<PAGE>
Dreyfus
Peoples S&P
MidCap Index
Fund, Inc.
Annual Report
October 31, 1994
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Peoples S&P MidCap Index Fund completed its latest annual fiscal
period on October 31, 1994. This came at a time of improving domestic
economic strength in the country.
The investment objective of the Fund is to mirror, as closely as
possible, the performance of the Standard & Poor's MidCap 400 Index.* For the
full 12 months, the Index produced a positive total return of 2.38%,** which
is a strong improvement from the first part of the year. Reflecting this, the
Fund's total return for the same period was 1.89%. The difference is
accounted for by various factors including commission expenses, other
transaction costs and general Fund expenses.
The MidCap market continues to be focused on the issues of economic
growth and inflation. Earnings estimates and revisions remain important, but
have clearly taken a back seat to the economic picture. The domestic economy
continues to advance at a rate slightly better than average even with an
interest rate adjustment throughout the year. The four-week moving average of
jobless claims reached another low in the third quarter with consumer
confidence remaining high.
Inflation remains in check, with the core Producer Price Index for
finished goods increasing most recently only 0.1%. However, the annual rate
increase since January is in the range of 2.25% to 2.50%. This is
significantly higher than the 0.4% experienced during all of 1993. The PPI
for intermediate goods has also increased dramatically, with all indications
that sharp price increases are coming. Complicating the issue of increases in
price indicators is a corresponding decrease in unemployment and a higher
capacity utilization in manufacturing, slightly greater than 84%, from a
start in January at 82%. We fully expect the Fed to continue with interest
rate increases to keep inflation within the Fed's targeted guidelines.
Total return for MidCap equities remains positive. The economic
fundamentals for the U.S. continue to improve and international markets are
beginning to show signs of recovery as well. This should improve the
opportunity for U.S. exports. Also on a positive note, corporate profits are
increasing and unemployment continues to improve.
The earlier drop in the stock market was influenced by interest rate and
exchange rate uncertainty. As the business recovery continues and the market
digests the recent interest rate changes, stock prices will reflect the
underlying strength of the U.S. economy. In our view, equities 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,
(Steven Albrecht Signature Logo)
Steven Albrecht
Managing Director
World Asset Management, Inc.
November 16, 1994
New York, N.Y.
* "S&P Registration 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: The Standard & Poor's Corporation. 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.
<PAGE>
- --------------------------------------------------------------------------------
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PEOPLES S&P MIDCAP
INDEX FUND, INC. WITH
THE STANDARD & POOR'S MIDCAP 400 INDEX AND
THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
$15,691
Standard
& Poor's
MidCap
400 Index*
$14,973
Peoples
[chart] S&P
MidCap
Index Fund
$14,007
Standard
& Poor's
500
Composite
Stock
Price Index*
*Source: Lipper Analytical Services, Inc.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
ONE YEAR ENDED FROM INCEPTION (6/19/91)
OCTOBER 31, 1994 TO OCTOBER 31, 1994
----------------------------------------- -----------------------------------------
<S> <C>
1.89% 12.73%
</TABLE>
Past performance is not predictive of future performance.
The above graph 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 each of the
Standard & Poor's MidCap 400 Index and the Standard & Poor's 500 Composite Stock
Price Index on that date. For comparative purposes, the value of the Indices 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 & Poor's MidCap 400 Index is a broad-based Index of 400 companies with
market capitalizations generally ranging from $50 million to $10 billion and is
a widely accepted, unmanaged index of medium cap stock market performance. The
Fund holds stocks in generally the same proportion as the stocks within the
Index itself. The Standard & Poor's 500 Composite Stock Price Index is a widely
accepted, unmanaged index of overall stock market performance. Both indices do
not take into account charges, fees and 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. "S&Pt" 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.
<PAGE>
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PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1994
<TABLE>
<CAPTION>
SHARES COMMON STOCKS -- 94.3% VALUE
- ---------- -----------
<C> <S> <C>
BASIC MATERIALS-7.7%
4,561 Albany International, Cl.
A.......................... $ 90,080
9,100 Albemarle.................... 138,775
12,115 Battle Mountain Gold......... 134,779
4,204 Betz Laboratories............ 209,674
5,510 Bowater...................... 148,770
2,429 Brush Wellman................ 40,686
5,700 Cabot........................ 162,450
2,316 Carlisle Cos................. 75,559
1,222 Carpenter Technology......... 69,043
3,691 Chesapeake................... 114,421
1,868 Cleveland-Cliffs............. 71,217
6,621 Consolidated Papers.......... 297,117
7,776 Crompton & Knowles........... 109,836
3,643 Dexter....................... 75,137
17,900 Ethyl........................ 203,613
4,453 Ferro........................ 114,108
3,308 First Brands................. 110,818
21,336 Freeport McMoRan............. 392,049
6,179(a) Georgia Gulf................. 239,436
2,424 Gibson Greetings............. 36,057
6,600 Glatfelter (P.H.)............ 104,775
5,368 Hanna (M.A.)................. 137,555
3,773 Harsco....................... 163,182
4,461(a) IMC Global................... 189,593
6,746 Lawter International......... 85,168
5,318 Loctite...................... 237,316
7,836 Longview Fibre............... 131,253
10,088 Lubrizol..................... 325,338
2,228 Lukens....................... 70,461
2,968 Oregon Steel Mills........... 50,827
2,770 Pentair...................... 116,340
5,625 Schulman (A.)................ 160,313
2,956(a) Sealed Air................... 100,874
13,224 Sonoco Products.............. 290,928
8,383(a) Sterling Chemicals........... 101,644
4,038 Wausau Paper Mills........... 92,874
8,324 Willamette Industries........ 387,066
8,416 Witco........................ 235,648
-----------
5,814,780
-----------
CAPITAL GOODS/CONSTRUCTION-5.8%
11,196(a) AES.......................... 221,121
10,736 Allegheny Ludlum............. 213,378
5,711 CBI Industries............... 132,067
3,533 CalMat....................... 73,310
6,189 Calgon Carbon................ 69,626
9,038(a) Clayton Homes................ 163,814
4,301 Danaher...................... 211,287
2,419(a) Datascope.................... 42,332
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
CAPITAL GOODS/CONSTRUCTION (CONTINUED)
4,104 Donaldson.................... $ 94,392
2,815 Duriron...................... 50,670
2,525(a) Enterra...................... 57,759
5,117 Federal-Mogul................ 116,412
4,751 GenCorp...................... 57,012
3,194 Goulds Pumps................. 69,869
1,800 Granite Construction......... 39,375
4,700 Hubbell, CL.B................ 272,012
2,544 Kaydon....................... 59,466
3,900 Kennametal................... 109,687
5,279 Keystone International....... 104,260
41,900 Laidlaw, Cl. B.
(non-voting)............... 329,962
3,626(a) MagneTek..................... 53,937
6,446 Mark IV Industries........... 136,978
2,755 Measurex..................... 59,577
2,868 Nordson...................... 160,608
3,088 OEA.......................... 76,042
8,384(a) Parametric Technology........ 301,824
8,509 RPM.......................... 159,544
2,749(a) Rohr Industries.............. 25,085
2,541(a) Southdown.................... 44,150
5,026 Stewart & Stevenson
Services................... 193,501
5,013 Sundstrand................... 228,092
2,600 Tecumseh Products, Cl. A..... 126,100
2,871 Thiokol...................... 70,698
5,600 York International........... 218,400
-----------
4,342,347
-----------
CONSUMER CYCLICALS-13.3%
1,332 Angelica..................... 35,298
3,268 Arvin Industries............. 79,657
3,066 Belo (A.H.), Cl. A........... 167,863
10,471(a) Brinker International........ 242,142
4,600(a) Buffets...................... 47,725
7,650 CML Group.................... 75,544
2,215 CPI.......................... 48,176
3,737(a) Caesars World................ 163,961
5,200 Callaway Golf................ 198,900
5,828 Cardinal Health.............. 272,459
4,216(a) Chris-Craft Industries....... 159,154
7,110 Cintas....................... 252,405
12,973(a) Circus Circus Enterprises.... 288,649
3,090 Claire's Stores.............. 35,921
19,536 Coca Cola Enterprises........ 380,952
9,025 Cracker Barrel Old Country
Store...................... 198,550
2,600 Cross (A.T.), Cl. A.......... 39,325
8,943 Dole Food.................... 240,343
7,935 Dollar General............... 230,115
</TABLE>
<PAGE>
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PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
<TABLE>
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
CONSUMER CYCLICALS (CONTINUED)
4,112 Duty Free International...... $ 54,998
3,305 Edison Brothers Stores....... 78,494
8,590 Family Dollar Stores......... 99,859
7,000 Fingerhut Cos................ 113,750
11,400(a) Fruit of the Loom, Cl. A..... 326,325
3,219 Hancock Fabrics.............. 24,545
11,612(a) Harley-Davidson.............. 325,136
7,270 Heilig-Meyers................ 217,191
14,240(a) Home Shopping Network........ 149,520
2,203 Houghton Mifflin............. 101,338
5,284 Intelligent Electronics...... 81,902
3,683(a) International Dairy Queen,
Cl. A...................... 62,611
19,376 International Game
Technology................. 358,456
2,977 International Multifoods..... 53,586
5,600(a) Kohls........................ 236,600
4,533 Lancaster Colony............. 157,522
5,348 Lands' End................... 98,938
3,500 Lee Enterprises.............. 117,687
6,098 Leggett & Platt.............. 227,150
4,445(a) MacFrugal's Bargains
Closeouts.................. 91,678
4,000 Media General, Cl. A......... 113,500
2,971 Michael Foods................ 29,339
3,765 Miller (Herman).............. 99,773
13,725(a) Mirage Resorts............... 284,794
4,420 Modine Manufacturing......... 129,285
5,348 Morrison Restaurants......... 156,429
5,592(a) Multimedia................... 165,663
4,520(a) Network Systems.............. 31,358
21,618(a) Office Depot................. 535,046
4,000 Phillips-Van Heusen.......... 57,500
3,000 Sbarro....................... 74,625
15,044(a) Service Merchandise.......... 90,264
21,732 Shaw Industries.............. 317,831
4,500 Superior Industries
International . 132,750
2,319 Tiffany & Co................. 90,441
22,344 Tyson Foods, Cl. A........... 519,498
10,637 Unifi........................ 275,232
6,942 United States Shoe........... 124,088
5,007(a) Waban........................ 88,874
3,407 Wallace Computer Services.... 94,544
1,769 Washington Post, Cl. B....... 433,405
3,197(a) Western Publishing Group..... 40,762
-----------
10,019,426
-----------
CONSUMER STAPLES-8.7%
4,295(a) Acuson....................... 78,921
1,934(a) Advanced Technology
Laboratories............... 30,944
4,212(a) Applied Bioscience
International.............. 23,166
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
5,525 Bergen Brunswig, Cl. A....... $ 91,162
4,926(a) Biogen....................... 241,374
6,344 Bob Evans Farms.............. 129,259
6,951 Carter-Wallace............... 97,314
7,697(a) Centocor..................... 136,141
4,952(a) Chiron....................... 333,641
2,988 Church & Dwight.............. 67,230
5,670(a) Continental Medical
Systems.................... 40,399
3,860 Coram Healthcare............. 63,690
2,395(a) Cordis....................... 138,012
5,977 Dean Foods................... 172,586
3,600(a) Diagnostek................... 56,700
1,971 Diagnostic Products.......... 47,304
2,000 Dibrell Brothers............. 43,500
2,214 Dreyer's Grand Ice Cream..... 56,457
4,854(a) FHP International............ 140,766
5,678 Flowers Industries........... 103,624
6,600(a) Forest Laboratories.......... 303,600
3,679(a) Genzyme...................... 120,487
4,413(a) HEALTHSOUTH Rehabilitation... 167,694
6,200 Hannaford Brothers........... 153,450
7,200 IBP.......................... 245,700
13,000(a) IVAX......................... 248,625
4,645 Lance........................ 83,610
12,336 McCormick & Co............... 243,636
11,932 Mylan Laboratories........... 334,096
1,217 NCH.......................... 81,083
3,797(a) NPC International, Cl. A..... 25,630
12,800 National Health
Laboratories............... 184,000
9,648(a) NovaCare..................... 96,480
4,161(a) PacifiCare Health Systems,
Cl. A...................... 309,994
12,000(a) Perrigo...................... 162,000
1,864 Puritan-Bennett.............. 48,697
3,500 Ruddick...................... 68,250
3,981 Savannah Foods &
Industries................. 49,762
2,308(a) Sci-Med Life Systems......... 110,207
4,322 Sizzler International........ 25,932
4,420 Smucker (J.M.), Cl. A........ 104,975
2,978 Stanhome..................... 100,135
7,275 Stryker...................... 249,169
5,869 Surgical Care Affiliates..... 115,179
3,882(a) Synergen..................... 21,351
5,791 Tambrands.................... 237,431
5,266 Universal.................... 118,485
3,964 Universal Foods.............. 119,415
5,700(a) Value Health................. 220,875
6,515(a) Vons Cos..................... 127,043
3,289(a) XOMA......................... 9,867
-----------
6,579,048
-----------
</TABLE>
<PAGE>
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PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
<TABLE>
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
DIVERSIFIED-4.0%
4,800(a) Air & Water Technologies, Cl.
A.......................... $ 33,600
3,076(a) Altera....................... 121,310
6,700 Alumax....................... 199,325
4,520(a) American Waste Services, Cl.
A.......................... 7,910
4,214(a) Cirrus Logic................. 121,152
3,184(a) Exabyte...................... 70,048
2,142 Fuller (H.B.)................ 71,221
3,721(a) Jacobs Engineering Group..... 79,536
6,496 Kansas City Southern
Industries................. 219,240
2,093 Lawson Products.............. 54,941
6,900 Litton Industries............ 253,575
1,300(a) MAXXAM....................... 43,712
3,626(a) Magma Power.................. 135,522
3,775(a) Mid-American Waste Systems... 20,762
3,540(a) Octel Communications......... 76,553
3,170 Olin......................... 173,954
5,099 Omnicom Group................ 271,522
4,500 Rayonier..................... 132,750
1,436(a) Sequa, Cl. A................. 35,182
8,775(a) Staples...................... 201,825
2,600 Teleflex..................... 100,750
7,297(a) Thermo Electron.............. 332,926
7,073 Topps........................ 41,554
3,603(a) VeriFone..................... 81,068
4,961 Wellman...................... 163,093
-----------
3,043,031
-----------
ENERGY-4.8%
8,881 Anadarko Petroleum........... 434,059
9,236 Apache....................... 259,762
2,385(a) BJ Services.................. 48,594
4,348 Diamond Shamrock............. 126,092
5,600 El Paso Natural Gas.......... 174,300
24,600(a) Global Marine................ 116,850
12,138 Lyondell Petrochemical....... 332,278
4,530 MAPCO........................ 247,451
4,440 MCN.......................... 168,720
6,782 Murphy Oil................... 322,993
10,900(a) Nabors Industries............ 80,388
7,527 Noble Affiliates............. 225,810
4,600 Parker & Parsley Petroleum... 115,000
8,337(a) Parker Drilling.............. 51,064
4,086 Quaker State................. 55,672
6,048 Questar...................... 173,880
14,882 Ranger Oil................... 96,733
5,420(a) Seagull Energy............... 140,920
5,910(a) Smith International.......... 98,993
4,923 Tosco........................ 156,305
6,576 Valero Energy................ 142,206
5,065(a) Varco International.......... 35,455
-----------
3,603,525
-----------
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
FINANCIAL-14.7%
15,623 AFLAC........................ $ 533,135
15,339 Aon.......................... 477,426
6,485 Bancorp Hawaii............... 179,148
28,274 Bank of New York............. 897,699
18,021 Bear Stearns Cos............. 292,841
5,859 Central Fidelity Banks....... 169,179
6,757 City National................ 74,327
5,806 Comdisco..................... 116,120
17,710 Comerica..................... 489,239
5,745 Crestar Financial............ 236,981
4,954 Dauphin Deposit.............. 113,942
9,083 Edwards (A.G.)............... 168,035
9,290 Fifth Third Bancorp.......... 485,402
17,304 First Bank System............ 644,574
7,206 First Security............... 189,157
4,586 First Tennessee National..... 215,542
4,906 First Virginia Banks......... 179,069
9,010 First of America Bank........ 305,214
12,408 Franklin Resources........... 507,177
3,096 Hartford Steam Boiler
Inspection & Insurance..... 131,967
4,976 Kemper....................... 259,996
14,691 Marshall & Ilsley............ 302,084
6,431 Mercantile Bancorporation.... 223,477
6,934 Mercantile Bankshares........ 145,614
8,677 Meridian Bancorp............. 251,091
11,236 Morgan Stanley Group......... 734,554
8,024 Northern Trust............... 291,372
10,887 Progressive.................. 413,706
6,864 Provident Life & Accident
Insurance Co. of
America,................... 172,458
6,214 Regions Financial............ 196,906
8,783 Schwab (Charles)............. 311,797
8,418 Sotheby's Holdings, Cl. A.... 102,068
11,895 SouthTrust................... 228,235
11,442 State Street Boston.......... 381,877
3,425 Transatlantic Holdings....... 174,247
7,842 UJB Financial................ 211,734
5,264 West One Bancorp............. 144,760
5,600 Wilmington Trust............. 140,000
-----------
11,092,150
-----------
TECHNOLOGY-15.7%
5,822 AMETEK....................... 105,524
4,827(a) AST Research................. 61,092
9,009 Adobe Systems................ 324,324
13,700(a) American Power Conversion.... 253,450
7,465(a) Analog Devices............... 266,874
1,865(a) Anthem Electronics........... 61,312
12,544(a) Applied Materials............ 652,288
</TABLE>
<PAGE>
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PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
<TABLE>
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
4,700(a) Arrow Electronics............ $ 177,425
5,000(a) Atmel........................ 184,375
6,104 Avnet........................ 228,900
3,955(a) BMC Software................. 178,964
13,254(a) Bay Networks................. 335,497
4,312 Beckman Instruments.......... 126,665
4,011(a) Borland International........ 42,617
10,750(a) Cabletron Systems............ 540,187
6,525(a) Cadence Design System........ 130,500
7,708(a) Conner Peripherals........... 88,642
3,904(a) Convex Computer.............. 32,208
5,609(a) Cypress Semiconductor........ 117,088
5,687(a) Dell Computer................ 253,071
28,600(a) EMC.......................... 614,900
6,913 Federal Signal............... 133,075
9,239 First Financial Management... 517,384
5,900(a) Fiserv....................... 138,650
38,660 General Motors, Cl. E........ 1,415,922
4,761 HON Industries............... 126,166
3,796(a) Information Resources........ 56,940
9,800(a) Informix..................... 269,500
2,159(a) KnowledgeWare................ 8,636
7,498(a) LSI Logic.................... 318,665
5,470 Linear Technology............ 262,560
7,109(a) Mentor Graphics.............. 95,083
9,561 Molex........................ 425,464
1,104 National Presto Industries... 43,470
2,515(a) Nellcor...................... 77,965
14,000(a) NEXTEL Communications........ 293,125
2,923 Precision Castparts.......... 66,864
6,553(a) Quantum...................... 100,752
6,476 Reynolds & Reynolds, Cl.A.... 161,091
10,704(a) Seagate Technology........... 271,614
10,021 Sensormatic Electronics...... 377,040
4,582(a) Sequent Computer Systems..... 87,058
20,834(a) Silicon Graphics............. 632,833
4,307 Standard Register............ 77,526
6,521(a) Storage Technology........... 180,958
3,594(a) Stratus Computer............. 133,877
4,366(a) Structural Dynamics
Research................... 21,284
5,176(a) Symantec..................... 91,874
3,616(a) Symbol Technologies.......... 122,040
5,422(a) Teradyne..................... 178,248
5,238 Varian Associates............ 193,806
3,422(a) Xilinx....................... 198,904
-----------
11,854,277
-----------
TRANSPORT & SERVICES-5.6%
2,969 Airborne Freight............. 56,782
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
TRANSPORT & SERVICES (CONTINUED)
1,987(a) Alaska Air Group............. $ 34,772
7,057 Alexander & Baldwin.......... 164,075
4,012 American President Cos....... 97,291
4,000 Arnold Industries............ 93,250
5,180 Atlantic Southeast
Airlines................... 90,650
3,024 Banta........................ 93,744
16,966(a) CUC International............ 545,033
4,623 Diebold...................... 195,322
2,461 Ennis Business Forms......... 33,223
11,355 Equifax...................... 330,714
4,788 FlightSafety International... 193,315
2,973 GATX......................... 125,238
5,330(a) HealthCare COMPARE........... 148,574
5,800 Hunt (JB) Transport.......... 97,150
6,441 Illinois Central, Cl. A...... 206,917
5,062(a) International Technology..... 19,615
5,785 Kelly Services, Cl. A........ 172,104
5,199(a) LEGENT....................... 148,172
6,300 Olsten....................... 226,013
5,770 Overseas Shipholding Group... 136,316
2,640 PHH.......................... 99,000
4,475 Paychex...................... 167,813
3,377(a) Policy Management Systems.... 158,719
5,405 Rollins...................... 126,342
8,005 Tidewater.................... 183,114
5,951 Trinity Industries........... 203,822
4,382 Watts Industries, Cl. A...... 105,168
-----------
4,252,248
-----------
UTILITIES-14.0%
4,178(a) ADC Telecommunications....... 196,888
17,822 Allegheny Power System....... 369,806
6,959 American Premier
Underwriters............... 173,975
3,731 Atlanta Gas Light............ 121,257
8,054 Atlantic Energy.............. 135,911
2,195 Black Hills.................. 44,997
7,094 Brooklyn Union Gas........... 163,162
12,845 CMS Energy................... 295,435
3,420 Central Louisiana Electric... 73,957
4,915 Central Maine Power.......... 56,523
8,058 Century Telephone
Enterprises................ 241,740
7,036 Comsat....................... 151,274
8,934 Delmarva Power & Light....... 168,629
14,116 Florida Progress............. 412,893
4,229 Hawaiian Electric
Industries................. 137,442
5,734 IPALCO Enterprises........... 173,454
5,683 Idaho Power.................. 131,419
11,476 Illinova Corp................ 226,651
3,394 Indiana Energy............... 66,183
4,465 Iowa-Illinois Gas &
Electric................... 91,532
</TABLE>
<PAGE>
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PEOPLES S&P MIDCAP INDEX FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
<TABLE>
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
UTILITIES (CONTINUED)
9,380 Kansas City Power & Light.... $ 209,878
5,007 LG&E Energy.................. 189,640
18,278(a) LDDS Communications.......... 429,533
4,968 Lincoln Telecommunications... 80,730
4,737 Minnesota Power Light........ 123,754
8,015 Montana Power................ 184,345
9,948 NIPSCO Industries............ 277,301
5,637 National Fuel Gas............ 167,701
6,311 Nevada Power................. 124,642
9,816 New England Electric
System..................... 307,977
10,688 New York State Electric &
Gas........................ 203,072
18,860 Northeast Utilities.......... 436,138
6,073 Oklahoma Gas & Electric...... 204,964
13,236 Pinnacle West Capital........ 246,521
7,257(a) Portland General Electric.... 126,090
17,783 Potomac Electric Power....... 342,323
9,181 Public Service Co. of
Colorado................... 250,182
6,294(a) Public Service Co. of New
Mexico..................... 77,888
9,590 Puget Sound Power & Light.... 194,198
10,922 Rochester Telephone.......... 267,589
7,082 SCANA........................ 305,411
9,683 Southern New England
Telecommunications......... 342,536
6,182 Southwestern Public
Service.................... 161,505
3,748 TCA Cable TV................. 88,078
17,518 TECO Energy.................. 339,411
8,000 Telephone & Data Systems..... 396,000
6,400 UtiliCorp United............. 176,800
5,757(a) Vanguard Cellular Systems,
Cl. A...................... 167,673
<CAPTION>
SHARES COMMON STOCKS (CONTINUED) VALUE
- ---------- -----------
<C> <S> <C>
UTILITIES (CONTINUED)
4,579 WPL Holdings................. $ 129,357
3,180 Washington Gas Light......... 114,083
15,887 Wisconsin Energy............. 421,006
-----------
10,519,454
-----------
TOTAL COMMON STOCKS
(cost $66,293,270)......... $71,120,286
-----------
-----------
PRINCIPAL SHORT-TERM
AMOUNT INVESTMENTS-5.3% VALUE
-----------
- ----------
U.S. TREASURY BILLS-.2%
$ 200,000(b) 5%, 6/29/1995................ $ 192,600
-----------
REPURCHASE AGREEMENT-5.1%
3,826,000 Kidder, Peabody & Co. Inc.,
4.75% Dated 10/31/1994, Due
11/1/1994 in the amount of
$3,826,505 (fully
collateralized by
$5,135,000 U.S. Treasury
Strip, 8/15/98,
value $3,905,809).......... 3,826,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $4,018,600)............ $ 4,018,600
-----------
-----------
TOTAL INVESTMENTS
(cost $70,311,870)................... 99.6% $75,138,886
------ -----------
------ -----------
CASH AND RECEIVABLES (NET)........... .4% $ 265,467
------ -----------
------ -----------
NET ASSETS...........................100.0% $75,404,353
------ -----------
------ -----------
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(A) Non-income producing.
(B) Wholly held by custodian in a segregated account as collateral for open
financial futures positions.
- --------------------------------------------------------------------------------
STATEMENT OF FINANCIAL FUTURES OCTOBER 31, 1994
<TABLE>
<S> <C> <C> <C> <C>
NUMBER MARKET VALUE UNREALIZED
OF COVERED APPRECIATION
FINANCIAL FUTURES LONG CONTRACTS BY CONTRACTS EXPIRATION AT 10/31/94
- -------------------------------- ---------- ------------- ------------ -----------
Standard & Poor's MidCap 400 13 $1,151,800 December '94 $14,970
-------
-------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PEOPLES S&P MIDCAP INDEX FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1994
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value--Note 1(b)
(cost $70,311,870)--see statement....................................................... $75,138,886
Cash...................................................................................... 133,192
Receivable for investment securities sold................................................. 304,582
Dividends and interest receivable......................................................... 93,124
Prepaid expenses.......................................................................... 44,939
-----------
75,714,723
LIABILITIES:
Due to The Dreyfus Corporation............................................................ $ 8,000
Payable for investment securities purchased............................................... 202,744
Payable for futures variation margin--Note 3(a)........................................... 8,650
Accrued expenses and other liabilities.................................................... 90,976 310,370
--------- -----------
NET ASSETS.................................................................................. $75,404,353
-----------
-----------
REPRESENTED BY:
Paid-in capital........................................................................... $66,296,968
Accumulated undistributed investment income--net.......................................... 997,485
Accumulated undistributed net realized gain on investments................................ 3,267,914
Accumulated net unrealized appreciation on investments (including $14,970 net unrealized
appreciation on financial futures)--Note 3(b)........................................... 4,841,986
-----------
NET ASSETS at value applicable to 4,399,160 shares outstanding
(200 million shares of $.001 par value Common Stock authorized)........................... $75,404,353
-----------
-----------
NET ASSET VALUE, per share
(75,404,353 / 4,399,160 shares)........................................................... $17.14
------
------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PEOPLES S&P MIDCAP INDEX FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $1,144 foreign taxes withheld at source)......................... $1,509,772
Interest................................................................................ 11,776
----------
TOTAL INCOME........................................................................ $1,521,548
EXPENSES:
Index management fee--Note 2(a)......................................................... 72,970
Administration fee--Note 2(a)........................................................... 218,911
Shareholder servicing costs--Note 2(b).................................................. 115,890
Auditing fees........................................................................... 52,671
Registration fees....................................................................... 43,882
Custodian fees--Note 2(a)............................................................... 27,114
Legal fees.............................................................................. 18,672
Directors' fees and expenses--Note 2(c)................................................. 17,607
Prospectus and shareholders' reports.................................................... 15,423
Miscellaneous........................................................................... 26,347
----------
609,487
Less--expense reimbursement from World and Dreyfus
due to undertakings and redemption fee--Note 2(a)..................................... 315,348
----------
TOTAL EXPENSES...................................................................... 294,139
----------
INVESTMENT INCOME--NET.............................................................. 1,227,409
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 3(a)............................................... $3,430,703
Net realized (loss) on financial futures--Note 3(a);
Long transactions....................................................................... (3,110)
----------
NET REALIZED GAIN....................................................................... 3,427,593
Net unrealized (depreciation) on investments (including $14,970
net unrealized appreciation on financial futures)....................................... (3,340,443)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS..................................... 87,150
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................ $1,314,559
----------
----------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PEOPLES S&P MIDCAP INDEX FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
---------------------------------
1993 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income--net.............................................................. $ 1,081,564 $ 1,227,409
Net realized gain on investments.................................................... 2,353,437 3,427,593
Net unrealized appreciation (depreciation) on investments for the year.............. 6,695,691 (3,340,443)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. 10,130,692 1,314,559
------------ ------------
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 61,712,647
Dividends reinvested................................................................ 1,544,124 3,142,822
Cost of shares redeemed............................................................. (47,770,399) (53,021,949)
------------ ------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............................ 11,170,349 11,833,520
------------ ------------
TOTAL INCREASE IN NET ASSETS.................................................... 19,701,142 9,714,708
NET ASSETS:
Beginning of year................................................................... 45,988,503 65,689,645
------------ ------------
End of year (including undistributed investment income-net:
$893,725 in 1993 and $997,485 in 1994)............................................ $ 65,689,645 $ 75,404,353
------------ ------------
------------ ------------
<CAPTION>
SHARES SHARES
<S> <C> <C>
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................................... 3,469,387 3,634,804
Shares issued for dividends reinvested.............................................. 97,298 182,828
Shares redeemed..................................................................... (2,902,418) (3,144,607)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING................................................ 664,267 673,025
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
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 the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------------
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
PER SHARE DATA: 1991(1) 1992 1993 1994
------ ------ ------ ------
Net asset value, beginning of year......................................... $12.50 $13.69 $15.02 $17.63
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net..................................................... .11 .17 .30 .26
Net realized and unrealized gain on investments............................ 1.08 1.29 2.83 .08
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS......................................... 1.19 1.46 3.13 .34
------ ------ ------ ------
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 year............................................... $13.69 $15.02 $17.63 $17.14
------ ------ ------ ------
------ ------ ------ ------
- -----------------------------------------------------------------------------
TOTAL INVESTMENT RETURN 9.52%(2) 10.69% 21.22% 1.89%
- -----------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................... -- -- .09% .40%
Ratio of net investment income to average net assets....................... .87%(2) 2.22% 1.97% 1.68%
Decrease reflected in above expense ratios due to undertakings by
World and Dreyfus........................................................ 1.19%(2) 1.17% .77% .43%
Portfolio Turnover Rate.................................................... 2.18%(2) 16.31% 16.80% 19.81%
Net Assets, end of year (000's Omitted).................................... $5,436 $45,989 $65,690 $75,404
<FN>
- ---------------
(1) From June 19, 1991 (commencement of operations) to October 31, 1991.
(2) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
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. 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, a
wholly-owned subsidiary of Dreyfus, until August 24, 1994, acted as the
exclusive distributor of the Fund's shares, which are sold without a sales
charge. Effective August 24, 1994, Dreyfus became a direct subsidiary of Mellon
Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the "Distributor")
was engaged as the Fund's distributor. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of
Institutional Administration Services, Inc., a provider of mutual fund
administration services, the parent company of which is Boston Institutional
Group, Inc.
(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.
The Fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Fund's Manager, subject to the seller's
agreement to repurchase and the Fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the Fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. 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.
<PAGE>
- --------------------------------------------------------------------------------
PEOPLES S&P MIDCAP INDEX FUND, INC.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise taxes.
NOTE 2--MANAGEMENT FEE, 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
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, World and Dreyfus
have undertaken from November 1, 1993 through November 7, 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.
For the year ended October 31, 1994, pursuant to the undertakings, World
waived its index management fee of $72,970 and Dreyfus waived its administration
fee of $218,911. 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 $27,114 for custodian services provided to the Fund. For the
year ended October 31, 1994, the Fund received $1,375 in redemption fees.
World and Dreyfus have currently undertaken from November 8, 1994 through
December 31, 1994 to reduce the management fee and administration fee paid by
the Fund in the same proportion as their respective fees (excluding certain
expenses as described above), to assume all expenses in excess of an annual rate
of .50 of 1% of the average daily value of the Fund's assets.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation 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, 1994, the
Fund was charged an aggregate of $65,400 pursuant to the Shareholder Services
Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "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.
<PAGE>
- --------------------------------------------------------------------------------
PEOPLES S&P MIDCAP INDEX FUND, INC.
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, 1994 amounted
to $19,742,690 and $14,322,966, 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 (see the Statement of Financial Futures). Investments in
financial futures require the Fund to "mark to market" on a daily basis, which
reflects the change in the market value of the contract at the close of each
day's trading. Accordingly, variation margin payments are 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. Contracts open at October 31, 1994 and their related
unrealized market appreciation are set forth in the Statement of Financial
Futures.
(B) At October 31, 1994, accumulated net unrealized appreciation on
investments was $4,841,986, consisting of $10,344,836 gross unrealized
appreciation and $5,502,850 gross unrealized depreciation.
At October 31, 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).
<PAGE>
- --------------------------------------------------------------------------------
PEOPLES S&P MIDCAP INDEX FUND, INC.
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, 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 statements of investments and
financial futures, as of October 31, 1994, 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, 1994 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit 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, 1994, 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 LLP
New York, New York
December 7, 1994
<PAGE>
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
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. 113AR9410
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
PEOPLES S&P MIDCAP INDEX FUND, INC. WITH THE STANDARD &
POOR'S MIDCAP 400 INDEX AND THE STANDARD & POOR'S
500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
_________________________________________________________________
| | | STANDARD | STANDARD |
| | PEOPLES | & POOR'S 500 | & POOR'S |
| PERIOD | S&P MIDCAP |COMPOSITE STOCK | MIDCAP 400 |
| | INDEX FUND | PRICE INDEX * | INDEX * |
|-----------|-----------------|----------------|-----------------|
| 6/19/91 | 10,000 | 10,000 | 10,000 |
| 10/31/91 | 10,952 | 10,675 | 11,547 |
| 10/31/92 | 12,123 | 11,737 | 12,612 |
| 10/31/93 | 14,695 | 13,487 | 15,327 |
| 10/31/94 | 14,973 | 14,007 | 15,691 |
|----------------------------------------------|-----------------|
* Source: Lipper Analytical Services, Inc.
