<PAGE>
Dreyfus
Peoples
Index Fund, Inc.
Annual Report
October 31, 1995
<PAGE>
Peoples Index Fund, Inc.
- ---------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
Thanks to a generally rising stock market during the past 12
months, the Peoples Index Fund (now named the Dreyfus S&P 500 Index Fund)
provided a particularly rewarding return for the fiscal year ended October
31, 1995.
Total return for the Fund was 25.68%.* This compares with a total
return for the same period of 26.41% for the Standard & Poor's 500 Composite
Stock Price Index, on which the Fund is based.** The difference is accounted
for by various factors, including commission expenses, other transaction
costs and general Fund expenses.
Economic Environment
The much-desired soft landing for the U.S. economy that the Federal
Reserve Board has been striving to attain appears to have occurred. This is
the result of more than a year of moves by the Fed to tighten interest rates,
followed by a token loosening of the reins last summer.
Now that some steam has been let out of the economic boiler, the
central bank must concern itself with the possibility that the economy might
slow down more than would be desirable. However, the latest economic
statistics do not contain convincing evidence of that happening. The housing
industry is doing well. Industrial orders continue to expand and gross
domestic product keeps on growing, albeit at a reduced rate.
In the meantime, the rate of inflation appears to be under firm
control. Consumer prices have advanced only at a very moderate pace, and
average wages have barely inched ahead. Unemployment is not getting out of
hand, and hovers near the so-called full employment level.
Retail spending has simmered down, in part because consumers are
carrying large debit balances in mortgage and credit card debts. To what
extent this will affect holiday shopping remains to be seen. The industrial
sector of the economy, however, appears to be forging ahead.
Market Environment
As your Fund reached the end of its fiscal year, October 31, 1995,
stocks were not far below the record levels they had reached earlier in the
fall.
Among the factors accounting for this market strength were good
corporate profits and low interest rates. Third quarter profit reports from
leading corporations, while not universally favorable, were better than
earlier quarters. The extensive lean and mean corporate reorganizations of
the past few years appear to be paying off. Even though the pricing
environment for most corporate products is extremely competitive,
manufacturers and service providers appear able to squeeze out improved
profits.
How long that continuing improvement will last is an open question.
Many economists think that profit levels may flatten out over the coming
months. The recent record on that score, however, has been encouraging.
Interest rates also have buoyed stock prices and sustained the bond
market. As the cost of borrowing has steadily decreased, many corporations
have benefitted. This advantage has been particularly notable with public
utilities.
<PAGE>
Another factor in market strength has been the relentless advance
of technology, which has virtually forced corporations -- and now individual
households as well -- to reequip in order to keep up with technical progress.
The obvious result has been seen in record prices commanded during the year
by high technology stocks. While some disillusionment may set in, the market
clearly takes a very optimistic view of the long-range outlook for these
companies.
In addition, all equities have been favorably affected by the very
large inflow of investment money, on a regular basis, from 401(k) and other
retirement plans. To be sure, money managers could at some point turn off
the spigot, and divert this cash flow into bonds or money market instruments.
During the past year, however, equity purchases by pension funds and other
retirement investors have provided a supportive background for stock prices.
The horizon isn't without its clouds. Perhaps the most oppressive
has been the wrangling between Congress and the White House over how to
reduce Government spending and cut the burden of the Government's perennial
deficit. Hopefully, this impasse will be settled soon. In the meantime, the
uncertainties in Washington have been a source of worry to investors.
The fading value of the U.S. dollar has also been a question mark.
Yet, after hitting a low last spring, the dollar has gradually recovered some
lost ground. This dollar rebound reflects weakness in the economies of
Western Europe and Japan, but also the strengthening of economic activity
here at home.
Sincerely,
The Dreyfus Corporation
Administrator
November 15, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of stock market performance.
<PAGE>
Peoples Index Fund, Inc. October 31, 1995
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
PEOPLES INDEX FUND, INC. AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[CHART]
Standard & Poor's 500
Peoples Index Fund Composite Stock Price Index *
1/2/90
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
10/31/95 18,823 19,596
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
- ----------------------------------------------------------------------------
One Year Ended Five Years Ended From Inception (1/2/90)
October 31, 1995 October 31, 1995 to October 31, 1995
---------------- ---------------- ----------------------
25.68% 16.69% 11.46%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Peoples Index Fund,
Inc. on 1/2/90 (Inception Date) to a $10,000 investment made in the Standard
and 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 shown in the line graph takes into account all
applicable fees and expenses. The Standard and 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 or 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.
<PAGE>
<TABLE>
<CAPTION>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------------
Statement of Investments October 31, 1995
Shares Common Stocks--98.7% Value
----------- ------------
<S> <C> <C>
Capital Goods--18.8%
16,778 AMP .............................. $ ,658,537
7,964 Advanced Micro Devices ........... 190,141
4,320 Alco Standard .................... 382,320
21,864 Allied-Signal .................... 929,220
9,131(a) Amdahl ........................... 84,462
2,962(a) Andrew ........................... 125,145
9,288 Apple Computer ................... 337,271
13,630(a) Applied Materials ................ 683,204
3,648 Autodesk ......................... 124,032
6,609 Black & Decker ................... 223,880
26,341 Boeing ........................... 1,728,628
2,352 Briggs & Stratton ................ 94,962
16,380 Browning-Ferris Industries ....... 477,068
13,451(a) CUC International ................ 465,741
15,338 Caterpillar ...................... 860,845
3,496(a) Ceridian ......................... 152,076
2,594 Cincinnati Milacron .............. 66,796
34,185 Columbia/HCA Healthcare .......... 1,679,338
20,383(a) Compaq Computer .................. 1,136,352
18,462 Computer Associates
International .................. 1,015,410
4,312(a) Computer Sciences ................ 288,365
8,403 Cooper Industries ................ 283,601
17,708 Corning .......................... 462,622
1,879(a) Cray Research .................... 38,989
8,841(a) DSC Communications ............... 327,117
12,176 Darden Restaurants ............... 138,502
2,782(a) Data General ..................... 31,993
6,645 Deere & Co. ...................... 593,897
11,335(a) Digital Equipment ................ 613,507
8,766 Dover ............................ 346,257
3,960 EG & G ........................... 73,755
6,311 Eastman Chemical ................. 375,505
6,031 Eaton ............................ 309,089
17,308 Emerson Electric ................. 1,233,195
6,341 Fluor ............................ 358,267
15,631(a) Freeport McMoran Copper .......... 355,605
4,838 General Dynamics ................. 267,904
130,495 General Electric ................. 8,253,809
3,608 General Signal ................... 115,005
2,610 Giddings & Lewis ................. 42,086
3,960 Grainger (W.W.) .................. 247,500
3,703 Harnischfeger Industries ......... 116,645
2,948 Harris ........................... 171,353
39,414 Hewlett-Packard .................. 3,650,722
9,757 Honeywell ........................ 409,794
9,043 Illinois Tool Works .............. 525,624
8,180 Ingersoll-Rand ................... 289,368
63,460 Intel ............................ 4,434,268
Capital Goods (continued)
3,579(a) Intergraph ....................... $ 43,395
43,779 International Business Machines .. 4,257,508
15,462 Lockheed Martin .................. 1,053,349
13,244 Loral ............................ 392,354
8,753 McDonnell Douglas ................ 715,558
15,886 Micron Technology ................ 1,121,949
45,138(a) Microsoft ........................ 4,513,800
2,469 Morrison Knudsen ................. 16,049
45,409 Motorola ......................... 2,979,966
9,523(a) National Semiconductor ........... 232,123
5,783(a) Navistar International ........... 59,276
19,529 Northern Telecommunications ...... 703,044
3,838 Northrop ......................... 219,726
28,438(a) Novell ........................... 469,227
33,365(a) Oracle Systems ................... 1,455,548
8,816 Pall ............................. 214,890
5,670 Parker-Hannifin .................. 191,363
3,256 Perkin-Elmer ..................... 114,367
11,677 Pitney Bowes ..................... 509,409
3,405 Raychem .......................... 157,907
18,862 Raytheon ......................... 822,855
16,780 Rockwell International ........... 746,710
10,114 Santa Fe Pacific Gold ............ 99,876
5,948 Scientific-Atlanta ............... 73,607
12,218(a) Silicon Graphics ................. 406,249
7,340(a) Sun Microsystems ................. 572,520
8,955(a) Tandem Computers ................. 100,744
2,571 Tektronix ........................ 152,332
6,797(a) Tellabs .......................... 231,098
14,518 Texas Instruments ................ 990,854
1,562 Thomas & Betts ................... 100,944
8,635 Times Mirror Company New ......... 250,414
2,421 Timken ........................... 97,444
5,861 Tyco Laboratories ................ 356,055
13,211(a) Unisys ........................... 74,311
3,111(a) Varity ........................... 112,773
37,377 WMX Technologies ................. 1,051,227
4,079(a) Western Atlas .................... 178,965
30,139 Westinghouse Electric ............ 425,712
8,331 Xerox ............................ 1,080,946
886 Zurn Industries .................. 22,149
------------
63,138,365
------------
Consumer Basic--16.9%
6,314(a) Alza ............................. 138,908
61,129 Abbott Laboratories .............. 2,429,878
19,565 Albertson's ...................... 650,536
4,942 Allergan ......................... 145,171
14,575 American Brands .................. 624,903
23,872 American Home Products ........... 2,115,656
<PAGE>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
----------- ------------
Consumer Basic (continued)
20,392 Amgen ............................ $ 978,816
41,653 Archer-Daniels-Midland ........... 671,655
4,296 Bard (C.R.) ...................... 121,362
4,462 Bausch & Lomb .................... 154,497
21,373 Baxter International ............. 825,532
5,127 Becton Dickinson & Co. ........... 333,255
8,155(a) Beverly Enterprises .............. 95,821
8,857(a) Biomet ........................... 147,248
11,692(a) Boston Scientific ................ 492,526
39,063 Bristol-Myers Squibb ............. 2,978,554
11,231 CPC International ................ 745,458
19,275 Campbell Soup .................... 1,009,528
4,098 Clorox ........................... 294,032
11,206 Colgate-Palmolive ................ 776,016
3,272 Community Psychiatric
Centers ........................ 35,583
18,933 ConAgra .......................... 731,287
2,885 Fleming Cos. ..................... 65,273
12,176 General Mills .................... 698,598
4,564 Giant Food ....................... 146,619
2,916 Great Atlantic & Pacific Tea ..... 59,049
18,774 Heinz (H.J.) ..................... 872,991
5,992 Hershey Foods .................... 358,022
49,709 Johnson & Johnson ................ 4,051,284
16,867 Kellogg .......................... 1,218,641
9,425(a) Kroger ........................... 314,559
21,239 Lilly (Eli) & Co. ................ 2,052,218
4,849 Manor Care ....................... 158,805
17,832 Medtronic ........................ 1,029,798
95,340 Merck & Co ....................... 5,482,050
3,472 Millipore ........................ 122,822
48,622 Pfizer ........................... 2,789,687
64,750 Philip Morris Cos ................ 5,471,375
6,504 Pioneer Hi Bred International .... 322,761
4,852 Premark International ............ 224,405
52,968 Procter & Gamble ................. 4,290,408
10,322 Quaker Oats ...................... 352,238
8,073 Ralston-Purina Group ............. 479,334
4,026(a) Ryan's Family Steak Houses ....... 31,202
3,566(a) St Jude Medical .................. 189,890
36,938 Sara Lee ......................... 1,085,054
28,668 Schering-Plough .................. 1,537,322
1,815 Shared Medical Systems ........... 70,104
5,226 Super Valu Stores ................ 160,700
14,050 Sysco ............................ 426,769
15,373(a) Tenet Healthcare ................. 274,792
15,064 UST .............................. 451,920
12,351 Unilever, N.V. ................... 1,617,981
Consumer Basic (continued)
13,391 United Healthcare ................ $ 711,397
11,928 U.S. Health Care Systems ......... 459,228
4,362 U.S. Surgical Corp. .............. 106,868
17,414 Upjohn ........................... 883,760
10,376 Warner-Lambert ................... 883,256
5,840 Winn-Dixie Stores ................ 379,599
8,981 Wrigley (Wm.) Jr. ................ 417,616
------------
56,744,617
------------
Consumer Discretionary--13.8%
2,091 Alberto-Culver, Cl. B
Convertible .................... 65,605
11,380 American Stores .................. 339,978
19,696 Anheuser-Busch Cos. .............. 1,299,936
5,268 Avon Products .................... 374,687
3,495(a) Bally Entertainment .............. 38,445
1,058 Bassett Furniture Industries ..... 21,292
5,345 Brown-Forman ..................... 203,778
1,385 Brown Group ...................... 19,044
7,360 Brunswick ........................ 143,520
7,975 Charming Shoppes ................. 22,928
29,431 Chrysler ......................... 1,519,375
97,220 Coca-Cola ........................ 6,987,688
6,454 Cooper Tire & Rubber ............. 149,249
2,946 Coors (Adolph) ................... 52,660
3,146 Cummins Engine ................... 110,503
7,809 Dana ............................. 200,106
5,527 Dayton-Hudson .................... 379,981
3,897 Delta Air Lines .................. 255,741
8,696 Dillard Department
Stores, CI. A .................. 235,879
40,109 Disney (Walt) .................... 2,311,281
26,344 Eastman Kodak .................... 1,649,793
4,551 Echlin ........................... 162,698
82,812 Ford Motor ....................... 2,380,845
5,885(a) Fruit of the Loom ................ 102,252
11,087 Gap .............................. 436,551
57,592 General Motors ................... 2,519,650
9,465 Genuine Parts .................... 375,051
34,180 Gillette ......................... 1,653,458
2,036 Goodrich (B.F.) .................. 134,122
11,722 Goodyear Tire & Rubber............ 445,436
2,465 Handleman ........................ 19,104
5,594 Harcourt General ................. 221,662
6,774 Hasbro ........................... 206,607
3,721 Hilton Hotels .................... 249,307
8,542 International Flavors &
Fragrances ..................... 412,152
<PAGE>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
----------- ------------
Consumer Discretionary (continued)
3,395 Jostens .......................... $ 76,812
35,360 K mart ........................... 287,300
2,784(a) King World Productions ........... 97,092
27,471 Limited .......................... 504,780
5,818 Liz Claiborne .................... 165,086
4,494 Loews ............................ 658,933
1,568 Longs Drug Stores ................ 62,720
12,328 Lowe's Cos. ...................... 332,856
1,806 Luby's Cafeterias ................ 37,475
9,661 Marriott International............ 356,249
17,031 Mattel ........................... 489,641
19,131 May Department Stores ............ 750,892
8,284 Maytag ........................... 157,396
53,564 McDonald's ....................... 2,196,124
8,087 Melville ......................... 258,784
2,860 Mercantile Stores ................ 128,343
11,076 Nike, Cl. B ...................... 628,563
6,300 Nordstrom ........................ 233,494
1,514 Outboard Marine .................. 31,416
3,001 PACCAR ........................... 125,292
17,504 Penney (J.C.) .................... 737,356
4,730 Pep Boys-Manny Moe & Jack ........ 103,469
60,672 PepsiCo .......................... 3,200,448
3,463 Polaroid ......................... 148,043
14,973(a) Price/Costco ..................... 254,541
7,902(a) Promus Companies ................. 195,575
6,039 Reebok International ............. 205,326
6,427 Rite-Aid ......................... 173,529
12,158 Rubbermaid ....................... 317,628
2,997 Russell .......................... 74,176
4,405 Safety-Kleen ..................... 67,727
28,657 Seagram .......................... 1,031,652
3,046(a) Shoney's ......................... 33,887
11,005 Southwest Airlines ............... 220,100
1,591 Springs Industries ............... 68,214
3,732 Stride Rite ...................... 41,985
5,561 TJX Cos. ......................... 75,074
4,996 Tandy ............................ 246,678
21,283(a) Toys R Us ........................ 465,566
2,206 Trinova .......................... 62,044
4,831 USAir Group ...................... 65,821
4,893 V.F. ............................. 234,251
176,993. Wal-Mart Stores .................. 3,827,473
19,000 Walgreen ......................... 541,499
7,854 Wendy's International ............ 156,097
5,690 Whirlpool ........................ 301,569
10,158 Woolworth (F. W.) ................ 148,560
3,488(a) Zenith Electronics ............... 29,211
------------
46,307,111
------------
Energy & Related--8.7%
7,215 Amerada Hess ..................... $ 325,577
38,261 Amoco ............................ 2,443,921
4,925 Ashland Oil ...................... 155,753
12,343 Atlantic Richfield ............... 1,317,615
10,905 Baker Hughes ..................... 214,011
9,762 Burlington Resources ............. 351,432
50,247 Chevron .......................... 2,349,047
8,029 Coastal .......................... 259,939
14,033 Dresser Industries ............... 291,185
95,741 Exxon ............................ 7,312,219
2,774 Foster Wheeler ................... 104,025
8,760 Halliburton ...................... 363,540
1,869 Helmerich & Payne ................ 48,360
4,003 Kerr-McGee ....................... 220,665
2,569 Louisiana Land &
Exploration .................... 90,878
4,194 McDermott International .......... 66,580
30,515 Mobil ............................ 3,074,386
24,484 Occidental Petroleum ............. 526,406
7,968 Oryx Energy ...................... 91,632
3,521 Pennzoil ......................... 132,918
20,212 Phillips Petroleum ............... 651,837
6,294(a) Rowan Cos. ....................... 41,698
41,339 Royal Dutch Petroleum ............ 5,079,530
6,958(a) Santa Fe Energy Resources ........ 61,752
18,684 Schlumberger ..................... 1,163,079
5,822 Sun .............................. 166,655
19,977 Texaco ........................... 1,360,933
22,906 USX-Marathon Group ............... 406,582
19,008 Unocal ........................... 498,960
------------
29,171,115
------------
Finance--10.8%
8,715 Aetna Life & Casualty ............ 613,318
9,000 Ahmanson (H.F.) & ................ 225,000
3,413 Alexander & Alexander
Services ....................... 76,366
34,585 Allstate ......................... 1,270,999
37,587 American Express ................. 1,526,972
15,831 American General ................. 520,444
36,569 American International Group ..... 3,085,509
30,394 Banc One ......................... 1,025,798
8,647 Bank of Boston ................... 384,792
14,824 Bank of New York ................. 622,608
28,889 BankAmerica ...................... 1,661,118
5,993 Bankers Trust New York ........... 382,054
7,437 Barnett Banks .................... 410,894
4,044 Beneficial ....................... 198,156
9,681 Boatmen's Bancshares ............. 367,878
5,633 CIGNA ............................ 558,371
<PAGE>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
----------- ------------
Finance (continued)
13,486 Chase Manhattan .................. $ 768,702
19,474 Chemical Banking ................. 1,107,584
6,674 Chubb ............................ 599,826
30,650 Citicorp ......................... 1,988,419
10,789 CoreStates Financial ............. 392,450
13,967 Federal Home Loan Mortgage ....... 967,215
10,429 First Bank Systems ............... 518,843
6,885 First Chicago .................... 467,319
6,189 First Fidelity Bancorp ........... 404,606
5,807 First Interstate Bancorp ......... 749,103
13,271 First Union ...................... 658,573
10,855 Fleet/Norstar Financial Group .... 420,631
6,347 General Re ....................... 919,522
4,549 Golden West Financial ............ 228,019
10,508 Great Western Financial .......... 237,744
7,540 Household International .......... 424,125
3,669 Jefferson-Pilot .................. 242,154
17,560 KeyCorp .......................... 592,650
7,959 Lincoln National ................. 355,170
11,264 Mellon Bank ...................... 564,608
13,601 Merrill Lynch & Co ............... 754,856
14,449 Morgan (J.P.) & Co ............... 1,114,379
12,031 NBD Bancorp ..................... 457,178
11,388 National City .................... 351,605
25,046 Norwest........................... 738,857
17,713 PNC Financial .................... 464,966
7,293 Providian ........................ 286,250
4,355 Republic New York ................ 255,312
4,826 SAFECO ........................... 309,769
6,475 St. Paul Cos. .................... 328,606
30,055 Sears, Roebuck & Co. ............. 1,021,870
9,936 Shawmut National.................. 336,582
8,809 SunTrust Banks ................... 568,181
5,471 Torchmark ........................ 227,047
5,249 Transamerica ..................... 355,620
24,603 Travelers Group .................. 1,242,452
5,613 UNUM ............................. 295,384
8,604 USF & G .......................... 144,117
2,632 USLIFE ........................... 75,011
7,541 U.S. Bancorp ..................... 223,401
13,154 Wachovia ......................... 580,419
3,672 Wells Fargo ...................... 771,578
------------
36,440,980
------------
General Business--7.4%
38,099(a) Airtouch Communications .......... 1,085,822
5,777 American Greetings ............... 181,976
11,092 Automatic Data Processing ........ 793,078
8,118 Block (H & R) .................... 334,868
5,035 CBS .............................. 406,576
General Business (continued)
5,477(a) Cabletron Systems ................ $ 430,629
11,851 Capital Cities/ABC ............... 1,405,825
7,468 Circuit City Stores .............. 249,245
20,859(a) cisco Systems .................... 1,616,573
18,456 Comcast, Cl. A ................... 329,901
13,047 Dean Witter, Discover & Co. ...... 649,088
6,390 Deluxe ........................... 171,731
7,182 Dial ............................. 175,061
11,854 Donnelley (R. R.) & Sons ......... 432,671
7,439 Dow Jones & Co ................... 262,225
13,070 Dun & Bradstreet ................. 780,933
4,306(a) Federal Express .................. 353,630
17,142 First Data ....................... 1,133,515
10,787 Gannett .......................... 586,543
2,301 Harland (John H.) ................ 47,746
8,969 ITT .............................. 1,098,703
6,056 Interpublic Group of Cos. ........ 234,670
3,790 Knight-Ridder .................... 210,345
21,298 Laidlaw, Cl. B ................... 191,682
11,445 MBNA ............................. 422,034
5,597 Marsh & McLennan ................. 458,254
3,850 McGraw-Hill ...................... 315,219
2,120 Meredith ......................... 75,790
32,413 Minnesota Mining &
Manufacturing .................. 1,843,489
5,939 Morgan Stanley Group ............. 516,693
11,421 Morton International ............. 348,341
3,693 National Service Industries ...... 109,867
20,935 NationsBank ...................... 1,376,476
7,467 New York Times, Cl. A ............ 207,209
8,213 Salomon .......................... 296,695
7,963 Service Corporation
International .................. 319,515
5,020 TRW .............................. 330,065
50,228(a) Tele-Communications, Cl. A ....... 853,876
4,295 Teledyne ......................... 106,838
6,520 Textron .......................... 448,250
29,762 Time Warner ...................... 1,086,313
5,012 Tribune .......................... 316,383
9,533 United Technologies .............. 846,053
27,838(a) Viacom, Cl. B (non-voting) ....... 1,391,899
8,120 Whitman .......................... 172,549
------------
25,004,844
------------
Manufacturing--5.7%
3,212 ASARCO ........................... 103,587
8,662 Air Products & Chemicals ......... 447,176
17,334 Alcan Aluminium .................. 548,188
13,726 Aluminum Co. of America .......... 700,026
8,181(a) Armco ............................ 50,109
<PAGE>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
----------- ------------
Manufacturing (continued)
4,089 Avery Dennison ................... $ 182,983
2,303 Ball ............................. 63,620
27,208 Barrick Gold ..................... 629,185
3,969 Bemis Co ......................... 103,194
8,486(a) Bethlehem Steel .................. 111,379
6,944(a) Crown Cork & Seal ................ 242,172
7,097 Cyprus Amax Minerals ............. 185,409
20,737 Dow Chemical ..................... 1,423,077
42,789 Du Pont (E. I.) de Nemours ....... 2,668,964
1,516 Eastern Enterprises .............. 45,291
8,724 Echo Bay Mines ................... 78,516
4,965 Ecolab ........................... 143,985
11,073 Engelhard ........................ 275,441
2,844(a) FMC .............................. 203,702
3,520 Federal Paper Board .............. 147,840
7,257 Grace (W. R.) & Co. .............. 404,578
5,033 Great Lakes Chemical ............. 337,840
8,631 Hercules ......................... 460,680
10,617 Homestake Mining ................. 163,236
9,197 Inco Ltd ......................... 316,147
3,731 Inland Steel Industries .......... 87,212
19,594 International Paper .............. 724,978
6,359 James River ...................... 204,283
12,320 Kimberly-Clark ................... 894,740
5,928 Mallinckrodt Group ............... 205,998
4,212 Mead ............................. 242,717
8,906 Monsanto ......................... 932,904
7,724 Moore ............................ 147,722
668 NACCO Industries ................. 38,243
5,220 Nalco Chemical ................... 156,600
6,620 Newmont Mining ................... 249,905
6,699 Nucor ............................ 322,389
3,721 Ogden ............................ 84,653
15,601 PPG Industries ................... 663,043
5,333 Phelps Dodge ..................... 337,979
3,172 Pittston ......................... 87,230
18,410 Placer Dome ...................... 402,719
10,632 Praxair .......................... 287,064
4,920 Reynolds Metals .................. 247,845
5,231 Rohm & Haas ...................... 289,013
11,642 Scott Paper ...................... 619,937
3,862 Sigma Aldrich .................... 183,445
7,418 Stone Container .................. 122,397
4,341 Temple-Inland .................... 197,515
6,284 USX-US Steel Group ............... 187,734
5,421 Union Camp ....................... 275,792
10,582 Union Carbide .................... 400,792
7,846 Westvaco ......................... 217,726
7,855 Williams Cos. .................... 303,398
Manufacturing (continued)
6,987 Worthington Industries ........... $ 116,158
------------
19,268,456
------------
Shelter--2.4%
2,868 Armstrong World Industries ....... 170,288
3,656 Boise Cascade .................... 132,530
2,205 Centex ........................... 72,214
7,407 Champion International ........... 396,275
2,332 Crane ............................ 82,495
21,045 Federal National Mortgage
Association .................... 2,207,094
3,487 Fleetwood Enterprises ............ 71,484
7,048 Georgia-Pacific .................. 581,460
36,697 Home Depot ....................... 1,366,963
3,111 Johnson Controls ................. 181,216
2,357 Kaufman & Broad Home ............. 27,400
8,312 Louisiana-Pacific ................ 198,449
12,189 Masco ............................ 342,816
12,152 Newell ........................... 293,167
3,952(a) Owens-Corning Fiberglass ......... 167,466
2,261 Potlatch ......................... 95,245
2,073 Pulte ............................ 65,559
6,575 Sherwin-Williams ................. 247,384
3,083 Snap-On Tools .................... 130,642
3,413 Stanley Works .................... 162,970
15,687 Weyerhaeuser ..................... 692,188
4,209 Willamette Industries ............ 244,121
------------
7,929,426
------------
Transportation--1.4%
5,862(a) AMR .............................. 386,892
11,033 Burlington Northern
Santa Fe ....................... 925,393
8,135 CSX .............................. 681,306
6,034 Conrail .......................... 414,838
3,346 Consolidated Freightways ......... 77,795
10,053 Norfolk Southern ................. 776,594
2,964 Roadway Services ................. 132,639
6,033 Ryder System ..................... 145,546
15,800 Union Pacific .................... 1,032,925
2,107 Yellow ........................... 27,654
------------
4,601,582
------------
Utilities--12.8%
14,546 ALLTEL ........................... 445,471
122,292 AT&T ............................. 7,826,688
14,329 American Electric Power .......... 546,293
42,733 Ameritech ........................ 2,307,582
11,338 Baltimore Gas & Electric ......... 303,292
33,596 Bell Atlantic .................... 2,137,546
<PAGE>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
----------- ------------
Utilities (continued)
38,281 BellSouth ........................ $ 2,928,497
11,999 Carolina Power & Light ........... 392,967
14,804 Central & South West ............. 396,007
12,025 Cinergy .......................... 341,209
3,881(a) Columbia Gas System .............. 149,419
18,083 Consolidated Edison Co.
of New York .................... 549,271
7,222 Consolidated Natural Gas ......... 274,436
11,333 Detroit Edison ................... 382,489
13,368 Dominion Resources ............... 531,378
15,757 Duke Power ....................... 705,126
5,295 ENSERCH .......................... 76,778
19,436 Enron ............................ 668,113
17,563 Entergy .......................... 500,546
14,309 FPL Group ........................ 599,189
74,787 GTE .............................. 3,084,964
8,961 General Public Utilities ......... 280,031
10,103 Houston Industries ............... 468,527
52,202 MCI Communications ............... 1,301,787
3,833 NICOR ............................ 103,012
32,890 NYNEX ............................ 1,545,830
11,086 Niagara Mohawk Power ............. 119,175
9,522 Noram Energy ..................... 73,796
5,178 Northern States Power ............ 244,661
2,050 ONEOK ............................ 49,969
11,695 Ohio Edison ...................... 267,523
17,097 PECO Energy ...................... 500,087
6,522 Pacific Enterprises .............. 161,420
32,738 Pacific Gas & Electric ........... 961,679
32,998 Pacific Telesis Group ............ 1,002,314
21,883 PacifiCorp ....................... 413,042
11,568 Panhandle Eastern ................ 292,092
2,677 Peoples Energy ................... 76,964
Utilities (continued)
18,821 Public Service Enterprise
Group .......................... $ 552,867
46,978 SBC Communications Inc. .......... 2,624,896
34,285 SCEcorps ......................... 582,845
6,624 Sonat ............................ 190,440
51,328 Southern ......................... 1,225,456
26,855 Sprint ........................... 1,033,917
13,963 Tenneco .......................... 612,626
17,376 Texas Utilities .................. 638,567
16,491 Unicom ........................... 540,079
7,875 Union Electric ................... 307,124
36,296 U.S. West ........................ 1,728,596
------------
43,046,583
------------
TOTAL COMMON STOCKS
(cost $253,460,184) ............ $331,653,079
------------
------------
Principal
Amount SHORT-TERM INVESTMENTS--1.4%
-----------
U.S. Treasury Bills:
280,000 5.40% 11/9/95 .................... $ 276,406
245,000(b) 5.23% 12/21/95 ................... 242,254
1,038,000 5.28% 1/11/96 .................... 1,025,145
3,341,000 5.25% 1/18/96 .................... 3,299,685
------------
TOTAL SHORT-TERM
INVESTMENTS
(cost $4,843,490)............... $ 4,843,490
------------
------------
TOTAL INVESTMENTS
(cost $258,303,674).......................... 100.1% $336,496,569
------ ------------
------ ------------
LIABILITIES, LESS CASH
AND RECEIVABLES.............................. (0.1%) $ (349,383)
------ ------------
------ ------------
NET ASSETS .................................... 100.0% $336,147,186
------ ------------
------ ------------
</TABLE>
<TABLE>
<CAPTION>
Statement of Financial Futures October 31, 1995
FINANCIAL FUTURES PURCHASED:
- ----------------------------
Market Value Unrealized
Number of Covered (Depreciation)
Issuer Contracts by Contracts Expiration at 10/31/95
- ------ ------------ -------------- -------------- --------------
<S> <C> <C> <C> <C>
Standard & Poor's 500........................ 6 $1,751,550 December '95 $(14,850)
Standard & Poor's 500........................ 8 2,354,800 March '96 (12,550)
---------
$(27,400)
---------
---------
</TABLE>
Notes to Statement of Investments:
- --------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open Financial Futures positions.
See notes to financial statements.
<PAGE>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1995
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $258,303,674)--see statement.................................... $336,496,569
Cash.................................................................... 43,096
Dividends and interest receivable....................................... 522,275
Receivable for subscriptions to Common Stock............................ 109,462
Prepaid expenses........................................................ 28,352
--------------
337,199,754
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 57,278
Due to Wells Fargo Nikko Investment Advisors............................ 83,491
Due to Wells Fargo Institutional Trust Company, N.A..................... 5,144
Payable for futures variation margin--Note 3(a).......................... 16,050
Payable for investment securities purchased............................. 725,066
Accrued expenses........................................................ 165,539 1,052,568
-------- --------------
NET ASSETS.................................................................. $336,147,186
--------------
--------------
REPRESENTED BY:
Paid-in capital......................................................... $251,491,114
Accumulated undistributed investment income--net........................ 4,913,676
Accumulated net realized gain on investments............................ 1,576,901
Accumulated net unrealized appreciation on investments [including ($27,400)
net unrealized (depreciation) on financial futures]--Note 3(b)............. 78,165,495
--------------
NET ASSETS at value applicable to 18,288,321 shares outstanding
(200 million shares of $.001 par value Common Stock authorized)......... $336,147,186
--------------
--------------
NET ASSET VALUE, offering and redemption price per share
($336,147,186 / 18,288,321 shares)...................................... $18.38
------
------
</TABLE>
See notes to financial statements.
<PAGE>
Peoples Index Fund, Inc.
- ----------------------------------------------------------------------------
Statement of Operations Year ended October 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Cash dividends (net of $44,650 foreign taxes withheld at source)...... $7,073,811
Interest.............................................................. 629,732
----------
Total Income.................................................... $ 7,703,543
Expenses:
Index management fee--Note 2(a)....................................... 280,472
Administration fee--Note 2(a)......................................... 560,944
Shareholder servicing costs--Note 2(b)................................ 548,979
Professional fees..................................................... 60,376
Prospectus and shareholders' reports.................................. 8,055
Registration fees..................................................... 21,339
Directors' fees and expenses--Note 2(c)............................... 22,224
Custodian fees--Note 2(a)............................................. 23,625
Miscellaneous......................................................... 19,839
----------
Total Expenses.................................................. 1,545,853
-------------
INVESTMENT INCOME-NET........................................... 6,157,690
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 3(a)............................. $2,022,369
Net realized gain on financial futures--Note 3(a)....................... 2,288,271
----------
Net Realized Gain............................................... 4,310,640
Net unrealized appreciation on investments [including ($81,300)
net unrealized (depreciation) on financial futures]--Note 3(b)........ 54,324,576
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 58,635,216
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $64,792,906
-------------
-------------
</TABLE>
See notes to financial statements.
<PAGE>
Peoples Index Fund, Inc.
- -------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended October 31,
--------------------------------------
1994 1995
-------------- ---------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................ $ 6,200,483 $ 6,157,690
Net realized gain on investments.................................. 18,711,233 4,310,640
Net unrealized appreciation (depreciation) on investments for the year (18,291,976) 54,324,576
-------------- ---------------
Net Increase In Net Assets Resulting From Operations............ 6,619,740 64,792,906
-------------- ---------------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net........................................ (5,373,357) (6,077,935)
From net realized gain on investments............................. (11,440,051) (19,477,910)
-------------- ---------------
Total Dividends................................................. (16,813,408) (25,555,845)
-------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 153,302,049 142,531,859
Dividends reinvested.............................................. 13,583,900 22,101,817
Cost of shares redeemed........................................... (192,893,713) (112,925,618)
-------------- ---------------
Increase (Decrease) In Net Assets From Capital Stock Transactions (26,007,764) 51,708,058
-------------- ---------------
Total Increase (Decrease) In Net Assets....................... (36,201,432) 90,945,119
NET ASSETS:
Beginning of year................................................. 281,403,499 245,202,067
-------------- ---------------
End of year (including undistributed investment income-net:
$4,833,921 in 1994 and $4,913,676 in 1995)...................... $245,202,067 $336,147,186
-------------- ---------------
-------------- ---------------
Shares Shares
-------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 9,481,323 8,633,225
Shares issued for dividends reinvested............................ 852,724 1,546,663
Shares redeemed................................................... (12,068,037) (6,829,736)
-------------- ---------------
Net Increase (Decrease) In Shares Outstanding................... (1,733,990) 3,350,152
-------------- ---------------
-------------- ---------------
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
Year Ended October 31,
-----------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $10.86 $14.16 $15.16 $16.88 $16.41
------ ------ ------ ------ ------
Investment Operations:
Investment income--net........................ .34 .41 .30 .39 .36
Net realized and unrealized gain on investments 3.18 .97 1.86 .11 3.36
------ ------ ------ ------ ------
Total from Investment Operations............ 3.52 1.38 2.16 .50 3.72
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net......... (.22) (.38) (.40) (.31) (.42)
Dividends from net realized gain on investments -- -- (.04) (.66) (1.33)
------ ------ ------ ------ ------
Total Distributions......................... (.22) (.38) (.44) (.97) (1.75)
------ ------ ------ ------ ------
Net asset value, end of year.................. $14.16 $15.16 $16.88 $16.41 $18.38
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN........................... 32.85% 9.90% 14.49% 3.14% 25.68%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets....... -- -- .39% .61% .55%
Ratio of net investment income to average net assets 3.45% 3.04% 2.36% 2.26% 2.75%
Decrease reflected in above expense ratios due to
undertakings by WFNIA and Dreyfus........... .78% .65% .14% .03% --
Decrease reflected in above expense ratios due to
redemption fee.............................. .10% -- -- -- --
Portfolio Turnover Rate....................... .69% 3.10% 3.77% 18.81% 3.66%
Net Assets, end of year (000's Omitted)....... $69,211 $92,598 $281,403 $245,202 $336,147
</TABLE>
See notes to financial statements.
<PAGE>
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 a subsidiary of The Nikko Securities Co., Ltd. ("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
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. (the "Distributor") acts as the distributor of the Fund's shares, which
are sold to the public without a sales charge. The Distributor, located at
One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary
of FDI Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc.
Effective November 13, 1995, Dreyfus will serve as the Fund's manager and
Mellon Equity Associates, an affiliate of Dreyfus ("Mellon Equity"), will
serve as the Fund's index manager. In addition, Boston Safe Deposit and Trust
Company, an affiliate of Dreyfus, will serve as the Fund's custodian.
(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.
(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.
(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.
<PAGE>
Peoples Index Fund, Inc.
- --------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 2--Investment Management 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
(exclusive of certain expenses as described above) exceed 2 1/2% of the first
$30 million, 2% of the next $70 million, and 1 1/2% of the excess over $100
million of the average value of the Fund's net assets in accordance with
California "blue sky" regulations. There was no expense reimbursement for the
year ended October 31, 1995.
In addition, WFITC earned $23,625 for custodian services provided to the
Fund.
(b) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, 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 of providing personal
services and/or maintaining 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, 1995, the Fund was charged an aggregate of
$395,475 pursuant to the Shareholder Services Plan.
(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.
(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 year ended October 31, 1995, redemption fees
amounted to $9,513.
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, 1995
amounted to $46,057,627 and $9,911,112, respectively.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments (see the Statement of Financial Futures). Investments in
financial futures require the Fund to "mark to market" on a daily basis,
which reflects the change in the market value of the
<PAGE>
Peoples Index Fund, Inc.
- --------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
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, 1995 and their related unrealized market appreciation are set
forth in the Statement of Financial Futures.
(b) At October 31, 1995, accumulated net unrealized appreciation on
investments was $78,165,495, consisting of $84,763,329 gross unrealized
appreciation and $6,597,834 gross unrealized depreciation.
At October 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
<PAGE>
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, 1995, 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 the ended, and the financial
highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 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., at October 31, 1995, 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 18, 1995
<PAGE>
Peoples Index Fund, Inc.
- -----------------------------------------------------------------------
Important Tax Information (Unaudited)
For Federal tax purposes the Fund hereby designates $1.325 per share as a
long-term capital gain distribution of the $1.745 per share paid on December
30, 1994.
<PAGE>
Peoples Index Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02108
Transfer Agent &
Dividend Disbursing Agent
First Data Investor 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. 078AR9510
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 |
| 10/31/95 | 18,823 | 19,596 |
|----------------------------------------------|
*Source: Lipper Analytical Services, Inc.
