N-CSR 1 form078ncsra.htm ANNUAL REPORT form078ncsra.htm - Generated by SEC Publisher for SEC Filing

  

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number

811- 5883

 

 

 

Dreyfus Index Funds, Inc.

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York 10166

 

 

(Address of principal executive offices) (Zip code)

 

 

 

 

 

John Pak, Esq.

200 Park Avenue

New York, New York 10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code:

(212) 922-6000

 

 

Date of fiscal year end:

 

10/31

 

Date of reporting period:

10/31/2013

 

             

 

 


 

 

FORM N-CSR

Item 1.                         Reports to Stockholders.

 


 

Dreyfus International 
Stock Index Fund 

 

ANNUAL REPORT October 31, 2013




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The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.




 

Contents

 

THE FUND

2     

A Letter from the President

3     

Discussion of Fund Performance

6     

Fund Performance

7     

Understanding Your Fund’s Expenses

7     

Comparing Your Fund’s Expenses With Those of Other Funds

8     

Statement of Investments

37     

Statement of Financial Futures

38     

Statement of Assets and Liabilities

39     

Statement of Operations

40     

Statement of Changes in Net Assets

41     

Financial Highlights

42     

Notes to Financial Statements

56     

Report of Independent Registered Public Accounting Firm

57     

Important Tax Information

58     

Board Members Information

60     

Officers of the Fund

 

FOR MORE INFORMATION

 

Back Cover



Dreyfus International
Stock Index Fund

The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this annual report for Dreyfus International Stock Index Fund, covering the 12-month period from November 1, 2012, through October 31, 2013. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Improving global economic conditions drove developed stock markets higher over much of the reporting period. Europe appeared to put the worst of its sovereign debt and banking crises behind it, and Japan embarked on a new economic course designed to reflate its long-stagnant domestic economy. However, the world’s emerging markets struggled with the effects of local economic slowdowns. As a result, equity market returns varied widely from one country to another over the past 12 months.

We currently expect global economic conditions to continue to improve in 2014, with stronger growth in many developed countries fueled by past and continuing monetary ease. The emerging markets seem poised for moderate economic expansion despite recently negative investor sentiment. In the United States, we anticipate accelerating growth supported by the fading drags of tighter federal fiscal policies and downsizing on the state and local levels. For more information on how these observations may affect your investments, we encourage you to speak with your financial advisor.

Thank you for your continued confidence and support.


J. Charles Cardona
President
The Dreyfus Corporation
November 15, 2013

2



DISCUSSION OF FUND PERFORMANCE

For the reporting period of November 1, 2012, through October 31, 2013, as provided byThomas J. Durante, CFA, Richard A. Brown, CFA, and Karen Q.Wong, CFA, Portfolio Managers

Fund and Market Performance Overview

For the 12-month period ended October 31, 2013, Dreyfus International Stock Index Fund produced a total return of 26.01%.1 This compares with a 26.88% total return for the fund’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (the “MSCI EAFE® Index” or the “Index”), during the same period.2

International stocks responded positively to a recovering global economy during the reporting period.The difference in returns between the fund and the MSCI EAFE® Index was primarily the result of transaction costs and operating expenses that are not reflected in the MSCI EAFE® Index’s results.

The Fund’s Investment Approach

The fund seeks to match the performance of the MSCI EAFE® Index, a broadly diversified, international index composed of approximately 1,000 companies located in developed markets outside the United States and Canada. To pursue its goal, the fund is generally fully invested in stocks included in the MSCI EAFE® Index. The fund’s investments are selected to match the benchmark composition along individual name, country, and industry weighting, and other benchmark characteristics. Under these circumstances, the fund maintains approximately the same weighting for each stock as the MSCI EAFE® Index does.

The fund employed futures contracts and currency forward contracts during the reporting period in its efforts to replicate the returns of the MSCI EAFE® Index.

Recovering Global Economy Fueled Stock Markets’ Gains

Stock markets throughout the developed world rallied in response to the aggressively accommodative monetary policies adopted by most major central banks.The United States led the global recovery, as domestic economic growth has been supported by employment gains, rebounding housing markets, and a massive quantitative easing program.The worst of Europe’s financial crisis seems to be over, as evidenced by the

The Fund 3



DISCUSSION OF FUND PERFORMANCE (continued)

end of a regional recession, greater confidence in the banking system, and rebounding stock prices, particularly in previously hard hit nations. Japan’s stock market was lifted by newly stimulative fiscal and monetary policies from a new government seeking to reflate the domestic economy after years of stagnation.

Although stocks from the emerging markets are not part of the MSCI EAFE® Index, it is worth noting that many developing nations struggled with economic slowdowns during the reporting period. In this environment, some emerging stock markets, such as China, fared relatively well, while others, most notably India and Brazil, underperformed global market averages.

Financials Sector Led the International Markets’ Advance

All of the economic sectors represented in the MSCI EAFE® posted positive absolute returns during the reporting period. The markets’ gains were led by the financials sector, which rebounded from previously depressed levels as investor confidence improved. Commercial banks fared especially well in Japan, where an aggressively accommodative monetary policy boosted liquidity in the banking system. Banks in the United Kingdom also gained value in the midst of a recovering housing market. Despite slowing growth in the emerging markets, Australian banks continued to benefit from financing opportunities in nearby developing nations. Gains among investment banks were driven by rallying equity markets, intensifying mergers-and-acquisitions activity, and rising bond issuance volumes. Wealth management firms prospered as stock prices climbed.

The consumer discretionary sector was supported by Japanese automobile manufacturers, which benefited from a depreciating local currency that fueled exports to the United States and China. Sales of Japanese vehicles in China also were buoyed by improved relations between the two countries as concerns surrounding a territorial dispute waned. German automakers also fared well in the recovering global economy, due primarily to robust demand from affluent consumers for luxury brands. Other strong performers in the consumer discretionary sector included consumer electronics producers and media companies. In the health care sector, large pharmaceutical developers benefited from waning concerns regarding research-and-development efforts, as well as diversification by some major drug companies into the health-and-beauty category.

4



The energy sector ranked among the weaker segments of the MSCI EAFE® Index as a glut of shale oil drove commodity prices lower, hurting profit margins for refiners. Although the utilities sector posted double-digit returns for the reporting period, it lagged sector averages when investors turned their attention away from income-oriented stocks and toward industry groups with greater growth potential.

From a county perspective, Japan and the United Kingdom ranked as the reporting period’s top performers, while Israel was the only country in the MSCI EAFE® Index to post a negative absolute return.

Replicating the Performance of the MSCI EAFE Index

Although we do not actively manage the fund’s investments in response to macroeconomic trends, it is worth noting that recent evidence of sustained global growth has the potential to fuel further gains in international equity markets. As always, we have continued to monitor the factors considered by the fund’s investment model in light of current market conditions.

November 15, 2013

Equity funds are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund’s prospectus.

The fund’s performance will be influenced by political, social and economic factors affecting investments in foreign companies. Special risks associated with investments in foreign companies include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards.

1 Total return includes reinvestment of dividends and any capital gains paid. Past performance is no guarantee of future 
results. Share price, yield and investment return fluctuate such that upon redemption, fund shares may be worth more 
or less than their original cost. 
2 SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable, capital gain 
distributions.The Morgan Stanley Capital International Europe,Australasia, Far East (MSCI EAFE) Index is an 
unmanaged index composed of a sample of companies representative of the market structure of European and Pacific 
Basin countries.The index reflects actual investable opportunities for global investors for stocks that are free of foreign 
ownership limits or legal restrictions at the country level. Investors cannot invest directly in any index. 

 

The Fund 5



FUND PERFORMANCE


Average Annual Total Returns as of 10/31/13             
  1 Year  5 Years   10 Years  
Fund  26.01 %  11.28 %  7.21 % 
Morgan Stanley Capital International             
Europe, Australasia, Far East Index  26.88 %  11.99 %  7.71 % 

 

Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The above graph compares a $10,000 investment made in Dreyfus International Stock Index Fund on 10/31/03 to a $10,000 investment made in the Morgan Stanley Capital International Europe, Australasia, Far East Index (the “Index”) on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all applicable fees and expenses.The Index is an unmanaged index composed of a sample of companies representative of the market structure of European and Pacific Basin countries. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. 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.

6



UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus International Stock Index Fund from May 1, 2013 to October 31, 2013. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended October 31, 2013

Expenses paid per $1,000  $ 3.15 
Ending value (after expenses)  $ 1,082.20 

 

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended October 31, 2013

Expenses paid per $1,000  $ 3.06 
Ending value (after expenses)  $ 1,022.18 

 

† Expenses are equal to the fund’s annualized expense ratio of .60%, multiplied by the average account value over the 
period, multiplied by 184/365 (to reflect the one-half year period). 

 

The Fund 7



STATEMENT OF INVESTMENTS

October 31, 2013

Common Stocks—97.9%  Shares   Value ($) 
Australia—8.0%       
AGL Energy  24,617   363,893 
ALS  15,390   145,895 
Alumina  112,290 a  109,315 
Amcor  51,547   528,123 
AMP  129,896   581,937 
APA Group  35,806   205,083 
Asciano  42,600   234,334 
ASX  7,859   272,532 
Aurizon Holdings  90,019   407,541 
Australia & New Zealand Banking Group  119,856   3,833,471 
Bendigo and Adelaide Bank  17,917   184,584 
BHP Billiton  140,217   4,990,948 
Boral  34,041   158,939 
Brambles  68,663   603,542 
Caltex Australia  6,352   111,247 
CFS Retail Property Trust Group  87,781   171,741 
Coca-Cola Amatil  26,007   317,090 
Cochlear  2,583   143,794 
Commonwealth Bank of Australia  70,374   5,060,399 
Computershare  20,839   211,535 
Crown  18,248   290,959 
CSL  21,550   1,415,579 
Dexus Property Group  213,483   218,925 
Echo Entertainment Group  30,084   75,350 
Federation Centres  64,376   150,896 
Flight Centre  2,140   104,995 
Fortescue Metals Group  70,564   347,475 
Goodman Group  76,129   364,085 
GPT Group  71,651   249,891 
Harvey Norman Holdings  21,349   65,781 
Iluka Resources  18,724   182,280 
Incitec Pivot  64,208   161,426 
Insurance Australia Group  88,784   518,591 
James Hardie Industries-CDI  18,114   187,127 
Leighton Holdings  7,421   125,620 
Lend Lease Group  22,150   238,661 

 

8



Common Stocks (continued)  Shares      Value ($) 
Australia (continued)         
Macquarie Group  13,477      648,992 
Metcash  34,689      109,834 
Mirvac Group  148,466      244,162 
National Australia Bank  102,354      3,415,895 
Newcrest Mining  32,706      318,395 
Orica  16,344      325,480 
Origin Energy  48,366      668,785 
Qantas Airways  41,721 a    49,094 
QBE Insurance Group  52,795      738,510 
Ramsay Health Care  5,278      193,554 
Rio Tinto  19,112      1,155,900 
Santos  42,612      610,970 
Seek  13,527      166,078 
Sonic Healthcare  16,149      246,349 
SP AusNet  72,030      85,099 
Stockland  102,337      387,864 
Suncorp Group  56,629      716,139 
Sydney Airport  8,175      32,375 
Tabcorp Holdings  33,277      113,227 
Tatts Group  60,376      179,183 
Telstra  191,280      936,486 
Toll Holdings  28,622      156,091 
Transurban Group  62,395      418,707 
Treasury Wine Estates  25,721      114,258 
Wesfarmers  44,059  a   1,789,378 
Westfield Group  91,512      935,852 
Westfield Retail Trust  135,515      395,775 
Westpac Banking  135,528      4,392,366 
Whitehaven Coal  19,528  a   29,900 
Woodside Petroleum  28,919      1,061,062 
Woolworths  54,506      1,797,926 
WorleyParsons  8,268      172,388 
        45,939,658 
Austria—.3%         
Andritz  3,077      189,547 
Erste Group Bank  11,446      403,674 

 

The Fund 9



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Austria (continued)       
IMMOFINANZ  43,712 a  191,404 
OMV  6,042   288,314 
Raiffeisen Bank International  2,344   86,152 
Telekom Austria  9,805   80,769 
Verbund  3,340   78,431 
Vienna Insurance Group  1,670   88,487 
Voestalpine  5,020   237,092 
      1,643,870 
Belgium—1.2%       
Ageas  9,815   417,715 
Anheuser-Busch InBev  35,098   3,650,333 
Belgacom  6,323   173,118 
Colruyt  3,021   168,973 
Delhaize Group  4,547   290,566 
Groupe Bruxelles Lambert  3,659   326,747 
Groupe Bruxelles Lambert (STRIP)  236 a,b  0 
KBC Groep  10,131   552,280 
Solvay  2,629   411,568 
Telenet Group Holding  2,398   131,701 
UCB  4,996   328,449 
Umicore  4,980   237,570 
      6,689,020 
China—.0%       
AAC Technologies Holdings  30,000   132,529 
Yangzijiang Shipbuilding Holdings  91,000   86,443 
      218,972 
Denmark—1.1%       
AP Moller—Maersk, Cl. A  25   225,914 
AP Moller—Maersk, Cl. B  59   570,855 
Carlsberg, Cl. B  4,562   455,515 
Coloplast, Cl. B  4,688   305,692 
Danske Bank  28,887 a  674,683 
DSV  7,535   220,430 
Novo Nordisk, Cl. B  17,402   2,895,450 
Novozymes, Cl. B  9,781   383,174 
TDC  32,635   294,670 

 

10



Common Stocks (continued)  Shares      Value ($) 
Denmark (continued)         
Tryg  1,152      105,275 
William Demant Holding  1,152  a   113,978 
        6,245,636 
Finland—.9%         
Elisa  6,364      159,249 
Fortum  18,860      419,959 
Kesko, Cl. B  2,995      99,547 
Kone, Cl. B  6,865      605,398 
Metso  5,858      230,658 
Neste Oil  6,048      119,973 
Nokia  164,269 a   1,242,316 
Nokian Renkaat  4,986      252,309 
Orion, Cl. B  4,426      118,926 
Pohjola Bank, Cl. A  5,263      95,897 
Sampo, Cl. A  18,425      872,830 
Stora Enso, Cl. R  25,317      235,464 
UPM-Kymmene  21,691      344,872 
Wartsila  7,884      349,717 
        5,147,115 
France—9.2%         
Accor  6,674      299,171 
Aeroports de Paris  1,389      148,422 
Air Liquide  13,636      1,856,989 
Alstom  9,153      340,514 
Arkema  2,734      310,406 
Atos  2,389      203,962 
AXA  78,480      1,960,641 
BNP Paribas  43,424      3,215,632 
Bouygues  8,391      328,002 
Bureau Veritas  10,016      302,448 
Cap Gemini  6,082      400,094 
Carrefour  26,473      969,765 
Casino Guichard Perrachon  2,567      288,971 
CGG  7,241 a   159,320 
Christian Dior  2,410      458,106 
Cie de St-Gobain  17,499      920,556 

 

The Fund 11



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
France (continued)       
Cie Generale des Etablissements Michelin  8,018   838,477 
CNP Assurances  6,982   123,238 
Credit Agricole  44,157 a  533,414 
Danone  25,014   1,855,052 
Dassault Systemes  2,782   338,104 
Edenred  8,329   283,001 
Electricite de France  10,686   374,912 
Essilor International  8,954   961,645 
Eurazeo  1,459   110,399 
Eutelsat Communications  6,600   209,199 
Fonciere Des Regions  1,253   107,469 
GDF Suez  58,117   1,447,184 
Gecina  1,000   133,807 
Groupe Eurotunnel  24,439   236,987 
ICADE  1,675   154,353 
Iliad  1,003   229,332 
Imerys  1,513   121,552 
JCDecaux  2,555   102,650 
Kering  3,328   756,189 
Klepierre  4,592   206,248 
L’Oreal  10,581   1,812,322 
Lafarge  7,993   553,262 
Lagardere  4,997   181,762 
Legrand  11,665   662,512 
LVMH Moet Hennessy Louis Vuitton  11,103   2,137,657 
Natixis  41,498   223,799 
Orange  81,362   1,116,848 
Pernod-Ricard  9,306   1,118,221 
Publicis Groupe  7,865   655,995 
Remy Cointreau  1,207   119,109 
Renault  8,462   741,176 
Rexel  9,689   242,715 
Safran  11,015   704,038 
Sanofi  52,018   5,547,099 
Schneider Electric  23,082   1,944,628 
SCOR  6,401   226,270 

 

12



Common Stocks (continued)  Shares   Value ($) 
France (continued)       
Societe BIC  1,136   141,979 
Societe Generale  30,748   1,745,912 
Sodexo  3,999   388,167 
Suez Environnement  12,864   224,527 
Technip  4,344   455,037 
Thales  3,664   224,862 
Total  93,370   5,738,405 
Unibail-Rodamco  4,238   1,110,554 
Vallourec  4,360   259,436 
Veolia Environnement  15,458   264,871 
Vinci  20,331   1,304,175 
Vivendi  52,274   1,326,883 
Wendel  1,490   207,970 
Zodiac Aerospace  1,443   231,190 
      52,897,592 
Germany—8.2%       
Adidas  9,181   1,048,103 
Allianz  19,920   3,351,058 
Axel Springer  1,517   91,482 
BASF  40,111   4,173,339 
Bayer  36,109   4,487,947 
Bayerische Motoren Werke  14,496   1,644,235 
Beiersdorf  4,287   409,253 
Brenntag  2,284   387,019 
Celesio  3,952   123,066 
Commerzbank  42,760 a  549,747 
Continental  4,912   900,021 
Daimler  42,024   3,448,603 
Deutsche Bank  44,590   2,157,122 
Deutsche Boerse  8,501   640,019 
Deutsche Lufthansa  9,327   180,649 
Deutsche Post  39,730   1,344,544 
Deutsche Telekom  122,910   1,935,827 
E.ON  78,883   1,441,081 
Fraport Frankfurt Airport Services Worldwide  1,609   124,677 
Fresenius & Co.  5,497   714,488 

 

The Fund 13



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Germany (continued)       
Fresenius Medical Care & Co.  9,487   628,079 
GEA Group  7,622   331,679 
Hannover Rueck  2,427   194,718 
HeidelbergCement  6,000   472,987 
Henkel & Co.  5,541   512,263 
Hochtief  1,402   127,178 
Hugo Boss  1,386   180,733 
Infineon Technologies  45,970   444,964 
K+S  7,058   180,065 
Kabel Deutschland Holding  981   123,339 
LANXESS  3,616   254,516 
Linde  8,108   1,540,664 
MAN  1,622   195,452 
Merck  2,756   458,766 
Metro  5,401   253,253 
Muenchener Rueckversicherungs  7,853   1,640,951 
OSRAM Licht  3,826 a  198,258 
ProSiebenSat.1 Media  5,020   239,103 
RWE  21,529   794,794 
SAP  40,258   3,162,656 
Siemens  34,622   4,427,231 
Suedzucker  3,784   121,919 
Telefonica Deutschland Holding  11,353   89,543 
ThyssenKrupp  16,741 a  427,896 
United Internet  4,460   176,218 
Volkswagen  1,298   318,107 
      46,647,612 
Greece—.0%       
Hellenic Telecommunications Organization  10,491 a  132,329 
OPAP  10,992   136,559 
      268,888 
Hong Kong—2.7%       
AIA Group  526,400   2,671,719 
ASM Pacific Technology  10,800   104,127 
Bank of East Asia  56,950   246,443 
BOC Hong Kong Holdings  158,000   515,594 

 

14



Common Stocks (continued)  Shares    Value ($) 
Hong Kong (continued)       
Cathay Pacific Airways  52,000    103,155 
Cheung Kong Holdings  61,000    953,592 
Cheung Kong Infrastructure Holdings  27,000    187,882 
CLP Holdings  77,788    626,077 
First Pacific  92,250    104,946 
Galaxy Entertainment Group  93,000  a  693,931 
Hang Lung Properties  100,000    329,550 
Hang Seng Bank  32,700    544,086 
Henderson Land Development  48,038    284,709 
HKT Trust  87,000    80,682 
Hong Kong & China Gas  252,661    590,509 
Hong Kong Exchanges & Clearing  48,200    777,119 
Hopewell Holdings  26,000    87,527 
Hutchison Whampoa  93,800    1,168,719 
Hysan Development  28,000    130,917 
Kerry Properties  29,500    127,847 
Li & Fung  259,200    366,417 
Link REIT  98,000    494,234 
MGM China Holdings  40,000    137,753 
MTR  66,000    255,811 
New World Development  162,786    225,503 
Noble Group  161,963    134,296 
NWS Holdings  60,000    93,641 
Orient Overseas International  11,300    58,373 
PCCW  167,000    75,390 
Power Assets Holdings  59,500    495,769 
Shangri-La Asia  65,000    119,051 
Sino Land  127,730    179,247 
SJM Holdings  78,530    253,731 
Sun Hung Kai Properties  70,699    926,482 
Swire Pacific, Cl. A  30,000    346,511 
Swire Properties  46,400    125,680 
Wharf Holdings  66,311    558,507 
Wheelock & Co.  37,000    188,985 
Yue Yuen Industrial Holdings  32,300    88,739 
      15,453,251 

 

The Fund 15



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares      Value ($) 
Ireland—.3%         
Bank of Ireland  857,556  a   314,375 
CRH  32,074      779,520 
Elan  21,591 a  357,646 
Irish Bank Resolution  35,225  a,b   0 
Kerry Group, Cl. A  6,342      404,711 
Ryanair Holdings  4,000  a   33,129 
        1,889,381 
Israel—.4%         
Bank Hapoalim  42,826      229,660 
Bank Leumi Le-Israel  55,519  a   211,921 
Bezeq Israeli Telecommunication  76,662      133,508 
Delek Group  202      69,887 
Israel  117 a   59,027 
Israel Chemicals  18,647      154,305 
Israel Discount Bank, Cl. A  1  a   2 
Mizrahi Tefahot Bank  6,222      73,050 
NICE Systems  2,452      96,655 
Teva Pharmaceutical Industries  37,214      1,393,052 
        2,421,067 
Italy—2.3%         
Assicurazioni Generali  51,235      1,197,902 
Atlantia  14,628      320,759 
Banca Monte dei Paschi di Siena  281,163  a   88,948 
CNH Industrial  41,752  a   493,761 
Enel  288,682      1,273,868 
Enel Green Power  70,150      170,682 
Eni  111,194      2,815,669 
EXOR  4,561      180,765 
Fiat  35,936 a  282,507 
Finmeccanica  15,364 a  112,751 
Intesa Sanpaolo  510,043      1,267,992 
Luxottica Group  7,387      401,189 
Mediobanca  23,963      218,804 
Pirelli & C  9,607      135,396 
Prysmian  8,493      207,565 
Saipem  10,910      255,674 

 

16



Common Stocks (continued)  Shares   Value ($) 
Italy (continued)       
Snam  89,752   462,585 
STMicroelectronics  26,028   201,295 
Telecom Italia  446,650   435,122 
Telecom Italia-RSP  266,227   208,027 
Tenaris  20,122   472,102 
Terna Rete Elettrica Nazionale  61,801   306,274 
UniCredit  190,323   1,431,602 
Unione di Banche Italiane  33,961   235,165 
      13,176,404 
Japan—20.6%       
ABC-Mart  1,000   49,934 
Acom  15,500 a  60,373 
Advantest  6,400   76,152 
Aeon  26,700   363,042 
AEON Financial Service  2,860   87,403 
AEON Mall  5,280   149,760 
Air Water  7,000   99,664 
Aisin Seiki  8,500   343,613 
Ajinomoto  25,800   360,250 
Alfresa Holdings  1,900   103,570 
Amada  14,000   119,882 
ANA Holdings  55,000   114,665 
Aozora Bank  46,959   136,106 
Arnest One  5,000 b  137,293 
Asahi Glass  43,800   269,490 
Asahi Group Holdings  16,500   444,676 
Asahi Kasei  55,900   423,528 
Asics  7,000   122,943 
Astellas Pharma  19,079   1,059,405 
Bank of Kyoto  14,000   122,730 
Bank of Yokohama  50,000   274,586 
Benesse Holdings  3,300   122,831 
Bridgestone  28,500   972,414 
Brother Industries  9,100   102,818 
CALBEE  3,600   94,238 
Canon  49,650   1,560,241 

 

The Fund 17



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Japan (continued)       
Casio Computer  9,300   88,621 
Central Japan Railway  6,300   813,689 
Chiba Bank  33,000   234,252 
Chiyoda  6,000   75,786 
Chubu Electric Power  28,600   422,325 
Chugai Pharmaceutical  10,028   234,969 
Chugoku Bank  6,000   86,098 
Chugoku Electric Power  13,700   209,269 
Citizen Holdings  12,400   87,896 
Coca-Cola West  2,700   54,670 
Cosmo Oil  27,000 a  47,503 
Credit Saison  7,100   193,223 
Dai Nippon Printing  24,800   259,274 
Dai-ichi Life Insurance  35,200   499,738 
Daicel  11,000   92,403 
Daido Steel  12,200   69,728 
Daihatsu Motor  8,000   154,744 
Daiichi Sankyo  29,683   548,802 
Daikin Industries  10,300   589,739 
Dainippon Sumitomo Pharma  6,900   92,346 
Daito Trust Construction  3,000   305,400 
Daiwa House Industry  26,400   526,496 
Daiwa Securities Group  73,000   662,219 
DeNA  4,300   93,539 
Denso  21,300   1,019,185 
Dentsu  9,500   356,987 
Don Quijote  2,100   139,245 
East Japan Railway  14,800   1,280,871 
Eisai  11,200   438,523 
Electric Power Development  5,280   168,071 
FamilyMart  2,617   116,971 
FANUC  8,429   1,347,543 
Fast Retailing  2,358   787,759 
Fuji Electric  21,000   93,756 
Fuji Heavy Industries  26,000   706,254 
FUJIFILM Holdings  19,700   479,427 

 

18



Common Stocks (continued)  Shares      Value ($) 
Japan (continued)         
Fujitsu  80,800 a    345,945 
Fukuoka Financial Group  33,000      148,337 
Furukawa Electric  28,000      64,639 
Gree  4,300      36,952 
GungHo Online Entertainment  140  a   87,705 
Gunma Bank  18,000      103,610 
Hachijuni Bank  20,000      122,852 
Hakuhodo DY Holdings  8,400      64,753 
Hamamatsu Photonics  3,200      119,435 
Hankyu Hanshin Holdings  48,000      268,484 
Hino Motors  12,000      168,290 
Hirose Electric  1,300      197,519 
Hiroshima Bank  24,000      101,536 
Hisamitsu Pharmaceutical  2,900      156,310 
Hitachi  211,900      1,476,167 
Hitachi Chemical  4,000      61,141 
Hitachi Construction Machinery  5,000      105,105 
Hitachi High-Technologies  2,700      61,837 
Hitachi Metals  8,000      107,393 
Hokkaido Electric Power  8,200  a   105,242 
Hokuhoku Financial Group  51,000      104,770 
Hokuriku Electric Power  7,700      109,318 
Honda Motor  71,259      2,837,171 
Hoya  18,500      442,698 
Hulic  10,800      170,902 
Ibiden  5,600      96,589 
Idemitsu Kosan  900      75,145 
IHI  59,000      248,408 
INPEX  36,400      419,786 
Isetan Mitsukoshi Holdings  15,020      226,530 
Isuzu Motors  49,000      302,980 
ITOCHU  66,200      793,080 
Itochu Techno-Solutions  900      35,193 
Iyo Bank  11,000      114,329 
J Front Retailing  19,800      153,438 
Japan Airlines  2,600      151,510 

 

The Fund 19



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Japan (continued)       
Japan Exchange Group  10,000   230,550 
Japan Petroleum Exploration  1,400   56,809 
Japan Prime Realty Investment  31   103,092 
Japan Real Estate Investment  27   308,909 
Japan Retail Fund Investment  94   190,524 
Japan Steel Works  13,000   72,318 
Japan Tobacco  48,100   1,736,550 
JFE Holdings  21,660   489,459 
JGC  9,000   342,774 
Joyo Bank  26,462   136,710 
JSR  7,700   145,809 
JTEKT  8,000   101,942 
JX Holdings  95,876   472,896 
Kajima  38,800   163,755 
Kamigumi  9,400   81,544 
Kaneka  12,000   75,786 
Kansai Electric Power  29,899 a  377,044 
Kansai Paint  10,000   133,428 
Kao  23,200   770,345 
Kawasaki Heavy Industries  58,000   225,323 
KDDI  23,600   1,274,443 
Keikyu  20,000   187,735 
Keio  25,000   172,633 
Keisei Electric Railway  11,000   113,099 
Keyence  1,985   847,859 
Kikkoman  6,000   108,980 
Kinden  6,000   65,656 
Kintetsu  79,354   291,333 
Kirin Holdings  38,000   553,402 
Kobe Steel  113,000 a  198,810 
Koito Manufacturing  4,000   72,613 
Komatsu  41,000   892,301 
Konami  4,400   105,917 
Konica Minolta  19,500   161,029 
Kubota  47,000   692,118 
Kuraray  14,000   163,734 

 

20



Common Stocks (continued)  Shares   Value ($) 
Japan (continued)       
Kurita Water Industries  4,800   104,465 
Kyocera  14,300   738,778 
Kyowa Hakko Kirin  8,705   95,876 
Kyushu Electric Power  18,000 a  252,436 
Lawson  3,000   240,110 
LIXIL Group  12,124   283,341 
M3  36   98,302 
Mabuchi Motor  1,000   52,985 
Makita  4,600   231,567 
Marubeni  73,000   569,419 
Marui Group  8,300   79,092 
Maruichi Steel Tube  2,000   48,734 
Mazda Motor  115,000 a  514,594 
McDonald’s Holdings Japan  3,000   82,864 
Medipal Holdings  5,800   78,096 
MEIJI Holdings  2,521   140,497 
Miraca Holdings  2,600   116,740 
Mitsubishi  61,598   1,241,607 
Mitsubishi Chemical Holdings  59,380   276,579 
Mitsubishi Electric  85,000   929,269 
Mitsubishi Estate  55,000   1,564,477 
Mitsubishi Gas Chemical  16,000   130,174 
Mitsubishi Heavy Industries  133,700   845,738 
Mitsubishi Logistics  6,000   82,925 
Mitsubishi Materials  45,000   175,277 
Mitsubishi Motors  18,300 a  204,347 
Mitsubishi Tanabe Pharma  9,200   129,490 
Mitsubishi UFJ Financial Group  556,590   3,509,466 
Mitsubishi UFJ Lease & Finance  25,500   143,669 
Mitsui & Co.  76,200   1,084,918 
Mitsui Chemicals  38,000   100,478 
Mitsui Fudosan  36,286   1,193,788 
Mitsui OSK Lines  50,000   210,516 
Mizuho Financial Group  1,004,200   2,093,573 
MS&AD Insurance Group Holdings  22,357   574,102 
Murata Manufacturing  8,900   712,326 

 

The Fund 21



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Nabtesco  4,500  109,422 
Namco Bandai Holdings  7,850  147,691 
NEC  103,800  232,238 
NEXON  4,600  53,611 
NGK Insulators  11,000  183,911 
NGK Spark Plug  7,926  180,155 
NHK Spring  7,000  72,826 
Nidec  4,300  416,750 
Nikon  14,160  260,649 
Nintendo  4,725  529,538 
Nippon Building Fund  30  371,301 
Nippon Electric Glass  17,085  87,571 
Nippon Express  32,000  160,114 
Nippon Meat Packers  7,000  102,085 
Nippon Prologis REIT  11  109,631 
Nippon Steel & Sumitomo Metal  333,615  1,095,878 
Nippon Telegraph & Telephone  19,200  993,878 
Nippon Yusen  69,800  212,247 
Nishi-Nippon City Bank  26,000  70,070 
Nissan Motor  109,100  1,089,558 
Nisshin Seifun Group  8,580  92,754 
Nissin Foods Holdings  2,600  111,055 
Nitori Holdings  1,400  131,130 
Nitto Denko  7,300  380,850 
NKSJ Holdings  14,770  379,727 
NOK  3,400  52,281 
Nomura Holdings  159,200  1,170,564 
Nomura Real Estate Holdings  5,700  143,703 
Nomura Real Estate Office Fund  14  69,124 
Nomura Research Institute  3,900  130,489 
NSK  20,000  211,939 
NTT Data  5,500  181,786 
NTT DoCoMo  63,700  1,010,597 
NTT Urban Development  5,500  69,750 
Obayashi  30,000  191,295 
Odakyu Electric Railway  28,000  269,379 

 

22



Common Stocks (continued)  Shares   Value ($) 
Japan (continued)       
OJI Holdings  35,000   159,463 
Olympus  10,000 a  319,333 
Omron  8,400   319,496 
Ono Pharmaceutical  3,400   255,873 
ORACLE JAPAN  1,400   55,243 
Oriental Land  2,100   335,727 
ORIX  54,900   941,334 
Osaka Gas  83,000   348,612 
OTSUKA  700   90,623 
Otsuka Holdings  15,500   439,795 
Panasonic  96,895   970,625 
Park24  3,800   74,045 
Rakuten  32,100   417,205 
Resona Holdings  83,500   433,082 
Ricoh  28,000   294,152 
Rinnai  1,500   115,936 
Rohm  3,800   155,161 
Sankyo  2,200   104,261 
Sanrio  2,100   114,899 
Santen Pharmaceutical  3,300   166,292 
SBI Holdings  7,830   94,122 
Secom  9,300   558,019 
Sega Sammy Holdings  7,484   191,419 
Sekisui Chemical  19,000   219,699 
Sekisui House  23,000   328,170 
Seven & I Holdings  33,060   1,217,098 
Seven Bank  26,000   91,752 
Sharp  46,000 a  135,198 
Shikoku Electric Power  8,600 a  152,881 
Shimadzu  9,000   87,776 
Shimamura  1,000   112,173 
Shimano  3,300   288,620 
Shimizu  23,000   117,421 
Shin-Etsu Chemical  18,000   1,012,306 
Shinsei Bank  67,000   156,036 
Shionogi & Co.  13,100   288,565 

 

The Fund 23



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares  Value ($) 
Japan (continued)     
Shiseido  16,100  274,255 
Shizuoka Bank  23,400  262,486 
Showa Denko  57,000  77,098 
Showa Shell Sekiyu  8,500  91,112 
SMC  2,200  509,672 
Softbank  42,000  3,118,072 
Sojitz  54,600  105,502 
Sony  44,380  847,160 
Sony Financial Holdings  7,000  130,062 
Stanley Electric  6,700  155,218 
Sumco  4,900  44,351 
Sumitomo  49,600  643,140 
Sumitomo Chemical  66,000  240,293 
Sumitomo Electric Industries  33,300  497,146 
Sumitomo Heavy Industries  25,000  110,088 
Sumitomo Metal Mining  23,000  317,645 
Sumitomo Mitsui Financial Group  55,600  2,666,063 
Sumitomo Mitsui Trust Holdings  145,640  713,907 
Sumitomo Realty & Development  16,000  752,568 
Sumitomo Rubber Industries  7,600  105,270 
Suntory Beverage & Food  5,200  170,813 
Suruga Bank  8,000  126,431 
Suzuken  2,920  105,124 
Suzuki Motor  16,200  405,453 
Sysmex  3,200  210,556 
T&D Holdings  23,800  284,399 
Taiheiyo Cement  54,000  227,906 
Taisei  39,000  199,105 
Taisho Pharmaceutical Holdings  1,500  105,105 
Taiyo Nippon Sanso  12,000  81,888 
Takashimaya  12,000  113,984 
Takeda Pharmaceutical  34,600  1,641,503 
TDK  5,500  232,686 
Teijin  40,000  89,495 
Terumo  6,800  327,794 
THK  4,400  95,491 

 

24



Common Stocks (continued)  Shares      Value ($) 
Japan (continued)         
Tobu Railway  45,000      232,482 
Toho  5,600      119,654 
Toho Gas  18,000      93,542 
Tohoku Electric Power  19,800 a   238,615 
Tokio Marine Holdings  30,400      990,867 
Tokyo Electric Power  64,072 a   340,788 
Tokyo Electron  7,600      415,051 
Tokyo Gas  108,000      584,318 
Tokyo Tatemono  17,000      158,538 
Tokyu  50,820      344,726 
Tokyu Fudosan Holdings  24,000  a   235,777 
TonenGeneral Sekiyu  13,000      120,574 
Toppan Printing  25,000      196,786 
Toray Industries  63,000      392,108 
Toshiba  177,000      748,825 
TOTO  12,000      168,901 
Toyo Seikan Group Holdings  7,100      146,722 
Toyo Suisan Kaisha  4,000      126,920 
Toyoda Gosei  2,400      59,701 
Toyota Boshoku  2,600      34,665 
Toyota Industries  6,700      294,015 
Toyota Motor  120,357      7,784,710 
Toyota Tsusho  8,700      240,571 
Trend Micro  4,700      173,986 
Tsumura & Co.  2,300      72,043 
Ube Industries  46,600      96,205 
Unicharm  5,000      319,841 
United Urban Investment  97      148,070 
USS  9,800      143,118 
West Japan Railway  7,600      339,693 
Yahoo! Japan  61,400      285,364 
Yakult Honsha  3,600      182,142 
Yamada Denki  36,200      101,241 
Yamaguchi Financial Group  9,000      84,481 
Yamaha  7,200      106,905 
Yamaha Motor  11,200      170,625 

 

The Fund 25



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Japan (continued)       
Yamato Holdings  15,600   334,116 
Yamato Kogyo  1,800   66,541 
Yamazaki Baking  4,000   40,598 
Yaskawa Electric  9,000   115,875 
Yokogawa Electric  8,800   114,553 
Yokohama Rubber  9,000   87,684 
      117,750,608 
Luxembourg—.1%       
SES  12,925   376,250 
Macau—.2%       
Sands China  106,613   757,691 
Wynn Macau  71,200   273,210 
      1,030,901 
Mexico—.0%       
Fresnillo  8,530   133,420 
Netherlands—3.0%       
Aegon  78,438   624,513 
Akzo Nobel  10,555   767,574 
ASML Holding  15,647   1,485,436 
Corio  2,835   123,695 
Delta Lloyd  8,633   183,559 
European Aeronautic Defence and Space  25,473   1,750,402 
Fugro  3,133   196,038 
Gemalto  3,324   372,743 
Heineken  10,138   700,634 
Heineken Holding  4,582   291,745 
ING Groep  167,600 a  2,135,193 
Koninklijke Ahold  44,322   843,701 
Koninklijke Boskalis Westminster  3,270   157,482 
Koninklijke DSM  6,810   515,852 
Koninklijke KPN  141,360 a  451,808 
Koninklijke Philips  41,931   1,484,787 
Koninklijke Vopak  2,912   179,284 
OCI  3,786 a  145,578 
QIAGEN  9,940 a  228,624 

 

26



Common Stocks (continued)  Shares    Value ($) 
Netherlands (continued)       
Randstad Holding  5,158    318,335 
Reed Elsevier  30,515    614,642 
TNT Express  14,652    135,278 
Unilever  71,188    2,819,451 
Wolters Kluwer  13,416    363,948 
Ziggo  6,792    291,457 
      17,181,759 
New Zealand—.1%       
Auckland International Airport  42,260    119,731 
Contact Energy  16,082    69,740 
Fletcher Building  27,701    228,582 
SKYCITY Entertainment Group  26,289    84,471 
Telecom Corporation of New Zealand  78,060    151,523 
      654,047 
Norway—.8%       
Aker Solutions  6,700    92,626 
DNB  43,039    762,738 
Gjensidige Forsikring  8,002    149,339 
Norsk Hydro  38,511    172,079 
Orkla  31,249    253,276 
Seadrill  16,512    764,156 
Statoil  48,944    1,159,255 
Telenor  30,891    742,042 
Yara International  8,213    354,565 
      4,450,076 
Portugal—.2%       
Banco Espirito Santo  66,352  a  87,657 
Energias de Portugal  88,059    324,254 
Galp Energia  15,778    267,355 
Jeronimo Martins  10,446    193,032 
Portugal Telecom  27,519    124,235 
      996,533 
Singapore—1.5%       
Ascendas Real Estate Investment Trust  91,912    175,359 
CapitaCommercial Trust  76,000    90,243 

 

The Fund 27



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares    Value ($) 
Singapore (continued)       
CapitaLand  105,500    264,981 
CapitaMall Trust  97,000    157,736 
CapitaMalls Asia  65,000    105,700 
City Developments  17,000    140,960 
ComfortDelGro  78,700    121,959 
DBS Group Holdings  74,588    1,005,155 
Genting Singapore  250,527    307,562 
Global Logistic Properties  134,843    335,425 
Golden Agri-Resources  325,440    157,192 
Hutchison Port Holdings Trust  227,000    165,710 
Jardine Cycle & Carriage  4,422    130,467 
Keppel  61,700    538,919 
Keppel Land  26,000    77,653 
Olam International  62,995    78,097 
Oversea-Chinese Banking  112,942    945,578 
SembCorp Industries  43,254    185,245 
SembCorp Marine  38,000    137,659 
Singapore Airlines  21,733    182,479 
Singapore Exchange  35,000    206,811 
Singapore Press Holdings  69,075    236,330 
Singapore Technologies Engineering  68,000    231,010 
Singapore Telecommunications  349,951    1,064,897 
StarHub  26,918    96,430 
United Overseas Bank  56,112    941,373 
UOL Group  21,111    111,996 
Wilmar International  88,000    245,114 
      8,438,040 
Spain—3.3%       
Abertis Infraestructuras  15,807    339,100 
Acciona  1,014    64,336 
ACS Actividades de Construccion y Servicios  6,606    216,834 
Amadeus IT Holding, Cl. A  16,771    622,784 
Banco Bilbao Vizcaya Argentaria  247,539    2,900,183 
Banco de Sabadell  150,772    386,905 
Banco Popular Espanol  52,819  a  300,630 

 

28



Common Stocks (continued)  Shares   Value ($) 
Spain (continued)       
Banco Santander  486,353   4,318,016 
Bankia  185,397 a  277,399 
CaixaBank  51,538   267,938 
Distribuidora Internacional de Alimentacion  24,682   225,637 
Enagas  8,817   235,715 
Ferrovial  16,561   315,813 
Gas Natural SDG  15,873   374,352 
Grifols  6,781   278,095 
Iberdrola  208,262   1,308,654 
Inditex  9,554   1,569,611 
Mapfre  35,362   142,310 
Red Electrica  4,424   275,768 
Repsol  37,562   1,008,780 
Telefonica  178,991 a  3,155,691 
Zardoya Otis  6,340   110,443 
      18,694,994 
Sweden—3.1%       
Alfa Laval  13,304   303,854 
Assa Abloy, Cl. B  14,709   730,224 
Atlas Copco, Cl. A  29,500   818,528 
Atlas Copco, Cl. B  17,260   429,632 
Boliden  11,860   168,930 
Electrolux, Ser. B  10,914   269,479 
Elekta, Cl. B  14,946   220,498 
Ericsson, Cl. B  133,172   1,589,626 
Getinge, Cl. B  8,218   260,615 
Hennes & Mauritz, Cl. B  41,544   1,795,097 
Hexagon, Cl. B  9,712   291,658 
Husqvarna, Cl. B  16,174   95,146 
Industrivarden, Cl. C  5,510   98,210 
Investment AB Kinnevik, Cl. B  9,939   366,268 
Investor, Cl. B  20,074   644,965 
Lundin Petroleum  8,991 a  185,646 
Millicom International Cellular, SDR  3,010   277,540 
Nordea Bank  124,140   1,590,053 

 

The Fund 29



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares      Value ($) 
Sweden (continued)         
Ratos, Cl. B  9,138      79,181 
Sandvik  46,959      635,536 
Scania, Cl. B  13,131      263,429 
Securitas, Cl. B  13,206      150,808 
Skandinaviska Enskilda Banken, Cl. A  66,843      809,743 
Skanska, Cl. B  15,609      300,856 
SKF, Cl. B  17,338      459,400 
Svenska Cellulosa, Cl. B  25,704      729,861 
Svenska Handelsbanken, Cl. A  21,901      992,297 
Swedbank, Cl. A  39,764      1,037,047 
Swedish Match  8,494      280,247 
Tele2, Cl. B  14,263      172,123 
TeliaSonera  104,685      867,522 
Volvo, Cl. B  66,427      853,396 
        17,767,415 
Switzerland—9.2%         
ABB  96,147 a  2,455,200 
Actelion  4,790 a  370,857 
Adecco  5,868 a  432,978 
Aryzta  3,825 a  285,816 
Baloise Holding  2,177    253,366 
Banque Cantonale Vaudoise  127    70,684 
Barry Callebaut  84  a 87,763 
Cie Financiere Richemont  22,823    2,340,530 
Coca-Cola HBC-CDI  8,469  a 244,699 
Credit Suisse Group  65,537 a  2,039,025 
EMS-Chemie Holding  319    116,283 
Geberit  1,716    513,088 
Givaudan  366 a  519,544 
Glencore Xstrata  463,800 a  2,528,453 
Holcim  10,070 a  750,242 
Julius Baer Group  9,648  a   474,133 
Kuehne + Nagel International  2,216      280,129 
Lindt & Spruengli  4      201,201 

 

30



Common Stocks (continued)  Shares      Value ($) 
Switzerland (continued)         
Lindt & Spruengli-PC  38      160,401 
Lonza Group  2,290 a  204,683 
Nestle  140,686    10,155,875 
Novartis  100,370    7,793,097 
Pargesa Holding-BR  1,256    100,012 
Partners Group Holding  804    208,321 
Roche Holding  30,654    8,486,565 
Schindler Holding  876    124,543 
Schindler Holding-PC  1,996    283,116 
SGS  242    567,027 
Sika-BR  92    290,089 
Sonova Holding  2,104  a 273,855 
Sulzer  959    150,189 
Swatch Group  1,746    194,545 
Swatch Group-BR  1,355    866,895 
Swiss Life Holding  1,301  a 258,522 
Swiss Prime Site  2,461 a  186,606 
Swiss Re  15,433 a  1,355,607 
Swisscom  993    506,815 
Syngenta  4,076    1,646,392 
UBS  159,236 a  3,081,704 
Zurich Insurance Group  6,491  a   1,794,888 
        52,653,738 
United Kingdom—21.1%         
3i Group  40,656      243,218 
Aberdeen Asset Management  39,934      283,592 
Admiral Group  7,931      162,646 
Aggreko  11,359      293,232 
AMEC  12,404      234,090 
Anglo American  61,028      1,453,118 
Antofagasta  16,062      220,197 
ArcelorMittal  44,041      695,737 
ARM Holdings  61,341      969,288 
Associated British Foods  15,183      551,892 

 

The Fund 31



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares  Value ($) 
United Kingdom (continued)     
AstraZeneca  54,714  2,902,956 
Aviva  129,495  932,484 
Babcock International Group  16,124  329,631 
BAE Systems  142,072  1,035,806 
Barclays  667,584  2,821,607 
BG Group  148,735  3,037,087 
BHP Billiton  92,303  2,857,135 
BP  828,753  6,414,275 
British American Tobacco  83,752  4,614,169 
British Land  41,797  416,851 
British Sky Broadcasting Group  44,969  675,973 
BT Group  344,754  2,083,991 
Bunzl  14,415  318,269 
Burberry Group  18,830  463,451 
Capita  27,912  441,279 
Carnival  7,529  268,483 
Centrica  226,746  1,284,847 
Cobham  48,785  225,437 
Compass Group  79,827  1,148,120 
Croda International  5,720  223,418 
Diageo  109,646  3,493,299 
Direct Line Insurance Group  35,078  126,550 
easyJet  6,447  135,314 
Experian  44,360  903,317 
G4S  69,237  290,305 
GKN  72,532  427,863 
GlaxoSmithKline  215,014  5,666,066 
Hammerson  30,961  262,613 
Hargreaves Lansdown  8,738  166,726 
HSBC Holdings  812,655  8,887,905 
ICAP  23,517  145,249 
IMI  14,139  344,367 
Imperial Tobacco Group  42,644  1,592,475 

 

32



Common Stocks (continued)  Shares      Value ($) 
United Kingdom (continued)         
Inmarsat  19,204      221,856 
InterContinental Hotels Group  11,377      331,457 
International Consolidated Airlines Group  38,774  a   215,847 
Intertek Group  7,156      382,314 
Intu Properties  30,561      168,664 
Invensys  29,946      241,519 
Investec  22,476      157,343 
ITV  165,158      505,534 
J Sainsbury  53,650      339,361 
Johnson Matthey  9,078      437,255 
Kingfisher  104,497      632,508 
Land Securities Group  33,367      528,858 
Legal & General Group  259,925      901,467 
Lloyds Banking Group  2,020,879  a   2,512,206 
London Stock Exchange Group  8,128      213,994 
Marks & Spencer Group  71,242      575,149 
Meggitt  35,133      322,505 
Melrose Industries  53,387      274,096 
National Grid  160,449      2,018,251 
Next  7,044      614,982 
Old Mutual  215,569      703,735 
Pearson  35,962      751,911 
Persimmon  13,910 a  282,139 
Petrofac  11,812    277,085 
Prudential  111,928    2,295,379 
Randgold Resources  3,820    284,202 
Reckitt Benckiser Group  28,291    2,199,156 
Reed Elsevier  52,262    732,390 
Resolution  59,778    342,563 
Rexam  32,104    267,418 
Rio Tinto  55,553    2,812,968 
Rolls-Royce Holdings  82,337  a 1,518,232 
Royal Bank of Scotland Group  94,511 a  557,061 

 

The Fund 33

 

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares  Value ($) 
United Kingdom (continued)     
Royal Dutch Shell, Cl. A  165,780  5,519,620 
Royal Dutch Shell, Cl. B  111,762  3,869,836 
RSA Insurance Group  150,053  308,926 
SABMiller  42,047  2,193,803 
Sage Group  47,658  257,596 
Schroders  4,200  173,678 
Segro  28,963  151,765 
Serco Group  22,690  202,645 
Severn Trent  10,096  300,612 
Shire  24,317  1,072,620 
Smith & Nephew  38,604  493,328 
Smiths Group  17,455  401,621 
SSE  42,318  960,801 
Standard Chartered  105,811  2,544,031 
Standard Life  101,000  570,045 
Subsea 7  11,106  234,879 
Tate & Lyle  18,866  239,429 
Tesco  353,371  2,063,555 
Travis Perkins  10,931  325,299 
TUI Travel  20,087  124,000 
Tullow Oil  39,988  604,305 
Unilever  56,121  2,272,123 
United Utilities Group  30,314  342,428 
Vedanta Resources  4,090  69,711 
Vodafone Group  2,124,054  7,645,872 
Weir Group  9,465  342,225 
Whitbread  7,724  425,169 
William Hill  35,017  225,092 
WM Morrison Supermarkets  93,911  424,028 
Wolseley  12,082  651,107 

 

34



  Common Stocks (continued)   Shares   Value ($) 
  United Kingdom (continued)        
  WPP   57,743   1,226,762 
          120,900,644 
  United States—.1%        
  Transocean   15,858   749,600 
  Total Common Stocks        
  (cost $481,767,316)       560,416,491 
 
  Preferred Stocks—.6%        
  Germany        
  Bayerische Motoren Werke   2,454   205,180 
  Fuchs Petrolub   1,499   121,302 
  Henkel & Co.   7,831   847,416 
  Porsche Automobil Holding   6,751   632,376 
  RWE   1,967   67,168 
  Volkswagen   6,333   1,609,669 
  Total Preferred Stocks        
  (cost $2,080,591)       3,483,111 
 
      Number of    
  Rights—.0%   Rights   Value ($) 
Spain—.0%       
  Banco Santander        
  (cost $101,388)   486,353 a  103,675 
 
      Principal    

Short-Term Investments—.1%

  Amount ($)   Value ($) 
  U.S. Treasury Bills:        
       0.03%, 12/5/13   275,000 c  274,992 
       0.03%, 3/13/14   230,000 c  229,953 
  Total Short-Term Investments        
  (cost $504,970)       504,945 

 

The Fund 35



STATEMENT OF INVESTMENTS (continued)

Other Investment—1.0%  Shares   Value ($) 
Registered Investment Company;       
Dreyfus Institutional Preferred       
     Plus Money Market Fund       
(cost $5,735,539)  5,735,539 d  5,735,539 
 
Total Investments (cost $490,189,804)  99.6 %  570,243,761 
Cash and Receivables (Net)  .4 %  2,361,021 
Net Assets  100.0 %  572,604,782 

 

BR—Bearer Certificate 
CDI—Chess Depository Interest 
PC—Participation Certificate 
REIT—Real Estate Investment Trust 
RSP—Risparmio (Savings) Shares 
SDR—Swedish Depository Receipts 
STRIP—Separate Trading of Registered Interest and Principal of Securities 

 

a Non-income producing security. 
b The valuation of this security has been determined in good faith by management under the direction of the Board of 
Directors.At October 31, 2013, the value of these securities amounted to $137,293 or .02% of net assets. 
c Held by or on behalf of a counterparty for open financial futures contracts. 
d Investment in affiliated money market mutual fund. 

 

Portfolio Summary (Unaudited)     
 
  Value (%)    Value (%) 
Financial  25.5  Telecommunication Services  5.5 
Industrial  12.6  Information Technology  4.2 
Consumer Discretionary  11.5  Utilities  3.6 
Consumer Staples  11.0  Short-Term/   
Health Care  9.8  Money Market Investments  1.1 
Materials  8.0     
Energy  6.8    99.6 
 
† Based on net assets.       
See notes to financial statements.       

 

36



STATEMENT OF FINANCIAL FUTURES

October 31, 2013

    Market Value    Unrealized  
    Covered by    Appreciation  
  Contracts  Contracts ($)  Expiration  at 10/31/2013 ($) 
Financial Futures Long           
ASX SPI 200 Index  8  1,023,789  December 2013  32,123  
Euro STOXX 50  66  2,741,225  December 2013  108,523  
FTSE 100 Index  24  2,581,558  December 2013  85,026  
TOPIX  15  1,829,808  December 2013  13,096  
        238,768  
 
See notes to financial statements.           

 

The Fund 37



STATEMENT OF ASSETS AND LIABILITIES

October 31, 2013

  Cost  Value  
Assets ($):       
Investments in securities—See Statement of Investments:       
Unaffiliated issuers  484,454,265  564,508,222  
Affiliated issuers  5,735,539  5,735,539  
Cash    578,643  
Cash denominated in foreign currencies  768,863  765,997  
Dividends receivable    1,962,064  
Receivable for shares of Common Stock subscribed    129,261  
Unrealized appreciation on forward foreign       
currency exchange contracts—Note 4    101,494  
    573,781,220  
Liabilities ($):       
Due to The Dreyfus Corporation and affiliates—Note 3(b)    286,275  
Payable for shares of Common Stock redeemed    820,888  
Unrealized depreciation on forward foreign       
currency exchange contracts—Note 4    57,231  
Payable for futures variation margin—Note 4    12,044  
    1,176,438  
Net Assets ($)    572,604,782  
Composition of Net Assets ($):       
Paid-in capital    504,046,623  
Accumulated undistributed investment income—net    7,793,762  
Accumulated net realized gain (loss) on investments    (19,575,279 ) 
Accumulated net unrealized appreciation (depreciation) on       
investments and foreign currency transactions (including       
$238,768 net unrealized appreciation on financial futures)    80,339,676  
Net Assets ($)    572,604,782  
Shares Outstanding       
(200 million shares of $.001 par value Common Stock authorized)    33,454,081  
Net Asset Value, offering and redemption price per share ($)    17.12  
 
See notes to financial statements.       

 

38



STATEMENT OF OPERATIONS

Year Ended October 31, 2013

Investment Income ($):     
Income:     
Cash dividends (net of $1,147,362 foreign taxes withheld at source):     
Unaffiliated issuers  14,556,850  
Affiliated issuers  4,654  
Interest  10,416  
Total Income  14,571,920  
Expenses:     
Management fee—Note 3(a)  1,788,157  
Shareholder servicing costs—Note 3(b)  1,277,255  
Directors’ fees—Note 3(a,c)  45,638  
Interest expense—Note 2  8,926  
Loan commitment fees—Note 2  4,629  
Total Expenses  3,124,605  
Less—Directors’ fees reimbursed by the Manager—Note 3(a)  (45,638 ) 
Net Expenses  3,078,967  
Investment Income—Net  11,492,953  
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):     
Net realized gain (loss) on investments and foreign currency transactions  12,449,380  
Net realized gain (loss) on financial futures  1,914,776  
Net realized gain (loss) on forward foreign currency exchange contracts  (1,140,924 ) 
Net Realized Gain (Loss)  13,223,232  
Net unrealized appreciation (depreciation) on     
investments and foreign currency transactions  90,613,806  
Net unrealized appreciation (depreciation) on financial futures  250,977  
Net unrealized appreciation (depreciation) on     
forward foreign currency exchange contracts  82,989  
Net Unrealized Appreciation (Depreciation)  90,947,772  
Net Realized and Unrealized Gain (Loss) on Investments  104,171,004  
Net Increase in Net Assets Resulting from Operations  115,663,957  
 
See notes to financial statements.     

 

The Fund 39



STATEMENT OF CHANGES IN NET ASSETS

  Year Ended October 31,  
  2013   2012  
Operations ($):         
Investment income—net  11,492,953   12,327,067  
Net realized gain (loss) on investments  13,223,232   13,859,254  
Net unrealized appreciation         
(depreciation) on investments  90,947,772   (9,292,695 ) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations  115,663,957   16,893,626  
Dividends to Shareholders from ($):         
Investment income—net  (12,705,604 )  (14,103,072 ) 
Capital Stock Transactions ($):         
Net proceeds from shares sold  275,778,066   158,345,329  
Dividends reinvested  12,035,945   13,170,185  
Cost of shares redeemed  (273,185,774 )  (210,664,725 ) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions  14,628,237   (39,149,211 ) 
Total Increase (Decrease) in Net Assets  117,586,590   (36,358,657 ) 
Net Assets ($):         
Beginning of Period  455,018,192   491,376,849  
End of Period  572,604,782   455,018,192  
Undistributed investment income—net  7,793,762   9,405,608  
Capital Share Transactions: (Shares)         
Shares sold  17,713,613   11,940,137  
Shares issued for dividends reinvested  839,912   1,053,615  
Shares redeemed  (17,683,082 )  (16,038,020 ) 
Net Increase (Decrease) in Shares Outstanding  870,443   (3,044,268 ) 
 
See notes to financial statements.         

 

40



FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

      Year Ended October 31,      
  2013   2012   2011   2010   2009  
Per Share Data ($):                     
Net asset value, beginning of period  13.96   13.79   14.84   14.05   11.51  
Investment Operations:                     
Investment income—neta  .35   .37   .38   .31   .30  
Net realized and unrealized                     
gain (loss) on investments  3.20   .24   (1.10 )  .89   2.51  
Total from Investment Operations  3.55   .61   (.72 )  1.20   2.81  
Distributions:                     
Dividends from investment income—net  (.39 )  (.44 )  (.33 )  (.33 )  (.25 ) 
Dividends from net realized                     
gain on investments        (.08 )  (.02 ) 
Total Distributions  (.39 )  (.44 )  (.33 )  (.41 )  (.27 ) 
Net asset value, end of period  17.12   13.96   13.79   14.84   14.05  
Total Return (%)  26.01   4.79   (5.03 )  8.73   25.13  
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets  .61   .61   .61   .61   .61  
Ratio of net expenses                     
to average net assets  .60   .60   .60   .60   .60  
Ratio of net investment income                     
to average net assets  2.25   2.75   2.52   2.25   2.53  
Portfolio Turnover Rate  23.12   11.11   6.14   10.49   17.26  
Net Assets, end of period ($ x 1,000)  572,605   455,018   491,377   561,428   547,282  
 
a Based on average shares outstanding at each month end.                  
See notes to financial statements.                     

 

The Fund 41



NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus International Stock Index Fund (the “fund”) is a separate non-diversified series of Dreyfus Index Funds, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering three series, including the fund. The fund’s investment objective is to match the performance of the Morgan Stanley Capital International Europe, Australasia, Far East (free) Index (MSCI EAFE ®).The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a lia-

42



bility in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing

The Fund 43



NOTES TO FINANCIAL STATEMENTS (continued)

price or, if there is no official closing price that day, at the last sales price. 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, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset value. All of the preceding securities are categorized within Level 1 of the fair value hierarchy.

U.S. Treasury Bills are valued at the mean price between quoted bid prices and asked prices by an independent pricing service (the “Service”) approved by the Company’s Board of Directors (the “Board”).These securities are generally categorized within Level 2 of the fair value hierarchy.

The Service’s procedures are reviewed by Dreyfus under the general supervision of the Board.

Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence

44



the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are categorized within Level 3 of the fair value hierarchy.

Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.

Financial futures, which are traded on an exchange, 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 on each business day and are generally categorized within Level 1 of the fair value hierarchy. Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate and are generally categorized within Level 2 of the fair value hierarchy.

The following is a summary of the inputs used as of October 31, 2013 in valuing the fund’s investments:

    Level 2—Other  Level 3—   
  Level 1—  Significant  Significant   
  Unadjusted  Observable  Unobservable   
  Quoted Prices  Inputs  Inputs  Total 
Assets ($)         
Investments in Securities:       
Equity Securities—         
Domestic         
Common Stocks  749,600      749,600 
Equity Securities—         
Foreign         
Common Stocks  559,529,598  137,293  0  559,666,891 
Equity Securities—         
Foreign Preferred         
Stocks  3,483,111      3,483,111 
Mutual Funds  5,735,539      5,735,539 
Rights  103,675      103,675 

 

The Fund 45



NOTES TO FINANCIAL STATEMENTS (continued)

    Level 2—Other   Level 3—     
  Level 1—  Significant   Significant     
  Unadjusted  Observable   Unobservable     
  Quoted Prices  Inputs   Inputs  Total  
Assets ($) (continued)             
Investments in             
Securities (continued):           
U.S. Treasury    504,945     504,945  
Other Financial             
Instruments:             
Financial Futures††  238,768      238,768  
Forward Foreign             
Currency Exchange             
Contracts††    101,494     101,494  
Liabilities ($)             
Other Financial             
Instruments:             
Forward Foreign             
Currency Exchange             
Contracts††    (57,231 )    (57,231 ) 

 

  See Statement of Investments for additional detailed categorizations. 
††  Amount shown represents unrealized appreciation (depreciation) at period end. 

 

At October 31, 2013, there were no transfers between Level 1 and Level 2 of the fair value hiearchy.

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

  Equity Securities—  
  Foreign Common Stock ($)  
Balance as of 10/31/2012  46  
Realized gain (loss)   
Change in unrealized appreciation (depreciation)  (46 ) 
Purchases   
Sales   
Transfers into Level 3   
Transfers out of Level 3   
Balance as of 10/31/2013  0  
The amount of total gains (losses) for the period     
included in earnings attributable to the change in     
unrealized gains (losses) relating to investments     
still held at 10/31/2013  (46 ) 

 

46



(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments resulting from changes in exchange rates. Foreign currency gains and losses on foreign currency transactions are also included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses 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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” under the Act. Investments in affiliated investment companies during the period ended October 31, 2013 were as follows:

Affiliated           
Investment  Value     Value  Net 
Company  10/31/2012($)  Purchases ($)  Sales($)  10/31/2013 ($)  Assets (%) 
Dreyfus           
Institutional           
Preferred           
Plus Money           
Market Fund  3,979,648 164,846,562  163,090,671   5,735,539  1.0 

 

The Fund 47



NOTES TO FINANCIAL STATEMENTS (continued)

(e) Risk: Investing in foreign markets may involve special risks and considerations not typically associated with investing in the U.S.These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls and delayed settlements, and their prices may be more volatile than those of comparable securities in the U.S.

(f) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gains, if any, 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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(g) 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.

As of and during the period ended October 31, 2013, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended October 31, 2013, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended October 31, 2013 remains subject to examination by the Internal Revenue Service and state taxing authorities.

48



At October 31, 2013, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $10,314,242, undistributed capital gains $5,878,013 and unrealized appreciation $52,365,904.

The tax character of distributions paid to shareholders during the fiscal periods ended October 31, 2013 and October 31, 2012 were as follows: ordinary income $12,705,604 and $14,103,072.

During the period ended October 31, 2013, as a result of permanent book to tax differences, primarily due to the tax treatment for passive foreign investment companies and foreign currency gains and losses, the fund decreased accumulated undistributed investment income-net by $399,195 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets and net asset value per share were not affected by this reclassification.

(h) Accounting Pronouncement: In January 2013, FASB issued Accounting Standards Update No. 2013-01 (“ASU 2013-01”), “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, which replaced Accounting Standards Update No. 2011-11 (“ASU 2011-11”), “Disclosures about Offsetting Assets and Liabilities”. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods.ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities.ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to enforceable master netting arrangements (“MNA”) or similar agreements. Management is currently evaluating the application of ASU 2013-01 and its impact on the fund’s financial statements.

The Fund 49



NOTES TO FINANCIAL STATEMENTS (continued)

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $265 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. Prior to October 9, 2013, the unsecured credit facility with Citibank, N.A. was $210 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.

The average amount of borrowings outstanding under the Facilities during the period ended October 31, 2013 was approximately $792,100 with a related weighted average annualized interest rate of 1.13%.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (the “Agreement”) with the Manager, the management fee is computed at the annual rate of .35% of the value of the fund’s average daily net assets and is payable monthly. Under the terms of the Agreement, the Manager has agreed to pay all of the fund’s direct expenses, except management fees, Shareholder Services Plan fees, brokerage fees and commissions, taxes, interest expense, commitment fees on borrowings, fees and expenses of non-interested Board members, fees and expenses of independent counsel to the fund and extraordinary expenses. The Manager has also agreed to reduce its management fee in an amount equal to the fund’s allocable portion of the accrued fees and expenses of the non-interested Board members and fees and expenses of independent counsel to the fund and to non-interested Board members. During the period ended October 31, 2013, fees reimbursed by the Manager amounted to $45,638.

50



(b) Under the Shareholder Services Plan, the fund pays the Distributor for the provision of certain services, at an annual rate of .25% 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 (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2013, the fund was charged $1,277,255 pursuant to the Shareholder Services Plan.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $168,465 and Shareholder Services Plan fees $120,332, which are offset against an expense reimbursement currently in effect in the amount of $2,522.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, forward contracts and financial futures, during the period ended October 31, 2013, amounted to $129,521,304 and $115,676,755, respectively.

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund during the period ended October 31, 2013 is discussed below.

The Fund 51



NOTES TO FINANCIAL STATEMENTS (continued)

Financial Futures: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk as a result of changes in value of underlying financial instruments.The fund invests in financial futures in order to manage its exposure to or protect against changes in the market. A financial futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a counterparty, which consist of cash or cash equivalents.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.Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations.When the contracts are closed, the fund recognizes a realized gain or loss which is reflected in the Statement of Operations.There is minimal counterparty credit risk to the fund with financial futures since they are exchange traded, and the exchange guarantees the financial futures against default. Financial futures open at October 31, 2013 are set forth in the Statement of Financial Futures.

Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strategy.When executing forward contracts, the fund is obligated to buy or sell a foreign currency at a specified rate on a certain date in the future.With respect to sales of forward contracts, the fund incurs a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract decreases between those dates.With respect to purchases of forward contracts, the fund incurs a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract increases between those dates.Any realized or unrealized gains or losses which occurred during the period are reflected in the

52



Statement of Operations.The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments.The fund is also exposed to credit risk associated with counterparty nonper-formance on these forward contracts, which is generally limited to the unrealized gain on each open contract.The following summarizes open forward contracts at October 31, 2013:

    Foreign      Unrealized  
Forward Foreign Currency   Currency      Appreciation  
Exchange Contracts   Amounts  Cost ($)  Value ($) (Depreciation) ($)   
Purchases:            
Australian Dollar, Expiring:         
12/18/2013 a  595,755  563,156  561,245  (1,911 ) 
12/18/2013 b  341,360  315,506  321,586  6,080  
12/18/2013 c  1,407,568  1,312,758  1,326,032  13,274  
British Pound, Expiring:            
12/18/2013 a  904,649  1,459,112  1,449,976  (9,136 ) 
12/18/2013 c  2,171,656  3,473,660  3,480,742  7,082  
12/18/2013 d  130,700  210,688  209,487  (1,201 ) 
12/18/2013 e  446,680  705,417  715,941  10,524  
Euro,            
Expiring:            
12/18/2013 a  1,078,522  1,467,362  1,464,480  (2,882 ) 
12/18/2013 b  545,967  724,490  741,346  16,856  
12/18/2013 c  2,618,497  3,523,226  3,555,547  32,321  
12/18/2013 d  150,300  205,363  204,086  (1,277 ) 
Japanese Yen,            
Expiring:            
12/18/2013 a  86,188,169  878,913  876,803  (2,110 ) 
12/18/2013 c  263,698,782  2,677,999  2,682,641  4,642  
12/18/2013 d  72,210,656  723,893  734,608  10,715  
Sales:     Proceeds ($)       
Australian Dollar,            
Expiring:            
12/18/2013 a  1,162,454  1,090,744  1,095,117  (4,373 ) 
12/18/2013 c  311,474  288,571  293,431  (4,860 ) 
British Pound,            
Expiring:            
12/18/2013 a  1,965,771  3,145,424  3,150,749  (5,325 ) 
12/18/2013 c  462,053  740,395  740,581  (186 ) 

 

The Fund 53



NOTES TO FINANCIAL STATEMENTS (continued)

    Foreign      Unrealized  
Forward Foreign Currency   Currency      Appreciation  
Exchange Contracts   Amounts  Proceeds ($)  Value ($) (Depreciation) ($)   
Sales (continued):            
Euro,            
Expiring:            
    12/18/2013a  2,170,395  2,933,484  2,947,088  (13,604 ) 
    12/18/2013c   773,734  1,043,735  1,050,621  (6,886 ) 
Japanese Yen,            
Expiring:            
    12/18/2013a  197,873,561  2,012,158  2,012,993  (835 ) 
    12/18/2013c   83,338,543  845,169  847,814  (2,645 ) 
Gross Unrealized            
Appreciation         101,494  
Gross Unrealized            
Depreciation         (57,231 ) 

 

Counterparties: 
a  Bank of America 
b  Bank of Montreal 
c  Citigroup 
d  Credit Suisse 
e  Royal Bank of Canada 

 

The following tables show the fund’s exposure to different types of market risk as it relates to the Statement of Assets and Liabilities and the Statement of Operations, respectively.

Fair value of derivative instruments as of October 31, 2013 is shown below:

  Derivative    Derivative  
  Assets ($)    Liabilities ($)  
Foreign exchange risk1  101,494  Foreign exchange risk2  (57,231 ) 
Equity risk3  238,768       
Gross fair value of         
derivatives contracts  340,262    (57,231 ) 

 

Statement of Assets and Liabilities location:

1  Unrealized appreciation on forward foreign currency exchange contracts. 
2  Unrealized depreciation on forward foreign currency exchange contracts. 
3  Includes cumulative appreciation on financial futures as reported in the Statement of Financial 
  Futures, but only the unpaid variation margin is reported in the Statement of Assets and Liabilities. 

 

54



The effect of derivative instruments in the Statement of Operations during the period ended October 31, 2013 is shown below:

  Amount of realized gain (loss) on derivatives recognized in income ($)  
  Financial  Forward      
Underlying risk  Futures4  Contracts5   Total  
Equity  1,914,776    1,914,776  
Foreign exchange    (1,140,924 )  (1,140,924 ) 
Total  1,914,776  (1,140,924 )  773,852  

 

Change in unrealized appreciation (depreciation) on derivatives recognized in income ($)

  Financial  Forward   
Underlying risk  Futures6  Contracts7  Total 
Equity  250,977    250,977 
Foreign exchange    82,989  82,989 
Total  250,977  82,989  333,966 

 

Statement of Operations location:

4  Net realized gain (loss) on financial futures. 
5  Net realized gain (loss) on forward foreign currency exchange contracts. 
6  Net unrealized appreciation (depreciation) on financial futures. 
7  Net unrealized appreciation (depreciation) on forward foreign currency exchange contracts. 

 

The following summarizes the average market value of derivatives outstanding during the period ended October 31, 2013:

  Average Market Value ($) 
Equity financial futures  5,295,088 
Forward contracts  6,102,795 

 

At October 31, 2013, the cost of investments for federal income tax purposes was $517,926,152; accordingly, accumulated net unrealized appreciation on investments was $52,317,609, consisting of $122,659,351 gross unrealized appreciation and $70,341,742 gross unrealized depreciation.

The Fund 55



REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors
Dreyfus International Stock Index Fund

We have audited the accompanying statement of assets and liabilities, including the statements of investments and financial futures, of Dreyfus International Stock Index Fund (one of the series comprising Dreyfus Index Funds, Inc.) as of October 31, 2013, 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 the financial highlights for each of the five years in the period then ended.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 the standards of the Public Company Accounting Oversight Board (United States).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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2013 by correspondence with the custodian and others. 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 International Stock Index Fund at October 31, 2013, 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 five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
December 27, 2013

56



IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund elects to provide each shareholder with their portion of the fund’s foreign taxes paid and the income sourced from foreign countries. Accordingly, the fund hereby reports the following information regarding its fiscal year ended October 31, 2013:

—the total amount of taxes paid to foreign countries was $1,125,547

—the total amount of income sourced from foreign countries was $15,704,211.

Where required by federal tax law rules, shareholders will receive notification of their proportionate share of foreign taxes paid and foreign sourced income for the 2013 calendar year with Form 1099-DIV which will be mailed in early 2014. For the fiscal year ended October 31, 2013, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $12,705,604 represents the maximum amount that may be considered qualified dividend income.

The Fund 57



BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (70) 
Chairman of the Board (1995) 
Principal Occupation During Past 5Years: 
• Corporate Director and Trustee 
Other Public Company Board Memberships During Past 5Years: 
• CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small 
and medium size companies, Director (1997-present) 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director (2000-2010) 
• Sunair Services Corporation, a provider of certain outdoor-related services to homes and 
businesses, Director (2005-2009) 
No. of Portfolios for which Board Member Serves: 141 
——————— 
Peggy C. Davis (70) 
Board Member (2006) 
Principal Occupation During Past 5Years: 
• Shad Professor of Law, New York University School of Law (1983-present) 
No. of Portfolios for which Board Member Serves: 56 
——————— 
David P. Feldman (73) 
Board Member (1989) 
Principal Occupation During Past 5Years: 
• Corporate Director and Trustee 
Other Public Company Board Memberships During Past 5Years: 
• BBH Mutual Funds Group (4 registered mutual funds), Director (1992-present) 
No. of Portfolios for which Board Member Serves: 42 
——————— 
Ehud Houminer (73) 
Board Member (1996) 
Principal Occupation During Past 5Years: 
• Executive-in-Residence at the Columbia Business School, Columbia University (1992-present) 
Other Public Company Board Memberships During Past 5Years: 
• Avnet Inc., an electronics distributor, Director (1993-2012) 
No. of Portfolios for which Board Member Serves: 66 

 

58



Lynn Martin (73) 
Board Member (2012) 
Principal Occupation During Past 5Years: 
• President ofThe Martin Hall Group LLC, a human resources consulting firm (January 2005-2012) 
Other Public Company Board Memberships During Past 5Years: 
• AT&T Inc., a telecommunications company, Director (1999-2012) 
• Ryder System, Inc., a supply chain and transportation management company, Director (1993-2012) 
• The Proctor & Gamble Co., a consumer products company, Director (1994-2009) 
• Constellation Energy Group Inc., Director (2003-2009) 
No. of Portfolios for which Board Member Serves: 42 
 
——————— 
Robin A. Melvin (50) 
Board Member (2012) 
Principal Occupation During Past 5Years: 
• Board Member, Illinois Mentoring Partnership, non-profit organization dedicated to increasing 
the quantity and quality of mentoring services in Illinois (2013-present) 
• Director, Boisi Family Foundation, a private family foundation that supports youth-serving orga- 
nizations that promote the self sufficiency of youth from disadvantaged circumstances (1995-2012) 
No. of Portfolios for which Board Member Serves: 90 
 
——————— 
Dr. Martin Peretz (74) 
Board Member (2006) 
Principal Occupation During Past 5Years: 
• Editor-in-Chief Emeritus of The New Republic Magazine (2010-2011) (previously, 
Editor-in-Chief, 1974-2010) 
• Director of TheStreet.com, a financial information service on the web (1996-2010) 
Other Public Company Board Memberships During Past 5Years: 
• Pershing Square Capital Management,Adviser (2009-present) 
No. of Portfolios for which Board Member Serves: 42 
 
——————— 
Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The 
address of the Board Members and Officers is c/o The Dreyfus Corporation, 200 Park Avenue, NewYork, NewYork 
10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information 
which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-DREYFUS. 
James F. Henry, Emeritus Board Member 
Dr. Paul A. Marks, Emeritus Board Member 
Philip L.Toia, Emeritus Board Member 

 

The Fund 59



OFFICERS OF THE FUND (Unaudited)


60




The Fund 61





Dreyfus

S&P 500

Index Fund

ANNUAL REPORT October 31, 2013




Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.




 

Contents

 

THE FUND

2     

A Letter from the President

3     

Discussion of Fund Performance

6     

Fund Performance

7     

Understanding Your Fund’s Expenses

7     

Comparing Your Fund’s Expenses With Those of Other Funds

8     

Statement of Investments

25     

Statement of Financial Futures

26     

Statement of Assets and Liabilities

27     

Statement of Operations

28     

Statement of Changes in Net Assets

29     

Financial Highlights

30     

Notes to Financial Statements

42     

Report of Independent Registered Public Accounting Firm

43     

Important Tax Information

44     

Board Members Information

46     

Officers of the Fund

 

FOR MORE INFORMATION

 

Back Cover



Dreyfus

S&P 500 Index Fund

The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this annual report for Dreyfus S&P 500 Index Fund, covering the 12-month period from November 1, 2012, through October 31, 2013. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Although expectations of higher long-term interest rates and a more moderately stimulative monetary policy sparked volatility in the U.S stock market at times during the reporting period, improved U.S. economic conditions drove stock prices substantially higher for the reporting period overall. Even the 16-day U.S. government shutdown in October failed to derail the market’s advance, enabling some broad measures of stock market performance to reach new record highs by the end of the month. Stocks across most capitalization ranges and investment styles produced strong results.

We currently expect U.S. economic conditions to continue to improve in 2014, with accelerating growth supported by the fading drags of tighter federal fiscal policies and downsizing on the state and local levels. Moreover, inflation is likely to remain muted, so monetary policy can remain stimulative. Globally, we anticipate stronger growth in many developed countries due to past and continuing monetary ease, while emerging markets seem poised for moderate economic expansion despite recently negative investor sentiment. For more information on how these observations may affect your investments, we encourage you to speak with your financial advisor.

Thank you for your continued confidence and support.


J. Charles Cardona
President
The Dreyfus Corporation
November 15, 2013

2



DISCUSSION OF FUND PERFORMANCE

For the period of November 1, 2012, through October 31, 2013, as provided by Thomas J. Durante, CFA, Karen Q.Wong, CFA, and Richard A. Brown, CFA, Portfolio Managers

Fund and Market Performance Overview

For the 12-month period ended October 31, 2013, Dreyfus S&P 500 Index Fund produced a total return of 26.56%.1 In comparison, the Standard & Poor’s® 500 Composite Stock Price Index (“S&P 500 Index”), the fund’s benchmark, returned 27.16% for the same period.2,3

U.S. stocks responded positively during the reporting period to recovering global and domestic economies.The difference in returns between the fund and the S&P 500 Index was primarily the result of transaction costs and operating expenses that are not reflected in the S&P 500 Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the S&P 500 Index by generally investing in all 500 stocks in the S&P 500 Index in proportion to their respective weightings. Often considered a barometer for the stock market in general, the S&P 500 Index is made up of 500 widely held common stocks across 10 economic sectors. Each stock is weighted by its float-adjusted market capitalization; that is, larger companies have greater representation in the S&P 500 Index than smaller ones.

The fund employed futures contracts during the reporting period in its efforts to replicate the returns of the S&P 500 Index.

Recovering U.S. and Global Economies Fueled Market Gains

The reporting period began soon after the start of a sustained stock market rally driven by improved U.S. employment and housing markets. Investors were particularly encouraged by a new round of quantitative easing from the Federal Reserve Board (the “Fed”) involving massive monthly purchases of U.S. government securities. Improving conditions in overseas markets also contributed to greater optimism as investors responded positively to the potential for improved earnings among U.S.-based multinationals and more robust export activity to overseas markets.

The Fund 3



DISCUSSION OF FUND PERFORMANCE (continued)

Economic data continued to improve, and stocks generally continued to rally, through the spring of 2013. However, in late May, relatively hawkish remarks by Fed chairman Ben Bernanke were widely interpreted as a signal that U.S. monetary policymakers would back away from their quantitative easing program sooner than many analysts had expected, sparking volatility that erased some of the market’s previous gains.The S&P 500 Index generally stabilized over the summer, and stocks advanced strongly in September when the Fed refrained from tapering its bond purchasing program. Even a 16-day federal government shutdown in October failed to derail the rally, enabling the S&P 500 Index to reach record highs by the reporting period’s end.

The Financials Sector Led the Market’s Advance

All of the economic sectors represented in the S&P 500 Index produced double-digit gains over the reporting period, reflecting broad-based support for U.S. equities. The financials sector led the market rally as large, diversified financial institutions rebounded from previously depressed levels in the wake of the 2007–2009 U.S. financial crisis. Big banks particularly benefited from widening net interest margins and greater mortgage refinancing activity as the U.S. economic recovery gained traction and long-term interest rates moved higher. In the insurance industry, financial results were bolstered by higher premiums at a time when relatively few domestic natural disasters kept claims low. Capital markets-oriented companies advanced along with the financial markets. However, large cap real estate investment trusts lagged sector averages by a wide margin when investors turned away from income-oriented stocks and toward their more growth-oriented counterparts.

In the consumer discretionary sector, media companies advanced strongly amid more robust spending by consumers on activities such as movies and visits to theme parks. Specialty retailers also gained value, including home improvement chains benefiting from recovering housing markets. Internet retailers exhibited strong earnings growth over the reporting period, with some Internet-related stocks doubling and tripling in value. Finally, in the industrials sector, aerospace and defense companies posted strong gains despite the potentially negative implications of reduced government spending stemming from protracted budget disagreements in Congress.

4



The fund received less favorable contributions from the materials sector, where metals-and-mining companies struggled with lower commodity prices due to waning demand for construction materials in the emerging markets. In addition, coal producers in the energy sector were hurt by intensifying competition from lower cost natural gas.

Replicating the Performance of the S&P 500 Index

Although we do not actively manage the fund’s investments in response to macroeconomic trends, it is worth noting that recent evidence of sustained domestic and global growth has the potential to fuel further gains in U.S. equity markets.As always, we have continued to monitor the factors considered by the fund’s investment model in light of current market conditions.

November 15, 2013

Equity funds are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund’s prospectus.

1  Total return includes reinvestment of dividends and any capital gains paid. Past performance is no guarantee of future 
  results. Share price and investment return fluctuate such that upon redemption, fund shares may be worth more or less 
  than their original cost. 
2  SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions. 
  The Standard & Poor’s 500 Composite Stock Price Index is a widely accepted, unmanaged index of U.S. stock 
  market performance. Investors cannot invest directly in any index. 
3  “Standard & Poor’s®,” “S&P®,” “Standard & Poor’s® 500” and “S&P 500®” are registered trademarks of 
  Standard & Poor’s Financial Services LLC, and have been licensed for use on behalf of the fund.The fund is not 
  sponsored, managed, advised, sold or promoted by Standard & Poor’s and its affiliates and Standard & Poor’s and its 
  affiliates make no representation regarding the advisability of investing in the fund. 

 

The Fund 5



FUND PERFORMANCE


Average Annual Total Returns as of 10/31/13          
  1 Year  5 Years   10 Years  
Fund  26.56 %  14.67 %  6.98 % 
Standard & Poor’s 500             
Composite Stock Price Index  27.16 %  15.16 %  7.45 % 

 

Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The above graph compares a $10,000 investment made in Dreyfus S&P 500 Index Fund on 10/31/03 to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all applicable fees and expenses.The Index is a widely accepted, unmanaged index of U.S. stock market performance. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. 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.

6



UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus S&P 500 Index Fund from May 1, 2013 to October 31, 2013. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended October 31, 2013

Expenses paid per $1,000  $ 2.66 
Ending value (after expenses)  $ 1,108.70 

 

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended October 31, 2013

Expenses paid per $1,000  $ 2.55 
Ending value (after expenses)  $ 1,022.68 

 

† Expenses are equal to the fund’s annualized expense ratio of .50%, multiplied by the average account value over the 
period, multiplied by 184/365 (to reflect the one-half year period). 

 

The Fund 7



STATEMENT OF INVESTMENTS

October 31, 2013

Common Stocks—99.4%  Shares   Value ($) 
Automobiles & Components—1.1%       
BorgWarner  19,930   2,055,381 
Delphi Automotive  49,333   2,821,848 
Ford Motor  688,460   11,779,551 
General Motors  163,941 a  6,057,620 
Goodyear Tire & Rubber  43,150   905,287 
Harley-Davidson  38,501   2,465,604 
Johnson Controls  121,027   5,585,396 
      31,670,687 
Banks—2.8%       
BB&T  123,747   4,203,686 
Comerica  33,381   1,445,397 
Fifth Third Bancorp  157,110   2,989,803 
Hudson City Bancorp  87,836   788,767 
Huntington Bancshares  151,668   1,334,678 
KeyCorp  158,395   1,984,689 
M&T Bank  23,072   2,596,292 
People’s United Financial  59,919   864,631 
PNC Financial Services Group  93,887   6,903,511 
Regions Financial  248,633   2,394,336 
SunTrust Banks  95,122   3,199,904 
U.S. Bancorp  323,680   12,092,685 
Wells Fargo & Co.  846,286   36,127,949 
Zions Bancorporation  33,419   948,097 
      77,874,425 
Capital Goods—8.1%       
3M  114,302   14,384,907 
AMETEK  42,934   2,053,533 
Boeing  121,368   15,838,524 
Caterpillar  111,899   9,327,901 
Cummins  30,235   3,840,450 
Danaher  104,321   7,520,501 
Deere & Co.  66,646   5,454,309 
Dover  29,488   2,706,704 
Eaton  82,524   5,822,893 
Emerson Electric  125,622   8,412,905 
Fastenal  47,507 b  2,365,849 

 

8



Common Stocks (continued)  Shares      Value ($) 
Capital Goods (continued)         
Flowserve  24,375      1,693,331 
Fluor  28,452      2,111,707 
General Dynamics  58,727      5,087,520 
General Electric  1,784,005      46,633,891 
Honeywell International  138,113      11,978,540 
Illinois Tool Works  72,900      5,743,791 
Ingersoll-Rand  46,900      3,167,157 
Jacobs Engineering Group  22,340  a   1,358,719 
Joy Global  18,859 b   1,070,248 
L-3 Communications Holdings  16,154      1,622,669 
Lockheed Martin  46,962      6,261,913 
Masco  61,285      1,294,952 
Northrop Grumman  40,889      4,395,976 
PACCAR  62,463      3,472,943 
Pall  19,090      1,537,127 
Parker Hannifin  25,965      3,030,635 
Pentair  34,313      2,302,059 
Precision Castparts  25,553      6,476,408 
Quanta Services  37,851  a   1,143,479 
Raytheon  56,962      4,691,960 
Rockwell Automation  23,946      2,643,878 
Rockwell Collins  23,815      1,663,001 
Roper Industries  17,614      2,233,631 
Snap-on  10,081      1,049,130 
Stanley Black & Decker  28,133      2,225,039 
Textron  48,699      1,402,044 
United Technologies  147,643      15,687,069 
W.W. Grainger  10,979      2,953,022 
Xylem  33,763      1,164,823 
        223,825,138 
Commercial & Professional Services—.7%         
ADT  35,540 b   1,541,370 
Cintas  17,248      927,425 
Dun & Bradstreet  6,424      698,867 
Equifax  20,748      1,341,773 
Iron Mountain  30,330      804,958 

 

The Fund 9



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Commercial & Professional       
Services (continued)       
Nielsen Holdings  37,109   1,463,579 
Pitney Bowes  37,470 b  799,610 
Republic Services  48,258   1,615,195 
Robert Half International  24,946   961,169 
Stericycle  14,882 a  1,729,288 
Tyco International  80,800   2,953,240 
Waste Management  76,952   3,350,490 
      18,186,964 
Consumer Durables & Apparel—1.2%       
Coach  49,351   2,501,109 
D.R. Horton  48,521   919,473 
Fossil Group  8,635 a  1,096,127 
Garmin  19,839 b  927,473 
Harman International Industries  11,678   946,152 
Hasbro  19,752 b  1,020,191 
Leggett & Platt  25,041   744,719 
Lennar, Cl. A  29,000   1,030,950 
Mattel  60,133   2,668,101 
Newell Rubbermaid  51,414   1,523,397 
NIKE, Cl. B  130,597   9,894,029 
PulteGroup  60,015   1,059,265 
PVH  13,933   1,735,634 
Ralph Lauren  10,735   1,778,145 
VF  15,513   3,335,295 
Whirlpool  14,030   2,048,520 
      33,228,580 
Consumer Services—1.8%       
Carnival  75,553   2,617,911 
Chipotle Mexican Grill  5,387 a  2,838,787 
Darden Restaurants  23,707   1,221,622 
H&R Block  48,006   1,365,291 
International Game Technology  44,710   840,548 
Marriott International, Cl. A  40,417   1,821,998 
McDonald’s  174,871   16,878,549 
Starbucks  132,187   10,713,756 

 

10



Common Stocks (continued)  Shares      Value ($) 
Consumer Services (continued)         
Starwood Hotels & Resorts Worldwide  34,602 c   2,547,399 
Wyndham Worldwide  23,021      1,528,594 
Wynn Resorts  13,838      2,300,567 
Yum! Brands  77,691      5,253,465 
        49,928,487 
Diversified Financials—8.2%         
American Express  163,300      13,357,940 
Ameriprise Financial  34,606      3,479,287 
Bank of America  1,880,878      26,257,057 
Bank of New York Mellon  202,050      6,425,190 
Berkshire Hathaway, Cl. B  315,257 a   36,279,776 
BlackRock  22,255      6,694,527 
Capital One Financial  103,073      7,078,023 
Charles Schwab  205,233      4,648,527 
Citigroup  532,410      25,970,960 
CME Group  55,780      4,139,434 
Discover Financial Services  84,813      4,400,098 
E*TRADE Financial  42,286  a   715,056 
Franklin Resources  71,181      3,833,809 
Goldman Sachs Group  73,504      11,823,853 
IntercontinentalExchange  12,790  a   2,465,017 
Invesco  78,462      2,648,093 
JPMorgan Chase & Co.  659,264      33,978,467 
Legg Mason  19,474      749,165 
Leucadia National  52,336      1,483,202 
McGraw-Hill Financial  47,654      3,320,531 
Moody’s  34,693      2,451,407 
Morgan Stanley  245,067      7,040,775 
NASDAQ OMX Group  19,811      701,904 
Northern Trust  38,540      2,174,427 
NYSE Euronext  43,808      1,928,428 
SLM  74,903      1,900,289 
State Street  77,600      5,437,432 
T. Rowe Price Group  46,303      3,584,315 
        224,966,989 

 

The Fund 11



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares      Value ($) 
Energy—10.5%         
Anadarko Petroleum  87,723      8,359,125 
Apache  70,345      6,246,636 
Baker Hughes  77,748      4,516,381 
Cabot Oil & Gas  73,970      2,612,620 
Cameron International  43,473  a   2,384,929 
Chesapeake Energy  87,315      2,441,327 
Chevron  338,442      40,599,502 
ConocoPhillips  213,879      15,677,331 
CONSOL Energy  40,833      1,490,405 
Denbury Resources  67,122  a   1,274,647 
Devon Energy  67,754      4,283,408 
Diamond Offshore Drilling  12,503      774,311 
Ensco, Cl. A  40,955      2,361,056 
EOG Resources  47,535      8,480,244 
EQT  26,271      2,249,060 
Exxon Mobil  771,337      69,127,222 
FMC Technologies  41,942 a    2,120,168 
Halliburton  147,449      7,819,220 
Helmerich & Payne  19,077      1,479,421 
Hess  51,236      4,160,363 
Kinder Morgan  119,486      4,219,051 
Marathon Oil  124,828      4,401,435 
Marathon Petroleum  55,624      3,986,016 
Murphy Oil  30,154      1,818,889 
Nabors Industries  46,161      806,894 
National Oilwell Varco  75,603      6,137,452 
Newfield Exploration  23,525 a   716,336 
Noble  45,097      1,700,157 
Noble Energy  62,386      4,674,583 
Occidental Petroleum  140,864      13,534,213 
Peabody Energy  48,931      953,176 
Phillips 66  107,319      6,914,563 
Pioneer Natural Resources  24,222      4,960,181 
QEP Resources  32,621      1,078,450 
Range Resources  28,835      2,183,098 
Rowan, Cl. A  22,488  a   811,367 

 

12



Common Stocks (continued)  Shares   Value ($) 
Energy (continued)       
Schlumberger  231,565   21,702,272 
Southwestern Energy  62,547 a  2,327,999 
Spectra Energy  117,779   4,189,399 
Tesoro  22,791   1,114,252 
Transocean  58,859   2,770,493 
Valero Energy  93,909   3,866,234 
Williams  118,711   4,239,170 
WPX Energy  35,479 a  785,505 
      288,348,561 
Food & Staples Retailing—2.4%       
Costco Wholesale  76,227   8,994,786 
CVS Caremark  216,201   13,460,674 
Kroger  90,682   3,884,817 
Safeway  41,753   1,457,180 
Sysco  103,774   3,356,051 
Wal-Mart Stores  284,878   21,864,386 
Walgreen  151,712   8,987,419 
Whole Foods Market  66,094   4,172,514 
      66,177,827 
Food, Beverage & Tobacco—5.5%       
Altria Group  352,776   13,133,850 
Archer-Daniels-Midland  116,265   4,755,239 
Beam  29,044   1,954,661 
Brown-Forman, Cl. B  28,832   2,104,159 
Campbell Soup  31,488   1,340,444 
Coca-Cola  667,458   26,411,313 
Coca-Cola Enterprises  43,196   1,802,569 
ConAgra Foods  73,325   2,332,468 
Constellation Brands, Cl. A  29,427 a  1,921,583 
Dr. Pepper Snapple Group  35,584   1,684,902 
General Mills  112,648   5,679,712 
Hershey  26,365   2,616,463 
Hormel Foods  22,888   994,712 
J.M. Smucker  18,779   2,088,413 
Kellogg  44,935   2,842,139 
Kraft Foods Group  104,852   5,701,852 

 

The Fund 13



STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)  Shares   Value ($) 
Food, Beverage & Tobacco (continued)       
Lorillard  65,356   3,333,810 
McCormick & Co.  23,885   1,651,648 
Mead Johnson Nutrition  35,637   2,910,117 
Molson Coors Brewing, Cl. B  27,760   1,499,040 
Mondelez International, Cl. A  310,975   10,461,199 
Monster Beverage  24,802 a  1,419,418 
PepsiCo  269,921   22,697,657 
Philip Morris International  283,346   25,251,796 
Reynolds American  56,564   2,905,693 
Tyson Foods, Cl. A  49,245   1,362,609 
      150,857,466 
Health Care Equipment & Services—4.2%       
Abbott Laboratories  273,325   9,990,029 
Aetna  65,220   4,089,294 
AmerisourceBergen  39,860   2,604,054 
Baxter International  95,335   6,279,716 
Becton Dickinson & Co.  34,191   3,594,500 
Boston Scientific  234,573 a  2,742,158 
C.R. Bard  13,683   1,863,898 
Cardinal Health  59,365   3,482,351 
CareFusion  37,094 a  1,438,134 
Cerner