DREYFUS MIDCAP INDEX FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The letter that follows is the first report to shareholders since the
Dreyfus MidCap Index Fund changed its name and acquired a new portfolio
manager.
The Fund, formerly known as Peoples S&P MidCap Index Fund, is now managed
by Steven A. Falci of Mellon Equity Associates which, like Dreyfus, is a
subsidiary of Mellon Bank.
Steve Falci has broad experience in portfolio management. Before joining
Mellon Equity Associates in April, 1994, Steve was the Managing
Director-Pension Investments at NYNEX Corporation where he oversaw the
internally managed assets of the NYNEX Pension Fund and the NYNEX Foundation.
He was responsible for equity and fixed income portfolio management and
trading, investment strategy and the generation of new portfolio
applications. At Mellon, Steve also manages Dreyfus LifeTime Portfolios, Inc.
He is a chartered financial analyst and is a member of the Association
for Investment Management and Research. He received an M.B.A. in finance and
a B.S. in economics, both from New York University.
Sincerely,
[Stephen Canter signature logo]
Stephen Canter
Chief Investment Officer
The Dreyfus Corporation
DREYFUS MIDCAP INDEX FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
Benefiting from a stock market that set repeated new records until a
pullback in recent weeks, the Dreyfus MidCap Index Fund registered a total
return of 13.48% for the six-month fiscal period ended April 30, 1996.*
This compares with a total return of 13.89% for the Standard & Poor's
MidCap 400 Index, which the Fund is designed to mirror.** The difference in
performance is accounted for by transaction charges and other costs of
operating the Fund.
Large capital stocks such as those listed in the Dow Jones Industrial
Average outperformed the broader market during the six months - the Dow Jones
Industrial Average rose 18.46%.*** However, the gains by midcap stocks were
quite rewarding. In our experience, the Blue Chips in the Dow Jones
Industrial Average are generally more volatile, both on the upside and the
downside, than the less spectacular midcaps.
During the months under review, the U.S. economy continued to expand at a
pace that, until recently, did not raise fears of inflation. The stock
market, while frequently very volatile, reflected these underlying currents.
ECONOMIC REVIEW
Several key U.S. economic indicators have rebounded in recent months,
implying that the economic slowdown that began in early 1995 may be ending.
However, overall corporate profit growth is slowing this year. The shift to
somewhat faster economic growth is promoting inflation fears and raising bond
yields. Higher bond yields have caused the yield curve to steepen, a
condition that usually favors continued economic growth. Hence, although this
is the sixth expansion year for this business cycle, we believe that it will
prove a long cycle.
The U.S. economy grew only 2.1% in 1995, and sequential economic shocks
since September threatened to keep it slow in 1996 too. But the underlying
trend of the economy proved resilient and real Gross Domestic Product
rebounded 2.8% in the first quarter. In recent months, steady job creation
has supported faster growth in real consumer incomes and spending. Home sales
are at high levels, and capital spending remains robust. Moreover,
inventories are now quite lean. Lean inventories when demand is rising typical
ly stimulate a period of somewhat faster economic growth, though this may not
translate into continued fast growth of profits.
An imbalance caused by rising demand and low inventories has begun to
affect reported inflation. This symptom is currently most pronounced in the
oil sector, but the strength in overall consumer demand is reigniting fears
of yet higher future inflation. Thus bond yields have risen substantially
since January. By contrast, short-term market rates have risen only
marginally, held stable by the steadiness of the Federal Funds rate.
Surviving the midcycle growth slowdown that prevailed in 1995 raises the
odds that economic expansion can be sustained. A key concern going forward is
whether faster growth will reignite inflation. Higher inflation, if it
occurs, would justify a tighter monetary policy by the Federal Reserve Board.
THE MARKETS
The U.S. equity market benefited from one of its most vigorous price
increases during the early months of this year. One of the underlying
reasons, in addition to economic growth, was a decision by the
Federal Reserve Board to take no action in February to change short-term
interest rates. As winter turned into spring, however, the market's own
forces brought about a tightening of long-term rates. Several times in March
and April, the prospect of higher borrowing costs jolted the stock averages.
Nonetheless, by the time your Fund's latest fiscal period ended on April 30,
1996, the major market indexes were all solidly ahead of last year's level.
As shown by the flood of money going into mutual funds, investors appear
to have a voracious appetite for owning stocks. Saving for retirement has
become a national preoccupation, as evidenced by the growth of 401(k) and
other retirement plans. Stock market valuations have, of course, benefited
from this trend. However, if interest rates rise high enough, the attraction
of equities could diminish. The coming months will tell whether this is a
likely possibility.
Sincerely,
[Steven A. Falci, CFA signature logo]
Steven A. Falci, CFA
Portfolio Manager
May 10, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC.-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. The Fund holds stocks
generally in the same proportion as each stock within the Index itself.
Therefore, the Fund's performance should closely match that of the Index.
"Standard & Poor'sRegistration Mark" "S&P,Registration Mark" "Standard &
Poor's MidCap 400 IndexRegistration Mark" and "S&P 400,Registration Mark" are
trademarks of Standard & Poor's, a division of The McGraw-Hill Companies,
Inc. and have been licensed for use by Dreyfus MidCap Index Fund. The Fund is
not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard &
Poor's makes no representation regarding the advisability of investing in the
Product.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC.
<TABLE>
<CAPTION>
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
SHARES COMMON STOCKS-88.5% VALUE
___________ __________
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
<S> <C> <C>
BASIC INDUSTRIES-7.3%
12,700 Albemarle...........................$296,863
6,104 Betz Laboratories....................272,392
8,710 Bowater..............................348,401
16,200 Cabot................................433,351
8,989 Calgon Carbon........................112,363
5,133 CalMat................................89,186
5,291 Chesapeake ..........................152,778
21,033 Clayton Homes........................389,111
9,921 Consolidated Papers..................543,175
10,676 Crompton & Knowles...................164,144
5,443 Dexter...............................146,281
26,300 Ethyl................................272,863
6,053 Ferro................................167,971
3,142 Fuller (H.B.)........................102,901
7,451 GenCorp...............................99,658
8,379 Georgia Gulf.........................307,928
9,700 Glatfelter (P.H.)....................161,262
3,750 Granite Construction.................74,062
7,868 Hanna (M.A.).........................271,446
20,322 IMC Global...........................749,373
5,621 (a)Jacobs Engineering Group.............155,982
10,046 Lawter International.................109,250
7,018 Loctite..............................354,409
11,536 Longview Fibre.......................203,322
13,988 Lubrizol.............................405,652
17,738 Lyondell Petrochem...................521,053
16,700 Manpower.............................617,900
5,000 Minerals Technologies................192,500
1,717 NCH...................................99,586
5,470 Olin.................................484,095
16,711 RPM..................................256,931
6,600 Rayonier.............................236,775
8,325 Schulman (A.)........................181,068
9,412 (a)Sealed Air...........................332,949
20,230 Sonoco Products......................574,026
3,841 Southdown.............................90,263
12,383 (a)Sterling Chemicals...................140,856
7,800 Vulcan Materials.....................448,500
8,213 Wausau Paper Mills...................188,899
7,461 Wellman..............................179,064
12,516 Witco................................427,108
_____________
11,355,697
_____________
CAPITAL GOODS-24.7%
14,256.................... (a)ADC Telecommunications...............598,753
7,322 AMETEK...............................140,949
16,209 Adobe Systems........................696,988
7,100 (a)Air & Water Technologies,
Cl. A ............................39,938
2,987 (a)Alaska Air Group......................75,796
6,761 Albany International, Cl. A..........145,362
9,652 (a)Altera...............................509,144
CAPITAL GOODS (CONTINUED)
19,100 (a)America Online...................$ 1,222,401
20,700 (a)American Power Conversion............258,751
7,400 American Water Works.................281,201
25,820 (a)Analog Devices.......................664,866
1,932 Angelica..............................41,297
6,112 (a)Applied Bioscience
International 54,627
11,231 (a)Arrow Electronics....................562,954
9,882 (a)AST Research..........................74,116
21,600 (a)Atmel................................864,001
9,604 Avnet................................506,612
11,110 (a)BMC Software.........................676,322
6,611 (a)Borland International................108,256
11,937 (a)Cadence Design System................623,709
10,410 Cintas...............................559,538
14,128 (a)Cirrus Logic.........................294,923
11,259 Comdisco.............................277,253
9,300 (a)Compuware............................265,051
10,536 Comsat...............................321,349
18,618 (a)Cypress Semiconductor................262,979
13,002 Danaher..............................511,954
20,674 (a)Dell Computer........................948,419
10,134 Diebold..............................390,159
5,604 Donaldson............................147,105
5,415 Duriron..............................142,143
11,700 (a)Electronic Arts......................312,975
34,810 Equifax..............................852,845
4,884 (a)Exabyte...............................85,470
10,013 Federal Signal.......................261,589
10,000 (a)Fiserv...............................305,000
6,888 Flightsafety International...........381,423
4,694 Goulds Pumps.........................109,135
5,573 Harsco...............................383,840
7,630 (a)HealthCare COMPARE...................359,563
7,340 Hubbell..............................474,347
6,109 (a)Information Resources.................87,816
32,800 (a)Informix.............................865,100
17,200 (a)Intergrated Device
Technology........................255,850
8,996 Kansas City Southern
Industries.........................436,306
3,644 Kaydon...............................144,849
8,485 Kelly Services, Cl. A................265,156
5,900 Kennametal...........................223,462
7,879 Keystone International...............172,353
2,493 Lawson Products......................56,715
16,540 Linear Technology....................568,562
10,300 (a)Litton Industries....................467,362
5,526 (a)MagneTek..............................58,023
13,983 Mark IV Industries...................290,147
13,400 (a)Maxim Integrated Products............458,950
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
CAPITAL GOODS (CONTINUED)
3,555 Measurex............................$103,095
11,300 (a)Medaphis.............................521,212
13,709 (a)Mentor Graphics......................219,344
6,620 Modine Manufacturing.................180,395
22,313 Molex................................725,172
3,968 Nordson..............................240,064
5,440 (a)Octel Communications.................243,440
14,250 Olsten...............................432,843
16,698 Omnicom Group........................724,275
3,840 PHH..................................218,400
28,068 (a)Parametric Technology...........1,129,737
10,112 Paychex..............................685,088
8,240 Pentair..............................224,540
9,200 Pittston Brinks......................256,450
4,277 (a)Policy Management Systems............201,019
4,523 Precision Castparts..................196,185
11,753 (a)Quantum..............................249,751
4,749 (a)Rohr Industries.......................86,669
8,005 Rollins..............................180,112
13,400 (a)Rollins Environmental Services........35,175
22,846 (a)Seagate Technology.................1,325,068
16,421 Sensormatic Electronics..............334,577
2,236 (a)Sequa, Cl. A..........................78,539
7,382 (a)Sequent Computer Systems.............107,961
11,100 (a)Solectron............................493,950
12,418 Sotheby's Holdings, Cl. A............175,404
7,326 Stewart & Stevenson Services.........215,201
11,813 (a)Storage Technology...................363,249
14,800 (a)StrataCom............................769,600
5,694 (a)Stratus Computer.....................160,143
6,766 (a)Structural Dynamics Research.........215,666
13,626 Sundstrand...........................500,755
11,876 (a)Symantec.............................191,500
5,716 (a)Symbol Technologies..................264,365
4,900 Tecumseh Products, Cl. A.............276,850
3,900 Teleflex.............................180,862
18,344 (a)Teradyne.............................376,052
19,195 Thermo Electron....................1,182,891
4,071 Thiokol..............................174,035
9,251 Trinity Industries...................322,628
9,400 (a)U.S. Robotics......................1,471,100
6,938 Varian Associates....................396,333
5,203 (a)VeriFone.............................218,526
13,000 (a)Vishay Intertechnology...............390,000
6,582 Watts Industries, Cl. A..............134,931
15,766 (a)Xilinx...............................581,371
9,350 York International...................448,800
_____________
38,347,077
_____________
CONSUMER CYCLICAL-13.6%
5,100 (a)Ann Taylor Stores.....................87,338
4,968 Arvin Industries.....................111,781
6,786 Banta................................166,258
CONSUMER CYCLICAL (CONTINUED)
7,700 (a)Bed Bath & Beyond..............$ 454,782
8,532 Belo (A.H.), Cl. A...................317,818
9,500 (a)Best Buy.............................182,876
9,444 Bob Evans Farms......................148,744
16,971 (a)Brinker International................296,993
6,900 (a)Buffets...............................95,738
13,900 (a)Burlington Industries................161,588
15,200 Callaway Golf........................406,601
3,316 Carlisle Companies...................154,195
6,659 (a)Chris-Craft Industries...............284,673
22,873 (a)Circus Circus Enterprises............840,583
7,035 Claire's Stores......................153,012
10,950 CML Group.............................49,276
13,325 Cracker Barrel Old Country Store.....314,804
3,700 Cross (A.T.), Cl. A...................55,500
16,772 Dollar General.......................442,374
6,012 Duty Free International...............80,410
3,661 Ennis Business Forms..................39,355
12,590 Family Dollar Stores.................191,997
8,400 Fastenal.............................321,300
7,817 Federal-Mogul........................148,523
10,200 Fingerhut............................130,050
5,900 (a)Fred Meyer...........................169,625
3,424 (a)Gibson Greetings......................48,364
22,600 (a)HFS................................1,161,075
4,819 Hancock Fabrics.......................53,009
9,400 Hannaford Brothers...................263,200
17,112 Harley-Davidson......................755,067
10,770 Heilig-Meyers........................222,131
20,140 (a)Home Shopping Network................236,645
6,761 HON Industries.......................175,786
3,103 Houghton Mifflin.....................143,901
7,684 Intelligent Electronics...............48,985
27,876 International Game
Technology........................432,078
5,083 (a)International Dairy Queen,
Cl. A............................107,378
5,800 (a)Jones Apparel Group..................297,975
16,400 (a)Kohl's...............................563,750
7,448 (a)Lands' End...........................147,098
10,500 Lee Enterprises......................231,000
18,696 Leggett & Platt......................481,422
8,300 (a)Lone Star Steakhouse/Saloon..........343,412
5,645 (a)MacFrugals Bargains Closeouts.........75,501
5,900 Media General, Cl. A.................227,150
7,500 (a)Micro Warehouse......................322,500
5,565 Miller (Herman)......................170,428
20,525 (a)Mirage Resorts.....................1,074,996
1,504 National Presto Industries............59,032
7,800 (a)Nine West Group......................334,425
4,588 OEA..................................180,079
34,468 (a)Office Depot.........................771,221
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
CONSUMER CYCLICAL (CONTINUED)
10,000 (a)Outback Steakhouse.............$ 401,250
11,442 Promus Hotel.........................324,666
9,076 Reynolds & Reynolds, Cl. A...........419,765
10,300 Ruddick..............................136,475
4,500 Sbarro...............................118,125
3,500 (a)Scholastic...........................229,250
22,144 (a)Service Merchandise..................105,184
30,132 Shaw Industries......................372,883
6,407 Standard Register....................163,378
34,893 (a)Staples..............................662,967
6,500 Superior Industries
International.....................177,937
5,448 TCA Cable TV.........................159,354
3,519 Tiffany & Co.........................229,614
10,473 (a)Topps.................................60,219
14,337 Unifi................................385,306
9,200 (a)Viking Office Products...............546,250
9,715 (a)Vons.................................310,880
7,307 (a)Waban................................179,021
5,007 Wallace Computer Services............296,038
11,500 Warnaco Group, Cl. A.................301,875
2,469 Washington Post, Cl. B...............725,886
4,697 (a)Western Publishing Group..............61,648
_____________
21,101,773
_____________
CONSUMER STAPLES-3.8%
3,115 CPI...................................54,124
4,388 Church & Dwight.......................96,537
27,836 Coca-Cola Enterprises................821,163
8,877 Dean Foods...........................207,499
13,243 Dole Food............................529,721
2,714 Dreyer's Grand Ice Cream..............94,312
9,216 First Brands.........................244,224
12,817 Flowers Industries...................171,427
21,000 IBP..................................561,750
3,977 International Multifoods..............75,065
6,633 Lancaster Colony.....................223,863
6,745 Lance................................106,655
18,036 McCormick & Co.......................401,301
4,271 Michael Foods.........................46,447
14,900 (a)Revco D.S............................352,012
5,781 Savannah Foods & Industries...........62,868
6,520 Smucker (J.M.), Cl. A................137,735
3,978 Stanhome.............................117,351
8,191 Tambrands............................392,144
32,144 Tyson Foods, Cl. A...................799,582
7,766 Universal............................186,384
5,764 Universal Foods......................197,417
_____________
5,879,581
_____________
ENERGY-5.8%
12,262 AGL Resources........................231,446
13,081 Anadarko Petroleum...................761,969
ENERGY (CONTINUED)
17,136 Apache.............................$ 496,945
6,185 (a)BJ Services..........................237,349
10,894 Brooklyn Union Gas...................285,968
6,448 Diamond Shamrock.....................218,427
7,900 El Paso Natural Gas..................292,301
13,500 (a)ENSCO International..................405,001
37,000 (a)Global Marine........................420,876
4,994 Indiana Energy.......................119,232
6,530 MAPCO................................380,372
14,780 MCN..................................363,957
9,982 Murphy Oil...........................445,446
18,700 (a)Nabors Industries....................287,512
8,337 National Fuel Gas....................292,837
11,077 Noble Affiliates.....................389,079
7,800 Parker & Parsley Petroleum...........192,075
12,237 (a)Parker Drilling.......................93,307
7,286 Quaker State.........................114,754
9,048 Questar..............................316,680
21,882 Ranger Oil...........................164,115
8,020 (a)Seagull Energy.......................195,487
8,810 (a)Smith International..................262,097
13,905 Tidewater............................590,962
8,223 Tosco................................439,930
9,676 Valero Energy........................279,394
6,765 (a)Varco International..................112,468
9,560 Washington Gas Light.................200,760
11,341 (a)Weatherford International............399,770
_____________
8,990,516
_____________
HEALTH CARE-8.5%
6,195......... (a)Acuson...............................117,706
2,834 (a)Advanced Technology
Laboratories........................92,106
11,000 (a)Apria Healthcare Group...............374,001
6,412 Beckman Instruments..................237,245
8,831 Bergen Brunswig, Cl. A...............240,645
7,926 (a)Biogen...............................522,126
10,828 Cardinal Health......................679,458
10,251 Carter-Wallace.......................161,454
13,697 (a)Centocor.............................547,881
9,220 (a)Chiron...............................888,577
8,960 (a)Coram Healthcare......................45,920
3,619 (a)Datascope.............................63,784
6,000 DENTSPLY International...............250,500
2,971 Diagnostic Products..................124,410
8,954 (a)FHP International....................264,143
10,100 (a)Forest Laboratories, Cl. A...........465,862
12,800 (a)Foundation Health....................500,800
6,479 (a)Genzyme..............................364,443
33,639 (a)HEALTHSOUTH........................1,248,847
6,800 (a)Health Care & Retirement 250,750
14,100 (a)Healthsource.........................481,162
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
HEALTH CARE (CONTINUED)
11,515 (a)Horizon/CMS Healthcare.............$ 152,573
26,450 IVAX.................................770,356
27,332 (a)Laboratory Corporation of
America Holdings.................232,322
9,900 McKesson.............................471,487
26,498 Mylan Laboratories...................516,711
6,315 (a)Nellcor..............................309,435
14,548 (a)NovaCare.............................105,473
6,861 (a)PacifiCare Health Systems, Cl. A. 575,466
16,900 (a)Perrigo..............................211,250
5,200 (a)Scherer (R.P.).......................205,400
10,775 Stryker..............................521,240
11,838 (a)Value Health.........................344,781
16,000 (a)Vencor...............................540,000
8,000 (a)Watson Pharmaceutical................380,000
_____________
13,258,314
_____________
INTEREST SENSITIVE-11.0%
31,534 AFLAC................................977,555
13,159 American Financial...................402,995
9,185 Bancorp Hawaii.......................332,957
25,957 Bear Stearns Companies...............652,169
8,859 Central Fidelity Banks...............305,636
10,157 City National........................143,468
9,545 Crestar Financial....................538,099
6,854 Dauphin Deposit......................197,053
14,083 Edwards (A.G.).......................330,951
14,010 First of America Bank................633,953
16,659 First Security.......................420,639
14,872 First Tennessee National.............490,776
7,506 First Virginia Banks.................301,178
16,300 Firstar..............................757,950
17,808 Franklin Resources.................1,019,508
4,496 Hartford Steam Boiler
Inspection & Insurance............216,932
27,500 Hibernia, Cl. A......................281,875
20,891 Marshall & Ilsley....................564,057
14,131 Mercantile Bancorporation............628,829
10,434 Mercantile Bankshares................267,371
12,524 Northern Trust.......................704,475
21,600 Paine Webber Group...................450,900
15,987 Progressive..........................745,393
10,064 Provident Life & Accident
Insurance Co. of America..........340,918
13,714 Regions Financial....................632,558
38,748 Schwab (Charles).....................949,326
20,695 SouthTrust...........................561,351
18,342 State Street Boston..................914,807
19,842 Summit Bancorp.......................704,391
12,100 SunAmerica...........................659,450
6,400 T. Rowe Price Associates.............356,800
INTEREST SENSITIVE (CONTINUED)
5,125 Transatlantic Holdings.............$ 335,687
7,800 Wilmington Trust.....................246,675
_____________
17,066,682
_____________
MINING AND METALS-.9%
14,936 Allegheny Ludlum.....................294,987
9,900 (a)Alumax...............................331,651
18,015 Battle Mountain Gold.................159,883
3,629 Brush Wellman.........................68,043
3,644 Carpenter Technology.................137,105
2,668 Cleveland-Cliffs.....................111,389
3,128 Lukens................................82,501
1,800 (a)MAXXAM................................81,900
4,268 Oregon Steel Mills....................67,754
_____________
1,335,213
_____________
TRANSPORTATION-1.1%
4,669 Airborne Freight.....................123,145
10,157 Alexander & Baldwin..................248,847
6,312 American President Companies.........150,699
5,900 Arnold Industries.....................95,875
7,280 Atlantic Southeast Airlines..........182,000
4,473 GATX.................................201,285
13,711 Illinois Central, Ser. A.............411,330
8,600 Hunt (J.B.) Transport................175,225
8,070 Overseas Shipholding Group...........162,408
_____________
1,750,814
_____________
UTILITIES-11.8%
16,696 (a)AES..................................379,835
26,722 Allegheny Power System...............781,619
11,654 Atlantic Energy......................189,378
3,095 Black Hills...........................77,376
11,100 (a)Calenergy............................288,601
5,020 Central Louisiana Electric...........128,638
7,215 Central Maine Power..................102,814
13,058 Century Telephone
Enterprises......................427,649
20,245 CMS Energy...........................589,636
13,434 Delmarva Power & Light...............263,643
21,316 Florida Progress.....................703,429
35,222 Frontier...........................1,113,896
6,529 Hawaiian Electric Industries.........225,251
8,383 Idaho Power..........................243,108
16,776 Illinova.............................427,789
12,651 IPALCO Enterprises...................319,437
13,780 Kansas City Power & Light............361,725
14,614 LG&E Energy..........................308,720
8,168 Lincoln Telecommunications...........138,856
22,333 MidAmerican Energy...................382,452
6,937 Minnesota Power & Light..............185,564
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
SHARES COMMON STOCKS (CONTINUED) VALUE
___________ __________
CONVERTIBLE PREFERRED
SHARES STOCKS-0.0% VALUE
___________ __________
UTILITIES (CONTINUED)
12,115 Montana Power..................$ 268,044
10,411 Nevada Power.........................208,220
14,416 New England Electric System..........508,164
15,888 New York State Electric & Gas........363,438
49,700 (a)NEXTEL Communications,
Cl. A ............................900,812
13,848 NIPSCO Industries....................496,797
30,060 Northeast Utilities..................477,202
8,973 Oklahoma Gas & Electric..............338,730
19,436 Pinnacle West Capital................517,483
11,257 Portland General.....................330,674
26,283 Potomac Electric Power...............653,789
14,181 Public Service Co. of Colorado.......469,745
9,294 Public Service Co. of
New Mexico.........................162,645
14,090 Puget Sound Power & Light............334,637
22,964 SCANA................................588,452
14,483 Southern New England
Telecommunications...............644,493
9,082 Southwestern Public Service..........289,488
25,918 TECO Energy..........................602,593
12,900 Telephone & Data Systems.............599,850
25,800 360 Communications...................606,301
10,200 UtiliCorp United.....................286,875
9,157 (a)Vanguard Cellular Systems,
Cl. A ...........................196,875
6,879 WPL Holdings.........................204,650
24,487 Wisconsin Energy.....................651,966
_____________
18,341,339
_____________
TOTAL COMMON STOCKS
(cost $109,789,605)..........$137,427,006
=============
FINANCIAL;
Everen, Ser. A, 131/2%
7 (a,b).... (cost $141) $ 190
=============
PRINCIPAL SHORT TERM INVESTMENTS-11.7%
AMOUNT U.S. GOVERNMENT AGENCY-11.3%
________
Federal Home Loan Mortgage,
5.30%, 5/1/1996.............$ 17,600,000
_____________
U.S. TREASURY BILLS-.4%
200,000(c) 4.98%, 5/2/1996...................199,972
257,000(c) 5.26%, 5/9/1996...................256,728
101,000(c) 5%, 7/5/1996......................100,093
_____________
556,793
_____________
TOTAL SHORT-TERM
INVESTMENTS
(cost $18,156,760)...........$ 18,156,793
=============
TOTAL INVESTMENTS
(cost $127,946,506)...........................................100.2% $155,583,989
===== ============
LIABILITIES, LESS CASH
AND RECEIVABLES................................................(.2%) $ (257,413)
===== ============
NET ASSETS........................................................100.0% $155,326,576
===== ============
$17,600,000
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Convertible into Everen Capital Sub. Deb., 131/2%, 9/15/2007.
(c) Held by the custodian in a segregated account as collateral for open
financial futures positions.
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
STATEMENT OF FINANCIAL FUTURES APRIL 30, 1996 (UNAUDITED)
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES PURCHASED; CONTRACTS BY CONTRACTS EXPIRATION AT 4/30/96
____________________________ ______ _______ _______ _______
Standard & Poor's MidCap 400...................................152 $18,061,400 June `96 $505,375
==========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $127,946,506)-see statement................................ $155,583,989
Cash............................................................... 111,411
Dividends receivable............................................... 124,092
Receivable for investment securities sold.......................... 46,378
Prepaid expenses................................................... 10,243
_____________
155,876,113
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries.................... $ 117,126
Payable for investment securities purchased........................ 237,786
Payable for futures variation margin-Note 3(a)..................... 60,375
Payable for Common Stock redeemed.................................. 58,247
Accrued expenses................................................... 76,003 549,537
_________ _____________
NET ASSETS............................................................. $155,326,576
=============
REPRESENTED BY:
Paid-in capital.................................................... $121,840,445
Accumulated undistributed investment income-net 578,253
Accumulated undistributed net realized gain on investments......... 4,765,020
Accumulated net unrealized appreciation on investments (including $505,375
net unrealized appreciation on financial futures)-Note 3(b)...... 28,142,858
_____________
NET ASSETS at value applicable to 7,488,900 outstanding shares of
Common Stock, equivalent to $20.74 per share
(200 million shares of $.001 par value authorized)................. $155,326,576
=============
See independent accountants' review report and notes to financial statements.
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $263 foreign taxes withheld at source).............. $1,056,217
Interest................................................................... 296,748
__________
TOTAL INCOME........................................................... $ 1,352,965
EXPENSES:
Management fee-Note 2(a)................................................... 265,920
Shareholder servicing costs-Note 2(b)...................................... 94,365
Auditing fees.............................................................. 19,031
Legal fees................................................................. 13,910
Directors' fees and expenses-Note 2(c)..................................... 13,416
Registration fees.......................................................... 11,499
Prospectus and shareholders' reports....................................... 10,488
Miscellaneous.............................................................. 10,804
__________
TOTAL EXPENSES......................................................... 439,433
Less-reduction in management fee and administration fee from
Dreyfus due to undertakings and redemption fee-Note 2(a)............... 103,088
__________
NET EXPENSES........................................................... 336,345
___________
INVESTMENT INCOME-NET.................................................. 1,016,620
___________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3(a)................................... $4,893,170
Net realized (loss) on financial futures-Note 3(a);
Long transactions.......................................................... (45,229)
__________
NET REALIZED GAIN.......................................................... 4,847,941
Net unrealized appreciation on investments (including $927,060
net unrealized appreciation on financial futures).......................... 11,421,928
___________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS........................ 16,269,869
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. $17,286,489
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1996
1995 (UNAUDITED)
___ ___
<S> <C> <C>
OPERATIONS:
Investment income-net........................................................$ 1,764,765 $ 1,016,620
Net realized gain on investments............................................. 5,648,773 4,847,941
Net unrealized appreciation on investments for the period.................... 11,878,944 11,421,928
_____________ _____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... 19,292,482 17,286,489
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net........................................................ (1,274,372) (1,926,245)
Net realized gain on investments............................................. (3,413,496) (5,586,112)
_____________ _____________
TOTAL DIVIDENDS............................................................ (4,687,868) (7,512,357)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold................................................ 44,222,299 29,560,041
Dividends reinvested......................................................... 4,181,647 6,623,156
Cost of shares redeemed...................................................... (15,431,258) (13,612,408)
_____________ _____________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..................... 32,972,688 22,570,789
_____________ _____________
TOTAL INCREASE IN NET ASSETS........................................... 47,577,302 32,344,921
NET ASSETS:
Beginning of period.......................................................... 75,404,353 122,981,655
_____________ _____________
End of period (including undistributed investment income-net:
$1,487,878 in 1995 and $578,253 in 1996)................................... $122,981,655 $155,326,576
============= =============
SHARES SHARES
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................................. 2,528,662 1,493,304
Shares issued for dividends reinvested....................................... 270,132 350,989
Shares redeemed.............................................................. (859,974) (693,373)
_____________ _____________
NET INCREASE IN SHARES OUTSTANDING......................................... 1,938,820 1,150,920
============= =============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Common Stock outstanding, total investment return,
ratios to average net assets and other supplemental data for each period
indicated. This information has been derived from the Fund's financial
statements.
SIX MONTHS ENDED
YEAR ENDED OCTOBER 31, APRIL 30, 1996
____________________________________________________________
PER SHARE DATA: 1991(1) 1992 1993 1994 1995 (UNAUDITED)
____ ____ ____ ____ ____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period............... $12.50 $13.69 $15.02 $17.63 $17.14 $19.40
______ ______ ______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net..... .11 .17 .30 .26 .29 .14
Net realized and unrealized gain
on investments.......... 1.08 1.29 2.83 .08 3.00 2.37
______ ______ ______ ______ ______ ______
TOTAL FROM INVESTMENT
OPERATIONS.......... 1.19 1.46 3.13 .34 3.29 2.51
______ ______ ______ ______ ______ ______
DISTRIBUTIONS:
Dividends from investment
income-net.............. - (.08) (.27) (.27) (.28) (.30)
Dividends from net realized
gain on investments..... - (.05) (.25) (.56) (.75) (.87)
______ ______ ______ ______ ______ ______
TOTAL DISTRIBUTIONS..... - (.13) (.52) (.83) (1.03) (1.17)
______ ______ ______ ______ ______ ______
Net asset value, end of period $13.69 $15.02 $17.63 $17.14 $19.40 $20.74
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN....... 9.52%(2) 10.69% 21.22% 1.89% 20.78% 13.48%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets.............. - - .09% .40% .50% .25%(2)
Ratio of net investment income
to average net assets... .87%(2) 2.22% 1.97% 1.68% 1.80% .75%(2)
Decrease reflected in above expense
ratios due to undertakings by
World and Dreyfus....... 1.19%(2) 1.17% .77% .43% .35% .08%(2)
Portfolio Turnover Rate... 2.18%(2) 16.31% 16.80% 19.81% 20.46% 10.40%(2)
Average commission rate paid(3) - - - - - $.0383
Net Assets, end of period
(000's Omitted)......... $5,436 $45,989 $65,690 $75,404 $122,982 $155,327
____________________
(1) From June 19, 1991 (commencement of operations) to October 31, 1991.
(2) Not annualized.
(3) For fiscal years beginning on or after November 1, 1995, the Fund is
required to disclose its average commission rate paid
per share for purchases and sales of investment securities.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus MidCap Index Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company. The Fund's investment objective is to provide
investment results that correspond to the price and yield performance of
publicly-traded common stocks of medium-size domestic companies in the
aggregate, as represented by the Standard & Poor's MidCap 400 Index.
Effective November 13, 1995, The Dreyfus Corporation ("Dreyfus") serves as
the Fund's Manager and Mellon Equity Associates ("Mellon Equity"), an
affiliate of Dreyfus, serves as the Fund's index manager. Boston Safe Deposit
and Trust Company, an affiliate of Dreyfus, became the Fund's custodian.
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 to the public without a sales charge.
Effective November 13, 1995, the Fund changed its name from
"Peoples S&P MidCap Index Fund, Inc." to "Dreyfus MidCap Index Fund."
Prior to November 13, 1995, World Asset Management, Inc. ("World")
served as the Fund's index manager. In addition, Comerica Bank served 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.
(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 distributio
n 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.
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-MANAGEMENT FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH AFFILIAT
ES:
(A) Effective November 13, 1995, pursuant to the provisions of a
Management Agreement with Dreyfus, the management fee is computed at the
annual rate of .395 of 1% of the value of the Fund's average daily net
assets, and is payable monthly. Dreyfus has agreed to pay Mellon Equity, an
affiliate of Dreyfus, a fee of .095 of 1% of the value of the Fund's average
daily net assets. The agreements further provide that if the aggregate
expenses of the Fund, exclusive of taxes, brokerage, interest on borrowings
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
Dreyfus, and Dreyfus may deduct from the fees paid to Mellon Equity or
Dreyfus and Mellon Equity will bear, such excess expense in proportion to
their management fee and index fee respectively. 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 21/2% of the first $30 million, 2% of the
next $70 million and 11/2% of the excess over $100 million of the average
value of the Fund's net assets in accordance with California "blue sky"
regulations. However, Dreyfus has undertaken from November 1, 1995 through
October 31, 1996, to reduce the management 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 value of the Fund's average daily net
assets.
Prior to November 13, 1995, the Fund had an Index Management
Agreement with World and an Administration Agreement with Dreyfus whereby,
World and Dreyfus received annual fees of .10 of 1 % and .30% of 1%,
respectively, of the value of the Fund's average daily net assets.
For the six months ended April 30, 1996, pursuant to the
undertakings, Dreyfus waived $103,088 of its management fee. In addition,
Mellon Equity has agreed to pay Boston Safe Deposit and Trust Company for
custodian services provided to the Fund. During the six months ended April
30, 1996, the Fund earned $889 in redemption fees.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus,
an amount not to exceed an annual rate of .25 of 1% of the value of the
Fund's average daily net assets for 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 providing reports
and other information, and services related to the maintenance of shareholder
accounts. During the six months ended April 30, 1996, the Fund was charged an
aggregate of $62,841 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer,
Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services to
the Fund. Such compensation amounted to $2,079 for the period from December
1, 1995 through April 30, 1996.
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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, excluding short-term securities, for the six months ended April
30, 1996 amounted to $23,895,292 and $13,045,234, 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 received or
made 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 April 30,
1996 and their related unrealized market appreciation are set forth in the
Statement of Financial Futures.
(B) At April 30, 1996, accumulated net unrealized appreciation on
investments was $28,142,858, consisting of $32,800,947 gross unrealized
appreciation and $4,658,089 gross unrealized depreciation.
At April 30, 1996, 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).
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MIDCAP INDEX FUND
We have reviewed the accompanying statement of assets and
liabilities of Dreyfus MidCap Index Fund, including the statements of
investments and financial futures, as of April 30, 1996, and the related
statements of operations and changes in net assets and financial highlights
for the six month period ended April 30, 1996. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications
that should be made to the interim financial statements and financial
highlights referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
October 31, 1995 and financial highlights for each of the five years in the
period ended October 31, 1995 and in our report dated December 7, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
June 10, 1996
DREYFUS MIDCAP INDEX FUND
(FORMERLY PEOPLES S&P MIDCAP INDEX FUND, INC.)
IMPORT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates $.705 per share
as a long-term capital gain distribution of the $1.17 per share paid on
December 28, 1995.
[Dreyfus lion "d" logo]
DREYFUS MIDCAP INDEX FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
INDEX FUND MANAGER
Mellon Equity Associates
500 Grant Street
Pittsburgh, PA 15258
CUSTODIAN
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02109
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 113SA964
[Dreyfus logo]
MidCap Index
Fund
Semi-Annual
Report
April 30, 1996
