<PAGE>
Small Cap Stock
Index Fund
Annual Report
October 31, 1997
<PAGE>
Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
The letter that follows is the first annual report of Dreyfus Small Cap Stock
Index Fund, a mutual fund that began operations June 30 of this year. It is a
pleasure to introduce the Portfolio manager, Steven A. Falci, to those who have
invested in this mutual fund.
Steven Falci is a portfolio manager for our corporate affiliate, Mellon
Equity Associates, which is the Portfolio's sub-investment adviser. He has broad
experience in portfolio management, asset allocation and the application of
quantitative techniques to create investment solutions.
Prior to joining Mellon Equity Associates in April 1994, Steve was the
Managing Director--Pension Investments at NYNEX Corporation where he oversaw
the internally managed assets of the NYNEX Pension Fund and NYNEX Foundation. He
was responsible for equity and fixed income portfolio management and trading,
investment strategy and the generation of new portfolio applications.
Steve is a chartered financial analyst and is a member of the Association
for Investment Management and Research. He received an M.B.A. in finance
and a B.S. in economics, both from New York University.
Sincerely,
/s/ STEPHEN E. CANTER
Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
It is a pleasure to send you this first report for Dreyfus Small Cap Stock
Index Fund. The Fund began operations June 30, 1997 and reached the date
selected for the close of its fiscal year on October 31, 1997. During that
four-month period, the Fund achieved a total return of 11.20%.* This compares
to a total return of 11.16% for the Standard & Poor's Small Cap 600 Index which
serves as the Fund's benchmark for the same four-month period.
Economic Review
The U.S. economy has registered a step-up in growth in 1997 and incoming
evidence suggests that momentum is still building. Stronger growth this year has
helped keep corporate profits buoyant despite a substantially tighter labor
market. This is because nationwide shortages of labor have so far not generated
much wage inflation. Moreover, price inflation has decelerated markedly during
the year suppressed by the strong dollar, import competition and continued
disinflation in health care.
Although the Federal Reserve Board (the "Fed") has held a tightening bias
since mid-1996, the central bank has raised interest rates only once this year.
Expectations for further hikes have been continually postponed. They were first
dampened by the surprising drop in this year's price inflation, and more
recently by unfolding crises in foreign economies. Both events have helped to
cap short-term rates and to pull long-term interest rates lower since the
spring.
Real GDP growth accelerated to about 4% this year from 3% in 1996. Virtually
all economic sectors have been strong so far. Consumer spending has been
supported by rising real incomes. Capital spending has been very robust and
incoming orders imply continued strength. Even housing demand, typically slowing
at this phase of the business cycle, has reached new highs. Most incoming
signals support sustained fast growth. The exception is that exporters' new
orders have marginally slowed in recent months, indicating that economic turmoil
overseas may be impacting this sector. By contrast, imports have been very
robust and, if their growth is sustained, could help mitigate the economic
weakness abroad.
Overall corporate profits have continued to trend higher, although some
companies have been hurt by events overseas and the stronger dollar.
Domestically generated profits have typically remained solid, helped by
strong growth and contained wages.
Market Overview
Even though the equity markets stumbled badly in late October, the fiscal
year ended October 31, 1997 saw solid gains. Measured by price changes alone,
excluding income, the Dow Jones Industrial Average gained 23.58% for the 12
months, the Standard & Poor's 500 Stock Index 29.96%, the Nasdaq Composite
30.43% and the Russell 2000, 27.52%. These were the gains after the drop of the
last week in October, and before counting the rebounds that occurred in the
first week of November.
In retrospect, it is apparent that stock valuations had been riding for a
fall. There was weakness in March when the Fed raised interest rates for the
first time in two years. By early summer, equity prices recovered and soared to
new highs. Then, however, some nervousness set in, related mainly to concern
about high stock valuations and fears of another Fed move to cool off the
bubbling economy. Weakness was apparent mainly in companies with large
capitalization, while smaller companies, such as those listed in the Russell
2000 Index, gained ground.
As Autumn leaves began to turn, the stock market as a whole regained its wind
- -- but not for long. The relatively high valuations that had prevailed were
vulnerable to any major unpleasant surprise. That came in late October from an
unexpected source -- the Far East. Severe market setbacks in Hong Kong and
Southeast Asia, together with drops in their foreign exchange rates, triggered
the fall in the U.S. market.
<PAGE>
Richard Hoey, Chief Economist for the Dreyfus Corporation, reviewing the
recent events, said that the U.S. stock market had a selling panic, followed by
a buying panic. The underlying logic of it all was valuation, he observed.
When the Dow Jones Index peaked at above 8200 in early August, the stock
market was simply discounting favorable U.S. fundamentals into high stock
prices, said Hoey. The financial crisis in Asia was the trigger for a
correction of the major problem for the U.S. stock market: high valuation.
The market drop in Asia was caused by serious fundamental problems of excess
productive capacity, overvalued real estate and a banking system crisis.
European markets, of course, reacted to the Asian weakness, but fell less
severely because their economies are more stable. In the U.S., the sharp price
drop, followed by a vigorous rebound, reflected an economy with much greater
underlying strength.
The influx of investors into stocks when prices dipped was a good augury for
the future. The American investing public appears to be convinced that equities
are a good place to put money for the long range, when their prices are
attractive, despite the recent volatility of the market averages.
Portfolio Focus
As discussed above, the last year was an excellent one for U.S. equities.
Large capitalization stocks, midcaps and small caps all provided high returns
for the full year. Large caps predominated for most of the year, but small caps
and midcaps rebounded strongly in the third quarter of 1997. Indeed, in the
four months of the Fund's existence, small cap stocks outperformed large cap
and midcap issues.
It would be highly unusual if the year ahead matched or exceeded the 1997
record. However small cap companies may not be as vulnerable to some of the
factors that could affect larger cap issues, such as turmoil in Asia and threats
to exports due to the high exchange rate for the U.S. dollar.
We look forward to continued opportunities to serve your investment needs by
deploying assets in the small cap universe.
Sincerely,
/s/ STEVEN A. FALCI
Steven A. Falci
Portfolio Manager
November 18, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Standard & Poor's Small
600 Index is a broad-based index of 600 companies with market capitalization
generally ranging from the 50th percentile down to the 83rd percentile of the
stock universe and is a widely accepted, unmanaged index of small cap stock
market performance. The Fund holds stocks generally in the same proportion as
each stock within the index itself. Therefore, the Fund's performance should
closely match that of the Index.
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments October 31, 1997
<TABLE>
<CAPTION>
Shares COMMON STOCKS--99.3% Value
---------- ---------------
<S> <C> <C>
Basic Industries--6.0%
900 AptarGroup................. $ 49,444
900(a) Buckeye Cellulose.......... 37,350
400 Butler Manufacturing....... 13,550
600 Cambrex.................... 28,763
1,600 Caraustar Industries....... 55,000
2,300(a) Champion Enterprises....... 40,394
1,000 ChemFirst.................. 25,250
700(a) Dravo...................... 7,350
1,100 Geon....................... 23,856
1,600(a) Griffon.................... 25,300
900 Hughes Supply.............. 31,388
1,300(a) Insituform Technol, Cl. A.. 12,350
900 Juno Lighting.............. 16,200
1,100 Lilly Industries, Cl. A.... 20,831
700 Lone Star Industries....... 38,456
400 MacDermid.................. 29,200
800(a) McWhorter Technololgies.... 20,650
800 Medusa..................... 33,800
1,600 Mississippi Chemical....... 29,400
2,600(a) Morrison Knudsen........... 30,550
700 Mosinee Paper.............. 19,775
880 Myers Industries........... 15,455
1,200 OM Group................... 45,300
2,200 Oakwood Homes.............. 57,887
700 O'Sullivan................. 7,350
600 Pope & Talbot.............. 9,975
700 Quaker Chemical............ 12,731
600 Republic Group............. 11,250
800 Ryland Group............... 14,300
1,000 Schweitzer-Mauduit International 42,125
1,100(a) Scotts, Cl. A.............. 29,425
900(a) Shorewood Packaging........ 22,275
500 Skyline.................... 14,500
700(a) Southern Energy Homes...... 6,431
600 Stone & Webster............ 27,825
600(a) TETRA Technologies......... 13,838
800 TJ International........... 18,400
800 Tredegar Industries........ 55,900
800 Universal Forest Products.. 12,000
1,300 Valmont Industries......... 29,738
900 W.H. Brady................. 28,800
600 Wynn's International....... 20,362
-------------
1,084,724
-------------
Capital Spending--20.5%
900 AAR........................ 32,231
1,000 ABM Industries............. 27,125
1,700(a) ADVO....................... 38,144
2,400(a) Acxiom..................... 39,450
700(a) Alliant Techsystems........ 41,650
400 Amcast Industrial.......... 10,150
1,800(a) American Management Systems 38,925
<CAPTION>
Shares COMMON STOCKS (continued) Value
- ---------- ---------------
<S> <C> <C>
Capital Spending (continued)
800 Analysts International..... $ 36,100
400 Angelica................... 7,800
900 Applied Industrial Technologies 26,156
800 Applied Power, Cl. A....... 49,500
500 Aquarion................... 14,125
1,400 Arctic Cat................. 16,450
2,700(a) Aspect Telecommunications.. 64,800
400(a) Astec Industries........... 6,800
1,200(a) Auspex Systems............. 13,950
1,300 BMC Industries............. 41,844
1,500(a) BISYS Group................ 46,688
1,300 Baldor Electric............ 38,025
1,300(a) BancTec.................... 29,738
800(a) Billing Information Concepts 31,400
900 Blount International, Cl. A 47,306
1,200(a) Boole & Babbage............ 34,800
1,200(a) Boston Technology.......... 32,550
1,000(a) Broderbund Software........ 29,000
1,000(a) CDI........................ 39,250
1,100(a) CIBER...................... 48,675
800 CLARCOR.................... 22,950
1,100(a) Catalina Marketing......... 50,256
300(a) Centigram Communications... 4,988
400 Central Parking............ 21,850
1,600(a) Cerner..................... 38,800
2,000(a) Cognex..................... 53,500
1,200(a) Comverse Technology........ 49,500
400 Consumers Water............ 7,300
1,500 Dames & Moore Group........ 18,656
800 Daniel Industries.......... 16,100
1,600(a) DeVRY...................... 42,200
800(a) Dialogic................... 33,000
600(a) Digi International......... 9,075
600(a) Dionex..................... 29,925
1,000(a) Electroglas................ 19,000
800(a) Envoy...................... 22,400
1,200(a) Etec Systems............... 53,550
800(a) Express Scripts, Cl. A..... 45,100
800 Fair Issac & Co............ 34,750
900(a) Figgie International, Cl. A 12,038
700(a) FileNet.................... 15,750
700 Fisher Scientific International 32,200
700(a) Flow International......... 7,350
1,000 G & K Services, Cl. A...... 36,000
1,000 Gallagher (Arthur J.)...... 35,000
1,100 Gerber Scientific.......... 22,825
1,100(a) Global Industrial Technologies 18,769
800 Greenfield Industries...... 30,300
900 Henry (Jack) & Association. 23,175
600 Hilb, Rogal & Hamilton..... 10,875
1,000(a) Hyperion Software.......... 38,125
</TABLE>
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
<TABLE>
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Capital Spending (continued)
1,800(a) Interim Services........... $ 47,138
1,400(a) InterVoice................. 13,125
2,500 JLG Industries............. 31,719
900 Kaman, Cl. A............... 16,313
3,500(a) Keane...................... 103,688
600(a) Kronos..................... 17,400
1,000 Kuhlman.................... 34,875
1,100(a) Kulicke & Soffa Industries. 28,325
500 Lindsay Manufacturing...... 21,688
800(a) Lydall..................... 16,400
950 Manitowoc.................. 28,797
700(a) Material Sciences.......... 10,413
1,200(a) Metro Networks............. 37,200
700(a) MicroAge................... 15,400
1,800 Mutual Risk Management..... 46,688
900(a) NFO Worldwide.............. 16,200
300(a) Nashua..................... 4,088
700 National Computer Systems.. 26,600
1,300 National Data.............. 48,018
400 National Presto Industries. 15,475
1,000(a) Network Equipment Technologies 17,000
2,100(a) Network General............ 42,525
1,100 Norrell.................... 32,037
1,300(a) OHM........................ 11,212
1,500(a) Orbital Sciences........... 36,563
2,800(a) PLATINUM Technology........ 67,900
600 Pacific Scientific......... 8,775
600(a) Pharmaceutical Marketing Services 6,712
900 Philadelphia Suburban...... 20,306
600(a) Photronics................. 25,725
1,600 PictureTel................. 14,800
900(a) Platinum Software.......... 9,337
1,200(a) Primark.................... 36,000
600(a) Progress Software.......... 12,825
700 Quanex..................... 19,337
1,000 Regal Beloit............... 26,875
1,500 Regis...................... 36,000
1,600(a) Rexel...................... 35,800
600 Robbins & Myers............ 22,725
2,000 Rollins Truck Leasing...... 33,250
1,600 Roper Industries........... 42,700
2,800(a) S3......................... 24,850
900 SEI Investments............ 38,306
600(a) SPS Technologies........... 27,750
700 SPX........................ 45,675
1,100 Smith (A.O.)............... 45,581
400 Southern Cal Water......... 8,775
900(a) SpeedFam International..... 33,412
900 Standex International...... 31,500
2,000(a) Sterling Software.......... 68,250
1,600 Sturm Ruger................ 30,100
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Capital Spending (continued)
800(a) Symmetricom................ $ 12,250
2,000(a) System Software............ 23,500
1,000(a) TCSI....................... 6,875
2,100(a) Tech Data.................. 93,450
800 Telxon..................... 20,600
700 Thomas Industries.......... 21,000
1,200 True North Communications.. 27,300
1,700 United Water Resources..... 28,156
1,000(a) Valence Technology......... 8,125
2,500(a) Vanstar.................... 32,656
1,200(a) Vantive.................... 30,300
800(a) Viewlogic Systems.......... 19,400
600(a) Volt Information Sciences.. 41,400
1,100 WMS Industries............. 26,743
400(a) Wall Data.................. 6,550
500(a) Whittaker.................. 5,281
1,100(a) Xircom..................... 11,000
1,200(a) Zebra Technologies, Cl. A.. 37,500
600 Zero....................... 16,125
-------------
3,698,303
-------------
Consumer Cyclical--18.2%
1,600 Apogee Enterprises......... 38,200
1,700 Applebee's International... 37,719
2,200 Arbor Drugs................ 58,850
600(a) Ashworth................... 5,963
1,100 Authentic Fitness.......... 19,250
2,100(a) Aztar...................... 14,963
1,200(a) BE Aerospace............... 33,750
700 Baker (J.)................. 5,075
600 Bassett Furniture.......... 16,800
700(a) Bell Sports................ 6,475
900 Bowne & Co................. 31,388
1,700 Breed Technologies......... 37,506
900 Brown Group................ 13,613
600(a) Building Materials Holding. 7,500
400(a) C-COR Electronics.......... 6,400
2,000 CKE Restaurants............ 79,875
1,000(a) California Microwave....... 16,063
700(a) Carmike Cinemas, Cl. A..... 22,750
800(a) Carson Pirie Scott......... 38,550
1,500 Casey's General Stores..... 36,188
1,400 Cato....................... 11,988
500(a) Cheesecake Factory......... 15,750
4,700(a) Cineplex Odeon............. 6,463
1,200(a) Cone Mills................. 10,425
1,000(a) Consolidated Products...... 19,250
800 Cross (A.T.), Cl. A........ 8,100
400(a) Damark International, Cl. A 4,650
1,100(a) Digital Microwave.......... 39,600
2,400 DiMon...................... 62,250
1,100(a) Discount Auto Parts 23,031
</TABLE>
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
<TABLE>
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Consumer Cyclical (continued)
1,000(a) Dixie Group................ $ 11,875
1,100(a) Dress Barn................. 27,913
1,400(a) Eagle Hardware & Garden.... 23,800
1,400 Ethan Allen Interiors...... 49,613
900(a) Fabri-Centers of America, Cl.A 19,463
1,800 Fedders.................... 10,800
800(a) Fieldcrest Cannon.......... 26,750
1,000(a) Filene's Basement.......... 7,375
2,000(a) Foodmaker.................. 32,875
1,500(a) Footstar................... 40,781
1,400(a) Franklin Covey............. 31,413
400(a) GC Cos..................... 17,200
1,100(a) Galey & Lord............... 20,213
1,200(a) Galoob Toys................ 15,825
1,700(a) Gentex..................... 41,650
500(a) Gottschalks................ 4,063
2,600(a) Grand Casinos.............. 34,938
1,000 Guilford Mills............. 23,875
1,200(a) Gymboree................... 29,100
800(a) HA-LO Industries........... 22,400
400 Haggar..................... 6,150
800 Hancock Fabrics............ 10,850
1,600(a) Hartmarx................... 14,000
900(a) Hollywood Park............. 16,875
600 Huffy...................... 9,488
500(a) IHOP....................... 16,875
1,100 Interface, Cl. A........... 31,763
600(a) Itron...................... 12,300
500 Johnston Industries........ 2,906
1,400(a) Just For Feet.............. 20,738
1,200 Justin Industries.......... 15,675
1,000 K2......................... 25,313
300 K-Swiss.................... 4,913
1,000 Kellwood................... 34,563
900 La-Z Boy................... 33,637
1,400(a) Landry's Seafood Restaurants 39,200
500 Lillian Vernon............. 8,062
1,100 Luby's Cafeterias.......... 21,931
1,200 Marcus..................... 33,600
1,100(a) Men's Warehouse............ 42,625
1,200 Merrill.................... 26,850
1,500(a) Michaels Stores............ 45,093
1,900(a) Mohawk Industries.......... 58,425
1,100(a) NTN Communications......... 2,131
700 Nash Finch................. 14,087
1,900(a) Nautica Enterprises........ 50,587
600 New England Business Service 17,475
1,000(a) O'Reilly Automotive........ 24,375
600 Oshkosh B'Gosh............. 18,300
600 Oxford Industries.......... 20,850
2,000(a) P-COM...................... 40,250
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Consumer Cyclical (continued)
1,625(a) Paxar...................... $ 27,625
1,300 Phillips-Van Heusen........ 18,525
3,150 Pier 1 Imports............. 57,487
500 Pillowtex.................. 13,625
200 Plenum Publishing.......... 10,250
1,500(a) Primadonna Resorts......... 26,250
2,300(a) Prime Hospitality.......... 46,862
3,000(a) Proffitts.................. 86,063
1,600(a) Regal Cinemas.............. 36,800
2,300 Richfood Holdings.......... 55,488
600 Rival...................... 9,300
2,600 Ross Stores................ 97,175
1,100(a) Royal Appliance Manufacturing 8,662
800(a) Ruby Tuesday............... 21,750
1,100 Russ Berrie & Co........... 29,975
2,300(a) Ryan's Family Steak House.. 19,837
1,300 Rykoff-Sexton.............. 27,950
1,000 St. John Knits............. 40,187
2,300(a) Shoney's................... 10,781
1,900(a) Shopko Stores.............. 47,618
900(a) ShowBiz Pizza Time......... 19,125
600 Showboat................... 11,925
900 Simpson Industries......... 10,687
600(a) Sonic...................... 15,450
600 Spartan Motors............. 4,162
1,500(a) Sports Authority........... 28,406
600 Standard Motor Product..... 13,125
1,000 Standard Products.......... 26,875
1,400(a) Stein Mart................. 40,950
2,700 Stride Rite................ 31,725
400(a) Swiss Army Brands.......... 4,300
1,600(a) TBC........................ 16,400
1,200 TCBY Enterprises........... 7,500
1,100 Thomas Nelson.............. 12,787
600 Thor Industries............ 17,362
500(a) Timberland, Cl. A.......... 36,062
600 Toro....................... 25,650
1,400(a) Tultex..................... 7,000
2,000(a) Valassis Communications.... 59,000
900 Wabash National............ 26,887
1,700(a) Westwood One............... 52,168
1,300(a) Whole Foods Market......... 51,025
1,200(a) Williams-Sonoma............ 48,150
1,200 Winnebago Industries....... 9,075
1,900 Wolverine World Wide....... 41,800
1,600(a) World Color Press.......... 40,500
-------------
3,290,500
-------------
Consumer Staples--3.1%
900(a) Canandaigua Brands, Cl. A.. 44,663
500 Chemed..................... 20,250
3,000 Chiquita Brands International 50,438
</TABLE>
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
<TABLE>
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Consumer Staples (continued)
400 Coca-Cola Bottling......... $ 23,800
1,600 DEKALB Genetics, Cl. B..... 57,400
1,300 Delta and Pine Land........ 48,425
1,200 Earthgrains................ 49,350
400 GoodMark Foods............. 6,600
800(a) Ionics..................... 30,650
400(a) J & J Snack Foods.......... 6,800
1,700(a) Mycogen.................... 36,125
700(a) Paragon Trade Brands....... 13,343
300 Penwest.................... 11,250
2,000(a) Smithfield Foods........... 59,750
1,400(a) Triarc Cos., Cl. A......... 31,675
700(a) USA Detergents............. 7,350
1,200(a) Ultratech Stepper.......... 32,700
1,500 X-Rite..................... 29,062
-------------
559,631
-------------
Electronics--8.7%
2,500(a) Anixter International...... 47,188
1,500(a) Applied Magnetics.......... 34,500
700(a) Bell Industries............ 11,244
600(a) Benchmark Electronics...... 14,963
2,100(a) C-Cube Microsystems........ 49,875
1,600 Checkpoint Systems......... 25,600
1,000(a) Chips/Technologies......... 15,875
500(a) Coherent................... 19,500
900(a) Cyrix...................... 26,550
1,300 Dallas Semiconductor....... 63,538
800(a) Dynatech................... 27,300
600(a) Electro Scientific Industries 29,100
800 Fluke...................... 19,250
700(a) Hadco...................... 38,763
600 Harmon Industries.......... 16,275
800 Innovex.................... 20,650
2,400(a) Input/Output............... 64,350
600 Integrated Circuit Systems. 20,550
2,200(a) International Rectifier.... 30,113
2,000(a) KEMET...................... 43,500
1,200(a) Kent Electronics........... 41,925
2,500(a) Komag...................... 43,281
1,300(a) Lattice Semiconductor...... 65,081
800(a) Marshall Industries........ 28,050
1,700 Methode Electronics, Cl. A. 33,575
2,700(a) Microchip Technology....... 107,663
1,800(a) Novellus Systems........... 80,100
1,100(a) Oak Industries............. 31,556
700 Park Electrochemical....... 19,863
1,200 Pioneer Standard Electronics 19,650
800(a) Plexus..................... 23,800
2,300(a) Read-Rite.................. 45,712
900(a) Sanmina.................... 67,275
700(a) Standard Microsystems...... 8,093
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Electronics (continued)
400(a) Three-Five Systems......... $ 8,300
1,200(a) Tracor..................... 32,100
600(a) Trimble Navigation......... 12,150
1,200(a) Unitrode................... 32,175
2,500(a) VLSI Technology............ 74,062
2,100(a) Vicor...................... 67,725
1,700(a) Vitesse Semiconductor...... 73,737
600 Watkins-Johnson............ 18,600
1,000(a) Zilog...................... 19,062
-------------
1,572,219
-------------
Energy--8.1%
1,500 Atmos Energy............... 37,875
1,400(a) Barrett Resources.......... 49,263
1,400(a) Benton Oil & Gas........... 28,175
1,000(a) Box Energy, Cl. B.......... 7,063
1,500 Cabot Oil & Gas, Cl. A..... 36,000
1,900 Camco International........ 137,275
500 Cascade Natural Gas........ 8,344
600 Connecticut Energy......... 14,513
1,200 Cross Timbers Oil.......... 32,025
1,700 Devon Energy............... 76,075
800 Energen.................... 28,950
800(a) HS Resources............... 14,100
1,700 KCS Energy................. 44,731
1,500 KN Energy.................. 65,250
3,000 Monterey Resources......... 59,813
900 New Jersey Resources....... 29,137
2,000(a) Newfield Exploration....... 54,250
1,100 Northwest Natural Gas...... 27,088
1,300(a) Oceaneering International.. 32,256
1,200(a) Offshore Logistics......... 25,200
500 Pennsylvania Enterprises... 13,250
1,400 Piedmont Natural Gas....... 39,200
800(a) Plains Resources........... 16,000
1,900 Pogo Producing............. 68,756
1,000(a) Pool Energy Services....... 33,938
2,200(a) Pride International........ 72,600
1,100 Public Service North Carolina 22,206
800 St. Mary Land Exploration.. 32,600
5,000 Santa Fe Energy Resources.. 65,312
700(a) Seitel..................... 32,987
1,300 Southwest Gas.............. 24,456
1,200 Southwestern Energy........ 14,550
2,100(a) Tuboscope.................. 66,675
1,600(a) United Meridian............ 54,300
3,000 Vintage Petroleum.......... 68,625
900 WICOR...................... 38,812
-------------
1,471,650
-------------
Health Care--9.8%
900(a) ADAC Laboratories.......... 17,550
1,300 ALPHARMA, Cl. A............ 28,681
</TABLE>
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued)
<TABLE>
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Health Care (continued)
1,600(a) Advanced Tissue Sciences... $ 22,300
1,400(a) Alliance Pharmaceutical.... 14,000
1,400 Ballard Medical Products... 31,588
2,700(a) Bio-Technology General..... 33,075
1,200(a) Cephalon................... 13,950
600(a) Circon..................... 9,450
400 Collagen................... 7,900
1,000(a) Cor Therapeutics........... 22,313
1,900(a) Coventry................... 26,481
1,200(a) Cygnus..................... 27,600
1,100(a) Enzo Biochem............... 18,700
1,700(a) Genesis Health Ventures.... 41,650
1,100 GranCare................... 12,375
800(a) Gulf South Medical Supply.. 26,400
900(a) Hologic.................... 23,063
2,000 ICN Pharmaceuticals........ 96,250
800(a) IDEXX Laboratories......... 12,700
1,100(a) Immune Response............ 11,756
2,212 Integrated Health Services. 70,231
1,400 Invacare................... 32,200
1,500(a) Lincare Holdings........... 80,438
1,800(a) Liposome................... 9,900
1,200(a) Living Centers of America.. 48,375
1,400(a) Magellan Health Services... 40,338
1,700(a) Mariner Health Group....... 24,969
700(a) MedImmune.................. 27,912
1,200 Mentor..................... 43,725
1,200(a) NBTY....................... 26,325
1,200 Nature's Sunshine Products. 27,750
1,500(a) North American Vaccine..... 37,688
900(a) Noven Pharmaceuticals...... 6,413
2,100(a) Orthodontic Centers of America 36,356
1,800 Owens & Minor.............. 25,200
1,300(a) Patterson Dental........... 52,000
3,200(a) PhyCor..................... 73,800
1,000(a) Protein Design Labs........ 49,875
1,500(a) Regeneron Pharmaceuticals.. 15,656
1,200(a) Renal Care Group........... 40,200
1,200(a) Renal Treatment Centers.... 39,825
900(a) ReSound.................... 4,950
900(a) Respironics................ 25,312
1,800(a) Roberts Pharmaceutical..... 18,000
1,400(a) SEQUUS Pharmaceuticals..... 12,600
1,800(a) STERIS..................... 71,550
1,400(a) Safeskin................... 63,525
1,600(a) SciClone Pharmaceuticals... 7,900
1,200(a) Sola International......... 40,950
500(a) Spacelabs Medical.......... 11,062
1,500(a) Summit Technology.......... 12,468
1,200(a) Sunrise Medical............ 18,525
1,000(a) Tecnol Medical Products.... 21,500
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Health Care (continued)
1,000(a) TheraTech.................. $ 10,500
1,100(a) U.S. Bioscience............ 11,206
1,500(a) Universal Health Services, Cl.B 66,093
700(a) VISX....................... 16,013
1,200(a) Vertex Pharmaceuticals..... 35,400
1,000 Vital Signs................ 19,375
-------------
1,773,887
-------------
Interest Sensitive--16.3%
1,000 ALLIED Group............... 47,250
1,700(a) AMRESCO.................... 53,338
2,000 American Bankers Insurance Group 74,750
1,530 Associated Banc-Corp....... 76,691
1,300 Astoria Financial.......... 67,925
1,000 CCB Financial.............. 91,000
1,100 CMAC Investment............ 60,156
800 Capital Re................. 47,150
1,200 Cash American International 14,175
1,400 Centura Banks.............. 81,025
900(a) Coast Savings Financial.... 52,819
1,200 Commercial Federal......... 58,200
500(a) CompDent................... 10,344
300 Continental Homes Holding.. 9,038
1,100 Cullen/Frost Bankers....... 55,550
2,000 Deposit Guaranty........... 73,750
1,600 Downey Financial........... 42,000
1,100 Eaton Vance................ 39,738
900 Enhance Financial Services Group 47,531
700 Executive Risk............. 46,113
700 Fidelity National Financial 15,225
600 First American Financial... 36,150
1,800 First Commercial........... 89,100
700 FirstBank Puerto Rico...... 23,538
2,400 FirstMerit................. 61,200
1,700 Fremont General............ 79,263
1,900 Frontier Insurance Group... 64,006
600 Interra Financial.......... 33,075
500 JSB Financial.............. 24,094
2,700 Keystone Financial......... 92,813
1,200 Legg Mason................. 58,875
700 Life Re.................... 38,588
800 M.D.C. Holdings............ 8,900
2,000 Magna Group................ 79,000
500(a) Mail Boxes Etc............. 13,813
1,400(a) National Auto Credit....... 10,412
600 ONBANCorp.................. 38,962
1,400 Orion Capital.............. 63,000
1,100 Piper Jaffray Cos.......... 27,568
1,500 Protective Life............ 79,312
2,200 Provident Financial Group.. 101,200
2,100 Quick & Reilly Group....... 76,388
1,800 Raymond James Financial.... 54,000
</TABLE>
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
<TABLE>
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Interest Sensitive (continued)
1,600 Riggs National............. $ 36,800
1,950 St. Paul Bancorp........... 46,800
1,000 Selective Insurance Group.. 54,125
900(a) Sierra Health Services..... 33,243
3,500 Sovereign Bancorp.......... 62,125
1,400 Standard Pacific........... 15,225
2,300 TCF Financial.............. 130,812
1,800(a) Toll Brothers.............. 39,825
600 Trenwick Group............. 20,925
600(a) U.S. Home.................. 21,300
700 U.S. Trust................. 40,950
600 Washington National........ 19,537
1,100 Whitney Holding............ 54,450
800 Zenith National Insurance.. 22,400
3,200 Zions Bancorp.............. 124,400
-------------
2,939,942
-------------
Mining & Metals--2.8%
900 AMCOL International........ 18,563
1,400 Belden..................... 47,950
1,400 Birmingham Steel........... 23,275
700 Castle (A.M.).............. 16,844
1,300(a) Coeur d'Alene Mines........ 13,488
900 Commercial Metals.......... 29,025
900 Commonweath Industries..... 15,863
1,000(a) Getchell Gold.............. 36,000
1,500 Glamis Gold................ 7,500
600 Handy & Harman............. 15,262
3,600(a) Hecla Mining............... 18,450
600 IMCO Recycling............. 10,913
400 Insteel Industries......... 3,050
1,600 Intermet................... 30,800
1,000(a) Mueller Industries......... 44,187
1,200 Pioneer Group.............. 36,000
600 Steel Technologies......... 6,900
800(a) Stillwater Mining.......... 16,600
1,300 Texas Industries........... 61,668
1,000 Titan International........ 20,750
1,100(a) WHX........................ 14,643
700(a) Wolverine Tube............. 21,700
-------------
509,431
-------------
Transportation--3.4%
1,650 Air Express International.. 50,531
1,500(a) American Freightways....... 23,250
1,400(a) Arkansas Best.............. 16,100
700 CPI........................ 18,200
2,300 Comair Holdings............ 84,525
1,200 Expeditors International,
Washington............... 44,100
1,700(a) Fritz Companies............ 23,481
800 Frozen Food Express Industries 7,400
900(a) Halter Marine Group........ 47,081
1,400(a) Heartland Express.......... 38,500
<CAPTION>
Shares COMMON STOCKS (continued) Value
---------- ---------------
<S> <C> <C>
Transportation (continued)
1,200(a) Kirby...................... $ 23,700
600(a) Landstar System............ 15,000
600(a) M.S. Carriers.............. 15,206
1,000 Pittston Burlington Group.. 27,188
700(a) RailTex.................... 11,288
500(a) Rural/Metro................ 17,375
500 SkyWest.................... 12,125
1,500 USFreightways.............. 48,563
1,800 Werner Enterprises......... 43,650
1,700(a) Yellow..................... 46,643
-------------
613,906
-------------
Utilities--2.4%
800(a) ACC........................ 31,700
1,300(a) Allen Telecom.............. 24,619
600 CILCORP.................... 24,525
800 Central Hudson Gas & Electric 28,350
800 Central Vermont Public Service 10,700
900(a) CommNet Cellular........... 31,163
1,200 Commonwealth Energy Systems 34,350
1,000 Eastern Utility Association 21,125
2,000(a) General Communication, Cl. A 15,000
2,800(a) Geotek Communications...... 10,150
200 Green Mountain Power....... 3,588
500 Interstate Power........... 15,812
600 Orange/Rockland Utility.... 21,487
1,500 Sierra Pacific Resources... 45,656
800 TNP Enterprises............ 20,300
3,400(a) Tel-Save Holdings.......... 73,100
700 United Illuminating........ 27,300
-------------
438,925
-------------
TOTAL COMMON STOCKS
(cost $16,525,633)....... $ 17,953,118
=============
<CAPTION>
Principal SHORT-TERM
Amount INVESTMENTS--1.7%
-----------
<S> <C> <C>
U.S. Treasury Bills:
$ 66,000(b) 4.94%, 12/11/97............ $ 65,642
49,000 4.85%, 12/18/97............ 48,686
195,000 4.92%, 1/8/98.............. 193,134
-------------
TOTAL SHORT-TERM
INVESTMENTS
(cost $307,515)... $ 307,462
=============
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(cost $16,833,148)............ 101.0% $ 18,260,580
======== =============
LIABILITIES, LESS CASH AND
RECEIVABLES .................. (1.0%) $ (179,971)
======== =============
NET ASSETS...................... 100.0% $ 18,080,609
======== =============
</TABLE>
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Non-income producing.
(b) Held by the custodian in a segregated account as collateral for open
financial futures positions.
Statement of Financial Futures October 31, 1997
<TABLE>
<CAPTION>
Financial Futures:
- -------------------
Market Value Unrealized
Covered (Depreciation)
Contracts by Contracts Expiration at 10/31/97
--------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Russell 2000..................................... 1 $218,125 December '97 $(11,625)
=========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -----------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1997
<TABLE>
<CAPTION>
Cost Value
------------- ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $16,833,148 $18,260,580
Receivable for shares of Common Stock subscribed. 9,000
Receivable for futures variation margin--Note 3(a) 4,625
Dividends receivable............................. 6,375
------------
18,280,580
------------
LIABILITIES: Due to The Dreyfus Corporation................... 3,999
Due to Distributor............................... 3,999
Cash overdraft due to Custodian.................. 151,749
Payable for investment securities purchased...... 40,224
------------
199,971
------------
NET ASSETS..................................................................... $18,080,609
============
REPRESENTED BY: Paid-in capital.................................. $16,429,420
Accumulated undistributed investment income--net.. 22,097
Accumulated net realized gain (loss) on investments 213,285
Accumulated net unrealized appreciation (depreciation)
on investments [including ($11,625) net unrealized
(depreciation) on financial futures]--Note 3(b). 1,415,807
------------
NET ASSETS..................................................................... $18,080,609
============
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized)................ 1,301,001
NET ASSET VALUE, offering and redemption price per share--Note 2(c)............. $13.90
=======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Operations
from June 30, 1997 (commencement of operations) to October 31, 1997
INVESTMENT INCOME
<TABLE>
<S> <C> <C> <C>
INCOME: Cash dividends............................. $ 41,970
Interest................................... 9,101
-----------
Total Income............................. $ 51,071
EXPENSES: Management fee--Note 2(a)................... 14,487
Shareholder servicing costs--Note 2(b)...... 14,487
-----------
Total Expenses........................... 28,974
-----------
INVESTMENT INCOME--NET.................................................... 22,097
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments.... $ 213,285
Net unrealized appreciation (depreciation) on
investments [including ($11,625) net unrealized
(depreciation) on financial futures]..... 1,415,807
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 1,629,092
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $1,651,189
===========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
from June 30, 1997 (commencement of operations) to October 31, 1997
<TABLE>
OPERATIONS:
<S> <C>
Investment income--net...................................................................... $ 22,097
Net realized gain (loss) on investments..................................................... 213,285
Net unrealized appreciation (depreciation) on investments................................... 1,415,807
------------
Net Increase (Decrease) in Net Assets Resulting from Operations.......................... 1,651,189
------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold............................................................... 16,685,148
Cost of shares redeemed..................................................................... (255,728)
------------
Increase (Decrease) in Net Assets from Capital Stock Transactions........................ 16,429,420
------------
Total Increase (Decrease) in Net Assets............................................... 18,080,609
NET ASSETS:
Beginning of Period......................................................................... --
------------
End of Period............................................................................... $18,080,609
============
Undistributed investment income--net............................................................ $ 22,097
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
------------
CAPITAL SHARE TRANSACTIONS:
<S> <C>
Shares sold................................................................................. 1,319,474
Shares redeemed............................................................................. (18,473)
------------
Net Increase (Decrease) in Shares Outstanding............................................ 1,301,001
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for the period from June 30, 1997 (commencement of
operations) to October 31, 1997. This information has been derived from the
Fund's financial statements.
<TABLE>
PER SHARE DATA:
<S> <C>
Net asset value, beginning of period.......................... $12.50
------
Investment Operations:
Investment income--net........................................ .02
Net realized and unrealized gain (loss) on investments........ 1.38
------
Total from Investment Operations.............................. 1.40
------
Net asset value, end of period................................ $13.90
======
TOTAL INVESTMENT RETURN.......................................... 11.20%(1,2)
RATIOS/SUPPLEMENATAL DATA:
Ratio of expenses to average net assets....................... .17%(1)
Ratio of net investment income to average net assets.......... .13%(1)
Portfolio Turnover Rate....................................... 10.59%(1)
Average commission rate paid (3).............................. $.0325
Net Assets, end of period (000's Omitted)..................... $18,081
<FN>
- ---------------------
(1) Not annualized.
(2) Exclusive of redemption fee.
(3) 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 Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Small Cap Stock Index Fund (the "Fund") is a series of Dreyfus Index
Funds, Inc (the "Company") which is registered under the Investment Company Act
of 1940 ("Act") as a non-diversified open-end management investment company and
operates as a series company currently offering three series including the Fund.
The Fund's investment objective is to provide investment results that correspond
to the total return performance of predominantly small capitalization common
stocks in the aggregate, as represented by the Standard & Poor's SmallCap 600
Index. The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment
adviser. Boston Safe Deposit and Trust Company, an affiliate of Dreyfus, is the
Fund's custodian. Dreyfus is a direct subsidiary of Mellon Bank, N.A., which is
a wholly-owned subsidiary of Mellon Bank Corporation. Premier Mutual Fund
Services, Inc. (the "Distributor") is the distributor of the Fund's shares,
which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
As of October 31, 1997, MBIC Investment Corp., an indirect subsidiary of
Mellon Bank Corporation, held 1,200,000 shares of the Fund.
The Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
(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.
NOTE 2--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement ("Agreement") with Dreyfus, the
management fee is computed at the annual rate of .25 of 1% of the value of the
Fund's average daily net assets, and is payable monthly. Under the terms of
the Agreement, Dreyfus has agreed to pay all the expenses of the Fund, except
brokerage commissions, taxes, interest, Shareholder Services Plan fees,
fees and expenses of non-interested Directors (including counsel fees)
and extraordinary expenses. In addition, Dreyfus is required to reduce its
fee in an amount equal to the Fund's allocable portion of fees and
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
expenses of the non-interested Directors (including counsel). Each
Director receives an annual fee of $2,500 and an attendance fee $500 per
meeting and is reimbursed for travel and out-of-pocket expenses. The Chairman
of the Board receives an additional 25% of such compensation. These fees
pertain to the following funds: Dreyfus S&P 500 Index Fund, Dreyfus
International Stock Index Fund and Dreyfus Small Cap Stock Index Fund. These
fees and expenses are charged and allocated to each series based on net assets.
Amounts required to be paid by the Company directly to the non-interested
Directors, that would be applied to offset a portion of the management fee
payable to Dreyfus, are in fact paid directly by Dreyfus to the non-interested
Directors.
(b) Under the Shareholder Services Plan, the Fund pays the Distributor for
the provision of certain services at the annual rate of .25 of 1% of the value
of the Fund's average daily net assets. 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.
The Distributor may make payments to Service Agents (a securities dealer, bank
or other financial institution) in respect of these services. The Distributor
determines the amounts to be paid to Service Agents. During the period ended
October 31, 1997, the Fund was charged an aggregate of $14,487 pursuant to the
Shareholder Services Plan.
Dreyfus 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.
(c) A 1% redemption fee is charged and retained by the Fund 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, 1997, redemption fees amounted to $2,549.
NOTE 3--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
October 31, 1997 amounted to $17,776,019 and $1,461,024, 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, 1997, and their related unrealized depreciation are set forth
in the Statement of Financial Futures.
(b) At October 31, 1997, accumulated net unrealized appreciation on
investments and financial futures was $1,415,807, consisting of $2,025,426
gross unrealized appreciation and $609,619 gross unrealized depreciation.
At October 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
<PAGE>
Dreyfus Small Cap Stock Index Fund
- -------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
Dreyfus Small Cap Stock Index Fund
We have audited the accompanying statement of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus Small
Cap Stock Index Fund (the "Fund") (one of the Series constituting Dreyfus Index
Funds, Inc.) as of October 31, 1997, and the related statements of operations,
changes in net assets and the financial highlights for the period from June 30,
1997 (commencement of operations) to October 31, 1997. 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 audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1997 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides 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 Small Cap Stock Index Fund of the Dreyfus Index Funds, Inc. at October
31, 1997, the results of its operations, the changes in its net assets and the
financial highlights for the period from June 30, 1997 (commencement of
operations) to October 31, 1997, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND LLP
New York, New York
December 12, 1997
<PAGE>
Dreyfus Small Cap Stock 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 02904
Printed in U.S.A. 077AR9710
