<PAGE>
Dreyfus
S&P 500
Index Fund
Annual Report
October 31, 1996
<PAGE>
Dreyfus S&P 500 Index Fund
- ----------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
It is a pleasure to send you this annual report for the Dreyfus S&P 500
Index Fund covering the fiscal year ended October 31, 1996.
For that 12-month period, the Fund provided a total return of 23.41%.*
This compares with a total return of 24.08% for the Standard & Poor's 500
Composite Stock Price Index.** The difference is accounted for by transaction
fees and other Fund expenses.
While all segments of the U.S. equity market provided strong returns over
the fiscal year, large capitalization stocks led the way. The return on the S&P
500 compares with 17.35% for the S&P Midcap 400 Index.***
Economic Review
The U.S. economy is enjoying a good year. First, the tightening labor
market has failed to push price inflation higher. Second, economic growth has
slowed since midyear from the torrid pace of the first half. Third, corporate
profits are holding up quite well, albeit growing more slowly than last year.
These have vindicated Federal Reserve Board inaction, keeping market interest
rates stable. Although the economy has simmered down, it is nevertheless
operating with very little slack.
The Federal Reserve twice thwarted market expectations for tightening
this year, taking the view instead that steady growth won't so easily foster
inflation in this cycle. Indeed, the unemployment rate has plunged towards 5%
this year and wage growth has outpaced price inflation for the first time since
1989. Yet there is little evidence of accelerating price inflation to date.
Even higher oil prices have failed to lift prices elsewhere. This is very
different from 1994 when the Fed preemptively hiked interest rates to stem a
future price inflation that subsequently did not materialize.
After rising 3.3% in the first half of this year, real GDP growth slowed
to 2.2% in the third quarter. Early evidence for the fourth quarter indicates
sustained growth. In particular, consumer spending has been lackluster since
midyear, despite solid income growth and high confidence levels. And new highs
in home sales have not been matched by new records in homebuilding. Spending on
capital goods has rebounded, however, while the strength of new export orders
indicates better growth ahead for this sector. Capital goods and exports
typically dominate the business cycle's late phase. Corporate profit growth,
albeit slower than in 1995, continues to surprise on the upside.
Interest rates this fall are not much different than in the spring.
Short-term rates have especially stabilized in recent months based on the view
that a Fed tightening is unlikely this year. Long-term rates have recently
fallen. Should the economy show signs of reaccelerating, then long-term rates
would likely rise.
As the U.S. economy moves into the late-cycle phase it is, as usual, out
of sync with most business cycles overseas which are at a much earlier stage.
This portends faster world growth in 1997. How well the U.S. economy can
participate in this accelerating world growth without igniting inflation
remains to be seen.
Market Overview
The stock market in the last 12 months shrugged off a variety of
potentially negative factors to barrel its way to new heights.
In late 1995 and early 1996 economic activity appeared to slow down,
enough to prompt the Federal Reserve to lower interest rates in January of this
year. By springtime, when the Fed had apparently suspended its
anti-inflationary measures, investors began to worry about signs of strength
exhibited by the economy. Though the Fed took no action to raise interest
rates, investor worries about that possibility restrained an ebullient stock
market.
<PAGE>
By July, fears of higher interest rates, plus concern that some stock
prices--technology issues in particular--might have gone too far, too fast,
caused a temporary retreat in equity prices.
As fall approached, however, the underlying factors of a strong economy,
low inflation and investor optimism took hold again and propelled stock prices
to new highs.
Chief beneficiaries were the large capitalization stocks. It took a while
for technology stocks and small caps to recover the ground lost in the early
summer. However, the trend across the board was clearly bullish.
As the fiscal year closed, there were some negative factors on the
horizon. Corporate profits may have passed their peak. Consumer demand seemed
to be slowing in some sectors. There were also hints that employment costs,
which have been quite stable for a long time, might face upward pressures.
The market however, seemed to soar above these factors. The prospect (now
a fact) of a split government in Washington, with Republicans controlling
Congress and Democrats in the White House, was seen as favorable for stock
prices. Moreover, the specter of renewed inflation remained just that--nothing
more than a specter.
Furthermore, individual investors continued to pour money into equity
mutual funds--not at constantly increasing rates, to be sure, but still at a
pace that gave strong impetus for higher stock prices.
We appreciate that you have asked us to manage your assets invested in
the Dreyfus S&P 500 Index Fund. At this season, we would also like to extend
our best wishes for a healthy and happy New Year.
Sincerely,
Steven Falci
Portfolio Manager
November 22, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC.--The Standard & Poor's 500
Composite Stock Price Index is a widely accepted unmanaged index of stock
market performance. "Standard & Poor's," "S&P," "S&P 500," "Standard &
Poor's 500" and "500" are trademarks of Standard & Poor's Ratings Group, a
division of The McGraw-Hill Companies, Inc. and have been licensed for use
by Dreyfus S&P 500 Index Fund. The Fund is not sponsored, endorsed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the products.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC.--The Standard & Poor's MidCap 400
Index is a broad-based Index of 400 companies with market capitalization
generally ranging from $50 million to $10 billion and is a widely accepted,
unmanaged index of medium-cap stock market performance. Reflects the
reimbursement of income dividends and, where applicable, capital gain
distributions.
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ------------------------------------------------------------------------------
Statement of Investments October 31, 1996
Shares Common Stocks--93.6% Value
-------- ------------
Basic Industries--5.5%
11,500 Air Products & Chemicals............. $ 690,000
13,500 Alco Standard ....................... 626,062
3,800 Armstrong World Industries........... 253,650
5,400 Avery Dennison....................... 355,725
3,100 Ball................................. 74,787
5,400 Bemis................................ 189,000
5,000 Boise Cascade........................ 155,000
2,900 Centex............................... 87,365
9,900 Champion International............... 430,650
13,300 Crown Cork & Seal.................... 638,400
25,400 Dow Chemical......................... 1,974,850
58,100 duPont (E.I.) de Nemours............. 5,388,775
8,100 Eastman Chemical..................... 427,275
3,800(a) FMC.................................. 279,775
8,700 Fluor................................ 569,850
9,500 Georgia Pacific...................... 712,500
5,600 Goodrich (B.F.)...................... 237,300
9,300 Grace (W.R.)......................... 492,900
6,600 Great Lakes Chemical................. 344,025
11,100 Hercules............................. 528,637
31,000 International Paper.................. 1,325,250
8,800 James River ......................... 277,200
29,200 Kimberly-Clark....................... 2,722,900
11,200 Louisiana Pacific ................... 233,800
5,400 Mead................................. 306,450
43,400 Minnesota Mining &
Manufacturing...................... 3,325,525
60,700 Monsanto............................. 2,405,237
14,700 Morton International................. 578,812
7,000 Nalco Chemical....................... 254,625
33,400 Occidental Petroleum................. 818,300
19,300 PPG Industries....................... 1,100,100
3,000 Potlach ............................. 128,250
16,100 Praxair.............................. 712,425
6,700 Rohm & Haas ......................... 478,210
8,900 Sherwin-Williams .................... 446,112
5,200 Sigma-Aldrich........................ 305,500
10,300 Stone Container...................... 157,075
5,700 Temple-Inland........................ 292,125
7,100 Union Camp .......................... 346,125
13,400 Union Carbide........................ 571,175
10,500 Westvaco ............................ 299,250
20,500 Weyerhaeuser......................... 940,440
5,700 Willamette Industries ............... 384,750
------------
32,866,162
------------
Capital Goods--21.0%
22,700 AMP.................................. 768,962
14,000(a) Advanced Micro Devices............... 248,500
4,700 Alexander & Alexander Services....... 71,675
17,954 Allegheny Teledyne................... 383,766
29,300 AlliedSignal......................... $ 1,919,150
12,500(a) Amdahl............................... 128,125
17,700 American Brands...................... 845,175
6,200(a) Andrew............................... 302,250
12,900 Apple Computer....................... 296,700
18,600(a) Applied Materials.................... 491,737
4,700 Autodesk............................. 107,512
30,000 Automatic Data Processing............ 1,248,750
19,500 Bay Networks......................... 394,875
36,100 Boeing............................... 3,443,037
3,000 Briggs & Stratton.................... 120,000
22,000 Browning-Ferris Industries........... 577,500
27,900 COMPAQ Computer...................... 1,942,537
7,800(a) Cabletron Systems.................... 486,525
7,500 Case................................. 348,750
20,000 Caterpillar.......................... 1,372,500
7,100(a) Ceridian............................. 352,337
4,100 Cincinnati Milacron.................. 78,412
67,000(a) Cisco Systems........................ 4,145,625
37,700 Computer Associates..................
International...................... 2,229,012
7,800(a) Computer Sciences.................... 579,150
11,200 Cooper Industries.................... 450,800
3,100 Crane................................ 144,150
38,200(a) CUC International.................... 935,900
4,100 Cummins Engine....................... 170,662
12,100 DSC Communications................... 167,887
4,100(a) Data General......................... 60,987
26,700 Deere & Co........................... 1,114,725
9,300 Dell Computer........................ 756,787
8,500 Deluxe Corp.......................... 277,312
16,100(a) Digital Equipment.................... 474,950
11,800 Dover................................ 606,225
10,000 Dow Jones & Co....................... 330,000
18,500 Dresser Industries................... 608,187
17,600 Dun & Bradstreet..................... 1,018,600
4,900 EG&G................................. 86,362
24,000(a) EMC.................................. 630,000
8,000 Eaton................................ 478,000
23,200 Emerson Electric..................... 2,064,800
23,200 First Data........................... 1,850,200
4,200 Foster Wheeler....................... 172,200
6,500 General Dynamics..................... 446,062
170,900 General Electric..................... 16,534,579
5,200 General Signal....................... 211,900
12,500 Genuine Parts........................ 546,875
3,600 Giddings & Lewis..................... 42,300
5,300 Grainger (W.W.)...................... 392,862
10,700 H&R Block............................ 264,825
4,900 Harnischfeger Industries............. 196,000
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ---------------------------------------------------------------
Statement of Investments (continued) October 31, 1996
Shares Common Stocks (continued) Value
-------- ------------
Capital Goods (continued)
4,000 Harris............................... $ 250,500
105,800 Hewlett-Packard...................... 4,668,425
13,100 Honeywell............................ 813,837
12,700 Illinois Tool Works.................. 892,175
11,300 Ingersoll-Rand....................... 470,362
54,600 International Business Machines...... 7,043,400
85,100 Intel................................ 9,350,362
4,900(a) Intergraph........................... 45,937
8,400 Interpublic Group Cos................ 407,400
4,300 Johnson Controls..................... 313,900
13,400(a) LSI Logic............................ 355,100
32,400 Laidlaw, Cl. B....................... 380,700
20,700 Lockheed Martin...................... 1,855,237
65,925 Lucent Technologies.................. 3,098,480
7,700 Mallinckrodt Group................... 334,950
7,500 Marsh & McLennan..................... 780,937
5,700 McDermott International.............. 101,175
22,300 McDonnell Douglas.................... 1,215,350
21,600 Micron Technology.................... 548,100
61,900(a) Microsoft............................ 8,495,780
61,300 Motorola............................. 2,819,800
14,300(a) National Semiconductor............... 275,275
4,900 National Service Industries.......... 169,050
26,700 Northern Telecommunications.......... 1,738,837
6,000 Northrop Grumman..................... 484,500
36,500(a) Novell............................... 337,625
67,700(a) Oracle............................... 2,864,560
5,300(a) Owens-Corning........................ 205,375
11,900 Pall................................. 304,937
7,700 Parker-Hannifin...................... 291,637
4,500 Perkin-Elmer......................... 241,312
15,400 Pitney Bowes......................... 860,475
4,600 Raychem.............................. 359,375
24,500 Raytheon............................. 1,206,625
22,600 Rockwell International............... 1,243,000
8,400 Ryder System......................... 249,900
6,000 Safety-Kleen......................... 93,750
7,900 Scientific-Atlanta................... 114,550
10,900 Seagate Technology................... 727,575
24,400 Service Corp. International.......... 695,400
2,400 Shared Medical Systems............... 115,800
17,800(a) Silicon Graphics..................... 329,300
6,300 Snap-On.............................. 202,387
9,213 Stanley Works........................ 260,267
19,100(a) Sun Microsystems..................... 1,165,100
12,200(a) Tandem Computers..................... 154,025
3,400 Tektronix............................ 133,025
9,200(a) Tellabs.............................. 783,150
19,600 Texas Instruments.................... 943,250
8,400 Textron.............................. 745,500
4,200 Thomas & Betts....................... $ 177,975
3,300 Timken............................... 147,262
17,500(a) 3COM................................. 1,183,437
2,906 TRINOVA.............................. 95,534
6,700 TRW.................................. 606,350
15,800 Tyco International................... 784,075
17,900(a) Unisys............................... 111,875
12,600 United Technologies.................. 1,622,250
50,800 WMX Technologies..................... 1,746,250
43,600 Westinghouse Electric................ 746,650
33,600 Xerox................................ 1,558,200
------------
124,234,026
------------
Consumer Cyclical--11.5%
26,100 Albertson's.......................... 897,187
7,700 American Greetings, Cl. A............ 225,706
15,100 American Stores...................... 624,762
5,300(a) Bally Entertainment.................. 159,662
9,100 Black & Decker....................... 340,112
10,200 Brunswick............................ 239,700
10,700(a) Charming Shoppes..................... 49,487
75,400 Chrysler............................. 2,535,330
10,100 Circuit City Stores.................. 330,775
24,200 Comcast, Cl. A....................... 356,950
8,700 Cooper Tire and Rubber............... 170,737
10,500 Dana Corp............................ 311,062
16,300 Darden Restaurants................... 136,512
22,400 Dayton Hudson........................ 775,600
11,700 Dillard Department Stores, Cl. A..... 371,475
70,200 Disney (Walt)........................ 4,624,425
15,900 Donnelley (R.R.) & Sons.............. 482,962
6,400 Echlin............................... 208,800
21,500(a) Federated Department Stores.......... 709,500
3,700 Fleetwood Enterprises................ 124,875
3,900 Fleming Cos.......................... 67,762
122,400 Ford Motor........................... 3,825,000
7,900(a) Fruit of the Loom, Cl. A............. 287,362
14,600 Gannett.............................. 1,107,775
29,700 Gap.................................. 861,300
14,200(a) General Instrument................... 285,775
78,200 General Motors....................... 4,213,025
6,200 Giant Food, Cl. A.................... 209,250
16,100 Goodyear Tire & Rubber............... 738,587
4,000 Great Atlantic & Pacific............. 120,000
12,800 HFS.................................. 937,600
7,600 Harcourt General..................... 378,100
3,200 Harland (John H.).................... 99,600
10,700(a) Harrah's Entertainment............... 179,225
8,900 Hasbro............................... 345,987
20,200 Hilton Hotel......................... 613,575
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- -----------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996
Shares Common Stocks (continued) Value
-------- ------------
Consumer Cyclical (continued)
49,601 Home Depot........................... $ 2,715,654
12,100 ITT.................................. 508,200
12,200 ITT Industries....................... 283,650
4,000 Jostens.............................. 86,000
50,300 K mart............................... 490,425
3,900(a) King World Productions............... 140,400
9,900 Knight-Ridder........................ 370,012
13,000(a) Kroger............................... 580,125
28,000 Limited.............................. 514,500
7,600 Liz Claiborne........................ 321,100
2,100 Longs Drug Stores.................... 94,237
17,800 Lowes................................ 718,675
2,506 Luby's Cafeterias.................... 52,626
13,200 Marriott International............... 750,750
16,600 Masco................................ 520,825
28,300 Mattel............................... 817,162
25,900 May Department Stores................ 1,227,012
10,500 Maytag............................... 208,687
72,400 McDonald's........................... 3,212,750
10,300 McGraw-Hill Cos...................... 482,812
10,900 Melville............................. 406,025
3,800 Mercantile Stores.................... 188,575
2,800 Meredith............................. 140,700
10,300 Moore................................ 208,575
900 NACCO Industries, Cl. A.............. 41,625
29,600 NIKE, Cl. B.......................... 1,742,700
7,800(a) Navistar International............... 72,150
10,100 New York Times, Cl. A................ 364,862
8,400 Nordstrom............................ 302,925
4,000 PACCAR............................... 223,000
23,300 Penney (J.C.)........................ 1,223,250
6,400 Pep Boys-Manny, Moe & Jack........... 224,000
20,300(a) Price/Costco......................... 403,462
5,800 Reebok International................. 207,350
8,700 Rite Aid............................. 295,800
4,000 Russell.............................. 113,500
5,300(a) Ryan's Family Steak House............ 39,087
40,500 Sears, Roebuck & Co.................. 1,959,187
5,000(a) Shoney's............................. 36,875
2,100 Springs Industries................... 94,762
5,100 Stride Rite.......................... 42,075
7,000 Supervalu............................ 208,250
18,800 Sysco................................ 639,200
7,500 TJX Cos.............................. 300,000
6,200 Tandy................................ 233,275
67,600(a) Tele-Communications, Cl. A........... 840,775
58,900 Time Warner.......................... 2,194,030
10,700 Times Mirror, Cl. A.................. 494,875
28,300(a) Toys R Us............................ 958,662
6,300 Tribune.............................. 515,025
49,000 US West Media Group.................. $ 765,625
6,600 V.F.................................. 431,475
36,900(a) Viacom, Cl. B........................ 1,203,862
237,400 Wal-Mart Stores...................... 6,320,780
25,500 Walgreen............................. 962,625
13,300 Wendy's International................ 274,312
7,700 Whirlpool............................ 363,825
15,700 Winn-Dixie Stores.................... 523,987
13,800(a) Woolworth............................ 289,800
------------
67,892,012
------------
Consumer Staples--12.2%
2,900 Alberto-Culver, Cl. B................ 132,675
51,300 Anheuser-Busch Cos................... 1,975,050
56,470 Archer Daniels Midland............... 1,228,222
13,768 Avon Products........................ 746,914
7,100 Brown-Forman, Cl. B.................. 307,075
15,000 CPC International.................... 1,183,125
24,300 Campbell Soup........................ 1,944,000
5,300 Clorox............................... 578,362
258,000 Coca-Cola............................ 13,029,000
15,200 Colgate-Palmolive.................... 1,398,400
25,200 ConAgra.............................. 1,256,850
3,900 Coors (Adolph), Cl. B................ 76,050
34,900 Eastman Kodak........................ 2,783,275
6,700 Ecolab............................... 244,550
16,500 General Mills........................ 942,562
46,100 Gillette............................. 3,445,975
38,300 Heinz (H.J.)......................... 1,359,650
15,900 Hershey Foods........................ 769,162
11,500 International Flavors &
Fragrances......................... 475,812
137,900 Johnson & Johnson.................... 6,791,575
21,900 Kellogg.............................. 1,390,650
16,400 Newell............................... 465,350
162,100 PepsiCo.............................. 4,802,212
84,700 Philip Morris Cos.................... 7,845,337
8,500 Pioneer Hi-Bred International........ 570,562
4,700 Polaroid............................. 190,937
71,000 Procter & Gamble..................... 7,029,000
14,000 Quaker Oats.......................... 497,000
11,000 Ralston-Ralston Purina Group......... 727,375
15,500 Rubbermaid........................... 360,375
50,200 Sara Lee............................. 1,782,100
38,800 Seagram.............................. 1,469,550
6,400 Tupperware........................... 328,800
19,500 UST.................................. 563,062
16,600 Unilever, N.V........................ 2,537,730
10,900 Whitman.............................. 264,325
12,000 Wrigley, (Wm) Jr..................... 723,000
------------
72,215,649
------------
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996
Shares Common Stocks (continued) Value
-------- ------------
Energy--9.4%
9,600 Amerada Hess......................... $ 531,600
51,500 Amoco................................ 3,901,125
6,700 Ashland.............................. 284,750
16,600 Atlantic Richfield................... 2,199,500
15,000 Baker Hughes......................... 534,375
13,000 Burlington Resources................. 654,875
67,600 Chevron.............................. 4,444,700
10,900 Coastal.............................. 468,700
5,700 Columbia Gas System.................. 346,275
9,800 Consolidated Natural Gas............. 520,625
2,100 Eastern Enterprises.................. 80,850
26,300 Enron................................ 1,222,950
7,100 Enserch.............................. 152,650
128,500 Exxon................................ 11,388,312
12,900 Halliburton.......................... 730,462
2,600 Helmerich & Payne.................... 140,725
5,100 Kerr-McGee........................... 320,025
3,500 Louisiana Land & Exploration......... 199,062
40,800 Mobil................................ 4,763,400
5,200 Nicor................................ 181,350
14,200 Noram Energy......................... 218,325
2,800 Oneok................................ 75,250
10,800(a) Oryx Energy.......................... 207,900
8,800 Pacific Enterprises.................. 270,600
15,600 Panenergy............................ 600,600
4,800 Pennzoil............................. 244,800
3,600 Peoples Energy....................... 126,900
27,200 Phillips Petroleum................... 1,115,200
8,800(a) Rowan Cos............................ 196,900
55,500 Royal Dutch Petroleum................ 9,178,312
9,400(a) Santa Fe Energy Resources............ 133,950
25,400 Schlumberger......................... 2,517,775
8,900 Sonat................................ 438,325
7,700 Sun Company.......................... 172,287
17,700 Tenneco.............................. 876,150
27,400 Texaco............................... 2,784,525
29,800 USX-Marathon Group................... 651,875
25,810 Union Pacific Resources Group........ 709,775
25,700 Unocal............................... 941,265
5,500(a) Western Atlas........................ 381,562
10,900 Williams Cos......................... 569,525
------------
55,478,112
------------
Health Care--8.7%
8,700(a) ALZA................................. 225,112
80,800 Abbott Laboratories.................. 4,090,500
6,800 Allergan............................. 207,400
65,800 American Home Products............... 4,030,250
27,400(a) Amgen................................ 1,679,962
5,900 Bard (C.R.).......................... 166,675
5,900 Bausch & Lomb........................ 199,125
28,200 Baxter International................. $ 1,173,825
12,900 Becton, Dickinson & Co............... 561,150
10,300(a) Beverly Enterprises.................. 127,462
12,000(a) Biomet............................... 193,500
18,300(a) Boston Scientific.................... 995,062
51,900 Bristol-Myers Squibb................. 5,488,425
69,450 Columbia/HCA Healthcare.............. 2,482,837
23,800 Corning.............................. 922,250
16,800(a) Humana............................... 306,600
56,600 Lilly (Eli).......................... 3,990,300
6,500 Manor Care........................... 255,125
24,800 Medtronic............................ 1,596,500
125,900 Merck & Co........................... 9,332,337
4,500 Millipore............................ 157,500
66,500 Pfizer............................... 5,502,875
52,600 Pharmacia & Upjohn................... 1,893,600
38,300 Schering-Plough...................... 2,451,200
8,500(a) St. Jude Medical..................... 335,750
22,400(a) Tenet Healthcare..................... 467,600
6,500 U.S. Surgical........................ 272,187
19,000 United Healthcare.................... 719,625
28,100 Warner-Lambert....................... 1,787,866
------------
51,612,600
------------
Interest Sensitive--13.8%
15,579 Aetna................................ 1,041,845
11,100 Ahmanson (H.F.) & Co................. 348,262
46,000 Allstate............................. 2,581,750
49,100 American Express..................... 2,307,700
21,200 American General..................... 789,700
48,600 American International Group......... 5,279,175
11,200 Aon.................................. 646,800
45,100 Banc One............................. 1,911,112
39,900 Bank of New York..................... 1,321,687
37,300 BankAmerica.......................... 3,412,950
15,800 Bank of Boston....................... 1,011,200
8,300 Bankers Trust New York............... 701,350
20,000 Barnett Banks........................ 762,500
5,600 Beneficial........................... 327,600
16,200 Boatmens Bancshares.................. 984,150
7,900 CIGNA................................ 1,030,950
45,200 Chase Manhattan...................... 3,875,900
18,000 Chubb................................ 900,000
49,800 Citicorp............................. 4,930,200
11,900 Comerica............................. 632,187
23,000 CoreStates Financial................. 1,118,375
17,000 Dean Witter, Discover & Co........... 1,000,875
113,000 Federal National Mortgage
Association........................ 4,421,125
18,500 Federal Home Loan Mortgage........... 1,868,500
10,900 Fifth Third Bancorp.................. 682,612
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996
Shares Common Stocks (continued) Value
-------- ------------
Interest Sensitive (continued)
14,600 First Bank Systems................... $ 963,600
32,800 First Chicago NBD.................... 1,672,800
28,500 First Union.......................... 2,073,375
27,200 Fleet Financial Group................ 1,356,600
8,500 General Re........................... 1,251,625
6,000 Golden West Financial................ 389,250
14,200 Great Western Financial.............. 397,600
14,200 Green Tree Financial................. 562,675
10,000 Household International.............. 885,000
12,100 ITT Hartford......................... 762,300
7,400 Jefferson Pilot...................... 420,875
4,000 Kaufman & Broad Home................. 48,000
23,800 Keycorp.............................. 1,109,675
10,800 Lincoln National..................... 523,800
11,900 Loews................................ 983,237
23,100 MBNA................................. 872,025
6,100 MGIC Investment...................... 418,612
13,500 Mellon Bank.......................... 879,187
17,500 Merrill Lynch & Co................... 1,229,375
19,300 Morgan (J.P.) & Co................... 1,667,037
15,700 Morgan Stanley Group................. 788,925
23,000 National City........................ 997,625
30,100 NationsBank.......................... 2,836,925
38,400 Norwest.............................. 1,684,800
35,300 PNC Bank............................. 1,279,625
9,700 Providian............................ 455,900
2,600 Pulte................................ 68,900
5,700 Republic New York.................... 434,625
13,000 Safeco............................... 490,750
10,900 Salomon.............................. 491,862
8,700 St. Paul Cos......................... 473,062
23,100 SunTrust Banks....................... 1,077,037
7,400 Torchmark............................ 357,975
6,800 Transamerica......................... 515,950
49,700 Travelers Group...................... 2,696,225
7,600 UNUM................................. 477,850
12,200 USF&G................................ 231,800
3,600 USLife............................... 112,500
16,000 U.S. Bancorp......................... 640,000
17,300 Wachovia............................. 929,875
9,700 Wells Fargo.......................... 2,591,119
------------
81,988,483
------------
Mining and Metals--1.4%
11,000(a) ARMCO................................ 41,250
4,400 ASARCO............................... 115,500
23,400 Alcan Aluminium...................... 769,275
18,000 Aluminum Co. of America.............. 1,055,250
37,000 Barrick Gold......................... 966,625
23,300 Battle Mountain Gold................. 177,662
11,500(a) Bethlehem Steel...................... 93,437
9,600 Cyprus Amax Minerals................. $ 217,200
14,400 Echo Bay Mines....................... 112,500
14,900 Engelhard............................ 271,925
20,200 Freeport-McMoRan Copper,
Cl. B.............................. 613,575
15,200 Homestake Mining..................... 216,600
17,400 Inco................................. 552,450
5,000 Inland Steel Industries.............. 80,625
10,300 Newmont Mining....................... 476,375
9,100 Nucor................................ 431,113
6,800 Phelps Dodge......................... 427,550
24,800 Placer Dome.......................... 595,200
6,600 Reynolds Metals...................... 371,250
13,600 Santa Fe Pacific Gold................ 161,500
8,700 USX-U.S. Steel....................... 237,075
9,400 Worthington Industries............... 195,050
------------
8,178,987
------------
Transportation--1.4%
9,400(a) AMR.................................. 789,600
15,800 Burlington Northern Santa Fe......... 1,301,525
21,900 CSX.................................. 944,437
4,100 Caliber System....................... 69,187
8,400 Conrail.............................. 799,050
4,600 Consolidated Freightways............. 110,400
8,200 Delta Air Lines...................... 581,175
5,900(a) Federal Express...................... 474,950
13,000 Norfolk Southern..................... 1,158,625
15,000 Southwest Airlines................... 337,500
6,600(a) USAir Group.......................... 114,675
25,200 Union Pacific........................ 1,414,350
2,900(a) Yellow............................... 37,882
------------
8,133,356
------------
Utilities--8.7%
19,600 ALLTEL............................... 597,800
166,900 AT&T................................. 5,820,637
51,600(a) Airtouch Communications.............. 1,348,050
19,400 American Electric Power.............. 805,100
56,900 Ameritech............................ 3,115,275
15,300 Baltimore Gas & Electric............. 416,925
45,300 Bell Allantic........................ 2,729,325
102,900 BellSouth............................ 4,193,175
15,700 Carolina Power & Light............... 567,166
21,700 Central & Southwest.................. 575,050
16,300 CINergy.............................. 539,937
24,300 Consolidated Edison.................. 710,775
15,000 DTE Energy........................... 451,875
18,400 Dominion Resources................... 694,600
21,000 Duke Power........................... 1,026,375
45,400 Edison International................. 896,650
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- -----------------------------------------------------------
Statement of Investments (continued) October 31, 1996
Shares Common Stocks (continued) Value
-------- ------------
Utilities (continued)
23,600 Entergy.............................. $ 660,800
19,000 FPL Group............................ 874,000
12,500 GPU.................................. 410,937
100,200 GTE.................................. 4,220,925
26,000 Houston Industries................... 594,750
71,200 MCI Communications................... 1,788,900
45,400 NYNEX................................ 2,020,300
14,900 Niagara Mohawk Power................. 126,650
7,100 Northern States Power................ 333,700
15,800 Ohio Edison.......................... 329,825
23,000 PECO Energy.......................... 580,750
16,700 PP&L Resources....................... 390,362
43,000 Pacific Gas & Electric............... 1,010,500
44,300 Pacific Telesis Group................ 1,506,200
30,400 PacifiCorp........................... 642,200
25,300 Public Service Enterprise Group...... 679,937
63,100 SBC Communications................... 3,068,237
69,700 Southern............................. 1,542,112
44,600 Sprint............................... 1,750,550
23,200 Texas Utilities...................... 939,600
49,400 US West.............................. 1,500,525
22,300 UniCom............................... 579,800
10,600 Union Electric....................... 409,425
40,200(a) WorldCom............................. 979,875
------------
51,429,575
------------
TOTAL COMMON STOCKS
(cost $409,363,085)................ $554,028,962
------------
------------
Principal SHORT-TERM
Amount INVESTMENTS--6.4% Value
---------- ------------
U.S.Treasury Bills:
$11,809,000(b) 5.15%, 11/14/1996.................... $ 11,788,334
4,340,000 5.11%, 11/21/1996.................... 4,328,325
5,379,000 5.06%, 12/12/1996.................... 5,348,340
3,010,000 5.22%, 1/2/1997...................... 2,984,385
5,254,000 4.89%, 1/9/1997...................... 5,203,930
6,211,000 5.36%, 1/16/1997..................... 6,145,412
1,123,000 5.30%, 1/23/1997..................... 1,110,052
933,000 5.34%, 1/30/1997..................... 921,300
------------
TOTAL SHORT-TERM
INVESTMENTS
(cost $37,830,467)................. $ 37,830,078
------------
------------
TOTAL INVESTMENTS
(cost $447,193,552).................................100.0% $591,859,040
------ ------------
------ ------------
LIABILITIES LESS CASH AND
RECEIVABLES...........................................0.0% $ (228,354)
------ ------------
------ ------------
NET ASSETS............................................100.0% $591,630,686
------ ------------
------ ------------
Notes to Statement of Investments:
- ----------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open financial future positions.
<PAGE>
Statement of Financial Futures October 31, 1996
Financial Futures Purchased;
- ----------------------------
Market Value Unrealized
Number of Covered Appreciation
Issuer Contracts by Contracts Expiration at 10/31/96
- ------ --------- ------------ ---------- ------------
Standard & Poor's 500 110 $39,030,750 December '96 $683,475
--------
--------
See notes to financial statements.
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ----------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1996
<TABLE>
<CAPTION>
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments........... $447,193,552 $591,859,040
Cash.............................................................. 1,008,677
Dividends receivable.............................................. 756,794
Receivable for futures variation margin--Note 4(a)................ 374,050
Receivable for investment securities sold......................... 27,863
Prepaid expenses.................................................. 34,179
------------
594,060,603
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates..................... 224,874
Payable for Common Stock redeemed................................. 2,057,520
Accrued expenses.................................................. 147,523
------------
2,429,917
------------
NET ASSETS.......................................................................... $591,630,686
------------
------------
REPRESENTED BY: Paid-in capital................................................... $423,335,774
Accumulated undistributed investment income--net.................. 7,475,536
Accumulated net realized gain (loss) on investments............... 15,470,413
Accumulated gross unrealized appreciation (depreciation)
on investments (including $683,475 net unrealized
appreciation on financial futures)--Note 4(b)................... 145,348,963
------------
NET ASSETS.......................................................................... $591,630,686
------------
------------
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized)..................... 26,817,475
NET ASSET VALUE, offering and redemption price per share............................ $22.06
------
------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ------------------------------------------------------------------------------
Statement of Operations Year Ended October 31, 1996
<TABLE>
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $60,905 foreign taxes withheld
at source)......................................................... $ 9,780,073
Interest............................................................. 1,626,652
-----------
Total Income................................................... $11,406,725
EXPENSES: Management fee--Note 3(a)............................................ 1,362,926
Shareholder servicing costs--Note 3(b)............................... 1,022,106
Registration fees.................................................... 90,412
Professional fees.................................................... 67,612
Prospectus and shareholders' reports................................. 53,506
Directors' fees and expenses--Note 3(c).............................. 33,735
Custodian fees....................................................... 4,161
Miscellaneous........................................................ 4,520
-----------
Total Expenses................................................. 2,638,978
-----------
INVESTMENT INCOME--NET............................................................... 8,767,747
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4
Net realized gain (loss) on investments.............................. $11,890,436
Net realized gain (loss) on financial futures........................ 6,172,657
-----------
Net Realized Gain (Loss)....................................... 18,063,093
Net unrealized appreciation (depreciation) on investments
(including $710,875 net unrealized appreciation on
financial futures)--Note 4(b)...................................... 67,183,468
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............................... 85,246,561
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................. $94,014,308
-----------
-----------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ----------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1996 October 31, 1995
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 8,767,747 $ 6,157,690
Net realized gain (loss) on investments................................ 18,063,093 4,310,640
Net unrealized appreciation (depreciation) on investments.............. 67,183,468 54,324,576
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations...... 94,014,308 64,792,906
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:................................................ (6,205,887) (6,077,935)
Net realized gain on investments....................................... (4,169,581) (19,477,910)
------------- -------------
Total Dividends...................................................... (10,375,468) (25,555,845)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from shares sold:......................................... 307,525,173 142,531,859
Dividends reinvested................................................... 9,406,794 22,101,817
Cost of shares redeemed................................................ (145,087,307) (112,925,618)
------------- -------------
Increase (Decrease) in Net Assets from Capital Stock Transactions.... 171,844,660 51,708,058
------------- -------------
Total Increase (Decrease) in Net Assets............................ 255,483,500 90,945,119
NET ASSETS:
Beginning of Period.................................................... 336,147,186 245,202,067
------------- -------------
End of Period.......................................................... $591,630,686 $336,147,186
------------- -------------
------------- -------------
Undistributed investment income--net..................................... $ 7,475,536 $ 4,913,676
------------- -------------
CAPITAL SHARE TRANSACTIONS: Shares Shares
------------- -------------
Shares sold:........................................................... 15,194,675 8,633,225
Shares issued for dividends reinvested................................. 496,663 1,546,663
Shares redeemed........................................................ (7,162,184) (6,829,736)
------------- -------------
Net Increase (Decrease) in Shares Outstanding........................ 8,529,154 3,350,152
------------- -------------
------------- -------------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.--See Note 1
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net assets
and other supplemental data for each period indicated. This information has
been derived from information provided in the Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended October 31,
-----------------------------------------------------
PER SHARE DATA: 1996 1995 1994 1993 1992
----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $18.38 $16.41 $16.88 $15.16 $14.16
------ ------ ------ ------ ------
Investment Operations:
Investment income--net................................... .33 .36 .39 .30 .41
Net realized and unrealized gain (loss)
on investments......................................... 3.89 3.36 .11 1.86 .97
------ ------ ------ ------ ------
Total from Investment Operations......................... 4.22 3.72 .50 2.16 1.38
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.................... (.32) (.42) (.31) (.40) (.38)
Dividends from net realized gain on investments.......... (.22) (1.33) (.66) (.04) --
------ ------ ------ ------ ------
Total Distributions...................................... (.54) (1.75) (.97) (.44) (.38)
------ ------ ------ ------ ------
Net asset value, end of period........................... $22.06 $18.38 $16.41 $16.88 $15.16
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN.................................... 23.41% 25.68% 3.14% 14.49% 9.90%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. .57% .55% .61% .39% --
Ratio of net investment income
to average net assets.................................. 1.90% 2.75% 2.26% 2.36% 3.04%
Decrease reflected in above expense ratios
due to undertakings by WFNIA and Dreyfus............... -- -- .03% .14% .65%
Portfolio Turnover Rate.................................. 5.22% 3.66% 18.81% 3.77% 3.10%
Average commission rate paid*............................ $.0297 -- -- -- --
Net Assets, end of period (000's Omitted)................ $591,631 $336,147 $245,202 $281,403 $92,598
<FN>
- ---------------------
*For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--See Note 1
- ---------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus S&P 500 Index Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company. The Fund's investment objective is to provide investment
results that correspond to the price and yield performance of publicly-traded
common stocks in the aggregate, as represented by the Standard & Poor's 500
Composite Stock Price Index. Effective November 13, 1995, The Dreyfus
Corporation ("Dreyfus") serves as the Fund's manager and Mellon Equity
Associates ("Mellon Equity"), an affiliate of Dreyfus, serves as the Fund's
index manager. Effective November 13, 1995, Boston Safe Deposit and Trust
Company, an affiliate of Dreyfus, became the Fund's custodian. Dreyfus is a
direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. acts
as the distributor of the Fund's shares, which are sold to the public without a
sales charge.
Prior to November 13, 1995, Wells Fargo Nikko Investment Advisors
("WFNIA") served as the Fund's index manager. In addition, Wells Fargo
Institutional Trust Company, N.A. ("WFITC"), an affiliate of WFNIA, was the
custodian of the Fund's investments. Dreyfus served as the Fund's
administrator.
Effective November 13, 1995, the Fund changed its name from "Peoples
Index Fund, Inc." to "Dreyfus S&P 500 Index Fund".
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (including financial
futures) are valued at the last sales price on the securities exchange on which
such securities are primarily traded or at the last sales price on the national
securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(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>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--see Note 1
- --------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. For the period ended October 31, 1996, the Fund did not borrow
under the line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Effective November 13, 1995, pursuant to a Management Agreement with
Dreyfus, the management fee is computed at the annual rate of .295 of 1% of the
value of the Fund's average daily net assets, and is payable monthly. Dreyfus
has agreed to pay Mellon Equity a monthly fee at the annual rate of .095 of 1%
of the value of the Fund's average daily net assets. Prior to November 13,
1995, the Fund had an Index Management Agreement with WFNIA and an
Administration Agreement with Dreyfus, whereby WFNIA and Dreyfus received
annual fees of .10 of 1% and .20 of 1%, respectively, of the value of the
Fund's average daily net assets. The Management Agreement further provides that
if in any full fiscal year 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 Dreyfus, or Dreyfus may deduct from the fees paid
to Mellon Equity or Dreyfus and Mellon Equity will bear, in the same proportion
as in the agreement, 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 21/2% 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. There was no expense reimbursement for the
year ended October 31, 1996.
However, Dreyfus has undertaken from November 6, 1996, that if the Fund's
aggregate expenses (exclusive of certain expenses as described above) exceed
.50 of 1% of the Fund's average daily net assets, the Fund may deduct from the
management fee payable to Dreyfus to the extent of such excess.
In addition, for the period from November 1, 1995 through November 13,
1995 WFITC earned $4,161 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 Dreyfus, an amount
not to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses 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 period ended October 31, 1996, the Fund was charged an aggregate of
$851,214 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for the
Fund. Such compensation amounted to $70,303 during the period ended October
31, 1996.
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--see Note 1
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A 1% redemption fee is charged on certain redemptions of Fund shares
where the redemption occurs within the initial six-month period following the
opening of the account. During the period ended October 31, 1996, redemption
fees amounted to $12,975.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $173,674,512 and $22,427,505, 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 contract at the close of each day's
trading. Accordingly, variation margin payments are received or made to reflect
daily unrealized gains or losses. When the contracts are closed, the Fund
recognizes a realized gain or loss. These investments require initial margin
deposits with a custodian, which consist of cash or cash equivalents, up to
approximately 10% of the contract amount. The amount of these deposits is
determined by the exchange or Board of Trade on which the contract is traded
and is subject to change. Contracts open as of October 31, 1996 and their
related unrealized market appreciation are set forth in the Statement of
Financial Futures.
(b) At October 31, 1996, accumulated net unrealized appreciation on
investments and financial futures was $145,348,963, consisting of $152,453,934
gross unrealized appreciation and $7,104,971 gross unrealized depreciation.
At October 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--see Note 1
- --------------------------------------------------------------------
To the Shareholders and Board of Directors of
Dreyfus S&P 500 Index Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus S&P 500 Index Fund (the "Fund"), including the statements of
investments and financial futures, as of October 31, 1996, and the related
statements of operations for the year then ended, the changes in net assets for
each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus S&P 500 Index Fund at October 31, 1996, 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 13, 1996
<PAGE>
Dreyfus S&P 500 Index Fund
(formerly Peoples Index Fund, Inc.)--see Note 1
- --------------------------------------------------------------
Important Tax Information (Unaudited)
For Federal tax purposes the Fund hereby designates $.17 per share as a
long-term capital gain distribution of the $.535 per share paid on December 28,
1995.
The Fund also designates 93.08% of the ordinary dividends paid during the
fiscal year ended October 31, 1996 as qualifying for the corporate dividends
received deduction. Shareholders will receive notification in January 1997 of
the percentage applicable to the preparation of their 1996 tax returns.
Proxy Results (Unaudited)
A special meeting of stockholders of the Fund was held on July 26, 1996,
at which shareholders approved the election of the following Board members:
Joseph S. DiMartino, by a vote of 14,470,978 shares in favor of and 1,471,989
shares withholding authority to vote; John M. Fraser, Jr., by a vote of
13,821,702 shares in favor of and 2,121,265 shares withholding authority to
vote; Ehud Houminer, by a vote of 14,486,721 shares in favor of and 1,456,247
shares withholding authority to vote; David J. Mahoney, by a vote of 14,211,341
shares in favor of and 1,731,627 shares withholding authority to vote; Gloria
Messinger, by a vote of 14,115,054 shares in favor of and 1,827,914 shares
withholding authority to vote; David P. Feldman, by a vote of 14,489,828 shares
in favor of and 1,453,139 shares withholding authority to vote, Jack R. Meyer,
by a vote of 14,491,694 shares in favor of and 1,451,274 shares withholding
authority to vote; John Szarkowski, by a vote of 13, 823,620 shares in favor of
and 2,119,347 shares withholding authority to vote; and Anne Wexler, by a vote
of 14,111,868 shares in favor of and 1,831,099 shares withholding authority to
vote. The shareholders also ratified the selection Coopers & Lybrand L.L.P. as
independent auditors by a vote of 15,641,557 shares in favor of, and 95,268
shares against the selection, with 602,142 shares abstaining (including broker
non-votes). Also considered at the meeting was a change from fundamental
policy to a non-fundamental policy an investment restriction which prohibits
the Fund from purchasing securities of any company having less than three years
continuous operations if such purchase would cause the value of such
investments in all such companies to exceed 5% of the value of the Fund's total
assets. The change from fundamental to non-fundamental policy was proposed to
afford the Fund the investment flexibility to permit it to be competitive with
other similar funds, and was approved by shareholders by a vote of 11,413,419
shares with 206,142 shares voting against the change and 3,420,960 shares
abstaining (including broker non-votes).
<PAGE>
Dreyfus S&P 500 Index Fund
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 02109
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 078AR9610
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS S&P 500 INDEX FUND, INC. AND THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
_________________________________________________
| STANDARD |
| DREYFUS & POOR'S 500 |
| PERIOD S&P 500 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 |
| 10/31/96 23,229 24,315 |
------------------------------------------------
*Source: Lipper Analytical Services, Inc.
