<PAGE>
Dreyfus
Peoples S&P
MidCap Index
Fund, Inc.
Annual Report
October 31, 1995
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- ---------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to send you this letter reporting on the latest fiscal
year of the Peoples S&P MidCap Index Fund, Inc., ended October 31, 1995. (As
you know, effective November 13, 1995, the Fund will begin doing business
under the name Dreyfus MidCap Index Fund.) In addition to providing the
year's results, we include a review of economic and market conditions during
the reporting period.
Economic Environment
The much-desired soft landing for the U.S. economy that the Federal
Reserve Board has been striving to attain appears to have occurred. This is
the result of more than a year of moves by the Fed to tighten interest rates,
followed by a token loosening of the reins last summer.
Now that the economy is no longer as overactive, the central bank
must concern itself with the possibility that the economy might slow down
more than would be desirable. However, the latest economic statistics do not
contain convincing evidence of that happening. The housing industry is doing
well. Industrial orders continue to expand and gross domestic product keeps
on growing, albeit at a reduced rate.
In the meantime, the rate of inflation appears to be under firm
control. Consumer prices have advanced only at a very moderate pace, and
average wages have barely inched ahead. Unemployment is not getting out of
hand, and hovers near the so-called full employment level.
Retail spending has settled down, in part because consumers are
carrying large debit balances in mortgage and credit card debts. To what
extent this will affect holiday shopping remains to be seen.
Market Environment
As your Fund reached the end of its fiscal year, October 31, 1995,
stocks were not far below the record levels they had reached earlier in the
fall.
Among the factors accounting for this market strength were good
corporate profits and low interest rates. Third quarter profit reports from
leading corporations, while not universally favorable, were better than
earlier quarters. The extensive lean and mean corporate reorganizations of
the past few years appear to be paying off. Even though the pricing
environment for most corporate products is extremely competitive,
manufacturers and service providers appear able to squeeze out improved
profits.
How long that continuing improvement will last is an open question.
Many economists think that profit levels may flatten out over the coming
months. The recent record on that score, however, has been encouraging.
Interest rates also have buoyed stock prices and sustained the bond
market. As the cost of borrowing has steadily decreased, many corporations
have benefited. This advantage has been particularly notable with public
utilities.
Another factor in market strength has been the relentless advance of
technology, which has virtually forced corporations -- and now individual
households as well -- to reequip in order to keep up with technical progress.
The obvious result has been seen in record prices commanded during the year
by high technology stocks. While some disillusionment may set in, the market
clearly takes a very optimistic view of the long-range outlook for these
companies.
In addition, all equities have been favorably affected by the very
large inflow of investment money, on a regular basis, from 401(k) and other
retirement plans. To be sure, money managers could at some
<PAGE>
point turn off the spigot, and divert this cash flow into bonds or
money market instruments. During the past year, however, equity purchases by
pension funds and other retirement investors have provided a supportive
background for stock prices.
The horizon isn't without its clouds. Perhaps the most oppressive
has been the wrangling between Congress and the White House over how to
reduce Government spending and cut the burden of the Government's perennial
deficit. Hopefully, this impasse will be settled soon, perhaps by the time
this letter reaches its readers. In the meantime, the uncertainties in
Washington have been a source of worry to investors.
The fading value of the U.S. dollar has also been a question mark.
Yet, after hitting a low last spring, the dollar has gradually recovered some
lost ground. This dollar rebound reflects weakness in the economies of
Western Europe and Japan, but also the strengthening of economic activity
here at home.
Portfolio Overview
The Peoples S&P MidCap Index Fund completed its latest annual fiscal
period on October 31, 1995. The investment objective of the Fund is to
mirror, as closely as possible, the performance of the Standard & Poor's
MidCap 400 IndexTM*. During the last 12-month period, the Index had a
positive total return of 21.21%**, while the Fund's total return for the
same period was 20.78%.*** As the Fund holds stocks in generally the same
proportion as each stock within the Index itself, the Fund's performance
should closely match that of the Index. The difference in total return is
accounted for by various factors which affect this Fund and not the Index,
including commission expenses, transaction costs and general Fund expenses.
The midcap market continues to be focused on the issues of economic
growth, inflation and technology. The domestic economy continues to advance
at a rate slightly better than average. Inflation remains in check with the
core producer price index for finished goods increasing only slightly. We
fully expect the Fed to continue with an interest rate policy to keep
inflation within the Fed's targeted guidelines.
Value and growth sections of the S&P MidCap 400 Index continue to
trade places for the lead on a month-to-month comparison. July favored the
Growth Index and August favored the Value Index. This has been a repeating
story throughout 1995 with growth slightly ahead of value at the end of the
third quarter.
The midcap and small cap stocks have continued to gain ground on the
large cap stocks throughout the year.
Sincerely,
Steven Albrecht
Portfolio Manager
November 8, 1995
New York, N.Y.
* The Standard & Poor's MidCap 400 Index is a broad-based Index of 400
companies and is a widely accepted, unmanaged index of medium-cap stock
market performance. "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, sold, endorsed or promoted by S&P.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC.
***Total return includes reinvestment of dividends and any capital gains
paid.
<PAGE>
Peoples S&P MidCap Index Fund, Inc. October 31, 1995
- ------------------------------------------------------------------------
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
[CHART]
<TABLE>
<CAPTION>
Standard & Poor's 500
People's S&P Composite Stock Standard & Poor's
Period MidCap Index Fund Price Index* MidCap 400 Index*
- ---------------- ----------------- --------------------- -----------------
<S> <C> <C> <C>
6/19/91 10,000 10,000 10,000
10/31/92 10,952 10,675 11,547
10/31/93 12,123 11,737 12,612
10/31/94 14,695 13,487 15,327
10/31/95 14,973 14,007 15,691
10/31/96 18,084 17,706 19,020
</TABLE>
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
- -----------------------------------------------------------------------
One Year Ended From Inception (6/19/91)
October 31, 1995 to October 31, 1995
-------------------- ------------------------------
20.78% 14.52%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Peoples S&P MidCap
Index Fund, Inc. 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 and 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 shown in the line graph takes into account all
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 overall midcap 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.
<PAGE>
<TABLE>
<CAPTION>
Peoples S&P MidCap Index Fund, Inc.
- ------------------------------------------------------------------------
Statement of Investments October 31, 1995
<S> <C> <C>
Shares Common Stocks--90.4% Value
-------- ------------
Basic Materials--5.9%
5,861 Albany International, Cl. A ....... $ 121,616
13,300 Albemarle ......................... 247,713
16,215 Battle Mountain Gold .............. 123,639
5,404 Betz Laboratories ................. 217,511
7,810 Bowater ........................... 345,592
3,129 Brush Wellman ..................... 52,411
7,700 Cabot ............................. 365,750
3,116 Carlisle Companies ................ 128,146
3,244 Carpenter Technology .............. 122,866
4,791 Chesapeake ........................ 146,724
2,268 Cleveland-Cliffs .................. 84,767
8,921 Consolidated Papers ............... 510,727
9,776 Crompton & Knowles ................ 123,422
4,943 Dexter ............................ 118,014
23,800 Ethyl ............................. 264,775
5,453 Ferro ............................. 126,101
4,108 First Brands ...................... 187,941
7,779 Georgia Gulf ...................... 257,679
3,324 Gibson Greetings .................. 46,120
8,900 Glatfelter (P.H.) ................. 164,650
7,168 Hanna (M.A.) ...................... 183,680
5,073 Harsco ............................ 267,601
5,761 IMC Global ........................ 403,270
9,046 Lawter International .............. 96,114
6,918 Loctite ........................... 326,875
10,436 Longview Fibre .................... 151,322
12,888 Lubrizol .......................... 370,530
2,928 Lukens ............................ 90,036
3,868 Oregon Steel Mills ................ 55,119
3,670 Pentair ........................... 185,335
7,325 Schulman (A.) ..................... 137,344
8,112(a) Sealed Air ........................ 213,954
18,430 Sonoco Products ................... 456,142
11,183(a) Sterling Chemicals ................ 89,464
5,751 Wausau Paper Mills ................ 140,900
11,316 Witco ............................. 319,677
------------
7,243,527
------------
Capital Goods/Construction--5.6%
14,996(a) AES ............................... 296,171
14,136 Allegheny Ludlum .................. 238,545
7,411 CBI Industries .................... 230,667
4,533 CalMat ............................ 76,494
7,889 Calgon Carbon ..................... 89,737
15,147 Clayton Homes ..................... 397,609
11,702 Danaher ........................... 362,762
3,119(a) Datascope ......................... 74,076
5,304 Donaldson ......................... 129,285
3,815 Duriron ........................... 102,051
6,817 Federal-Mogul ..................... 121,854
6,451 GenCorp ........................... 67,736
4,294 Goulds Pumps ...................... 101,983
2,400 Granite Construction .............. 68,100
Capital Goods/Construction (continued)
6,440 Hubbell, Cl. B .................... $ 388,010
3,244 Kaydon ............................ 93,671
5,200 Kennametal ........................ 161,850
6,879 Keystone International ............ 153,058
4,826(a) MagneTek .......................... 47,657
12,018 Mark IV Industries ................ 234,351
2,955 Measurex .......................... 90,866
3,568 Nordson ........................... 206,052
4,088 OEA ............................... 111,398
12,484(a) Parametric Technology ............. 834,868
12,009 RPM ............................... 232,674
3,649(a) Rohr Industries ................... 54,279
3,341(a) Southdown ......................... 54,291
6,426 Stewart & Stevenson Services ...... 146,192
6,213 Sundstrand ........................ 380,546
4,300 Tecumseh Products, Cl. A .......... 202,100
3,671 Thiokol ........................... 127,108
7,000 Vulcan Materials .................. 389,375
10,041(a) Weatherford Enterra ............... 242,239
8,550 York International ................ 374,062
------------
6,881,717
------------
Consumer Cyclicals--12.3%
1,832 Angelica .......................... 41,220
4,600(a) Ann Taylor Stores ................. 50,600
4,368 Arvin Industries .................. 77,532
7,732 Belo (A.H.), Cl. A ................ 267,721
8,500(a) Best Buy .......................... 176,375
15,071(a) Brinker International ............. 182,736
6,200(a) Buffets ........................... 77,500
13,000(a) Burlington Industries ............. 144,625
10,050 CML Group ......................... 57,787
2,715 CPI ............................... 49,549
13,600 Callaway Golf ..................... 222,700
8,428 Cardinal Health ................... 432,989
5,866(a) Chris-Craft Industries ............ 233,907
9,410 Cintas ............................ 395,220
21,073(a) Circus Circus Enterprises ......... 561,069
4,190 Claire's Stores ................... 82,229
26,036 Coca Cola Enterprises ............. 693,209
12,025 Cracker Barrel Old Country
Store ........................... 204,425
3,200 Cross (A.T.), Cl. A ............... 45,600
821(a) Dave & Buster's ................... 12,315
11,943 Dole Food ......................... 449,355
13,418 Dollar General .................... 328,741
5,312 Duty Free International ........... 75,696
4,405 Edison Brothers Stores ............ 15,968
11,390 Family Dollar Stores .............. 173,697
9,200 Fingerhut Companies ............... 125,350
5,200(a) Fred Meyer ........................ 96,850
9,900(a) HFS ............................... 606,375
4,219 Hancock Fabrics ................... 36,916
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- ------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
-------- ------------
Consumer Cyclicals (continued)
15,012 Harley-Davidson ................... $ 401,571
9,770 Heilig-Meyers ..................... 179,524
18,240(a) Home Shopping Network ............. 148,200
2,903 Houghton Mifflin .................. 119,023
6,984 Intelligent Electronics ........... 53,253
4,683(a) International Dairy
Queen, Cl. A .................... 99,514
26,076 International Game
Technology ...................... 303,133
3,477 International Multifoods .......... 71,278
5,200(a) Jones Apparel Group ............... 178,100
7,200(a) Kohls ............................. 326,700
5,833 Lancaster Colony .................. 193,947
6,748(a) Lands' End ........................ 101,220
4,700 Lee Enterprises ................... 187,412
16,796 Leggett & Platt ................... 403,104
5,145(a) MacFrugal's Bargains
Closeouts ...................... 61,097
5,300 Media General, Cl. A .............. 147,075
3,871 Michael Foods ..................... 46,936
4,865 Miller (Herman) ................... 144,126
18,325(a) Mirage Resorts .................... 600,144
5,820 Modine Manufacturing .............. 160,050
6,748 Morrison Restaurants .............. 105,437
7,392(a) Multimedia ........................ 327,096
7,000(a) Nine West Group ................... 311,500
29,968(a) Office Depot ...................... 857,834
8,400(a) Outback Steakhouse ................ 263,550
10,342 Promus Hotel ...................... 227,524
13,400(a) Revco D.S. ........................ 318,250
4,100 Sbarro ............................ 85,588
20,044(a) Service Merchandise ............... 107,736
27,232 Shaw Industries ................... 347,208
5,800 Superior Industries
International.................... 163,125
3,119 Tiffany & Co. ..................... 136,066
28,944 Tyson Foods, Cl. A ................ 691,038
13,737 Unifi ............................. 309,082
6,507(a) Waban ............................. 101,672
4,407 Wallace Computer Services ......... 248,445
2,269 Washington Post, Cl. B ............ 658,010
4,197(a) Western Publishing Group .......... 34,363
------------
15,137,187
------------
Consumer Staples--9.5%
5,595(a) Acuson ............................ 65,042
2,634(a) Advanced Technology
Laboratories .................... 47,412
5,512(a) Applied Bioscience
International.................... 35,139
8,031 Bergen Brunswig, Cl. A ............ 166,643
6,526(a) Biogen ............................ 399,718
8,344 Bob Evans Farms ................... 150,192
Consumer Staples (continued)
9,251 Carter-Wallace .................... $ 97,135
11,697(a) Centocor........................... 131,591
8,220(a) Chiron............................. 748,020
3,888 Church & Dwight.................... 79,218
7,960(a) Coram Healthcare................... 31,840
3,295(a) Cordis............................. 364,098
7,777 Dean Foods......................... 216,784
2,571 Diagnostic Products................ 95,127
2,514 Dreyer's Grand Ice Cream........... 86,733
8,054(a) FHP International.................. 195,310
7,678 Flowers Industries................. 166,037
9,100(a) Forest Laboratories................ 376,512
11,400(a) Foundation Health.................. 483,075
5,779(a) Genzyme-General Division........... 336,627
18,626(a) HEALTHSOUTH........................ 486,604
8,500 Hannaford Brothers................. 222,062
6,200(a) Health Care & Retirement........... 182,125
6,830(a) HealthCare COMPARE................. 252,710
6,100(a) Healthsource....................... 323,300
10,115(a) Horizon/CMS Healthcare............. 204,829
9,500 IBP................................ 568,813
23,050 IVAX............................... 524,388
24,732 Laboratory Corporation of
America Holdings................. 210,222
2,543(a) Laboratory Corporation of America
Holdings (Warrants).............. 1,589
5,945 Lance.............................. 100,322
16,336 McCormick & Co. ................... 404,316
23,898 Mylan Laboratories................. 454,062
1,717 NCH................................ 93,362
13,148(a) NovaCare........................... 82,175
6,161(a) PacifiCare Health Systems,
Cl. A............................ 448,213
15,300(a) Perrigo............................ 187,425
9,200 Ruddick............................ 117,300
5,281 Savannah Foods & Industries........ 66,012
4,700(a) Scherer (R.P.)..................... 209,150
3,000(a) Scholastic......................... 185,250
5,422 Sizzler International.............. 18,977
5,720 Smucker (J.M.), Cl. A.............. 112,255
3,778 Stanhome........................... 115,229
9,675 Stryker............................ 436,584
7,869 Surgical Care Affiliates........... 233,119
7,391 Tambrands.......................... 330,747
7,066 Universal.......................... 148,386
5,264 Universal Foods.................... 180,292
10,438(a) Value Health....................... 238,769
8,715(a) Vons Companies..................... 221,143
------------
11,631,983
------------
Diversified--5.4%
6,400(a) Air & Water Technologies,
Cl. A............................ 32,000
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- ------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
-------- ------------
Diversified (continued)
8,452(a) Altera............................. $ 511,346
9,000(a) Alumax............................. 265,500
19,000(a) Atmel.............................. 593,750
12,028(a) Cirrus Logic....................... 506,680
5,400 DENTSPLY International............. 186,300
4,384(a) Exabyte............................ 56,718
2,742 Fuller (H.B.)...................... 86,373
4,921(a) Jacobs Engineering Group........... 107,647
8,496 Kansas City Southern
Industries....................... 396,126
2,293 Lawson Products.................... 55,032
9,000(a) Litton Industries.................. 356,625
1,800(a) MAXXAM............................. 66,600
8,600 McKesson........................... 410,650
4,640(a) Octel Communications............... 158,340
4,770 Olin............................... 305,280
7,299 Omnicom Group...................... 466,224
5,800 Rayonier........................... 217,500
1,936(a) Sequa, Cl. A....................... 49,852
20,562(a) Staples............................ 547,463
3,500 Teleflex........................... 148,312
16,195 Thermo Electron.................... 744,970
9,473 Topps.............................. 58,022
4,403(a) VeriFone........................... 118,881
6,661 Wellman............................ 156,533
------------
6,602,724
------------
Energy--4.0%
10,559 American Financial Group........... 295,652
11,881 Anadarko Petroleum................. 515,338
15,236 Apache............................. 388,518
5,385(a) BJ Services........................ 126,548
5,648 Diamond Shamrock................... 145,436
6,800 El Paso Natural Gas................ 183,600
33,100(a) Global Marine...................... 215,150
16,038 Lyondell Petrochemical............. 342,812
5,830 MAPCO.............................. 300,245
13,180 MCN................................ 286,665
8,982 Murphy Oil......................... 340,193
16,900(a) Nabors Industries.................. 145,762
10,077 Noble Affiliates................... 249,406
6,800 Parker & Parsley Petroleum......... 125,800
11,137(a) Parker Drilling.................... 58,469
6,286 Quaker State....................... 82,504
8,148 Questar............................ 245,459
19,782 Ranger Oil......................... 113,747
7,020(a) Seagull Energy..................... 120,218
7,710(a) Smith International................ 123,360
7,423 Tosco.............................. 256,093
8,776 Valero Energy...................... 207,333
6,065(a) Varco International................ 55,343
------------
4,923,651
------------
Financial--13.4%
19,823 AFLAC.............................. $ 807,787
21,739 Aon................................ 894,016
8,385 Bancorp Hawaii..................... 280,898
23,657 Bear Stearns Companies............. 470,183
7,659 Central Fidelity Banks............. 237,429
9,057 City National...................... 120,005
7,106 Comdisco........................... 216,733
23,710 Comerica........................... 797,249
7,645 Crestar Financial.................. 435,765
6,054 Dauphin Deposit.................... 175,566
12,383 Edwards (A.G.)..................... 315,766
13,090 Fifth Third Bancorp................ 880,302
10,006 First Security..................... 327,697
6,986 First Tennessee National........... 373,751
6,606 First Virginia Banks............... 270,020
12,610 First of America Bank.............. 537,501
16,208 Franklin Resources................. 822,556
27,400 Green Tree Financial............... 729,525
4,096 Hartford Steam Boiler
Inspection & Insurance........... 190,976
23,700 Hibernia, Cl.A..................... 234,037
6,976 Kemper............................. 338,336
18,591 Marshall & Ilsley.................. 450,832
11,031 Mercantile Bancorporation.......... 485,364
9,534 Mercantile Bankshares.............. 262,185
11,577 Meridian Bancorp................... 494,917
11,224 Northern Trust..................... 535,946
20,000 Paine Webber Group................. 440,000
14,387 Progressive........................ 597,061
9,164 Provident Life & Accident
Insurance Co. of America......... 245,137
9,214 Regions Financial.................. 367,408
34,348 Schwab (Charles)................... 785,711
11,218 Sotheby's Holdings, Cl. A.......... 155,650
17,395 SouthTrust......................... 437,049
16,642 State Street Boston................ 646,958
4,625 Transatlantic Holdings............. 311,609
11,042 UJB Financial...................... 351,964
7,764 West One Bancorp................... 329,970
6,900 Wilmington Trust................... 203,550
------------
16,557,409
------------
Technology--15.6%
6,722 AMETEK............................. 118,475
8,882(a) AST Research....................... 78,828
14,309 Adobe Systems...................... 815,613
18,600(a) American Power Conversion.......... 190,650
15,147(a) Analog Devices..................... 547,185
9,331(a) Arrow Electronics.................. 473,548
8,604 Avnet.............................. 433,426
10,110(a) BMC Software....................... 360,169
22,954(a) Bay Networks....................... 1,520,702
5,812 Beckman Instruments................ 192,522
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- ------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
-------- ------------
Technology (continued)
5,611(a) Borland International.............. $ 76,450
11,138(a) Cadence Design System.............. 359,184
10,100(a) California Energy.................. 183,063
9,100(a) Compuware.......................... 207,025
10,508(a) Conner Peripherals................. 189,144
5,204(a) Convex Computer.................... 23,418
8,259(a) Cypress Semiconductor.............. 291,130
17,974(a) Dell Computer...................... 838,038
42,900(a) EMC................................ 664,950
10,200(a) Electronic Arts.................... 373,575
9,113 Federal Signal..................... 203,903
8,700(a) Fiserv............................. 224,025
6,161 HON Industries..................... 170,968
5,396(a) Information Resources.............. 58,682
26,500(a) Informix........................... 771,812
15,000(a) Integrated Device Technology....... 285,000
25,396(a) LSI Logic.......................... 1,196,787
14,340 Linear Technology.................. 627,375
10,509(a) Mentor Graphics.................... 220,689
6,200(a) Micro Warehouse.................... 275,900
20,313 Molex.............................. 670,329
38,400(a) NEXTEL Communications.............. 532,800
1,504 National Presto Industries......... 60,912
5,615(a) Nellcor............................ 322,862
4,023 Precision Castparts................ 143,822
10,253(a) Quantum............................ 178,146
8,276 Reynolds & Reynolds, Cl. A......... 294,833
14,204(a) Seagate Technology................. 635,629
14,621 Sensormatic Electronics............ 312,524
6,182(a) Sequent Computer Systems........... 107,412
9,000(a) Solectron.......................... 362,250
5,607 Standard Register.................. 126,158
10,513(a) Storage Technology................. 258,883
4,594(a) Stratus Computer................... 142,988
5,966(a) Structural Dynamics Research....... 108,880
7,676(a) Symantec........................... 186,623
5,216(a) Symbol Technologies................ 181,908
15,044(a) Teradyne........................... 502,093
8,000 U.S. Robotics...................... 740,000
6,738 Varian Associates.................. 346,165
11,500(a) Vishay Intertechnology............. 405,375
14,166(a) Xilinx............................. 651,636
------------
19,244,464
------------
Transport & Services--4.4%
4,269 Airborne Freight................... 112,061
2,587(a) Alaska Air Group................... 38,482
9,157 Alexander & Baldwin................ 210,611
6,312 American President
Companies........................ 153,066
5,200 Arnold Industries.................. 84,500
6,680 Atlantic Southeast Airlines........ 165,330
Transport & Services (continued)
4,024 Banta.............................. $ 174,038
5,923 Diebold............................ 313,919
3,261 Ennis Business Forms............... 46,469
15,255 Equifax............................ 594,945
6,088 FlightSafety International......... 290,702
3,973 GATX............................... 188,718
7,500 Hunt (JB) Transport................ 116,250
8,241 Illinois Central, Cl. A............ 315,218
7,385 Kelly Services, Cl. A.............. 185,548
15,100 Manpower........................... 409,587
8,400 Olsten............................. 323,400
7,070 Overseas Shipholding Group......... 120,190
3,340 PHH................................ 146,125
9,012 Paychex............................ 390,896
3,877(a) Policy Management Systems.......... 182,704
7,005 Rollins............................ 147,105
12,100(a) Rollins Environmental Services..... 40,837
10,705 Tidewater.......................... 282,344
8,251 Trinity Industries................. 244,436
5,782 Watts Industries, Cl. A............ 119,254
------------
5,396,735
------------
Utilities--14.3%
12,356(a) ADC Telecommunications............. 494,240
24,022 Allegheny Power System............. 633,580
5,531 Atlanta Gas Light.................. 213,635
10,854 Atlantic Energy.................... 210,296
2,895 Black Hills........................ 72,737
9,694 Brooklyn Union Gas................. 243,562
17,645 CMS Energy......................... 487,443
4,520 Central Louisiana Electric......... 121,475
6,315 Central Maine Power................ 87,621
11,758 Century Telephone
Enterprises...................... 340,982
9,436 Comsat............................. 187,541
12,034 Delmarva Power & Light............. 264,748
19,216 Florida Progress................... 636,530
32,022 Frontier........................... 864,594
5,829 Hawaiian Electric Industries....... 227,331
7,634 IPALCO Enterprises................. 281,504
7,583 Idaho Power........................ 210,428
15,176 Illinova........................... 430,619
4,494 Indiana Energy..................... 94,936
12,480 Kansas City Power & Light.......... 310,440
6,607 LG & E Energy...................... 274,191
7,368 Lincoln Telecommunications......... 127,098
20,733 MidAmerican Energy................. 331,737
6,137 Minnesota Power & Light............ 175,672
10,715 Montana Power...................... 243,766
12,848 NIPSCO Industries.................. 468,952
7,537 National Fuel Gas.................. 224,226
9,211 Nevada Power....................... 201,491
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- ------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
-------- ------------
Utilities (continued)
13,016 New England Electric System........ $ 507,624
14,388 New York State Electric & Gas...... 363,297
25,160 Northeast Utilities................ 622,710
7,873 Oklahoma Gas & Electric............ 314,920
17,536 Pinnacle West Capital.............. 482,240
10,157 Portland General Electric.......... 275,509
23,783 Potomac Electric Power............. 594,575
12,681 Public Service Co. of Colorado..... 432,739
8,394(a) Public Service Co. of
New Mexico....................... 140,600
12,790 Puget Sound Power & Light.......... 290,972
20,464 SCANA.............................. 519,274
12,983 Southern New England
Telecommunications............... 469,011
7,982 Southwestern Public Service........ 262,408
4,948 TCA Cable TV....................... 146,584
23,418 TECO Energy........................ 553,250
11,400 Telephone & Data Systems........... 456,000
9,000 UtiliCorp United................... 259,875
8,757(a) Vanguard Cellular Systems,
Cl. A............................ 195,938
5,979 WPL Holdings....................... 182,360
8,560 Washington Gas Light............... 163,710
21,987 Wisconsin Energy................... 648,616
37,978(a) WorldCom........................... 1,239,032
------------
17,582,619
------------
TOTAL COMMON STOCKS
(cost $94,059,436)............... $111,202,016
------------
------------
CONVERTIBLE PREFERRED
STOCKS--0.0%
Financial;
223(a,b) Everen, Series A, 13.50%
(cost $4,795).................... $ 4,823
------------
------------
Principal SHORT-TERM
Amount INVESTMENTS--10.0%
---------
U.S. Treasury Bills--.2%
$ 200,000(c) 5.99%, 4/4/96 ..................... $ 195,422
------------
Repurchase Agreements--9.8%
12,072,000 Paine Webber, Inc.
5.80% Dated 10/31/95,
Due 11/1/95 in the amount
of $12,073,945 (fully
collateralized by $11,995,000
U.S. Treasury Notes,
6.875%, 2/28/97,
value $12,322,494)............... 12,072,000
------------
TOTAL SHORT-TERM
INVESTMENTS
(cost $12,267,415)............... $ 12,267,422
------------
TOTAL INVESTMENTS
(cost $106,331,646).......................... 100.4% $123,474,261
------ ------------
------ ------------
LIABILITIES, LESS CASH
AND RECEIVABLES.............................. (.4%) $ (492,606)
------ ------------
------ ------------
NET ASSETS .................................... 100.0% $122,981,655
------ ------------
------ ------------
Notes to Statement of Investments:
(a) Non-income producing.
(b) Convertible into Everen Capital bond, 13.50%, 9/15/2007.
(c) Wholly held by custodian in a segregated account as collateral for
open financial futures positions.
</TABLE>
Statement of Financial Futures October 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market Value Unrealized
Number of Covered (Depreciation)
Financial Futures Long Contracts by Contracts Expiration at 10/31/95
- -------------------------- ------------ ------------- -------------- -------------
<S> <C> <C> <C> <C>
Standard & Poor's MidCap 400................. 113 $11,893,250 Dec. '95 $(421,685)
==========
</TABLE>
See notes to financial statements.
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- -------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in securities, at value--Note 1(b)
(cost $106,331,646)--see statement................................... $123,474,261
Cash.................................................................... 129,720
Dividends and interest receivable....................................... 109,090
Prepaid expenses........................................................ 12,826
Due from The Dreyfus Corporation........................................ 34,573
------------
123,760,470
LIABILITIES:
Due to World Asset Management........................................... $ 10,499
Payable for investment securities purchased............................. 339,758
Payable for Common Stock redeemed....................................... 244,069
Payable for futures variation margin--Note 3(a)......................... 53,675
Accrued expenses........................................................ 130,814 778,815
--------- ------------
NET ASSETS ................................................................ $122,981,655
------------
------------
REPRESENTED BY:
Paid-in capital......................................................... $ 99,269,656
Accumulated undistributed investment income--net........................ 1,487,878
Accumulated undistributed net realized gain on investments.............. 5,503,191
Accumulated net unrealized appreciation on investments [including
($421,685) net unrealized (depreciation) on financial futures]
--Note 3(b)........................................................... 16,720,930
------------
NET ASSETS at value applicable to 6,337,980 shares outstanding
(200 million shares of $.001 par value Common Stock authorized)......... $122,981,655
------------
------------
NET ASSET VALUE, per share
($122,981,655 / 6,337,980 shares)....................................... $19.40
------
------
</TABLE>
See notes to financial statements.
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- -----------------------------------------------------------------
Statement of Operations year ended October 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Cash dividends (net of $399 foreign taxes withheld at source)......... $1,853,716
Interest.............................................................. 397,096
----------
Total Income.................................................... $2,250,812
Expenses:
Index management fee--Note 2(a)....................................... 98,063
Administration fee--Note 2(a)......................................... 294,190
Shareholder servicing costs--Note 2(b)................................ 188,998
Registration fees..................................................... 56,590
Legal fees............................................................ 41,695
Auditing fees......................................................... 41,364
Custodian fees--Note 2(a)............................................. 37,560
Prospectus and shareholders' reports.................................. 25,840
Directors' fees and expenses--Note 2(c)............................... 23,176
Miscellaneous......................................................... 23,844
----------
831,320
Less--reduction in management fee and administration fee from World and
Dreyfus due to undertakings and redemption fee--Note 2(a).......... 345,273
----------
Total Expenses.................................................. 486,047
-----------
INVESTMENT INCOME--NET........................................... 1,764,765
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 3(a)............................. $4,284,157
Net realized gain on financial futures--Note 3(a);
Long transactions..................................................... 1,364,616
----------
Net Realized Gain..................................................... 5,648,773
Net unrealized appreciation on investments [including ($436,655)
net unrealized (depreciation) on financial futures]................... 11,878,944
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 17,527,717
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $19,292,482
-----------
-----------
</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,
---------------------------------
1994 1995
------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................ $ 1,227,409 $ 1,764,765
Net realized gain on investments.................................. 3,427,593 5,648,773
Net unrealized appreciation (depreciation) on investments for
the year........................................................ (3,340,443) 11,878,944
------------ ------------
Net Increase In Net Assets Resulting From Operations............ 1,314,559 19,292,482
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................. (1,123,649) (1,274,372)
Net realized gain on investments.................................. (2,309,722) (3,413,496)
------------ ------------
Total Dividends................................................. (3,433,371) (4,687,868)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 61,712,647 44,222,299
Dividends reinvested.............................................. 3,142,822 4,181,647
Cost of shares redeemed........................................... (53,021,949) (15,431,258)
------------ ------------
Increase In Net Assets From Capital Stock Transactions.......... 11,833,520 32,972,688
------------ ------------
Total Increase In Net Assets.................................. 9,714,708 47,577,302
NET ASSETS:
Beginning of year................................................. 65,689,645 75,404,353
------------ ------------
End of year (including undistributed investment income-net:
$997,485 in 1994 and $1,487,878 in 1995)........................ $ 75,404,353 $122,981,655
------------ ------------
------------ ------------
Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 3,634,804 2,528,662
Shares issued for dividends reinvested............................ 182,828 270,132
Shares redeemed................................................... (3,144,607) (859,974)
------------ ------------
Net Increase In Shares Outstanding.............................. 673,025 1,938,820
------------ ------------
------------ ------------
</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,
--------------------------------------------------------------
PER SHARE DATA: 1991(1) 1992 1993 1994 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $12.50 $13.69 $15.02 $17.63 $17.14
------ ------ ------ ------ ------
Investment Operations:
Investment income--net.................. .11 .17 .30 .26 .29
Net realized and unrealized gain on
investments .......................... 1.08 1.29 2.83 .08 3.00
------ ------ ------ ------ ------
Total from Investment Operations...... 1.19 1.46 3.13 .34 3.29
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net... -- (.08) (.27) (.27) (.28)
Dividends from net realized gain on
investments .......................... -- (.05) (.25) (.56) (.75)
------ ------ ------ ------ ------
Total Distributions................... -- (.13) (.52) (.83) (1.03)
------ ------ ------ ------ ------
Net asset value, end of year............ $13.69 $15.02 $17.63 $17.14 $19.40
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN..................... 9.52%(2) 10.69% 21.22% 1.89% 20.78%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... -- -- .09% .40% .50%
Ratio of net investment income to average
net assets ............................ .87%(2) 2.22% 1.97% 1.68% 1.80%
Decrease reflected in above expense
ratios due to undertakings by
World and Dreyfus......................... 1.19%(2) 1.17% .77% .43% .35%
Portfolio Turnover Rate................... 2.18%(2) 16.31% 16.80% 19.81% 20.46%
Net Assets, end of year (000's Omitted)... $5,436 $45,989 $65,690 $75,404 $122,982
<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 ("World"), a Delaware general partnership the majority general
partner of which is Munder Capital Management, serves as the Fund's index
manager. Prior to December 31, 1994, World Asset Management, Inc. served as
the Fund's index manager. Comerica Bank serves as the Fund's custodian. The
Dreyfus Corporation ("Dreyfus") serves as the Fund's administrator. Dreyfus
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. (the "Distributor") acts as the distributor of the Fund's shares, which
are sold without a sales charge. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc.
On April 24, 1995, a special meeting of the Fund's stockholders was held
for the purpose of approving a new index management agreement with World. A
total of 3,255,496 shares of common stock were represented at the meeting,
3,089,961 of such shares were voted in favor of the proposal, 28,644 shares
were voted against the proposal and 136,891 shares abstained from voting.
Effective November 13,1995, the Fund will operate under the name Dreyfus
MidCap Index Fund and Dreyfus will serve as the Fund's manager and Mellon
Equity Associates, an affiliate of Dreyfus ("Mellon Equity"), will serve as
the Fund's index manager. In addition, Boston Safe Deposit and Trust Company,
an affiliate of Dreyfus, will serve as the Fund's custodian.
(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.
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 index 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
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
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.
(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 (exclusive of certain expenses as described above) 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
had undertaken from November 1, 1994 through November 7, 1994, to waive the
index management fee and administration fee. World and Dreyfus had currently
undertaken from November 8, 1994 through June 4, 1995 with respect to World
and through October 31, 1996 with respect to Dreyfus, to reduce the
management fee and administration fee paid by the Fund (exclusive of certain
expenses as described above), and to assume all expenses in excess of an
annual rate of .50 of 1% of the average daily value of the Fund's net assets.
For the year ended October 31, 1995, pursuant to the undertakings, World
waived $39,687 of its index management fee and Dreyfus waived $301,166 of its
administration fee. In addition, Comerica Bank earned $37,560 for custodian
services provided to the Fund. For the year ended October 31, 1995, the Fund
received $4,421 in redemption fees.
(b) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
providing reports and other information, and services related to the
maintenance of shareholder accounts. During the year ended October 31, 1995,
the Fund was charged an aggregate of $134,490 pursuant to the Shareholder
Services Plan.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
other than short-term securities, for the year ended October 31, 1995
amounted to $42,217,509 and $18,725,504, respectively.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments (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, 1995 and their related unrealized market (depreciation) are set forth in
the Statement of Financial Futures.
(b) At October 31, 1995, accumulated net unrealized appreciation on
investments was $16,720,930, consisting of $23,482,956 gross unrealized
appreciation and $6,762,026 gross unrealized depreciation.
At October 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
<PAGE>
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, 1995, 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 verification by
examination of securities held by the custodian as of October 31, 1995 and
confirmation of securities not held by the custodian by correspondence with
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, 1995, 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, 1995
<PAGE>
Peoples S&P MidCap Index Fund, Inc.
200 Park Avenue
New York, NY 10166
Index Fund Manager
World Asset Management, Inc.
480 Pierce Street
Birmingham, MI 48009
Custodian
Comerica Bank
411 West Lafayette
Detroit, MI 48226
Administrator
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Transfer Agent &
Dividend Disbursing Agent
First Data Investor 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. 113AR9510
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 |
|10/31/95 | 18,084 | 17,706 | 19,020 |
|--------------------------------------|-----------|
* Source: Lipper Analytical Services, Inc.
