LETTER TO SHAREHOLDERS
Dear Shareholder:
The Peoples S&P MidCap Index Fund completed its latest semi-annual fiscal
period on April 30, 1994. This came at a time of weakening securities prices
and considerable volatility in the stock and bond markets.
As you know, the investment objective of the Fund is to mirror, as
closely as possible, the performance of the Standard & Poor's MidCap 400
Index.* During this 6-month period, the Index produced a negative total
return of -.83%.** Reflecting this, the Fund's total return for the same
period was negative, -1.03%. The difference is accounted for by various
factors including commission expenses, transaction costs and some other Fund
expenses.
In the first half of the reporting period, stock valuations were
increasing. They began to drop in the last three months, largely as the
result of actions by the Federal Reserve Board to increase interest rates.
The economic fundamentals for the U.S. have been improving. Corporate
profits in general have been strong. Industrial production is rising. Gross
Domestic Product has expanded and exports have improved. Even the
unemployment situation, which has been a major concern, shows signs of an
upturn.
Furthermore, prices and wages do not appear to be under much inflationary
pressure.
Nonetheless, the Federal Reserve decided in February that steps were
needed to head off any possibility of future inflation. Accordingly, the Fed
has raised its key short-term rate three times since early February, and most
observers believe there will be further such preemptive measures.
The Federal Reserve Board's actions touched off a general upward move of
long-term as well as short-term interest rates. This in turn caused investors
to lower their near-term expectations for stock prices.
The drop in the stock market does not, in our opinion, alter the fact
that business activity in the U.S. has been expanding, while major trading
nations abroad also appear close to economic recovery. Therefore we believe
that it is only logical to expect that at some point stock prices will
stabilize and will then begin once again to reflect the underlying strength
of the U.S. economy.
Thus, in our view, equities as represented by the Peoples S&P MidCap
Index Fund can continue to play an important role in enabling investors to
participate in long-range economic growth.
Sincerely,
(Signature Logo)
Steven Albrecht
Index Fund Manager
World Asset Management, Inc.
May 12, 1994
New York, N.Y.
* "S&PRegistration Mark" 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, sold, endorsed or promoted by S&P.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions.
Total return represents the change during the period in a hypothetical
account with dividends reinvested.
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
SHARES COMMON STOCKS--100.0% VALUE
------------ ------------
BASIC MATERIALS-6.8%
4,861 Albany International, Cl. A .. $ 92,967
4,604 Betz Laboratories...... 222,143
5,810 Bowater................ 122,010
2,629 Brush Wellman.......... 42,721
2,950 Cabot.................. 157,087
2,416 Carlisle Cos........... 78,218
3,891 Chesapeake............. 96,302
1,968 Cleveland-Cliffs....... 73,062
7,021 Consolidated Papers.... 272,064
8,276 Crompton & Knowles..... 162,416
3,943 Dexter................. 94,632
4,653 Ferro.................. 127,376
3,508 First Brands........... 118,395
22,636 Freeport-McMoRan....... 432,913
6,479 Georgia Gulf........(a) 187,081
2,624 Gibson Greetings....... 51,824
7,100 Glatfelter (P.H.)...... 108,275
3,779 Hanna (M.A.)........... 140,295
3,973 Harsco................. 165,376
23,625 LAC Minerals Ltd....... 197,859
7,146 Lawter International... 80,392
5,718 Loctite................ 238,726
10,788 Lubrizol............... 389,716
2,328 Lukens................. 72,168
2,870 Pentair................ 98,298
6,025 Schulman (A.).......... 150,625
3,156 Sealed Air ........(a) 91,919
8,006 Sigma-Aldrich.......... 360,270
14,024 Sonoco Products ....... 290,998
8,883 Sterling Chemicals..... 63,291
4,338 Wausau Paper Mills..... 112,788
8,116 Witco.................. 237,393
------------
5,129,600
------------
CAPITAL GOODS/CONSTRUCTION-4.8%
11,896 AES.................... 211,154
11,436 Allegheny Ludlum....... 218,713
6,011 CBI Industries......... 182,584
3,733 CalMat................. 74,660
6,589 Calgon Carbon.......... 85,657
2,619 Datascope..............(a) 37,321
2,815 Duriron................ 47,503
2,625 Enterra................(a) 52,828
5,517 Federal-Mogul.......... 157,234
5,051 GenCorp................ 70,714
3,394 Goulds Pumps........... 72,971
1,900 Granite Construction... 42,750
2,744 Kaydon................. 63,798
2,050 Kennametal............. 103,525
5,679 Keystone International. 125,648
44,500 Laidlaw, Cl. B. (non-voting) 283,687
3,826 MagneTek............... (a) 55,477
6,846 Mark IV Industries..... 117,238
2,855 Measurex............... 53,174
2,968 Nordson................ 170,660
3,288 OEA.................... 86,310
SHARES COMMON STOCKS (CONTINUED) VALUE
------------ ------------
CAPITAL GOODS/CONSTRUCTION (CONTINUED)
8,684 Parametric Technology. (a)$ 247,494
8,509 RPM.................... 149,971
2,849 Rohr Industries....... (a) 24,929
2,741 Southdown............. (a) 69,896
5,326 Stewart & Stevenson Services 233,013
5,613 Sundstrand............. 266,618
3,171 Thiokol................ 76,500
6,000 York International..... 217,500
------------
3,599,527
------------
CONSUMER CYCLICALS-12.5%
1,432 Angelica............... 35,979
3,568 Arvin Industries....... 95,444
3,266 Belo (A.H.), Cl. A..... 163,708
4,900 Buffets............... (a) 116,375
8,150 CML Group.............. 110,025
2,315 CPI.................... 34,146
3,937 Caesars World......... (a) 191,437
4,963 Cardinal Health........ 213,409
4,516 Chris-Craft Industries. 153,544
14,073 Circus Circus Enterprises (a) 429,226
3,290 Claire's Stores........ 55,519
20,736 Coca Cola Enterprises.. 368,064
9,525 Cracker Barrel Old Country Store 264,319
2,700 Cross (A.T.), Cl. A.... 41,850
9,543 Dole Food.............. 264,818
8,335 Dollar General......... 210,459
4,412 Duty Free International 60,665
3,505 Edison Brothers Stores. 101,645
9,090 Family Dollar Stores... 138,623
7,313 Federal Signal......... 144,432
7,400 Fingerhut Cos.......... 217,375
12,200 Fruit of the Loom, Cl. A (a) 358,375
3,419 Hancock Fabrics........ 28,634
6,106 Harley-Davidson........ 296,904
15,040 Home Shopping Network. (a) 172,960
2,303 Houghton Mifflin....... 101,044
5,584 Intelligent Electronics 106,096
3,983 International Dairy Queen, Cl. A (a) 72,690
3,077 International Multifoods 48,463
3,600 Lancaster Colony....... 153,900
2,874 Lands' End............. 133,641
6,498 Leggett & Platt........ 277,789
4,745 MacFrugal's Bargains Closeouts (a) 80,072
13,036 McCormick & Co......... 267,238
4,200 Media General, Cl. A... 98,175
3,071 Michael Foods.......... 30,326
4,065 Miller (Herman)........ 101,625
14,225 Mirage Resorts........ (a) 293,391
5,848 Morrison Restaurants... 149,855
5,992 Multimedia............ (a) 167,776
4,720 Network Systems....... (a) 33,040
15,079 Office Depot.......... (a) 531,535
4,200 Phillips-Van Heusen.... 139,650
2,200 Sbarro................. 77,550
15,944 Service Merchandise... (a) 113,601
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
SHARES COMMON STOCKS (CONTINUED) VALUE
------------ ------------
CONSUMER CYCLICALS (CONTINUED)
23,032 Shaw Industries........ $ 503,825
2,519 Tiffany & Co........... 76,515
23,644 Tyson Foods, Cl. A..... 461,058
11,337 Unifi.................. 279,174
7,342 United States Shoe..... 132,156
5,307 Waban................. (a) 89,556
3,507 Wallace Computer Services 116,608
1,869 Washington Post, Cl. B. 435,477
3,397 Western Publishing Group (a) 41,189
------------
9,380,950
------------
CONSUMER STAPLES-8.8%
4,595 Acuson................ (a) 59,161
1,734 Advanced Technology Labs (a) 24,709
4,512 Applied Bioscience International (a) 32,712
5,725 Bergen Brunswig, Cl. A. 100,903
5,026 Biogen................ (a) 179,679
6,844 Bob Evans Farms........ 145,435
7,351 Carter-Wallace......... 158,965
7,697 Centocor.............. (a) 72,159
3,188 Church & Dwight........ 68,542
6,070 Continental Medical Systems(a) 52,354
2,295 Cordis................ (a) 106,144
6,377 Dean Foods............. 166,599
3,800 Diagnostek............ (a) 61,275
2,071 Diagnostic Products.... 39,349
2,100 Dibrell Brothers....... 33,600
2,314 Dreyer's Grand Ice Cream 58,428
5,254 FHP International..... (a) 128,066
6,078 Flowers Industries..... 102,566
6,900 Forest Laboratories... (a) 306,187
3,879 Genzyme............... (a) 112,491
4,613 HEALTHSOUTH Rehabilitation(a) 149,346
6,600 Hannaford Brothers..... 144,375
7,600 IBP.................... 197,600
13,700 IVAX................... 332,225
5,887 Medical Care America.. (a) 126,571
12,732 Mylan Laboratories..... 240,317
1,317 NCH.................... 79,843
13,700 National Health Labs... 159,263
4,174 Neutrogena............. 70,958
10,148 NovaCare.............. (a) 178,859
4,361 PacifiCare Health Systems, Cl. A (a) 221,321
12,000 Perrigo............... (a) 228,750
1,964 Puritan-Bennett........ 41,244
3,700 Ruddick................ 68,450
4,181 Savannah Foods & Industries 46,514
2,408 Sci-Med Life Systems.. (a) 71,036
4,720 Smucker (J.M.), Cl. A.. 103,840
3,078 Stanhome............... 101,959
7,775 Stryker................ 209,925
6,069 Surgical Care Affiliates 77,380
4,082 Synergen.............. (a) 38,779
6,528 T2 Medical............. 68,544
6,191 Tambrands.............. 228,293
24,516 United Healthcare...... 1,017,414
SHARES COMMON STOCKS (CONTINUED) VALUE
------------ ------------
CONSUMER STAPLES (CONTINUED)
5,766 Universal.............. $ 105,950
4,264 Universal Foods........ 138,580
6,915 Vons Cos.............. (a) 126,199
3,489 XOMA.................. (a) 13,084
------------
6,595,943
------------
DIVERSIFIED-9.7%
4,000 Air & Water Technologies, Cl. A (a) 30,000
3,276 Altera................ (a) 126,945
7,100 Alumax................. 169,512
5,220 American Waste Services, Cl. A (a) 11,745
10,826 Aon.................... 502,056
12,915 Battle Mountain Gold... 125,921
10,971 Brinker International. (a) 309,931
1,322 Carpenter Technology... 77,502
4,414 Cirrus Logic.......... (a) 158,904
9,038 Clayton Homes......... (a) 193,187
4,601 Danaher................ 182,890
4,304 Donaldson.............. 96,302
3,384 Exabyte............... (a) 65,565
2,242 Fuller (H.B.).......... 78,470
3,173 GATX................... 130,490
26,100 Global Marine......... (a) 104,400
7,670 Heilig-Meyers.......... 218,595
4,761 IMC Fertilizer Group.. (a) 176,157
19,676 International Game Technology 511,576
3,921 Jacobs Engineering Group (a) 82,831
6,796 Kansas City Southern Industries 265,044
5,045 Lance.................. 95,224
2,193 Lawson Products........ 52,632
8,336 Longview Fibre......... 146,922
4,830 MAPCO.................. 311,535
1,400 MAXXAM................ (a) 47,425
3,726 Magma Power........... (a) 113,643
3,975 Mid-American Waste Systems 25,838
4,720 Modine Manufacturing... 120,360
7,182 Murphy Oil............. 316,008
3,997 National Pizza, Cl. A. (a) 22,483
3,740 Octel Communications.. (a) 76,670
3,070 Olin................... 156,954
5,399 Omnicom Group.......... 261,852
3,068 Oregon Steel Mills..... 63,278
5,820 Seagull Energy........ (a) 169,508
1,536 Sequa, Cl. A........... 46,272
4,722 Sizzler International.. 33,644
5,650 Staples............... (a) 156,788
2,700 Teleflex............... 93,825
7,597 Thermo Electron....... (a) 287,736
7,573 Topps.................. 52,064
3,625 Transatlantic Holdings. 167,203
6,351 Trinity Industries..... 220,697
3,803 VeriFone.............. (a) 67,503
5,261 Wellman................ 115,742
8,824 Willamette Industries.. 403,698
------------
7,243,527
------------
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
SHARES COMMON STOCKS (CONTINUED) VALUE
------------ ------------
ENERGY-3.9%
9,381 Anadarko Petroleum..... $ 525,336
9,736 Apache................. 264,089
2,485 BJ Services............ (a) 45,662
4,648 Diamond Shamrock....... 124,915
6,000 El Paso Natural Gas.... 216,000
12,838 Lyondell Petrochemical. 314,531
4,740 MCN.................... 189,007
11,500 Nabors Industries...... (a) 80,500
8,027 Noble Affiliates....... 233,786
4,400 Parker & Parsley Petroleum 114,400
8,837 Parker Drilling........ (a) 50,813
4,386 Quaker State........... 59,211
6,448 Questar................ 214,396
15,782 Ranger Oil............. 100,610
6,310 Smith International.... (a) 78,875
5,123 Tosco.................. 156,892
6,876 Valero Energy.......... 150,413
5,365 Varco International.... (a) 28,837
------------
2,948,273
------------
FINANCIAL-15.5%
16,623 AFLAC.................. 504,924
6,885 Bancorp Hawaii......... 213,435
14,987 Bank of New York....... 829,905
18,401 Bear Stearns Cos....... 388,721
6,259 Central Fidelity Banks. 190,899
7,257 City National......... (a) 72,570
6,206 Comdisco............... 124,896
19,110 Comerica............... 535,080
8,207 Continental Bank....... 283,141
6,045 Crestar Financial...... 269,002
5,254 Dauphin Deposit........ 128,723
5,900 Dreyfus................ 284,675
9,383 Edwards (A.G.)......... 165,375
9,590 Fifth Third Bancorp.... 498,680
6,514 First Alabama Bancshares 230,433
18,204 First Bank System...... 630,313
9,210 First of America Bank.. 347,677
7,606 First Security......... 207,263
4,886 First Tennessee National 205,212
5,206 First Virginia Banks... 191,971
13,208 Franklin Resources..... 500,253
3,296 Hartford Steam Boiler Inspection
& Insurance............. 150,380
5,376 Kemper................. 317,184
4,061 Liberty National Bancorp 116,754
9,991 Marshall & Ilsley...... 207,313
6,831 Mercantile Bancorporation 245,916
7,334 Mercantile Bankshares.. 143,013
9,177 Meridian Bancorp....... 273,016
11,936 Morgan Stanley Group... 735,556
8,524 Northern Trust......... 355,877
3,577 Policy Management Systems (a) 106,416
11,487 Progressive............ 366,148
7,264 Provident Life & Accident
Insurance Co. of America, Cl. B 185,232
SHARES COMMON STOCKS (CONTINUED) VALUE
------------ ------------
FINANCIAL (CONTINUED)
9,283 Schwab (Charles)....... $ 263,405
8,918 Sotheby's Holdings, Cl. A 158,295
12,495 SouthTrust............. 234,281
12,142 State Street Boston.... 465,949
8,242 UJB Financial.......... 224,595
5,364 West One Bancorp....... 150,192
5,900 Wilmington Trust....... 146,025
------------
11,648,695
------------
TECHNOLOGY-13.3%
7,022 AMETEK................. 98,308
5,127 AST Research.......... (a) 92,286
7,206 Adobe Systems.......... 192,760
2,103 Aldus................. (a) 61,513
14,400 American Power Conversion (a) 320,400
7,865 Analog Devices........ (a) 216,287
1,965 Anthem Electronics.... (a) 50,599
12,844 Applied Materials..... (a) 571,558
5,000 Arrow Electronics..... (a) 188,750
6,504 Avnet.................. 234,144
4,155 BMC Software.......... (a) 249,300
4,612 Beckman Instruments.... 114,147
4,311 Borland International. (a) 52,271
4,600 Cabletron Systems..... (a) 473,800
6,925 Cadence Design System. (a) 100,412
8,108 Conner Peripherals.... (a) 126,687
4,104 Convex Computer....... (a) 24,111
5,809 Cypress Semiconductor. (a) 96,575
5,987 Dell Computer......... (a) 131,714
29,500 EMC................... (a) 527,312
9,639 First Financial Management 522,916
6,200 Fiserv................ (a) 137,950
5,161 HON Industries......... 170,313
4,096 Information Resources. (a) 57,344
10,400 Informix.............. (a) 170,300
2,159 KnowledgeWare......... (a) 23,209
7,998 LSI Logic............. (a) 177,955
5,770 Linear Technology...... 274,075
7,509 Mentor Graphics........ 91,985
16,067 Micron Technology...... 588,454
10,161 Molex.................. 350,555
13,800 NEXTEL Communications, Cl. A (a) 489,900
1,204 National Presto Industries 51,321
2,715 Nellcor............... (a) 75,002
2,049 Precision Castparts.... 66,593
6,853 Quantum............... (a) 121,212
6,776 Reynolds & Reynolds, Cl. A 143,990
11,104 Seagate Technology.... (a) 292,868
8,921 Sensormatic Electronics 292,163
4,882 Sequent Computer Systems (a) 65,297
21,334 Silicon Graphics...... (a) 536,017
4,607 Standard Register...... 97,899
6,721 Storage Technology.... (a) 199,950
3,794 Stratus Computer...... (a) 102,438
4,566 Structural Dynamics Research (a) 53,080
4,776 Symantec.............. (a) 75,819
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
SHARES COMMON STOCKS (CONTINUED) VALUE
------------ ------------
TECHNOLOGY (CONTINUED)
3,816 Symbol Technologies... (a) $ 95,877
10,092 SynOptics Communications (a) 201,840
5,722 Teradyne.............. (a) 135,182
5,538 Varian Associates...... 196,599
3,622 Xilinx................ (a) 201,020
------------
9,982,057
------------
TRANSPORT & SERVICES-8.4%
3,069 Airborne Freight....... 112,786
2,187 Alaska Air Group...... (a) 34,172
7,457 Alexander & Baldwin.... 186,425
4,212 American President Cos. 85,819
4,300 Arnold Industries...... 77,400
5,480 Atlantic Southeast Airlines 169,880
3,224 Banta.................. 117,676
17,866 CUC International..... (a) 524,814
5,152 Chiron................ (a) 334,236
7,510 Cintas................. 230,933
4,923 Diebold................ 195,689
2,661 Ennis Business Forms... 36,921
12,055 Equifax................ 330,006
5,188 FlightSafety International 190,659
38,060 General Motors, Cl. E.. 1,284,525
5,630 HealthCare COMPARE.... (a) 104,155
6,100 Hunt (JB) Transport.... 132,675
6,841 Illinois Central, Cl. A 235,159
5,362 International Technology (a) 14,745
6,085 Kelly Services, Cl. A.. 161,253
5,599 LEGENT................ (a) 177,068
5,770 Overseas Shipholding Group 115,400
2,840 PHH.................... 100,820
4,775 Paychex................ 167,125
5,705 Rollins................ 159,027
22,300 Southwest Airlines..... 694,088
8,505 Tidewater.............. 178,605
4,782 Watts Industries, Cl. A 112,377
------------
6,264,438
------------
UTILITIES-16.3%
4,478 ADC Telecommunications (a) 188,636
18,822 Allegheny Power System. 444,670
7,359 American Premier Underwriters 196,853
4,031 Atlanta Gas Light...... 144,612
8,554 Atlantic Energy........ 181,772
2,295 Black Hills............ 50,490
7,494 Brooklyn Union Gas..... 179,856
13,645 CMS Energy............. 303,601
3,620 Central Louisiana Electric 91,405
5,215 Central Maine Power.... 63,884
8,258 Century Telephone Enterprises 208,515
14,033 Cincinnati Gas & Electric 321,005
SHARES COMMON STOCKS (CONTINUED) VALUE
------------ ------------
UTILITIES (CONTINUED)
6,436 Comsat................. 136,765
9,434 Delmarva Power & Light. 198,114
14,216 Florida Progress....... 430,034
4,429 Hawaiian Electric Industries 150,586
5,000 Hubbell, Cl. B......... 299,375
6,034 IPALCO Enterprises..... 193,088
5,883 Idaho Power............ 155,164
12,176 Illinois Power......... 270,916
3,594 Indiana Energy......... 71,880
4,665 Iowa-Illinois Gas & Electric 109,628
9,980 Kansas City Power & Light 228,293
19,078 LDDS Communications... (a) 448,333
5,307 LG&E Energy............ 198,349
5,268 Lincoln Telecommunications 84,946
4,937 Minnesota Power & Light 146,876
8,415 Montana Power.......... 206,168
10,648 NIPSCO Industries...... 336,743
5,837 National Fuel Gas...... 175,110
6,611 Nevada Power........... 139,657
10,416 New England Electric System 390,600
11,288 New York State Electric & Gas 303,365
21,560 Northeast Utilities.... 536,305
6,473 Oklahoma Gas & Electric 225,746
14,036 Pinnacle West Capital.. 289,493
7,657 Portland General Electric 144,526
18,883 Potomac Electric Power. 436,669
9,681 Public Service Co. of Colorado 286,800
6,694 Public Service Co. of New Mexico(a) 89,532
10,090 Puget Sound Power & Light 206,845
5,811 Rochester Telephone.... 265,853
7,482 SCANA.................. 343,237
10,283 Southern New England
Telecommunications... 321,344
6,582 Southwestern Public Service 188,410
3,948 TCA Cable TV........... 78,467
18,518 TECO Energy............ 370,360
7,600 Telephone & Data Systems 288,800
6,700 UtiliCorp United....... 207,700
4,038 Vanguard Cellular Systems, Cl. A(a) 133,254
4,879 WPL Holdings........... 148,200
3,280 Washington Gas Light... 126,690
16,887 Wisconsin Energy....... 441,173
------------
12,178,693
------------
TOTAL INVESTMENTS
(cost $70,173,805)......... 100.0% $ 74,971,703
======= ============
CASH AND RECEIVABLES (NET).... 0.0% $ 34,412
======= ============
NET ASSETS.................... 100.0% $ 75,006,115
======= ============
NOTE TO STATEMENT OF INVESTMENTS;
(A) Non-income producing.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $70,173,805)-see statement...................................... $74,971,703
Cash.................................................................... 57,081
Dividends receivable.................................................... 94,603
Prepaid expenses........................................................ 70,457
-----------
75,193,844
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 398
Payable for Common Stock redeemed....................................... 81,780
Payable for investment securities purchased............................. 25,900
Accrued expenses and other liabilities.................................. 79,651 187,729
---------- -----------
NET ASSETS ................................................................ $75,006,115
============
REPRESENTED BY:
Paid-in capital......................................................... $67,969,280
Accumulated undistributed investment income-net......................... 404,778
Accumulated undistributed net realized gain on investments.............. 1,834,159
Accumulated net unrealized appreciation on investments-Note 3(b)........ 4,797,898
-----------
NET ASSETS at value applicable to 4,505,296 outstanding shares of
Common Stock, equivalent to $16.65 per share (200 million shares of
$.001 par value authorized)............................................. $75,006,115
============
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $670 foreign taxes withheld at source)......... $ 746,210
Interest.............................................................. 8,062
----------
TOTAL INCOME.................................................... $ 754,272
EXPENSES:
Index management fee--Note 2(a)....................................... 37,292
Administration fee-Note 2(a).......................................... 111,877
Shareholder servicing costs-Note 2(b)................................. 37,804
Auditing fees......................................................... 30,963
Registration fees..................................................... 17,234
Custodian fees-Note 2(a).............................................. 14,855
Legal fees............................................................ 11,798
Directors' fees and expenses-Note 2(c)................................ 8,721
Prospectus and shareholders' reports.................................. 7,767
Organization expenses................................................. 6,751
Miscellaneous......................................................... 6,170
----------
291,232
Less-expense reimbursement from World and Dreyfus
due to undertakings and redemption fee-Note 2(a).................. 171,662
----------
TOTAL EXPENSES.................................................. 119,570
-----------
INVESTMENT INCOME--NET.......................................... 634,702
-----------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3(a)............................. $2,008,173
Net realized (loss) on financial futures-Note 3(a);
Long transactions..................................................... (14,335)
----------
NET REALIZED GAIN..................................................... 1,993,838
Net unrealized (depreciation) on investments............................ (3,384,531)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (1,390,693)
-----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (755,991)
===========
See independent accountants' review report and notes to financial statements.
PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1994
1993 (UNAUDITED)
------------- --------------
OPERATIONS:
Investment income--net............................................... $ 1,081,564 $ 634,702
Net realized gain on investments..................................... 2,353,437 1,993,838
Net unrealized appreciation (depreciation) on investments for the period 6,695,691 (3,384,531)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... 10,130,692 (755,991)
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................... (815,333) (1,123,649)
Net realized gain on investments..................................... (784,566) (2,309,722)
------------- -------------
TOTAL DIVIDENDS.................................................... (1,599,899) (3,433,371)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 57,396,624 40,249,861
Dividends reinvested................................................. 1,544,124 3,142,822
Cost of shares redeemed.............................................. (47,770,399) (29,886,851)
------------- -------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............. 11,170,349 13,505,832
------------- -------------
TOTAL INCREASE IN NET ASSETS................................... 19,701,142 9,316,470
NET ASSETS:
Beginning of period.................................................. 45,988,503 65,689,645
------------- -------------
End of period (including undistributed investment income-net:
$893,725 in 1993 and $404,778 in 1994)............................. $65,689,645 $75,006,115
============= =============
SHARES SHARES
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 3,469,387 2,342,605
Shares issued for dividends reinvested............................... 97,298 182,829
Shares redeemed...................................................... (2,902,418) (1,746,273)
------------- -------------
NET INCREASE IN SHARES OUTSTANDING................................. 664,267 779,161
============= =============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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 period indicated. This
information has been derived from information provided in the Fund's
financial statements.
YEAR ENDED OCTOBER 31, SIX MONTHS ENDED
------------------------------ APRIL 30, 1994
PER SHARE DATA: 1991(1) 1992 1993 (UNAUDITED)
------- ------- ------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period..................... $12.50 $13.69 $15.02 $17.63
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net................................... .11 .17 .30 .12
Net realized and unrealized gain (loss) on investments... 1.08 1.29 2.83 (.27)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS....................... 1.19 1.46 3.13 (.15)
------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net.................... -- (.08) (.27) (.27)
Dividends from net realized gain on investments.......... -- (.05) (.25) (.56)
------- ------- ------- -------
TOTAL DISTRIBUTIONS.................................... -_ (.13) (.52) (.83)
------- ------- ------- -------
Net asset value, end of period........................... $13.69 $15.02 $17.63 $16.65
------- ------- ------- -------
------- ------- ------- -------
TOTAL INVESTMENT RETURN 9.52%(2) 10.69% 21.22% (1.03%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. -- -- .09% .16%(2)
Ratio of net investment income to average net assets..... .87%(2) 2.22% 1.97% .84%(2)
Decrease reflected in above expense ratios due to undertakings by
World and Dreyfus...................................... 1.19%(2) 1.17% .77% .23%(2)
Portfolio Turnover Rate.................................. 2.18%(2) 16.31% 16.80% 8.41%(2)
Net Assets, end of period (000's Omitted)................ $5,436 $45,989 $65,690 $75,006
- - ------------------------
(1) From June 19, 1991 (commencement of operations) to October 31, 1991.
(2) Not annualized.
See independent accountants' review report and notes to financial statments.
</TABLE>
PEOPLES S&P MIDCAP INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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. World Asset
Management, Inc. ("World"), an indirect wholly owned subsidiary of Comerica
Bank ("CB") (formerly Woodbridge Capital Management, Inc.), 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 denominated 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 World and an Administration Agreement with Dreyfus
are payable monthly. World 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 World and Dreyfus, or
World 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.
However, World and Dreyfus have undertaken from November 1, 1993 through June
30, 1994, 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.
PEOPLES S&P MIDCAP INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
For the six months ended April 30, 1994, pursuant to the undertakings,
World waived its index management fee of $37,292 and Dreyfus waived its
administration fee of $111,877. Dreyfus has undertaken from November 1, 1993
through January 12, 1994 to assume all other expenses in excess of an annual
rate of .25 of 1% of the average daily value of the Fund's assets, in the
amount of $22,091. In addition, CB earned $14,855 for custodian services
provided to the Fund. For the six months ended April 30, 1994, the Fund
received $402 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 six months ended April 30,
1994, the Fund was charged an aggregate of $15,020 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.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of the Manager and of Mellon. The merger is
expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board and
shareholders before completion of the merger. Shareholder approval will be
solicited by a proxy statement.
NOTE 3--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
other than short-term securities, for the six months ended April 30, 1994
amounted to $16,938,165 and $6,215,375, 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 April 30, 1994, there were no financial futures contracts
outstanding.
(B) At April 30, 1994, accumulated net unrealized appreciation on
investments was $4,797,898, consisting of $9,650,909 gross unrealized
appreciation and $4,853,011 gross unrealized depreciation.
At April 30, 1994, 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.
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
PEOPLES S&P MIDCAP INDEX FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Peoples S&P MidCap Index Fund, Inc., including the statement of investments,
as of April 30, 1994, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended April 30,
1994. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
October 31, 1993 and financial highlights for each of the three years in the
period ended October 31, 1993 and in our report dated December 7, 1993, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young Signature Logo)
New York, New York
June 3, 1994
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal Tax purposes the Fund hereby designates $.440 per share as a
long-term capital gain distribution of the $.8250 per share paid on December
31, 1993.
(Dreyfus Logo)
Peoples S&P
MidCap Index
Fund, Inc.
Semi-Annual
Report
April 30, 1994
(Dreyfus Lion Logo)
(Dreyfus `D' Logo)
PEOPLES S&P MIDCAP INDEX FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
INDEX FUND MANAGER
World Asset 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. 113SA944
