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 | 811-6325 | |||||
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| Dreyfus Midcap Index Fund, Inc. |
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| (Exact name of Registrant as specified in charter) |
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c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166 |
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| (Address of principal executive offices) (Zip code) |
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| John Pak, Esq. 200 Park Avenue New York, New York 10166 |
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| (Name and address of agent for service) |
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Registrant's telephone number, including area code: | (212) 922-6000 | |||||
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Date of fiscal year end:
| 10/31 |
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Date of reporting period: | 04/30/15 |
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| Dreyfus |
| Midcap Index Fund, Inc. |
SEMIANNUAL REPORT April 30, 2015
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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 | Understanding Your Fund’s Expenses |
| 6 | Comparing Your Fund’s Expenses With Those of Other Funds |
| 7 | Statement of Investments |
| 21 | Statement of Financial Futures |
| 22 | Statement of Assets and Liabilities |
| 23 | Statement of Operations |
| 24 | Statement of Changes in Net Assets |
| 25 | Financial Highlights |
| 26 | Notes to Financial Statements |
| 36 | Information About the Renewal of the Fund’s Management Agreement |
FOR MORE INFORMATION | |
Back Cover |
Dreyfus
Midcap Index Fund, Inc.
The Fund
A LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Midcap Index Fund, covering the six-month period from November 1, 2014, through April 30, 2015. 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.
The U.S. stock market encountered bouts of heightened volatility on its way to posting modest gains for the reporting period overall. Investors were confounded to a degree by divergent economic trends in domestic and international markets. On one hand, stock prices were driven broadly higher over the final months of 2014 as U.S. corporate fundamentals benefited from a sustained economic recovery, which was fueled by strengthening labor markets, intensifying manufacturing activity, and greater consumer and business confidence. However, gains moderated over the first four months of 2015, when investors worried that persistent economic weakness in overseas markets and a strengthening U.S. dollar might derail growth in the United States.
We remain optimistic regarding the long-term outlook for the U.S. economy generally and the U.S. equities asset class in particular. We believe the domestic economic recovery has continued at a sustainable pace, energy prices appear to have stabilized, foreign currencies recently have strengthened, and aggressively accommodative monetary policies from the world’s major central banks seem likely to address global economic weakness. In the meantime, expectations of the timing of short-term interest rate hikes from monetary policymakers have been pushed back, and eventual rate increases are expected to be gradual and modest. As always, we urge you to discuss these observations with your financial advisor, who can help you assess their implications for your investment portfolio.
Thank you for your continued confidence and support.
Sincerely,
J. Charles Cardona
President
The Dreyfus Corporation
May 15, 2015
2
DISCUSSION OF FUND PERFORMANCE
For the reporting period of November 1, 2014, through April 30, 2015, 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 six-month period ended April 30, 2015, Dreyfus Midcap Index Fund produced a total return of 6.31%.1 The Standard & Poor’s MidCap 400® Index (“S&P 400 Index”), the fund’s benchmark, produced a total return of 6.53% for the same period.2,3
Despite high levels of volatility, midcap stock prices gained value amid continued U.S. economic growth and aggressive stimulus programs in overseas markets. The difference in returns between the fund and the S&P 400 Index was primarily the result of transaction costs and operating expenses that are not reflected in the S&P 400 Index’s results.
The Fund’s Investment Approach
The fund seeks to match the total return of the S&P 400 Index by generally investing in all 400 stocks in the S&P 400 Index, in proportion to their respective weight-ings.The fund may also use stock index futures as a substitute for the sale or purchase of stocks.The S&P 400 Index is composed of 400 stocks of midsize domestic companies across 10 economic sectors. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 400 Index than smaller ones.
The fund employed futures contracts during the reporting period in its efforts to replicate the returns of the S&P 400 Index.
Financial Markets Buffeted by Volatility
Although the U.S. economy continued to recover during the reporting period, the expansion proved uneven. Relatively robust economic growth over the final months of 2014 was followed by weak data during the first quarter of 2015 stemming from harsh winter weather, but economic activity appeared to rebound in the spring.
Persistently sluggish growth and deflationary pressures in international markets further increased investor uneasiness. A steep decline in oil prices generated challenges
The Fund 3
DISCUSSION OF FUND PERFORMANCE (continued)
for energy producers, while consumers and certain industries benefited from lower gasoline and energy prices.
U.S. economic activity also was influenced over the reporting period by changes in currency exchange rates.Aggressively accommodative monetary policies adopted by major central banks in Europe, Japan, and China sent sovereign bond yields to historical lows, including negative yields at times in Europe. Global investors instead flocked to higher yielding U.S.Treasury securities, and the resulting influx of capital to domestic investments caused the U.S. dollar to appreciate sharply against the euro, yen, and most other currencies. This development made U.S. manufactured goods more expensive for overseas customers, hampering revenues for U.S. exporters.
Most Industry Groups Posted Mild Gains
Equity markets proved choppy in this environment. During the first four months of the reporting period, broad measures of stock market performance repeatedly vacillated between gains and losses. By mid-March 2015, however, the market regained its footing, remaining in positive territory through the rest of the reporting period. Midcap stocks, which typically have only modest exposure to overseas markets, produced higher returns than their large-cap counterparts, on average.
Most industry groups posted gains for the reporting period overall, led by the information technology, health care, and financials sectors. Conversely, the energy, utilities, and materials sectors fared relatively poorly.
The information technology sector was driven higher by enterprise software developers that encountered more robust demand from small- and medium-size customers in the automotive, financials, and digital marketing industries. Semiconductor manufacturers also advanced amid rising sales of smartphones containing their microchips. In the health care sector, medical service providers benefited from better-than-expected progress in controlling costs, higher U.S. employment levels, and positive changes in Medicare reimbursement rates. Hospitals also were bolstered by long-term demographic trends and rising demand for preventative testing.
Among financial stocks, real estate investment trusts (REITs) generally gained value. REITs focusing on office properties in major cities particularly benefited from falling vacancy rates, and those engaged in the development and management of res-
4
idential apartments experienced strong demand from young Americans who are waiting longer before buying homes. Meanwhile, regional banks have experienced rising lending volumes in areas of the country where the economic recovery has been especially robust.
Weakness in the energy sector was severe among smaller exploration-and-production companies and drilling equipment providers, which saw reduced demand for their services as crude oil prices declined. Likewise, coal producers were hurt by plunging commodity prices. In the utilities sector, coal-based power producers struggled with rising costs related to more stringent environmental regulations.The materials sector struggled with lower commodity prices for metals-and-mining firms, but some chemicals producers benefited from lower costs for raw materials.
Replicating the Performance of the S&P 400 Index
Although we do not actively manage the fund’s investments in response to macroeconomic trends, it is worth noting that the U.S. economic recovery appears to remain on track. As always, we have continued to monitor the factors considered by the fund’s investment model in light of current market conditions.
May 15, 2015
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.
Stocks of midcap companies often experience sharper price fluctuations than stocks of large-cap companies.
| 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 MidCap 400 Index is a widely accepted, unmanaged total return index measuring the |
| performance of the midsize company segment of the U.S. market. Investors cannot invest directly in any index. |
| 3 “Standard & Poor’s®,” “S&P®,” and “S&P MidCap 400®” 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, endorsed, |
| 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
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 Midcap Index Fund, Inc. from November 1, 2014 to April 30, 2015. 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 April 30, 2015
| Expenses paid per $1,000† | $ 2.56 | |
| Ending value (after expenses) | $ 1,063.10 |
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 April 30, 2015
| Expenses paid per $1,000† | $ 2.51 | |
| Ending value (after expenses) | $ 1,022.32 |
| † Expenses are equal to the fund’s annualized expense ratio of .50%, multiplied by the average account value over the |
| period, multiplied by 181/365 (to reflect the one-half year period). |
6
STATEMENT OF INVESTMENTS
April 30, 2015 (Unaudited)
| Common Stocks—98.1% | Shares | Value ($) | |
| Automobiles & Components—.7% | |||
| Dana Holding | 363,688 | 7,844,750 | |
| Gentex | 654,134 | 11,349,225 | |
| Thor Industries | 103,222 | 6,210,868 | |
| 25,404,843 | |||
| Banks—5.5% | |||
| Associated Banc-Corp | 332,626 | 6,256,695 | |
| BancorpSouth | 191,065 | 4,625,684 | |
| Bank of Hawaii | 97,115 | 5,864,775 | |
| Cathay General Bancorp | 162,211 | 4,635,990 | |
| City National | 105,115 | 9,796,718 | |
| Commerce Bancshares | 181,240 | 7,740,760 | |
| Cullen/Frost Bankers | 121,908 | 8,891,970 | |
| East West Bancorp | 317,897 | 12,903,439 | |
| First Horizon National | 514,075 | 7,325,569 | |
| First Niagara Financial Group | 773,844 | 7,038,111 | |
| FirstMerit | 361,647 | 7,005,102 | |
| Fulton Financial | 393,494 | 4,784,887 | |
| Hancock Holding | 178,752 | 5,203,471 | |
| International Bancshares | 124,018 | 3,221,988 | |
| New York Community Bancorp | 979,345 | 16,834,941 | |
| PacWest Bancorp | 214,630 | 9,679,813 | |
| Prosperity Bancshares | 133,783 | 7,135,985 | |
| Signature Bank | 111,374 | a | 14,934,140 |
| SVB Financial Group | 112,821 | a | 14,978,116 |
| Synovus Financial | 297,462 | 8,227,799 | |
| TCF Financial | 359,593 | 5,631,226 | |
| Trustmark | 145,709 | 3,467,874 | |
| Umpqua Holdings | 481,603 | 8,192,067 | |
| Valley National Bancorp | 492,287 | 4,642,266 | |
| Washington Federal | 214,224 | 4,627,238 | |
| Webster Financial | 197,295 | 7,069,080 | |
| 200,715,704 | |||
| Capital Goods—10.2% | |||
| A.O. Smith | 166,351 | 10,629,829 | |
| Acuity Brands | 95,974 | 16,022,859 |
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Common Stocks (continued) | Shares | Value ($) | |
| Capital Goods (continued) | |||
| AECOM | 344,563 | a | 10,874,408 |
| AGCO | 182,690 | b | 9,410,362 |
| B/E Aerospace | 234,550 | 14,023,745 | |
| Carlisle | 144,311 | 13,926,011 | |
| CLARCOR | 109,576 | 7,122,440 | |
| Crane | 106,721 | 6,521,720 | |
| Donaldson | 281,452 | 10,517,861 | |
| Esterline Technologies | 69,536 | a | 7,738,661 |
| Exelis | 413,385 | 10,136,200 | |
| Fortune Brands Home & Security | 351,097 | 15,658,926 | |
| GATX | 96,797 | 5,265,757 | |
| Graco | 128,921 | 9,233,322 | |
| Granite Construction | 78,770 | 2,734,107 | |
| Harsco | 177,120 | 2,848,090 | |
| Hubbell, Cl. B | 118,337 | 12,878,616 | |
| Huntington Ingalls Industries | 106,918 | 14,069,340 | |
| IDEX | 172,961 | 12,973,805 | |
| ITT | 201,949 | 8,007,278 | |
| KBR | 316,115 | 5,522,529 | |
| Kennametal | 176,066 | 6,234,497 | |
| KLX | 114,329 | a | 4,791,528 |
| Lennox International | 91,111 | 9,654,122 | |
| Lincoln Electric Holdings | 172,121 | 11,508,010 | |
| MSC Industrial Direct, Cl. A | 110,861 | 7,877,783 | |
| Nordson | 126,005 | 10,036,298 | |
| NOW | 233,642 | b | 5,584,044 |
| Orbital ATK | 128,104 | 9,372,089 | |
| Oshkosh | 174,266 | 9,382,481 | |
| Regal Beloit | 97,694 | 7,639,671 | |
| SPX | 89,728 | 6,909,056 | |
| Teledyne Technologies | 78,480 | a | 8,238,046 |
| Terex | 231,859 | 6,366,848 | |
| Timken | 162,786 | 6,395,862 | |
| Trinity Industries | 344,814 | 9,341,011 | |
| Triumph Group | 111,095 | 6,581,268 |
8
| Common Stocks (continued) | Shares | Value ($) | |
| Capital Goods (continued) | |||
| Valmont Industries | 53,590 | 6,753,412 | |
| Wabtec | 213,078 | 20,039,986 | |
| Watsco | 59,721 | 7,183,839 | |
| Woodward | 127,405 | 5,994,405 | |
| 372,000,122 | |||
| Commercial & Professional Services—2.9% | |||
| Clean Harbors | 119,107 | a | 6,580,662 |
| Copart | 248,667 | a | 8,845,085 |
| Corporate Executive Board | 73,662 | 6,175,085 | |
| Deluxe | 109,024 | 7,059,304 | |
| FTI Consulting | 90,212 | a | 3,708,615 |
| Herman Miller | 127,959 | 3,507,356 | |
| HNI | 96,511 | 4,501,273 | |
| Manpowergroup | 172,339 | 14,705,687 | |
| MSA Safety | 68,957 | 3,154,093 | |
| R.R. Donnelley & Sons | 436,665 | 8,130,702 | |
| Rollins | 210,541 | 5,221,417 | |
| Towers Watson & Co., Cl. A | 153,861 | 19,525,730 | |
| Waste Connections | 274,541 | 13,015,989 | |
| 104,130,998 | |||
| Consumer Durables & Apparel—3.5% | |||
| Brunswick | 205,726 | 10,294,529 | |
| Carter’s | 117,020 | 11,685,617 | |
| Deckers Outdoor | 75,471 | a | 5,584,854 |
| Jarden | 396,747 | a | 20,305,511 |
| Kate Spade & Company | 278,450 | a | 9,105,315 |
| KB Home | 198,905 | b | 2,882,133 |
| M.D.C. Holdings | 84,590 | b | 2,270,396 |
| NVR | 8,481 | a | 11,249,962 |
| Polaris Industries | 134,951 | 18,482,889 | |
| Tempur Sealy International | 135,241 | a | 8,237,529 |
| Toll Brothers | 352,672 | a | 12,533,963 |
| Tupperware Brands | 109,829 | 7,343,167 | |
| Vista Outdoor | 138,650 | 6,067,324 | |
| 126,043,189 |
The Fund 9
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Common Stocks (continued) | Shares | Value ($) | |
| Consumer Services—2.5% | |||
| Apollo Education Group | 211,050 | a | 3,542,474 |
| Brinker International | 137,936 | 7,637,516 | |
| Buffalo Wild Wings | 41,367 | a | 6,589,763 |
| Cheesecake Factory | 100,739 | 5,050,046 | |
| DeVry Education Group | 124,885 | 3,776,522 | |
| Domino’s Pizza | 123,210 | 13,288,199 | |
| Dunkin’ Brands Group | 215,307 | 11,219,648 | |
| Graham Holdings, Cl. B | 9,813 | 10,038,012 | |
| International Speedway, Cl. A | 60,536 | 2,201,089 | |
| Life Time Fitness | 78,799 | a | 5,634,129 |
| Panera Bread, Cl. A | 55,671 | a | 10,158,844 |
| Service Corporation International | 452,614 | 12,528,356 | |
| Sotheby’s | 134,515 | 5,745,136 | |
| Wendy’s | 612,663 | 6,200,150 | |
| 103,609,884 | |||
| Diversified Financials—2.9% | |||
| CBOE Holdings | 186,187 | 10,476,742 | |
| Eaton Vance | 262,424 | 10,780,378 | |
| Federated Investors, Cl. B | 208,414 | 7,169,442 | |
| Janus Capital Group | 323,160 | 5,784,564 | |
| MSCI | 248,715 | 15,218,871 | |
| Raymond James Financial | 281,212 | 15,896,914 | |
| SEI Investments | 288,194 | 13,158,938 | |
| SLM | 925,441 | a | 9,430,244 |
| Stifel Financial | 144,876 | a | 7,655,248 |
| Waddell & Reed Financial, Cl. A | 182,607 | 9,006,177 | |
| 104,577,518 | |||
| Energy—4.8% | |||
| Atwood Oceanics | 130,126 | 4,343,606 | |
| California Resources | 674,023 | 6,268,414 | |
| Denbury Resources | 772,866 | b | 6,808,949 |
| Dresser-Rand Group | 169,742 | a | 14,032,571 |
| Dril-Quip | 84,439 | a | 6,731,477 |
| Energen | 161,750 | 11,511,747 | |
| Gulfport Energy | 209,928 | a | 10,273,876 |
| Helix Energy Solutions Group | 214,268 | a | 3,531,137 |
10
| Common Stocks (continued) | Shares | Value ($) | |
| Energy (continued) | |||
| HollyFrontier | 433,897 | 16,826,526 | |
| Nabors Industries | 632,891 | 10,569,280 | |
| Oceaneering International | 220,681 | 12,161,730 | |
| Oil States International | 113,504 | a | 5,401,655 |
| Patterson-UTI Energy | 325,548 | 7,275,998 | |
| Peabody Energy | 600,425 | b | 2,840,010 |
| Rosetta Resources | 158,108 | a | 3,609,606 |
| Rowan, Cl. A | 277,457 | 5,879,314 | |
| SM Energy | 147,430 | 8,546,517 | |
| Superior Energy Services | 332,516 | 8,479,158 | |
| Tidewater | 108,063 | b | 2,992,264 |
| Unit | 100,194 | a | 3,490,759 |
| Western Refining | 159,479 | 7,025,050 | |
| World Fuel Services | 159,882 | 8,873,451 | |
| WPX Energy | 453,845 | a | 6,240,369 |
| 173,713,464 | |||
| Food & Staples Retailing—.3% | |||
| SUPERVALU | 447,863 | a | 3,936,716 |
| United Natural Foods | 109,273 | a | 7,371,557 |
| 11,308,273 | |||
| Food, Beverage & Tobacco—2.2% | |||
| Boston Beer, Cl. A | 19,819 | a | 4,911,148 |
| Dean Foods | 210,499 | 3,420,609 | |
| Flowers Foods | 408,628 | b | 9,128,750 |
| Hain Celestial Group | 225,167 | a | 13,564,060 |
| Ingredion | 158,370 | 12,574,578 | |
| Lancaster Colony | 42,466 | 3,807,502 | |
| Post Holdings | 114,362 | a | 5,368,152 |
| Tootsie Roll Industries | 44,637 | b | 1,382,851 |
| TreeHouse Foods | 93,501 | a | 7,597,891 |
| WhiteWave Foods | 385,932 | a | 16,969,430 |
| 78,724,971 | |||
| Health Care Equipment & Services—6.5% | |||
| Align Technology | 158,743 | a | 9,340,438 |
| Allscripts Healthcare Solutions | 367,860 | a | 4,892,538 |
| Centene | 262,839 | a | 16,293,390 |
The Fund 11
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Common Stocks (continued) | Shares | Value ($) | |
| Health Care Equipment & Services (continued) | |||
| Community Health Systems | 258,444 | a | 13,873,274 |
| Cooper | 106,798 | 19,017,520 | |
| Halyard Health | 101,656 | 4,928,283 | |
| Health Net | 169,988 | a | 8,949,868 |
| Hill-Rom Holdings | 124,878 | 6,236,407 | |
| HMS Holdings | 192,065 | a | 3,267,026 |
| Hologic | 538,825 | a | 18,179,956 |
| IDEXX Laboratories | 103,797 | a | 13,013,030 |
| LifePoint Hospitals | 98,166 | a | 7,350,670 |
| MEDNAX | 212,237 | a | 15,022,135 |
| Omnicare | 214,889 | 18,905,934 | |
| Owens & Minor | 138,310 | 4,663,813 | |
| ResMed | 310,777 | 19,871,081 | |
| Sirona Dental Systems | 123,107 | a | 11,418,174 |
| STERIS | 130,189 | 8,657,568 | |
| Teleflex | 91,831 | 11,291,540 | |
| Thoratec | 120,458 | a | 4,831,570 |
| VCA | 183,531 | a | 9,354,575 |
| WellCare Health Plans | 97,483 | a | 7,548,109 |
| 236,906,899 | |||
| Household & Personal Products—1.4% | |||
| Avon Products | 950,806 | 7,768,085 | |
| Church & Dwight | 290,855 | 23,608,700 | |
| Energizer Holdings | 137,413 | 18,773,364 | |
| 50,150,149 | |||
| Insurance—4.8% | |||
| Alleghany | 35,408 | a | 16,766,396 |
| American Financial Group | 162,452 | 10,266,966 | |
| Arthur J. Gallagher & Co. | 364,503 | 17,434,178 | |
| Aspen Insurance Holdings | 136,185 | 6,363,925 | |
| Brown & Brown | 257,169 | 8,216,550 | |
| CNO Financial Group | 441,664 | 7,508,288 | |
| Everest Re Group | 98,467 | 17,616,731 | |
| First American Financial | 235,542 | 8,194,506 | |
| HCC Insurance Holdings | 213,796 | 12,177,820 | |
| Kemper | 109,320 | 4,118,084 |
12
| Common Stocks (continued) | Shares | Value ($) | |
| Insurance (continued) | |||
| Mercury General | 79,455 | 4,365,258 | |
| Old Republic International | 527,905 | 8,071,667 | |
| Primerica | 116,330 | 5,376,773 | |
| Reinsurance Group of America | 152,246 | 13,948,779 | |
| RenaissanceRe Holdings | 101,447 | 10,397,303 | |
| StanCorp Financial Group | 92,011 | 6,632,153 | |
| The Hanover Insurance Group | 96,815 | 6,638,605 | |
| W.R. Berkley | 223,012 | 10,925,358 | |
| 175,019,340 | |||
| Materials—7.4% | |||
| Albemarle | 248,356 | 14,826,853 | |
| AptarGroup | 138,938 | 8,623,882 | |
| Ashland | 140,974 | 17,813,475 | |
| Bemis | 217,815 | 9,801,675 | |
| Cabot | 140,159 | 5,990,396 | |
| Carpenter Technology | 115,730 | b | 5,005,323 |
| Commercial Metals | 255,020 | 4,233,332 | |
| Compass Minerals International | 74,672 | 6,595,778 | |
| Cytec Industries | 158,160 | 8,744,666 | |
| Domtar | 141,101 | 6,098,385 | |
| Eagle Materials | 109,875 | 9,162,476 | |
| Greif, Cl. A | 73,442 | 2,993,496 | |
| Louisiana-Pacific | 317,004 | a | 4,831,141 |
| Minerals Technologies | 75,820 | 5,135,289 | |
| NewMarket | 23,223 | 10,378,359 | |
| Olin | 168,931 | 4,988,532 | |
| Packaging Corporation of America | 217,732 | 15,064,877 | |
| PolyOne | 194,674 | 7,602,020 | |
| Reliance Steel & Aluminum | 171,887 | 11,124,527 | |
| Rock-Tenn, Cl. A | 309,474 | 19,490,673 | |
| Royal Gold | 144,618 | 9,332,200 | |
| RPM International | 296,090 | 14,076,119 | |
| Scotts Miracle-Gro, Cl. A | 97,071 | 6,262,050 | |
| Sensient Technologies | 105,542 | 6,898,225 | |
| Silgan Holdings | 95,200 | 5,128,424 | |
| Sonoco Products | 223,203 | 9,974,942 |
The Fund 13
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Common Stocks (continued) | Shares | Value ($) | |
| Materials (continued) | |||
| Steel Dynamics | 535,225 | 11,844,529 | |
| TimkenSteel | 83,286 | 2,431,118 | |
| United States Steel | 323,299 | b | 7,765,642 |
| Valspar | 165,999 | 13,462,519 | |
| Worthington Industries | 112,016 | 3,027,792 | |
| 268,708,715 | |||
| Media—1.4% | |||
| AMC Networks, Cl. A | 130,961 | a | 9,879,698 |
| Cinemark Holdings | 230,812 | 9,839,516 | |
| DreamWorks Animation SKG, Cl. A�� | 158,669 | a | 4,134,914 |
| John Wiley & Sons, Cl. A | 101,677 | 5,783,388 | |
| Live Nation Entertainment | 317,019 | a | 7,944,496 |
| Meredith | 81,428 | 4,237,513 | |
| New York Times, Cl. A | 283,973 | 3,802,398 | |
| Time | 239,233 | 5,461,689 | |
| 51,083,612 | |||
| Pharmaceuticals, Biotech & Life Sciences—1.8% | |||
| Akorn | 171,926 | a | 7,158,999 |
| Bio-Rad Laboratories, Cl. A | 45,153 | a | 6,070,821 |
| Bio-Techne | 81,150 | 7,787,154 | |
| Charles River Laboratories International | 103,426 | a | 7,152,942 |
| Mettler-Toledo International | 62,105 | a | 19,687,906 |
| United Therapeutics | 102,584 | a | 16,381,639 |
| 64,239,461 | |||
| Real Estate—9.8% | |||
| Alexander & Baldwin | 98,358 | 3,981,532 | |
| Alexandria Real Estate Equities | 159,424 | c | 14,727,589 |
| American Campus Communities | 248,615 | c | 9,979,406 |
| BioMed Realty Trust | 446,321 | c | 9,261,161 |
| Camden Property Trust | 191,940 | c | 14,410,855 |
| Communications Sales & Leasing | 265,940 | 7,999,481 | |
| Corporate Office Properties Trust | 205,736 | c | 5,429,373 |
| Corrections Corporation of America | 258,859 | c | 9,523,423 |
| Douglas Emmett | 300,305 | c | 8,558,693 |
| Duke Realty | 762,800 | c | 15,111,068 |
| Equity One | 169,256 | c | 4,168,775 |
14
| Common Stocks (continued) | Shares | Value ($) | |
| Real Estate (continued) | |||
| Extra Space Storage | 244,667 | c | 16,130,895 |
| Federal Realty Investment Trust | 151,821 | c | 20,293,913 |
| Highwoods Properties | 206,033 | c | 8,867,660 |
| Home Properties | 126,287 | c | 9,289,672 |
| Hospitality Properties Trust | 332,245 | c | 9,993,930 |
| Jones Lang LaSalle | 99,200 | 16,473,152 | |
| Kilroy Realty | 191,201 | c | 13,573,359 |
| Lamar Advertising, Cl. A | 177,870 | 10,309,345 | |
| LaSalle Hotel Properties | 250,337 | c | 9,184,865 |
| Liberty Property Trust | 329,822 | c | 11,490,998 |
| Mack-Cali Realty | 182,956 | c | 3,284,060 |
| Mid-America Apartment Communities | 166,742 | c | 12,440,621 |
| National Retail Properties | 292,861 | b,c | 11,245,862 |
| Omega Healthcare Investors | 349,577 | c | 12,616,234 |
| Potlatch | 89,278 | c | 3,295,251 |
| Rayonier | 281,090 | c | 7,193,093 |
| Regency Centers | 208,374 | c | 13,081,720 |
| Senior Housing Properties Trust | 520,608 | c | 10,656,846 |
| Tanger Factory Outlet Centers | 208,666 | c | 7,007,004 |
| Taubman Centers | 140,312 | c | 10,103,867 |
| UDR | 572,339 | c | 18,755,549 |
| Urban Edge Properties | 190,983 | 4,321,945 | |
| Weingarten Realty Investors | 249,982 | c | 8,189,410 |
| WP GLIMCHER | 404,482 | 6,067,230 | |
| 357,017,837 | |||
| Retailing—5.2% | |||
| Aaron’s | 141,793 | 4,820,962 | |
| Abercrombie & Fitch, Cl. A | 151,296 | b | 3,401,134 |
| Advance Auto Parts | 161,709 | 23,124,387 | |
| American Eagle Outfitters | 390,036 | 6,205,473 | |
| ANN | 100,241 | a | 3,795,124 |
| Ascena Retail Group | 288,001 | a | 4,317,135 |
| Big Lots | 116,964 | 5,330,049 | |
| Cabela’s | 103,626 | a | 5,465,235 |
| Chico’s FAS | 336,858 | 5,679,426 | |
| CST Brands | 168,803 | 7,040,773 |
The Fund 15
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Common Stocks (continued) | Shares | Value ($) | |
| Retailing (continued) | |||
| Dick’s Sporting Goods | 217,272 | 11,789,179 | |
| Foot Locker | 314,257 | 18,682,579 | |
| Guess? | 138,552 | 2,536,887 | |
| HSN | 71,000 | 4,431,820 | |
| J.C. Penney | 663,359 | a | 5,505,880 |
| LKQ | 672,783 | a | 18,212,236 |
| Murphy USA | 93,967 | a | 6,138,864 |
| Office Depot | 1,088,124 | a | 10,032,503 |
| Rent-A-Center | 115,586 | 3,421,346 | |
| Signet Jewelers | 177,247 | 23,774,140 | |
| Williams-Sonoma | 189,558 | 13,938,200 | |
| 187,643,332 | |||
| Semiconductors & Semiconductor | |||
| Equipment—2.6% | |||
| Advanced Micro Devices | 1,375,589 | a,b | 3,108,831 |
| Atmel | 907,596 | 6,879,578 | |
| Cree | 243,941 | a,b | 7,728,051 |
| Cypress Semiconductor | 704,595 | a | 9,385,205 |
| Fairchild Semiconductor International | 260,891 | a | 4,739,085 |
| Integrated Device Technology | 329,569 | a | 5,994,860 |
| Intersil, Cl. A | 285,163 | 3,806,926 | |
| Qorvo | 328,195 | a | 21,631,332 |
| Semtech | 145,851 | a | 3,396,870 |
| Silicon Laboratories | 86,170 | a | 4,452,404 |
| SunEdison | 557,891 | a,b | 14,125,800 |
| Teradyne | 483,022 | 8,815,151 | |
| 94,064,093 | |||
| Software & Services—8.7% | |||
| ACI Worldwide | 253,184 | a | 5,830,828 |
| Acxiom | 168,844 | a | 2,948,016 |
| Advent Software | 98,375 | 4,270,459 | |
| ANSYS | 200,018 | a | 17,169,545 |
| AOL | 171,336 | a | 6,836,306 |
| Broadridge Financial Solutions | 267,527 | 14,425,056 | |
| Cadence Design Systems | 647,541 | a | 12,076,640 |
| CDK Global | 356,033 | 17,061,101 |
16
| Common Stocks (continued) | Shares | Value ($) | |
| Software & Services (continued) | |||
| CommVault Systems | 91,618 | a | 4,191,524 |
| Convergys | 219,939 | 4,988,217 | |
| CoreLogic | 196,200 | a | 7,673,382 |
| DST Systems | 64,084 | 7,374,787 | |
| FactSet Research Systems | 85,878 | 13,516,338 | |
| Fair Isaac | 70,327 | 6,221,126 | |
| Fortinet | 314,346 | a | 11,863,418 |
| Gartner | 193,678 | a | 16,071,400 |
| Global Payments | 147,337 | 14,774,954 | |
| Informatica | 242,520 | a | 11,657,936 |
| Jack Henry & Associates | 181,110 | 12,045,626 | |
| Leidos Holdings | 135,948 | 5,660,875 | |
| MAXIMUS | 146,027 | 9,347,188 | |
| Mentor Graphics | 214,570 | 5,134,660 | |
| NeuStar, Cl. A | 121,092 | 3,632,760 | |
| PTC | 253,260 | a | 9,709,988 |
| Rackspace Hosting | 259,526 | a | 13,988,451 |
| Rovi | 203,697 | a | 3,770,431 |
| Science Applications International | 85,761 | 4,296,626 | |
| SolarWinds | 144,992 | a | 7,072,710 |
| Solera Holdings | 149,055 | 7,232,149 | |
| Synopsys | 339,236 | a | 15,903,384 |
| Tyler Technologies | 73,376 | a | 8,948,203 |
| Ultimate Software Group | 63,400 | a | 10,538,348 |
| VeriFone Systems | 252,339 | a | 9,026,166 |
| WEX | 86,043 | a | 9,697,907 |
| 314,956,505 | |||
| Technology Hardware & Equipment—5.3% | |||
| 3D Systems | 228,441 | a,b | 5,731,585 |
| ARRIS Group | 288,680 | a | 9,721,299 |
| Arrow Electronics | 211,117 | a | 12,605,796 |
| Avnet | 301,980 | 12,873,407 | |
| Belden | 93,274 | 7,830,352 | |
| Ciena | 236,525 | a | 5,037,983 |
| Cognex | 189,194 | a | 8,492,919 |
| Diebold | 141,399 | 4,916,443 |
The Fund 17
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Common Stocks (continued) | Shares | Value ($) | |
| Technology Hardware & Equipment (continued) | |||
| FEI | 91,380 | 6,895,535 | |
| Ingram Micro, Cl. A | 341,446 | a,b | 8,590,781 |
| InterDigital | 80,924 | 4,428,161 | |
| IPG Photonics | 79,089 | a | 7,005,704 |
| Itron | 82,865 | a | 2,971,539 |
| Jabil Circuit | 428,372 | 9,646,937 | |
| JDS Uniphase | 508,433 | a | 6,436,762 |
| Keysight Technologies | 372,957 | 12,479,141 | |
| Knowles | 185,047 | a,b | 3,547,351 |
| Lexmark International, Cl. A | 135,011 | 5,993,138 | |
| National Instruments | 221,219 | 6,326,863 | |
| NCR | 373,800 | a | 10,257,072 |
| Plantronics | 93,952 | 5,004,823 | |
| Polycom | 290,188 | a | 3,786,953 |
| Tech Data | 83,593 | a | 4,712,137 |
| Trimble Navigation | 573,768 | a | 14,590,920 |
| Vishay Intertechnology | 294,591 | 3,735,414 | |
| Zebra Technologies, Cl. A | 112,883 | a | 10,394,267 |
| 194,013,282 | |||
| Telecommunication Services—.2% | |||
| Telephone & Data Systems | 215,170 | 5,747,191 | |
| Windstream Holdings | 221,616 | b | 2,588,474 |
| 8,335,665 | |||
| Transportation—2.6% | |||
| Alaska Air Group | 290,420 | 18,604,305 | |
| Con-way | 125,829 | 5,171,572 | |
| Genesee & Wyoming, Cl. A | 113,618 | a | 10,560,793 |
| J.B. Hunt Transport Services | 203,656 | 17,758,803 | |
| JetBlue Airways | 578,633 | a | 11,879,335 |
| Kirby | 123,751 | a | 9,718,166 |
| Landstar System | 99,571 | 6,204,269 | |
| Old Dominion Freight Line | 150,419 | a | 10,699,303 |
| Werner Enterprises | 98,649 | 2,650,699 | |
| 93,247,245 |
18
| Common Stocks (continued) | Shares | Value ($) | ||
| Utilities—4.6% | ||||
| Alliant Energy | 245,523 | 14,846,776 | ||
| Aqua America | 391,913 | 10,511,107 | ||
| Atmos Energy | 223,257 | 12,055,878 | ||
| Black Hills | 97,130 | 4,787,538 | ||
| Cleco | 131,966 | 7,172,352 | ||
| Great Plains Energy | 341,898 | 8,950,890 | ||
| Hawaiian Electric Industries | 228,099 | 7,139,499 | ||
| IDACORP | 111,638 | 6,735,121 | ||
| MDU Resources Group | 431,131 | 9,609,910 | ||
| National Fuel Gas | 186,704 | 12,033,073 | ||
| OGE Energy | 441,617 | 14,432,044 | ||
| ONE Gas | 114,266 | 4,795,744 | ||
| PNM Resources | 174,043 | 4,834,915 | ||
| Questar | 389,180 | 9,122,379 | ||
| UGI | 382,660 | 13,320,395 | ||
| Vectren | 183,294 | 7,912,802 | ||
| Westar Energy | 292,763 | 11,022,527 | ||
| WGL Holdings | 108,873 | 5,989,104 | ||
| 165,272,054 | ||||
| Total Common Stocks | ||||
| (cost $2,298,250,445) | 3,560,887,155 | |||
| Principal | ||||
Short-Term Investments—.1% | Amount ($) | Value ($) | ||
| U.S. Treasury Bills | ||||
| 0.07%, 6/4/15 | 1,415,000 | d | 1,414,997 | |
| 0.10%, 9/17/15 | 2,675,000 | d | 2,674,818 | |
| Total Short-Term Investments | ||||
| (cost $4,088,864) | 4,089,815 | |||
| Other Investment—2.1% | Shares | Value ($) | ||
| Registered Investment Company; | ||||
| Dreyfus Institutional Preferred | ||||
| Plus Money Market Fund | ||||
| (cost $74,605,420) | 74,605,420 | e | 74,605,420 | |
The Fund 19
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Investment of Cash Collateral | ||||
| for Securities Loaned—2.4% | Shares | Value ($) | ||
| Registered Investment Company; | ||||
| Dreyfus Institutional Cash | ||||
| Advantage Fund | ||||
| (cost $89,029,616) | 89,029,616 | e | 89,029,616 | |
| Total Investments (cost $2,465,974,345) | 102.7 | % | 3,728,612,006 | |
| Liabilities, Less Cash and Receivables | (2.7 | %) | (98,459,394 | ) |
| Net Assets | 100.0 | % | 3,630,152,612 |
| a Non-income producing security. |
| b Security, or portion thereof, on loan.At April 30, 2015, the value of the fund’s securities on loan was $78,765,193 |
| and the value of the collateral held by the fund was $89,029,616. |
| c Investment in real estate investment trust. |
| d Held by or on behalf of a counterparty for open financial futures contracts. |
| e Investment in affiliated money market mutual fund. |
| Portfolio Summary (Unaudited)† | |||
| Value (%) | Value (%) | ||
| Capital Goods | 10.2 | Diversified Financials | 2.9 |
| Real Estate | 9.8 | Consumer Services | 2.8 |
| Software & Services | 8.7 | Semiconductors & Semiconductor | |
| Materials | 7.4 | Equipment | 2.6 |
| Health Care Equipment & Services | 6.5 | Transportation | 2.6 |
| Banks | 5.5 | Food, Beverage & Tobacco | 2.2 |
| Technology Hardware & Equipment | 5.3 | Pharmaceuticals, Biotech & | |
| Retailing | 5.2 | Life Sciences | 1.8 |
| Energy | 4.8 | Media | 1.4 |
| Insurance | 4.8 | Household & Personal Products | 1.4 |
| Short-Term/ | Automobiles & Components | .7 | |
| Money Market Investments | 4.6 | Food & Staples Retailing | .3 |
| Utilities | 4.6 | Telecommunication Services | .2 |
| Consumer Durables & Apparel | 3.5 | ||
| Commercial & Professional Services | 2.9 | 102.7 | |
| † Based on net assets. | |||
| See notes to financial statements. | |||
20
STATEMENT OF FINANCIAL FUTURES
April 30, 2015 (Unaudited)
| Market Value | Unrealized | ||||
| Covered by | (Depreciation) | ||||
| Contracts | Contracts ($) | Expiration | at 4/30/2015 | ($) | |
| Financial Futures Long | |||||
| Standard & Poor’s Midcap 400 E-mini | 527 | 78,865,550 | June 2015 | (1,381,072 | ) |
| See notes to financial statements. |
The Fund 21
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2015 (Unaudited)
| Cost | Value | |
| Assets ($): | ||
| Investments in securities—See Statement of Investments (including | ||
| securities on loan, valued at $78,765,193)—Note 1(b): | ||
| Unaffiliated issuers | 2,302,339,309 | 3,564,976,970 |
| Affiliated issuers | 163,635,036 | 163,635,036 |
| Cash | 2,785,303 | |
| Dividends and securities lending income receivable | 1,757,263 | |
| Receivable for shares of Common Stock subscribed | 1,406,968 | |
| Other receivables | 19,317 | |
| 3,734,580,857 | ||
| Liabilities ($): | ||
| Due to The Dreyfus Corporation and affiliates—Note 3(b) | 1,506,758 | |
| Liability for securities on loan—Note 1(b) | 89,029,616 | |
| Payable for shares of Common Stock redeemed | 13,075,724 | |
| Payable for futures variation margin—Note 4 | 423,309 | |
| Payable for investment securities purchased | 389,338 | |
| Accrued expenses | 3,500 | |
| 104,428,245 | ||
| Net Assets ($) | 3,630,152,612 | |
| Composition of Net Assets ($): | ||
| Paid-in capital | 2,166,835,028 | |
| Accumulated undistributed investment income—net | 10,353,717 | |
| Accumulated net realized gain (loss) on investments | 191,707,278 | |
| Accumulated net unrealized appreciation (depreciation) | ||
| on investments [including ($1,381,072) net unrealized | ||
| (depreciation) on financial futures] | 1,261,256,589 | |
| Net Assets ($) | 3,630,152,612 | |
| Shares Outstanding | ||
| (200 million shares of $.001 par value Common Stock authorized) | 93,278,481 | |
| Net Asset Value, offering and redemption price per share ($) | 38.92 | |
| See notes to financial statements. | ||
22
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2015 (Unaudited)
| Investment Income ($): | ||
| Income: | ||
| Cash dividends: | ||
| Unaffiliated issuers | 28,664,059 | |
| Affiliated issuers | 31,404 | |
| Income from securities lending—Note 1(b) | 942,872 | |
| Interest | 789 | |
| Total Income | 29,639,124 | |
| Expenses: | ||
| Management fee—Note 3(a) | 4,465,677 | |
| Shareholder servicing costs—Note 3(b) | 4,465,677 | |
| Directors’ fees —Note 3(a,c) | 131,866 | |
| Loan commitment fees—Note 2 | 15,452 | |
| Interest expense—Note 2 | 597 | |
| Total Expenses | 9,079,269 | |
| Less—Directors’ fees reimbursed by Dreyfus—Note 3(a) | (131,866 | ) |
| Net Expenses | 8,947,403 | |
| Investment Income—Net | 20,691,721 | |
| Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | ||
| Net realized gain (loss) on investments | 216,776,708 | |
| Net realized gain (loss) on financial futures | 6,268,412 | |
| Net Realized Gain (Loss) | 223,045,120 | |
| Net unrealized appreciation (depreciation) on investments | (21,034,651 | ) |
| Net unrealized appreciation (depreciation) on financial futures | (2,756,711 | ) |
| Net Unrealized Appreciation (Depreciation) | (23,791,362 | ) |
| Net Realized and Unrealized Gain (Loss) on Investments | 199,253,758 | |
| Net Increase in Net Assets Resulting from Operations | 219,945,479 | |
| See notes to financial statements. | ||
The Fund 23
STATEMENT OF CHANGES IN NET ASSETS
| Six Months Ended | ||||
| April 30, 2015 | Year Ended | |||
| (Unaudited) | October 31, 2014 | |||
| Operations ($): | ||||
| Investment income—net | 20,691,721 | 34,775,881 | ||
| Net realized gain (loss) on investments | 223,045,120 | 190,480,929 | ||
| Net unrealized appreciation | ||||
| (depreciation) on investments | (23,791,362 | ) | 147,343,603 | |
| Net Increase (Decrease) in Net Assets | ||||
| Resulting from Operations | 219,945,479 | 372,600,413 | ||
| Dividends to Shareholders from ($): | ||||
| Investment income—net | (34,999,103 | ) | (29,701,904 | ) |
| Net realized gain on investments | (194,304,335 | ) | (126,163,403 | ) |
| Total Dividends | (229,303,438 | ) | (155,865,307 | ) |
| Capital Stock Transactions ($): | ||||
| Net proceeds from shares sold | 504,122,498 | 802,100,848 | ||
| Dividends reinvested | 203,641,906 | 140,337,139 | ||
| Cost of shares redeemed | (640,671,894 | ) | (992,963,048 | ) |
| Increase (Decrease) in Net Assets from | ||||
| Capital Stock Transactions | 67,092,510 | (50,525,061 | ) | |
| Total Increase (Decrease) in Net Assets | 57,734,551 | 166,210,045 | ||
| Net Assets ($): | ||||
| Beginning of Period | 3,572,418,061 | 3,406,208,016 | ||
| End of Period | 3,630,152,612 | 3,572,418,061 | ||
| Undistributed investment income—net | 10,353,717 | 24,661,099 | ||
| Capital Share Transactions (Shares): | ||||
| Shares sold | 13,051,531 | 21,370,235 | ||
| Shares issued for dividends reinvested | 5,334,154 | 3,833,741 | ||
| Shares redeemed | (16,395,120 | ) | (26,445,797 | ) |
| Net Increase (Decrease) in Shares Outstanding | 1,990,565 | (1,241,821 | ) | |
| See notes to financial statements. | ||||
24
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 dis-tributions.These figures have been derived from the fund’s financial statements.
| Six Months Ended | |||||||||||||
| April 30, 2015 | Year Ended October 31, | ||||||||||||
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||
| Per Share Data ($): | |||||||||||||
| Net asset value, | |||||||||||||
| beginning of period | 39.13 | 36.81 | 29.10 | 27.46 | 25.98 | 20.66 | |||||||
| Investment Operations: | |||||||||||||
| Investment income—neta | .22 | .37 | .35 | .26 | .18 | .25 | |||||||
| Net realized and | |||||||||||||
| unrealized gain (loss) | |||||||||||||
| on investments | 2.20 | 3.64 | 8.80 | 2.72 | 1.91 | 5.31 | |||||||
| Total from | |||||||||||||
| Investment Operations | 2.42 | 4.01 | 9.15 | 2.98 | 2.09 | 5.56 | |||||||
| Distributions: | |||||||||||||
| Dividends from | |||||||||||||
| investment income—net | (.40 | ) | (.32 | ) | (.34 | ) | (.20 | ) | (.22 | ) | (.24 | ) | |
| Dividends from net realized | |||||||||||||
| gain on investments | (2.23 | ) | (1.37 | ) | (1.10 | ) | (1.14 | ) | (.39 | ) | — | ||
| Total Distributions | (2.63 | ) | (1.69 | ) | (1.44 | ) | (1.34 | ) | (.61 | ) | (.24 | ) | |
| Net asset value, | |||||||||||||
| end of period | 38.92 | 39.13 | 36.81 | 29.10 | 27.46 | 25.98 | |||||||
| Total Return (%) | 6.31 | b | 11.21 | 32.84 | 11.51 | 8.00 | 27.05 | ||||||
| Ratios/Supplemental | |||||||||||||
| Data (%): | |||||||||||||
| Ratio of total expenses | |||||||||||||
| to average net assets | .51 | c | .51 | .51 | .51 | .51 | .51 | ||||||
| Ratio of net expenses | |||||||||||||
| to average net assets | .50 | c | .50 | .50 | .50 | .50 | .50 | ||||||
| Ratio of net investment | |||||||||||||
| income to average | |||||||||||||
| net assets | 1.16 | c | .98 | 1.07 | .92 | .64 | 1.07 | ||||||
| Portfolio Turnover Rate | 12.04 | b | 16.22 | 10.41 | 12.76 | 19.40 | 14.15 | ||||||
| Net Assets, | |||||||||||||
| end of period | |||||||||||||
| ($ x 1,000) | 3,630,153 | 3,572,418 | 3,406,208 | 2,494,980 | 2,302,143 | 2,201,094 | |||||||
| a | Based on average shares outstanding. |
| b | Not annualized. |
| c | Annualized. |
See notes to financial statements.
The Fund 25
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
Dreyfus Midcap Index Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company. The fund’s investment objective is to seek to match the performance of the Standard & Poor’s ® MidCap 400 Index.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 Dreyfus, is the distributor of the fund’s shares, which are sold to the public without a sales charge.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 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 fund 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 liability 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).
26
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 price or, if there is no official closing price that day, at the last sales price. For open short positions, asked prices are 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 generally categorized within Level 1 of the fair value hierarchy.
The Fund 27
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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. 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 fund’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 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 generally categorized within Level 3 of the fair value hierarchy.
28
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.
The following is a summary of the inputs used as of April 30, 2015 in valuing the fund’s investments:
| Level 2—Other | Level 3— | |||||
| Level 1— | Significant | Significant | ||||
| Unadjusted | Observable | Unobservable | ||||
| Quoted Prices | Inputs | Inputs | Total | |||
| Assets ($) | ||||||
| Investments in Securities: | ||||||
| Equity Securities— | ||||||
| Domestic | ||||||
| Common | ||||||
| Stocks† | 3,537,113,015 | — | — | 3,537,113,015 | ||
| Equity Securities— | ||||||
| Foreign | ||||||
| Common Stocks† | 23,774,140 | — | — | 23,774,140 | ||
| Mutual Funds | 163,635,036 | — | — | 163,635,036 | ||
| U.S. Treasury | — | 4,089,815 | — | 4,089,815 | ||
| Liabilities ($) | ||||||
| Other Financial | ||||||
| Instruments: | ||||||
| Financial Futures†† | (1,381,072 | ) | — | — | (1,381,072 | ) |
| † | See Statement of Investments for additional detailed categorizations. |
| †† | Amount shown represents unrealized (depreciation) at period end. |
At April 30, 2015, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.
(b) 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.
The Fund 29
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus or U.S. Government and Agency securities.The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, The Bank of New York Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. During the period ended April 30, 2015, The Bank of New York Mellon earned $259,446 from lending portfolio securities, pursuant to the securities lending agreement.
(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” under the Act. Investments in affiliated investment companies during the period ended April 30, 2015 were as follows:
| Affiliated | ||||||
| Investment | Value | Value | Net | |||
| Company | 10/31/2014 ($) | Purchases ($) | Sales ($) | 4/30/2015($) | Assets (%) | |
| Dreyfus | ||||||
| Institutional | ||||||
| Preferred | ||||||
| Plus Money | ||||||
| Market | ||||||
| Fund | 27,543,002 | 471,091,568 | 424,029,150 | 74,605,420 | 2.1 | |
| Dreyfus | ||||||
| Institutional | ||||||
| Cash | ||||||
| Advantage | ||||||
| Fund | 145,869,660 | 452,656,720 | 509,496,764 | 89,029,616 | 2.4 | |
| Total | 173,412,662 | 923,748,288 | 933,525,914 | 163,635,036 | 4.5 |
30
(d) 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.
(e) 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 April 30, 2015, 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 April 30, 2015, the fund did not incur any interest or penalties.
Each tax year in the three-year period ended October 31, 2014 remains subject to examination by the Internal Revenue Service and state taxing authorities.
The tax character of distributions paid to shareholders during the fiscal period ended October 31, 2014 was as follows: ordinary income $43,050,248 and long-term capital gains $112,815,059.The tax character of current year distributions will be determined at the end of the current fiscal year.
NOTE 2—Bank Lines of Credit:
The fund participates with other Dreyfus-managed funds in a $430 million unsecured credit facility led by Citibank, N.A. and a $300 million
The Fund 31
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. 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 April 30, 2015 was approximately $110,500 with a related weighted average annualized interest rate of 1.09%.
NOTE 3—Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement (the “Agreement”) with Dreyfus, the management fee is computed at the annual rate of .25% of the value of the fund’s average daily net assets and is payable monthly. Under the terms of the Agreement, Dreyfus has agreed to pay all of the fund’s 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. Dreyfus 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 April 30, 2015, fees reimbursed by Dreyfus amounted to $131,866.
(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
32
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 April 30, 2015, the fund was charged $4,465,677 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 $762,832 and Shareholder Services Plan fees $762,832, which are offset against an expense reimbursement currently in effect in the amount of $18,906.
(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 and financial futures, during the period ended April 30, 2015, amounted to $425,044,556 and $609,499,124, respectively.
Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund during the period ended April 30, 2015 is discussed below.
Financial Futures: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including equity price risk, as a result of changes in value of underlying financial instruments. The fund invests in financial futures in order to manage its exposure to or protect against changes in the market.A financial futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a counterparty, which consist of cash or cash equivalents.The amount of these deposits is deter-
The Fund 33
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
mined by the exchange or Board of Trade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. When the contracts are closed, the fund recognizes a realized gain or loss which is reflected in the Statement of Operations. There is minimal counter-party credit risk to the fund with financial futures since they are exchange traded, and the exchange guarantees the financial futures against default. Financial futures open at April 30, 2015 are set forth in the Statement of Financial Futures.
The following summarizes the average market value of derivatives outstanding during the period ended April 30, 2015:
| Average Market Value ($) | |
| Equity financial futures | 59,579,056 |
At April 30, 2015, accumulated net unrealized appreciation on investments was $1,262,637,661, consisting of 1,338,417,549 gross unrealized appreciation and $75,779,888 gross unrealized depreciation.
At April 30, 2015, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
NOTE 5—Pending Legal Matters
The fund and dozens of other entities and individuals have been named as defendants in an adversary proceeding pending in the United States Bankruptcy Court for the Southern District of New York (Weisfelner, as Trustee of the LB Creditor Trust v. Fund 1, et al., Adv. Pro. No. 10-04609). The complaint alleges that payments made to shareholders of Lyondell Chemical Company (“Lyondell”) in connection with the acquisition of Lyondell by Basell AF S.C.A. in a cash-out merger in or around December, 2007 constituted constructive or intentional “fraudulent transfers” under applicable state law and seeks to recover from the former Lyondell shareholders the payments received for the shares.
34
On January 14, 2014, the Court issued a decision and order on motions to dismiss granting in part, and denying in part, the motions. On April 9, 2014, plaintiff filed a Third Amended Complaint continuing to assert constructive or intentional fraudulent transfer claims under applicable state law. On August 1, 2014, defendants filed a motion to dismiss the Third Amended Complaint, and oral arguments on the motion to dismiss was held on January 14, 2015. A decision on the motion to dismiss is still pending.
At this stage in the proceedings, it is not possible to assess with any reasonable certainty the probable outcome of the pending litigation. Consequently, at this time, management is unable to estimate the possible loss that may result.
The Fund 35
INFORMATION ABOUT THE RENEWAL OF THE
FUND’S MANAGEMENT AGREEMENT (Unaudited)
At a meeting of the fund’s Board of Directors held on March 11-12, 2015, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”).The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from Dreyfus representatives. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below.The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.
Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board considered information provided to them at the meeting and in previous presentations from Dreyfus representatives regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex (such as retail direct or intermediary, in which intermediaries typically are paid by the fund and/or Dreyfus) and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each intermediary or distribution channel, as applicable to the fund.
The Board also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board also considered Dreyfus’ extensive administrative, accounting and compliance infra-structures.The Board also considered portfolio management’s brokerage policies and practices (including policies and practices regarding soft dollars) and the standards applied in seeking best execution.
36
Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended December 31, 2014, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of the date of its analysis. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.
Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds. The Board discussed the results of the comparisons and noted that the fund’s total return performance was generally at or above the Performance Group and Performance Universe medians. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index.
The Board also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons. Taking into account the fund’s “unitary” fee structure, the Board noted that the fund’s contractual management fee was above the Expense Group median, the fund’s actual management fee was above the Expense Group and the Expense Universe medians and the fund’s total expenses were below the Expense Group median and above the Expense Universe median.
The Fund 37
INFORMATION ABOUT THE RENEWAL OF THE FUND’S
MANAGEMENT AGREEMENT (Unaudited) (continued)
Dreyfus representatives reviewed with the Board the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager(s) for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients. They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors noting the fund’s “unitary” fee structure. The Board considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.
Analysis of Profitability and Economies of Scale. Dreyfus representatives reviewed the expenses allocated and profit received by Dreyfus and its affiliates and the resulting profitability percentage for managing the fund and the aggregate profitability percentage to Dreyfus and its affiliates for managing the funds in the Dreyfus fund complex, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board also had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex. The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.
The Board considered, on the advice of its counsel, the profitability analysis (1) as part of its evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund
38
grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that a discussion of economies of scale is predicated on a fund having achieved a substantial size with increasing assets and that, if a fund’s assets had been stable or decreasing, the possibility that Dreyfus may have realized any economies of scale would be less. Dreyfus representatives also noted that, as a result of shared and allocated costs among funds in the Dreyfus fund complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board also considered potential benefits to Dreyfus from acting as investment adviser and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.
The Board concluded that the nature, extent and quality of the ser- vices provided by Dreyfus are adequate and appropriate.
The Board was satisfied with the fund’s performance.
The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.
The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the manage- ment of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.
The Fund 39
INFORMATION ABOUT THE RENEWAL OF THE FUND’S
MANAGEMENT AGREEMENT (Unaudited) (continued)
In evaluating the Agreement, the Board considered these conclusions and determinations and also relied on its previous knowledge, gained through meetings and other interactions with Dreyfus and its affiliates, of the fund and the services provided to the fund by Dreyfus. The Board also relied on information received on a routine and regular basis throughout the year relating to the operations of the fund and the investment management and other services provided under the Agreement, including information on the investment performance of the fund in comparison to similar mutual funds and benchmark performance indices; general market outlook as applicable to the fund; and compliance reports. In addition, the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board’s conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years.The Board determined to renew the Agreement.
40
For More Information
Ticker Symbol: PESPX
Telephone 1-800-DREYFUS
Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-DREYFUS.
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.
Not applicable. [CLOSED END FUNDS ONLY]
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures applicable to Item 10.
Item 11. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dreyfus Midcap Index Fund, Inc.
By: /s/ Bradley J. Skapyak
Bradley J. Skapyak,
President
Date: June 17, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Bradley J. Skapyak
Bradley J. Skapyak,
President
Date: June 17, 2015
By: /s/ James Windels
James Windels,
Treasurer
Date: June 17, 2015
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)