Dreyfus
MidCap Index
Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
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 and its share price.
<PAGE>
Contents
THE FUND
- --------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
18 Statement of Financial Futures
19 Statement of Assets and Liabilities
20 Statement of Operations
21 Statement of Changes in Net Assets
22 Financial Highlights
23 Notes to Financial Statements
FOR MORE INFORMATION
- --------------------------------------------------------
Back Cover
<PAGE>
Dreyfus MidCap
Index Fund The Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus MidCap Index Fund,
covering the six-month period from November 1, 1998 through April 30, 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,
Steven Falci and Jocelin Reed.
The past six months have been rewarding for many equity investors. The Federal
Reserve Board's lowering of short-term interest rates in the fall of 1998
appears to have helped U.S. businesses withstand the effects of economic
weakness in Japan, Asia and Latin America. At the same time, strong U.S.
economic growth, low inflation and high levels of consumer spending supported
continued strength in many broad measures of stock market performance. As a
result, several major U.S. market indices set new records, including the Dow
Jones Industrial Average's first-ever close above the 10,000 level.
However, until near the end of the six-month period, mid-cap stocks continued to
lag their larger counterparts substantially. For most of the reporting period,
investors continued to favor large companies with predictable earnings and
tended to avoid mid-sized companies with shorter track records. In April,
however, many mid-cap stocks began to rally as investors became increasingly
attracted by their valuation levels. In a global economic environment currently
characterized by fewer concerns, investors appear to have become somewhat more
comfortable with stocks other than the largest cap stocks.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus MidCap Index Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Steven Falci and Jocelin Reed, Portfolio Managers
How did Dreyfus MidCap Index Fund perform
relative to its benchmark?
For the six-month period ended April 30, 1999, Dreyfus MidCap Index Fund
produced a total return of 18.58%.1 The Standard & Poor's MidCap 400 Index ("S&P
400") produced a 18.86% return for the same time period.2 The difference in
returns is accounted for by transaction costs and other Fund operating expenses.
What is the Fund's investment approach?
We seek to match the total return of the S&P 400. To reach that goal, the Fund
generally invests in all 400 stocks in the S&P 400, in proportion to their
weighting in the index. Often considered a barometer for the mid-cap stock
market in general, the S&P 400 is composed of 400 stocks of medium-size domestic
and some Canadian companies with market capitalizations ranging between $50
million and $10 billion. Generally speaking, its contains 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 was the first
benchmark of this mid-cap stock market.
Dreyfus S&P 400 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. The Fund does not attempt to manage market volatility.
Compared to larger, more established companies, midsize companies are subject to
more erratic market movements and carry additional risks because their earnings
tend to be less predictable and their stocks less liquid.
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
What other factors influenced the Fund's performance?
Continuing the trend that has existed for some time now, the broad stock market
has been driven higher by an increasingly narrow list of large-cap growth
stocks. The second best performing capitalization range has been mid-cap stocks,
followed by small-caps. Within these three market capitalization ranges, stocks
utilizing a growth-oriented investment strategy have performed better than those
using a value-oriented strategy.
The largest gains within the S&P 400 during the period came from technology
stocks, especially those in the communications equipment, software and computer
services industries. In addition, the transportation industry provided strong
returns, including railroad, airline and air freight companies. And finally,
many of the Index's holdings within the financial services group, including
investment management and consumer finance companies, reported robust gains.
On the other hand, the poorest performing returns of the Index, and therefore of
the Fund as well, originated from stocks held in electronics component
distributors, another area within the ever-growing technology sector. Several
diversified manufacturing companies within the capital goods sector also
provided disappointing returns, as did a few healthcare distributors.
What is the Fund's current strategy?
Because this is an index fund and its goal is to replicate the returns of its
benchmark, its strategy is to mirror the composition of the S&P 400. To
understand how index investing works, it's important to recognize the
differences associated with a passive index manager and an active manager. While
both managers seek superior returns, the passive index manager does not make
decisions about buying and selling stocks based on economic, financial and
market conditions. Instead, the passive manager buys and holds the stocks in the
index in an effort to match its returns.
4
<PAGE>
A key advantage of indexing is lower costs incurred for professional research.
Security selection is based on that of the index, helping the Fund avoid costly
proprietary research. Another notable characteristic of an index fund derives
from its buy-and-hold strategy, which may result in lower transaction costs and
fewer realized, taxable capital gains. Lower costs mean more of the Fund's
return can be paid to shareholders, and fewer realized capital gains may
translate into lower income taxes for investors.
May 13, 1999
1 Total return includes reinvestment of dividends and any capital gains paid.
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 broad-based index of 400 companies
with market capitalizations generally ranging from $50 million to $10
billion and is a widely accepted, unmanaged index of overall mid-cap stock
market performance.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Common Stocks--97.2% Shares Value ($)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Basic Industries--6.7%
Airgas 22,400 a 263,200
Albemarle 14,800 325,600
American Standard 22,100 a 1,011,075
Bowater 16,910 906,799
Cabot 21,500 580,500
Chesapeake 6,791 220,708
Clayton Homes 45,470 505,854
Consolidated Papers 28,442 860,371
Crompton & Knowles 22,676 459,189
Cytec Industries 13,600 a 386,750
Dexter 7,343 301,522
Ethyl 26,200 134,275
Ferro 11,179 309,519
Fuller (H.B.) 4,442 302,611
GenCorp 13,051 301,804
Georgia Gulf 9,779 155,853
Georgia Pacific (Timber Group) 27,400 705,550
Glatfelter (P.H.) 13,200 169,125
Granite Construction 8,725 249,208
Hanna (M.A.) 15,602 252,557
IMC Global 35,922 898,050
Jacobs Engineering Group 8,021 a 316,328
Lawter International 10,246 122,952
Longview Fibre 16,236 211,068
Lubrizol 17,288 478,662
Lyondell Petrochemical 24,238 472,641
Minerals Technologies 6,900 372,600
NCH 1,717 93,577
Olin 14,640 214,110
RPM 34,813 489,558
Rayonier 8,800 401,500
Schulman (A.) 10,125 177,188
Solutia 35,000 853,125
Sonoco Products 31,893 823,238
Southdown 12,041 771,377
Sybron International 32,400 a 897,075
USG 15,700 916,488
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Basic Industries (continued)
Unisource Worldwide 22,100 179,563
Vulcan Materials 31,600 1,508,900
Wausau-Mosinee Paper 17,113 282,365
Wellman 9,761 139,704
Witco 18,116 345,336
19,367,475
Capital Goods--29.2%
ACNielsen 18,000 a 501,750
ADC Telecommunications 42,312 a 2,023,043
AGCO 18,700 184,663
AMETEK 10,022 228,627
Albany International, Cl. A 9,316 225,913
Allied Waste Industries 57,400 1,015,263
Altera 30,604 a 2,211,139
American Power Conversion 30,100 a 993,300
American Water Works 25,300 719,469
Analog Devices 50,826 a 1,785,263
Apollo Group, Cl. A 24,600 a 608,850
Arrow Electronics 30,062 a 546,753
Atmel 31,300 a 571,225
Avnet 11,204 475,470
Cadence Design System 69,710 a 945,442
Cambridge Technology Partners 18,400 a 265,650
Cintas 34,820 2,393,875
Cirrus Logic 19,028 a 134,385
Citrix Systems 26,800 a 1,139,000
Comdisco 47,776 1,257,106
Comverse Technology 21,150 a 1,356,244
Convergys 47,900 a 892,138
Cordant Technologies 11,542 532,375
Covance 18,400 a 403,650
Cypress Semiconductor 27,118 a 277,960
Diebold 21,801 524,587
Donaldson 15,108 338,042
Electronic Arts 19,200 a 975,600
FORE Systems 35,000 a 1,181,250
Federal Signal 14,213 351,772
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Common Stocks--97.2% Shares Value ($)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods (continued)
First Health Group 19,060 a 310,916
Fiserv 25,800 a 1,510,913
Flowserve 12,015 a 223,779
GTECH Holdings 12,900 a 336,206
Gilead Sciences 11,500 a 529,719
Gulfstream Aerospace 22,700 a 1,106,625
Harsco 14,046 460,884
Hubbell 20,580 983,981
Information Resources 8,909 a 69,045
Informix 56,500 a 409,625
Intergrated Device Technology 26,000 a 191,750
Intuit 18,800 a 1,619,150
Jabil Circuit 25,800 a 1,201,313
Kaydon 10,088 340,470
Keane 22,100 a 548,356
Kelly Services, Cl. A 11,585 293,245
Kennametal 9,400 249,688
Legato Systems 11,900 a 481,206
Lexmark International Group, Cl. A 20,600 a 2,544,100
Linear Technology 47,280 2,689,050
Litton Industries 14,200 a 889,275
MagneTek 9,926 a 107,325
Manpower 24,900 563,363
Mark IV Industries 17,007 304,000
Maxim Integrated Products 41,900 a 2,346,400
Mentor Graphics 20,609 a 249,884
Microchip Technology 16,100 a 563,500
Modis Professional Services 35,200 a 407,000
Molex 48,763 1,572,607
NCR 30,800 a 1,262,800
NOVA 22,700 a 590,200
Network Associates 40,900 a 541,925
Nordson 5,268 317,397
Ogden 15,500 400,094
Olsten 25,550 172,463
Pentair 13,340 626,980
Pittston Brinks Group 12,900 340,238
8
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods (continued)
Platinum Technology 31,700 a 808,350
Policy Management Systems 11,354 a 356,941
Precision Castparts 7,623 325,883
Premark International 19,400 714,163
QUALCOMM 22,500 a 4,500,000
Quantum 52,906 a 945,695
Quintiles Transnational 34,980 a 1,418,876
Rational Software 26,900 a 796,913
Robert Half International 28,750 a 686,406
Rollins 9,605 162,084
SCI Systems 18,900 a 719,381
SPX 9,700 a 633,531
Sanmina 17,800 a 1,181,475
Sensormatic Electronics 23,621 a 283,452
Sequa, Cl. A 3,236 a 183,441
Sequent Computer Systems 13,782 a 150,741
Siebel Systems 27,900 a 1,072,406
Sotheby's Holdings, Cl. A 17,918 763,755
Sterling Commerce 30,211 a 945,982
Sterling Software 26,100 a 539,944
Stewart & Stevenson Services 8,826 90,467
Stewart Enterprises 34,500 685,688
Storage Technology 31,426 a 606,915
Structural Dynamics Research 11,469 a 222,929
Sundstrand 17,226 1,235,966
SunGuard Data Systems 35,400 a 1,130,588
Symantec 17,476 a 347,336
Symbol Technologies 18,411 879,125
Synopsys 22,100 a 1,041,463
Tech Data 16,100 a 376,338
Tecumseh Products, Cl. A 6,600 403,425
Teleflex 11,800 514,038
Teradyne 26,444 a 1,247,826
Trinity Industries 13,551 471,744
UCAR International 14,100 a 323,419
Viad 31,300 1,034,856
Vishay Intertechnology 21,269 a 370,878
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods (continued)
Vitesse Semiconductor 23,200 a 1,074,450
Watts Industries, Cl. A 8,382 128,873
Xilinx 45,432 a 2,072,835
York International 12,550 517,688
84,381,542
Consumer Cyclical--17.6%
Abercrombie & Fitch, Cl. A 16,200 a 1,541,025
Arvin Industries 8,168 299,153
Bandag 6,900 219,938
Banta 9,086 193,645
Barnes & Noble 21,600 a 750,600
Bed Bath & Beyond 43,800 a 1,563,113
Belo (A.H.), Cl. A 37,864 818,809
Best Buy 63,400 a 3,027,350
BJ's Wholesale Club 23,514 a 624,591
Bob Evans Farms 12,844 235,206
Borders Group 24,200 a 349,388
Borg-Warner Automotive 8,300 471,025
Brinker International 20,671 a 571,036
Buffets 14,100 a 141,000
Burlington Industries 18,100 a 147,063
CBRL Group 19,225 388,105
Callaway Golf 23,600 355,475
Carlisle Cos. 9,532 467,068
Chris-Craft Industries 10,485 a 492,795
Circus Circus Enterprises 29,673 a 624,988
Claire's Stores 16,052 531,723
CompUSA 29,300 a 205,100
Dollar Tree Stores 18,600 678,900
Family Dollar Stores 54,170 1,306,851
Fastenal 11,900 568,225
Federal-Mogul 22,117 970,383
Furniture Brands International 16,300 408,519
General Nutrition 21,400 a 354,438
HON Industries 19,422 524,394
Hannaford Brothers 13,300 580,213
Harley-Davidson 48,024 2,863,431
10
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Cyclical (continued)
Heilig-Meyers 18,770 110,274
Houghton Mifflin 9,506 424,205
International Game Technology 33,776 599,524
Jones Apparel Group 33,000 a 1,089,000
Lands' End 9,548 a 365,211
Lear 20,900 a 958,788
Lee Enterprises 14,000 400,750
Leggett & Platt 61,792 1,425,078
Lone Star Steakhouse/Saloon 12,300 a 133,763
Media General, Cl. A 8,400 436,800
Meritor Automotive 21,700 459,769
Micro Warehouse 11,000 a 186,313
Miller (Herman) 26,960 537,515
Modine Manufacturing 9,320 291,250
Mohawk Industries 18,900 609,525
Nine West Group 10,700 a 304,950
OEA 6,488 63,664
Office Depot 115,752 a 2,546,544
OfficeMax 39,300 a 397,913
Outback Steakhouse 23,150 a 829,059
Papa John's International 9,200 a 369,725
Payless ShoeSource 10,600 a 513,438
Promus Hotel 26,923 a 969,228
Reynolds & Reynolds, Cl. A 24,352 555,530
Ross Stores 14,700 675,281
Ruddick 14,600 258,238
Saks 45,030 a 1,274,912
Sbarro 6,400 167,600
Scholastic 5,200 a 245,863
Shaw Industries 44,232 801,705
Snyder Communications 21,600 634,500
Standard Register 8,607 262,514
Starbucks 56,100 a 2,072,194
Superior Industries International 8,600 215,000
TCA Cable TV 15,596 776,876
Tiffany & Co. 10,938 918,792
U.S. Foodservice 15,200 a 639,350
The Fund 11
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Cyclical (continued)
Unifi 19,037 266,518
Univision Communications, Cl. A 27,900 a 1,614,713
Wallace Computer Services 13,114 302,442
Warnaco Group, Cl. A 18,700 499,056
Washington Post, Cl. B 3,169 1,819,006
Westpoint Stevens 17,800 a 609,650
50,905,576
Consumer Staples--3.5%
Church & Dwight 6,088 260,643
Dean Foods 12,677 452,410
Dial 32,400 1,101,600
Dole Food 18,543 588,740
Dreyers Grand Ice Cream 8,628 117,557
Enesco Group 5,078 106,638
Flowers Industries 31,425 667,781
Hormel Foods 23,100 848,925
IBP 29,200 591,300
Imation 12,800 a 226,400
International Multifoods 5,877 130,029
Interstate Bakeries 22,700 505,075
Lancaster Colony 13,199 389,371
Lance 9,445 131,049
McCormick & Co. 22,736 689,185
Smucker (J.M.), Cl. A 9,220 198,230
Suiza Foods 11,000 a 413,188
Tyson Foods, Cl. A 72,566 1,501,209
Universal 10,466 266,229
Universal Foods 16,028 336,588
Vlasic Foods International 14,300 a 117,081
Whitman 31,700 519,088
10,158,316
Energy--6.6%
AGL Resources 18,162 330,321
BJ Services 22,670 a 606,423
El Paso Energy 37,800 1,389,150
ENSCO International 43,100 800,044
Global Marine 54,500 a 810,688
12
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Energy (continued)
Indiana Energy 9,425 201,459
KN Energy 21,550 444,469
Keyspan Energy 46,094 1,233,015
LG&E Energy 40,714 888,074
MCN 24,880 496,045
Murphy Oil 14,082 660,974
Nabors Industries 33,600 a 690,900
National Fuel Gas 12,137 530,994
Noble Affiliates 17,977 576,388
Noble Drilling 41,200 a 808,550
Ocean Energy 52,120 a 485,368
Parker Drilling 24,237 a 96,948
Pennzoil-Quaker State 24,437 316,154
Pioneer Natural Resources 31,500 368,156
Questar 25,896 470,984
Ranger Oil 39,582 a 205,332
Smith International 15,110 a 678,061
Tidewater 17,705 469,183
Tosco 48,169 1,288,521
Transocean Offshore 31,600 938,125
Ultramar Diamond Shamrock 27,500 634,219
UtiliCorp United 28,350 692,803
Valero Energy 17,676 394,396
Varco International 20,330 a 229,983
Washington Gas Light 14,460 340,714
Weatherford International 32,023 a 1,084,779
19,161,220
Health Care--7.9%
Acuson 8,595 a 131,074
Agouron Pharmaceuticals 10,000 a 590,625
Apria Healthcare Group 16,200 a 253,125
Beckman Coulter 8,912 429,447
Bergen Brunswig, Cl. A 42,876 814,644
Beverly Enterprises 32,200 a 209,300
Biogen 23,052 a 2,191,381
Carter-Wallace 14,051 246,771
Centocor 22,197 a 984,992
The Fund 13
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Health Care (continued)
Chiron 56,180 a 1,130,623
Concentra Managed Care 14,800 a 200,725
DENTSPLY International 16,500 432,094
Forest Laboratories 26,000 a 1,157,000
Foundation Health Systems, Cl. A 38,420 a 530,676
Genzyme 25,358 a 957,265
Health Management Associates, Cl. A 79,100 a 1,235,938
Hillenbrand Industries. 20,900 980,994
ICN Pharmaceuticals 24,100 796,806
IVAX 34,650 a 454,781
Lincare Holdings 18,300 a 542,138
Medimmune 16,700 a 920,588
Mylan Laboratories 40,498 918,798
Omnicare 28,100 676,156
Oxford Health Plans 25,200 a 502,425
PSS World Medical 22,300 a 217,425
PacifiCare Health Systems, Ser. B 14,336 a 1,143,744
Perrigo 23,000 a 175,375
Quorum Health Group 22,700 a 280,913
Sepracor 9,000 a 760,500
Steris 21,400 a 379,850
Stryker 30,350 1,857,041
Total Renal Care Holdings 25,400 a 352,425
Trigon Healthcare 13,300 a 422,275
22,877,914
Interest Sensitive--15.3%
AFLAC 83,368 4,522,670
Ambac Financial Group 21,900 1,322,213
American Financial Group 19,159 695,711
Associated Banc-Corp 19,925 724,772
Astoria Financial 17,200 862,150
CCB Financial 12,700 a 733,425
Charter One Financial 52,734 1,647,938
City National 14,357 554,539
Concord EFS 40,100 1,338,338
Dime Bancorp 35,900 827,944
14
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Interest Sensitive (continued)
E Trade Group 36,100 a 4,169,550
Edwards (A.G.) 29,774 1,042,090
Everest Reinsurance Holdings 15,800 478,938
FINOVA Group 19,400 937,263
First Security 59,382 1,128,258
First Tennessee National 40,244 1,735,523
First Virginia Banks 15,809 789,462
Greenpoint Financial 33,600 a 1,176,000
HSB Group 9,244 350,117
Hibernia, Cl. A 49,100 653,644
Horace Mann Educators 13,400 304,850
Investment Technology Group 9,200 a 318,550
Keystone Financial 16,200 520,425
Marshall & Iisley 33,391 2,337,370
Mercantile Bankshares 22,451 830,687
North Fork Bancorp 44,800 1,008,000
Old Kent Financial 33,105 1,564,211
Old Republic International 42,850 838,253
PMI Group 9,600 535,800
Pacific Century Financial 25,170 547,448
Paine Webber Group 44,950 2,109,841
Protective Life 20,300 a 795,506
Provident Financial Group 13,500 565,313
ReliaStar Financial 28,700 1,054,725
Sovereign Bancorp 50,100 682,613
T. Rowe Price Associates 37,800 1,424,588
TCF Financial Corp. 27,300 791,700
Wilmington Trust 10,500 645,094
Zions Bancorporation 24,600 1,640,513
44,206,032
Mining and Metals--.7%
AK Steel Holding 18,500 481,000
Carpenter Technology 6,944 217,434
Cleveland-Cliffs 3,468 138,070
MAXXAM 2,200 a 126,088
Martin Marietta Materials 14,600 902,463
The Fund 15
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Mining and Metals (continued)
Oregon Steel Mills 8,068 132,114
Ryerson Tull 7,800 176,963
2,174,132
Transportation--1.4%
Airborne Freight 15,138 484,416
Alaska Air Group 8,187 a 360,740
Alexander & Baldwin 14,057 305,740
Arnold Industries 7,900 125,413
CNF Transportation 15,000 655,313
Comair Holdings 30,850 680,628
GATX 15,546 534,394
Hunt (J.B.) Transport 11,200 233,100
Newport News Shipbuilding 11,100 290,681
Overseas Shipholding Group 11,570 144,625
Wisconsin Central Transportation 16,100 a 297,347
4,112,397
Utilities--8.3%
Aliant Communications 11,168 494,184
Allegheny Energy 38,422 1,308,749
Black Hills 6,792 153,669
CMP Group 10,215 197,916
Cincinnati Bell 42,900 970,613
Cleco 7,120 219,830
Comsat 16,436 534,170
Conectiv 33,699 806,670
DPL 50,600 904,475
Energy East 39,776 1,051,578
Florida Progress 30,516 1,174,866
Hawaiian Electric Industries 10,029 356,656
IPALCO Enterprises 28,202 650,409
Idacorp 11,883 374,315
Illinova 22,576 592,620
Interstate Energy 24,279 699,539
Kansas City Power & Light 19,480 521,090
MidAmerican Energy Holding 18,700 601,906
Minnesota Power 22,774 479,677
Montana Power 17,315 1,291,050
16
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities (continued)
Nevada Power 16,111 415,865
New England Electric System 18,816 931,392
Nisource 40,296 1,118,214
Northeast Utilities 41,060 a 656,960
OGE Energy 25,346 600,383
Pinnacle West Capital 26,636 1,033,810
Potomac Electric Power 37,283 1,090,528
Public Service of New Mexico 13,094 234,055
Puget Sound Power & Light 26,590 656,441
SCANA 32,564 765,254
TECO Energy 41,518 884,852
Telephone & Data Systems 19,200 1,149,600
Wisconsin Energy 36,187 972,526
23,893,862
Total Common Stocks
(cost $239,221,312) 281,238,466
- ------------------------------------------------------------------------------------------
Principal
Short-Term Investments--2.8% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------
U.S. Government Agency
Federal Home Loan Bank,
4.80%, 5/3/1999 7,123,000 7,121,100
U.S. Treasury Bills,
4.38%, 5/6/1999 1,000,000 b 999,376
Total Short-Term Investments
(cost $8,120,492) 8,120,476
- ------------------------------------------------------------------------------------------
Total Investments (cost $247,341,804) 100.0% 289,358,942
Cash and Receivables (Net) .0% 49,499
Net Assets 100.0% 289,408,441
<FN>
a Non-income producing.
b Partially held by the custodian in a segregated account as collateral
for open financial futures positions.
See notes to financial statements.
</FN>
</TABLE>
The Fund 17
<PAGE>
STATEMENT OF FINANCIAL FUTURES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Market Value Unrealized
Covered Appreciation
Financial Futures Purchased Contracts by Contracts ($) Expiration at 4/30/99 ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's MidCap 400 40 7,922,000 June '99 211,100
</TABLE>
See notes to financial statements.
18
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
Cost Value
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments 247,341,804 289,358,942
Cash 3,749
Receivable for investment securities sold 1,794,328
Receivable for shares of Common Stock subscribed 505,124
Dividends receivable 217,447
291,879,590
- ------------------------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation 57,039
Due to Distributor 57,039
Payable for investment securities purchased 1,880,145
Payable for shares of Common Stock redeemed 377,326
Payable for future variation margin--Note 4(a) 99,600
2,471,149
- ------------------------------------------------------------------------------------------------
Net Assets ($) 289,408,441
- ------------------------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 222,321,611
Accumulated undistributed investment income--net 675,471
Accumulated net realized gain (loss) on investments 24,183,121
Accumulated net unrealized appreciation (depreciation)
on investments (including $211,100 net unrealized
appreciation on financial futures)--Note 4(b) 42,228,238
- ------------------------------------------------------------------------------------------------
Net Assets ($) 289,408,441
- ------------------------------------------------------------------------------------------------
Shares Outstanding
(200 million shares of $.001 par value Common Stock authorized) 12,178,894
Net Asset Value, offering and redemption price per share ($)--Note 3(c) 23.76
See notes to financial statements.
</TABLE>
The Fund 19
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
Investment Income ($)
- -------------------------------------------------------------------------------
Income:
Cash dividends 1,576,861
Interest 331,447
Total Income 1,908,308
Expenses:
Management fee--Note 3(a) 333,102
Shareholder servicing costs--Note 3(b) 333,102
Interest expense--Note 2 1,104
Loan commitment fees--Note 2 546
Total Expenses 667,854
Investment Income--Net 1,240,454
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments 25,882,752
Net realized gain (loss) on financial futures 2,759,376
Net Realized Gain (Loss) 28,642,128
Net unrealized appreciation (depreciation) on investments
[including ($1,673,600) net unrealized
depreciation on financial futures] 15,946,715
Net Realized and Unrealized Gain (Loss) on Investments 44,588,843
Net Increase in Net Assets Resulting From Operations 45,829,297
See notes to financial statements.
20
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income-net 1,240,454 2,671,716
Net realized gain (loss) on investments 28,642,128 51,907,585
Net unrealized appreciation (depreciation)
on investments 15,946,715 (38,375,039)
Net Increase (Decrease) in Net Assets
Resulting from Operatons 45,829,297 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 86,864,292 196,809,454
Dividends reinvested 52,323,673 16,175,235
Cost of shares redeemed (89,101,307) (179,206,556)
Redemption fee 11,123 412,437
Increase (Decrease) in Net Assets
from Capital Stock Transactions 50,097,781 34,190,570
Total Increase (Decrease) in Net Assets 37,636,876 30,754,794
- -----------------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 251,771,565 221,016,771
End of Period 289,408,441 251,771,565
Undistributed investment income--net 675,471 2,289,671
- -----------------------------------------------------------------------------------------------
Capital Share Transactions (Shares):
Shares sold 3,793,147 7,389,574
Shares issued for dividends reinvested 2,377,268 654,969
Shares redeemed (3,751,684) (6,607,784)
Net Increase (Decrease) in Shares Outstanding 2,418,731 1,436,759
</TABLE>
See notes to financial statements.
The Fund 21
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Certain information reflects financial results for a single fund share. Total
return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the Fund's financial
statements.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
----------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value,
beginning of period 25.80 26.55 21.32 19.40 17.14 17.63
Investment Operations:
Investment income--net .13 .27 .25 .28 .29 .26
Net realized and unrealized
gain (loss) on investments 4.16 1.16 6.25 2.81 3.00 .08
Total from Investment Operations 4.29 1.43 6.50 3.09 3.29 .34
Distributions:
Dividends from investment
income--net (.31) (.23) (.27) (.30) (.28) (.27)
Dividends from net realized
gain on investments (6.02) (1.99) (1.00) (.87) (.75) (.56)
Total Distributions (6.33) (2.22) (1.27) (1.17) (1.03) (.83)
Redemtion fee added to
paid-in capital -- .04 -- -- -- --
Net asset value, end of period 23.76 25.80 26.55 21.32 19.40 17.14
- --------------------------------------------------------------------------------------
Total Return (%) 18.58a 5.88 32.02 16.65 20.78 1.89
- --------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average
net assets .25a .50 .50 .50 .50 .40
Ratio of net investment income
to average net assets .46a .98 1.07 1.49 1.80 1.68
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- .09 .17 .35 .43
Portfolio Turnover Rate 25.89a 67.85 20.15 14.66 20.46 19.81
- --------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 289,408 251,772 221,017 170,987 122,982 75,404
<FN>
a Not annualized.
See notes to financial statements.
</FN>
</TABLE>
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus MidCap Index Fund (the "Fund") is registered under the Investment
Company Act of 1940, 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. 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 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.
The Fund 23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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 ("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 April
30, 1999 was approximately $45,300, with a related weighted average annualized
interest rate of 4.91%.
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, commitment fees, interest, fees
and expenses of non-interested
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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). 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 reimburseable 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
April 30, 1999, the Fund was charged $333,102 pursuant to the Shareholder
Services Plan.
(c) A 1% redemption fee is charged and retained by the Fund on shares redeemed
within a six month period following the date of issuance, including redemptions
made through the use of the Fund 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
April 30, 1999, amounted to $76,296,389 and $66,632,902, respectively.
The Fund 25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 April 30, 1999, are set
forth in the Statement of Financial Futures.
(b) At April 30, 1999, accumulated net unrealized appreciation on investments
and financial futures was $42,228,238, consisting of $60,874,781 gross
unrealized appreciation and $18,646,543 gross unrealized depreciation.
At April 30, 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).
26
<PAGE>
<PAGE>
NOTES
<PAGE>
<PAGE>
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
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(c) 1999 Dreyfus Service Corporation 113SA994
