Dreyfus Small Cap Stock Index Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
23 Statement of Assets and Liabilities
24 Statement of Operations
25 Statement of Changes in Net Assets
26 Financial Highlights
27 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
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The Fund
Dreyfus Small Cap
Stock Index Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Small Cap Stock
Index Fund, covering the six-month period from November 1, 1998 through April
30, 1999. Inside, you'll find valuable information about how the Fund was
managed during the reporting period, including a discussion with the Fund's
portfolio managers, Steve Falci and Mark Sikorski.
The past six months have been rewarding for many equity investors. The Federal
Reserve Board's lowering of short-term interest rates in the fall of 1998
appears to have helped U.S. businesses withstand the effects of economic
weakness in Japan, Asia and Latin America. At the same time, strong U.S.
economic growth, low inflation and high levels of consumer spending supported
continued strength in many broad measures of stock market performance. As a
result, several major U.S. market indices set new records, including the Dow
Jones Industrial Average's first-ever close above the 10,000 level. The broader
S&P 500 Index and the technology-laden NASDAQ Index also recorded new highs.
However, until near the end of the six-month period, small-cap stocks continued
to lag their larger counterparts substantially. For most of the reporting
period, investors continued to favor large companies with predictable earnings
and tended to avoid smaller companies with shorter track records. In April,
however, many smaller stocks began to rally as investors became increasingly
attracted by their valuation levels. In a global economic environment currently
characterized by fewer concerns, investors appear to have become somewhat more
comfortable with small-cap stocks.
We appreciate your confidence over the past six months, and look forward to your
continued participation in Dreyfus Small Cap Stock Index Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
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DISCUSSION OF FUND PERFORMANCE
Steve Falci and Mark Sikorski, Portfolio Managers
How did the Dreyfus Small Cap Stock Index Fund perform relative to its
benchmark?
For the six-month period ended April 30, 1999, Dreyfus Small Cap Stock Index
Fund produced a total return of 8.60%.1 The Standard & Poor's Small Cap 600
Index ("S&P 600") produced a 9.03% return for the same time period.2 The
difference in returns is accounted for by transaction costs and other Fund
operating expenses.
What is the Fund's investment strategy?
As an index fund, we seek to match the total return of the S&P 600. To reach
that goal, the Fund generally invests in about 575 stocks in the S&P 600, in
proportion to their weighting in the index. While the portfolio managers strive
to own the vast majority of the stocks in the index, they may avoid some very
small, illiquid names. Often considered a barometer for the small-cap stock
market in general, the S&P 600 is composed of 600 domestic stocks with market
capitalizations ranging between $38 million and $2.7 billion. Generally
speaking, it contains 500 industrial, 50 financial, 30 utility, and 20
transportation stocks. Each stock is weighted by its market capitalization; that
is, larger companies have greater representation in the index than smaller ones.
The Fund may also use stock index futures as a substitute for the sale or
purchase of stocks.
Dreyfus Small Cap Stock Index Fund uses a passive management approach: all
investment decisions are based on the Fund's objective, which is to seek to
match the performance of the S&P 600. The Fund does not attempt to manage market
volatility.
Small-cap stocks are often new and entrepreneurial companies, and tend to grow
faster than larger-cap companies. They also typically use any profits for
expansion rather than for paying dividends. Because they carry additional risks,
their earnings also tend to be less predictable. As a result, their stocks may
be less liquid and more volatile.
The Fund 3
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DISCUSSION OF FUND PERFORMANCE (continued)
What other factors influenced the Fund's performance?
Continuing the trend that has existed for some time now, the stock market has
been driven higher by an increasingly narrow list of large-cap growth stocks.
The next best performing group has been mid-cap stocks, while small-cap stocks
have lagged. Within these three market capitalization ranges, stocks utilizing a
growth-oriented investment strategy have performed better than those using a
value-oriented strategy.
During the period, the largest gains within the S&P 600 came from its financial
holdings, including those in the investment management and consumer finance
businesses. In addition, the technology sector provided strong returns,
especially defense electronics and network computer companies. Finally,
broadcasting companies, which are part of the consumer staples sector, reported
robust gains.
On the other hand, the poorest performing returns of the index, and therefore
the Fund as well, originated from personal care stocks, which fall under the
consumer staples group. Diversified healthcare stocks, as well as a few
long-term healthcare facilities, also produced disappointing returns. Retail
computers and electronics, another area within the growing technology sector,
also provided discouraging returns during the period.
What is the Fund's current strategy?
Because the Fund's goal is to replicate the returns of its benchmark, its
strategy is to mirror the composition of the index. To understand how index
investing works, it's important to recognize the differences between passive
index managers and active managers. While both managers seek superior returns,
the passive index manager does not make decisions about buying and selling
stocks based on economic, financial and market conditions. Instead, passive
managers buy and hold the stocks in the index in an effort to match the index's
returns.
4
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A key advantage of indexing is the lower costs incurred for professional
research. Security selection is based on that of the index, helping the Fund
avoid costly proprietary research. Another notable characteristic of an index
fund is derived from its buy-and-hold strategy, which may help the Fund incur
lower transactions costs and fewer taxable capital gains. Lower costs mean more
of the Fund's return may be paid to shareholders, and fewer realized capital
gains may translate into lower income taxes for investors.
May 13, 1999
1 Total return includes reinvestment of dividends and any capital gains paid.
2 SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Standard & Poor's Small Cap
600 Index is a broad-based index of 600 companies with market capitalization
ranging from the 50th percentile 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.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
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Common Stocks--99.4% Shares Value ($)
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Basic Industries--6.6%
AMCOL International 2,850 34,912
AptarGroup 3,600 100,800
Buckeye Technologies 3,300 a 47,850
Butler Manufacturing 700 20,781
Caraustar Industries 2,300 58,650
Champion Enterprises 4,700 a 87,244
ChemFirst 2,000 47,750
Dycom Industries 2,100 a 95,944
Florida Rock Industries 1,900 65,312
Geon 2,300 70,438
Griffon 2,800 a 20,475
Hughes Supply 2,500 58,125
Insituform Technology, Cl. A 2,400 a 45,750
Juno Lighting 1,800 40,950
Lilly Industries, Cl. A 2,400 42,000
Lone Star Industries 2,000 71,375
MacDermid 2,600 109,038
McWhorter Technololgies 1,200 a 17,775
Mississippi Chemical 2,400 21,900
Morrison Knudsen 5,400 a 58,725
Myers Industries 2,080 47,060
O'Sullivan 1,500 13,500
OM Group 2,200 80,025
Oakwood Homes 4,300 59,662
Pope & Talbot 1,400 14,438
Pre-Paid Legal Services 2,500 a 71,250
Quaker Chemical 1,000 15,812
Republic Group 1,300 22,750
Ryland Group 1,500 39,375
Schweitzer-Mauduit International 1,500 24,844
Scotts, Cl. A 1,700 a 69,912
Service Experts 1,600 a 25,900
Shorewood Packaging 2,700 a 53,325
Skyline 1,000 29,312
Southern Energy Homes 1,200 a 5,625
Stone & Webster 1,200 26,325
TETRA Technologies 1,500 a 14,062
6
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Common Stocks (continued) Shares Value ($)
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Basic Industries (continued)
TJ International 1,600 44,400
Tredegar Industries 3,500 93,406
Universal Forest Products 1,900 37,822
W D-40 1,600 42,800
Watsco 2,600 51,025
Wynn's International 2,000 33,500
2,031,924
Capital Spending--24.7%
AAR 2,550 48,450
ABM Industries 2,000 60,750
ADVO 2,100 a 41,475
Acxiom 7,600 191,900
Alliant Techsystems 1,000 a 81,875
American Management Systems 4,000 a 137,500
American States Water 800 20,350
Analogic 1,200 44,100
Analysts International 2,100 27,300
Angelica 1,100 18,012
Applied Industrial Technology 2,200 32,725
Aquarion 1,200 31,125
Arctic Cat 2,500 21,562
Aspect Telecommunications 4,700 a 37,452
Aspen Technology 2,000 a 17,125
Astec Industries 1,800 a 69,750
Auspex Systems 2,700 a 19,238
Aviation Sales 1,200 a 48,000
BISYS Group 2,700 a 137,025
BMC Industries 2,500 22,344
Baldor Electric 3,433 66,300
BancTec 1,800 a 29,250
Barnes Group 2,100 44,231
Billing Concepts 3,300 a 40,838
Brady, Cl. A 2,400 62,100
Brightpoint 4,800 a 29,550
C&D Technologies 1,200 a 30,975
CDI 1,800 a 47,812
CIBER 5,600 a 105,700
The Fund 7
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Common Stocks (continued) Shares Value ($)
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Capital Spending (continued)
CLARCOR 2,550 a 47,812
Catalina Marketing 1,800 a 153,788
Centigram Communications 700 6,300
Central Parking 2,750 87,141
Cerner 3,300 a 56,100
Cognex 3,700 a 107,300
Computer Task Group 1,900 35,388
Customtracks 1,500 a 55,875
DBT Online 1,800 a 60,638
Dames & Moore Group 1,700 19,975
Daniel Industries 1,600 26,300
DeVry 6,700 a 176,712
Dialogic 1,500 a 41,906
Digi Inernational 1,400 a 10,675
Dionex 2,100 a 86,100
Electro Scientific Industries 1,200 a 45,750
Electroglas 1,800 a 24,638
Esterline Technologies 1,900 a 26,838
Etec Systems 2,000 a 61,750
Express Scripts, Cl. A 3,200 a 235,600
FactSet Research Systems 1,450 67,606
Fair Issac & Co 1,600 54,400
FileNet 2,900 a 24,831
Flow International 1,400 a 14,000
G & K Services, Cl. A 1,900 88,825
Gallagher (Arthur J.) 1,800 85,500
Gardner Denver Machinery 1,500 a 26,719
Gerber Scientific 2,200 41,388
Global Industrial Technologies 2,000 a 26,375
Graco, Inc. 1,800 56,700
HNC Software 2,400 a 51,600
Harbinger 3,900 a 42,656
Helix Technology 2,000 35,312
Henry (Jack) & Association 1,900 62,700
Hilb, Rogal & Hamilton 1,500 27,938
Hutchinson Technology 2,300 a 50,744
Hyperion Solutions 1,735 a 26,242
8
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Common Stocks (continued) Shares Value ($)
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Capital Spending (continued)
INCYTE Pharmaceuticals 2,500 45,156
Inter-Tel 2,400 33,300
Interim Services 4,600 a 79,925
InterVoice 2,800 a 27,912
JLG Industries 4,400 70,675
Kaman, Cl. A 2,200 28,875
Kronos 1,500 a 51,000
Kulicke & Soffa Industries 2,100 48,038
Lason 1,600 a 63,300
Lawson Products 1,000 22,625
Lindsay Manufacturing 1,200 25,575
Lydall 1,900 a 17,100
MICROS Systems 1,500 a 44,250
Macromedia 4,000 a 165,750
Manitowoc 2,775 105,797
Material Sciences 700 a 7,350
Metro Networks 1,600 a 72,000
Micrel 1,900 a 111,862
MicroAge 2,000 a 10,500
Mutual Risk Management 4,000 155,500
NFO Worldwide 2,000 a 22,625
National Computer Systems 2,900 81,200
National Data 3,300 152,212
National Instruments 3,200 a 108,800
Network Equipment Technologies 2,000 a 15,375
Norrel 2,500 37,500
Pharmaceutical Product Development 2,300 a 66,988
Philiadelphia Suburban 3,845 86,752
Photronics 2,500 a 59,844
PictureTel 3,500 a 28,875
Plantronics 1,600 a 108,000
Platinum Software 4,100 a 29,212
Polaris Industries 2,400 90,450
Primark 2,200 a 50,738
Profit Recovery Group International 2,600 a 94,900
Progress Software 1,900 a 43,225
Quanex 1,300 33,231
The Fund 9
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Common Stocks (continued) Shares Value ($)
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Capital Spending (continued)
Regal Beloit 1,900 41,088
Regis 3,300 84,562
Robins & Myers 1,000 21,562
Rollins Truck Leasing 5,350 55,506
Roper Industries 2,900 82,650
S3 5,000 35,938
SEI Investments 1,700 161,500
SPS Technologies 1,200 a 52,350
Security Dynamics Technologies 3,200 a 69,600
Silicon Valley Group 3,300 a 43,725
Smith (A.O.) 2,450 61,862
Speedfam International 2,000 a 23,000
Superior Services 3,000 a 55,125
Symmetricom 1,400 a 9,800
System Software 4,400 a 8,250
TCSI 2,100 a 4,069
TETRA Technologies 2,900 a 70,144
Technology Solutions 3,750 a 29,766
Telxon 1,500 15,000
Thomas Industries 1,750 34,781
True North Communications 4,600 124,200
Tuboscope International 4,100 a 55,862
United Water Resources 3,400 70,762
Valence Technology 2,400 a 17,100
Valmont Industries 2,300 38,525
Vantive 2,400 a 19,200
Volt Information Sciences 1,400 a 24,500
Wall Data 900 a 14,062
Whittaker 1,000 a 24,000
Whittman-Hart 5,100 a 144,075
Xircom 2,400 a 54,000
Zebra Technologies, Cl. A 2,900 a 96,425
7,654,342
Consumer Cyclical--19.9%
Adaptive Broadband 1,400 a 21,175
Allen Telecom 2,500 a 23,438
Amcast Industrial 1,000 16,750
10
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Common Stocks (continued) Shares Value ($)
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Consumer Cyclical (continued)
Anchor Gaming 1,100 a 51,975
Ann Taylor Stores 2,600 a 123,500
Apogee Enterprises 2,500 30,625
Applebee's International 2,800 72,275
Applied Power, Cl. A 2,565 80,958
Ashworth 1,400 a 6,300
Authentic Fitness 2,100 36,225
Aztar 4,100 a 28,444
BE Aerospace 2,500 42,656
Baker (J.) 1,300 7,719
Bassett Furniture 1,200 28,800
Blount International, Cl. A 3,700 103,138
Books-A-Million 1,600 14,200
Bowne & Co. 3,400 63,750
Breed Technologies 3,400 a 18,488
Brown Group 1,800 29,362
Building Materials Holding 1,500 a 19,125
C-COR Electronics 900 a 21,938
Carmike Cinemas, Cl. A 1,000 a 21,562
CEC Entertainment 1,700 a 63,750
CKE Restaurants 5,090 83,349
Casey's General Stores 5,200 68,900
Cato 2,500 28,125
Cheesecake Factory 1,350 a 37,800
Coachmen Industries 1,600 30,200
Cone Mills 2,300 a 13,944
Consolidated Graphics 1,400 a 59,675
Consolidated Products 2,362 a 42,664
Cross (A.T.), Cl. A 1,700 10,838
DIMON 4,100 17,938
Damark International, Cl. A 700 a 7,175
Digital Microwave 5,800 a 73,950
Discount Auto Parts 1,700 a 38,781
Dixie Group 1,500 13,312
Dress Barn 2,100 a 30,712
Ethan Allen Interiors 2,600 131,788
Family Golf Centers 2,400 a 17,250
The Fund 11
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(continued)
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Common Stocks (continued) Shares Value ($)
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Consumer Cyclical (continued)
Fedders 3,700 21,275
Fleming Cos 3,500 30,625
Foodmaker 3,900 94,088
Footstar 2,300 a 77,769
Franklin Covey 2,100 a 20,344
GC Companies 700 a 24,588
Galey & Lord 1,100 a 5,019
Gentex 6,800 a 204,425
Gibson Greetings 1,500 a 9,469
Goody's Family Clothing 3,300 a 29,700
Gottschalks 1,400 a 10,325
Guilford Mills 2,100 19,950
Gymboree 2,400 a 24,900
HA-LO Industries 4,450 a 52,288
Haggar 800 8,700
Hancock Fabrics 1,900 11,994
Harland (John H.) 2,800 46,375
Hartmarx 3,200 a 15,200
Hollywood Park 2,400 a 30,900
Huffy 1,100 14,644
IHOP 900 a 41,175
Insight Enterprises 2,400 a 64,800
Interface, Cl. A 4,800 33,900
Itron 1,400 a 11,550
Jo-Ann Stores, Cl. A 1,800 a 29,025
Just for Feet 2,900 a 36,612
Justin Industries 2,700 36,450
K2 1,500 15,281
K-Swiss 1,200 50,400
Kellwood 2,300 59,225
Kroll-O'Gara 1,900 a 45,481
La-Z Boy 5,100 100,406
Landry's Seafood Restaurants 2,800 a 22,750
Lillian Vernon 900 13,275
Linens'n Things 3,900 a 178,425
Luby's 2,400 40,200
Marcus 2,900 36,069
12
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Common Stocks (continued) Shares Value ($)
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Consumer Cyclical (continued)
Masco Tech 4,300 74,712
Mens Wearhouse 3,300 a 90,338
Merrill 1,700 25,288
Michaels Stores 1,700 a 38,462
Midway Games 3,417 a 29,258
NCS HealthCare, Cl. A 2,100 a 27,300
Nash Finch 1,100 10,450
National Presto Industries 700 24,456
Nautica Enterprises 3,800 a 51,538
New England Business Service 1,300 35,506
O'Reilly Automotive 2,400 a 109,800
Orbital Sciences 3,400 a 71,612
OshKosh B'Gosh 1,700 33,681
Oxford Industries 900 23,794
P-COM 4,000 a 23,375
Pacific Sunwear of California 2,100 a 77,897
Paxar 4,425 a 39,548
Phillips-Van Heusen 3,000 26,250
Pier 1 Imports 8,925 65,822
Pillowtex 1,415 23,259
Prime Hospitality 4,800 a 58,500
Quicksilver 2,100 a 55,781
Richfood Holdings 4,400 55,000
Royal Appliance Manufacturing 1,800 a 7,875
Ruby Tuesday 3,000 54,750
Russ Berrie & Co. 2,200 59,812
Ryan's Family Steak House 4,200 a 51,975
Safeskin 5,500 a 53,625
Shopko Stores 2,700 a 92,644
Simpson Industries 1,800 18,450
Sonic 1,850 a 52,031
Spartan Motors 1,900 10,450
Sports Authority 3,300 a 22,894
St. John Knits 1,600 43,500
Standard Motor Products 1,200 27,900
Standard Products 1,500 27,000
Standex International 1,200 29,475
The Fund 13
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STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Common Stocks (continued) Shares Value ($)
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Consumer Cyclical (continued)
Stein Mart 4,200 a 42,000
Stride Rite 4,300 50,256
Sturm Ruger 2,500 26,562
Swiss Army Brands 900 a 7,762
TBC 1,900 a 14,725
TCBY Enterprises 2,100 14,306
Taco Cabana 2,000 a 20,250
Thomas Nelson 1,400 14,175
Thor Industries 1,300 39,325
Timberland, Cl. A 1,100 a 76,175
Toro 1,200 41,775
Tower Automotive 4,400 a 101,200
Valassis Communications 3,600 a 201,600
Wabash National 2,100 32,944
Westwood One 2,900 a 99,325
Whole Foods Market 2,400 a 93,600
Williams-Sonoma 5,300 a 153,700
Winnebago Industries 2,200 31,488
Wolverine World Wide 4,000 48,000
World Color Press 3,700 a 94,581
Zale 3,400 a 128,562
6,156,475
Consumer Staples--3.5%
Avid Technology 2,600 a 42,250
CPI 1,100 29,219
Canandaigua Brands, Cl. A 1,700 a 87,550
Chemed 900 26,831
Chiquita Brands International 6,000 60,000
Coca-Cola Bottling Consolidated 800 44,000
Corn Products International 3,600 103,950
Delta and Pine Land 3,533 120,122
Earthgrains 4,100 86,869
Ionics 1,500 a 51,188
J & J Snack Foods 1,000 a 21,750
Libbey 1,600 48,100
Michael Foods 2,200 50,325
Nashua 600 a 6,450
Penford 700 9,144
14
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Common Stocks (continued) Shares Value ($)
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Consumer Staples (continued)
Ralcorp Holdings 3,200 a 58,800
Simpson Manufacturing 1,100 a 50,875
Smithfield Foods 3,600 a 85,050
Triarc Cos., Cl. A 2,800 a 55,475
Ultratech Stepper 2,200 a 30,525
USA Dtergents 1,600 a 10,800
X-Rite 1,900 13,062
1,092,335
Electronics--6.7%
Alpha Industries 1,400 a 49,350
Anixter International 3,800 a 59,850
Applied Magnetics 3,900 a 11,456
Bell Industries 900 a 9,675
Benchmark Electronics 1,100 a 36,988
Burr-Brown 2,900 a 76,850
C-Cube Microsystems 3,600 a 81,450
CTS 1,300 69,388
Checkpoint Systems 2,900 a 28,456
Coherent 2,200 a 32,725
DSP Communications 3,500 a 95,375
Dallas Semiconductor 2,900 123,250
General Semiconductor 3,400 a 25,500
Hadco 1,200 a 31,500
Harman International 1,800 82,688
Harmon Industries 950 20,900
Innovex 1,500 20,812
Input/Output 4,800 a 34,800
Integrated Circuit Systems 1,100 a 22,275
International Rectifier 4,700 a 45,825
KEMET 3,600 a 55,575
Kent Electronics 2,600 a 24,212
Komag 4,900 a 18,375
Lattice Semiconductor 2,200 a 89,925
Marshall Industries 1,500 a 24,188
Mercury Interactive 3,400 a 95,838
Methode Electronics, Cl. A 3,300 a 49,088
Novellus Systems 3,700 a 174,825
Oak Industries 1,600 a 66,800
The Fund 15
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Common Stocks (continued) Shares Value ($)
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Electronics (continued)
Park Electrochemical 1,000 23,875
Pioneer Standard Electronics 2,400 20,100
Plexus 1,400 a 46,725
Powerwave Technologies 1,900 a 57,712
Read-Rite 4,500 a 27,844
Scott Technologies 1,900 a 35,269
Standard Microsystems 1,500 a 11,062
Technitrol 1,500 43,875
Three-Five Systems 700 a 8,050
Trimble Navigation 2,100 a 24,347
Unitrode 3,200 a 56,600
VLSI Technology 4,500 a 84,938
Vicor 4,000 a 56,250
Watkins-Johnson 600 15,225
2,069,811
Energy--5.2%
Atmos Energy 2,800 70,700
Barrett Resources 3,200 a 97,200
Benton Oil & Gas 3,300 a 13,819
Cabot Oil & Gas, Cl. A 2,300 40,250
Cascade Natural Gas 1,000 15,812
Connecticut Energy 1,000 37,375
Cross Timbers Oil 4,200 45,938
Devon Energy 3,200 106,400
Energen 3,000 51,750
HS Resources 1,700 a 18,062
New Jersey Resources 1,700 62,688
Newfield Exploration 4,000 a 107,500
Northwest Natural Gas 2,300 51,894
Oceaneering International 2,100 a 34,650
Pennsylvania Enterprises 1,000 25,500
Piedmont Natural Gas 2,900 92,438
Plains Resources 1,800 a 30,712
Pogo Producing 4,000 76,750
Pool Energy Services 2,000 a 35,875
Pride International 4,600 a 53,762
Public Service North Carolina 1,900 53,794
Remington Oil & Gas 2,400 a 9,600
16
<PAGE>
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Common Stocks (continued) Shares Value ($)
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Energy (continued)
St. Mary Land Exploration 1,000 19,250
Santa Fe Energy Resources 10,100 a 90,900
Seitel 2,500 a 43,438
Snyder Oil 3,600 65,475
Southwest Gas 2,800 79,975
Southwestern Energy 2,300 18,112
Vintage Petroleum 5,400 58,050
WICOR 3,700 87,413
1,595,082
Health Care--10.0%
ADAC Laboratories 2,400 a 17,400
ALPHARMA, Cl. A 2,900 85,550
Advanced Tissue Sciences 3,600 a 18,000
Alliance Pharmaceutical 3,000 a 7,500
American Oncology Resources 3,000 a 26,812
Ballard Medical Products 3,100 74,012
Barr Laboratories 2,400 a 72,150
Bindley Western Industries 2,100 64,838
Bio-Technology General 4,500 a 31,922
Biomatrix 2,200 a 72,463
COR Therapeutics 2,200 a 25,712
Cambrex 2,300 58,938
Cephalon 2,700 a 32,738
Cooper Cos. 1,400 a 22,050
Coventry Health Care 5,400 a 49,612
Curative Health Services 1,200 a 6,750
Cygnus 1,900 a 17,100
Datascope 1,400 a 39,812
Dendrite International 2,300 a 59,512
Diagnostic Products 1,300 29,900
Dura Pharmaceuticals 4,500 a 54,000
Enzo Biochem 2,255 a 23,396
Genesis Health Ventures 3,300 a 22,894
Hologic 1,500 a 10,219
IDEC Pharmaceuticals 1,900 a 96,425
IDEXX Laboratories 3,700 a 83,712
Immune Response 2,200 a 24,750
Integrated Health Services 4,812 23,158
The Fund 17
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------
Health Care (continued)
Invacare Corp 2,700 62,438
JONES PHARMA 2,800 89,950
Liposome 3,800 a 47,500
Magellan Health Services 2,900 a 15,769
Mariner Post-Acute Network 6,500 a 22,344
Maxxim Medical 1,300 a 20,719
MedQuist 3,300 a 113,025
Mentor 2,500 36,250
NBTY 6,200 a 31,388
Nature's Sunshine Products 1,700 18,169
North American Vaccine 3,000 a 16,125
Noven Pharmaceuticals 2,200 a 11,550
Organogenesis 2,700 a 30,881
Orthodontic Centers of America 4,800 a 59,400
Owens & Minor 3,000 29,625
PAREXL International 2,300 a 55,344
Patterson Dental 3,150 a 113,597
Pediatrix Medical Group 1,700 a 32,194
PhyCor 7,000 a 35,000
Priority Healthcare, Cl. B 1,206 61,129
Protein Design Labs 1,700 a 26,244
Regeneron Pharmaceuticals 2,800 a 18,550
Renal Care Group 4,200 a 87,675
Resound 1,900 9,500
Respironics 2,900 a 40,962
Roberts Pharmaceutical 2,900 a 49,300
Sierra Health Services 2,500 31,250
Sola International 2,600 a 38,675
SpaceLabs Medical 900 a 15,188
Summit Technology 3,000 a 52,312
Sunrise Medical 2,000 a 14,500
Syncor International 1,000 28,500
U.S. Bioscience 2,600 27,950
Universal Health Services, Cl. B 3,300 a 170,981
Vertex Pharmaceuticals 2,300 a 48,588
VISX 2,900 a 373,375
Vital Signs 1,200 a 25,200
3,112,472
18
<PAGE>
- --------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------
Interest Sensitive--14.9%
AMRESCO 4,100 26,650
American Bankers Insurance Group 4,100 214,994
AmeriCredit 6,000 a 99,375
Anchor Bancorp Wisconsin 1,600 29,400
Banknorth Group 2,300 60,806
CMAC Investment 2,300 105,512
Capital Re 2,900 56,730
Carolina First 2,100 56,700
Cash America International 2,300 29,325
Centura Banks 2,700 160,819
Commerce Bancorp 2,547 112,386
Commercial Federal 5,700 138,225
CompDent 900 a 12,712
Cullen Frost Bankers 2,800 151,025
D. R. Horton 6,075 117,322
Dain Rauscher 1,200 51,450
Delphi Financial Group, Cl. A 2,064 64,242
Downey Financial 2,880 57,600
Eaton Vance 3,300 75,280
Enhance Financial Services Group 3,600 74,475
Executive Risk 1,100 78,925
Fidelity National Financial 2,909 53,089
First American Financial 5,800 103,675
First Bancorp 2,900 74,856
First Midwest Bancorp 2,700 107,830
FirstMerit Corp 8,500 236,406
Fremont General 6,800 136,000
Frontier Insurance Group 3,390 46,824
HUBCO 4,160 147,160
InaCom 4,324 a 41,889
JSB Financial 900 44,380
Jefferies Group 2,200 50,325
Legg Mason 5,400 188,325
M.D.C. Holdings 1,700 33,362
MAF Bancorp 2,500 55,625
NAC Re 1,800 98,100
Orion Capital 2,500 73,594
Pioneer Group 2,400 44,700
The Fund 19
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------
Interest Sensitive (continued)
Premier Bancshares 2,300 45,138
Provident Bankshares 2,310 57,460
Queens County Bancorp 1,950 68,494
Ramond James Financial 4,700 101,344
Riggs National 2,800 47,250
St. Paul Bancorp 3,850 93,362
Selective Insurance Group 2,600 50,375
Silicon Valley Bancshares 1,900 a 33,369
Standard Pacific 2,900 40,056
Susquehanna Bancshares 3,400 62,900
Toll Brothers 3,400 a 72,675
Trenwick Group 1,200 33,600
Trustco Bank 2,470 66,072
U.S. Home 1,300 44,525
U.S. Trust 1,900 173,612
UST 4,200 101,588
United Bankshares 4,100 110,700
Whitney Holding 2,300 93,150
Zenith National Insurance 900 21,375
4,627,138
Mining and Metals--3.0%
Belden 2,300 44,275
Birmingham Steel 3,000 18,375
Brush Wellman 1,500 22,594
Cable Design Technologies 3,050 a 45,369
Castle (A.M.) 1,300 19,175
Coeur d' Alene Mines 2,200 a 10,175
Commercial Metals 1,400 32,988
Commonweath Industries 1,500 14,438
Commscope 4,800 a 117,000
Getchell Gold 2,800 95,550
Hecla Mining 5,000 a 15,000
IMCO Recycling 1,500 25,500
Insteel Industries 800 6,700
Intermet 2,500 36,875
Mueller Industries 3,500 a 110,250
Reliance Steel & Aluminum 1,700 61,944
RTI International Metals 2,000 a 26,625
20
<PAGE>
- --------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------
Mining and Metals (continued)
Steel Technologies 1,100 9,900
Stillwater Mining 3,350 a 94,847
Texas Industries 2,100 64,838
Titan International 1,900 18,881
WHX 1,600 a 13,500
Wolverine Tube 1,300 a 32,825
937,624
Transportation--2.8%
Air Express International 3,050 66,719
American Freightways 3,200 a 55,000
Arkansas Best 2,300 a 20,844
Expeditors International of Washington 2,300 139,438
Fritz Cos. 3,300 a 33,412
Frozen Food Express Industries 1,500 9,797
Halter Marine Group 2,650 a 16,066
Heartland Express 3,100 a 43,206
Kirby 2,000 a 38,000
Landstar Systems 1,000 a 38,938
M.S. Carriers 1,200 a 38,250
Offshore Logistics 2,000 a 24,750
Pittston BAX Group 1,800 16,088
RailTex 1,100 a 14,988
Rural/Metro 1,500 a 12,188
SkyWest 2,400 62,400
USFreightsways 2,700 101,250
Werner Enterprises 4,750 91,438
Yellow 2,400 42,600
865,372
Utilities--2.1%
CILCORP 1,300 78,650
Central Hudson Gas & Electric 1,600 59,400
Commonwealth Energy Systems 2,000 81,125
Eastern Utility Association 1,900 54,388
General Communication, Cl. A 4,600 a 21,275
Green Mountain Power 600 5,738
Orange/Rockland Utility 1,400 81,463
Sierra Pacific Resources 2,900 103,313
TNP Enterprises 1,400 43,750
The Fund 21
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------
Utilities (continued)
Talk.com 4,500 a 54,000
United Illuminating 1,400 55,125
638,227
Total Common Stocks
(cost $31,624,274) 30,780,802
- --------------------------------------------------------------------------------
Principal
Short-Term Investments--.3% Amount ($)
- --------------------------------------------------------------------------------
U.S. Treasury Bills
4.39%, 7/29/1999
(cost $99,904) 101,000 99,918
- --------------------------------------------------------------------------------
Total Investments (cost $31,724,178) 99.7% 30,880,720
Cash and Receivables (net) .3% 102,527
Net Assets 100.0% 30,983,247
a Non-income producing.
See notes to financial statements.
22
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
- ---------------------------------------------------------------------------
Cost Value
- ---------------------------------------------------------------------------
Assets ($):
Investments in securities
--See Statement of Investments 31,724,178 30,880,720
Cash 6,967
Receivable for investment securities sold 458,246
Receivable for shares of Common Stock subscribed 55,520
Dividends receivable 11,794
31,413,247
- ---------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation 6,065
Due to Distributor 6,064
Payable for investment securities purchased 410,879
Payable for shares of Common Stock redeemed 6,992
430,000
- ---------------------------------------------------------------------------
Net Assets ($) 30,983,247
- ---------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 31,156,854
Accumulated undistributed investment income-net 23,880
Accumulated net realized gain (loss) on investments 645,971
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) (843,458)
Net Assets ($) 30,983,247
- ---------------------------------------------------------------------------
Shares Outstanding
(200 million shares of $.001 par value Common Stock authorized) 2,448,704
- ---------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share--
Note 3(c)($) 12.65
See notes to financial statements.
The Fund 23
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income ($)
- --------------------------------------------------------------------------------
Income:
Cash dividends 118,604
Interest 6,049
Total Income 124,653
Expenses:
Management fee--Note 3(a) 35,043
Shareholder servicing costs--Note 3(b) 35,043
Interest expense--Note 2 1,300
Loan commitment fees--Note 2 52
Total Expenses 71,438
Investment Income--Net 53,215
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments 634,044
Net realized gain (loss) on financial futures 40,372
Net Realized Gain (Loss) 674,416
Net unrealized appreciation (depreciation) on investments
[including ($3,800) net unrealized depreciation
on financial futures] 1,614,914
Net Realized and Unrealized Gain (Loss) on Investments 2,289,330
Net Increase in Net Assets Resulting From Operations 2,342,545
See notes to financial statements.
24
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Six Months Ended Year Ended
April 30, 1999 October 31,
(Unaudited) 1998
- --------------------------------------------------------------------------------
Operations ($):
Investment income--net 53,215 71,869
Net realized gain (loss) on investments 674,416 1,053,486
Net unrealized appreciation (depreciation)
on investments 1,614,914 (3,874,179)
Net Increase (Decrease) in Net Assets
Resulting from Operations 2,342,545 (2,748,824)
- --------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net (99,908) (23,393)
Net realized gain on investments (1,092,480) (202,736)
Total Dividends (1,192,388) (226,129)
- --------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold 11,791,192 10,491,450
Dividends reinvested 1,159,447 225,582
Cost of shares redeemed (7,442,198) (1,498,039)
Increase (Decrease) in Net Assets from
Capital Stock Transactions 5,508,441 9,218,993
Total Increase (Decrease) in Net Assets 6,658,598 6,244,040
- --------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 24,324,649 18,080,609
End of Period 30,983,247 24,324,649
Undistributed investment income--net 23,880 70,573
- --------------------------------------------------------------------------------
Capital Share Transactions (Shares):
Shares sold 956,346 794,989
Shares issued for dividends reinvested 92,830 16,898
Shares redeemed (601,322) (112,038)
Net Increase (Decrease) in Shares Outstanding 447,854 699,849
See notes to financial statements.
The Fund 25
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Certain information reflects financial results for a single Fund share. "Total
return" shows how much your investment in the Fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These
figures have been derived from the Fund's financial statements.
- --------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
----------------------
(Unaudited) 1998 1997 a
- --------------------------------------------------------------------------------
Per Share Data ($):
Net asset value, beginning of period 12.16 13.90 12.50
Investment Operations:
Investment income--net .02 .04 .02
Net realized and unrealized
gain (loss) on investments 1.02 (1.60) 1.38
Total from Investment Operations 1.04 (1.56) 1.40
Distributions:
Dividends from investment income--net (.05) (.02) --
Dividends from net realized gain on investments (.50) (.16) --
Total Distributions (.55) (.18) --
Net asset value, end of period 12.65 12.16 13.90
- --------------------------------------------------------------------------------
Total Return (%) b 8.60 c (11.38) 11.20 c
- --------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets .25 c .50 .17 c
Ratio of net investment income
to average net assets .19 c .35 .13 c
Portfolio Turnover Rate 22.66 c 25.14 10.59 c
- --------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 30,983 24,325 18,081
a From June 30, 1997, (commencement of operations) to October 31, 1997.
b Execlusive of redemption fee.
c Not annualized.
See notes to financial statements.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Small Cap Stock Index Fund (the "Fund") is a separate non-diversified
series of Dreyfus Index Funds, Inc. (the "Company") which is registered under
the Investment Company Act of 1940, as amended (the "Act"), as an 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 Small Cap 600 Index. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. 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 April 30, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Bank Corporation, held 1,269,074 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 funds 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. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors.
The Fund 27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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 and dividends from net realized capital
gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility") primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the Fund has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is charged to the Fund at rates based on
prevailing market rates in effect at the time of borrowings.
The average daily amount of borrowings outstanding during the period ended April
30, 1999 was approximately $50,100, with a related weighted average annualized
interest rate of 5.24%.
28
<PAGE>
NOTE 3--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, commitment fees, 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 expenses of
the non-interested Directors (including counsel). Each Director receives from
the Company 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 (with the exception of
reimburseable amounts). 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,
financial institution or other industry professional) in respect of these
services. The Distributor determines the amounts to be paid to Service Agents.
During the period ended April 30, 1999, the Fund was charged $35,043 pursuant to
the Shareholder Services Plan.
The Fund 29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(c) A 1% redemption fee is charged and retained by the Fund on shares redeemed
within six months following the date of issuance including redemptions made
through the use of the Fund Exchange privilege. During the period ended April
30, 1999, redemption fees amounted to $4,519.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
April 30, 1999, amounted to $10,990,967 and $6,437,456, respectively.
The Fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The Fund is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the Fund to "mark to market" on a daily
basis, which reflects the change in the market value of the contract at the
close of each day's trading. 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. At April 30, 1999, there were no financial
futures contracts outstanding.
(b) At April 30, 1999, accumulated net unrealized depreciation on investments
was $843,458, consisting of $3,867,094 gross unrealized appreciation and
$4,710,552 gross unrealized depreciation.
At April 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
30
<PAGE>
For More Information
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 02940
The Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call 1-800-645-6561
By mail Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
By E-mail Send your request to [email protected]
On the Internet Information can be viewed online or downloaded from:
http://www.dreyfus.com
(C) 1999, Dreyfus Service Corporation 077SA994
Dreyfus S&P 500 Index Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000- related problems in its systems and
to obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- --------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
20 Statement of Financial Futures
21 Statement of Assets and Liabilities
22 Statement of Operations
23 Statement of Changes in Net Assets
24 Financial Highlights
25 Notes to Financial Statements
FOR MORE INFORMATION
- -----------------------
Back Cover
<PAGE>
Dreyfus The Fund
S&P 500 Index Fund
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus S&P 500 Index Fund,
covering the six-month period from November 1, 1998 through April 30, 1999.
Inside, you'll find valuable information about how the Fund was managed during
the reporting period, including a discussion with the Fund's portfolio managers,
Steve Falci and Jocelin Reed.
The past six months have been rewarding for many equity investors. Strong
economic growth, low inflation and high levels of consumer spending supported
continued strength in the stocks of many large companies. The Federal Reserve
Board's lowering of short-term interest rates in the fall of 1998 appears to
have helped U.S. businesses withstand the effects of economic weakness in Japan,
Asia and Latin America. As a result, several major market indices set new
records, including the Dow Jones Industrial Average's first-ever close above the
10,000 level. The broader S&P 500 Index and the technology-laden NASDAQ Index
also recorded new highs.
Yet, until near the end of the six-month period, the stock market's advance
remained relatively narrow, confined to a handful of highly valued growth and
technology stocks. In April, however, some previously out-of-favor market
sectors rallied strongly, including large-cap cyclical companies as well as some
small- and midcap stocks.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus S&P 500 Index Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Steve Falci and Jocelin Reed, Portfolio Managers
How did Dreyfus S&P 500 Index Fund perform
relative to its benchmark?
For the six-month period ended April 30, 1999, Dreyfus S&P 500 Index Fund
produced a total return of 21.98%.1 The Standard & Poor's 500 Composite Stock
Price Index (the "Index"), produced a 22.31% return for the same time period.2
The difference in returns is accounted for by transaction costs and other Fund
operating expenses.
What is the Fund's investment approach?
As an index fund, we seek to match the total return of the Index. To reach that
goal, the Fund generally invests in all 500 stocks in the Index in proportion to
their weighting in the Index. Often considered a barometer for the stock market
in general, the Index is made up of 500 widely held common stocks. It is
dominated by large blue chip stocks, which, when combined, cover nearly 75% of
the total U.S. market capitalization.
However, it is important to note that the Index is not composed of the 500
largest companies; rather, it is designed to capture the returns of many
different sectors of the U.S. economy. Generally speaking, it is composed of 400
industrial, 40 utility, 40 financial and 20 transportation stocks. Each stock is
weighted by its market capitalization; that is, larger companies have greater
representation in the Index than smaller ones. The Fund may also use stock index
futures as a substitute for the sale or purchase of stocks.
Dreyfus S&P 500 Index Fund uses a passive management approach: all investment
decisions are made based on the Fund's objective, which is to seek to match the
performance of the Index. The Fund does not attempt to manage market volatility.
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
What other factors influenced the Fund's performance?
Continuing the trend that has existed for some time now, the Index was driven
higher by an increasingly narrow list of highly priced growth stocks. In fact,
the portfolio, mirroring the Index, benefited most notably from two holdings.
The first is Microsoft, the Index's (and, accordingly, the Fund's) second
largest holding as of April 30, 1999. The second is America Online, a stock that
was added to the Index in December 1998. In fact, these two stocks performed so
well that they are credited with producing a full third of the Index's advance
in the first quarter of 1999.
In terms of the strongest performing groups within the Index during the period,
the largest gains came from the financial group, which includes investment
management and consumer finance companies, and the transportation area,
including airline and air freight companies. In addition, the Index's holdings
within the broadcast/media area provided strong returns, as did many of its
retail apparel stocks.
On the other hand, the poorest performing returns of the Index, and therefore of
the Fund as well, were generated from its tobacco holdings, primarily due to
litigation problems. In addition, the stocks of food distributing companies as
well as manufactured housing and engineering and construction firms provided
disappointing returns.
What is the Fund's current strategy?
Because the Fund is an index fund, its goal is to replicate the returns of the
Index. To understand how index investing works, it's important to recognize the
differences associated with a passive index manager and an active manager. The
active manager typically makes decisions about buying and selling stocks based
on economic, financial and market conditions. The passive index manager, on the
other hand, buys and holds the stocks in the index in an effort to match its
returns.
4
<PAGE>
A key advantage of indexing stocks is the lower costs incurred for professional
research. Because the Fund's security selection is based strictly on the Index,
the Fund is able to avoid costly proprietary research.
Another notable characteristic of an index fund is its buy-and-hold strategy. As
a result of low trading volumes, index funds often incur lower transaction costs
and realize fewer taxable capital gains. The lower costs mean more of the Fund's
return can be paid to shareholders, and fewer realized capital gains may
translate into lower income taxes for investors.
May 13, 1999
1 Total return includes reinvestment of dividends and any capital gains
paid.
2 SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment
of income dividends and, where applicable, capital gain distributions.
The Standard & Poor's 500 Composite Stock Price Index is widely
accepted unmanaged index of U.S. stock market performance.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks--97.5% Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Basic Industries--3.0%
Air Products & Chemicals 51,400 2,415,800
Armstrong World Industries 9,000 492,750
Avery Dennison 26,000 1,774,500
Ball 6,900 379,069
Bemis 11,700 409,500
Boise Cascade 12,600 507,150
Centex 13,300 486,281
Champion International 21,400 1,170,313
Crown Cork & Seal 27,400 890,500
Danaher 30,000 1,993,125
Dow Chemical 49,600 6,506,900
duPont (E.I.) deNemours & Co. 252,200 17,811,625
Eastman Chemical 17,800 991,238
Engelhard 32,100 615,919
FMC 7,400 a 481,000
Fluor 16,900 564,038
Fort James 49,400 1,877,200
Fortune Brands 38,300 1,512,850
Foster Wheeler 9,100 122,850
Georgia Pacific 19,700 1,822,250
Grace (W.R.) & Co. 16,500 262,969
Great Lakes Chemical 13,200 631,125
Hercules 22,500 850,781
International Paper 68,800 3,667,900
Kaufman & Broad Home 10,700 260,144
Louisiana Pacific 24,300 505,744
Masco 76,000 2,232,500
Mead 22,800 953,325
Morton International 27,100 1,094,163
Nalco Chemical 14,700 537,469
Occidental Petroleum 77,500 1,564,531
Owens-Corning 12,200 434,625
Owens-Illinois 34,800 a 1,009,200
PPG Industries 39,400 2,558,538
Potlach 6,500 269,344
Praxair 35,300 1,826,775
Rohm & Haas 37,500 1,680,469
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Basic Industries (continued
Sealed Air 18,732 1,139,140
Sherwin-Williams 38,500 1,198,313
Sigma-Aldrich 22,500 731,250
Temple-Inland 12,500 862,500
Tenneco 38,100 1,028,700
Union Camp 15,500 1,230,313
Union Carbide 29,800 1,545,875
Westvaco 22,500 672,188
Weyerhaeuser 44,600 2,993,775
Willamette Industries 24,900 1,164,075
75,730,589
Capital Goods--27.6%
Adobe Systems 13,600 861,900
Advanced Micro Devices 32,400 a 532,575
Allegheny Teledyne 43,954 983,471
AlliedSignal 124,800 7,332,000
America Online 230,100 a 32,846,775
Andrew 18,550 a 258,541
Apple Computer 30,600 a 1,407,600
Applied Materials 82,700 a 4,434,788
Ascend Communications 48,600 a 4,695,975
Autodesk 13,300 395,675
Automatic Data Processing 138,000 6,141,000
BMC Software 52,800 a 2,273,700
Boeing 210,098 8,535,231
Briggs & Stratton 5,300 349,469
Browning-Ferris Industries 35,400 1,411,575
Cabletron Systems 38,600 364,288
Case 16,600 574,775
Caterpillar 80,300 5,169,313
Cendant 176,070 a 3,169,260
Ceridian 32,000 a 1,172,000
Cisco Systems 353,750 a 40,349,609
Compaq Computer 377,884 8,431,537
Computer Associates International 120,650 5,150,247
Computer Sciences 35,600 2,120,425
Compuware 82,300 2,006,063
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Capital Goods (continued)
Cooper Industries 20,700 1,001,363
Crane 15,325 443,467
Cummins Engine 9,400 502,900
Data General 11,200 a 130,900
Deere & Co. 53,400 2,296,200
Dell Computer 570,000 a 23,476,875
Deluxe 18,000 623,250
Dover 50,000 1,846,875
Dun & Bradstreet 37,000 1,359,750
EG&G 10,000 312,500
EMC 112,400 a 12,244,575
Eaton 16,000 1,467,000
Electronic Data Systems 110,400 5,934,000
Emerson Electric 98,000 6,321,000
Equifax 33,000 1,185,938
First Data 99,200 4,209,800
Gateway 2000 35,000 a 2,316,563
General Dynamics 28,400 1,995,100
General Electric 734,000 77,437,000
Genuine Parts 40,300 1,209,000
Goodrich (B.F.) 16,700 663,825
Grainger (W.W.) 21,300 1,068,994
H&R Block 21,900 1,053,938
Harnischfeger Industries 10,600 103,350
Harris 17,700 611,756
Hewlett-Packard 227,400 17,936,175
Honeywell 28,200 2,671,950
IMS Health 71,400 2,142,000
ITT Industries 20,700 745,200
Ikon Office Solutions 33,100 399,269
Illinois Tool Works 56,000 4,312,000
Ingersoll-Rand 36,800 2,546,100
Intel 746,800 45,694,825
International Business Machines 206,700 43,239,056
Interpublic Group Cos. 31,150 2,416,072
KLA-Tencor 19,700 a 977,613
LSI Logic 31,700 a 1,077,800
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Capital Goods (continued)
Lockheed Martin 87,900 3,785,194
Lucent Technologies 592,100 35,600,013
McDermott International 13,200 382,800
McKesson HBOC 62,077 2,172,695
Micron Technology 55,500 2,060,438
Microsoft 1,130,500 a 91,923,734
Milacron 8,600 197,800
Millipore 9,900 303,806
Minnesota Mining & Manufacturing 90,000 8,010,000
Motorola 134,400 10,768,800
National Semiconductor 37,400 a 467,500
Northern Telecom 148,620 10,134,026
Northrop Grumman 15,400 984,638
Novell 75,600 a 1,682,100
Omnicom Group 37,800 2,740,500
Oracle 322,500 a 8,727,656
Pall 27,900 514,406
Parametric Technology 59,900 a 782,444
Parker-Hannifin 24,250 1,138,234
Paychex 36,700 1,873,994
PeopleSoft 52,200 a 714,488
Perkin-Elmer 11,200 1,211,000
Pitney Bowes 61,100 4,273,181
Raychem 17,300 457,369
Raytheon, Cl. B 75,500 5,303,875
Rockwell International 42,500 2,194,063
Ryder System 16,100 424,638
Scientific-Atlanta 16,900 536,575
Seagate Technology 54,600 a 1,521,975
Service Corp. International 61,200 1,269,900
Shared Medical Systems 6,000 325,875
Silicon Graphics 42,000 a 535,500
Snap-On 13,200 429,825
Solectron 56,300 2,730,550
Stanley Works 19,913 606,102
Sun Microsystems 172,600 a 10,323,638
3COM 80,400 a 2,100,450
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Capital Goods (continued)
Tektronix 10,500 254,625
Tellabs 43,500 a 4,765,969
Texas Instruments 87,400 8,925,725
Textron 35,500 3,270,438
Thermo Electron 35,600 a 571,825
Thomas & Betts 12,700 533,400
Timken 13,900 310,144
Tyco International 182,860 14,857,373
Unisys 58,400 a 1,835,950
United Technologies 50,600 7,330,675
Waste Management 134,100 7,576,650
Xerox 146,900 8,630,375
693,014,702
Consumer Cyclical--12.9%
Albertson's 55,000 2,832,500
American Greetings, Cl. A 15,700 411,144
American Stores 61,600 1,944,250
AutoZone 33,600 a 1,008,000
Black & Decker 19,700 1,117,975
Brunswick 20,600 494,400
CBS 158,200 7,207,988
CVS 87,400 4,162,425
Carnival 137,300 5,663,625
Circuit City Group 22,500 1,383,750
Clear Channel Communications 59,000 a 4,100,500
Comcast, Cl. A 82,800 5,438,925
Consolidated Stores 24,500 a 842,188
Cooper Tire and Rubber 17,000 372,938
Costco Cos. 48,900 a 3,957,844
Dana 37,159 1,751,118
Darden Restaurants 30,900 689,456
Dayton Hudson 98,700 6,643,744
Dillard's, Cl. A 23,900 661,731
Disney (Walt) 460,500 14,620,875
Dollar General 39,650 1,390,228
Donnelley (R.R.) & Sons 30,100 1,064,788
Dow Jones & Co 21,000 1,144,500
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Consumer Cyclical (continued)
Federated Department Stores 47,000 a 2,194,313
Fleetwood Enterprises 7,800 192,563
Ford Motor 271,000 17,327,063
Fruit Of The Loom, Cl. A 16,200 a 173,138
Gannett 63,100 4,468,269
Gap 127,650 8,496,703
General Instrument 37,500 a 1,368,750
General Motors 146,600 13,038,238
Goodyear Tire & Rubber 34,900 1,995,844
Great Atlantic & Pacific 8,600 264,450
Harcourt General 15,900 758,231
Harrah's Entertainment 28,300 a 622,600
Hasbro 44,000 1,501,500
Hilton Hotel 58,400 912,500
Home Depot 330,202 19,791,482
Johnson Controls 19,000 1,385,813
Jostens 7,900 169,356
K mart 110,400 a 1,642,200
King World Productions 16,000 a 564,000
Knight-Ridder 17,600 947,100
Kohl's 35,500 a 2,358,531
Kroger 57,400 a 3,117,538
Limited 50,700 2,218,125
Liz Claiborne 14,500 479,406
Longs Drug Stores 8,700 299,063
Lowes 83,200 4,388,800
Marriott International, Cl. A 54,400 2,278,000
Mattel 64,400 1,666,350
May Department Stores 78,450 3,123,291
Maytag 20,200 1,381,175
McDonald's 303,100 12,843,863
McGraw-Hill Cos. 44,100 2,436,525
MediaOne Group 135,900 a 11,084,344
Meredith 11,700 429,244
Meyer (Fred) 34,800 a 1,883,550
Mirage Resorts 40,300 a 904,231
Moore 19,800 198,000
</TABLE>
The Fund 11
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Consumer Cyclical (continued)
NIKE, Cl. B 63,300 3,936,469
Navistar International 14,800 a 774,225
New York Times, Cl. A 40,900 1,411,050
Nordstrom 31,800 1,118,963
PACCAR 17,500 980,000
Penney (J.C.) 59,000 2,691,875
Pep Boys-Manny, Moe & Jack 11,800 168,888
Reebok International 12,600 a 237,038
Rite Aid 58,000 1,352,125
Russell 8,100 179,213
Safeway 108,900 5,873,794
Seagram 89,400 5,129,325
Sears, Roebuck & Co. 85,800 3,946,800
Springs Industries 4,000 149,500
Staples 103,250 a 3,097,500
Supervalu 26,900 561,538
Sysco 74,600 2,214,688
TJX 72,400 2,411,825
TRW 26,800 1,123,925
Tandy 22,200 1,608,113
Time Warner 274,800 19,236,000
Times Mirror, Cl. A 15,300 895,050
Toys R Us 56,200 1,222,350
Tribune 26,600 2,219,438
Tricon Global Restaurants 34,210 a 2,202,269
V.F 26,900 1,385,350
Viacom, Cl. B 155,800 a 6,368,325
Wal-Mart Stores 996,100 45,820,600
Walgreen 223,600 6,009,250
Wendy's International 27,900 755,044
Whirlpool 17,000 1,128,375
Winn-Dixie Stores 33,300 1,192,556
325,210,502
Consumer Staples--8.1%
Alberto-Culver, Cl. B 12,800 318,400
Anheuser-Busch 107,100 7,831,688
Archer Daniels Midland 132,620 1,989,300
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Consumer Staples (continued)
Avon Products 58,836 3,195,530
Bestfoods 64,000 3,212,000
Brown-Forman, Cl. B 15,300 1,127,419
Campbell Soup 99,600 4,083,600
Clorox 26,200 3,022,825
Coca-Cola 552,200 37,549,600
Coca-Cola Enterprises 87,800 3,029,100
Colgate-Palmolive 65,600 6,719,900
ConAgra 109,600 2,726,300
Coors (Adolph), Cl. B 8,200 438,700
Eastman Kodak 72,600 5,417,775
Ecolab 29,000 1,216,188
General Mills 34,400 2,515,500
Gillette 248,500 12,968,594
Heinz (H.J.) 81,000 3,781,688
Hershey Foods 32,100 1,689,263
International Flavors & Fragrances 23,800 940,100
Kellogg 90,800 3,359,600
Kimberly-Clark 121,400 7,443,338
NACCO Industries, Cl. A 1,800 145,463
National Service Industries 9,200 358,225
Newell Rubbermaid 62,962 2,986,760
PepsiCo 328,700 12,141,356
Philip Morris 545,400 19,123,088
Pioneer Hi-Bred International 53,600 2,003,300
Polaroid 9,800 202,125
Procter & Gamble 297,400 27,899,838
Quaker Oats 30,500 1,969,156
RJR Nabisco Holdings 72,800 1,874,600
Ralston Purina Group 73,600 2,244,800
Sara Lee 204,300 4,545,675
Tupperware 12,900 305,569
UST 41,700 1,162,388
Unilever, N.V. 143,400 9,312,038
Wrigley, (Wm) Jr 26,000 2,305,875
203,156,664
</TABLE>
The Fund 13
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Energy--6.7%
Amerada Hess 20,200 1,151,400
Anadarko Petroleum 27,000 1,024,313
Apache 21,900 672,056
Ashland 16,700 705,575
Atlantic Richfield 73,000 6,127,438
Baker Hughes 73,190 2,186,551
Burlington Resources 39,745 1,830,754
Chevron 146,100 14,573,475
Coastal 47,600 1,820,700
Columbia Energy Group 18,700 898,769
Consolidated Natural Gas 21,500 1,279,250
Eastern Enterprises 5,000 179,688
Enron 77,500 5,831,875
Exxon 544,600 45,235,838
Halliburton 98,500 4,198,563
Helmerich & Payne 11,100 285,825
Kerr-McGee 19,365 820,592
Mobil 174,700 18,299,825
Nicor 10,700 389,213
ONEOK 7,100 198,356
Peoples Energy 7,900 295,263
Phillips Petroleum 57,000 2,885,625
Rowan Cos. 18,800 a 300,800
Royal Dutch Petroleum 480,300 28,187,606
Schlumberger 122,300 7,811,913
Sempra Energy 53,766 1,115,645
Sonat 24,600 879,450
Sunoco 21,000 750,750
Texaco 119,700 7,511,175
USX-Marathon Group 68,900 2,153,125
Union Pacific Resources Group 56,210 786,940
Unocal 54,100 2,248,531
Williams Cos. 95,800 4,526,550
167,163,429
Health Care--10.9%
ALZA 22,400 a 751,800
Abbott Laboratories 340,000 16,468,750
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Health Care (continued)
Allergan 14,800 1,330,150
American Home Products 295,200 18,007,200
Amgen 114,000 a 7,003,875
Bard (C.R.) 12,000 588,000
Bausch & Lomb 12,600 945,000
Baxter International 64,100 4,038,300
Becton, Dickinson & Co. 55,800 2,075,063
Biomet 25,200 1,033,200
Boston Scientific 88,000 a 3,745,500
Bristol-Myers Squibb 445,100 28,291,669
Cardinal Health 60,950 3,645,572
Columbia/HCA Healthcare 144,550 3,568,578
Guidant 67,500 3,623,906
HCR Manor Care 24,800 a 688,200
HEALTHSOUTH 94,800 a 1,273,875
Humana 37,500 a 510,938
Johnson & Johnson 301,200 29,367,000
Lilly (Eli) 246,300 18,133,838
Mallinckrodt Group 16,000 561,000
Medtronic 130,900 9,416,619
Merck & Co. 533,600 37,485,400
Monsanto 140,300 6,348,575
Pfizer 290,700 33,448,669
Pharmacia & Upjohn 113,800 6,372,800
Schering-Plough 329,200 15,904,475
St. Jude Medical 18,900 a 526,838
Tenet Healthcare 69,500 1,641,938
United Healthcare 41,700 2,340,413
Warner-Lambert 184,000 12,500,500
Watson Pharmaceuticals 21,300 862,650
272,500,291
Interest Sensitive--16.2%
Aetna 31,979 2,804,159
Allstate 183,800 6,685,725
American Express 101,400 13,251,713
American General 56,445 4,176,930
American International Group 275,090 32,305,882
</TABLE>
The Fund 15
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Interest Sensitive (continued)
Amsouth Bancorp 26,600 1,265,163
Aon 38,050 2,606,425
Associates First Capital, Cl. A 163,038 7,224,621
BB&T 69,600 2,779,650
BANKBOSTON 66,400 3,253,600
BankAmerica 387,652 27,910,944
Bank of New York 170,400 6,816,000
Bank One 263,404 15,540,836
Bankers Trust 21,300 1,918,331
Bear Stearns Cos. 24,955 1,163,527
CIGNA 46,300 4,036,781
Capital One Financial 14,700 2,553,206
Chase Manhattan 189,500 15,681,125
Chubb 36,500 2,162,625
Cincinnati Financial 37,400 1,510,025
Citigroup 505,793 38,060,923
Comerica 34,800 2,264,175
Conseco 71,803 2,266,282
Countrywide Credit Industries 25,200 1,141,875
Federal Home Loan Mortgage 152,000 9,538,000
Federal National Mortgage Association 232,300 16,478,781
Fifth Third Bancorp 59,600 4,272,575
First Union 221,890 12,287,159
Firstar 154,600 4,647,663
Fleet Financial Group 127,300 5,481,856
Franklin Resources 56,600 2,264,000
Golden West Financial 12,800 1,281,600
Hartford Financial Services Group 52,300 3,082,431
Household International 108,145 5,441,045
Huntington Bancshares 47,230 1,673,713
Jefferson Pilot 23,750 1,600,156
Keycorp 102,000 3,155,625
Lehman Brothers Holdings 25,500 1,416,844
Lincoln National 22,600 2,171,013
Loews 25,500 1,866,281
MBIA 22,300 1,499,675
MBNA 179,625 5,063,180
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Interest Sensitive (continued)
MGIC Investment 24,500 1,189,781
Marsh & McLennan Cos. 57,600 4,410,000
Mellon Bank 58,500 4,347,281
Mercantile Bancorp 35,200 2,006,400
Merrill Lynch & Co. 79,500 6,673,031
Morgan (J.P.) 39,200 5,282,200
Morgan Stanley, Dean Witter & Co. 129,380 12,832,879
National City 73,100 5,244,925
Northern Trust 24,900 2,318,813
PNC Bank 67,400 3,900,775
Progressive 16,200 2,324,700
Provident Cos. 30,300 1,193,063
Providian Financial 31,750 4,097,734
Pulte 9,700 219,463
Regions Financial 49,500 1,868,625
Republic New York 24,000 1,410,000
SLM Holding 37,100 1,583,706
St. Paul Companies 52,794 1,514,528
Safeco 30,500 1,212,375
Schwab (Charles) 89,850 9,861,038
SouthTrust 37,000 1,474,219
State Street 36,000 3,150,000
Summit Bancorp 38,900 1,648,388
SunTrust Banks 71,800 5,133,700
Synovus Financial 59,850 1,324,181
Torchmark 31,400 1,073,488
Transamerica 27,900 1,987,875
U.S. Bancorp 163,248 6,050,379
UNUM 31,000 1,693,375
Union Planters 30,800 1,318,625
Wachovia 45,400 3,989,525
Washington Mutual 132,860 5,463,868
Wells Fargo 368,300 15,905,956
406,307,016
Mining and Metals--.7%
ASARCO 8,900 163,538
Alcan Aluminium 51,000 1,619,250
</TABLE>
The Fund 17
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Mining and Metals (continued)
Alcoa 82,200 5,116,950
Barrick Gold 83,600 1,682,450
Battle Mountain Gold 51,500 144,844
Bethlehem Steel 29,100 a 265,538
Cyprus Amax Minerals 20,400 313,650
Freeport-McMoRan Copper, Cl. B 37,100 568,094
Homestake Mining 58,400 558,450
Inco 37,200 713,775
Newmont Mining 37,425 900,539
Nucor 19,600 1,150,275
Phelps Dodge 13,000 822,250
Placer Dome 56,000 791,000
Reynolds Metals 14,400 898,200
USX-U.S. Steel 19,800 598,950
Worthington Industries 20,700 285,919
16,593,672
Transportation--1.0%
AMR 40,800 a 2,848,350
Burlington Northern Santa Fe 105,100 3,849,288
CSX 48,600 2,393,550
Delta Air Lines 31,700 2,010,969
FDX 33,160 a 3,732,573
Kansas City Southern Industries 24,500 1,459,281
Laidlaw 74,000 467,125
Norfolk Southern 84,900 2,775,169
Southwest Airlines 75,375 2,454,398
US Airways Group 19,600 a 1,066,975
Union Pacific 55,400 3,324,000
26,381,678
Utilities--10.4%
AT&T 704,929 35,598,916
AES 42,900 a 2,145,000
ALLTEL 61,600 4,154,150
AirTouch Communications 128,100 a 11,961,338
Ameren 30,700 1,187,706
American Electric Power 42,900 1,777,669
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Utilities (continued)
Ameritech 246,200 16,849,313
Baltimore Gas & Electric 33,400 939,375
Bell Atlantic 347,736 20,038,287
BellSouth 436,800 19,546,800
CINergy 35,500 1,058,344
CMS Energy 22,100 972,400
Carolina Power & Light 33,900 1,366,594
Central & Southwest 47,600 1,181,075
Century Telephone Enterprises 30,900 1,243,725
Consolidated Edison 52,200 2,371,838
Corning 52,000 2,977,000
DTE Energy 32,500 1,326,406
Dominion Resources 43,800 1,801,275
Duke Energy 81,094 4,541,264
Edison International 79,000 1,935,500
Entergy 55,200 1,725,000
FPL Group 40,500 2,283,188
FirstEnergy 53,100 1,576,406
Frontier 38,400 2,119,200
GPU 28,700 1,094,188
GTE 216,200 14,471,888
MCI WorldCom 410,660 33,751,119
NEXTEL Communications, Cl. A 64,400 a 2,636,375
New Century Energies 25,600 896,000
Niagara Mohawk Power 42,000 a 561,750
Northern States Power 34,200 825,075
PG&E 85,700 2,662,056
PP&L Resources 33,900 947,081
PECO Energy 50,200 2,381,363
PacifiCorp 66,600 1,111,388
Public Service Enterprise Group 50,000 2,000,000
Reliant Energy 63,766 1,805,375
SBC Communications 438,138 24,535,728
Southern 156,200 4,227,163
Sprint (FON Group) 100,100 10,266,506
Sprint (PCS Group) 98,550 4,176,056
</TABLE>
The Fund 19
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------
<S> <C> <C>
Utilities (continued)
Texas Utilities 63,197 2,512,081
U S West 112,702 5,895,723
UniCom 48,600 1,886,288
261,320,972
Total Common Stocks
(cost $1,445,154,910) 2,447,379,515
- ----------------------------------------------------------------------------
Principal
Short-Term Investments--2.4% Amount ($) Value ($)
- ----------------------------------------------------------------------------
U.S. Treasury Bills--.3%
4.17%, 7/8/1999 7,000,000 b 6,941,949
Repurchase Agreements--2.1%
Warburg Dillon Read, 4.80% dated
4/30/1999, due 5/3/1999 in the amount
of $52,696,070 (fully collateralized by
$54,245,000 U.S. Treasury Bills,
7/15/1999, value $53,729,673) 52,675,000 52,675,000
Total Short-Term Investments
(cost $59,619,863) 59,616,949
- ----------------------------------------------------------------------------
Total Investments (cost $1,504,774,773) 99.9% 2,506,996,464
Cash and Receivables (Net) .1% 3,805,190
Net Assets 100.0% 2,510,801,654
<FN>
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral
for open financial futures positions.
</FN>
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Statement of Financial Futures April 30, 1999 (Unaudited)
Market\ Value Unrealized
Covered Depreciation
Financial Futures Purchased Contracts by Contracts ($) Expiration at 4/30/99($)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's 500 181 60,476,625 June '99 (589,250)
</TABLE>
See notes to financial statements
20
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Cost Value
- --------------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments--
Note 1(b) 1,504,774,773 2,506,996,464
Cash 4,073,494
Receivable for shares of Common Stock subscribed 2,109,726
Dividends and interest receivable 1,884,894
Receivable for investment securities sold 650,309
2,515,714,887
- --------------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation 506,725
Due to Distributor 506,725
Payable for shares of Common Stock redeemed 2,000,961
Payable for investment securities purchased 1,390,672
Payable for futures variation margin--See Note 4(a) 508,150
4,913,233
- --------------------------------------------------------------------------------------
Net Assets ($) 2,510,801,654
- --------------------------------------------------------------------------------------
Composition of Net Assets ($)
Paid-in capital 1,487,273,202
Accumulated undistributed investment income--net 4,973,839
Accumulated net realized gain (loss) on investments 16,922,172
Accumulated net unrealized appreciation (depreciation)
on investments [including ($589,250) net unrealized
(depreciation) on financial futures]--Note 4(b) 1,001,632,441
- --------------------------------------------------------------------------------------
Net Assets ($) 2,510,801,654
Shares Outstanding
(200 million shares of $.001 par value Common Stock authorized) 63,459,953
Net Asset Value, offering and redemption price per share--Note 3(c)($) 39.57
</TABLE>
See notes to financial statements.
The Fund 21
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Investment Income ($)
- -------------------------------------------------------------------------------
<S> <C>
Income:
Cash dividends (net of $20,617 foreign taxes withheld at source) 13,525,857
Interest 1,742,962
Total Income 15,268,819
Expenses:
Management fee--Note 3(a) 2,696,538
Shareholder servicing costs--Note 3(b) 2,696,538
Loan commitment fees--Note 2 4,287
Total Expenses 5,397,363
Investment Income--Net 9,871,456
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments 8,806,718
Net realized gain (loss) on financial futures 12,213,886
Net Realized Gain (Loss) 21,020,604
Net unrealized appreciation (depreciation) on investments
[including ($1,293,575) net unrealized depreciation on
financial futures] 387,952,759
Net Realized and Unrealized Gain (Loss) on Investments 408,973,363
Net Increase in Net Assets Resulting From Operations 418,844,819
</TABLE>
See notes to financial statements.
22
<PAGE>
STATEMENT OF CHANGES IN NET ASESTS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income--net 9,871,456 19,423,880
Net realized gain (loss) on investments 21,020,604 (2,993,438)
Net unrealized appreciation (depreciation) of investments 387,952,759 278,533,830
Net Increase (Decrease) in Net Assets Resulting
from Operations 418,844,819 294,964,272
- ---------------------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net (21,016,765) (14,501,384)
Net realized gain on investments -- (22,551,895)
Total Dividends (21,016,765) (37,053,279)
- ---------------------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold 762,049,738 1,100,160,110
Dividends reinvested 19,813,206 35,192,667
Cost of shares redeemed (512,651,081) (828,953,361)
Increase (Decrease) in Net Assets from Capital Stock
Transactions 269,211,863 306,399,416
Total Increase (Decrease) in Net Assets 667,039,917 564,310,409
- ---------------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 1,843,761,737 1,279,451,328
End of Period 2,510,801,654 1,843,761,737
Undistributed investment income-net 4,973,839 16,119,148
- ---------------------------------------------------------------------------------------------
Capital Share Transactions (Shares):
Shares sold 20,631,150 35,150,650
Shares issued for dividends reinvested 545,219 1,245,223
Shares redeemed (13,991,164) (26,259,775)
Net Increase (Decrease) in Shares Outstanding 7,185,205 10,136,098
</TABLE>
See notes to financial statements.
The Fund 23
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods
indicated. Total return shows how much yourinvestment in the Fund would have
increased (or decreased) during each period, assuming you had reinvested all
dividends and distributions. These figures have been derived from the Fund's
financial statements.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per-Share Data ($):
Net asset value,
beginning of period 32.76 27.73 22.06 18.38 16.41 16.88
Investment Operations:
Investment income--net .15 .34 .34 .33 .36 .39
Net realized and unrealized gain
(loss) on investments 7.02 5.46 6.37 3.89 3.36 .11
Total from Investment Operations 7.17 5.80 6.71 4.22 3.72 .50
Distributions:
Dividends from investment
income--net (.36) (.30) (.38) (.32) (.42) (.31)
Dividends from net realized
gain on investments -- (.47) (.66) (.22) (1.33) (.66)
Total Distributions (.36) (.77) (1.04) (.54) (1.75) (.97)
Net asset value, end of period 39.57 32.76 27.73 22.06 18.38 16.41
- ------------------------------------------------------------------------------------------------
Total Return (%) 21.98* 21.34 31.46 23.41 25.68 3.14
- ------------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of operating expenses to
average net assets .25* .50 .50 .57 .55 .61
Ratio of net investment income
to average net assets .45* 1.14 1.52 1.90 2.75 2.26
Decrease reflected in above
expense ratios due to
undertakings by the
Manager -- -- .05 -- -- .03
Portfolio Turnover Rate 8.16* 7.15 2.26 5.22 3.66 18.81
Net Assets, end of period
($ x 1,000) 2,510,802 1,843,762 1,279,451 591,631 336,147 245,202
<FN>
* Not annualized.
</FN>
</TABLE>
See notes to financial statements.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 1--Significant Accounting Policies:
Dreyfus S&P 500 Index Fund (the "Fund") is a separate non-diversified series of
Dreyfus Index Funds, Inc. (the "Company") which is registered under the
Investment Company Act of 1940, as amended (the "Act"), as an 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 price and yield performance of
publicly-traded common stocks in the aggregate, as represented by the Standard &
Poor's 500 Composite Stock Price Index. The Dreyfus Corporation ("Dreyfus")
serves as the Fund's investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. 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 Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to the fund's
operations; expenses which are applicable to all funds are allocated among them
on a pro rata basis.
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. Securities for
which there are no such valuations are valued at fair value as determined in
good faith under the direction of the Board of Directors. Bid price is used when
no asked price is available.
The Fund 25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
(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.
The Fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Fund's Manager, subject to the seller's
agreement to repurchase and the Fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the Fund's custodian and, pursuant to the terms of
the repurchase agreements, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligations, the Fund
maintains the right to sell the underlying securities at market value and may
claim any resulting loss against the seller.
(c) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
26
<PAGE>
The Fund has unused capital loss carryover of approximately $229,000
available for Federal income tax purposes to be applied against future
net securities profits, if any, realized subsequent to October 31, 1998.
If not applied, the carryover expires in fiscal 2006.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended April
30, 1999, the Fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions
With Affiliates:
(a) Pursuant to an Investment Management agreement ("Agree-ment") 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, commitment fees, 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
fees in an amount equal to the Fund's allocable portion of fees and expenses of
the non-interested Directors (including counsel). Each Director receives an
annual fee of $2,500 and an attendance fee of $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.
The Fund 27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
(b) Under the Shareholder Services Plan, the Fund pays the Distributor for the
provision of certain services a fee, 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,
financial institution or other industry professional) in respect of these
services. The distributor determines the amounts to be paid to Service Agents.
During the period April 30, 1999, the Fund was charged $2,696,538 pursuant to
the Shareholder Services Plan.
(c) A 1% redemption fee is charged and retained by the Fund on shares
redeemed with six months following the date of issuance, including
redemptions made through the use of the Fund Exchange privilege. During
the period ended April 30, 1999, redemption fees amounted to $11,548.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures during the period ended
April 30, 1999 amounted to $407,793,109 and $171,996,645, respectively.
The Fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The Fund is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the Fund to "mark to market" on a daily
basis, which reflects the change in the market value of the contract at the
close of each day's trading.
28
<PAGE>
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 April 30, 1999, are set
forth in the Statement of Financial Futures.
(b) At April 30, 1999, accumulated net unrealized appreciation on investments
and financial futures was $1,001,632,441, consisting of $1,025,131,605 gross
unrealized appreciation and $23,499,164 gross unrealized depreciation.
At April 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 29
<PAGE>
FOR MORE INFORMATION
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call 1-800-645-6561
By mail Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
By E-mail Send your request to [email protected]
On the Internet Information can be viewed online or downloaded from:
http://www.dreyfus.com
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(c) 1999, Dreyfus Service Corporation 078SA994
Dreyfus International Stock Index Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could
have an impact on the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- ---------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
26 Statement of Financial Futures
27 Statement of Assets and Liabilities
28 Statement of Operations
29 Statement of Changes in Net Assets
30 Financial Highlights
31 Notes to Financial Statements
FOR MORE INFORMATION
- --------------------------
Back Cover
<PAGE>
Dreyfus International
Stock Index Fund
The Fund
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus International
Stock Index Fund, covering the six-month period from November 1, 1998 through
April 30, 1999. Inside, you'll find valuable information about how the Fund was
managed during the reporting period, including a discussion with the Fund's
portfolio manager, Susan Ellison.
Many regional economies showed marked improvement after many of the world's
central banks lowered key short-term interest rates to stimulate economic
growth. Less restrictive monetary policies especially helped prevent further
economic deterioration in Japan, Asia, Latin America and Eastern Europe, where
the worst of the global currency and credit crisis appears to be behind us. In
contrast, some Western European economies slowed moderately after the formation
of the European Monetary Union (EMU) and the debut of a new currency, the euro.
These economic conditions produced mixed results for international stocks.
Stock markets in Japan, Asia and Latin America began to recover over the past
six months, showing their first signs of real strength in over a year. European
markets, on the other hand, provided disparate performance. For example, while
Spain and the United Kingdom experienced higher stock prices on average,
others, such as Germany, declined.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus International Stock Index Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Susan Ellison, Portfolio Manager
How did Dreyfus International Stock Index Fund perform during the period?
For the six-month period ended April 30, 1999, the Fund produced a total return
of 15.23%,1 meeting the Fund's goal of mirroring the return of its benchmark,
the Morgan Stanley Capital International Europe, Australasia, Far East ("MSCI-
EAFE") Free Index, which reported a total return of 15.27% for the same
period.2
What is the Fund's investment approach?
Over the past few years, many investors have come to view international
investing as a means by which to improve diversification, and seek
opportunities for growth outside the United States. Dreyfus International Stock
Index Fund seeks to provide its shareholders with an effective, low-cost way to
make a diversified investment in stock markets outside the United States. As an
index Fund, its goal is to match the risk and return characteristics of its
benchmark. Of course, investments in foreign securities involve special risks,
such as currency fluctuations, political instability and different auditing and
legal standards.
The MSCI-EAFE, Free Index is a broadly diversified international index composed
of approximately 1,000 stocks that trade in 20 major markets outside the United
States, including Great Britain, Germany and France in Europe, Japan, Hong Kong
and Singapore in Asia, as well as Australia and New Zealand. Weighted by the
market capitalization (the total value of all shares outstanding in a country's
stock market) the top five countries in the index (Great Britain, Japan,
Germany, France and Switzerland) represent approximately 71% of the total
Index's value. The Index also represents broad diversification across industry
groups, as those groups are represented in individual country markets.
In order to simplify management and control costs, the Fund attempts to match
the Index's return, not duplicate its composition.
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
The Fund starts by investing at the country level in proportion to a country's
weighting in the Index. That means if the Japanese market comprises 20% of the
Index, then approximately 20% of the Fund's investment will be in Japan. In
addition, the Fund's industry allocation also matches that of the Index, in the
proper proportion. For example, if a certain percentage of the market value in
the British sub-index is comprised of financial service firms, then that same
approximate percentage of the investment in the British market will also be in
that sector. At the individual company level, the Fund invests in a carefully
selected sample of the stocks that make up each country's index component. The
Fund also invests in securities that represent the market as a whole, such as
stock index futures, as well as managing its exposure to foreign currencies so
that the Fund's currency profile matches the currency make-up of the Index.
What factors influenced the Fund's performance?
The economy in the United States continues to be a locomotive for global
growth: growth in the U.S. over the period surprised even bullish analysts.
Despite full employment, inflation has remained moderate. These factors have
been especially important in helping the Latin American and Southeast Asian
markets recover from the financial setback suffered last fall.
In addition, global merger and restructuring activity is on the rise,
particularly within Europe, and Japan is addressing a number of its structural
deficiencies through asset-sales, spin-offs and recapitalizations. Each of
these moves has had a positive impact on stock market returns.
As an index fund, naturally, our results were dependent on the performance of
the stock markets that make up the benchmark. During the semiannual period,
economic and financial factors drove markets ahead in Japan 26.9%, Great
Britain 16.8%, Australia 25.1% and the Netherlands 12.8%, which served to push
the Index
4
<PAGE>
ahead as well. Recovery in several of the emerging markets was pronounced, with
Hong Kong and Singapore up 27.9% and 50.8%, respectively. On the other hand,
holdings in Switzerland (+0.9%), Belgium (-3.1%), and Spain (+3.1%), Germany
(+4.1%), and France (+11.2%) lagged broader index averages.
What is the Fund's current strategy?
We believe that investment in an index fund offers investors a cost-effective,
well-diversified approach to broad exposure in international stock markets. We
intend to continue to follow our strategy of remaining fully invested in such a
manner that the Fund mirrors the risk/return characteristics of the MSCI-EAFE
Free Index.
May 13, 1999
1 Total return includes reinvestment of dividends and any capital gains paid.
2 SOURCE: MORGAN STANLEY & CO., INCORPORATED -- The Morgan Stanley Capital
International Europe, Australasia, Far East ("MSCI-EAFE") Free Index, which
is the property of Morgan Stanley & Co., Incorporated, is an unmanaged index
composed of a sample of companies representative of the market structure of
European and Pacific Basin countries and includes net dividends reinvested.
The Index reflects actual investable opportunities for global investors for
stocks that are free of foreign ownership limits or legal restrictions at the
country level.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks--94.1% Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Australia--2.5%
AMP 2,800 32,756
Amcor 1,500 8,092
Boral 3,096 5,069
Brambles Industries 800 23,545
Broken Hill Proprietary 7,332 83,022
CSR 2,400 6,426
Coca-Cola Amatil 4,870 23,150
Coles Myer 6,803 36,203
Colonial 4,561 17,201
Crown 15,600 a 9,512
Delta Gold NL 4,600 7,165
Foster's Brewing 4,700 13,732
General Property Trust (Units) 5,413 9,665
Lend Lease 2,386 32,219
M.I.M. 14,451 8,524
National Australia Bank 5,126 99,955
Newcrest Mining 3,180 a 7,314
News 8,821 74,041
Normandy Mining 12,572 10,916
North 3,956 8,391
Orica 737 4,297
Pacific Dunlop 2,500 4,391
Pioneer International 2,100 5,136
Resolute 6,769 5,106
Rio Tinto 1,537 25,926
Santos 2,200 7,582
Schroders Property Fund (Units) 3,900 6,385
Sons Of Gwalia 3,900 11,767
Southcorp 1,475 6,061
Stockland Trust (Units) 2,586 6,342
TABCORP 800 6,517
Telstra 19,900 108,156
WMC 6,280 27,180
Westfield Trust (Units) 9,597 21,436
Westpac Banking 5,609 42,887
Westralian Sands 4,328 9,696
Woolworths 3,557 11,321
827,084
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Austria--.3%
Austria Tabakw 200 12,273
Bank Austria 325 20,187
Bau 150 4,920
Lenzing 180 9,903
Mayr-Melnhof Karton 115 5,594
Oesterreichische Elektrizitaetswirtschafts, Cl. A 190 29,751
Universale-Bau 210 6,665
89,293
Belgium--1.5%
Barco 140 25,299
Cimenteries CBR Cementbedrijven 50 4,655
Colruyt 12 8,221
Compagnie Maritime Belge 100 4,391
D'Ieteren 50 22,324
Electrabel 135 44,577
Fortis 2,462 82,702
Glaverbel 250 27,508
KBC Bancassurance 1,080 67,073
PetroFina 223 134,954
Solvay 500 34,914
Tractebel 60 8,259
UCB 200 9,310
Union Miniere 100 3,819
478,006
Denmark--.7%
A/S Dampskibsselskabet Svenborg 2 25,503
Aarhus Oliefabrik, Cl. A 100 2,707
Aarhus Oliefabrik, Cl. B 100 2,778
Bang & Olufsen, Cl. B 100 6,825
Carlsberg, Cl. A 100 4,659
Carlsberg, Cl. B 100 4,732
D/S 1912, Cl. B 3 27,141
Danisco 767 35,952
Den Danske Bank 290 33,467
ISS International Service System, Cl. B 75 4,413
Lauritzen (J.) 50 3,669
Novo Nordisk, Cl. B 225 22,119
Tele Danmark 505 52,163
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Denmark (continued)
Unidanmark, Cl. A 200 13,763
239,891
Finland--1.5%
Kone, Cl. B 230 24,553
Merita 2,000 11,850
Nokia 5,222 403,868
Sonera 1,500 29,677
UPM-Kymmene 750 22,686
492,634
France--8.5%
Accor 129 34,052
Air Liquide 460 71,055
Alcatel 675 82,984
Axa 1,408 182,037
Banque Nationale de Paris 723 60,009
Bongrain 50 19,367
Bouygues 100 25,455
CPR 200 10,326
Canal Plus 100 27,847
Cap Gemini 225 34,446
Carrefour 133 105,536
Chargeurs 10 555
Coflexip 100 8,993
Compagnie de Saint Gobain 381 65,503
Compagnie Financiere de Paribas 675 71,843
Compagnie Generale de Geophysique 90 4,828
Compagnie Generale des Etablissements Michelin, Cl. B 612 27,810
Danone 330 88,332
Dassault Systems 420 15,477
Elf Aquitaine 951 147,905
Eridania Beghin-Say 139 19,309
Essilor International 50 16,505
Etablissements Economiques du Casino
Guichard-Perrachon 255 25,144
France Telecom 3,859 312,132
Imetal 80 10,419
L'OREAL 239 153,234
LVMH 325 87,269
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
France (continued)
Lafarge 329 32,024
Lagardere S.C.A. 375 14,870
Legrand 45 10,760
Nord-Est 200 5,571
PSA Peugeot Citroen 150 24,916
Pathe 60 15,108
Pechiney, Cl. A 200 8,464
Pernod Ricard 300 20,266
Pinault-Printemps-Redoute 450 74,748
Primagaz Cie 130 10,453
Promodes 100 63,480
Rhone-Poulenc, Cl. A 1,357 64,607
SEITA 181 10,915
Sagem 19 10,654
Sanofi 452 70,919
Schneider 670 43,772
Sefimeg 70 4,607
Sidel 147 17,730
Simco 120 10,373
Societe Bic 250 14,045
Societe Eurafrance 45 22,662
Societe Generale, Cl. A 400 71,690
Sodexho Alliance 90 14,788
Sommer Allibert 100 3,068
Suez Lyonnaise des Eaux 478 81,422
Thomson CSF 451 14,792
Total, Cl. B 867 118,880
Unibail 50 6,348
Usinor 1,040 16,109
Valeo 295 24,969
Vivendi 688 160,940
Zodiac 20 4,435
2,776,757
Germany--9.5%
AMB Aachener & Muenchener Beteiligungs (Bearer) 50 5,290
AMB Aachener & Muenchener Beteiligungs (Reg'd) 160 17,097
AGIV 630 13,764
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Germany (continued)
Adidas-Salomon 230 22,679
Allianz 971 309,736
Axa Colonia Konzern 105 9,998
BASF 2,406 105,513
Bayer 3,135 133,337
Beiersdorf 155 10,659
Bilfinger & Berger Bau 220 5,295
Brau Und Brunnen 50 a 3,597
Buderus 40 13,585
Continental 600 14,918
DaimlerChrysler 3,866 382,232
Deutsche Bank 2,107 122,606
Deutsche Bank (New) 234 13,270
Deutsche Lufthansa 1,924 44,579
Deutsche Telekom 8,805 347,475
Deutz 500 a 3,862
Douglas 88 4,050
Dresdner Bank 1,960 84,606
FAG Kugelfischer 350 3,407
HERLITZ 100 a 3,005
Heidelberger Zement 220 14,920
Hochtief 100 3,862
HypoVereinsbank 1,866 121,810
IWKA 500 11,268
Karstadt 33 14,856
Linde 40 24,757
MAN 350 10,924
Mannesmann 1,590 209,605
Merck KGaA 1,050 35,549
Metro 1,193 86,334
Muenchener Rueckversicherungs-Gesellschaft (Bearer) 353 70,213
Muenchener Rueckversicherungs-Gesellschaft (Reg'd) 852 171,269
Preussag 500 26,344
Preussag (Rights) 500 471
RWE 1,836 84,110
Rheinmetall 200 4,973
SAP 228 73,091
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Germany (continued)
SGL Carbon 155 8,536
STRABAG 100 a 5,343
Salamandar 50 8,041
Schering 310 35,832
Siemens 2,310 171,079
Thyssen Krupp 1,650 36,136
Veba 1,508 82,805
Viag 76 38,676
Volkswagen 1,090 77,381
3,102,745
Hong Kong--2.6%
Bank of East Asia 12,000 29,185
CLP Holdings 11,740 63,013
Cathay Pacific Airways 18,000 28,914
Cheung Kong 10,000 90,962
Hang Seng Bank 6,400 75,763
Hong Kong & China Gas 40,631 57,143
Hong Kong Telecommunications 48,703 131,018
Hutchison Whampoa 14,000 125,540
Hysan Development 2,024 3,121
Johnson Electric 2,000 5,974
New World Development 14,326 35,489
Shangri-La Asia 34,000 40,359
Sino Land 6,230 3,597
South China Post 48,000 28,953
Sun Hung Kai Properties 8,384 73,558
Swire Pacific, Cl. A 4,000 22,450
Varitronix International 2,000 3,432
Wharf 6,000 14,709
Wing Lung Bank 1,000 3,948
837,128
Ireland--.6%
Allied Irish Banks 5,629 91,119
CRH 1,402 27,664
Crean (James) (Units) 3,444 4,008
Fyffes 5,063 11,517
Greencore 816 3,108
</TABLE>
The Fund 11
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Ireland (continued)
Irish Continental 800 10,792
Irish Life & Permanent 1,200 17,394
Jefferson Smurfit 2,000 5,459
Ryanair 600 a 5,269
Waterford Wedgwood (Units) 5,052 4,917
181,247
Italy--4.5%
Alitalia 5,500 a 17,003
Assicurazioni Generali 3,692 143,863
Banca Commerciale Italiana 11,462 94,759
Banca Popolare di Milano 500 4,247
Banca Intesa 8,360 44,693
Benetton 4,800 8,633
Bulgari 1,050 6,330
ENI 29,400 193,537
Edison 500 4,459
Fiat 23,850 80,141
Istituto Nazionale delle Assicurazioni 9,700 25,646
Italgas 7,836 35,276
Magneti Marelli 2,000 2,835
Mediaset 4,800 41,612
Mediobanca 7,754 97,633
Montedison 18,400 17,713
Olivetti 10,640 a 37,013
Pirelli 7,500 22,940
Riunione Adriatica di Sicurta 800 8,464
San Paolo-IMI 5,513 83,000
Telecom Italia 14,905 157,931
Telecom Italia (RNC) 4,100 22,040
Telecom Italia Mobile 29,546 178,118
Telecom Italia Mobile (RNC) 7,000 23,307
UNIM 9,700 5,542
Unicredito Italiano 18,990 a 96,720
1,453,455
Japan--22.0%
Acom 600 44,988
Advantest 300 22,946
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Ajinomoto 8,800 101,812
Aoyamma Trading 200 5,563
Asahi Bank 10,000 52,863
Asahi Breweries 1,000 13,036
Asahi Chemical Industry 16,900 98,400
Asahi Glass 3,800 29,097
Bank of Tokyo-Mitsubishi 17,620 260,097
Bridgestone 3,400 91,149
Canon 4,100 100,297
Chiba Bank 2,000 8,394
Chugai Pharmacetuical 400 4,759
Citzen Watch 3,000 24,882
Cosmo Oil 2,000 4,122
Credit Saison 500 10,221
Dai Nippon Printing 2,800 44,382
Daido Steel 200 313
Daiichi Pharmaceutical 1,000 16,253
Daikyo 2,000 5,714
Daiwa House Industry 4,400 52,528
Daiwa Securities 6,000 36,694
Denki Kagaku Kougyo 600 1,076
Denso 3,000 60,948
East Japan Railway 13 76,781
Ebara 1,000 12,156
Eisai 1,000 18,724
Fanuc 1,000 43,564
Fuji Bank 12,900 100,723
Fuji Photo Film 2,200 83,123
Fujita 2,000 a 1,558
Fujitsu 9,800 167,897
Furukawa Electric 5,000 21,866
Gunma Bank 1,000 7,289
Hankyu 2,000 8,411
Haseko 7,000 a 4,985
Higo Bank 1,000 4,155
Hitachi 18,900 138,071
Hokuriku Bank 4,000 8,043
</TABLE>
The Fund 13
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Honda Motor 3,400 149,826
House Food Industrial 1,220 18,326
Industrial Bank of Japan 9,200 76,689
Isetan 1,000 9,391
Itochu 6,500 17,153
Ito-Yokado 2,000 122,817
JUSCO 1,000 19,939
Japan Airlines 9,600 30,240
Japan Energy 3,600 4,705
Joyo Bank 462 1,838
Kajima 800 2,413
Kamigumi 400 1,927
Kandenko 105 663
Kansai Electric Power 8,399 165,707
Kao 2,000 50,769
Kawasaki Heavy Industries 2,000 5,043
Kawasaki Steel 19,600 37,602
Kinki Nippon Railway 2,995 15,130
Kirin Brewery 9,000 101,789
Komatsu 2,600 15,487
Konica 11,000 45,156
Kubota 3,000 8,520
Kumagai Gumi 7,000 a 8,093
Kyocera 1,200 71,277
Maeda Road Construction 200 1,320
Marubeni 20,000 46,245
Maruha 400 503
Marui 4,000 66,385
Matsushita Electric Industrial 11,400 216,797
Minebea 1,000 9,676
Mitsubishi 4,000 26,473
Mitsubishi Chemical 5,200 16,075
Mitsubishi Electric 5,000 17,467
Mitsubishi Estate 4,000 40,917
Mitsubishi Heavy Industries 29,700 130,131
Mitsubishi Paper Mills 2,000 3,753
Mitsubishi Trust & Banking 5,200 57,069
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Mitsui & Co. 4,400 32,254
Mitsui Fudosan 2,000 18,431
Mitsui Marine & Fire Insurance 600 3,328
Mitsui Trust & Banking 4,600 7,438
Murata Manufacturing 1,000 57,219
Mycal 1,000 6,199
NEC 4,800 57,343
NKK 12,000 9,551
NSK 3,000 16,915
Nikon 3,600 49,462
Nippon Express 10,000 65,346
Nippon Fire & Marine Insurance 8,000 26,674
Nippon Light Metal 400 607
Nippon Meat Packers 1,000 13,429
Nippon Mitsubishi Oil 2,800 12,503
Nippon Paper Industries 2,000 10,556
Nippon Steel 21,100 47,374
Nippon Telegraph & Telephone 49 533,656
Nippon Yusen Kabushiki Kaisha 10,800 42,073
Nissan Motor 10,000 38,370
Nomura Securities 8,000 86,323
Oji Paper 15,000 89,850
Orient 2,000 6,535
Orix 800 64,407
Osaka Gas 20,000 68,697
SMC 100 9,224
Sakura Bank 16,600 64,111
Sankyo 2,000 41,972
Sanwa Shutter 200 1,047
Sanyo Electric 4,000 14,979
Secom 1,000 97,683
Seino Transportation 1,000 6,040
Sekisui Chemical 1,000 6,685
Sekisui House 7,000 78,407
77 Bank 1,000 9,006
Sharp 6,000 70,372
Shin-Etsu Chemical 1,000 31,835
</TABLE>
The Fund 15
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Shiseido 1,000 15,750
Shizuoka Bank 1,400 16,502
Snow Brand Milk Products 500 2,597
Sony 1,440 134,512
Sumitomo 3,000 22,167
Sumitomo Bank 11,307 153,078
Sumitomo Chemical 4,000 17,861
Sumitomo Electric Industries 2,800 33,896
Sumitomo Metal Industries 19,000 25,309
Taiheiyo Cement 4,000 12,935
Taisho Pharmaceutical 1,000 30,746
Takara Standard 5,000 36,485
Takeda Chemical Industries 3,000 130,440
Teijin 3,000 12,617
Tohoku Electric Power 1,000 15,122
Tokai Bank 9,800 64,039
Tokio Marine & Fire Insurance 5,800 67,589
Tokyo Broadcasting System 2,000 26,021
Tokyo Dome 1,000 5,906
Tokyo Electric Power 4,272 91,263
Tokyo Electronics 1,000 56,968
Tokyo Gas 41,000 108,198
Tokyu 9,820 27,066
Toppan Printing 8,000 96,243
Toray Industries 24,000 127,273
Tostem 1,000 18,557
Toyo Engineering 5,000 5,697
Toyo Seikan Kaischa 1,000 20,358
Toyobo 1,200 1,910
Toyoda Automatic Loom Works 1,000 19,143
Toyota Motor 15,014 426,402
Ube Industries 600 1,221
Uni-Charm 1,000 45,323
Yamaha 1,000 10,615
Yamanouchi Pharmaceutical 1,000 31,668
Yamato Transport 400 6,692
Yamazaki Baking 1,000 12,659
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Yasuda Trust & Banking 12,000 15,482
Yokogawa Electric 2,900 15,695
7,159,097
Netherlands--5.9%
ABN AMRO 5,943 141,787
Aegon 2,570 246,755
Akzo Nobel 912 41,249
Buhrmann 480 8,811
Elsevier 2,100 31,438
Getronics 200 8,221
Hagemeyer 400 13,542
Heineken 1,332 66,940
Hollandsche Beton 310 4,411
IHC Caland 403 18,291
ING Groep 3,669 226,309
KLM 375 11,387
KPN 2,103 87,886
Koninklijke Ahold 2,138 79,509
Koninklijke Hoogovens 520 20,879
Koninklijke Nedlloyd 490 12,649
Koninklijke Pakhoed 550 12,744
Koninkilijke (Royal) Philips Electronics 1,470 126,754
Oce 120 3,529
Royal Dutch Petroleum 8,140 474,528
Stork 422 8,954
TNT Post 1,724 46,512
Unilever 2,555 175,167
Wolters Kluwer 1,040 45,333
Vedior 700 15,775
1,929,360
New Zealand--.3%
Brierley Investments 6,400 1,827
Carter Holt Harvey 4,200 6,158
Fisher & Paykel Industries 7,650 28,040
Lion Nathan 6,730 16,947
Telecom Corporation of New Zealand 6,700 34,869
87,841
</TABLE>
The Fund 17
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Norway--.5%
Aker RGI 2,040 26,854
Aker RGI B 408 5,240
Christiania Bank Og Kreditkasse 3,100 11,944
Den Norske Bank 2,300 8,330
Kvaerner 250 5,009
Merkantildata 300 3,005
NCL 1,000 a 2,581
Norsk Hydro 500 22,443
Orkla, Cl. A 800 13,459
Orkla, Cl. B 1,000 14,705
Petroleum Geo-Services 400 a 6,755
SAS Norge Cl. B 1,030 10,318
Schibsted 460 5,730
Smedvig, Cl. A 300 3,891
Storebrand 800 a 5,805
Tomra Systems 100 3,981
150,050
Portugal--.5%
BPI-SGPS 500 13,490
Banco Comercial Portugues 639 18,044
Banco Espirito Santo e Comercial de Lisboa 397 9,551
Brisa-Auto Estradas de Portugal 200 8,485
Cimpor-Cimentos de Portugal 200 5,502
Companhia de Seguros Tranquilidade 200 5,131
Corticiera Amorim SGPS 230 2,596
Electricidade de Portugal 1,900 35,782
Engil-SGPS 554 3,077
Jeronimo Martins 533 17,566
Portugal Telecom 645 26,921
Sociedade de Construcoes Soares da Costa 1,260 4,026
Sonae Investimentos-Sociedade Gestura de
Participacoes Sociais 300 10,725
160,896
Singapore--.9%
City Developments 3,000 20,018
Cycle & Carriage 4,000 23,856
DBS Land 2,000 3,708
Development Bank of Singapore 2,200 23,383
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Singapore (continued)
First Capital 9,000 11,957
Keppel 11,500 32,867
Oversea-Chinese Banking 2,898 27,209
Sembcorp Industries 8,037 a 10,014
Singapore Airlines 8,000 73,694
Singapore Press Holdings 900 13,286
Singapore Technology 6,000 6,448
Singapore Telecommunications 18,000 33,375
United Overseas Bank 2,000 15,470
295,285
Spain--3.1%
Argentaria 1,800 42,392
Autopistas, Concesionaria Espanola 661 8,357
Banco Bilbao Vizcaya 11,688 175,101
Banco Santander Cental Hispano 6,414 139,520
El Aguila 500 a 4,682
Endesa 5,203 115,820
Fomento de Construcciones y Contratas 650 39,784
Gas Natural SDG, Cl. E 650 52,575
Iberdrola 3,000 42,056
Repsol 4,800 78,207
Tabacalera, Cl. A 1,500 29,439
Telefonica 4,990 234,142
Telefonica (Rights) 4,990 4,646
Union Electrica Fenosa 2,100 27,972
994,693
Sweden--2.7%
ABB, Cl. A 2,600 36,321
ABB, Cl. B 3,642 50,878
AstraZeneca 4,689 183,445
Atlas Copco, Cl. A 300 8,097
Drott, Cl. B 600 4,993
Electrolux, Cl. B 1,000 20,331
Esselte, Cl. B 1,845 28,845
ForeningsSparbanken 1,650 36,292
Granges 500 8,501
Hennes & Mauritz, Cl. B 850 73,469
</TABLE>
The Fund 19
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Sweden (continued)
NetCom, Cl. B 200 a 6,444
OM Gruppen 200 2,556
Sandvik, Cl. A 200 4,518
Sandvik, Cl. B 200 4,530
Securitas, Cl. B 1,120 16,645
Skandia Forsakrings 1,845 35,755
Skandinaviska Enskilda Banken, Cl. A 2,600 34,003
Skanska, Cl. B 600 23,862
Svenska Cellulosa, Cl. B 500 12,811
Svenska Handelsbanken, Cl. A 900 33,813
Svenskt Stal, Cl. A 400 5,112
Svenskt Stal, Cl. B 400 5,089
Swedish Match 3,700 12,185
Telefonaktiebolaget LM Ericsson, Cl. B 8,300 218,577
Volvo, Cl. B 600 15,872
WM-Data, Cl. B 200 7,371
890,315
Switzerland--7.1%
ABB 26 37,997
Adecco 53 26,770
Alusuisse Lonza 31 37,159
Credit Suisse (Reg'd) 1,100 218,555
Georg Fischer 25 9,327
Holderbank Financiere Glarus (Bearer) 29 35,029
Holderbank Financiere Glarus (Reg'd) 117 34,889
Jelmoli 25 4,696
Kuoni Riesen 1 3,547
Moevenpick 15 7,685
Nestle 160 296,670
Novartis (Bearer) 25 36,634
Novartis (Reg'd) 243 356,400
Roche (Bearer) 6 105,970
Roche Ag-Genusss 28 329,931
SAirgroup 60 13,754
Schindler (Reg'd) 5 7,915
Schindler (Part. Cert) 5 7,373
Schweizerische Rueckversicherungs-Gesellschaft 61 133,739
Sulzer 20 12,729
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Switzerland (continued)
Swatch (Bearer) 33 23,582
Swatch (Reg'd) 142 21,638
Swisscom 295 a 108,506
UBS 884 300,763
Valora 39 9,119
Zurich Allied 223 139,732
2,320,109
United Kingdom--18.9%
AMEC 3,439 14,895
Abbey National 4,350 98,335
Allied Zurich 4,349 a 59,450
Anglian Water 569 6,413
Arjo Wiggins Appleton 3,233 9,890
Associated British Foods 2,930 21,571
AstraZeneca 2,900 113,604
BAA 2,394 25,055
BBA Group 807 6,458
BG 11,360 63,789
BOC Group 1,973 31,323
BP Amoco 34,876 662,054
Barclays 5,481 174,205
Barratt Developments 2,000 11,705
Bass 2,143 33,711
Berekeley 500 5,965
Blue Circle Industries 411 2,725
Boots 3,119 41,305
Bowthorpe 1,100 8,732
British Aerospace 5,046 37,779
British Airways 3,150 24,979
British America Tobacco 4,749 39,876
British Land 2,700 24,671
British Sky Broadcasting 5,780 51,092
British Steel 7,523 17,897
British Telecommunications 22,730 382,079
Bunzl 1,500 6,448
Burmah Castrol 800 13,673
CGU 4,400 69,534
Cable & Wireless 8,283 118,961
</TABLE>
The Fund 21
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
United Kingdom (continued)
Cadbury Schweppes 3,800 50,752
Carlton 709 6,901
Centrica 11,850 a 24,088
Coats Viyella 5,100 3,736
Cobham 250 3,844
Compass 2,425 24,872
De La Rue 1,000 4,605
Delta 1,200 3,159
Diageo 11,587 133,858
EMI 3,700 31,544
Electrocomponents 1,300 11,094
Elementis 6,105 9,830
English China Clay 1,500 6,038
GKN 1,800 30,764
General Electric 8,464 89,740
Glaxo Wellcome 12,347 365,393
Granada 2,813 60,148
Great Portland Estates 5,000 17,067
Great Universal Stores 3,800 43,655
Guardian Royal Exchange 5,939 36,624
HSBC Holdings 3,025 115,383
HSBC Holdings 6,412 241,374
Halifax 7,400 104,373
Hammerson 3,200 23,829
Hanson 3,367 33,503
Hepworth 1,500 4,444
Hyder 528 6,580
IMI 500 2,399
Imperial Chemical Industries 3,842 41,632
Invensys 17,177 87,894
Jarvis 500 4,178
Johnson Matthey 400 3,768
Kingfisher 5,529 82,791
LASMO 1,500 3,858
Ladbroke 3,099 15,106
Laird 1,300 6,478
Land Securities 2,050 26,851
Legal & General 22,140 64,433
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
United Kingdom (continued)
Lloyds TSB 19,493 314,014
MEPC 1,735 12,766
Marks & Spencer 9,345 63,872
Meyer International 2,929 21,340
Misys 2,004 18,827
National Grid 3,025 20,956
National Power 2,703 21,804
Next 1,790 22,106
Ocean 360 5,680
Pearson 1,450 30,864
Peninsular and Oriental Steam Navigation 2,329 33,881
Pilkington 3,700 4,766
Provident Financial 300 5,009
Prudential 6,600 94,205
RMC 1,500 22,702
Racal Electronic 1,800 12,433
Railtrack 2,042 42,643
Rank 2,061 8,528
Reed International 3,590 32,687
Rentokil Initial 11,600 68,312
Reuters 4,943 67,012
Rexam 855 3,373
Rexam, Cl. B 517 a 807
Rio Tinto 4,650 81,271
Rolls-Royce 2,958 13,716
Royal & Sun Alliance Insurance 5,463 47,146
Royal Bank Of Scotland 2,915 68,806
Safeway 3,100 12,915
Sainsbury (J.) 8,650 55,013
Schroders 975 22,983
Scottish & Newcastle 2,700 33,757
Scottish & Southern Electric 1,230 11,556
Scottish Power 4,500 37,169
Slough Estate 1,200 6,511
SmithKline Beecham 18,955 250,870
Smiths Industries 500 7,753
St. James's Place Capital 2,300 10,221
Stagecoach 3,826 12,921
</TABLE>
The Fund 23
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
United Kingdom (continued)
TI 2,000 16,632
Tarmac 4,353 8,340
Tate & Lyle 2,500 17,218
Taylor Woodrow 1,500 4,710
Tesco 26,677 79,355
Thames Water 1,213 16,835
Transport Development, Cl. B 1,209 4,429
Unigate 4,284 32,212
Unilever 11,040 97,943
United Utilities 1,680 19,016
Vodafone 11,017 203,105
Williams 646 4,441
Wilson Connolly Holdings 4,180 12,114
Wimpey (George) 4,000 10,562
Wolseley 2,383 21,352
6,154,219
Total Common Stocks
(cost $26,618,161) 30,620,105
- -----------------------------------------------------------------------------------
Preferred Stocks--.6%
- -----------------------------------------------------------------------------------
Australia--.2%
News 8,545 66,899
Austria--.0%
Bau 130 4,030
Germany--.4%
Axa Colonia Konzern 50 3,968
Dyckerhoff 15 4,126
Friedrich Grohe 40 11,426
HERLITZ 100 a 2,148
MAN 250 5,026
Metro 185 6,948
RWE 214 6,498
Rheinmetall 200 3,904
SAP 166 62,348
Volkswagen 200 8,411
114,803
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Italy--.0%
Fiat 2,000 3,430
Total Preferred Stocks
(cost $194,687) 189,162
- -----------------------------------------------------------------------------------
Principal
Short-Term Investments--4.2% Amount ($) Value ($)
- -----------------------------------------------------------------------------------
U.S. Treasury Bills:
4.39%, 5/6/1999 129,000 128,920
4.53%, 6/3/1999 100,000 b 99,599
4.28%, 6/10/1999 45,000 44,783
4.36%, 6/17/1999 829,000 824,291
4.24%, 7/22/1999 267,000 264,318
- -----------------------------------------------------------------------------------
Total Short-Term Investments
(cost $1,361,998) 1,361,911
- -----------------------------------------------------------------------------------
Total Investments (cost $28,174,846) 98.9% 32,171,178
Cash and Receivables (Net) 1.1% 354,860
Net Assets 100.0% 32,526,038
<FN>
a Non-income producing.
b Held by the custodian in a segregated account as collateral for open
financial futures positions.
See notes to financial statements.
</FN>
</TABLE>
The Fund 25
<PAGE>
STATEMENT OF FINANCIAL FUTURES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Market Value Unrealized
Covered Appreciation
Contracts by Contracts ($) Expiration at 4/30/99 ($)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Financial Futures Long:
CAC 40 4 189,336 June '99 13,156
Financial Times 100 9 958,343 June '99 47,756
Nikkei 300 18 396,878 June '99 49,102
110,014
<FN>
See notes to financial statements.
</FN>
</TABLE>
26
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Cost Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments 28,174,846 32,171,178
Cash 119,378
Cash denominated in foreign currencies 329,318 329,631
Dividends receivable 118,848
Receivable for shares of Common Stock subscribed 116,706
Receivable for futures variation margin--Note 4(a) 1,014
32,856,755
- --------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 9,106
Due to Distributor 6,504
Payable for investment securities purchased 289,751
Payable for shares of Common Stock redeemed 21,508
Net unrealized (depreciation) on forward currency
exchange contracts--Note 4(a) 3,848
330,717
- --------------------------------------------------------------------------------
Net Assets ($) 32,526,038
- --------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 28,596,007
Accumulated undistributed investment income--net 134,552
Accumulated net realized gain (loss) on investments (306,753)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions
(including $110,014 net unrealized appreciation on
financial futures) 4,102,232
- --------------------------------------------------------------------------------
Net Assets ($) 32,526,038
- --------------------------------------------------------------------------------
Shares Outstanding
(200 million shares of $.001 par value Common Stock authorized) 2,319,738
- --------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share--Note 3(c) ($) 14.02
<FN>
See notes to financial statements.
</FN>
</TABLE>
The Fund 27
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
- ---------------------------------------------------------------------------------------
Investment Income ($)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Income:
Cash dividends (net of $28,031 foreign taxes withheld at source) 191,930
Interest 32,387
Total Income 224,317
Expenses:
Management fee--Note 3(a) 49,535
Shareholder servicing costs--Note--3(b) 35,383
Loan commitment fees--Note 2 56
Total Expenses 84,974
Investment Income--Net 139,343
- -----------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments and foreign currency transactions (135,464)
Net realized gain (loss) on forward currency exchange contracts (43,146)
Net realized gain (loss) on financial futures 182,161
Net Realized Gain (Loss) 3.551
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (including $93,030
net unrealized appreciation on financial futures) 3,860,593
Net Realized and Unrealized Gain (Loss) on Investments 3,864,144
Net Increase in Net Assets Resulting From Operations 4,003,487
<FN>
See notes to financial statements.
</FN>
</TABLE>
28
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October- 31, 1998
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income--net 139,343 203,555
Net realized gain (loss) on investments 3,551 (220,229)
Net unrealized appreciation (depreciation) on investments 3,860,593 1,219,706
Net Increase (Decrease) in Net Assets
Resulting from Operations 4,003,487 1,203,032
- ------------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net (187,311) (82,326)
- ------------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold 5,236,468 3,574,583
Net assets received in connection with reorganization-Note 1 - 12,979,451
Dividends reinvested 172,144 82,235
Cost of shares redeemed (1,585,426) (2,116,445)
Increase (Decrease) in Net Assets from Capital
Stock Transactions 3,823,186 14,519,824
Total Increase (Decrease) in Net Assets 7,639,362 15,640,530
- ------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 24,886,676 9,246,146
End of Period 32,526,038 24,886,676
Undistributed investment income--net 134,552 182,520
- ------------------------------------------------------------------------------------
Capital Share Transactions (Shares):
Shares sold 395,968 292,582
Shares issued in connection with reorganization--Note 1 -- 1,087,174
Shares issued for dividends reinvested 13,031 7,483
Shares redeemed (120,220) (176,433)
Net Increase (Decrease) in Shares Outstanding 288,779 1,210,806
<FN>
See notes to financial statements.
</FN>
</TABLE>
The Fund 29
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Certain information reflects financial results for a single Fund share. "Total
return" shows how much your investment in the Fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the Fund's financial
statements.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
---------------------------
(Unaudited) 1998 1997a
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.25 11.27 12.50
Investment Operations:
Investment income--net .06 .12 .07
Net realized and unrealized gain
(loss) on investments 1.80 .96 (1.30)
Total from Investment Operations 1.86 1.08 (1.23)
Distributions:
Dividends from investment
income--net (.09) (.10) --
Net asset value, end of period 14.02 12.25 11.27
Total Return (%) 15.23b 9.68 (9.84)b,c
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets .30b .60 .20b
Ratio of net investment income
to average net assets .49b 1.32 .32b
Portfolio Turnover Rate 3.21b 22.62 .16b
Net Assets, end of period ($ x 1,000) 32,526 24,887 9,246
<FN>
a From June 30, 1997 (commencement of operations) to October 31, 1997.
b Not annualized.
c Exclusive of redemption fee.
See notes to financial statements.
</FN>
</TABLE>
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus International Stock Index Fund (the "Fund") is a separate non-
diversified series of Dreyfus Index Fund, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an 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 net dividend
and total return performance of equity securities of international issuers in
the aggregate, as represented by the Morgan Stanley Capital International
Europe, Australia, Far East (Free) Index. The Dreyfus Corporation ("Dreyfus")
serves as the Fund's investment advisor. 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.
On June 9, 1998, the Board of Directors of the Fund approved an Agreement and
Plan of Reorganization providing for the transfer of all or substantially all of
the Dreyfus International Equity Allocation Fund's assets and liabilities to the
Fund in a tax free exchange of Common Stock of the Fund at net asset value and
the assumption of stated liabilities (the "Exchange"). The Exchange was approved
by the shareholders of Dreyfus International Equity Allocation Fund on June 9,
1998, and was consummated after the close of business on June 26, 1998 at which
time 1,315,173 shares valued at $10.56 per share, representing net assets of
$13,890,696 [including $911,245 net unrealized appreciation on investments] were
exchanged by Dreyfus International Equity Allocation Fund for the respective
numbers of shares of the Fund.
As of April 30, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Bank Corporation, held 1,186,742 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.
The Fund 31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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. Investments denominated in foreign currencies
are translated to U.S. dollars at the prevailing rates of exchange. Forward
currency exchange contracts are valued at the forward rate. Securities for which
there are no such valuations are valued at fair value as determined in good
faith under the direction of the Board of Directors.
(b) Foreign currency transactions: The Fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gain and losses are included with net realized
and unrealized gain or loss on investments.
32
<PAGE>
(c) 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.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gains.
(e) Federal income taxes: It is the policy of the Fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $876,000
available for Federal income tax purposes, to be applied against future net
securities profits, if any, realized subsequent to October 31, 1998. A portion
of this loss which can be utilized in subsequent years is subject to an annual
limitation due to the Fund's merger with Dreyfus International Equity Allocation
Fund. If not applied, $622,000 of the carryover expires in fiscal 2000, $27,000
expires in fiscal 2002, $58,000 expires in fiscal 2005 and $169,000 expires in
fiscal 2006.
The Fund 33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed Funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended April
30, 1999, the Fund did not borrow under the Facility.
NOTE 3--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 .35 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, commitment fees, 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 expenses of
the non-interested Directors (including counsel). Each Director receives an
annual fee of $2,500 and an attendance fee of $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 (with the exception of reimburseable
amounts). 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.
34
<PAGE>
(b) Under the Shareholder Services Plan, the Fund pays the Distributor for the
provision of certain services, a fee 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,
financial institution or other industry professional) in respect of these
services. The Distributor determines the amounts to be paid to Service Agents.
During the period ended April 30, 1999, the Fund was charged $35,383 pursuant to
the Shareholder Services Plan.
(c) A 1% redemption fee is charged and retained by the Fund on shares redeemed
within six months following the date of issuance, including redemptions made
through the use of the Fund Exchange privilege.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, forward currency exchange contracts and
financial futures, during the period ended April 30, 1999 amounted to $4,341,832
and $864,300, respectively.
The following summarizes open forward currency exchange contracts at April 30,
1999:
<TABLE>
<CAPTION>
Foreign Unrealized
Currency Appreciation
Forward Currency Exchange Contracts Amounts Cost ($) Value ($) (Depreciation) ($)
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
British Pounds, expiring 5/7/99 16,770 27,014 27,002 (12)
British Pounds, expiring 6/30/99 561,000 904,416 902,778 (1,638)
Euro Dollars, expiring 6/30/99 163,085 175,240 173,198 (2,042)
Japanese Yen, expiring 5/10/99 11,885,500 99,627 99,573 (54)
Japanese Yen, expiring 6/30/99 42,036,000 354,644 354,715 71
Swiss Franc, expiring 5/4/99 54,739 36,127 35,954 (173)
Total (3,848)
</TABLE>
The Fund 35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The Fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the Fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the Fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The Fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the Fund would incur a loss if the value
of the contract decreases between the date the forward contract is opened and
the date the forward contract is closed. The Fund realizes a gain if the value
of the contract increases between those dates. The Fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain on
each open contract.
The Fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The Fund is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the Fund to "mark to market" on a daily
basis, which reflects the change in the market value of the contract at the
close of each day's trading. 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 April 30, 1999, are set
forth in the Statement of Financial Futures.
36
<PAGE>
(b) At April 30, 1999, accumulated net unrealized appreciation on investments,
forward currency exchange contracts and financial futures was $4,102,498,
consisting of $6,394,952 gross unrealized appreciation and $2,292,454 gross
unrealized depreciation.
At April 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 37
<PAGE>
For More Information
Dreyfus International
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 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call 1-800-645-6561
By mail Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
By E-mail Send your request to [email protected]
On the Internet Information can be viewed online or downloaded from:
http://www.dreyfus.com
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(c) 1999 Dreyfus Service Corporation 079SA994
