DREYFUS MIDCAP INDEX FUND
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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, 1998. As you know, it was a
turbulent year in the stock market, particularly for mid-cap stocks. Even so,
your Fund produced a total return of 5.88%,* as compared with a total return of
6.71% for the Standard & Poor's MidCap 400 Index, the Fund's benchmark.** The
difference in performance is accounted for by transaction costs and other Fund
expenses.
ECONOMIC REVIEW
So far in 1998, the main regions of the world have had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year. The U.S. economy cooled enough over the months that the Fed decided to
stand pat. Evidence of economic cooling continued to accumulate and worries
about the world economy intensified. Financial stresses pushed the Fed to ease
credit in both late September and mid-October. After many years of subpar
economic growth, continental Europe moved into a sustained economic expansion.
The overall European economy benefited as interest rates in peripheral countries
such as Spain and Italy fell, approaching the lower levels established by
Germany, on the eve of currency unification. Unlike the U.S., Europe has
substantial excess capacity of productive plant and labor. In Asia, weak
economies were pervasive as a result of the Asian financial crisis. The Latin
American economies weakened as the financial stresses spread throughout that
region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation helped the consumer sector as more of the growth in consumer income
was left over after inflation to buy goods and services. Consumers benefited
from a combination of good growth in income after inflation, a strong labor
market and past increases in the price of assets they owned.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports. One result of this industrial weakness was to cool off a
U.S. economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for
commodity-exporting countries throughout the world. The effect on Europe and the
U.S. has been to lower expectations of profit growth and drive down bond yields
Evidence of a weaker world economy accumulated as the financial stresses
continued. A worsened financial crisis occurred between the Russian default in
mid-August and the fallout from the Long-Term Capital Management (hedge fund)
crisis through early October. However, proactive steps were taken to stabilize
the Japanese banks, design a support package for Brazil and ease monetary
policy. The prospects for world economic weakness and monetary ease in the major
countries will be powerfully influenced by whether foreign financial stresses
calm down or intensify in the coming months. There appears to be a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
MARKET OVERVIEW
The 12 months ended October 31, 1998, encompassed some very different market
phases. There was stock market strength during the early part of the period.
Then small-cap indices started to erode in the spring and were joined by
large-cap indices by midsummer. A sharp decline until the end of August was
followed by a brief rebound and then a renewed decline amid financial fears
until early October. The last few weeks of the fiscal year saw a strong rally in
response to the easing of monetary policy. Over the 12-month period, the total
return on the Standard & Poor's Stock Price Index was 22.01%. Returns on mid-cap
and small-cap stock indices tended to be weaker than on large-caps, with a
negative total return on small-cap indices.
Three key trends influenced stock market behavior during the fiscal year.
First, the Federal Reserve kept the Federal Funds rate flat at 5.5% for nearly
11 months of the fiscal year, but then eased policy twice. Second, weakness in
emerging country economies contributed to declining commodity prices and a drop
in long-term Treasury bond yields to multidecade lows. Third, expectations for
corporate profits dropped, first in the sectors sensitive to Asian developments
such as oil, basic materials and exports, and then for a broader list of stocks
The trigger for the sharp decline in stocks in August appeared to be the
Russian default in the summer of 1998. This resulted in deepening concerns about
weaker economic growth and corporate profits. There was also a global margin
call on risky assets held by hedge funds and financial institutions. This raised
the cost of debt financing for many corporations and many emerging countries.
Expectations for economic activity in emerging countries in Asia and Latin
America shifted down sharply while expectations for U.S. corporate profits
weakened somewhat. Despite the fall in Treasury bond yields, financial stocks
led the summer selloff due to concerns about financial contagion among emerging
countries and potential loan losses by financial institutions. However, in the
last few weeks of the fiscal year, these fears began to ebb and the stock market
rebounded.
The erosion of expectations about average corporate profit growth over the
last year contributed to an outperformance by a small group of super-cap growth
stocks for much of the fiscal year. Investors had more confidence in the
prospect for strong persistent earnings growth for this small group of stocks
than for the broad market. Value stocks, which often have greater cyclical
sensitivity to earnings fluctuations, lagged behind these super-growth stocks.
In addition, many of the financial stocks that fall into the value category fell
sharply following the Russian default and global margin call concerns.
The fiscal year ended October 31, 1998 was characterized by very different
performances of the various market sectors. Super-cap growth stocks did best,
followed by large-cap stocks in general with mid-cap and small-cap stocks
lagging behind. For example, the total return for the fiscal year on the Russell
1000 Index with a heavy large-cap representation was 19.71%, while the Russell
1000 Growth Index returned 24.64% and the Russell 1000 Value Index returned
14.83% . The return on the Russell Midcap Index was 4.46%, while the small-cap
Russell 2000 Index return was -11.84%.***
PORTFOLIO FOCUS
The Dreyfus MidCap Index Fund is designed to provide returns in line with the
S&P MidCap 400 Index. Stocks in this category, as noted earlier, had a difficult
year, significantly underperforming large-capitalization stocks. A strong rally
in mid-cap stocks in October helped year-over-year returns significantly.
We thank you for being an investor in this Dreyfus Fund.
Sincerely,
[signature logo Steven A. Falci]
Steven A. Falci
Portfolio Manager
November 24, 1998
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 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.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Russell 1000 Index measures
the performance of the 1,000 largest companies in the Russell 3000 Index, which
represent approximately 89% of the total market capitalization of the Russell
3000 Index. The Russell 1000 Growth Index measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher forecasted
growth values. The Russell 1000 Value Index measures the performance of those
Russell 1000 companies with lower price-to-book ratios and lower forecasted
growth values. The Russell Midcap Index consists of the bottom 800 securities in
the Russell 1000 Index as ranked by total market capitalization and is a widely
accepted measure of medium-cap stock market performance. The Russell 2000 Index
is composed of the 2,000 smallest companies in the Russell 3000 Index. The
Russell 3000 Index is composed of 3,000 of the largest U.S. companies by market
capitalization. All indices are unmanaged and include reinvested dividends.
DREYFUS MIDCAP INDEX FUND OCTOBER 31, 1998
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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
Dollars
$35,410
Standard & Poor's 500 Composite Stock Price Index*
$31,597
Standard & Poor's MidCap 400 Index*
$29,489
Dreyfus MidCap Index Fund
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
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One Year Ended Five Years Ended From Inception (6/19/91)
October 31, 1998 October 31, 1998 to October 31, 1998
__________________ __________________ __________________
5.88% 14.95% 15.81%
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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.
DREYFUS MIDCAP INDEX FUND
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STATEMENT OF INVESTMENTS OCTOBER 31, 1998
Shares COMMON STOCKS--90.6% Value
________________ _______________
Basic Industries--5.9%
19,800 (a) Airgas . . . . . . . . . . . . . . $ 227,700
13,200 Albemarle . . . . . . . . . . . . 251,625
1,400 (a) American Standard . . . . . . . . 44,713
14,710 Bowater . . . . . . . . . . . . . 600,352
18,900 Cabot . . . . . . . . . . . . . . 530,381
11,089 Calgon Carbon . . . . . . . . . . 78,316
6,633 CalMat . . . . . . . . . . . . . . 155,461
5,891 Chesapeake . . . . . . . . . . . . 206,185
33,016 Clayton Homes . . . . . . . . . . 509,685
25,042 Consolidated Papers . . . . . . . 602,573
20,676 Crompton & Knowles . . . . . . . . 332,108
12,400 (a) Cytec Industries . . . . . . . . . 297,600
6,443 Dexter . . . . . . . . . . . . . . 188,458
23,200 Ethyl . . . . . . . . . . . . . . 127,600
10,079 Ferro . . . . . . . . . . . . . . 257,015
3,842 Fuller (H.B.) . . . . . . . . . . 158,002
11,551 GenCorp . . . . . . . . . . . . . 255,566
8,579 Georgia Gulf . . . . . . . . . . . 146,379
25,700 Georgia Pacific (Timber Group) . . 570,219
11,700 Glatfelter (P.H.) . . . . . . . . 144,056
7,625 Granite Construction . . . . . . . 254,008
13,802 Hanna (M.A.) . . . . . . . . . . . 202,717
31,722 IMC Global . . . . . . . . . . . . 824,772
7,121 (a) Jacobs Engineering Group . . . . . 232,323
9,446 Lawter International . . . . . . . 72,026
14,336 Longview Fibre . . . . . . . . . . 172,032
15,488 Lubrizol . . . . . . . . . . . . . 431,728
21,838 Lyondell Petrochemical . . . . . . 368,516
6,200 Minerals Technologies . . . . . . 282,488
1,517 NCH . . . . . . . . . . . . . . . 103,915
13,240 Olin . . . . . . . . . . . . . . . 366,583
27,813 RPM . . . . . . . . . . . . . . . 467,606
7,800 Rayonier . . . . . . . . . . . . . 305,663
9,625 Schulman (A.) . . . . . . . . . . 191,297
33,700 Solutia . . . . . . . . . . . . . 739,294
28,393 Sonoco Products . . . . . . . . . 805,651
10,641 Southdown . . . . . . . . . . . . 579,269
28,100 (a) Sybron International . . . . . . . 695,475
19,500 Unisource Worldwide . . . . . . . 179,156
9,400 Vulcan Materials . . . . . . . . . 1,115,075
16,113 Wausau-Mosinee Paper . . . . . . . 280,970
8,661 Wellman . . . . . . . . . . . . . 108,804
16,016 Witco . . . . . . . . . . . . . . 301,301
_____________
14,764,663
_____________
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Shares COMMON STOCKS (CONTINUED) Value
________________ _____________
Capital Goods--27.4%
16,500 AGCO . . . . . . . . . . . . . . . . 156,750
9,122 AMETEK . . . . . . . . . . . . . . . 193,272
15,900 (a) ACNielsen . . . . . . . . . . . . . 425,325
37,312 (a) ADC Telecommunications . . . . . . . 858,176
8,448 Albany International, Cl. A . . . . 154,176
Capital Goods (continued)
48,800 (a) Allied Waste Industries . . . . . . $ 1,055,300
27,104 (a) Altera . . . . . . . . . . . . . . . 1,128,204
61,000 America Online . . . . . . . . . . . 7,750,779
26,500 (a) American Power Conversion . . . . . 1,124,594
22,300 American Water Works . . . . . . . . 712,206
45,226 (a) Analog Devices . . . . . . . . . . . 898,867
26,562 (a) Arrow Electronics . . . . . . . . . 579,384
27,600 (a) Atmel . . . . . . . . . . . . . . . 319,125
10,704 Avnet . . . . . . . . . . . . . . . 532,524
59,010 (a) Cadence Design System . . . . . . . 1,261,339
15,800 (a) Cambridge Technology Partners . . . 349,575
27,220 Cintas . . . . . . . . . . . . . . . 1,456,270
17,628 (a) Cirrus Logic . . . . . . . . . . . . 171,322
11,700 (a) Citrix Systems . . . . . . . . . . . 829,238
42,276 Comdisco . . . . . . . . . . . . . . 652,636
50,800 (a) Compuware . . . . . . . . . . . . . 2,752,725
12,100 (a) Comverse Technology . . . . . . . . 556,600
10,142 Cordant Technologies . . . . . . . . 412,653
11,300 (a) Corrections Corporation of America . 217,525
16,100 (a) Covance . . . . . . . . . . . . . . 448,788
25,218 (a) Cypress Semiconductor . . . . . . . 280,550
37,204 Danaher . . . . . . . . . . . . . . 1,485,835
19,201 Diebold . . . . . . . . . . . . . . 598,831
13,608 Donaldson . . . . . . . . . . . . . 247,496
16,800 (a) Electronic Arts . . . . . . . . . . 690,900
12,713 Federal Signal . . . . . . . . . . . 305,907
17,560 (a) First Health Group . . . . . . . . . 404,978
22,800 (a) Fiserv . . . . . . . . . . . . . . . 1,060,200
10,915 (a) Flowserve . . . . . . . . . . . . . 196,470
28,200 (a) FORE Systems . . . . . . . . . . . . 440,625
11,500 (a) GTECH Holdings . . . . . . . . . . . 276,000
12,746 Harsco . . . . . . . . . . . . . . . 417,432
18,280 Hubbell . . . . . . . . . . . . . . 728,915
8,109 (a) Information Resources . . . . . . . 64,365
33,000 (a) Informix . . . . . . . . . . . . . . 168,094
22,800 (a) Intergrated Device Technology . . . 158,175
16,300 (a) Intuit . . . . . . . . . . . . . . . 823,150
9,088 Kaydon . . . . . . . . . . . . . . . 319,216
3,100 (a) Keane . . . . . . . . . . . . . . . 103,075
10,585 Kelly Services, Cl. A . . . . . . . 332,766
8,300 Kennametal . . . . . . . . . . . . . 172,225
18,500 (a) Lexmark International Group, Cl. A 1,293,844
21,340 Linear Technology . . . . . . . . . 1,272,398
12,800 (a) Litton Industries . . . . . . . . . 835,200
8,726 (a) MagneTek . . . . . . . . . . . . . . 110,711
22,400 Manpower . . . . . . . . . . . . . . 540,400
15,007 Mark IV Industries . . . . . . . . . 230,733
36,400 (a) Maxim Integrated Products . . . . . 1,299,025
12,000 (a) Medaphis . . . . . . . . . . . . . . 39,000
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Shares COMMON STOCKS (CONTINUED) Value
________________ ____________
Capital Goods (continued)
18,209 (a) Mentor Graphics . . . . . . . . . . $ 146,810
15,800 (a) Microchip Technology . . . . . . . . 427,588
2,200 (a) Modis Professional Services . . . . 38,775
43,563 Molex . . . . . . . . . . . . . . . 1,554,655
28,200 (a) NCR . . . . . . . . . . . . . . . . 948,225
19,200 (a) NOVA . . . . . . . . . . . . . . . . 554,400
36,100 (a) Networks Associates . . . . . . . . 1,534,250
4,568 Nordson . . . . . . . . . . . . . . 204,704
13,900 Ogden . . . . . . . . . . . . . . . 373,563
22,550 Olsten . . . . . . . . . . . . . . . 207,178
10,740 Pentair . . . . . . . . . . . . . . 404,093
11,400 Pittston Brinks Group . . . . . . . 339,150
2,900 (a) Platinum Technology . . . . . . . . 47,669
10,254 (a) Policy Management Systems . . . . . 465,916
6,723 Precision Castparts . . . . . . . . 295,812
17,200 Premark International . . . . . . . 545,025
19,400 (a) QUALCOMM . . . . . . . . . . . . . . 1,079,125
47,306 (a) Quantum . . . . . . . . . . . . . . 827,855
20,980 (a) Quintiles Transnational . . . . . . 949,345
25,650 (a) Robert Half International . . . . . 1,029,206
9,105 Rollins . . . . . . . . . . . . . . 157,061
8,500 (a) SPX . . . . . . . . . . . . . . . . 462,719
16,700 (a) SCI Systems . . . . . . . . . . . . 659,650
20,621 (a) Sensormatic Electronics . . . . . . 115,993
2,836 (a) Sequa, Cl. A . . . . . . . . . . . . 181,504
12,082 (a) Sequent Computer Systems . . . . . . 119,310
24,400 (a) Siebel Systems . . . . . . . . . . . 498,675
32,500 (a) Solectron . . . . . . . . . . . . . 1,860,625
15,818 Sotheby's Holdings, Cl. A . . . . . 342,064
25,411 (a) Sterling Commerce . . . . . . . . . 895,738
22,100 (a) Sterling Software . . . . . . . . . 578,744
7,726 Stewart & Stevenson Services . . . . 105,750
27,100 Stewart Enterprises . . . . . . . . 624,994
25,926 (a) Storage Technology . . . . . . . . . 866,901
10,069 (a) Structural Dynamics Research . . . . 144,742
15,726 Sundstrand . . . . . . . . . . . . . 738,139
28,900 (a) SunGuard Data Systems . . . . . . . 975,375
15,976 (a) Symantec . . . . . . . . . . . . . . 255,616
16,311 Symbol Technologies . . . . . . . . 729,917
18,600 (a) Synopsys . . . . . . . . . . . . . . 841,650
13,500 (a) Tech Data . . . . . . . . . . . . . 531,563
6,000 Tecumseh Products, Cl. A . . . . . . 312,000
10,400 Teleflex . . . . . . . . . . . . . . 402,350
23,344 (a) Teradyne . . . . . . . . . . . . . . 758,680
12,051 Trinity Industries . . . . . . . . . 447,393
30,600 (a) U.S. Filter . . . . . . . . . . . . 648,338
6,200 (a) UCAR International . . . . . . . . . 111,600
8,238 Varian Associates . . . . . . . . . 322,312
27,600 Viad . . . . . . . . . . . . . . . . 757,275
17,869 (a) Vishay Intertechnology . . . . . . . 270,269
Capital Goods (continued)
7,482 Watts Industries, Cl. A . . . . . . $ 137,482
20,066 (a) Xilinx . . . . . . . . . . . . . . . 896,072
11,350 York International . . . . . . . . . 427,044
___________
69,044,758
___________
Consumer Cyclical--12.7%
15,200 (a) Abercrombie & Fitch, Cl. A . . . . . . 603,250
6,768 Arvin Industries . . . . . . . . . . . 268,182
6,300 Bandag . . . . . . . . . . . . . . . . 222,863
8,186 Banta . . . . . . . . . . . . . . . . 203,627
19,000 (a) Barnes & Noble . . . . . . . . . . . . 619,875
38,600 (a) Bed Bath & Beyond . . . . . . . . . . 1,063,913
34,764 Belo (A.H.), Cl. A . . . . . . . . . . 632,270
27,900 (a) Best Buy . . . . . . . . . . . . . . . 1,339,200
10,507 (a) BJ's Wholesale Club . . . . . . . . . 377,595
11,544 Bob Evans Farms . . . . . . . . . . . 227,273
1,500 (a) Borders Group . . . . . . . . . . . . 38,063
6,500 Borg-Warner Automotive . . . . . . . . 304,688
18,371 (a) Brinker International . . . . . . . . 444,349
12,700 (a) Buffets . . . . . . . . . . . . . . . 137,319
17,300 (a) Burlington Industries . . . . . . . . 160,025
20,900 Callaway Golf . . . . . . . . . . . . 227,288
8,432 Carlisle Cos. . . . . . . . . . . . . 325,686
9,066 (a) Chris-Craft Industries . . . . . . . . 404,004
26,473 (a) Circus Circus Enterprises . . . . . . 296,167
14,152 Claire's Stores . . . . . . . . . . . 239,700
13,200 (a) CompUSA . . . . . . . . . . . . . . . 183,150
17,325 Cracker Barrel Old Country Store . . . 448,284
16,400 Dollar Tree Stores . . . . . . . . . . 632,425
47,870 Family Dollar Stores . . . . . . . . . 867,644
10,500 Fastenal . . . . . . . . . . . . . . . 379,313
14,817 Federal-Mogul . . . . . . . . . . . . 802,896
9,200 (a) General Nutrition . . . . . . . . . . 133,975
11,700 Hannaford Brothers . . . . . . . . . . 512,606
42,424 Harley-Davidson . . . . . . . . . . . 1,643,930
16,370 Heilig-Meyers . . . . . . . . . . . . 125,844
17,122 HON Industries . . . . . . . . . . . . 362,772
8,506 Houghton Mifflin . . . . . . . . . . . 331,734
31,476 International Game Technology . . . . 710,177
23,300 (a) Jones Apparel Group . . . . . . . . . 401,925
8,448 (a) Lands' End . . . . . . . . . . . . . . 144,144
1,600 (a) Lear . . . . . . . . . . . . . . . . . 51,400
12,400 Lee Enterprises . . . . . . . . . . . 337,125
54,692 Leggett & Platt . . . . . . . . . . . 1,278,426
10,900 (a) Lone Star Steakhouse/Saloon . . . . . 87,200
7,400 Media General, Cl. A . . . . . . . . . 331,150
19,200 Meritor Automotive . . . . . . . . . . 358,800
9,600 (a) Micro Warehouse . . . . . . . . . . . 209,400
24,160 Miller (Herman) . . . . . . . . . . . 533,030
8,220 Modine Manufacturing . . . . . . . . . 269,205
10,000 (a) Nine West Group . . . . . . . . . . . 126,875
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Shares COMMON STOCKS (CONTINUED) Value
________________ ____________
Consumer Cyclical (continued)
5,688 OEA . . . . . . . . . . . . . . . . 63,635
68,468 (a) Office Depot . . . . . . . . . . . . 1,711,700
34,600 (a) OfficeMax . . . . . . . . . . . . . 315,725
13,700 (a) Outback Steakhouse . . . . . . . . . 474,363
9,700 (a) Payless ShoeSource . . . . . . . . . 455,294
24,223 (a) Promus Hotel . . . . . . . . . . . . 772,108
21,552 Reynolds & Reynolds, Cl. A . . . . . 387,936
13,200 Ross Stores . . . . . . . . . . . . 429,000
13,000 Ruddick . . . . . . . . . . . . . . 252,688
39,330 (a) Saks . . . . . . . . . . . . . . . . 894,758
5,700 Sbarro . . . . . . . . . . . . . . . 133,950
4,500 (a) Scholastic . . . . . . . . . . . . . 177,469
34,032 Shaw Industries . . . . . . . . . . 591,306
7,907 Standard Register . . . . . . . . . 226,832
24,800 (a) Starbucks . . . . . . . . . . . . . 1,075,700
7,700 Superior Industries International . 201,644
13,896 TCA Cable TV . . . . . . . . . . . . 384,746
9,738 Tiffany . . . . . . . . . . . . . . 314,659
12,800 (a) U.S. Foodservice . . . . . . . . . . 608,000
6,712 (a) U.S. Office Products . . . . . . . . 51,599
17,137 Unifi . . . . . . . . . . . . . . . 289,187
12,114 Wallace Computer Services . . . . . 264,994
17,600 Warnaco Group, Cl. A . . . . . . . . 449,900
2,769 Washington Post, Cl. B . . . . . . . 1,470,339
16,400 (a) Westpoint Stevens . . . . . . . . . 466,375
___________
31,862,674
___________
Consumer Staples--3.8%
5,388 Church & Dwight . . . . . . . . . . 165,344
11,177 Dean Foods . . . . . . . . . . . . . 523,922
28,600 Dial . . . . . . . . . . . . . . . . 788,288
16,743 Dole Food . . . . . . . . . . . . . 504,383
7,528 Dreyers Grand Ice Cream . . . . . . 98,805
4,478 Enesco Group . . . . . . . . . . . . 113,629
11,016 First Brands . . . . . . . . . . . . 415,854
27,725 Flowers Industries . . . . . . . . . 568,363
20,800 Hormel Foods . . . . . . . . . . . . 677,300
25,700 IBP . . . . . . . . . . . . . . . . 695,506
11,300 (a) Imation . . . . . . . . . . . . . . 199,869
20,200 Interstate Bakeries . . . . . . . . 506,263
5,177 International Multifoods . . . . . . 107,746
11,999 Lancaster Colony . . . . . . . . . . 359,970
8,345 Lance . . . . . . . . . . . . . . . 159,598
20,436 McCormick & Co. . . . . . . . . . . 634,793
8,120 Smucker (J.M.), Cl. A . . . . . . . 178,640
64,266 Tyson Foods, Cl. A . . . . . . . . . 1,478,118
9,766 Universal . . . . . . . . . . . . . 362,563
14,228 Universal Foods . . . . . . . . . . 308,570
12,600 (a) Vlasic Foods International . . . . . 235,463
28,200 Whitman . . . . . . . . . . . . . . 604,538
___________
9,687,525
___________
Energy--6.4%
15,862 AGL Resources . . . . . . . . . . . 332,111
20,070 (a) BJ Services . . . . . . . . . . . . 410,181
33,500 El Paso Energy . . . . . . . . . . . 1,187,156
39,100 ENSCO International . . . . . . . . 525,406
48,100 (a) Global Marine . . . . . . . . . . . 595,238
8,325 Indiana Energy . . . . . . . . . . . 186,272
44,094 KeySpan Energy . . . . . . . . . . . 1,317,308
12,500 KN Energy . . . . . . . . . . . . . 621,094
36,014 LG&E Energy . . . . . . . . . . . . 949,869
21,980 MCN . . . . . . . . . . . . . . . . 424,489
12,482 Murphy Oil . . . . . . . . . . . . . 515,663
28,000 (a) Nabors Industries . . . . . . . . . 518,000
10,637 National Fuel Gas . . . . . . . . . 502,598
15,877 Noble Affiliates . . . . . . . . . . 519,972
36,500 (a) Noble Drilling . . . . . . . . . . . 627,344
7,800 (a) Ocean Energy . . . . . . . . . . . . 97,500
21,337 (a) Parker Drilling . . . . . . . . . . 105,351
7,100 Pioneer Natural Resources . . . . . 106,944
10,086 Quaker State . . . . . . . . . . . . 142,465
22,896 Questar . . . . . . . . . . . . . . 450,765
34,982 (a) Ranger Oil . . . . . . . . . . . . . 223,010
17,520 (a) Seagull Energy . . . . . . . . . . . 209,145
13,410 (a) Smith International . . . . . . . . 481,922
16,205 Tidewater . . . . . . . . . . . . . 458,804
43,469 Tosco . . . . . . . . . . . . . . . 1,219,849
27,900 Transocean Offshore . . . . . . . . 1,030,556
25,100 Ultramar Diamond Shamrock . . . . . 676,131
14,900 UtiliCorp United . . . . . . . . . . 535,469
15,576 Valero Energy . . . . . . . . . . . 389,400
17,930 (a) Varco International . . . . . . . . 193,868
12,160 Washington Gas Light . . . . . . . . 321,480
9,523 (a) Weatherford International . . . . . 258,907
___________
16,134,267
___________
Health Care--9.0%
7,795 (a) Acuson . . . . . . . . . . . . . . . 117,412
8,600 (a) Agouron Pharmaceuticals . . . . . . 333,250
31,400 Allegiance . . . . . . . . . . . . . 1,167,688
14,400 (a) Apria Healthcare Group . . . . . . . 58,500
7,912 Beckman Coulter . . . . . . . . . . 371,864
14,038 Bergen Brunswig, Cl. A . . . . . . . 685,230
28,700 (a) Beverly Enterprises . . . . . . . . 193,725
20,452 (a) Biogen . . . . . . . . . . . . . . . 1,421,414
12,551 Carter-Wallace . . . . . . . . . . . 222,780
19,597 (a) Centocor . . . . . . . . . . . . . . 872,067
49,380 (a) Chiron . . . . . . . . . . . . . . . 1,111,050
13,100 (a) Concentra Managed Care . . . . . . . 134,275
14,700 DENTSPLY International . . . . . . . 378,525
22,400 (a) Forest Laboratories . . . . . . . . 936,600
20,620 (a) Foundation Health . . . . . . . . . 242,285
21,958 (a) Genzyme . . . . . . . . . . . . . . 923,608
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Shares COMMON STOCKS (CONTINUED) Value
________________ ____________
Health Care (continued)
69,800 (a) Health Management Association . . . $ 1,243,313
18,800 Hillenbrand Industries . . . . . . . 1,112,725
33,250 (a) IVAX . . . . . . . . . . . . . . . . 315,875
2,900 ICN Pharmaceuticals . . . . . . . . 67,788
17,600 (a) Lincare Holdings . . . . . . . . . . 702,900
26,400 McKesson . . . . . . . . . . . . . . 2,032,800
34,198 Mylan Laboratories . . . . . . . . . 1,177,694
17,148 (a) NovaCare . . . . . . . . . . . . . . 70,736
24,600 Omnicare . . . . . . . . . . . . . . 850,238
11,300 (a) Oxford Health Plans . . . . . . . . 133,481
12,736 (a) PacifiCare Health Systems, Ser. B . 1,002,960
20,700 (a) Perrigo . . . . . . . . . . . . . . 164,306
19,300 (a) PSS World Medical . . . . . . . . . 427,013
20,900 (a) Quorum Health Group . . . . . . . . 303,050
19,000 (a) Steris . . . . . . . . . . . . . . . 437,000
26,750 Stryker . . . . . . . . . . . . . . 1,121,828
22,400 (a) Total Renal Care Holdings . . . . . 548,800
11,500 (a) Trigon Healthcare . . . . . . . . . 431,250
24,800 (a) Watson Pharmaceuticals . . . . . . . 1,379,500
___________
22,693,530
___________
Interest Sensitive--13.4%
74,168 AFLAC . . . . . . . . . . . . . . . 2,827,655
19,400 AMBAC . . . . . . . . . . . . . . . 1,128,838
17,059 American Financial Group . . . . . . 598,131
17,625 Associated Banc-Corp . . . . . . . . 619,078
11,300 (a) CCB Financial . . . . . . . . . . . 594,663
37,134 Charter One Financial . . . . . . . 1,018,864
12,957 City National . . . . . . . . . . . 442,967
31,190 Crestar Financial . . . . . . . . . 2,054,641
31,700 Dime Bancorp . . . . . . . . . . . . 754,856
26,374 Edwards (A.G.) . . . . . . . . . . . 911,551
15,700 FINOVA Group . . . . . . . . . . . . 765,375
52,182 First Security . . . . . . . . . . . 1,066,470
35,544 First Tennessee National . . . . . . 1,126,301
14,409 First Virginia Banks . . . . . . . . 657,411
40,500 Firstar . . . . . . . . . . . . . . 2,298,375
26,800 (a) Greenpoint Financial . . . . . . . . 879,375
43,300 Hibernia, Cl. A . . . . . . . . . . 722,569
8,044 HSB Group . . . . . . . . . . . . . 324,777
29,491 Marshall & Iisley . . . . . . . . . 1,437,686
19,951 Mercantile Bankshares . . . . . . . 650,901
39,800 North Fork Bancorp . . . . . . . . . 791,025
29,605 Old Kent Financial . . . . . . . . . 1,245,260
38,050 Old Republic International . . . . . 722,950
22,370 Pacific Century Financial . . . . . 455,789
39,150 Paine Webber Group . . . . . . . . . 1,309,078
8,700 PMI Group . . . . . . . . . . . . . 438,806
Interest Sensitive (continued)
33,200 T. Rowe Price Associates . . . . . . $ 1,180,675
17,500 (a) Protective Life . . . . . . . . . . 648,594
12,200 Provident Financial Group . . . . . 470,081
25,400 ReliaStar Financial . . . . . . . . 1,112,838
45,742 SouthTrust . . . . . . . . . . . . . 1,669,583
40,100 Sovereign Bancorp . . . . . . . . . 526,313
24,800 TCF Financial . . . . . . . . . . . 584,350
9,300 Wilmington Trust . . . . . . . . . . 512,081
20,900 Zions Bancorp . . . . . . . . . . . 1,109,006
___________
33,656,913
___________
Mining and Metals--.6%
16,500 AK Steel Holding . . . . . . . . . . . 285,656
6,344 Carpenter Technology . . . . . . . . . 222,437
3,168 Cleveland-Cliffs . . . . . . . . . . . 125,730
6,300 Inland Steel Industries . . . . . . . 114,975
1,900 (a) MAXXAM . . . . . . . . . . . . . . . . 100,581
12,900 Martin Marietta Materials . . . . . . 632,906
7,168 Oregon Steel Mills . . . . . . . . . . 87,808
___________
1,570,093
___________
Transportation--1.6%
13,938 Airborne Freight . . . . . . . . . . 326,672
7,287 (a) Alaska Air Group . . . . . . . . . . 261,877
12,457 Alexander & Baldwin . . . . . . . . 253,033
7,200 Arnold Industries . . . . . . . . . 91,800
8,280 ASA Holdings . . . . . . . . . . . . 297,045
13,300 CNF Transportation . . . . . . . . . 402,325
13,646 GATX . . . . . . . . . . . . . . . . 470,787
9,900 Hunt (J.B.) Transport . . . . . . . 165,825
30,388 Kansas City Southern Industries . . 1,173,737
9,800 Newport News Shipbuilding . . . . . 257,863
10,270 Overseas Shipholding Group . . . . . 181,009
14,200 (a) Wisconsin Central Transportation . . 214,775
___________
4,096,748
___________
Utilities--9.8%
9,868 Aliant Communications . . . . . . . 278,463
34,022 Allegheny Energy . . . . . . . . . . 1,046,177
5,992 Black Hills . . . . . . . . . . . . 154,669
16,700 (a) Calenergy . . . . . . . . . . . . . 457,163
25,487 Century Telephone Enterprises . . . 1,447,980
10,600 Cincinnati Bell . . . . . . . . . . 274,938
6,220 Cleco . . . . . . . . . . . . . . . 210,314
9,015 CMP Group . . . . . . . . . . . . . 166,214
28,145 CMS Energy . . . . . . . . . . . . . 1,240,139
14,536 Comsat . . . . . . . . . . . . . . . 573,264
DREYFUS STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Shares COMMON STOCKS (CONTINUED) Value
________________ ____________
Utilities (continued)
29,799 Conectiv . . . . . . . . . . . . . . $ 681,652
17,688 Energy East . . . . . . . . . . . . 864,501
26,916 Florida Progress . . . . . . . . . . 1,128,790
8,929 Hawaiian Electric Industries . . . . 353,812
10,483 Idacorp . . . . . . . . . . . . . . 327,594
19,876 Illinova . . . . . . . . . . . . . . 503,111
21,279 Interstate Energy . . . . . . . . . 658,319
12,451 IPALCO Enterprises . . . . . . . . . 571,190
17,180 Kansas City Power & Light . . . . . 494,999
26,233 MidAmerican Energy Holdings . . . . 682,058
9,437 Minnesota Power & Light . . . . . . 395,764
15,315 Montana Power . . . . . . . . . . . 663,331
14,211 Nevada Power . . . . . . . . . . . . 358,828
31,028 New Century Energies . . . . . . . . 1,499,040
17,416 New England Electric System . . . . 708,614
33,396 NIPSCO Industries . . . . . . . . . 999,793
36,260 (a) Northeast Utilities . . . . . . . . 566,563
22,446 OGE Energy . . . . . . . . . . . . . 596,222
23,536 Pinnacle West Capital . . . . . . . 1,031,171
32,883 Potomac Electric Power . . . . . . . 861,124
11,594 Public Service of New Mexico . . . . 255,793
23,490 Puget Sound Power & Light . . . . . 634,230
29,364 SCANA . . . . . . . . . . . . . . . 992,870
36,618 TECO Energy . . . . . . . . . . . . 1,011,572
17,000 Telephone & Data Systems . . . . . . 677,875
Utilities (continued)
10,257 (a) Vanguard Cellular Systems . . . . . 235,911
31,387 Wisconsin Energy . . . . . . . . . . 961,227
___________
24,565,275
___________
TOTAL COMMON STOCKS
(cost $203,680,013) . . . . . . $228,076,446
=============
Principal SHORT-TERM
Amount INVESTMENTS--8.5%
___________
U.S. Government Agency--7.9%
$19,940,000 Federal Home Loan Bank,
5.40%, 11/2/1998 . . . . . . . . . . . . $ 19,937,009
_____________
U.S. Treasury Bills--.6%
246,000 (b) 4.84%, 11/27/98 . . . . . . . . . . . . . 245,414
426,000 (b) 4.45%, 12/17/98 . . . . . . . . . . . . . 423,917
100,000 (b) 4.53%, 12/24/98 . . . . . . . . . . . . . 99,407
142,000 (b) 4.14%, 12/31/98 . . . . . . . . . . . . . 141,046
350,000 (b) 3.72%, 1/7/99 . . . . . . . . . . . . . . 347,354
300,000 (b) 3.95%, 1/14/99 . . . . . . . . . . . . . . 297,462
___________
1,554,600
___________
TOTAL SHORT-TERM INVESTMENTS
(cost $21,491,219). . . . . . . . . . . . . . . . . . . $ 21,491,609
=============
TOTAL INVESTMENTS
(cost $225,171,232). . . . . . . . . . . . . 99.1% $ 249,568,055
====== =============
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . 9% $ 2,203,510
======= =============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . 100.0% $ 251,771,565
======= =============
NOTES TO STATEMENT OF INVESTMENTS:
- -------------------------------------------------------------------------------
(a) Non-income producing.
(b) Held by the custodian in a segregated account as collateral for open
financial futures positions.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES
OCTOBER 31, 1998
Financial Futures Purchased
- ----------------------
Market Value Unrealized
Covered Appreciation
Contracts by Contracts Expiration at 10/31/98
________ ____________ ____________ ___________
<S> <C> <C> <C> <C>
Standard & Poor's MidCap 400 . . . . . . . . . . . . . . . 141 $23,716,200 December '98 $1,884,700
==========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MIDCAP INDEX FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $225,171,232 $249,568,055
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 238,156
Receivable for investment securities sold . . . . . . . . 1,585,469
Receivable for futures variation margin--Note 4(a) . . . 432,200
Receivable for shares of Common Stock subscribed . . . . 303,200
Dividends and interest receivable . . . . . . . . . . . . 231,433
____________
252,358,513
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 48,720
Due to Distributor . . . . . . . . . . . . . . . . . . . 48,720
Payable for shares of Common Stock redeemed . . . . . . . 489,508
____________
586,948
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $251,771,565
============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $172,223,830
Accumulated undistributed investment income--net . . . . 2,289,671
Accumulated net realized gain (loss) on investments . . . 50,976,541
Accumulated net unrealized appreciation (depreciation)
on investments (including $1,884,700 net unrealized
appreciation on financial futures)--Note 4(b) . . . . . 26,281,523
____________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $251,771,565
============
SHARES OUTSTANDING
(200 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED). . . . . . . . . . . . . . 9,760,163
NET ASSET VALUE, offering and redemption price per share--Note 3(c). . . . . . . . . . . . $25.80
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MIDCAP INDEX FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME: Cash dividends . . . . . . . . . . . . . . . . . $ 3,133,874
Interest . . . . . . . . . . . . . . . . . . . 905,444
____________
Total Income . . . . . . . . . . . . . . . . . $ 4,039,318
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . 683,079
Shareholder servicing costs--Note 3(b) . . . . . 683,079
Interest expense--Note 2 . . . . . . . . . . . . 1,239
Loan commitment fees--Note 2 . . . . . . . . . . 205
____________
Total Expenses . . . . . . . . . . . . . . . . 1,367,602
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,671,716
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $54,266,513
Net realized gain (loss) on financial futures . . (2,358,928)
____________
Net Realized Gain (Loss) . . . . . . . . . . . 51,907,585
Net unrealized appreciation (depreciation) on
investments (including $1,822,400 net unrealized
appreciation on financial futures) . . . . . . (38,375,039)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 13,532,546
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $16,204,262
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MIDCAP INDEX FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1998 October 31, 1997
_______________ _______________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,671,716 $ 2,140,753
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 51,907,585 17,095,238
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (38,375,039) 36,244,257
_______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 16,204,262 55,480,248
_______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,039,372) (2,236,912)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . (17,600,666) (8,243,435)
_______________ ______________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,640,038) (10,480,347)
_______________ ______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 196,809,454 76,561,680
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,175,235 9,015,232
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (179,206,556) (80,546,553)
Redemption fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412,437 --
_______________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . 34,190,570 5,030,359
_______________ ______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . 30,754,794 50,030,260
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221,016,771 170,986,511
_______________ ______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 251,771,565 $ 221,016,771
=============== ===============
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . $ 2,289,671 $ 1,657,327
_______________ ______________
Shares Shares
_______________ ______________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,389,574 3,242,152
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . 654,969 428,888
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,607,784) (3,366,259)
_______________ ______________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . 1,436,759 304,781
=============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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 period indicated. This information has been
derived from the Fund's financial statement.
<TABLE>
<CAPTION>
Year Ended October 31,
____________________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $26.55 $21.32 $19.40 $17.14 $17.63
______ ______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .27 .25 .28 .29 .26
Net realized and unrealized gain (loss) on investments . 1.16 6.25 2.81 3.00 .08
______ ______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . 1.43 6.50 3.09 3.29 .34
______ ______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.23) (.27) (.30) (.28) (.27)
Dividends from net realized gain on investments . . . . . (1.99) (1.00) (.87) (.75) (.56)
______ ______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . (2.22) (1.27) (1.17) (1.03) (.83)
______ ______ _______ _______ _______
Redemption fee added to paid-in capital . . . . . . . . . .04 -- -- -- --
______ ______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $25.80 $26.55 $21.32 $19.40 $17.14
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 5.88% 32.02% 16.65% 20.78% 1.89%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .50% .50% .50% .50% .40%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . . . . . . . . .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 . . . . . . . . . . . . . . . . . 67.85% 20.15% 14.66% 20.46% 19.81%
Net Assets, end of period (000's Omitted) . . . . . . . . $251,772 $221,017 $170,987 $122,982 $75,404
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS MIDCAP INDEX FUND
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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. 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.
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. 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. 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 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.
DREYFUS MIDCAP INDEX FUND
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
October 31, 1998 was approximately $20,500, with a related weighted average
annualized interest rate of 6.03%.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) 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 of the Fund's expenses, except
management fees, brokerage commissions, taxes, commitment 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 Fund's allocable portion of the fees
and expenses of non-interested Directors (including counsel). Each 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. 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, 1998, the Fund was charged $683,079 pursuant to the Shareholder
Services Plan.
(C) 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 redemption or exchange occurs within a six month
period following the date of issuance.
DREYFUS MIDCAP INDEX FUND
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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, 1998 amounted to $171,438,250 and $172,559,546, 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, 1998 are set
forth in the Statement of Financial Futures.
(B) At October 31, 1998, accumulated net unrealized appreciation on
investments and financial futures was $26,281,523, consisting of $43,318,098
gross unrealized appreciation and $17,036,575 gross unrealized depreciation.
At October 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
DREYFUS MIDCAP INDEX FUND
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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, 1998, 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, 1998 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, 1998, 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 4, 1998
Dreyfus lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
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. 113AR9810
MidCap Index
Fund
Annual Report
October 31, 1998
