<PAGE>
Dreyfus
MidCap Index
Fund
Annual Report
October 31, 1997
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus MidCap
Index Fund for the 12-month period ended October 31, 1997. In spite of stock
market weakness in late October, the Dreyfus MidCap Index Fund achieved
exceptional returns for its latest fiscal year. Over this period, your Fund
produced a total return of 32.02%,* which compares with a total return of
32.67% for the Standard & Poor's MidCap 400 Index over the same period.** The
difference is accounted for by transaction fees and other Fund expenses.
ECONOMIC REVIEW
The U.S. economy has registered a step-up in growth in 1997 and the evidence
coming in suggests that momentum is still building. Stronger growth this year
has helped keep corporate profits buoyant despite a substantially tighter labor
market. This is because nationwide shortages of labor have so far not generated
much wage inflation. Moreover, price inflation has decelerated markedly during
the year, suppressed by the strong dollar, import competition and continued
disinflation in health care.
Although the Federal Reserve Board (the "Fed") has held a tightening bias
since mid-1996, the central bank has raised interest rates only once this year.
Expectations for further hikes have been continually postponed. They were first
dampened by the surprising drop in this year's price inflation, and more
recently by unfolding crises in foreign economies. Both events have helped to
cap short-term rates and to pull long-term interest rates lower since the
spring.
Real Gross Domestic Product growth accelerated to about 4% this year from 3%
in 1996. Virtually all economic sectors have been strong so far. Consumer
spending has been supported by rising real incomes. Capital spending has been
very robust and new orders imply continued strength. Even housing demand has
reached new highs. Most incoming signals support sustained fast growth. The
exception is that exporters' new orders have marginally slowed in recent months,
indicating that economic turmoil overseas may be impacting this sector. By
contrast, imports have been very robust and, if their growth is sustained,
could help mitigate the economic weakness abroad.
Overall corporate profits have continued to trend higher, although some
companies have been hurt by events overseas and the stronger dollar.
Domestically generated profits have typically remained solid, helped by strong
growth and contained wages.
MARKET OVERVIEW
Even though the equity markets stumbled badly in late October, the fiscal
year ended October 31, 1997 saw solid gains. For the same 12-month period, as
measured by price changes alone, excluding income, the Dow Jones Industrial
Average gained 23.58%, the Standard & Poor's 500 Composite Stock Price Index
29.96%, the Nasdaq Composite 30.43% and the Russell 2000 Index, 27.52%. These
were the gains after the drop of the last week in October, and before counting
the rebound that occurred in the first week of November.
In retrospect, it is apparent that stock valuations had been riding for a
fall. There was weakness in March when the Fed raised interest rates for the
first time in two years. By early summer, equity prices recovered and soared to
new highs. Then, however, some nervousness set in, related mainly to concern
about high stock valuations and fears of another Fed move to cool off the
bubbling economy. Weakness was apparent mainly in large companies with
capitalization, while smaller companies, such as those listed in the Russell
2000 Index, gained ground.
As autumn leaves began to turn, the stock market as a whole regained its
wind--but not for long. The relatively high valuations that had prevailed were
vulnerable to any major unpleasant surprise. That came in late October from an
unexpected source--the Far East. Severe market setbacks in Hong Kong and
Southeast Asia, together with drops in their foreign exchange rates, triggered
the fall in the U.S. market.
<PAGE>
Richard Hoey, Chief Economist for The Dreyfus Corporation, reviewing the
recent events, said that the U.S. stock market had a selling panic, followed by
a buying panic. The underlying logic of it all was valuation, he observed.
When the Dow Jones Index peaked at above 8200 in early August, the stock
market was simply discounting favorable U.S. fundamentals into high stock
prices, said Hoey. The financial crisis in Asia was the trigger for a
correction of the major problem for the U.S. stock market: high valuation.
The market drop in Asia was caused by serious fundamental problems of excess
productive capacity, overvalued real estate and a banking system crisis.
European markets, of course, reacted to the Asian weakness, but fell less
severely because their economies are more stable. In the U.S., the sharp price
drop, followed by a vigorous rebound, reflected an economy with much greater
underlying strength.
The influx of investors into stocks when prices dipped was a good augury for
the future. The American investing public appears to be convinced that
equities are a good place to put money for the long term, when their prices
are attractive, despite the recent volatility of the market averages.
PORTFOLIO FOCUS
As discussed above, the year ended October 31, 1997 was an excellent one for
U.S. equities. Large capitalization stocks, midcaps and small caps all provided
returns in excess of 30%. Large caps predominated for most of the year, but
small caps and midcaps rebounded strongly in the third quarter of 1997 to pull
even with large caps for this year.
It would be highly unusual if the year ahead matched or exceeded the 1997
record. Question marks are evident--the financial troubles in Asia, the threat
of eventual cost pressures in U.S. industry and the difficulties some companies
are encountering in maintaining profit levels. However, the past year was a
striking demonstration of the potential rewards of investments.
Sincerely,
/s/ Steven A. Falci
Steven A. Falci, CFA
Portfolio Manager
November 18, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC.--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. 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.
<PAGE>
Dreyfus MidCap Index Fund October 31, 1997
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS MIDCAP INDEX FUND WITH THE STANDARD & POOR'S MIDCAP 400
INDEX AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
$29,610
Standard & Poor's
MidCap 400
Index*
Dollars
$29,022
Standard & Poor's 500
Composite Stock Price
Index*
$27,850
Dreyfus MidCap
Index Fund
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
- --------------------------------------------------------------------------------
One Year Ended Five Years Ended From Inception (6/19/91)
October 31, 1997 October 31, 1997 to October 31, 1997
------------------ ---------------- -----------------------
32.02% 18.10% 17.44%
- ---------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus MidCap
Index Fund on 6/19/91 (Inception Date) to a $10,000 investment made on
that date in the Standard & Poor's MidCap 400 Index as well as to the
Standard & Poor's 500 Composite Stock Price Index which are described
below. For comparative purposes, the value of each Index on 6/30/91 is used
as the beginning value on 6/19/91. All dividends and capital gain
distributions are reinvested.
The Fund's performance 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. The 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 Financial Highlights section of the Prospectus
and elsewhere in this report.
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Investments October 31, 1997
Shares COMMON STOCKS--97.3% Value
--------- -------------
Basic Industries--7.0%
6,800 AK Steel Holding........... $ 286,450
17,600 Airgas..................... 273,900
14,000 Albemarle.................. 339,500
7,204 BetzDearborn............... 461,956
10,210 Bowater.................... 426,905
17,500 Cabot...................... 429,843
10,089 Calgon Carbon.............. 119,176
5,933 CalMat..................... 149,437
5,991 Chesapeake................. 189,839
29,916 Clayton Homes.............. 491,744
11,321 Consolidated Papers........ 587,984
18,576 Crompton & Knowles......... 469,044
11,300 Cytec Industries........... 550,875
5,843 Dexter..................... 229,337
21,100 Ethyl...................... 181,987
6,453 Ferro...................... 241,584
3,542 Fuller (H.B.).............. 167,359
10,251 GenCorp.................... 250,508
8,479 Georgia Gulf............... 254,370
10,700 Glatfelter (P.H.).......... 211,325
4,650 Granite Construction....... 98,231
12,902 Hanna (M.A.)............... 332,226
23,822 IMC Global................. 802,503
6,521(a) Jacobs Engineering Group... 176,067
11,546 Lawter International....... 129,170
13,036 Longview Fibre............. 206,946
14,588 Lubrizol................... 561,638
20,238 Lyondell Petrochemical..... 518,598
11,700 Martin Marietta Materials.. 408,037
5,700 Minerals Technologies...... 235,837
1,817 NCH........................ 121,739
12,640 Olin....................... 574,330
19,811 RPM........................ 371,456
7,300 Rayonier................... 318,918
9,225 Schulman (A.).............. 207,562
10,812(a) Sealed Air................. 557,493
24,130 Sonoco Products............ 776,684
6,241 Southdown.................. 345,595
11,700 Sybron International....... 469,462
17,000 Unisource Worldwide........ 277,312
8,600 Vulcan Materials........... 763,787
9,213 Wausau Paper Mills......... 185,987
7,861 Wellman.................... 159,676
14,516 Witco...................... 631,462
-------------
15,543,839
-------------
Capital Goods--24.4%
14,500 ACNielsen.................. 331,687
33,312 ADC Telecommunications..... 1,103,460
15,800 AGCO....................... 458,200
8,322 AMETEK..................... 196,087
Shares COMMON STOCKS (continued) Value
--------- -------------
Capital Goods (continued)
7,761 Albany International, Cl. A $ 189,174
22,404 Altera..................... 994,177
24,800(a) America Online............. 1,909,600
24,100(a) American Power Conversion.. 656,725
20,100 American Water Works....... 454,762
40,626(a) Analog Devices............. 1,241,632
24,762(a) Arrow Electronics.......... 702,621
25,200(a) Atmel...................... 652,050
10,704 Avnet...................... 673,683
25,720(a) BMC Software............... 1,552,845
25,705(a) Cadence Design System...... 1,368,791
12,310 Cintas..................... 889,397
16,828(a) Cirrus Logic............... 254,523
18,838 Comdisco................... 594,574
21,900(a) Compuware.................. 1,448,137
19,300 Corrections Corporation
of America............... 588,650
14,500 Covance.................... 256,468
22,518(a) Cypress Semiconductor...... 253,327
14,802 Danaher.................... 811,334
17,401 Diebold.................... 766,731
6,404 Donaldson.................. 324,202
14,700(a) Electronic Arts............ 497,962
5,684(a) Exabyte.................... 60,037
11,413 Federal Signal............. 276,051
13,200(a) Fiserv..................... 590,700
10,215 Flowserve.................. 303,896
10,600 GTECH Holdings............. 341,850
8,330(a) HealthCare COMPARE......... 447,737
16,980 Hubbell.................... 748,181
7,209 Information Resources...... 118,948
38,400(a) Informix................... 261,600
20,200(a) Intergrated Device Technology 233,562
8,388 Kaydon..................... 254,785
9,685 Kelly Services, Cl. A...... 343,817
6,600 Kennametal................. 320,100
2,793 Lawson Products............ 77,331
18,200 Lexmark International
Group, Cl. A............. 556,237
19,040 Linear Technology.......... 1,197,140
11,600(a) Litton Industries.......... 588,700
6,826(a) MagneTek................... 138,653
20,700 Manpower................... 794,362
16,107 Mark IV Industries......... 390,594
16,300(a) Maxim Integrated Products.. 1,079,875
18,400(a) Medaphis................... 111,550
16,409(a) Mentor Graphics............ 179,473
31,691 Molex...................... 1,188,412
25,900 NCR........................ 785,093
4,368 Nordson.................... 216,762
12,600 Ogden...................... 318,150
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -------------
Capital Goods (continued)
20,450 Olsten..................... $ 311,862
20,598 Omnicom Group.............. 1,454,733
27,402 Paychex.................... 1,044,701
9,640 Pentair.................... 372,345
10,400 Pittston Brinks Group...... 375,700
4,577(a) Policy Management Systems.. 280,341
6,123 Precision Castparts........ 360,108
15,800 Premark International...... 427,587
33,506(a) Quantum.................... 1,059,627
22,950 Robert Half International.. 939,515
6,349(a) Rohr....................... 192,454
8,505(a) Rollins.................... 181,794
15,100 SCI Systems................ 664,400
18,821 Sensormatic Electronics.... 281,138
2,536(a) Sequa, Cl. A............... 145,503
10,182(a) Sequent Computer Systems... 213,185
28,800(a) Solectron.................. 1,130,400
28,000 Solutia.................... 619,500
14,118 Sotheby's Holdings, Cl. A.. 264,712
22,711(a) Sterling Commerce.......... 753,721
8,426 Stewart & Stevenson Services 183,265
11,800 Stewart Enterprises........ 489,700
15,613(a) Storage Technology......... 916,287
5,894 Stratus Computer........... 208,500
8,366 Structural Dynamics Research 159,999
15,126 Sundstrand................. 822,476
21,600 SunGuard Data Systems...... 510,300
14,076 Symantec................... 307,912
9,974 Symbol Technologies........ 396,466
5,500 Tecumseh Products, Cl. A... 285,312
21,044(a) Teradyne................... 787,834
4,671 Thiokol.................... 427,688
10,951 Trinity Industries......... 490,057
20,300 U.S. Filter................ 814,537
11,420 UCAR International......... 428,250
51,200 USA Waste Service.......... 1,894,400
7,638 Varian Associates.......... 446,823
24,400 Viad....................... 445,300
16,247(a) Vishay Intertechnology..... 388,912
6,882 Watts Industries, Cl. A.... 174,661
18,666(a) Xilinx..................... 636,977
10,750 York International......... 490,468
-------------
53,873,845
-------------
Consumer Cyclical--14.5%
6,500 Ann Taylor Stores.......... 93,031
6,168 Arvin Industries........... 230,914
7,586 Banta...................... 198,184
16,800 Barnes & Noble............. 429,450
17,400(a) Bed Bath & Beyond.......... 552,450
15,632 Belo (A.H.), Cl. A......... 738,612
Shares COMMON STOCKS (continued) Value
--------- -------------
Consumer Cyclical (continued)
11,100(a) Best Buy................... $ 310,106
9,607 BJ's Wholesale Club........ 277,402
10,544 Bob Evans Farms............ 199,677
6,000 Borg-Warner Automotive..... 327,000
19,671(a) Brinker International...... 275,394
11,400(a) Buffets.................... 119,700
15,000(a) Burlington Industries...... 224,062
18,700 Callaway Golf.............. 603,075
7,632 Carlisle Cos............... 330,084
7,994(a) Chris-Craft Industries..... 413,189
24,073(a) Circus Circus Enterprises.. 535,624
12,152 Claire's Stores............ 268,863
23,100 CompUSA.................... 756,525
12,436 Comsat..................... 284,473
21,318 Consolidated Stores........ 850,055
15,425 Cracker Barrel Country Store 455,037
28,887 Dollar General............. 955,076
21,685 Family Dollar Stores....... 509,597
9,600 Fastenal................... 470,400
9,017 Federal-Mogul.............. 381,531
11,700 Fingerhut.................. 258,862
21,600 Meyer (Fred)............... 616,950
18,260 General Nutrition.......... 575,190
4,124 Gibson Greetings........... 101,553
7,561 HON Industries............. 390,336
10,700 Hannaford Brothers......... 404,593
38,424 Harley-Davidson............ 1,066,266
14,470 Heilig-Meyers.............. 193,536
7,606 Houghton Mifflin........... 270,013
29,276 International Game Technology 748,367
5,583 International Dairy Queen, Cl. A 147,949
13,200(a) Jones Apparel Group........ 671,550
19,700(a) Kohl's..................... 1,322,362
8,148(a) Lands' End................. 257,171
11,700 Lee Enterprises............ 310,781
24,196 Leggett & Platt............ 1,010,183
10,400(a) Lone Star Steakhouse/Saloon 240,500
6,145(a) Macfrugals Bargains Closeouts 208,930
6,700 Media General, Cl. A....... 273,025
15,800 Meritor Automotive......... 352,537
8,700(a) Micro Warehouse............ 130,500
11,630 Miller (Herman)............ 568,416
7,520 Modine Manufacturing....... 256,150
9,100(a) Nine West Group............ 321,343
5,188 OEA........................ 208,817
39,968 Office Depot............... 824,340
31,400(a) OfficeMax.................. 419,975
12,000 Outback Steakhouse......... 324,750
9,500 Payless ShoeSource......... 529,625
13,042 Promus Hotel............... 511,898
20,052 Reynolds & Reynolds, Cl. A. 343,390
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -------------
Consumer Cyclical (continued)
11,800 Ruddick.................... $ 184,375
5,200 Sbarro..................... 137,475
4,100(a) Scholastic................. 166,050
25,244(a) Service Merchandise........ 102,553
34,032 Shaw Industries............ 412,638
7,207 Standard Register.......... 233,326
41,193(a) Staples.................... 1,081,316
19,900 Starbucks.................. 656,700
7,100 Superior Industries International 189,481
6,248 TCA Cable TV............... 257,730
8,838 Tiffany.................... 349,101
18,500 U.S. Office Products....... 578,125
15,637 Unifi...................... 601,047
21,200(a) Viking Office Products..... 507,475
10,914 Wallace Computer Services.. 419,506
13,200 Warnaco Group, Cl. A....... 372,900
2,669 Washington Post, Cl. B..... 1,158,362
-------------
32,057,529
-------------
Consumer Staples--4.7%
4,888 Church & Dwight............ 140,835
97,608 Coca-Cola Enterprises...... 2,745,225
10,177 Dean Foods................. 481,499
24,300 Dial....................... 410,062
15,143 Dole Food.................. 671,024
3,414 Dreyers Grand Ice Cream.... 141,254
10,216 First Brands............... 260,508
22,325 Flowers Industries......... 424,175
19,200 Hormel Foods............... 577,200
23,300 IBP........................ 540,268
10,300 Imation.................... 220,162
9,300 Interstate Bakeries........ 594,037
4,577 International Multifoods... 135,021
7,433 Lancaster Colony........... 367,933
7,545 Lance...................... 161,274
19,036 McCormick & Co............. 475,900
6,881 Savannah Food & Industries. 118,697
7,420 Smucker (J.M.), Cl. A...... 201,731
4,378 Stanhome................... 122,310
54,566 Tyson Foods, Cl. A......... 1,029,933
8,866 Universal.................. 340,786
6,464 Universal Foods............ 254,930
-------------
10,414,764
-------------
Energy--9.3%
14,262 AGL Resources.............. 258,498
9,685(a) BJ Services................ 820,803
15,000 El Paso Natural Gas........ 899,062
35,900(a) ENSCO International........ 1,510,043
43,400(a) Global Marine.............. 1,350,825
Shares COMMON STOCKS (continued) Value
--------- -------------
Energy (continued)
5,694 Indiana Energy............. $ 162,634
12,794 Keyspan Energy............. 397,413
16,814 LG&E Energy................ 357,297
13,760 MAPCO...................... 454,080
19,680 MCN........................ 681,420
11,382 Murphy Oil................. 659,444
25,500(a) Nabors Industries.......... 1,048,687
9,637 National Fuel Gas.......... 425,232
14,377 Noble Affiliates........... 590,355
33,300 Noble Drilling............. 1,184,231
19,437 Parker Drilling............ 287,910
18,500 Pioneer Natural Resources.. 741,156
8,886 Quaker State............... 137,733
10,448 Questar.................... 403,554
31,682 Ranger Oil................. 273,257
16,020(a) Seagull Energy............. 391,488
10,210(a) Smith International........ 778,512
15,305 Tidewater.................. 1,005,347
39,469 Tosco...................... 1,302,477
25,600 Transocean Offshore........ 1,382,400
20,800 Ultramar Diamond Shamrock.. 642,200
13,500 UtiliCorp United........... 426,093
13,576 Valero Energy.............. 408,977
8,065(a) Varco International........ 491,460
11,060 Washington Gas Light....... 284,103
13,641(a) Weatherford International.. 696,555
-------------
20,453,246
-------------
Health Care--7.7%
3,634 ATL Ultrasound............. 156,262
7,195(a) Acuson..................... 134,906
14,700 Allegiance................. 407,925
13,000(a) Apria Healthcare Group..... 197,437
7,212 Beckman Instruments........ 283,972
12,738 Bergen Brunswig, Cl. A..... 510,316
18,752(a) Biogen..................... 628,192
11,751 Carter-Wallace............. 184,343
17,697(a) Centocor................... 778,668
44,080(a) Chiron..................... 848,540
9,400 Concentra Managed Care..... 306,675
13,700 DENTSPLY International..... 388,737
4,119(a) Datascope.................. 99,370
3,471 Diagnostic Products........ 101,526
10,300(a) Forest Laboratories........ 476,375
30,720 Foundation Health.......... 883,200
19,458(a) Genzyme.................... 532,662
11,482 HEALTHSOUTH................ 293,508
11,300(a) Healthcare & Retirement.... 427,281
41,100 Health Management Association 1,001,812
17,400 Hillenbrand Industries..... 743,850
30,750 IVAX....................... 232,546
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -------------
Health Care (continued)
31,232(a) Laboratory Corp
of America Holdings...... $ 74,176
11,600 McKesson................... 1,244,825
30,898 Mylan Laboratories......... 677,824
15,448(a) NovaCare................... 201,789
20,300 Omnicare................... 564,593
19,900 Oxford Health Plans........ 513,668
10,636(a) PacifiCare Health Systems, Ser. B 688,681
19,400(a) Perrigo.................... 298,275
17,500 Quorum Health Group........ 424,375
6,100(a) Scherer (R.P.)............. 359,137
24,250 Stryker.................... 901,796
9,200 Teleflex................... 342,700
17,500(a) Vencor..................... 472,500
22,400(a) Watson Pharmaceuticals..... 711,211
-------------
17,093,653
-------------
Interest Sensitive--16.7%
34,634 AFLAC...................... 1,762,004
17,700 AMBAC...................... 747,825
14,959 American Financial......... 569,376
11,240 Associated Banc-Corp....... 561,400
29,826 Bear Stearns Cos........... 1,183,719
16,800 Capital One Financial...... 766,500
14,388 Central Fidelity Banks..... 669,042
14,490 Charter One Financial...... 842,231
11,457 City National.............. 344,426
27,990 Crestar Financial.......... 1,324,276
31,600 Dime Bancorp............... 758,400
24,174 Edwards (A.G.)............. 793,209
13,700 FINOVA Group............... 601,943
22,265 First of America Bank...... 1,241,273
29,288 First Security............. 849,352
16,172 First Tennessee National... 931,911
13,109 First Virginia Banks....... 608,749
36,600 Firstar.................... 1,322,175
31,912 Franklin Resources......... 2,868,091
5,096 HSB Group.................. 265,947
32,700 Hibernia, Cl. A............ 582,468
25,491 Marshall & Iisley.......... 1,322,345
32,946 Mercantile Bancorporation.. 1,599,940
18,151 Mercantile Bankshares...... 646,629
28,248 Northern Trust............. 1,652,508
12,000 Old Kent Financial......... 757,500
22,000 Old Republic International. 786,500
8,400 PMI Group.................. 507,675
10,185 Pacific Century Financial.. 513,069
23,100 Paine Webber Group......... 1,020,731
14,700 Price T Rowe............... 973,875
34,128 Provident Cos.............. 1,139,022
34,628 Regions Financial.......... 1,272,579
Shares COMMON STOCKS (continued) Value
--------- -------------
Interest Sensitive (contiued)
25,195 SouthTrust................. $ 1,209,360
44,363 Summit Bancorp............. 1,893,745
8,737 Transatlantic Holdings..... 604,491
16,800 Union Planters............. 996,450
8,500 Wilmington Trust........... 473,884
-------------
36,964,620
-------------
Mining And Metals--.8%
13,900(a) Alumax..................... 451,750
4,129 Brush Wellman.............. 99,354
4,944 Carpenter Technology....... 239,166
2,868 Cleveland-Cliffs........... 124,578
12,346 Harsco..................... 512,359
3,828 Lukens..................... 68,904
2,100(a) MAXXAM..................... 110,512
6,468 Oregon Steel Mills......... 136,233
-------------
1,742,856
-------------
Transportation--1.9%
6,312 APL, Ltd................... 207,507
7,580 ASA Holdings............... 211,292
5,369 Airborne Freight........... 340,260
3,687 Alaska Air Group........... 123,053
11,457 Alexander & Baldwin........ 315,067
6,500 Arnold Industries.......... 138,125
11,400 CNF Transportation......... 508,725
6,173 GATX....................... 398,544
15,511 Illinois Central, Ser. A... 552,579
9,200 Hunt (J.B.) Transport...... 141,450
27,088 Kansas City Southern Industries 826,184
8,800 Newport News Shipbuilding.. 189,200
9,270 Overseas Shipholding Group. 229,432
-------------
4,181,418
-------------
Utilities--10.3%
44,092(a) AES........................ 1,747,145
9,168 Aliant Communications...... 234,930
31,022 Allegheny Energy........... 876,371
13,254 Atlantic Energy............ 244,370
3,695 Black Hills................ 111,311
24,345 CMS Energy................. 888,592
20,400(a) Calenergy.................. 698,700
5,720 Central Lousiana Electric.. 150,507
8,215 Central Maine Power........ 108,848
15,258 Century Telephone Enterprises 647,511
15,534 Delmarva Power & Light..... 307,767
24,516 Florida Progress........... 798,302
7,929 Hawaiian Electric Industries 299,815
11,251 IPALCO Enterprises......... 393,785
9,483 Idaho Power................ 302,270
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997
Shares COMMON STOCKS (continued) Value
--------- -------------
Utilities (continued)
18,676 Illinova................... $ 415,541
15,680 Kansas City Power & Light.. 459,620
19,800 LCI International.......... 512,325
25,533 MidAmerican Energy Holdings 456,402
8,337 Minnesota Power & Light.... 303,258
13,815 Montana Power.............. 349,692
65,200 NEXTEL Communications, Cl. A 1,711,500
15,848 NIPSCO Industries.......... 696,321
12,511 Nevada Power............... 268,986
26,228 New Century Energies....... 1,095,019
16,416 New England Electric System 643,302
17,088 New York State Electric & Gas 456,036
32,860 Northeast Utilities........ 377,890
10,173 OGE Energy................. 492,754
21,436 Pinnacle West Capital...... 746,240
29,983 Potomac Electric Power..... 672,743
10,594 Public Service of New Mexico 205,920
21,390 Puget Sound Power & Light.. 569,508
27,064 SCANA...................... 683,366
16,683 Southern New England
Telecommunications....... 715,283
30,800 360 Communications......... 650,650
33,118 TECO Energy................ 790,692
Shares COMMON STOCKS (continued) Value
--------- -------------
Utilities (continued)
15,100 Telephone & Data Systems... $ 641,750
10,157(a) Vanguard Cellular Systems.. 140,293
7,779 WPL Holdings............... 227,058
28,587 Wisconsin Energy........... 723,622
-------------
22,815,995
-------------
TOTAL COMMON STOCKS
(cost $150,547,522)...... $215,141,765
=============
Principal SHORT-TERM
Amount INVESTMENTS--.1%
-----------
$ 240,000(b) U.S. Treasury Bills:
4.95%, 12/11/1997
(cost $238,680).......... $ 238,699
=============
TOTAL INVESTMENTS
(cost $150,786,202)............ 97.4% $215,380,464
======= ==============
CASH AND
RECEIVABLES (NET).............. 2.6% $ 5,636,307
======= ==============
NET ASSETS....................... 100.0% $221,016,771
======= ==============
Notes to Statement of Investments:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as collateral for
open financial futures positions.
Statement of Financial Futures October 31, 1997
Financial Futures Purchased:
- ----------------------------
<TABLE>
<CAPTION>
Market Value Unrealized
Covered Appreciation
Issuer Contracts by Contracts Expiration at 10/31/97
- ------ --------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Standard & Poor's MidCap 400..................... 36 $5,766,300 December '97 $62,300
========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1997
<TABLE>
<CAPTION>
Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $150,786,202 $215,380,464
Cash............................................. 206,092
Receivable for investment securities sold........ 5,575,522
Receivable for futures variation margin--Note 4(a) 121,500
Receivable for shares of Common Stock subscribed. 60,651
Dividends and interest receivable................ 205,250
------------
221,549,479
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 49,834
Due to Distributor............................... 49,834
Payable for investment securities purchased...... 431,681
Payable for shares of Common Stock redeemed...... 90
Commitment fees payable--Note 2.................. 1,269
------------
532,708
------------
NET ASSETS..................................................................... $221,016,771
============
REPRESENTED BY: Paid-in capital.................................. $138,033,260
Accumulated undistributed investment income--net. 1,657,327
Accumulated net realized gain (loss) on investments 16,669,622
Accumulated net unrealized appreciation (depreciation)
on investments (including $62,300 net unrealized
appreciation on financial futures)--Note 4(b).. 64,656,562
------------
NET ASSETS..................................................................... $221,016,771
============
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized)................ 8,323,404
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $26.55
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Operations Year Ended October 31, 1997
<TABLE>
INVESTMENT INCOME:
<S> <C> <C> <C>
INCOME: Cash dividends (net of $308 foreign taxes
withheld at source)...................... $ 2,795,731
Interest................................... 349,569
-----------
Total Income.......................... $ 3,145,300
EXPENSES: Management fee--Note 3(a).................. 681,814
Shareholder servicing costs--Note 3(b)..... 376,149
Professional fees.......................... 49,933
Directors' fees and expenses--Note 3(c).... 28,663
Registration fees.......................... 25,614
Prospectus and shareholders' reports....... 16,824
Loan commitment fees--Note 2............... 3,131
Miscellaneous.............................. 9,859
-----------
Total Expenses........................ 1,191,987
Less--reduction in management fee due to
undertaking--Note 3(a)................... (187,440)
-----------
Net Expenses.......................... 1,004,547
-----------
INVESTMENT INCOME--NET................................................... 2,140,753
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.... $15,111,996
Net realized gain (loss) on financial futures 1,983,242
-----------
Net Realized Gain (Loss).............. 17,095,238
Net unrealized appreciation (depreciation) on
investments (including $105,800 net unrealized
appreciation on financial futures) 36,244,257
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 53,339,495
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $55,480,248
===========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 2,140,753 $ 2,191,854
Net realized gain (loss) on investments................................. 17,095,238 7,900,741
Net unrealized appreciation (depreciation) on investments............... 36,244,257 11,691,375
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations...... 55,480,248 21,783,970
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net.................................................. (2,236,912) (1,926,246)
Net realized gain on investments........................................ (8,243,435) (5,586,113)
------------ ------------
............................................................... (10,480,347) (7,512,359)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 76,561,680 65,932,645
Dividends reinvested.................................................... 9,015,232 6,623,156
Cost of shares redeemed................................................. (80,546,553) (38,822,556)
------------ ------------
Increase (Decrease) in Net Assets from Capital Stock Transactions.... 5,030,359 33,733,245
------------ ------------
Total Increase (Decrease) in Net Assets........................... 50,030,260 48,004,856
NET ASSETS:
Beginning of Period..................................................... 170,986,511 122,981,655
------------ ------------
End of Period........................................................... $221,016,771 $170,986,511
------------ ------------
------------ ------------
Undistributed investment income--net....................................... $ 1,657,327 $ 1,753,486
------------ ------------
Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 3,242,152 3,243,154
Shares issued for dividends reinvested.................................. 428,888 350,989
Shares redeemed......................................................... (3,366,259) (1,913,500)
------------ ------------
Net Increase (Decrease) In Shares Outstanding........................ 304,781 1,680,643
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
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: 1997 1996 1995 1994 1993
------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $21.32 $19.40 $17.14 $17.63 $15.02
------ ------ ------ ------ ------
Investment Operations:
Investment income--net.................................. .25 .28 .29 .26 .30
Net realized and unrealized gain (loss) on investments.. 6.25 2.81 3.00 .08 2.83
------ ------ ------ ------ ------
Total from Investment Operations........................ 6.50 3.09 3.29 .34 3.13
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net................... (.27) (.30) (.28) (.27) (.27)
Dividends from net realized gain on investments......... (1.00) (.87) (.75) (.56) (.25)
------ ------ ------ ------ ------
Total Distributions..................................... (1.27) (1.17) (1.03) (.83) (.52)
------ ------ ------ ------ ------
Net asset value, end of period.......................... $26.55 $21.32 $19.40 $17.14 $17.63
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................................... 32.02% 16.65% 20.78% 1.89% 21.22%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .50% .50% .50% .40% .09%
Ratio of net investment income to average net assets.... 1.07% 1.49% 1.80% 1.68% 1.97%
Decrease reflected in above expense ratios
due to undertakings by the Manager................... .09% .17% .35% .43% .77%
Portfolio Turnover Rate................................. 20.15% 14.66% 20.46% 19.81% 16.80%
Average commission rate paid*........................... $.0316 $.0338 -- -- --
Net Assets, end of period (000's omitted)............... $221,017 $170,987 $122,982 $75,404 $65,690
<FN>
- -------------
* For fiscal years beginning November 1, 1995, the Fund is required to disclose
its average commisssion rate paid per share for purchases and sales of
investment securities.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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. The
Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser.
Boston Safe Deposit and Trust Company, an affiliate of Dreyfus, is the Fund's
custodian. Dreyfus is a direct subsidiary of Mellon Bank, N.A. Premier Mutual
Fund Services, Inc. (the "Distributor") is the distributor of the Fund's
shares, which are sold to the public without a sales charge.
Prior to June 30, 1997, Mellon Equity Associates ("Mellon Equity"), an
affiliate of Dreyfus, served as the Fund's index manager.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(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. 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--Bank Line of Credit
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended October
31, 1997, the Fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Effective July 1, 1997, pursuant to a management agreement ("Agreement")
with Dreyfus, the management fee is computed at the annual rate of .25 of 1% of
the value of the Fund's average daily net assets, and is payable monthly. Under
the terms of the Agreement, Dreyfus has agreed to pay all the expenses of the
Fund, except brokerage commissions, taxes, commitment fees, interest,
Shareholder Services Plan fees, fees and expenses of non-interested Directors
(including
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
counsel fees) and extraordinary expenses. In addition Dreyfus is required to
reduce its fee in an amount equal to the Fund's allocable portion of fees and
expenses of the non-interested Directors (including counsel). Each director
receives an annual fee of $2,500 and an attendance fee $500 per meeting and is
reimbursed for travel and out-of-pocket expenses. The Chairman of the Board
receives an additional 25% of such compensation. Amounts required to be paid by
the Fund directly to the non-interested Directors, that would be applied to
offset aportion of the management fee payable to Dreyfus, are in fact paid
directly by Dreyfus to the non-interested Directors.
Prior to July 1, 1997, the management fee was computed at the annual rate of
.395 of 1% of the value of the Fund's average daily net assets and was payable
monthly. In addition, Dreyfus had agreed to pay Mellon Equity, pursuant to an
index management agreement which terminated as of June 30, 1997, a monthly index
management fee at the annual rate of .095 of 1% of the value of the Fund's
average daily net assets. In addition, Mellon Equity had agreed to pay Boston
Safe and Trust Company for custodian services provided to the Fund.
Dreyfus had undertaken from November 1, 1996 through June 30, 1997, to reduce
the management fee paid by the Fund exclusive of taxes, brokerage, interest on
borrowings, commitment fees and extraordinary expenses, and to assume all
expenses in excess of .50 of 1% of the value of the Fund's average daily net
assets. The reduction in management fee, pursuant to the undertaking, amounted
to $187,440 during the period from November 1, 1996 through June 30, 1997.
(b) Effective July 1, 1997, under the Shareholder Services Plan, the Fund
pays the Distributor for the provision of certain services at the annual rate of
.25 of 1% of the value of the Fund's average daily net assets. The services
provided includes 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. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The distributor determines the amounts to be paid to Service
Agents. During the period from July 1, 1997 through October 31, 1997, the Fund
was charged $191,391 pursuant to the Shareholder Services Plan.
Prior to July 1, 1997, under the prior Shareholder Services Plan, the Fund
reimbursed 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. During the period from
November 1, 1996 through June 30, 1997, the Fund was charged $136,903 pursuant
to the prior Shareholder Services Plan.
Prior to July 1, 1997 the Fund compensated Dreyfus Transfer, Inc., a
wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for the
Fund. During the period from November 1, 1996 through June 30, 1997, the Fund
was charged $16,315 pursuant to the transfer agency agreement.
(c) Prior to July 1, 1997, each director who was not an "affiliated person"
as defined in the Act received from the Fund an annual fee of $2,500 and an
attendance fee of $500 per meeting. The Chairman of the Board received an
additional 25% of such compensation.
(d) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to a
specified effective date and the redemption or exchange occurs within a six
month period following the date of issuance.
During the period ended October 31, 1997, redemption fees amounted to $2,617.
<PAGE>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
October 31, 1997, amounted to $43,065,243 and $38,728,453, 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
as of October 31, 1997, and their related unrealized market appreciation are set
forth in the Statement of Financial Futures.
(b) At October 31, 1997, accumulated net unrealized appreciation on
investments and financial futures was $64,656,562, consisting of $72,448,805
gross unrealized appreciation and $7,792,243 gross unrealized depreciation.
At October 31, 1997, 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>
Dreyfus MidCap Index Fund
- --------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
Shareholders and Board of Directors
Dreyfus MidCap Index Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus MidCap Index Fund, including the statements of investments and financial
futures, as of October 31, 1997, 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 and financial highlights. Our procedures included verification by
examination of securities held by the custodian as of October 31, 1997 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
Dreyfus MidCap Index Fund at October 31, 1997, 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 8, 1997
<PAGE>
Dreyfus MidCap Index Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02109
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02904
Printed in U.S.A. 113AR9710
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS MIDCAP INDEX FUND WITH THE STANDARD &
POOR'S MIDCAP 400 INDEX AND THE STANDARD & POOR'S
500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
STANDARD
DREYFUS & POOR'S 500 STANDARD
MIDCAP COMPOSITE & POOR'S
PERIOD INDEX STOCK MIDCAP 400
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
10/31/96 21,095 21,970 22,320
10/31/97 27,850 29,022 29,610
* Source: Lipper Analytical Services, Inc.
