<PAGE>
Dreyfus
Edison Electric
Index Fund, Inc.
Semi-Annual
Report
April 30, 1995
<PAGE>
LETTER TO SHAREHOLDERS
- -----------------------------------------------------------------------------
Dear Shareholder:
It is a pleasure to report that in the past six months, the trend of total
return for shares in Dreyfus Edison Electric Index Fund, Inc. turned upward.
For the six months ended April 30, 1995, the Fund's total return was
8.51%.* This compares with a total return of 9.37% for the index of stocks of
member companies of the Edison Electric Institute ("the EEI Index"), which the
Fund attempts to duplicate.
Major influences on the Fund's performance were the course of interest
rates, which are a major component of utility operating costs, and the strength
in the bond market.
During the early part of the six months under review, the Federal Reserve
Board stayed with its policy of restraining inflation by means of a series of
steps to raise interest rates that were initiated in February, 1994. Starting
a few months ago, the Fed's policies began to bear fruit in the slowdown of
inflation, and the economic factors that create it. Lately, long-term interest
rates have dropped below 7%, and many economists believe that the Federal
Reserve may not need to raise interest rates again in the near future. This is
favorable for utility companies that are so dependent on borrowed funds, and
also are sensitive to inflationary pressures.
In addition, while the U.S. economy advanced at a more moderate pace,
demand for electric energy continued to be strong. Furthermore, there was talk
in the air of possible consolidation of the industry through mergers and
acquisitions, which gave added strength to certain company stocks.
All in all, the period was a favorable one for the stockholder-owned
providers of electric power, and the price of their stocks in the marketplace
reflected this.
Sincerely,
The Dreyfus Corporation
Administrator
May 8, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
<PAGE>
DREYFUS EDISON ELECTRIC INDEX FUND, INC.
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STATEMENT OF INVESTMENTS APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES COMMON STOCKS--97.7% VALUE
-------- ----------
<S> <C> <C>
44,350 Allegheny Power System .................. $1,042,225
69,850 American Electric Power .................. 2,287,588
19,900 Atlantic Energy .......................... 360,688
55,600 Baltimore Gas & Electric ................. 1,313,550
8,100 Bangor Hydro Electric .................... 84,038
5,150 Black Hills .............................. 113,300
16,875 Boston Edison ............................ 402,891
4,725 CILCORP .................................. 171,872
12,700 CIPSCO ................................... 368,300
32,050 CMS Energy ............................... 749,169
59,000 Carolina Power & Light ................... 1,622,500
54,625 Centerior Energy ......................... 484,797
71,750 Central & South West ..................... 1,766,844
6,175 Central Hudson Gas & Electric ............ 159,778
8,250 Central Louisiana Electric ............... 189,750
11,775 Central Maine Power ...................... 130,997
6,300 Central Vermont Public Service ........... 85,838
58,598 CiNergy .................................. 1,472,275
3,775 Commonwealth Energy Systems .............. 154,775
88,750 Consolidated Edison ...................... 2,462,813
40,200 DPL ...................................... 839,175
19,950 DQE ...................................... 673,313
21,925 Delmarva Power & Light ................... 427,538
54,650 Detroit Edison ........................... 1,543,863
65,025 Dominion Resources ....................... 2,373,413
77,450 Duke Power ............................... 3,059,275
3,877 ESELCO ................................... 83,838
7,300 Eastern Utilities Association ............ 174,287
57,425(a) El Paso Electric ......................... 82,548
5,100 Empire District Electric ................. 86,062
85,917 Entergy .................................. 1,868,693
70,575 FPL Group ................................ 2,593,631
35,112 Florida Progress ......................... 1,070,916
43,475 General Public Utilities ................. 1,239,037
3,275 Green Mountain Power ..................... 83,922
10,300 Hawaiian Electric Industries ............. 356,637
49,550 Houston Industries ....................... 1,957,225
10,450 IES Industries ........................... 216,837
14,075 IPALCO Enterprises ....................... 443,362
13,850 Idaho Power .............................. 335,862
28,450 Illinova ................................. 661,462
3,550 Interstate Power ......................... 85,644
10,925 Iowa-Illinois Gas & Electric ............. 229,425
14,100 KU Energy ................................ 384,225
23,200 Kansas City Power & Light ................ 527,800
12,350 LG & E Energy ............................ 477,019
43,925 Long Island Lighting ..................... 653,384
6,950 MDU Resources Group ...................... 191,994
3,875 Madison Gas & Electric ................... 123,031
4,075 Maine Public Service ..................... 82,519
20,425 Midwest Resources ........................ 291,056
11,600 Minnesota Power & Light .................. 303,050
19,575 Montana Power ............................ 452,672
24,775 NIPSCO Industries ........................ 798,994
16,875 Nevada Power ............................. 333,281
24,425 New England Electric System .............. 735,803
26,350 New York State Electric & Gas ............ 576,406
54,125 Niagara Mohawk Power ..................... 750,984
46,850 Northeast Utilities ...................... 1,024,844
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
--------- -----------
<S> <C> <C>
25,200 Northern States Power .................... $ 1,115,100
3,050 Northwestern Public Service .............. 83,112
57,525 Ohio Edison .............................. 1,157,691
15,075 Oklahoma Gas & Electric .................. 518,203
4,925 Orange/Rockland Utilities ................ 156,369
4,025 Otter Tail Power ......................... 132,825
83,725 PECO Energy .............................. 2,155,919
163,525 Pacific Gas & Electric ................... 4,394,734
107,375 PacifiCorp ............................... 2,040,125
57,225 Pennsylvania Power & Light ............... 1,051,509
32,775 Pinnacle West Capital .................... 704,662
18,525 Portland General ......................... 384,394
44,175 Potomac Electric Power ................... 861,412
22,550 Public Service Co. of Colorado ........... 679,319
15,400(a) Public Service Co. of New Mexico ......... 196,350
92,475 Public Service Enterprise Group .......... 2,543,062
23,625 Puget Sound Power & Light ................ 502,031
13,750 Rochester Gas & Electric ................. 283,594
17,500 SCANA .................................... 750,312
169,300 SCEcorp .................................. 2,835,775
2,725 St. Joseph Light & Power ................. 80,387
43,825 San Diego Gas & Electric ................. 925,803
10,675 Sierra Pacific Resources ................. 222,841
247,250 Southern ................................. 5,099,531
5,783 Southern Indiana Gas & Electric .......... 174,936
15,250 Southwestern Public Service .............. 434,625
43,550 TECO Energy .............................. 925,438
5,425 TNP Enterprises .......................... 86,122
85,375 Texas Utilities .......................... 2,785,359
59,150(a) Tucson Electric Power .................... 199,631
11,850 UGI ...................................... 229,594
4,988 UNITIL ................................... 82,302
80,950 Unicom ................................... 2,124,938
38,575 Union Electric ........................... 1,374,234
5,175 United Illuminating ...................... 166,247
5,150 Upper Peninsula Power .................... 82,400
16,475 UtiliCorp United ......................... 461,300
11,325 WPL Holdings ............................. 321,347
8,875 WPS Resources ............................ 256,266
19,450 Washington Water Power ................... 299,044
23,199 Western Resources ........................ 704,670
40,212 Wisconsin Energy ......................... 1,115,883
-----------
TOTAL COMMON STOCKS
(cost $94,153,251) ..................... $84,316,411
===========
<CAPTION>
PRINCIPAL
AMOUNT SHORT-TERM INVESTMENTS--.6%
---------
<S> <C> <C>
$506,000 U.S. Treasury Bills;
5.59%, 7/27/1995
(cost $498,783) ........................ $ 498,783
===========
TOTAL INVESTMENTS
(cost $94,652,034) ............................ 98.3% $84,815,194
====== ===========
CASH AND RECEIVABLES (NET) ...................... 1.7% $ 1,439,421
====== ===========
NET ASSETS ...................................... 100.0% $86,254,615
====== ===========
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
<PAGE>
DREYFUS EDISON ELECTRIC INDEX FUND, INC.
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STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $94,652,034)--see statement ..................................... $ 84,815,194
Cash ...................................................................... 15,136
Receivable for investment securities sold ................................. 1,195,252
Dividends receivable ...................................................... 623,941
Prepaid expenses .......................................................... 20,827
------------
86,670,350
LIABILITIES:
Due to Wells Fargo Nikko Investment Advisors .............................. $ 27,968
Due to Wells Fargo Institutional Trust Company, N.A. ...................... 31,813
Due to The Dreyfus Corporation ............................................ 42,029
Payable for Common Stock redeemed ......................................... 232,484
Accrued expenses ......................................................... 81,441 415,735
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NET ASSETS .................................................................... $ 86,254,615
============
REPRESENTED BY:
Paid-in capital ........................................................... $101,127,707
Accumulated undistributed investment income-net ........................... 299,333
Accumulated net realized (loss) on investments ............................ (5,335,585)
Accumulated net unrealized (depreciation) on investments--Note 3 .......... (9,836,840)
------------
NET ASSETS at value applicable to 7,282,222 outstanding shares of
Common Stock, equivalent to $11.84 per share (200 million shares of
$.001 par value authorized) ............................................... $ 86,254,615
============
</TABLE>
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends ........................................................ $ 2,848,084
Interest .............................................................. 60,240
-----------
TOTAL INCOME ...................................................... $ 2,908,324
EXPENSES:
Index management fee--Note 2(a) ....................................... 40,032
Administration fee--Note 2(a) ......................................... 59,958
Shareholder servicing costs--Note 2(b) ................................ 150,415
Custodian fees ........................................................ 37,849
Professional fees ..................................................... 18,740
Registration fees ..................................................... 12,369
Directors' fees and expenses--Note 2(c) ............................... 9,486
Prospectus and shareholders' reports .................................. 4,888
Miscellaneous ......................................................... 19,396
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TOTAL EXPENSES .................................................... 353,133
------------
INVESTMENT INCOME-NET ............................................. 2,555,191
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments--Note 3 ................................ $(3,984,471)
Net unrealized appreciation on investments ................................ 6,817,727
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS ................... 2,833,256
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................... $ 5,388,447
============
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS EDISON ELECTRIC INDEX FUND, INC.
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1995
1994 (UNAUDITED)
----------- -----------
<S> <C> <C>
OPERATIONS:
Investment income-net ........................................................ $ 5,021,825 $ 2,555,191
Net realized (loss) on investments ........................................... (1,108,323) (3,984,471)
Net unrealized appreciation (depreciation) on investments for the period ..... (23,241,389) 6,817,727
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... (19,327,887) 5,388,447
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net ........................................................ (4,973,199) (2,567,548)
Net realized gain on investments ............................................. (1,583,630) --
----------- -----------
TOTAL DIVIDENDS .......................................................... (6,556,829) (2,567,548)
----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold ................................................ 21,670,447 55,084,693
Dividends reinvested ......................................................... 6,267,926 2,382,017
Cost of shares redeemed ...................................................... 48,302,007) (45,619,874)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS ........ (20,363,634) 11,846,836
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TOTAL INCREASE (DECREASE) IN NET ASSETS .............................. (46,248,350) 14,667,735
NET ASSETS:
Beginning of period .......................................................... 117,835,230 71,586,880
----------- -----------
End of period (including undistributed investment income-net:
$311,690 in 1994 and $299,333 in 1995) ................................... $71,586,880 $86,254,615
=========== ===========
<CAPTION>
Shares Shares
----------- -----------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold .................................................................. 1,734,060 4,638,829
Shares issued for dividends reinvested ....................................... 509,209 208,470
Shares redeemed .............................................................. (3,914,083) (3,915,101)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING ............................ (1,670,814) 932,198
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS EDISON ELECTRIC INDEX FUND, INC.
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FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net assets
and other supplemental data for each period indicated. This information has
been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, SIX MONTHS ENDED
---------------------------------- APRIL 30,1995
PER SHARE DATA: 1992(1) 1993 1994 (UNAUDITED)
------- ------ ------ -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .......................... $12.50 $13.05 $14.69 $11.27
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net ........................................ .60 .62 .72 .37
Net realized and unrealized gain (loss) on investments ........ .51 1.66 (3.23) .57
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS .......................... 1.11 2.28 (2.51) .94
------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net ......................... (.56) (.63) (.70) (.37)
Dividends from net realized gain on investments ............... -- (.01) (.21) --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ....................................... (.56) (.64) (.91) (.37)
------ ------ ------ ------
Net asset value, end of period ................................ $13.05 $14.69 $11.27 $11.84
====== ====== ====== ======
TOTAL INVESTMENT RETURN ....................................... 9.11%(2) 17.71% (17.41%) 8.51%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets ....................... .24%(2) .75% .74% .44%(2)
Ratio of net investment income to average net assets .......... 5.31%(2) 4.80% 5.66% 3.17%(2)
Decrease reflected in above expense ratios due to
undertakings by WFNIA and Dreyfus ......................... .95%(2) .09% -- --
Portfolio Turnover Rate ....................................... 2.76%(2) 14.14% 8.92% 29.29%
Net Assets, end of period (000's Omitted) ..................... $36,861 $117,835 $71,587 $86,255
<FN>
- --------------
(1) From December 6, 1991 (commencement of operations) to October 31, 1992.
(2) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS EDISON ELECTRIC INDEX FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Wells Fargo Nikko Investment Advisors ("WFNIA") serves as the Fund's index
manager. WFNIA is a registered investment adviser. Wells Fargo Institutional
Trust Company, N.A. an affiliate of WFNIA, is the custodian of the Fund's
investments. The Dreyfus Corporation ("Dreyfus") serves as the Fund's
administrator. Premier Mutual Fund Services, Inc. (the "Distributor") acts as
the exclusive distributor of the Fund's shares, which are sold to the public
without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company of
which is Boston Institutional Group, Inc. Dreyfus is a direct subsidiary of
Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in securities (including financial
futures) are valued at the last sales price on the securities exchange on which
such securities are primarily traded or at the last sales price on the national
securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a
quarterly basis. Dividends from net realized capital gain, if any, are
normally declared and paid annually, but the Fund may make distributions on a
more frequent basis to comply with the distribution requirements of the
Internal Revenue Code. To the extent that net realized capital gain can be
offset by capital loss carryovers, it is the policy of the Fund not to
distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise
taxes.
The Fund has an unused capital loss carryover of approximately $512,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1994. If not
applied, the carryover expires in fiscal 2002.
NOTE 2--MANAGEMENT FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) Fees paid by the Fund pursuant to the provisions of an Index Management
Agreement with WFNIA and an Administration Agreement with Dreyfus are payable
monthly. WFNIA and Dreyfus receive annual fees of .10 of 1% and .15 of 1%,
respectively, of the average daily value of the Fund's net assets. The
agreements further provide that if the aggregate expenses of the Fund,
exclusive of interest, taxes, brokerage and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over
<PAGE>
DREYFUS EDISON ELECTRIC INDEX FUND, INC.
- --------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the Fund, the Fund may deduct from the fees to be paid to each of WFNIA and
Dreyfus, or WFNIA and Dreyfus will each bear, such excess expense in proportion
to their respective fees. The most stringent state expense limitation
applicable to the Fund presently requires reimbursement of expenses in any full
fiscal year that such expenses exceed 21/2% of the first $30 million, 2% of the
next $70 million and 11/2% of the excess over $100 million of the average value
of the Fund's net assets in accordance with California "blue sky" regulations.
There was no expense reimbursement for the six months ended April 30, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, an amount
not to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for servicing shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the six months ended April 30, 1995, the Fund was charged an aggregate
of $99,990 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities, other
than short-term securities, for the six months ended April 30, 1995 amounted to
$34,532,337 and $23,480,281, respectively.
At April 30, 1995, accumulated net unrealized depreciation on investments
was $9,836,840, consisting of $57,557 gross unrealized appreciation and
$9,894,397 gross unrealized depreciation.
At April 30, 1995, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
<PAGE>
[LOGO]
DREYFUS EDISON ELECTRIC
INDEX FUND, INC.
200 Park Avenue
New York, NY 10166
INDEX FUND MANAGER
Wells Fargo Nikko
Investment Advisors
45 Fremont Street
San Francisco, CA 94105
ADMINISTRATOR
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Wells Fargo Institutional
Trust Company, N.A.
45 Fremont Street
San Francisco, CA 94105
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 114SA954
