PRESIDENT'S LETTER
Dear Shareholder:
We are pleased to report that Peoples S&P MidCap Index Fund provided
a total return of 21.22% for the fiscal year ended October 31, 1993.*
This compares with a total return of 21.53% for the Standard &
Poor's MidCap 400 Index itself, whose performance the Fund is designed
to mirror.** The difference between the Fund's return and that of the
S&P MidCap 400 Index+ is due to various factors, including commission
expenses, transaction costs, and the imposition of some other Fund
expenses.
As the results indicate, mid-cap stocks performed very well during
the 12-month period under review, especially during the latter half of
the fiscal year.
The U.S. economy's gradual recovery from the recession was a major
factor. In addition, many investors, either on their own or through
intermediaries, sought out medium capitalization stocks. Their motive
was to seek better returns than could be obtained from alternative
investments in an environment of declining interest rates that prevailed
all year.
To be sure, there was no lack of problems in the economy.
Unemployment hovered stubbornly around the 7% level, Congress did not go
along with the President's full proposals for deficit cuts, and taxes
were raised. From time to time, statistics indicating stronger economic
growth renewed fears that inflation might return at some point in the
future.
For the most part, however, the economic news was encouraging.
Prices and wages were under little upward pressure, and interest rates
continued to be low by the standards of recent years. This provided a
favorable background for higher industrial production and factory
orders. A fairly stable U.S. dollar at reasonable rates of exchange
continued to encourage exports.
Though Europe and Japan were gripped by recession, the American
economy appeared to be returning to better economic health, and at a
pace that--so far at least--avoided inflationary pressures. This has
also been reflected in recent corporate profit reports.
In the stock market, the strong flow of investment funds into
equities has encouraged a large increase in the supply of new issues
coming to market. So far, however, demand appears to have kept pace with
supply.
Thus, as we begin a new fiscal year for the Fund, and approach the
end of the calendar year, we remain optimistic for returns on stocks in
midsize capitalization companies such as represented by the Peoples S&P
MidCap Index Fund.
Sincerely,
Joseph S. DiMartino
President
November 10, 1993
New York, N.Y.
Asterisk Total return represents the change during the period in a
hypothetical account with dividends reinvested.
2 Asterisks SOURCE: The Standard & Poor's Corporation. Reflects the
reinvestment of income dividends and, where applicable, capital gain
distributions.
Plus "S&P(R)" and "Standard & Poor's MidCap 400 Index" are trademarks of
Standard & Poor's Corporation and have been licensed for use by the
Fund. The Fund is not sponsored, endorsed, sold or promoted by S&P.
PEOPLES S&P MIDCAP INDEX FUND, INC. OCTOBER 31, 1993
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PEOPLES S&P
MIDCAP INDEX FUND, INC. AND THE STANDARD AND POOR'S 500 COMPOSITE STOCK
PRICE INDEX*
(See Exhibit A)
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in Peoples S&P
MidCap Index Fund on 6/19/91 (Inception Date) to a $10,000 investment
made in the Standard and Poor's 500 Composite Stock Price Index on that
date. For comparative purposes the value of the index on 6/30/91 is used
as the beginning value on 6/19/91. All dividends and capital gain
distributions are reinvested.
The Fund's performance takes into account applicable fees and expenses.
The Standard and Poor's 500 Composite Stock Price Index is a widely-
accepted, unmanaged index of overall stock market performance which does
not take into account charges, fees or other expenses. Further
information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Condensed Financial
Information section of the Prospectus and elsewhere in this report.
Asterisk Source: Lipper Analytical Services, Inc.
PEOPLES S&P MIDCAP INDEX FUND, INC. OCTOBER 31, 1993
BROAD SECTOR ALLOCATION*
(See Exhibit B)
Portfolio composition is subject to change at any time.
ASSET ALLOCATION*
Common Stocks............................................ 99.9%
Cash Equivalents......................................... 0.1
-----
100.0%
TEN LARGEST HOLDINGS*
American Barrick Resources............................... 1.5%
General Motors Cl. E..................................... 1.5
cisco Systems............................................ 1.3
Burlington Resources..................................... 1.2
Morgan Stanley Group..................................... 1.2
Medco Containment Services............................... 1.2
United Healthcare........................................ 1.1
U.S. HealthCare.......................................... 1.0
Bank of New York......................................... 1.0
NEXTEL Communications, Cl. A............................. 0.9
Asterisk As a percentage of Total Net Assets.
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1993
SHARES COMMON STOCKS--99.9% VALUE
- ------ -----------
BASIC MATERIALS--7.8%
3,961 Albany International, Cl. A................... $ 71,298
37,372 American Barrick Resources.................... 1,013,715
3,804 Betz Laboratories............................. 165,474
4,810 Bowater....................................... 94,396
2,129 Brush Wellman................................. 29,274
2,450 Cabot......................................... 140,569
2,016 Carlisle Cos.................................. 67,284
3,091 Chesapeake.................................... 68,002
1,568 Cleveland-Cliffs.............................. 56,448
5,821 Consolidated Papers........................... 247,392
6,776 Crompton & Knowles............................ 132,132
3,243 Dexter........................................ 76,616
3,853 Ferro......................................... 122,333
2,908 First Brands.................................. 93,056
18,636 Freeport-McMoRan.............................. 314,483
5,279 (a) Georgia Gulf.................................. 99,641
2,124 Gibson Greetings.............................. 43,011
5,800 Glatfelter (P.H.)............................. 95,700
3,079 Hanna (M.A.).................................. 98,528
3,373 Harsco........................................ 141,666
19,425 LAC Minerals Ltd.............................. 143,259
5,846 Lawter International.......................... 79,652
4,818 Loctite....................................... 181,277
8,988 Lubrizol...................................... 312,333
1,928 Lukens........................................ 71,818
2,370 Pentair....................................... 74,655
3,920 Schulman (A.)................................. 119,560
2,556 (a) Sealed Air.................................... 76,361
6,606 Sigma-Aldrich................................. 326,997
11,524 Sonoco Products............................... 233,361
7,283 Sterling Chemicals............................ 26,401
2,654 Wausau Paper Mills............................ 105,828
6,416 Witco......................................... 191,678
-----------
5,114,198
-----------
CAPITAL GOODS/CONSTRUCTION--4.5%
6,200 AES........................................... 203,050
8,636 Allegheny Ludlum.............................. 178,118
4,911 CBI Industries................................ 127,686
3,033 CalMat........................................ 54,594
5,389 Calgon Carbon................................. 54,564
2,119 (a) Datascope..................................... 34,963
1,677 Duriron....................................... 37,732
2,125 (a) Enterra....................................... 49,937
3,817 Federal-Mogul................................. 100,673
4,151 GenCorp....................................... 65,378
2,794 Goulds Pumps.................................. 74,041
1,500 Granite Construction.......................... 28,875
2,344 Kaydon........................................ 49,517
1,450 Kennametal.................................... 58,181
4,579 Keystone International........................ 123,061
36,500 Laidlaw, Cl. B. (non-voting)................. 219,000
3,126 (a) MagneTek...................................... 47,281
5,320 Mark IV Industries............................ 118,370
2,355 Measurex...................................... 44,451
2,468 Nordson....................................... 132,038
2,688 OEA........................................... 77,952
6,984 (a) Parametric Technology......................... 277,614
6,209 RPM........................................... 110,986
2,349 (a) Rohr Industries............................... 18,498
2,241 (a) Southdown .................................... 54,624
4,326 Stewart & Stevenson Services.................. 195,752
4,713 Sundstrand.................................... 179,683
2,671 Thiokol....................................... 70,448
4,900 York International............................ 170,275
-----------
2,957,342
-----------
CONSUMER CYCLICALS--12.1%
1,232 Angelica...................................... 30,646
2,868 Arvin Industries.............................. 80,662
2,566 Belo (A.H.), Cl. A............................ 115,470
3,800 (a) Buffets....................................... 89,300
6,650 CML Group..................................... 197,006
1,915 CPI........................................... 33,512
3,237 (a) Caesars World................................. 144,046
2,963 Cardinal Distribution......................... 127,409
3,485 (a) Chris-Craft Industries........................ 148,112
11,473 (a) Circus Circus Enterprises..................... 411,594
2,690 Claire's Stores............................... 47,747
17,136 Coca Cola Enterprises......................... 242,046
7,825 Cracker Barrel Old Country Store.............. 207,362
2,200 Cross (A.T.), Cl. A........................... 30,800
7,843 Dole Food..................................... 217,643
5,468 Dollar General................................ 140,801
3,612 Duty Free International....................... 57,792
2,905 Edison Brothers Stores........................ 94,412
7,390 Family Dollar Stores.......................... 120,087
4,485 Federal Signal................................ 119,974
3,500 Fingerhut Cos................................. 101,500
10,200 (a) Fruit of the Loom, Cl. A...................... 359,550
2,819 Hancock Fabrics............................... 27,838
5,006 Harley-Davidson............................... 210,878
12,140 Home Shopping Network......................... 156,302
1,903 Houghton Mifflin.............................. 90,155
4,684 Intelligent Electronics....................... 102,462
3,283 (a) International Dairy Queen, Cl. A.............. 50,887
2,577 International Multifoods...................... 60,237
3,000 Lancaster Colony.............................. 138,750
2,374 Lands' End.................................... 100,895
5,098 Leggett & Platt............................... 223,675
3,945 (a) MacFrugal's Bargains Close Outs............... 63,120
10,636 McCormick & Co................................ 251,276
3,400 Media General, Cl. A.......................... 102,000
7,057 Merry-Go-Round Enterprises.................... 64,395
2,571 Michael Foods................................. 23,460
3,265 Miller (Herman)............................... 99,583
4,010 (a) Mirage Resorts................................ 226,064
3,299 Morrison Restaurants.......................... 118,352
4,892 (a) Multimedia.................................... 191,400
4,020 (a) Network Systems............................... 34,673
11,879 (a) Office Depot.................................. 393,492
3,300 Phillips-Van Heusen........................... 108,075
1,800 Sbarro........................................ 77,400
13,044 (a) Service Merchandise........................... 130,440
9,366 Shaw Industries............................... 423,812
2,019 Tiffany & Co.................................. 65,870
19,544 Tyson Foods, Cl. A............................ 451,955
8,837 Unifi......................................... 222,030
6,042 United States Shoe............................ 65,707
4,307 (a) Waban......................................... 54,376
2,907 Wallace Computer Services..................... 81,759
1,569 Washington Post, Cl. B........................ 391,466
2,797 (a) Western Publishing Group...................... 41,605
-----------
7,961,860
-----------
CONSUMER STAPLES--10.0%
3,795 (a) Acuson........................................ 51,707
1,434 (a) Advanced Technology Labs...................... 24,736
3,712 (a) Applied Bioscience International.............. 21,808
4,725 Bergen Brunswig, Cl. A........................ 73,828
4,226 (a) Biogen........................................ 164,814
5,644 Bob Evans Farms............................... 107,236
6,051 Carter-Wallace................................ 167,159
5,497 (a) Centocor...................................... 71,461
2,688 Church & Dwight............................... 69,552
4,670 (a) Continental Medical Systems................... 44,949
1,895 (a) Cordis........................................ 75,326
5,077 Dean Foods.................................... 130,098
3,100 (a) Diagnostek.................................... 55,800
1,771 Diagnostic Products........................... 32,763
1,800 Dibrell Brothers.............................. 54,000
1,914 Dreyer's Grand Ice Cream...................... 57,420
4,354 (a) FHP International............................. 84,903
4,978 Flowers Industries............................ 94,582
5,700 (a) Forest Laboratories........................... 240,825
3,179 (a) Genzyme....................................... 99,344
3,713 (a) HEALTHSOUTH Rehabilitation.................... 65,906
5,400 Hannaford Brothers............................ 126,225
6,300 IBP........................................... 160,650
9,500 IVAX.......................................... 276,687
20,280 Medco Containment Services.................... 760,500
4,787 (a) Medical Care America.......................... 119,077
10,432 Mylan Laboratories............................ 309,048
1,117 NCH........................................... 64,786
3,474 Neutrogena.................................... 66,874
6,448 (a) NovaCare...................................... 83,824
3,561 (a) PacifiCare Health Systems, Cl. A.............. 113,062
1,564 Puritan-Bennett............................... 25,806
3,000 Ruddick....................................... 64,875
3,481 Savannah Foods & Industries................... 53,085
2,008 (a) Sci-Med Life Systems.......................... 97,388
3,920 Smucker (J.M.), Cl. A......................... 98,490
2,578 Stanhome...................................... 71,539
6,375 Stryker....................................... 173,719
4,969 Surgical Care Affiliates...................... 98,759
3,282 (a) Synergen...................................... 47,179
5,328 T2 Medical.................................... 41,292
5,191 Tambrands..................................... 219,969
14,203 U.S. HealthCare............................... 658,664
9,958 United Healthcare............................. 695,815
4,666 Universal..................................... 117,817
3,464 Universal Foods............................... 119,075
5,715 (a) Vons Cos...................................... 105,013
2,789 (a) XOMA.......................................... 18,826
-----------
6,576,261
-----------
DIVERSIFIED--10.3%
3,300 (a) Air & Water Technologies, Cl. A............... 45,787
2,676 (a) Altera........................................ 73,924
3,920 (a) American Waste Services, Cl. A................ 7,840
8,826 Aon........................................... 458,952
10,515 Battle Mountain Gold.......................... 99,892
6,014 (a) Brinker International......................... 251,084
17,110 Burlington Resources.......................... 793,476
1,022 Carpenter Technology.......................... 55,954
3,114 (a) Cirrus Logic.................................. 108,990
5,931 (a) Clayton Homes................................. 157,171
3,701 Danaher....................................... 129,535
1,852 Donaldson..................................... 78,015
2,784 (a) Exabyte....................................... 44,196
4,000 Fisher-Price.................................. 146,500
1,842 Fuller (H.B.)................................. 59,404
2,573 GATX.......................................... 98,096
21,100 (a) Global Marine................................. 105,500
6,370 Heilig-Meyers................................. 205,433
3,261 IMC Fertilizer Group.......................... 118,619
16,076 International Game Technology................. 568,689
3,121 (a) Jacobs Engineering Group...................... 73,734
5,496 Kansas City Southern Industries............... 248,007
4,145 Lance......................................... 87,563
1,793 Lawson Products............................... 48,411
6,836 Longview Fibre................................ 121,339
3,930 MAPCO......................................... 233,835
1,100 (a) MAXXAM........................................ 35,750
3,026 (a) Magma Power................................... 108,936
3,175 Mid-American Waste Systems.................... 25,797
3,920 Modine Manufacturing.......................... 100,940
5,882 Murphy Oil.................................... 264,690
3,297 (a) National Pizza, Cl. A......................... 23,079
2,340 (a) Octel Communications.......................... 58,500
2,470 Olin.......................................... 114,546
3,999 Omnicom Group................................. 181,955
2,568 Oregon Steel Mills............................ 60,669
4,720 (a) Seagull Energy................................ 132,160
1,236 Sequa, Cl. A.................................. 41,561
3,822 Sizzler International......................... 38,698
2,200 Teleflex...................................... 63,525
6,297 (a) Thermo Electron............................... 256,603
6,173 Topps......................................... 49,384
3,025 Transatlantic Holdings........................ 159,947
5,251 Trinity Industries............................. 207,415
3,103 (a) VeriFone....................................... 53,527
4,261 Wellman........................................ 72,970
7,224 Willamette Industries.......................... 301,602
-----------
6,772,200
-----------
ENERGY--3.5%
7,681 Anadarko Petroleum............................. 361,007
7,936 Apache......................................... 211,296
2,085 (a) BJ Services.................................... 47,173
12,156 Baroid......................................... 100,287
3,748 Diamond Shamrock............................... 100,259
4,900 El Paso Natural Gas............................ 180,688
10,538 Lyondell Petrochemical......................... 209,443
3,840 MCN............................................ 137,280
8,200 (a) Nabors Industries.............................. 71,750
6,527 Noble Affiliates............................... 181,940
7,237 (a) Parker Drilling................................ 49,754
3,586 Quaker State................................... 49,756
5,248 Questar........................................ 198,112
12,982 Ranger Oil Ltd................................. 71,401
4,810 (a) Smith International............................ 53,511
3,823 Tosco.......................................... 107,044
5,676 Valero Energy.................................. 142,610
4,365 (a) Varco International............................ 34,374
-----------
2,307,685
-----------
FINANCIAL--15.4%
13,523 AFLAC.......................................... 425,974
3,690 Bancorp Hawaii................................. 163,282
12,287 Bank of New York............................... 654,283
15,601 Bear Stearns Cos............................... 343,222
5,059 Central Fidelity Banks......................... 141,652
5,957 (a) City National.................................. 45,422
5,306 Comdisco........................................ 107,446
15,610 Comerica....................................... 411,714
7,007 Continental Bank............................... 178,678
4,745 Crestar Financial.............................. 189,207
3,954 Dauphin Deposit................................ 96,873
4,900 Dreyfus........................................ 196,612
5,907 Edwards (A.G.)................................. 182,379
7,890 Fifth Third Bancorp............................ 414,225
4,914 First Alabama Bancshares....................... 164,619
15,104 First Bank System.............................. 479,552
5,006 First Security ................................ 137,665
3,686 First Tennessee National....................... 140,068
4,206 First Virginia Banks........................... 148,261
7,510 First of America Bank.......................... 289,135
10,808 Franklin Resources............................. 517,433
2,696 Hartford Steam Boiler Inspection &
Insurance Co................................. 129,745
5,676 Kemper......................................... 215,688
13,238 KeyCorp........................................ 456,711
3,261 Liberty National Bancorp....................... 91,308
8,491 Marshall & Ilsley.............................. 193,170
3,054 Mercantile Bancorporation...................... 150,410
6,034 Mercantile Bankshares.......................... 119,926
7,477 Meridian Bancorp............................... 228,049
9,836 Morgan Stanley Group........................... 773,356
6,924 Northern Trust................................. 282,153
2,977 (a) Policy Management Systems...................... 83,356
9,387 Progressive.................................... 429,455
5,764 Provident Life & Accident
Insurance Co. of America, Cl. B.............. 177,243
7,583 Schwab (Charles)............................... 261,614
7,218 Sotheby's Holdings, Cl. A...................... 92,030
10,095 SouthTrust..................................... 190,543
9,942 State Street Boston............................ 382,767
6,742 UJB Financial.................................. 173,607
4,264 West One Bancorp............................... 117,793
4,900 Wilmington Trust............................... 145,775
-----------
10,122,401
-----------
TECHNOLOGY--11.9%
5,822 AMETEK......................................... 80,052
4,127 (a) AST Research................................... 85,119
5,906 Adobe Systems.................................. 128,455
1,703 (a) Aldus.......................................... 37,892
11,600 (a) American Power Conversion...................... 258,100
6,365 (a) Analog Devices................................. 141,621
1,565 (a) Anthem Electronics............................. 50,276
10,544 (a) Applied Materials.............................. 332,136
3,900 (a) Arrow Electronics.............................. 144,787
5,304 Avnet.......................................... 208,182
3,455 (a) BMC Software................................... 166,272
3,812 Beckman Instruments............................ 104,830
3,511 (a) Borland International.......................... 60,565
3,700 (a) Cabletron Systems.............................. 341,325
5,825 (a) Cadence Design System.......................... 67,716
16,168 (a) cisco Systems.................................. 828,610
6,408 (a) Conner Peripherals............................. 77,697
3,304 (a) Convex Computer................................ 18,172
4,709 (a) Cypress Semiconductor.......................... 55,919
4,787 (a) Dell Computer................................. 96,937
7,739 First Financial Management..................... 423,710
5,100 (a) Fiserv......................................... 109,650
4,261 HON Industries................................. 118,243
3,296 (a) Information Resources.......................... 122,776
1,759 (a) KnowledgeWare.................................. 28,584
5,998 (a) LSI Logic...................................... 86,971
4,670 Linear Technology.............................. 152,942
6,009 Mentor Graphics................................ 70,606
5,227 Micron Technology.............................. 248,282
8,261 Molex.......................................... 295,331
10,900 (a) NEXTEL Communications, Cl. A................... 592,687
1,004 National Presto Industries..................... 55,220
2,215 (a) Nellcor........................................ 50,391
1,749 Precision Castparts............................ 46,786
5,753 (a) Quantum........................................ 73,351
2,788 Reynolds & Reynolds, Cl. A..................... 108,732
8,904 (a) Seagate Technology............................. 198,114
5,081 Sensormatic Electronics........................ 236,267
3,882 (a) Sequent Computer Systems....................... 65,994
8,567 (a) Silicon Graphics............................... 372,665
3,807 Standard Register.............................. 75,188
5,421 (a) Storage Technology............................. 140,268
2,994 (a) Stratus Computer............................... 87,575
3,766 (a) Structural Dynamics Research................... 61,668
3,576 (a) Symantec....................................... 72,414
3,116 (a) Symbol Technologies............................ 52,583
8,092 (a) SynOptics Communications....................... 224,553
4,522 (a) Teradyne....................................... 109,093
2,369 Varian Associates.............................. 117,858
2,922 (a) Xilinx......................................... 116,150
-----------
7,799,315
-----------
TRANSPORT & SERVICES--7.8%
2,669 Airborne Freight............................... 80,404
1,787 Alaska Air Group............................... 28,592
6,057 Alexander & Baldwin............................ 143,854
1,706 American President Cos., Ltd................... 94,683
1,700 Arnold Industries.............................. 68,000
4,480 Atlantic Southeast Airlines.................... 152,320
2,624 Banta.......................................... 89,872
14,366 (a) CUC International.............................. 553,091
4,052 (a) Chiron......................................... 326,186
6,110 Cintas......................................... 178,717
2,682 Diebold........................................ 160,249
2,261 Ennis Business Forms........................... 28,828
9,855 Equifax........................................ 251,302
4,488 FlightSafety International..................... 152,592
31,860 General Motors Cl. E........................... 979,695
4,630 (a) HealthCare COMPARE............................. 101,860
5,641 Illinois Central, Cl. A........................ 188,268
4,362 (a) International Technology....................... 16,358
4,985 Kelly Services, Cl. A.......................... 127,118
4,499 (a) LEGENT......................................... 109,101
4,270 Overseas Shipholding Group..................... 87,535
2,240 PHH............................................ 102,200
3,875 Paychex........................................ 135,625
4,705 Rollins........................................ 112,920
18,300 Southwest Airlines............................. 567,300
6,905 Tidewater...................................... 157,089
1,991 Watts Industries, Cl. A........................ 91,586
-----------
5,085,345
-----------
UTILITIES--16.6%
3,578 (a) ADC Telecommunications......................... 130,597
7,561 Allegheny Power System......................... 416,800
3,231 Atlanta Gas Light.............................. 118,739
6,854 Atlantic Energy................................ 153,358
1,795 Black Hills.................................... 43,753
5,794 Brooklyn Union Gas............................. 156,438
11,045 CMS Energy..................................... 291,312
2,920 Central Louisiana Electric..................... 77,015
4,215 Central Maine Power............................ 75,343
6,758 Century Telephone Enterprises.................. 185,845
11,433 Cincinnati Gas & Electric...................... 327,270
5,136 Comsat......................................... 180,402
7,634 Delmarva Power & Light......................... 183,216
11,616 Florida Progress............................... 413,820
3,529 Hawaiian Electric Industries................... 133,661
4,934 IPALCO Enterprises............................. 181,941
4,783 Idaho Power.................................... 153,056
9,976 Illinois Power................................. 229,448
2,994 Indiana Energy................................. 68,488
3,865 Iowa-Illinois Gas & Electric................... 98,074
8,180 Kansas City Power & Light...................... 196,320
7,439 (a) LDDS Communications............................ 373,810
4,307 LG&E Energy.................................... 179,817
2,134 Lincoln Telecommunications..................... 85,893
3,937 Minnesota Power & Light........................ 128,937
6,815 Montana Power.................................. 183,153
8,648 NIPSCO Industries.............................. 294,032
4,737 National Fuel Gas.............................. 168,163
5,211 Nevada Power................................... 130,926
8,516 New England Electric System.................... 355,543
9,188 New York State Electric & Gas.................. 302,055
17,660 Northeast Utilities............................ 463,575
5,273 Oklahoma Gas & Electric........................ 187,851
5,959 Penn Central................................... 201,861
11,436 Pinnacle West Capital.......................... 263,028
6,257 Portland General Electric...................... 135,308
15,083 Potomac Electric Power......................... 422,324
7,881 Public Service Co. of Colorado................. 237,415
5,494 (a) Public Service Co. of New Mexico............... 61,121
8,190 Puget Sound Power & Light...................... 205,774
4,411 Rochester Telephone............................ 211,177
5,882 SCANA.......................................... 302,923
8,383 Southern New England
Telecommunications........................... 304,932
5,382 Southwestern Public Service.................... 171,551
3,248 TCA Cable TV................................... 94,598
15,118 TECO Energy.................................... 374,171
6,200 Telephone & Data Systems....................... 338,675
5,400 UtiliCorp United............................... 178,200
3,338 (a) Vanguard Cellular Systems, Cl. A............... 107,651
3,879 WPL Holdings................................... 135,765
2,680 Washington Gas Light........................... 114,905
13,687 Wisconsin Energy............................... 398,634
-----------
10,928,664
-----------
TOTAL INVESTMENTS
(cost $57,442,842)............................. 99.9% $65,625,271
===== ===========
CASH AND RECEIVABLES (NET)....................... .1% $ 64,374
===== ===========
NET ASSETS....................................... 100.0% $65,689,645
===== ===========
NOTE TO STATEMENT OF INVESTMENTS;
(A) Non-income producing.
See notes to financial statements.
<TABLE>
<CAPTION>
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1993
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $57,442,842)-see statement..................................................... $65,625,271
Cash................................................................................... 1,549,344
Dividends receivable................................................................... 77,790
Receivable for investment securities sold.............................................. 71,478
Prepaid expenses....................................................................... 46,634
Due from The Dreyfus Corporation....................................................... 6,714
-----------
67,377,231
LIABILITIES:
Payable for Common Stock redeemed...................................................... $1,572,658
Accrued expenses and other liabilities................................................. 114,928 1,687,586
---------- -----------
NET ASSETS............................................................................... $65,689,645
===========
REPRESENTED BY:
Paid-in capital........................................................................ $54,463,448
Accumulated undistributed investment income-net........................................ 893,725
Accumulated undistributed net realized gain on investments............................. 2,150,043
Accumulated net unrealized appreciation on investments-Note 3(b)....................... 8,182,429
-----------
NET ASSETS at value applicable to 3,726,135 shares outstanding
(200 million shares of $.001 par value Common Stock authorized)........................ $65,689,645
===========
NET ASSET VALUE, offering and redemption price per share
($65,689,645 / 3,726,135 shares)....................................................... $17.63
======
</TABLE>
See notes to financial statements.
<TABLE>
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1993
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $1,341 foreign taxes withheld at source)...................... $1,085,571
Interest............................................................................. 43,515
TOTAL INCOME..................................................................... ---------- $ 1,129,086
EXPENSES:
Index management fee--Note 2(a)...................................................... 54,913
Administration fee--Note 2(a)........................................................ 164,739
Shareholder servicing costs--Note 2(b)............................................... 70,673
Auditing fees........................................................................ 53,575
Registration fees.................................................................... 26,487
Custodian fees--Note 2(a)............................................................ 20,665
License fees......................................................................... 19,594
Directors' fees and expenses--Note 2(c).............................................. 16,882
Prospectus and shareholders' reports................................................. 15,664
Organization expenses................................................................ 13,463
Legal fees........................................................................... 9,631
Miscellaneous........................................................................ 1,351
----------
467,637
Less-expense reimbursement from WCM and Dreyfus
due to undertakings and redemption fee-Note 2(a)................................... 420,115
----------
TOTAL EXPENSES................................................................... 47,522
-----------
INVESTMENT INCOME-NET............................................................ 1,081,564
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3(a)............................................. $2,163,447
Net realized gain on financial futures-Note 3(a)....................................... 189,990
----------
NET REALIZED GAIN.................................................................... 2,353,437
Net unrealized appreciation on investments [including ($1,800)
net unrealized (depreciation) on financial futures].................................. 6,695,691
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.................................... 9,049,128
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $10,130,692
===========
</TABLE>
See notes to financial statements.
<TABLE>
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
---------------------------
1992 1993
----------- -----------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 673,341 $ 1,081,564
Net realized gain on investments....................................... 581,313 2,353,437
Net unrealized appreciation on investments for the year................ 1,108,819 6,695,691
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 2,363,473 10,130,692
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................. (90,356) (815,333)
Net realized gain on investments....................................... (52,519) (784,566)
----------- -----------
TOTAL DIVIDENDS...................................................... (142,875) (1,599,899)
----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 76,484,255 57,396,624
Dividends reinvested................................................... 140,743 1,544,124
Cost of shares redeemed................................................ (38,293,502) (47,770,399)
----------- -----------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............... 38,331,496 11,170,349
----------- -----------
TOTAL INCREASE IN NET ASSETS....................................... 40,552,094 19,701,142
NET ASSETS:
Beginning of year...................................................... 5,436,409 45,988,503
----------- -----------
End of year (including undistributed investment income-net:
$627,494 in 1992 and $893,725 in 1993)............................... $45,988,503 $65,689,645
=========== ===========
SHARES SHARES
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 5,288,611 3,469,387
Shares issued for dividends reinvested................................. 9,870 97,298
Shares redeemed........................................................ (2,633,627) (2,902,418)
---------- ----------
NET INCREASE IN SHARES OUTSTANDING................................... 2,664,854 664,267
========== ==========
</TABLE>
See notes to financial statements.
<TABLE>
PEOPLES S&P MIDCAP INDEX FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This
information has been derived from information provided in the Fund's
financial statements.
YEAR ENDED OCTOBER 31,
----------------------------------
1991(1) 1992 1993
------- ------ ------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year............................... $12.50 $13.69 $15.02
------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net........................................... .11 .17 .30
Net realized and unrealized gain on investments.................. 1.08 1.29 2.83
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS............................... 1.19 1.46 3.13
------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net............................ -- (.08) (.27)
Dividends from net realized gain on investments.................. -- (.05) (.25)
------ ------ ------
TOTAL DISTRIBUTIONS............................................ -- (.13) (.52)
------ ------ ------
Net asset value, end of year..................................... $13.69 $15.02 $17.63
====== ====== ======
TOTAL INVESTMENT RETURN............................................ 9.52%(2) 10.69% 21.22%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.......................... -- -- .09%
Ratio of net investment income to average net assets............. .87%(2) 2.22% 1.97%
Decrease reflected in above expense ratios due to
undertakings by WCM and Dreyfus................................ 1.19%(2) 1.17% .77%
Portfolio Turnover Rate.......................................... 2.18%(2) 16.31% 16.80%
Net Assets, end of year (000's Omitted).......................... $5,436 $45,989 $65,690
(1) From June 19, 1991 (commencement of operations) to
October 31, 1991.
(2) Not annualized.
</TABLE>
See notes to financial statements
PEOPLES S&P MIDCAP INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Woodbridge Capital Management, Inc. ("WCM"), an indirect wholly owned
subsidiary of Comerica Bank ("CB"), serves as the Fund's index manager.
CB serves as the Fund's custodian. The Dreyfus Corporation ("Dreyfus")
serves as the Fund's administrator. Dreyfus Service Corporation
("Distributor"), a wholly-owned subsidiary of Dreyfus, acts as the
exclusive distributor of the Fund's shares, which are sold without a
sales charge.
(A) PORTFOLIO VALUATION: Investments in securities (including options
and financial futures) are valued at the last sales price on the
securities exchange on which such securities are primarily traded or at
the last sales price on the national securities market. Securities not
listed on an exchange or the national securities market, or securities
for which there were no transactions, are valued at the average of the
most recent bid and asked prices. Bid price is used when no asked price
is available. Short-term investments are carried at amortized cost,
which approximates value. Investments traded in foreign currencies are
translated to U.S. dollars at the prevailing rates of exchange.
(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. 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 provisions
available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of
taxable income sufficient to relieve it from all, or substantially all,
Federal income taxes.
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 WCM and an Administration Agreement with
Dreyfus are payable monthly. WCM and Dreyfus receive annual fees of .10
of 1% and .30 of 1%, respectively, of the average daily value of the
Fund's net assets. The agreements further provide that if the aggregate
expenses of the Fund, exclusive of interest, taxes, brokerage and
extraordinary expenses, exceed the expense limitation of any state
having jurisdiction over the Fund, the Fund may deduct from the fees to
be paid to each of WCM and Dreyfus, or WCM 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 2-1/2% of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value
of the Fund's net assets in accordance with California "blue sky"
regulations. However, WCM and Dreyfus had undertaken from November 1,
1992 through June 30, 1993, to waive the index management fee and
administration fee and Dreyfus had assumed all other expenses of the
Fund not paid by the 1% redemption fee. WCM and Dreyfus have currently
undertaken from July 1, 1993 through December 31, 1993, or until such
time as the net assets of the Fund exceed $100 million, regardless of
whether they remain at that level, to waive the index management fee and
administration fee. In addition, Dreyfus has undertaken, to assume all
other expenses in excess of an annual rate of .25 of 1% of the average
daily value of the Fund's net assets.
For the year ended October 31, 1993, pursuant to the undertakings, WCM
waived its index management fee of $54,913 and Dreyfus waived its
administration fee of $164,739 and reimbursed excess expenses of
$199,938. In addition, CB earned $20,665 for custodian services provided
to the Fund. For the year ended October 31, 1993, the Fund received $525
in redemption fees.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor 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 year ended October 31, 1993, the Fund was charged
an aggregate of $37,203 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated
persons," as defined in the Act, of Dreyfus. Each director who is not an
"affiliated person" receives an annual fee of $2,500 and an attendance
fee of $500 per meeting.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment
securities, other than short-term securities, for the year ended October
31, 1993 amounted to $21,483,652 and $9,013,966, respectively.
The Fund engages in trading financial futures contracts. 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 made or
received to reflect daily unrealized gains or losses. When the contracts
are closed, the Fund recognizes a realized gain or loss. These
investments require initial margin deposits with a custodian, which
consist of cash or cash equivalents, up to approximately 10% of the
contract amount. The amount of these deposits is determined by the
exchange or Board of Trade on which the contract is traded and is
subject to change. At October 31, 1993, there were no financial futures
contracts outstanding.
(B) At October 31, 1993, accumulated net unrealized appreciation on
investments was $8,182,429, consisting of $11,601,649 gross unrealized
appreciation and $3,419,220 gross unrealized depreciation.
At October 31, 1993, 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).
PEOPLES S&P MIDCAP INDEX FUND, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
PEOPLES S&P MIDCAP INDEX FUND, INC.
We have audited the accompanying statement of assets and liabilities
of Peoples S&P MidCap Index Fund, Inc., including the statement of
investments, as of October 31, 1993, and the related statement of
operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and financial
highlights for each of the years indicated therein. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of October 31, 1993 by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Peoples S&P MidCap Index Fund, Inc. at October 31,
1993, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
Ernst & Young
New York, New York
December 7, 1993
Peoples S&P MidCap Index Fund, Inc.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
INDEX FUND MANAGER
Woodbridge Capital Management, Inc.
100 Renaissance Center
Detroit, MI 48243
CUSTODIAN
Comerica Bank
100 Renaissance Center
Detroit, MI 48243
ADMINISTRATOR
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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.
113AR9310
Peoples S&P
MidCap Index
Fund, Inc.
Annual Report
October 31, 1993
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
PEOPLES S&P MIDCAP INDEX FUND, INC. AND
THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX*
EXHIBIT A:
_______________________________________________
| | | STANDARD |
| | PEOPLES | & POOR'S 500 |
| PERIOD | S&P MIDCAP |COMPOSITE STOCK |
| | INDEX FUND | PRICE INDEX * |
|-----------|-----------------|----------------|
| 6/19/91 | 10,000 | 10,000 |
| 6/30/91 | 9,640 | 10,000 |
| 7/31/91 | 10,224 | 10,466 |
| 8/31/91 | 10,600 | 10,713 |
| 9/30/91 | 10,560 | 10,534 |
| 10/31/91 | 10,952 | 10,675 |
| 11/30/91 | 10,584 | 10,246 |
| 12/31/91 | 11,816 | 11,416 |
| 1/31/92 | 12,026 | 11,204 |
| 2/29/92 | 12,219 | 11,350 |
| 3/31/92 | 11,767 | 11,129 |
| 4/30/92 | 11,630 | 11,455 |
| 5/31/92 | 11,743 | 11,512 |
| 6/30/92 | 11,404 | 11,340 |
| 7/31/92 | 11,969 | 11,803 |
| 8/31/92 | 11,679 | 11,562 |
| 9/30/92 | 11,840 | 11,698 |
| 10/31/92 | 12,123 | 11,738 |
| 11/30/92 | 12,801 | 12,137 |
| 12/31/92 | 13,228 | 12,287 |
| 1/31/93 | 13,387 | 12,390 |
| 2/28/93 | 13,195 | 12,558 |
| 3/31/93 | 13,645 | 12,823 |
| 4/30/93 | 13,287 | 12,513 |
| 5/31/93 | 13,895 | 12,847 |
| 6/30/93 | 13,962 | 12,884 |
| 7/31/93 | 13,937 | 12,833 |
| 8/31/93 | 14,504 | 13,319 |
| 9/30/93 | 14,654 | 13,216 |
| 10/31/93 | 14,695 | 13,487 |
|----------------------------------------------|
|--------------------------------------------------------|
| PEOPLES S&P MIDCAP INDEX FUND |
|--------------------------------------------------------|
| AVERAGE ANNUAL TOTAL RETURNS ENDED ON 10/31/93 |
|-----------|--------------------------------------------|
| | SINCE INCEPTION |
| 1 YEAR | (6/19/91) |
|-----------|--------------------------------------------|
| 21.22%| 17.64% |
|--------------------------------------------------------|
Peoples S&P MidCap Index Fund, Inc. October 31, 1993
Broad Sector Allocation *
|--------------------------------------------------------|
|Utilities 16.6 % |
|Financial 15.4 % |
|Consumer Cyclical 12.1 % |
|Technology 11.9 % |
|Diversified 10.3 % |
|Consumer Staples 10.0 % |
|Basic Materials 7.8 % |
|Transport & Services 7.8 % |
|Capital Goods / Construction 4.5 % |
|Energy 3.5 % |
|Cash Equivalents 0.1 % |
| |
|--------------------------------------------------------|
