested.................................. 148,857 852,724
Shares redeemed......................................................... (4,277,025) (12,068,037)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 10,562,831 (1,733,990)
============== ==============
See notes to financial statements.
</TABLE>
<TABLE>
PEOPLES INDEX FUND, INC.
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 year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED OCTOBER 31,
----------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $12.50 $10.86 $14.16 $15.16 $16.88
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .17 .34 .41 .30 .39
Net realized and unrealized gain (loss) on investments (1.81) 3.18 .97 1.86 .11
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... (1.64) 3.52 1.38 2.16 .50
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... -_ (.22) (.38) (.40) (.31)
Dividends from net realized gain on investments -_ -_ -_ (.04) (.66)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ -_ (.22) (.38) (.44) (.97)
------- ------- ------- ------- -------
Net asset value, end of year................. $10.86 $14.16 $15.16 $16.88 $16.41
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (13.12%)(2) 32.85% 9.90% 14.49% 3.14%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... -_ -_ -_ .39% .61%
Ratio of net investment income to average net assets 3.46%(2) 3.45% 3.04% 2.36% 2.26%
Decrease reflected in above expense ratios due to
undertakings by WFNIA and Dreyfus.......... 1.42%(2) .78% .65% .14% .03%
Decrease reflected in above expense ratios due to
redemption fee............................. .08%(2) .10% -_ -_ -_
Portfolio Turnover Rate...................... 1.21%(2) .69% 3.10% 3.77% 18.81%
Net Assets, end of year (000's Omitted)...... $29,266 $69,211 $92,598 $281,403 $245,202
- -------------------------
(1) From January 2, 1990 (commencement of operations) to October 31, 1990.
(2) Not annualized.
See notes to financial statements.
</TABLE>
PEOPLES INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Wells Fargo
Nikko Investment Advisors ("WFNIA") serves as the Fund's index manager. Wells
Fargo Investment Advisors ("WFIA"), the predecessor index manager of the
Fund, and The Nikko Securities Co., Ltd. and an affiliate ("Nikko") each own
50% of WFNIA. Wells Fargo Institutional Trust Company, N.A. ("WFITC"), an
affiliate of WFNIA, is the custodian of the Fund's investments. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's administrator. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
On November 18, 1992, the Board of Directors approved an Agreement and
Plan of Reorganization providing for the transfer of all or substantially all
of the assets and liabilities of Dreyfus Index Fund to the Fund in a tax free
exchange for shares of Common Stock of the Fund at net asset value and the
assumption of stated liabilities (the "Exchange"). The Exchange was approved
by Dreyfus Index Fund shareholders on April 30, 1993, and became effective
after the close of business on May 7, 1993, at which time the Fund issued
8,156,551 shares valued at $15.79 per share to Dreyfus Index Fund in exchange
for 7,041,659 shares of Dreyfus Index Fund valued at $18.29 per share,
representing net assets of $128,791,946, including $14,201,004 of unrealized
appreciation, $274,566 of undistributed income and undistributed net realized
gains of $7,656,452. The combined net assets immediately after the Exchange
was $253,203,509.
(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. Short-term
investments are carried at amortized cost, which approximates value.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid annually.
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.
PEOPLES INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2--MANAGEMENT FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) Fees paid by the Fund pursuant to the provisions of an Index
Management Agreement with WFNIA and an Administration Agreement with Dreyfus
are payable monthly. WFNIA and Dreyfus receive annual fees of .10 of 1% and
.20 of 1%, respectively, of the average daily value of the Fund's net assets.
The agreements further provide that if the aggregate expenses of the Fund,
exclusive of interest, taxes, brokerage and extraordinary expenses, exceed
the expense limitation of any state having jurisdiction over the Fund, the
Fund may deduct from the fees to be paid to each of WFNIA and Dreyfus, or
WFNIA and Dreyfus will bear, in the same proportion as in the agreements, the
amount of such excess to the extent required by state law. The most stringent
state expense limitation applicable to the Fund presently requires
reimbursement of expenses in any full fiscal year that such expenses exceed 2
1/2% of the first $30 million, 2% of the next $70 million, and 11/2% of the
excess over $100 million of the average value of the Fund's net assets in
accordance with California "blue sky" regulations. However, WFNIA and Dreyfus
had undertaken from November 1, 1993 through November 30, 1993 to reduce the
index management fee and the administration fee to the extent that the Fund's
aggregate expenses (excluding certain expenses as described above) exceeded
certain specified annual percentages of the Fund's average daily net assets.
Pursuant to the undertakings, WFNIA and Dreyfus reduced the index management
fee and the administration fee for the year ended October 31, 1994, $30,232
and $60,463, respectively.
In addition, WFITC earned $38,774 for custodian services provided to the
Fund.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
the Dreyfus Service Corporation an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the year ended
October 31, 1994, the Fund was charged an aggregate of $602,702 pursuant to
the Shareholder Services Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $2,500 and an attendance fee of $500 per meeting.
(D) A 1% redemption fee is charged on certain redemptions of Fund shares
(including redemptions through use of the Exchange Privilege) where the
shares being redeemed were issued subsequent to a specified effective date
and the redemption or exchange occurs within a six-month period following the
date of issuance. During the period ended October 31, 1994, redemption fees
amounted to $999.
NOTE 3--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment
securities, other than short-term securities, for the year ended October 31,
1994 amounted to $49,479,267 and $85,587,749, respectively.
PEOPLES INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund is engaged in trading financial futures contracts. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments (see the Statement of Financial Futures). Investments
in financial futures require the Fund to "mark to market" on a daily basis,
which reflects the change in the market value of the contract at the close of
each day's trading. Accordingly, variation margin payments are made or
received to reflect daily unrealized gains or losses. When the contracts are
closed, the Fund recognizes a realized gain or loss. These investments
require initial margin deposits with a custodian, which consist of cash or
cash equivalents, up to approximately 10% of the contract amount. The amount
of these deposits is determined by the exchange or Board of Trade on which
the contract is traded and is subject to change. Contracts open as of October
31, 1994 and their related unrealized market appreciation are set forth in
the Statement of Financial Futures.
(B) At October 31, 1994, accumulated net unrealized appreciation on
investments was $23,840,919, consisting of $33,425,620 gross unrealized
appreciation and $9,584,701 gross unrealized depreciation.
At October 31, 1994, 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).
PEOPLES INDEX FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
PEOPLES INDEX FUND, INC.:
We have audited the accompanying statement of assets and liabilities of
Peoples Index Fund, Inc. (the Fund), including the statements of investments
and financial futures, as of October 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and the financial
highlights for each of the four years in the period then ended and for the
period from January 2, 1990 (commencement of operations) to October 31, 1990.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1994, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Peoples Index Fund, Inc. as of October 31, 1994, the results of
its operations, the changes in its net assets, and the financial highlights
for the periods referred to above, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
December 16, 1994
PEOPLES INDEX FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates $.645 per share as a
long-term capital gain distribution of the $.97 per share paid on December
31, 1993.
(Dreyfus `D' Logo)
PEOPLES INDEX FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
INDEX FUND MANAGER
Wells Fargo Nikko
Investment Advisors
45 Fremont Street
San Francisco, CA 94105
ADMINISTRATOR
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Wells Fargo Institutional Trust Company, N.A.
45 Fremont Street
San Francisco, CA 94105
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 078AR9410
(Dreyfus Logo)
Peoples Index
Fund, Inc.
Annual Report
October 31, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PEOPLES INDEX FUND, INC. AND THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
_______________________________________________
| | | STANDARD |
| | | & POOR'S 500 |
| PERIOD | PEOPLES |COMPOSITE STOCK |
| | INDEX FUND | PRICE INDEX * |
|-----------|-----------------|----------------|
| 1/2/90 | 10,000 | 10,000 |
| 10/31/90 | 8,688 | 8,855 |
| 10/31/91 | 11,542 | 11,814 |
| 10/31/92 | 12,684 | 12,990 |
| 10/31/93 | 14,521 | 14,927 |
| 10/31/94 | 14,976 | 15,502 |
|----------------------------------------------|
*Source: Lipper Analytical Services, Inc.
