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Previous: INTERNATIONAL TOURIST ENTERTAINMENT CORP, 8-K, 1999-12-17 |
Next: SEPRACOR INC /DE/, 424B3, 1999-12-17 |
Dreyfus
MidCap Index Fund
ANNUAL REPORT October 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments Year 2000 Issues (Unaudited)
and its share price.
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
19 Statement of Financial Futures
20 Statement of Assets and Liabilities
21 Statement of Operations
22 Statement of Changes in Net Assets
23 Financial Highlights
24 Notes to Financial Statements
28 Report of Independent Auditors
29 Important Tax Information
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus
MidCap Index Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus MidCap Index Fund,
covering the 12-month period from November 1, 1998 through October 31, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio managers,
Steve Falci and Jocelin Reed.
Over the past year, midcap stocks generally performed better than small-cap
stocks but did not fare as well as the large-cap market sector. When the
reporting period began, the entire U.S. stock market had just completed a sharp
correction caused primarily by concerns regarding the spread of the global
financial crisis in overseas markets. Soon after the start of 1999, however,
those fears abated. In fact, the U.S. economy remained strong, and investors
became concerned that inflationary pressures might re-emerge. As a result, the
Federal Reserve Board raised short-term interest rates twice during the summer
in an effort to forestall a reacceleration of inflation in a fast-growing
economy. In this environment, equity investors once again preferred the relative
predictability of earnings from large-cap companies.
Despite a brief rally in April and May, small- and mid-cap stocks generally
failed to keep pace with their large-cap counterparts. However, some midcap
stocks, especially technology companies that were subject to heightened investor
speculation, were exceptions to this trend.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus MidCap Index Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 1999
DISCUSSION OF FUND PERFORMANCE
Steve Falci and Jocelin Reed, Portfolio Managers
How did Dreyfus MidCap Index Fund perform relative to its benchmark?
For the 12-month period ended October 31, 1999, Dreyfus MidCap Index Fund
produced a total return of 20.48%.(1) The Standard & Poor's MidCap 400 Index
("S&P 400 Index"), produced a total return of 21.07% for the same period.(2) The
difference in returns is accounted for by transaction costs and other operating
fund expenses.
What is the fund's investment approach?
The fund seeks to match the total return of the S&P 400 Index. To pursue that
goal, the fund generally invests in all 400 stocks in the index, in proportion
to their weighting in the index. Often considered a barometer for the midcap
stock market in general, the S& P 400 Index is composed of 400 stocks of
medium-size domestic and some Canadian companies with market capitalizations
ranging between $50 million and $10 billion; the index contains approximately
310 industrial, 40 utility, 40 financial and 10 transportation stocks. Each
stock is weighted by its market capitalization; that is, larger companies have
greater representation in the index than smaller ones. The fund may also use
stock index futures as a substitute for the sale or purchase of stocks. The S&P
400 Index was the first benchmark to represent the performance of the midcap
stock market.
As an index fund, the fund uses a passive management approach; all investment
decisions are made based on the fund's objective, which is to seek to match the
performance of the S& P 400 Index. The fund does not attempt to manage market
volatility.
Compared to larger, more established companies, midsize companies are often
subject to more erratic market movements and may carry additional risks because
their earnings tend to be less predictable and their stocks less liquid.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
At the beginning of the fund's 12-month reporting period, and following the
trend of the past few years, the growth of the U.S. equity market was dominated
by large-cap growth stocks. However, in mid-April market sentiment began to
shift away from domestic large-cap growth stocks to include a broader group of
companies, including small- and mid-cap names. While this broadening of the
market provided an opportunity for a resurgence in many small- and mid-cap
names, it also served to boost the performance of many value-oriented companies
as well.
By August however, the equity market began to narrow, once again favoring
large-cap growth names. In this environment, technology companies reported
strong gains, and to the surprise of many industry analysts, many of them were
midcap technology names. In fact, several midcap technology names moved from the
midcap index to the large-cap index during the course of the past year,
including America Online, Lexmark International and Best Buy.
Small-cap stocks continued to report disappointing returns, with the exception
of the mid-April to August time period. However, valuations for small-cap stocks
remain attractive when compared to their larger cap counterparts. In addition,
small-cap stocks enjoyed a surge in initial public offerings (IPOs) toward the
end of the period, demonstrating the asset class's ability to bounce back from
the relatively lackluster IPO market experienced by small caps during the same
time last year.
What is the fund's current strategy?
The fund is an index fund and its goal is to replicate the return of the S&P 400
Index. To understand how index investing works, it's important to recognize the
differences associated with a passive index manager and an active manager. The
active manager typically makes decisions about buying and selling stocks based
on economic, financial and market conditions. The passive index manager, on the
other hand, buys the stocks in the index in an effort to match its returns
During the 12-month period, the largest gains within the S&P 400 Index, and
therefore the fund as well, came from its technology group, which includes
communications equipment, telephone equipment, electronic equipment and
instruments and computer software companies. In addition, the S&P 400 Index's
holdings within the home shopping, broadcast media and biotechnology areas
provided strong returns, as did its railroad and independent power production
stocks.
On the other hand, the poorest performing returns of the S&P 400 Index, and
therefore of the fund as well, were generated from its consumer services, health
distributors, commercial services, health services and agriculture product
companies. In addition, the stocks of auto parts, textile, chemical,
homebuilding and food and beverage companies provided disappointing returns
November 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(2) 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 WIDELY ACCEPTED, UNMANAGED INDEX OF MEDIUM-CAP
STOCK MARKET PERFORMANCE.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus MidCap Index Fund
and the Standard & Poor's MidCap 400 Index
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 10/31/99
Inception From
Date 1 Year 5 Years Inception
- -------------------------------------------------------------------------
FUND 6/19/91 20.48% 18.86% 16.35%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 $10,000 INVESTMENT MADE ON THAT DATE IN THE
STANDARD & POOR'S MIDCAP 400 INDEX. FOR COMPARATIVE PURPOSES, THE VALUE OF THE
INDEX ON 6/30/91 IS USED AS THE BEGINNING VALUE ON 6/19/91. ALL DIVIDENDS AND
CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. THE FUND'S PERFORMANCE SHOWN IN THE
LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE FEES AND EXPENSES. THE STANDARD &
POOR'S MIDCAP 400 INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF MEDIUM-CAP
STOCK MARKET PERFORMANCE. THE FUND HOLDS STOCKS IN GENERALLY THE SAME PROPORTION
AS THE STOCKS WITHIN THE INDEX ITSELF. THE INDEX DOES NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. FURTHER INFORMATION RELATING TO FUND
PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN
THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
October 31, 1999
COMMON STOCKS--94.3% Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
ALCOHOL & TOBACCO--.3%
<S> <C> <C>
RJ Reynolds Tobacco Holdings 33,900 735,206
Universal 10,166 238,901
974,107
CONSUMER CYCLICAL--10.9%
Abercrombie & Fitch, Cl. A 32,200 (a) 877,450
Alaska Air Group 8,187 325,433
Albany International, Cl. A 9,316 141,487
Arvin Industries 8,068 229,938
BJ's Wholesale Club 23,014 (a) 709,119
Bandag 6,800 170,000
Barnes & Noble 21,600 (a) 449,550
Blyth Industries 15,100 (a) 378,444
Bob Evans Farms 12,344 169,730
Borders Group 24,200 (a) 314,600
Borg-Warner Automotive 8,300 327,850
Brinker International 20,771 (a) 484,224
Buffets 13,100 (a) 121,994
Burlington Industries 16,500 (a) 60,844
CBRL Group 18,725 250,447
Callaway Golf 23,600 317,125
Claire's Stores 15,952 281,154
Comair Holdings 29,850 688,882
CompUSA 28,600 (a) 162,663
DeVRY 21,500 (a) 452,844
Dollar Tree Stores 19,300 (a) 840,756
Family Dollar Stores 53,870 1,111,069
Fastenal 11,800 427,750
Federal-Mogul 22,017 553,177
Furniture Brands International 16,100 (a) 311,938
GTECH Holdings 10,800 (a) 217,350
HON Industries 19,122 375,269
Hannaford Brothers 13,200 924,825
Harley-Davidson 47,524 2,818,767
Heilig-Meyers 18,670 81,681
International Game Technology 28,076 522,916
Jones Apparel Group 38,161 (a) 1,206,842
Lands' End 9,348 719,212
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICAL (CONTINUED)
Lear 20,800 (a) 702,000
Lone Star Steakhouse/Saloon 11,100 (a) 88,800
Mandalay Resort Group 28,373 (a) 528,447
Meritor Automotive 21,600 365,850
Micro Warehouse 11,200 (a) 135,800
Miller (Herman) 24,860 539,151
Modine Manufacturing 9,220 229,348
Mohawk Industries 18,900 (a) 433,519
OfficeMax 35,300 (a) 178,706
Outback Steakhouse 23,450 (a) 539,350
Papa John's International 9,500 (a) 355,063
Park Place Entertainment 94,300 (a) 1,237,688
Payless ShoeSource 10,000 (a) 458,125
Promus Hotel 24,523 (a) 839,913
Ross Stores 28,500 587,813
Ruddick 14,500 247,406
Saks 45,130 (a) 775,672
Shaw Industries 42,932 662,763
Starbucks 56,800 (a) 1,544,250
Superior Industries International 8,400 224,175
Tiffany & Co. 21,976 1,307,572
Unifi 18,637 223,644
Warnaco Group, Cl. A 17,300 246,525
Wellman 9,761 147,025
Westpoint Stevens 17,400 329,513
Williams-Sonoma 17,400 (a) 935,250
30,888,698
CONSUMER STAPLES--3.8%
Carter-Wallace 14,051 253,796
Church & Dwight 12,076 314,731
Dean Foods 12,277 567,811
Dial 31,900 745,663
Dole Food 17,743 318,265
Dreyers Grand Ice Cream 8,628 147,215
Flowers Industries 31,225 526,922
Hormel Foods 22,700 978,938
IBP 28,800 689,400
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES (CONTINUED)
International Multifoods 5,877 124,152
Interstate Bakeries 21,900 443,475
Lancaster Colony 12,799 447,165
Lance 9,345 112,724
McCormick & Co. 22,236 697,655
Premark International 19,100 1,045,725
Smucker (J.M.), Cl. A 9,120 181,260
Suiza Foods 10,500 (a) 378,656
Tyson Foods, Cl. A 71,566 1,091,382
U.S. Foodservice 30,900 592,894
Universal Foods 15,728 300,798
Vlasic Foods International 14,200 (a) 109,163
Whitman 44,200 574,600
10,642,390
ENERGY--6.5%
AGL Resources 17,762 309,725
American Water Works 30,100 878,544
BJ Services 22,070 757,277
Devon Energy 24,900 967,988
ENSCO International 42,800 829,250
Global Marine 54,300 824,681
Indiana Energy 9,325 188,248
KeySpan 43,394 1,220,456
Kinder Morgan 36,250 729,531
LG&E Energy 40,414 889,108
MCN Energy Group 26,680 651,993
Murphy Oil 13,982 783,866
Nabors Industries 36,400 (a) 825,825
National Fuel Gas 12,137 593,196
Noble Affiliates 17,777 449,980
Noble Drilling 41,100 (a) 911,906
Ocean Energy 51,920 (a) 477,015
Pennzoil-Quaker State 24,237 286,300
Pioneer Natural Resources 31,300 293,438
Questar 25,796 464,328
Santa Fe Snyder 56,400 486,450
Smith International 15,410 532,608
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
Tidewater 17,305 519,150
Transocean Offshore 31,400 853,688
Ultramar Diamond Shamrock 27,000 661,500
Valero Energy 17,576 322,959
Varco International 20,330 214,736
Washington Gas Light 14,460 393,131
Weatherford International 33,023 (a) 1,118,654
18,435,531
HEALTH CARE--8.9%
Acuson 8,395 (a) 87,098
Apria Healthcare Group 16,200 (a) 256,163
Beckman Coulter 8,912 409,952
Bergen Brunswig, Cl. A 41,876 298,367
Beverly Enterprises 32,000 (a) 126,000
Biogen 46,904 (a) 3,476,759
Chiron 56,480 (a) 1,613,210
Covance 18,300 (a) 177,281
DENTSPLY International 16,500 382,594
First Health Group 15,560 (a) 361,770
Forest Laboratories 26,000 (a) 1,192,750
Foundation Health Systems, Cl. A 38,120 (a) 252,545
Genzyme 25,958 (a) 992,894
Gilead Sciences 13,100 (a) 827,756
Health Management Associates, Cl. A 79,000 (a) 701,125
Hillenbrand Industries 20,700 685,688
ICN Pharmaceuticals 24,400 561,200
IVAX 33,250 583,953
Lincare Holdings 18,200 (a) 511,875
Medimmune 17,700 (a) 1,982,400
Millennium Pharmaceuticals 11,300 (a) 792,413
Minimed 9,600 727,800
Mylan Laboratories 40,298 722,845
Omnicare 28,400 262,700
Oxford Health Plans 25,400 (a) 300,038
PSS World Medical 22,100 (a) 171,275
Pacificare Health Systems 14,336 (a) 565,376
Perrigo 22,900 (a) 173,181
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
Quorum Health Group 22,800 (a) 182,400
STERIS 21,000 (a) 279,563
Sepracor 10,300 (a) 856,831
Stewart Enterprises 34,800 165,300
Stryker 30,250 1,867,938
Sybron International 32,400 (a) 771,525
Total Renal Care Holdings 25,300 (a) 185,006
Trigon Healthcare 13,000 (a) 368,875
VISX 19,900 (a) 1,244,994
25,119,440
INTEREST SENSITIVE--13.9%
Allmerica Financial 16,900 966,469
Ambac Financial Group 21,800 1,302,550
American Financial Group 18,559 549,810
Associated Banc-Corp 19,725 758,796
Astoria Financial 17,100 615,600
CCB Financial 12,400 570,400
Charter One Financial 66,515 1,633,775
City National 14,257 552,459
Comdisco 47,776 964,478
Compass Bancshares 35,400 944,738
Concord EFS 63,800 1,726,588
Dime Bancorp 35,400 632,775
E Trade Group 73,100 (a) 1,740,694
Edwards (A.G.) 29,274 880,050
Everest Reinsurance Holdings 15,200 391,400
FINOVA Group 19,100 841,594
First Security 60,882 1,560,101
First Tennessee National 40,744 1,385,296
First Virginia Banks 15,609 747,281
FirstMerit Corp 27,800 734,963
GreenPoint Financial 34,100 971,850
HSB Group 9,044 345,933
Hibernia, Cl. A 50,000 709,375
Horace Mann Educators 12,800 360,800
Investment Technology Group 10,000 263,750
Keystone Financial 15,100 378,444
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
INTEREST SENSITIVE (CONTINUED)
Legg Mason 17,600 640,200
Marshall & Ilsley 32,191 2,160,821
Mercantile Bankshares 21,551 775,836
NCO Group 8,000 (a) 339,000
National Commerce Bancorporation 32,900 822,500
North Fork Bancorp 42,500 879,219
Ohio Casualty 19,000 317,063
Old Kent Financial 36,995 1,507,546
Old Republic International 40,350 552,291
PMI Group 13,950 723,656
Pacific Century Financial 25,070 571,909
Protective Life 20,100 727,369
Provident Financial Group 13,500 579,656
ReliaStar Financial 26,800 1,150,725
Sovereign Bancorp 56,400 497,025
TCF Financial 26,000 767,000
Unitrin 22,600 846,088
Webster Financial 11,900 340,638
Westamerica Bancorporation 12,000 413,250
Wilmington Trust 10,300 558,775
Zions Bancorporation 26,300 1,550,056
39,250,592
PRODUCER GOODS--9.2%
AGCO 18,600 199,950
AK Steel Holding 31,600 547,075
AMETEK 10,122 199,910
Airborne Freight 15,138 325,467
Airgas 22,100 (a) 209,950
Albemarle 14,700 260,925
Alexander & Baldwin 13,557 325,368
American Power Conversion 59,900 (a) 1,344,006
American Standard 22,100 (a) 843,944
Arnold Industries 7,800 78,244
Bowater 16,010 840,525
CK Witco 37,033 347,184
CNF Transportation 15,100 499,244
Cabot 20,600 383,675
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
PRODUCER GOODS (CONTINUED)
Carlisle Cos. 9,432 313,614
Carpenter Technology 6,844 166,823
Chesapeake 6,591 197,730
Clayton Homes 45,070 456,334
Cleveland-Cliffs 3,468 103,607
Consolidated Papers 28,242 884,328
Cordant Technologies 11,442 356,847
Cytec Industries 13,300 (a) 343,306
Dexter 7,143 250,451
Donaldson 14,408 334,986
Ethyl 26,000 107,250
Ferro 11,079 225,735
Flowserve 11,715 197,691
Fuller (H.B.) 4,342 237,725
GATX 15,446 512,614
Georgia Gulf 9,679 208,703
Glatfelter (P.H.) 13,200 193,050
Granite Construction 8,425 174,292
Hanna (M.A.) 15,202 162,471
Harsco 12,846 378,154
Hubbell 20,280 561,503
IMC Global 35,722 455,456
Hunt (J.B.) Transport 11,100 142,913
Jacobs Engineering Group 8,121 288,296
Kaydon 9,888 245,346
Kennametal 9,300 267,375
Litton Industries 14,200 666,513
Longview Fibre 16,136 183,547
Lubrizol 16,988 435,318
Lyondell Petrochemical 36,638 444,236
MAXXAM 2,200 (a) 99,825
Mark IV Industries 14,507 279,260
Martin Marietta Materials 14,600 568,488
Minerals Technologies 6,700 288,938
NCH 1,717 82,094
Newport News Shipbuilding 10,800 328,050
Nordson 5,168 229,007
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
PRODUCER GOODS (CONTINUED)
Olin 14,140 195,309
Oregon Steel Mills 8,068 68,074
Overseas Shipholding Group 11,270 145,101
Pentair 15,040 565,880
Precision Castparts 7,623 224,879
RPM 34,213 408,418
Rayonier 8,700 356,700
Ryerson Tull 7,800 159,900
Schulman (A.) 9,725 151,345
Sequa, Cl. A 3,236 159,373
Solutia 34,600 594,688
Sonoco Products 31,793 763,032
Southdown 11,741 567,237
Stewart & Stevenson Services 8,726 115,620
Swift Transportation 20,000 (a) 348,750
Tecumseh Products, Cl. A 6,300 302,006
Teleflex 11,800 401,938
Georgia Pacific (Timber Group) 25,800 615,975
Trinity Industries 12,551 374,177
UCAR International 14,100 (a) 275,831
USG 15,500 768,219
Wausau-Mosinee Paper 16,313 205,952
Wisconsin Central Transportation 16,000 (a) 222,000
York International 12,450 293,353
26,061,100
SERVICES--11.1%
ACNielsen 18,100 (a) 398,200
Acxiom 26,500 437,250
Affiliated Computer Services, Cl. A 15,300 (a) 581,400
Apollo 24,100 (a) 634,131
Banta 8,486 191,996
Belo (A.H.), Cl. A 36,864 751,104
Cambridge Technology Partners 18,800 (a) 207,975
Chris-Craft Industries 10,485 (a) 731,329
Cintas 34,620 2,085,855
Convergys 47,600 (a) 931,175
DST Systems 19,800 (a) 1,261,013
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
SERVICES (CONTINUED)
Fiserv 38,500 (a) 1,232,000
Gartner Group, Cl. B 27,500 (a) 257,813
Hanover Compressor 9,200 (a) 340,400
Harte-Hanks 21,800 431,913
Hispanic Broadcasting 16,000 (a) 1,296,000
Houghton Mifflin 9,706 411,292
Keane 22,300 524,050
Kelly Services, Cl. A 11,185 327,860
Lee Enterprises 13,800 407,100
Manpower 23,900 839,488
Media General, Cl. A 8,300 453,388
Modis Professional Services 29,900 (a) 334,506
NOVA 22,900 (a) 595,400
Navigant Consulting 13,300 (a) 379,881
Ogden 15,300 138,656
Olsten 25,350 255,084
Pittston Brinks Group 12,700 243,681
Premier Parks 24,400 706,075
Quintiles Transnational 35,780 (a) 664,166
Reader's Digest Association, Cl. A 33,500 1,080,375
Reynolds & Reynolds, Cl. A 24,052 437,446
Robert Half International 28,550 772,634
Rollins 9,505 149,110
Scholastic 5,100 (a) 237,150
Sotheby's Holdings, Cl. A 18,318 525,498
Standard Register 8,807 192,653
SunGuard Data Systems 37,400 (a) 913,963
Sykes Enterprises 13,600 (a) 419,900
Sylvan Learning Systems 16,200 (a) 209,588
Telephone & Data Systems 19,200 2,212,800
Univision Communications, Cl. A 31,600 (a) 2,687,975
Viad 30,300 744,244
Wallace Computer Services 13,114 290,147
Washington Post, Cl. B 3,169 1,686,106
Westwood One 16,700 770,288
31,380,058
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--22.1%
Adtran 12,300 (a) 456,638
Altera 62,008 (a) 3,015,139
Arrow Electronics 29,962 653,546
Atmel 31,300 (a) 1,208,963
Avnet 13,104 711,711
Cadence Design System 76,010 (a) 1,154,402
Cirrus Logic 18,828 (a) 187,103
Citrix Systems 27,400 (a) 1,757,025
Cypress Semiconductor 32,718 (a) 836,354
Diebold 21,501 564,401
Electronic Arts 19,400 (a) 1,567,763
Federal Signal 14,413 271,145
Imation 11,400 (a) 349,838
Informix 59,600 (a) 454,450
Intergrated Device Technology 27,800 (a) 571,638
Intuit 58,200 (a) 1,695,075
Jabil Circuit 27,300 1,426,425
Legato Systems 25,400 (a) 1,365,250
Linear Technology 47,680 3,334,620
MagneTek 9,826 (a) 67,554
Maxim Integrated Products 42,100 (a) 3,323,269
Mentor Graphics 20,909 168,579
Microchip Technology 15,900 (a) 1,059,338
Molex 48,363 1,765,250
NCR 30,600 (a) 1,013,625
Network Associates 43,300 (a) 792,931
Novellus Systems 12,100 937,750
Policy Management Systems 11,054 (a) 212,099
Qlogic 11,300 (a) 1,176,613
Quantum--DLT & Storage Systems 51,606 (a) 796,668
Rational Software 27,200 (a) 1,162,800
SCI Systems 22,500 (a) 1,110,938
SPX 9,700 822,075
Sanmina 18,200 (a) 1,639,138
Sensormatic Electronics 23,621 357,268
Siebel Systems 28,900 (a) 3,173,581
Sterling Commerce 27,511 (a) 644,789
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Sterling Software 26,300 576,956
Storage Technology 31,226 (a) 491,810
Structural Dynamics Research 11,169 (a) 110,294
Symantec 17,676 (a) 844,029
Symbol Technologies 27,516 1,093,761
Synopsys 22,100 (a) 1,377,106
Tech Data 16,000 (a) 301,000
Teradyne 53,388 (a) 2,055,438
Transaction Systems Architects, Cl. A 10,200 (a) 313,650
Veritas Software 53,100 5,728,127
Vishay Intertechnology 26,436 (a) 646,030
Vitesse Semiconductor 47,800 (a) 2,192,825
Waters 19,100 (a) 1,014,688
Xilinx 49,332 (a) 3,878,729
62,430,194
UTILITIES--7.6%
Allegheny Energy 35,822 1,139,587
Alliant Energy 24,479 665,523
Black Hills 6,792 152,820
CMP Group 10,115 269,312
Calpine 19,400 1,117,925
Cincinnati Bell 43,000 894,938
Cleco 7,020 232,538
Comsat 16,436 307,148
Conectiv 29,199 569,381
DPL 49,500 1,002,375
DQE 23,100 922,556
Energy East 35,676 896,360
Hawaiian Electric Industries 10,029 338,479
IPALCO Enterprises 26,702 545,722
Idacorp 11,683 352,681
Illinova 21,776 692,749
Kansas City Power & Light 19,280 472,360
MidAmerican Energy Holding 19,100 642,238
Minnesota Power 22,774 421,319
Montana Power 34,330 976,259
New England Electric System 18,416 958,783
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
NiSource 38,996 799,418
Northeast Utilities 40,960 852,480
OGE Energy 24,246 550,081
Potomac Electric Power 36,983 1,014,721
Public Service of New Mexico 12,694 226,905
Puget Sound Energy 26,390 583,879
SCANA 32,264 802,567
Sierra Pacific Resources 24,311 546,998
TECO Energy 41,218 909,372
UtiliCorp United 29,050 628,206
Wisconsin Energy 36,587 818,634
21,304,314
TOTAL COMMON STOCKS
(cost $239,905,028) 266,486,424
- -----------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--5.8% Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
4.45%, 12/9/1999 16,471,000 (b) 16,394,080
4.67%, 12/16/1999 2,000 1,989
TOTAL SHORT-TERM INVESTMENTS
(cost $16,395,563) 16,396,069
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $256,300,591) 100.1% 282,882,493
LIABILITIES, LESS CASH AND RECEIVABLES (.1%) (338,194)
NET ASSETS 100.0% 282,544,299
(A) NON-INCOME PRODUCING.
(B) PARTIALLY HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES
October 31, 1999
Market Value Unrealized
Covered Appreciation
FINANCIAL FUTURES LONG Contracts by Contracts ($) Expiration at 10/31/99 ($)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's MidCap 400 80 16,050,000 December '99 580,575
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- -------------------------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
<S> <C> <C>
Investments 256,300,591 282,882,493
Cash 104,876
Receivable for shares of Common Stock subscribed 547,911
Receivable for investment securities sold 342,134
Receivable for futures variation margin--Note 4(a) 342,000
Dividends receivable 201,798
284,421,212
- --------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation 57,279
Due to Distributor 57,279
Payable for investment securities purchased 1,144,653
Payable for shares of Common Stock redeemed 617,702
1,876,913
- -------------------------------------------------------------------------------------------------
NET ASSETS ($) 282,544,299
- -------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 211,255,837
Accumulated undistributed investment income--net 1,934,650
Accumulated net realized gain (loss) on investments 42,191,335
Accumulated net unrealized appreciation (depreciation)
on investments (including $580,575 net unrealized
appreciation on financial futures)--Note 4(b) 27,162,477
- --------------------------------------------------------------------------------------------------
NET ASSETS ($) 282,544,299
- --------------------------------------------------------------------------------------------------
SHARES OUTSTANDING
(200 million shares of $.001 par value Common Stock authorized) 11,703,865
NET ASSET VALUE, offering and redemption price per share--Note 3(c) ($)
24.14
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended October 31, 1999
- ----------------------------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends 3,325,893
Interest 568,992
TOTAL INCOME 3,894,885
EXPENSES:
Management fee--Note 3(a) 695,110
Shareholder servicing costs--Note 3(b) 695,110
Interest expense--Note 2 4,211
Loan commitment fees--Note 2 821
TOTAL EXPENSES 1,395,252
INVESTMENT INCOME--NET 2,499,633
- ---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 45,165,060
Net realized gain (loss) on financial futures 1,485,282
NET REALIZED GAIN (LOSS) 46,650,342
Net unrealized appreciation (depreciation) on investments
[including ($1,304,125) net unrealized (depreciation) on financial futures] 880,954
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 47,531,296
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 50,030,929
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
-----------------------------------
1999 1998
- --------------------------------------------------------------------------------------
OPERATIONS ($):
<S> <C> <C>
Investment income--net 2,499,633 2,671,716
Net realized gain (loss) on investments 46,650,342 51,907,585
Net unrealized appreciation (depreciation)
on investments 880,954 (38,375,039)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 50,030,929 16,204,262
- -----------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (2,854,654) (2,039,372)
Net realized gain on investments (55,435,548) (17,600,666)
TOTAL DIVIDENDS (58,290,202) (19,640,038)
- -------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 145,586,089 196,809,454
Dividends reinvested 52,323,673 16,175,235
Cost of shares redeemed (158,893,516) (179,206,556)
Redemption fee 15,761 412,437
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 39,032,007 34,190,570
TOTAL INCREASE (DECREASE) IN NET ASSETS 30,772,734 30,754,794
- ------------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 251,771,565 221,016,771
END OF PERIOD 282,544,299 251,771,565
Undistributed investment income--net 1,934,650 2,289,671
- -------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 6,218,390 7,389,574
Shares issued for dividends reinvested 2,377,268 654,969
Shares redeemed (6,651,956) (6,607,784)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,943,702 1,436,759
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Year Ended October 31,
------------------------------------------------------------------
1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 25.80 26.55 21.32 19.40 17.14
Investment Operations:
Investment income--net .21(a) .27 .25 .28 .29
Net realized and unrealized
gain (loss) on investments 4.46 1.16 6.25 2.81 3.00
Total from Investment Operations 4.67 1.43 6.50 3.09 3.29
Distributions:
Dividends from investment income--net (.31) (.23) (.27) (.30) (.28)
Dividends from net realized gain
on investments (6.02) (1.99) (1.00) (.87) (.75)
Total Distributions (6.33) (2.22) (1.27) (1.17) (1.03)
Redemption fee added to paid-in capital .00(b) .04 -- -- --
Net asset value, end of period 24.14 25.80 26.55 21.32 19.40
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 20.48 5.88 32.02 16.65 20.78
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .50 .50 .50 .50 .50
Ratio of net investment income
to average net assets .90 .98 1.07 1.49 1.80
Decrease reflected in above expense ratios
due to undertakings by Dreyfus -- -- .09 .17 .35
Portfolio Turnover Rate 50.17 67.85 20.15 14.66 20.46
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 282,544 251,772 221,017 170,987 122,982
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN .01.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The 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, as amended (the "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. Dreyfus is a
direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of
Mellon Financial Corporation. 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.
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. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "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 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 (the "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.
The average daily amount of borrowings outstanding during the period ended
October 31, 1999, was approximately $77,800, with a related weighted average
annualized interest rate of 5.41%.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to 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 of the fund's expenses, except
management fees, brokerage commissions, taxes, com The Fun
NOTES TO FINANCIAL STATEMENTS (continued)
mitment fees, interest, fees and expenses of non-interested Directors (including
counsel fees) , Shareholder Services Plan fees and extraordinary expenses. In
addition, Dreyfus is required to reduce its fee in an amount equal to the fees
and expenses of the non-interested Directors (including counsel fees). Each
non-interested director receives an annual fee of $2,500 and an attendance fee
of $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 (with the
exception of reimbursable amounts) . Amounts required to be paid by the fund
directly to the non-interested Directors, that would be applied to offset a
portion of the management fee payable to Dreyfus, are in fact paid directly by
Dreyfus to the non-interested Directors.
(B) 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 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. 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 ended
October 31, 1999, the fund was charged $695,110 pursuant to the Shareholder
Services Plan.
(C) A 1% redemption fee is charged by the fund on shares redeemed within six
months following the date of issuance, including redemptions made through the
use of the fund's Exchange privilege.
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, 1999, amounted to $132,920,844 and $141,855,534, 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.
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 October 31, 1999, are set
forth in the Statement of Financial Futures.
(B) At October 31, 1999, accumulated net unrealized appreciation on investments
and financial futures was $27,162,477, consisting of $56,699,585 gross
unrealized appreciation and $29,537,108 gross unrealized depreciation.
At October 31, 1999, 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).
The Fund
REPORT OF 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, 1999, 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, 1999 and
confirmation of securities not held by the custodian by correspondence with
others. 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, 1999, 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.
New York, New York
December 7, 1999
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $5.86 per share as a
long-term capital gain distribution of the $6.33 per share paid on December 23,
1998.
The fund also designates 89.79% of the ordinary dividends paid during the fiscal
year ended October 31, 1999 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2000 of the
percentage applicable to the preparation of their 1999 income tax return.
The Fund
For More Information
Dreyfus MidCap Index Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
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 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 113AR9910
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
PERIOD MIDCAP MIDCAP 400
INDEX FUND INDEX *
6/19/91 10,000 10,000
10/31/91 10,952 11,547
10/31/92 12,123 12,612
10/31/93 14,695 15,327
10/31/94 14,973 15,691
10/31/95 18,084 19,020
10/31/96 21,095 22,320
10/31/97 27,850 29,610
10/31/98 29,489 31,597
10/31/99 35,527 38,255
* Source: Lipper Analytical Services, Inc.
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