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BNY Mellon Stock Index Fund

Filed: 12 Feb 20, 3:11pm

 

 

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

811-05719

 

 

 

BNY Mellon Stock Index Fund, Inc.

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o BNY Mellon Investment Adviser, Inc.

240 Greenwich Street

New York, New York  10286

 

 

(Address of principal executive offices)        (Zip code)

 

 

 

 

 

Bennett A. MacDougall, Esq.

240 Greenwich Street

New York, New York  10286

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code: 

(212) 922-6400

 

 

Date of fiscal year end:

 

12/31

 

Date of reporting period:

12/31/2019

 

 

 

 

       

 

 


 

FORM N-CSR

Item 1.             Reports to Stockholders.

                       

 


 

BNY Mellon Stock Index Fund, Inc.

 

ANNUAL REPORT

December 31, 2019

 

 

 

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

 

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

 

Contents

T H E F U N D

  

                                   A Letter from the President of

 

BNY Mellon Investment Adviser, Inc.

2

Discussion of Fund Performance

3

Fund Performance

6

Understanding Your Fund’s Expenses

7

                                   Comparing Your Fund’s Expenses

 

With Those of Other Funds

7

Statement of Investments

8

                                    Statement of Investments

 

in Affiliated Issuers

22

Statement of Futures

23

Statement of Assets and Liabilities

24

Statement of Operations

25

Statement of Changes in Net Assets

26

Financial Highlights

27

Notes to Financial Statements

29

                                   Report of Independent Registered

 

Public Accounting Firm

40

Important Tax Information

41

Board Members Information

42

Officers of the Fund

44

F O R  M O R E  I N F O R M AT I O N

 

Back Cover

 

    
 


BNY Mellon Stock Index Fund, Inc.

 

The Fund

A LETTER FROM THE PRESIDENT OF BNY MELLON INVESTMENT ADVISER, INC.

Dear Shareholder:

We are pleased to present this annual report for BNY Mellon Stock Index Fund, Inc. (formerly, Dreyfus Stock Index Fund, Inc.), covering the 12-month period from January 1, 2019 through December 31, 2019. 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.

In January 2019, a pivot in stance from the U.S. Federal Reserve (the “Fed”) helped stimulate a rebound across equity markets that continued into the second quarter of the year. However, escalating trade tensions disrupted equity markets in May. The dip was short-lived, as markets rose once again in June and July of 2019, when a trade deal appeared more likely and the pace of U.S. economic growth remained steady. Nevertheless, concerns continued to emerge over slowing global growth, resulting in bouts of market volatility in August 2019. Stocks rebounded in September and continued an upward path through most of October 2019, bolstered by central bank policy and consistent consumer spending. The rally generally continued through the end of the period, supported in part by an announcement from President Trump that the first phase of a trade deal with China was in process. U.S. equity markets reached new highs during the final months of the period.

In fixed-income markets, the year began with a recovery from the prior months’ volatility. After the Fed’s supportive statements in January 2019, other developed-market central banks followed suit and reiterated their abilities to buttress flagging growth rates by continuing accommodative policies. The Fed cut rates in July, September and October 2019, for a total 75 basis point reduction in the federal funds rate during the 12 months. Rates across much of the Treasury curve saw a slight increase during the month of November, and the long end of the curve rose in December. The yield curve steepened during the latter portion of the period. However, demand for fixed-income instruments during the year was strong, which helped to support positive bond market returns.

We believe that over the near term, the outlook for the U.S. remains positive, but we will monitor relevant data for any signs of a change. As always, we encourage you to discuss the risks and opportunities in today’s investment environment with your financial advisor.

Thank you for your continued confidence and support.

Sincerely,

Renee LaRoche-Morris
President
BNY Mellon Investment Adviser, Inc.
January 15, 2020

2

 

DISCUSSION OF FUND PERFORMANCE(Unaudited)

For the period from January 1, 2019 through December 31, 2019, as provided by Thomas J. Durante, CFA, Karen Q. Wong, CFA, and Richard A. Brown, CFA, Portfolio Managers

Market and Fund Performance Overview

For the 12-month period ended December 31, 2019, BNY Mellon Stock Index Fund, Inc.’s (formerly, Dreyfus Stock Index Fund, Inc.) Initial Shares produced a total return of 31.18%, and its Service Shares produced a total return of 30.84%.1In comparison, the S&P 500® Index (the “Index”), the fund’s benchmark, produced a total return of 31.46% for the same period.2,3 

U.S. equities gained over the reporting period, in an environment of moderate economic growth and supportive central bank policy. The difference in returns between the fund and the Index was primarily the result of transaction costs and operating expenses that are not reflected in the Index’s results.

The Fund’s Investment Approach

The fund seeks to match the total return of the Index. To pursue its goal, the fund generally is fully invested in stocks included in the Index. The fund generally invests in all 500 stocks in the Index in proportion to their weighting in the Index. The fund may also use stock index futures contracts, whose performance is tied to the Index, or invest in exchange-traded funds, typically when the fund’s available cash balances cannot otherwise be efficiently or effectively invested directly.

Markets Pivot on Central Bank Statements and Trade Policy

January 2019 marked a turnaround in the markets. Talk of a potential trade deal between the U.S. and China helped fuel investor optimism, as equity prices recovered from fourth quarter 2018 volatility. At its first meeting of the year, the Federal Reserve (the “Fed”) emphasized its focus on data as a primary driver for rate-hike decisions, and its ability to suspend additional rate increases when the data is not supportive. These sentiments reassured investors of central bankers’ commitments to support flagging growth. In addition, the European Central Bank announced it would provide additional stimulus to support the eurozone economy. China also announced plans to stoke its slowing economic growth rate. The rebound continued throughout the month of January 2019, and equity markets maintained an upward trajectory through April 2019. However, renewed trade tensions between the U.S. and China in May caused stocks to pull back once again. The dip was short-lived, as markets rose once again in June.

However, concerns over slowing economic growth continued, and inflation floundered. The Fed decided to provide additional stimulus by cutting the federal funds rate. It did so three times during the period, each time by 25 basis points. These cuts occurred in July, September and October. Supported by rate cuts, moderate economic growth and optimism regarding a preliminary trade agreement with China, equity markets went on to post solid gains during the last several months of the year.

According to the S&P family of indices, large-cap stocks generally outperformed their mid- and small-cap counterparts during the period.

3

 

DISCUSSION OF FUND PERFORMANCE(Unaudited) (continued)

Technology Companies Led U.S. Large-Cap Markets

During the reporting period, the S&P 500 Index posted strong results. All sectors within the Index posted positive returns. Information technology was the best performing sector in the Index. Semiconductor and semiconductor equipment companies were particularly strong performers. Technologies such as cloud computing and autonomous vehicles supported demand for these chips. In addition, the rollout of 5G technology also provided an additional market for many products manufactured by chip makers and other technology companies. Elsewhere in the sector, payments processing companies, such as Mastercard and Visa, were among the top performers. Apple drove sector returns. The financials sector was a standout performer. Banks benefited from the low rate environment, high refinancing activity and low loan default rates. The Fed’s cuts to the federal funds rate helped banks by reducing the costs associated with overnight lending, as did high deposit rates from consumers, which reduced banks’ need to borrow. Many U.S. banks also passed federal stress tests, contributing to rising market values of banks. The communication services sector benefited from stock performance in the interactive media industry. Companies such as Facebook, Alphabet andTripAdvisor helped lead the market. These companies have access to wide audiences and are capable of advertising to large quantities of people. In addition, telecommunication companies, particularly those investing in satellite technology and streaming services, enjoyed strong results.

Some sectors lagged the broader market during the period. In the materials sector, construction materials and metals and mining companies experienced constrained results. Concerns about growth rates in China hurt the demand for metals stocks. A comparatively strong dollar also helped to reduce demand for these U.S. products overseas. Health care companies also tended to lag the broader market. Ongoing discussions over drug prices and health care provided a headwind for the stock prices of many health care providers and pharmaceuticals companies during parts of the year. In addition, the strong dollar hurt exports of drugs to many emerging- markets consumers. Lastly, energy companies, particularly exploration and production companies, lagged the broader market, due to soft oil prices during the period, and depressed company returns. Natural gas companies also saw low production rates during the period.

4

 

Replicating the Performance of the Index

Although we do not actively manage the fund’s investments in response to macroeconomic trends, it is worth noting that the U.S. economy remains supported by a strong labor market and sound corporate balance sheets. However, the market’s currently constructive conditions could be undermined by unexpected political and economic developments. As always, we have continued to monitor the factors considered by the fund’s investments.

January 15, 2020

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. The fund’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts, which will reduce returns.

2 Source: Lipper Inc. — The S&P 500®Index is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. Investors cannot invest directly in any index.

3 “Standard & Poor’sÒ,” “S&PÒ,” “Standard & Poor’s 500Ô,”and “S&P 500Ò” are trademarks of Standard & Poor’s Financial Services LLC (“Standard & Poor’s”) and have been licensed for use by the fund. The fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s does not make any representation regarding the advisability of investing in the fund.

Please note: the position in any security highlighted with italicized typeface was sold during the reporting period.

Equities 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 may, but is not required to, use derivative instruments. A small investment in derivatives could have a potentially large impact on the fund's performance. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets.

The fund is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies. Individuals may not purchase shares of the fund directly. A variable annuity is an insurance contract issued by an insurance company that enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term goals. The investment objective and policies of BNY Mellon Stock Index Fund, Inc. made available through insurance products may be similar to those of other funds managed by BNY Mellon Investment Adviser, Inc. However, the investment results of the fund may be higher or lower than, and may not be comparable to, those of any other BNY Mellon Investment Adviser, Inc. fund.

5

 

FUND PERFORMANCE(Unaudited)

Comparison of change in value of a $10,000 investment inInitial shares and Service shares of BNY Mellon Stock Index Fund, Inc. with a hypothetical investment of $10,000 in the S&P 500®Index (the “Index”)

 Source: Lipper Inc.

Past performance is not predictive of future performance. The fund’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a hypothetical investment of $10,000 made in Initial and Service shares of BNY Mellon Stock Index Fund, Inc. on 12/31/09 to a hypothetical investment of $10,000 made in the Index on that date.

The fund’s performance shown in the line graph above takes into account all applicable fees and expenses. The Index is widely regarded as the best single gauge of large-cap U.S. equities. The Index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. 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.

    

Average Annual Total Returns as of 12/31/19

 

1 Year

5 Years

10 Years

Initial shares

31.18%

11.42%

13.29%

Service shares

30.84%

11.15%

13.01%

S&P 500®Index

31.46%

11.69%

13.55%

The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to www.bnymellonim.com/us for the fund’s most recent month-end returns.

The fund’s Initial shares are not subject to a Rule 12b-1 fee. The fund’s Service shares are subject to a 0.25% annual Rule 12b-1 fee. All dividends and capital gain distributions are reinvested.

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.

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), redemption fees and expenses associated with variable annuity or insurance contracts, 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 BNY Mellon Stock Index Fund, Inc. from July 1, 2019 to December 31, 2019. 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

 

Assume actual returns for the six months ended December 31, 2019

 

 

 

 

 

 

 

 

Initial Shares

Service Shares

 

Expense paid per $1,000

$1.43

$2.76

 

Ending value (after expenses)

$1,107.80

$1,106.50

 

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 December 31, 2019

 

 

 

 

 

 

 

 

Initial Shares

Service Shares

 

Expense paid per $1,000

$1.38

$2.65

 

Ending value (after expenses)

$1,023.84

$1,022.58

 

Expenses are equal to the fund’s annualized expense ratio of .27% for Initial Shares and .52% for Service Shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

7

 

STATEMENT OF INVESTMENTS

December 31, 2019

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5%

     

Automobiles & Components - .4%

     

Aptiv

   

25,138

 

2,387,356

 

BorgWarner

   

19,611

 

850,725

 

Ford Motor

   

380,375

 

3,537,487

 

General Motors

   

122,153

 

4,470,800

 

Harley-Davidson

   

15,341

a

570,532

 
    

11,816,900

 

Banks - 5.6%

     

Bank of America

   

789,018

 

27,789,214

 

Citigroup

   

213,165

 

17,029,752

 

Citizens Financial Group

   

42,866

 

1,740,788

 

Comerica

   

14,329

 

1,028,106

 

Fifth Third Bancorp

   

71,140

 

2,186,844

 

First Republic Bank

   

16,314

a

1,916,079

 

Huntington Bancshares

   

105,000

 

1,583,400

 

JPMorgan Chase & Co.

   

305,405

 

42,573,457

 

KeyCorp

   

99,628

 

2,016,471

 

M&T Bank

   

12,962

 

2,200,299

 

People's United Financial

   

42,625

 

720,363

 

Regions Financial

   

94,852

 

1,627,660

 

SVB Financial Group

   

5,106

b

1,281,810

 

The PNC Financial Services Group

   

42,713

 

6,818,276

 

Truist Financial

   

130,338

 

7,340,636

 

U.S. Bancorp

   

139,349

 

8,262,002

 

Wells Fargo & Co.

   

375,467

 

20,200,125

 

Zions Bancorp

   

16,893

a

877,085

 
    

147,192,367

 

Capital Goods - 6.3%

     

3M

   

55,850

 

9,853,057

 

A.O. Smith

   

14,483

 

689,970

 

Allegion

   

8,759

 

1,090,846

 

AMETEK

   

21,772

 

2,171,539

 

Arconic

   

37,822

 

1,163,783

 

Caterpillar

   

53,965

 

7,969,551

 

Cummins

   

15,176

 

2,715,897

 

Deere & Co.

   

30,623

 

5,305,741

 

Dover

   

14,604

 

1,683,257

 

Eaton

   

40,459

 

3,832,276

 

Emerson Electric

   

59,837

 

4,563,170

 

Fastenal

   

55,380

 

2,046,291

 

Flowserve

   

13,523

 

673,040

 

Fortive

   

28,424

 

2,171,309

 

8

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Capital Goods - 6.3% (continued)

     

Fortune Brands Home & Security

   

13,088

 

855,170

 

General Dynamics

   

23,020

 

4,059,577

 

General Electric

   

846,751

 

9,449,741

 

Honeywell International

   

69,577

 

12,315,129

 

Huntington Ingalls Industries

   

4,050

 

1,016,064

 

IDEX

   

7,267

 

1,249,924

 

Illinois Tool Works

   

28,584

 

5,134,544

 

Ingersoll-Rand

   

23,416

 

3,112,455

 

Jacobs Engineering Group

   

12,902

 

1,158,987

 

Johnson Controls International

   

75,872

 

3,088,749

 

L3Harris Technologies

   

21,333

 

4,221,161

 

Lockheed Martin

   

24,048

 

9,363,810

 

Masco

   

27,338

 

1,311,951

 

Northrop Grumman

   

15,366

 

5,285,443

 

PACCAR

   

34,087

 

2,696,282

 

Parker-Hannifin

   

12,713

 

2,616,590

 

Pentair

   

15,827

 

725,984

 

Quanta Services

   

13,584

 

553,005

 

Raytheon

   

27,030

 

5,939,572

 

Rockwell Automation

   

11,312

 

2,292,603

 

Roper Technologies

   

9,956

 

3,526,714

 

Snap-on

   

5,356

a

907,306

 

Stanley Black & Decker

   

14,661

 

2,429,914

 

Textron

   

23,448

 

1,045,781

 

The Boeing Company

   

51,935

 

16,918,346

 

TransDigm Group

   

4,720

a

2,643,200

 

United Rentals

   

7,291

b

1,215,920

 

United Technologies

   

78,391

 

11,739,836

 

W.W. Grainger

   

4,475

 

1,514,877

 

Westinghouse Air Brake Technologies

   

17,409

 

1,354,420

 

Xylem

   

16,898

 

1,331,393

 
    

167,004,175

 

Commercial & Professional Services - .7%

     

Cintas

   

8,334

 

2,242,513

 

Copart

   

19,568

b

1,779,514

 

Equifax

   

11,489

 

1,609,839

 

IHS Markit

   

38,396

b

2,893,139

 

Nielsen Holdings

   

32,535

 

660,461

 

Republic Services

   

20,661

 

1,851,845

 

Robert Half International

   

12,434

a

785,207

 

Rollins

   

13,864

a

459,730

 

Verisk Analytics

   

15,984

 

2,387,051

 

9

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Commercial & Professional Services - .7% (continued)

     

Waste Management

   

38,112

 

4,343,244

 
    

19,012,543

 

Consumer Durables & Apparel - 1.2%

     

Capri Holdings

   

13,970

a,b

532,956

 

D.R. Horton

   

31,838

 

1,679,455

 

Garmin

   

13,756

 

1,342,035

 

Hanesbrands

   

34,088

a

506,207

 

Hasbro

   

12,215

 

1,290,026

 

Leggett & Platt

   

13,562

a

689,356

 

Lennar, Cl. A

   

28,351

 

1,581,702

 

Mohawk Industries

   

5,952

b

811,734

 

Newell Brands

   

40,827

a

784,695

 

NIKE, Cl. B

   

120,911

 

12,249,493

 

NVR

   

334

b

1,272,009

 

PulteGroup

   

24,899

 

966,081

 

PVH

   

7,721

 

811,863

 

Ralph Lauren

   

5,045

 

591,375

 

Tapestry

   

26,775

 

722,122

 

Under Armour, Cl. A

   

16,914

a,b

365,342

 

Under Armour, Cl. C

   

16,990

a,b

325,868

 

VF

   

31,457

 

3,135,005

 

Whirlpool

   

6,224

a

918,227

 
    

30,575,551

 

Consumer Services - 1.9%

     

Carnival

   

38,151

 

1,939,215

 

Chipotle Mexican Grill

   

2,437

b

2,040,037

 

Darden Restaurants

   

12,205

 

1,330,467

 

H&R Block

   

20,599

a

483,665

 

Hilton Worldwide Holdings

   

27,704

 

3,072,651

 

Las Vegas Sands

   

32,628

 

2,252,637

 

Marriott International, Cl. A

   

26,407

 

3,998,812

 

McDonald's

   

73,556

 

14,535,401

 

MGM Resorts International

   

49,579

 

1,649,493

 

Norwegian Cruise Line Holdings

   

20,819

b

1,216,038

 

Royal Caribbean Cruises

   

16,660

 

2,224,277

 

Starbucks

   

115,141

 

10,123,197

 

Wynn Resorts

   

9,461

 

1,313,849

 

Yum! Brands

   

29,195

 

2,940,812

 
    

49,120,551

 

Diversified Financials - 5.0%

     

American Express

   

65,823

 

8,194,305

 

Ameriprise Financial

   

12,495

 

2,081,417

 

Berkshire Hathaway, Cl. B

   

190,077

b

43,052,440

 

10

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Diversified Financials - 5.0% (continued)

     

BlackRock

   

11,409

 

5,735,304

 

Capital One Financial

   

45,942

 

4,727,891

 

Cboe Global Markets

   

10,539

 

1,264,680

 

CME Group

   

34,757

 

6,976,425

 

Discover Financial Services

   

30,765

 

2,609,487

 

E*TRADE Financial

   

22,771

 

1,033,120

 

Franklin Resources

   

28,607

a

743,210

 

Intercontinental Exchange

   

54,306

 

5,026,020

 

Invesco

   

37,067

 

666,465

 

MarketAxess Holdings

   

3,617

 

1,371,241

 

Moody's

   

15,805

 

3,752,265

 

Morgan Stanley

   

120,176

 

6,143,397

 

MSCI

   

8,216

 

2,121,207

 

Nasdaq

   

11,253

 

1,205,196

 

Northern Trust

   

20,899

 

2,220,310

 

Raymond James Financial

   

12,526

 

1,120,576

 

S&P Global

   

23,592

 

6,441,796

 

State Street

   

35,663

 

2,820,943

 

Synchrony Financial

   

59,387

 

2,138,526

 

T. Rowe Price Group

   

22,953

 

2,796,594

 

The Bank of New York Mellon

   

81,916

 

4,122,832

 

The Charles Schwab

   

111,473

 

5,301,656

 

The Goldman Sachs Group

   

31,082

 

7,146,684

 
    

130,813,987

 

Energy - 4.3%

     

Apache

   

36,754

a

940,535

 

Baker Hughes

   

62,685

 

1,606,617

 

Cabot Oil & Gas

   

41,368

 

720,217

 

Chevron

   

183,666

 

22,133,590

 

Cimarex Energy

   

8,743

 

458,920

 

Concho Resources

   

19,447

 

1,702,974

 

ConocoPhillips

   

107,031

 

6,960,226

 

Devon Energy

   

38,703

 

1,005,117

 

Diamondback Energy

   

15,679

 

1,455,952

 

EOG Resources

   

56,051

 

4,694,832

 

Exxon Mobil

   

411,102

 

28,686,698

 

Halliburton

   

83,480

 

2,042,756

 

Helmerich & Payne

   

10,009

 

454,709

 

Hess

   

24,946

 

1,666,642

 

HollyFrontier

   

15,257

 

773,682

 

Kinder Morgan

   

187,577

 

3,971,005

 

Marathon Oil

   

83,404

 

1,132,626

 

Marathon Petroleum

   

63,422

 

3,821,175

 

11

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Energy - 4.3% (continued)

     

National Oilwell Varco

   

36,875

 

923,719

 

Noble Energy

   

46,928

a

1,165,692

 

Occidental Petroleum

   

86,974

 

3,584,199

 

ONEOK

   

39,719

 

3,005,537

 

Phillips 66

   

43,160

 

4,808,456

 

Pioneer Natural Resources

   

16,413

 

2,484,436

 

Schlumberger

   

133,114

 

5,351,183

 

TechnipFMC

   

42,561

 

912,508

 

The Williams Companies

   

117,434

 

2,785,534

 

Valero Energy

   

40,148

 

3,759,860

 
    

113,009,397

 

Food & Staples Retailing - 1.5%

     

Costco Wholesale

   

42,904

 

12,610,344

 

Sysco

   

49,376

 

4,223,623

 

The Kroger Company

   

77,595

 

2,249,479

 

Walgreens Boots Alliance

   

73,696

 

4,345,116

 

Walmart

   

137,442

 

16,333,607

 
    

39,762,169

 

Food, Beverage & Tobacco - 3.7%

     

Altria Group

   

181,339

 

9,050,629

 

Archer-Daniels-Midland

   

54,408

 

2,521,811

 

Brown-Forman, Cl. B

   

17,426

a

1,177,998

 

Campbell Soup

   

16,559

a

818,346

 

Conagra Brands

   

46,939

 

1,607,191

 

Constellation Brands, Cl. A

   

15,936

 

3,023,856

 

General Mills

   

58,607

 

3,138,991

 

Hormel Foods

   

26,601

a

1,199,971

 

Kellogg

   

24,614

a

1,702,304

 

Lamb Weston Holdings

   

13,916

 

1,197,193

 

McCormick & Co.

   

11,656

a

1,978,373

 

Molson Coors Beverage, Cl. B

   

17,922

 

965,996

 

Mondelez International, Cl. A

   

139,795

 

7,699,909

 

Monster Beverage

   

37,648

b

2,392,530

 

PepsiCo

   

135,094

 

18,463,297

 

Philip Morris International

   

151,082

 

12,855,567

 

The Coca-Cola Company

   

374,575

 

20,732,726

 

The Hershey Company

   

14,348

 

2,108,869

 

The J.M. Smucker Company

   

11,004

a

1,145,847

 

The Kraft Heinz Company

   

58,974

 

1,894,835

 

Tyson Foods, Cl. A

   

28,200

 

2,567,328

 
    

98,243,567

 

Health Care Equipment & Services - 6.4%

     

Abbott Laboratories

   

171,061

 

14,858,358

 

12

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Health Care Equipment & Services - 6.4% (continued)

     

ABIOMED

   

4,354

b

742,749

 

Align Technology

   

6,953

b

1,940,165

 

AmerisourceBergen

   

15,169

a

1,289,668

 

Anthem

   

24,791

 

7,487,626

 

Baxter International

   

49,133

 

4,108,501

 

Becton Dickinson and Co.

   

26,259

 

7,141,660

 

Boston Scientific

   

135,320

b

6,119,170

 

Cardinal Health

   

28,800

a

1,456,704

 

Centene

   

39,712

a,b

2,496,693

 

Cerner

   

30,823

 

2,262,100

 

Cigna

   

36,409

 

7,445,276

 

CVS Health

   

126,093

 

9,367,449

 

Danaher

   

61,774

a

9,481,074

 

DaVita

   

9,676

a,b

725,990

 

Dentsply Sirona

   

22,663

 

1,282,499

 

Edwards Lifesciences

   

20,046

b

4,676,531

 

HCA Healthcare

   

25,654

 

3,791,918

 

Henry Schein

   

14,504

a,b

967,707

 

Hologic

   

26,828

b

1,400,690

 

Humana

   

12,922

 

4,736,171

 

IDEXX Laboratories

   

8,425

b

2,200,020

 

Intuitive Surgical

   

11,209

b

6,626,200

 

Laboratory Corporation of America Holdings

   

9,280

b

1,569,898

 

McKesson

   

17,967

 

2,485,195

 

Medtronic

   

129,747

 

14,719,797

 

Quest Diagnostics

   

12,828

 

1,369,902

 

ResMed

   

13,894

 

2,153,153

 

STERIS

   

7,749

 

1,181,103

 

Stryker

   

30,974

 

6,502,682

 

Teleflex

   

4,405

 

1,658,218

 

The Cooper Companies

   

4,705

 

1,511,669

 

UnitedHealth Group

   

92,043

 

27,058,801

 

Universal Health Services, Cl. B

   

8,067

 

1,157,292

 

Varian Medical Systems

   

9,102

b

1,292,575

 

WellCare Health Plans

   

4,840

b

1,598,216

 

Zimmer Biomet Holdings

   

19,850

 

2,971,148

 
    

169,834,568

 

Household & Personal Products - 1.9%

     

Church & Dwight

   

23,552

 

1,656,648

 

Colgate-Palmolive

   

83,378

 

5,739,742

 

Coty, Cl. A

   

31,079

a

349,639

 

Kimberly-Clark

   

33,032

 

4,543,552

 

13

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Household & Personal Products - 1.9% (continued)

     

The Clorox Company

   

12,395

 

1,903,128

 

The Estee Lauder Companies, Cl. A

   

21,586

 

4,458,372

 

The Procter & Gamble Company

   

241,904

 

30,213,810

 
    

48,864,891

 

Insurance - 2.3%

     

Aflac

   

71,285

 

3,770,976

 

American International Group

   

84,529

 

4,338,874

 

Aon

   

23,076

 

4,806,500

 

Arthur J. Gallagher & Co.

   

17,897

 

1,704,331

 

Assurant

   

5,877

 

770,357

 

Chubb

   

44,149

 

6,872,233

 

Cincinnati Financial

   

14,383

 

1,512,372

 

Everest Re Group

   

4,026

 

1,114,558

 

Globe Life

   

9,670

 

1,017,768

 

Lincoln National

   

19,958

 

1,177,722

 

Loews

   

25,862

 

1,357,496

 

Marsh & McLennan

   

49,631

 

5,529,390

 

MetLife

   

76,495

 

3,898,950

 

Principal Financial Group

   

25,673

 

1,412,015

 

Prudential Financial

   

38,820

 

3,638,987

 

The Allstate

   

31,790

 

3,574,785

 

The Hartford Financial Services Group

   

35,012

 

2,127,679

 

The Progressive

   

56,641

 

4,100,242

 

The Travelers Companies

   

25,447

 

3,484,967

 

Unum Group

   

21,629

 

630,702

 

Willis Towers Watson

   

12,545

 

2,533,337

 

WR Berkley

   

13,911

a

961,250

 
    

60,335,491

 

Materials - 2.6%

     

Air Products & Chemicals

   

21,268

 

4,997,767

 

Albemarle

   

10,159

a

742,013

 

Amcor

   

156,656

a

1,698,151

 

Avery Dennison

   

8,174

 

1,069,323

 

Ball

   

32,518

 

2,102,939

 

Celanese

   

11,858

 

1,459,957

 

CF Industries Holdings

   

20,514

 

979,338

 

Corteva

   

72,854

 

2,153,564

 

Dow

   

72,870

 

3,988,175

 

DuPont de Nemours

   

72,863

 

4,677,805

 

Eastman Chemical

   

13,764

 

1,090,935

 

Ecolab

   

24,359

 

4,701,043

 

FMC

   

12,626

 

1,260,327

 

Freeport-McMoRan

   

140,492

 

1,843,255

 

14

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Materials - 2.6% (continued)

     

International Flavors & Fragrances

   

10,257

a

1,323,358

 

International Paper

   

37,447

 

1,724,434

 

Linde

   

52,227

 

11,119,128

 

LyondellBasell Industries, Cl. A

   

25,168

 

2,377,873

 

Martin Marietta Materials

   

5,913

 

1,653,511

 

Newmont Goldcorp

   

79,286

 

3,444,977

 

Nucor

   

30,626

 

1,723,631

 

Packaging Corp. of America

   

9,232

a

1,033,892

 

PPG Industries

   

23,130

 

3,087,624

 

Sealed Air

   

14,502

 

577,615

 

The Mosaic Company

   

33,778

 

730,956

 

The Sherwin-Williams Company

   

7,955

 

4,642,061

 

Vulcan Materials

   

12,712

 

1,830,401

 

WestRock

   

25,043

 

1,074,595

 
    

69,108,648

 

Media & Entertainment - 8.1%

     

Activision Blizzard

   

74,278

 

4,413,599

 

Alphabet, Cl. A

   

29,112

b

38,992,322

 

Alphabet, Cl. C

   

29,101

b

38,908,619

 

Charter Communications, Cl. A

   

15,340

b

7,441,127

 

Comcast, Cl. A

   

441,045

 

19,833,794

 

Discovery, Cl. A

   

14,333

a,b

469,262

 

Discovery, Cl. C

   

34,944

b

1,065,443

 

DISH Network, Cl. A

   

23,159

b

821,450

 

Electronic Arts

   

28,551

b

3,069,518

 

Facebook, Cl. A

   

233,808

b

47,989,092

 

Fox, Cl. A

   

33,690

 

1,248,888

 

Fox, Cl. B

   

15,868

 

577,595

 

Live Nation Entertainment

   

12,512

b

894,233

 

Netflix

   

42,379

b

13,712,573

 

News Corp., Cl. A

   

36,334

 

513,763

 

News Corp., Cl. B

   

9,746

a

141,414

 

Omnicom Group

   

21,152

a

1,713,735

 

Take-Two Interactive Software

   

11,051

b

1,352,974

 

The Interpublic Group of Companies

   

35,615

a

822,707

 

The Walt Disney Company

   

175,068

 

25,320,085

 

Twitter

   

74,339

b

2,382,565

 

ViacomCBS, Cl. B

   

53,761

 

2,256,349

 
    

213,941,107

 

Pharmaceuticals Biotechnology & Life Sciences - 7.5%

     

AbbVie

   

142,987

 

12,660,069

 

Agilent Technologies

   

30,733

 

2,621,832

 

Alexion Pharmaceuticals

   

21,733

b

2,350,424

 

15

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Pharmaceuticals Biotechnology & Life Sciences - 7.5% (continued)

     

Allergan

   

31,595

 

6,040,016

 

Amgen

   

57,833

 

13,941,801

 

Biogen

   

17,617

b

5,227,492

 

Bristol-Myers Squibb

   

227,478

 

14,601,813

 

Eli Lilly & Co.

   

82,366

 

10,825,363

 

Gilead Sciences

   

122,237

 

7,942,960

 

Illumina

   

14,263

b

4,731,608

 

Incyte

   

16,915

b

1,477,018

 

IQVIA Holdings

   

17,375

b

2,684,611

 

Johnson & Johnson

   

256,174

 

37,368,101

 

Merck & Co.

   

248,217

 

22,575,336

 

Mettler-Toledo International

   

2,458

b

1,949,882

 

Mylan

   

48,602

b

976,900

 

PerkinElmer

   

10,394

a

1,009,257

 

Perrigo

   

13,029

a

673,078

 

Pfizer

   

537,655

 

21,065,323

 

Regeneron Pharmaceuticals

   

7,621

b

2,861,533

 

Thermo Fisher Scientific

   

38,760

 

12,591,961

 

Vertex Pharmaceuticals

   

24,672

b

5,401,934

 

Waters

   

6,512

b

1,521,529

 

Zoetis

   

46,247

 

6,120,790

 
    

199,220,631

 

Real Estate - 2.9%

     

Alexandria Real Estate Equities

   

10,841

c

1,751,689

 

American Tower

   

42,942

c

9,868,930

 

Apartment Investment & Management, Cl. A

   

14,738

c

761,218

 

AvalonBay Communities

   

13,365

c

2,802,640

 

Boston Properties

   

14,020

c

1,932,797

 

CBRE Group, Cl. A

   

32,385

b

1,984,877

 

Crown Castle International

   

39,983

c

5,683,583

 

Digital Realty Trust

   

19,798

a,c

2,370,613

 

Duke Realty

   

34,773

c

1,205,580

 

Equinix

   

8,276

c

4,830,701

 

Equity Residential

   

33,949

c

2,747,153

 

Essex Property Trust

   

6,406

c

1,927,309

 

Extra Space Storage

   

12,324

c

1,301,661

 

Federal Realty Investment Trust

   

7,039

c

906,130

 

Healthpeak Properties

   

47,306

c

1,630,638

 

Host Hotels & Resorts

   

71,740

c

1,330,777

 

Iron Mountain

   

27,062

a,c

862,466

 

Kimco Realty

   

40,544

a,c

839,666

 

16

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Real Estate - 2.9% (continued)

     

Mid-America Apartment Communities

   

10,982

c

1,448,087

 

Prologis

   

60,900

c

5,428,626

 

Public Storage

   

14,486

c

3,084,939

 

Realty Income

   

31,557

c

2,323,542

 

Regency Centers

   

16,399

c

1,034,613

 

SBA Communications

   

10,849

c

2,614,501

 

Simon Property Group

   

29,865

c

4,448,690

 

SL Green Realty

   

8,687

c

798,162

 

UDR

   

28,172

c

1,315,632

 

Ventas

   

35,704

c

2,061,549

 

Vornado Realty Trust

   

15,485

c

1,029,753

 

Welltower

   

39,152

c

3,201,851

 

Weyerhaeuser

   

72,410

c

2,186,782

 
    

75,715,155

 

Retailing - 6.1%

     

Advance Auto Parts

   

6,934

 

1,110,549

 

Amazon.com

   

40,454

b

74,752,519

 

AutoZone

   

2,333

b

2,779,326

 

Best Buy

   

22,663

 

1,989,811

 

Booking Holdings

   

4,079

b

8,377,165

 

CarMax

   

16,326

a,b

1,431,300

 

Dollar General

   

25,204

 

3,931,320

 

Dollar Tree

   

23,040

a,b

2,166,912

 

eBay

   

74,807

 

2,701,281

 

Expedia Group

   

13,420

 

1,451,239

 

Genuine Parts

   

13,629

 

1,447,809

 

Kohl's

   

15,638

a

796,756

 

L Brands

   

21,095

 

382,241

 

LKQ

   

29,347

b

1,047,688

 

Lowe's

   

74,648

 

8,939,844

 

Macy's

   

29,988

 

509,796

 

Nordstrom

   

11,477

a

469,754

 

O'Reilly Automotive

   

7,437

b

3,259,340

 

Ross Stores

   

35,395

 

4,120,686

 

Target

   

49,024

 

6,285,367

 

The Gap

   

19,500

a

344,760

 

The Home Depot

   

106,081

 

23,165,969

 

The TJX Companies

   

118,120

 

7,212,407

 

Tiffany & Co.

   

10,062

 

1,344,786

 

Tractor Supply

   

11,426

 

1,067,645

 

Ulta Beauty

   

5,371

a,b

1,359,615

 
    

162,445,885

 

17

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Semiconductors & Semiconductor Equipment - 4.2%

     

Advanced Micro Devices

   

107,737

a,b

4,940,819

 

Analog Devices

   

35,946

 

4,271,823

 

Applied Materials

   

89,497

 

5,462,897

 

Broadcom

   

38,509

 

12,169,614

 

Intel

   

424,119

 

25,383,522

 

KLA

   

15,451

 

2,752,905

 

Lam Research

   

14,058

 

4,110,559

 

Maxim Integrated Products

   

26,447

 

1,626,755

 

Microchip Technology

   

23,051

a

2,413,901

 

Micron Technology

   

108,049

b

5,810,875

 

NVIDIA

   

59,453

 

13,989,291

 

Qorvo

   

10,895

b

1,266,326

 

Qualcomm

   

111,191

 

9,810,382

 

Skyworks Solutions

   

16,985

 

2,053,147

 

Texas Instruments

   

90,488

 

11,608,706

 

Xilinx

   

24,431

 

2,388,619

 
    

110,060,141

 

Software & Services - 12.3%

     

Accenture, Cl. A

   

61,388

 

12,926,471

 

Adobe

   

46,997

b

15,500,081

 

Akamai Technologies

   

15,907

b

1,374,047

 

Alliance Data Systems

   

4,037

 

452,951

 

ANSYS

   

8,392

b

2,160,185

 

Autodesk

   

21,269

b

3,902,011

 

Automatic Data Processing

   

42,115

 

7,180,607

 

Broadridge Financial Solutions

   

11,453

 

1,414,904

 

Cadence Design Systems

   

27,003

b

1,872,928

 

Citrix Systems

   

12,042

 

1,335,458

 

Cognizant Technology Solutions, Cl. A

   

53,651

 

3,327,435

 

DXC Technology

   

26,162

 

983,430

 

Fidelity National Information Services

   

59,293

 

8,247,063

 

Fiserv

   

55,128

b

6,374,451

 

FleetCor Technologies

   

8,349

b

2,402,174

 

Fortinet

   

13,767

b

1,469,765

 

Gartner

   

8,783

b

1,353,460

 

Global Payments

   

29,011

 

5,296,248

 

International Business Machines

   

86,010

 

11,528,780

 

Intuit

   

25,032

 

6,556,632

 

Jack Henry & Associates

   

7,339

 

1,069,072

 

Leidos Holdings

   

12,424

 

1,216,185

 

Mastercard, Cl. A

   

86,362

 

25,786,830

 

Microsoft

   

741,350

 

116,910,895

 

Nortonlifelock

   

55,477

 

1,415,773

 

18

 

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Software & Services - 12.3% (continued)

     

Oracle

   

211,397

 

11,199,813

 

Paychex

   

30,744

 

2,615,085

 

PayPal Holdings

   

113,887

b

12,319,157

 

Salesforce.com

   

86,055

b

13,995,985

 

ServiceNow

   

18,121

b

5,115,921

 

Synopsys

   

14,615

b

2,034,408

 

The Western Union Company

   

41,493

a

1,111,183

 

Verisign

   

10,408

b

2,005,413

 

Visa, Cl. A

   

166,576

a

31,299,630

 
    

323,754,431

 

Technology Hardware & Equipment - 6.4%

    ��

Amphenol, Cl. A

   

28,682

 

3,104,253

 

Apple

   

406,238

 

119,291,789

 

Arista Networks

   

4,972

b

1,011,305

 

CDW

   

13,909

 

1,986,762

 

Cisco Systems

   

412,806

 

19,798,176

 

Corning

   

77,539

 

2,257,160

 

F5 Networks

   

6,076

b

848,513

 

FLIR Systems

   

13,035

 

678,732

 

Hewlett Packard Enterprise

   

126,764

 

2,010,477

 

HP

   

147,001

 

3,020,871

 

IPG Photonics

   

3,631

a,b

526,205

 

Juniper Networks

   

33,390

 

822,396

 

Keysight Technologies

   

17,807

b

1,827,532

 

Motorola Solutions

   

16,584

 

2,672,346

 

NetApp

   

22,627

 

1,408,531

 

Seagate Technology

   

23,527

 

1,399,857

 

TE Connectivity

   

32,041

 

3,070,809

 

Western Digital

   

28,434

 

1,804,706

 

Xerox Holdings

   

17,746

 

654,295

 

Zebra Technologies, Cl. A

   

4,947

b

1,263,662

 
    

169,458,377

 

Telecommunication Services - 2.1%

     

AT&T

   

709,775

 

27,738,007

 

CenturyLink

   

92,857

a

1,226,641

 

T-Mobile US

   

30,449

b

2,387,811

 

Verizon Communications

   

401,841

 

24,673,037

 
    

56,025,496

 

Transportation - 1.9%

     

Alaska Air Group

   

11,811

a

800,195

 

American Airlines Group

   

40,267

a

1,154,858

 

CH Robinson Worldwide

   

12,988

a

1,015,662

 

CSX

   

75,858

 

5,489,085

 

19

 

STATEMENT OF INVESTMENTS (continued)

        
 

Description

   

Shares

 

Value ($)

 

Common Stocks - 98.5% (continued)

     

Transportation - 1.9% (continued)

     

Delta Air Lines

   

56,248

 

3,289,383

 

Expeditors International of Washington

   

16,353

 

1,275,861

 

FedEx

   

23,176

 

3,504,443

 

J.B. Hunt Transport Services

   

8,273

 

966,121

 

Kansas City Southern

   

9,423

 

1,443,227

 

Norfolk Southern

   

25,486

 

4,947,597

 

Old Dominion Freight Line

   

6,137

 

1,164,680

 

Southwest Airlines

   

46,439

 

2,506,777

 

Union Pacific

   

67,607

 

12,222,670

 

United Airlines Holdings

   

21,604

b

1,903,096

 

United Parcel Service, Cl. B

   

67,712

 

7,926,367

 
    

49,610,022

 

Utilities - 3.2%

     

AES

   

64,148

 

1,276,545

 

Alliant Energy

   

23,207

 

1,269,887

 

Ameren

   

23,490

 

1,804,032

 

American Electric Power

   

47,859

 

4,523,154

 

American Water Works

   

17,152

 

2,107,123

 

Atmos Energy

   

11,178

 

1,250,371

 

CenterPoint Energy

   

47,561

 

1,296,988

 

CMS Energy

   

27,189

 

1,708,557

 

Consolidated Edison

   

31,626

 

2,861,204

 

Dominion Energy

   

79,433

 

6,578,641

 

DTE Energy

   

18,579

 

2,412,855

 

Duke Energy

   

70,105

 

6,394,277

 

Edison International

   

34,322

 

2,588,222

 

Entergy

   

19,156

 

2,294,889

 

Evergy

   

22,946

 

1,493,555

 

Eversource Energy

   

30,833

a

2,622,963

 

Exelon

   

93,659

 

4,269,914

 

FirstEnergy

   

51,952

 

2,524,867

 

NextEra Energy

   

47,258

 

11,443,997

 

NiSource

   

35,072

 

976,404

 

NRG Energy

   

24,777

 

984,886

 

Pinnacle West Capital

   

10,722

 

964,229

 

PPL

   

69,942

 

2,509,519

 

Public Service Enterprise Group

   

48,479

 

2,862,685

 

Sempra Energy

   

27,318

 

4,138,131

 

The Southern Company

   

101,060

 

6,437,522

 

WEC Energy Group

   

30,583

 

2,820,670

 

Xcel Energy

   

50,637

a

3,214,943

 
    

85,631,030

 

Total Common Stocks(cost $781,333,697)

   

2,600,557,080

 

20

 

        
 

Description

   

Principal Amount ($)

 

Value ($)

 

Short-Term Investments - .0%

     

U.S. Treasury Bills - .0%

     

1.54%, 3/12/20
(cost $1,207,387)

   

1,211,000

d,e

1,207,474

 
  

1-Day
Yield (%)

 

Shares

   

Investment Companies - 1.3%

     

Registered Investment Companies - 1.3%

     

Dreyfus Institutional Preferred Government Plus Money Market Fund
(cost $35,090,153)

 

1.60

 

35,090,153

f

35,090,153

 
        

Investment of Cash Collateral for Securities Loaned - .1%

     

Registered Investment Companies - .1%

     

Dreyfus Institutional Preferred Government Plus Money Market Fund
(cost $1,597,917)

 

1.60

 

1,597,917

f

1,597,917

 

Total Investments(cost $819,229,154)

 

99.9%

 

2,638,452,624

 

Cash and Receivables (Net)

 

.1%

 

3,154,284

 

Net Assets

 

100.0%

 

2,641,606,908

 


a
Security, or portion thereof, on loan. At December 31, 2019, the value of the fund’s securities on loan was $103,687,481 and the value of the collateral was $105,470,041, consisting of cash collateral of $1,597,917 and U.S. Government & Agency securities valued at $103,872,124.
b Non-income producing security.
c Investment in real estate investment trust within the United States.
d Held by a counterparty for open exchange traded derivative contracts.
e Security is a discount security. Income is recognized through the accretion of discount.
f Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.

  

Portfolio Summary (Unaudited)

Value (%)

Information Technology

22.9

Health Care

14.0

Financials

12.8

Communication Services

10.2

Consumer Discretionary

9.6

Industrials

8.9

Consumer Staples

7.1

Energy

4.3

Utilities

3.2

Real Estate

2.9

Materials

2.6

Investment Companies

1.4

Government

.0

 

99.9

 Based on net assets.
See notes to financial statements.

21

 

STATEMENT OF INVESTMENTS IN AFFILIATED ISSUERS

       

Investment Companies

Value
12/31/18($)

Purchases($)

Sales($)

Value
12/31/19($)

Net
Assets(%)

Dividends/
Distributions($)

Registered Investment Companies;

Dreyfus Institutional Preferred Government Plus Money Market Fund

44,784,965

344,426,625

354,121,437

35,090,153

1.3

353,820

Investment of Cash Collateral for Securities Loaded;

Dreyfus Institutional Preferred Government Plus Money Market Fund

528,028

43,121,085

42,051,196

1,597,917

.1

-

Total

45,312,993

387,547,710

396,172,633

36,688,070

1.4

353,820

See notes to financial statements.

22

 

STATEMENT OF FUTURES

December 31, 2019

       

Description

Number of
Contracts

Expiration

Notional
Value ($)

Value ($)

Unrealized Appreciation ($)

 

Futures Long

  

Standard & Poor's 500 E-mini

238

3/20/2020

38,184,945

38,450,090

265,145

 

Gross Unrealized Appreciation

 

265,145

 

See notes to financial statements.

23

 

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2019

       

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments
(including securities on loan, valued at $103,687,481)—Note 1(c):

 

 

 

Unaffiliated issuers

782,541,084

 

2,601,764,554

 

Affiliated issuers

 

36,688,070

 

36,688,070

 

Receivable for shares of Common Stock subscribed

 

3,904,607

 

Dividends, interest and securities lending income receivable

 

2,691,727

 

Receivable for futures variation margin—Note 4

 

87,461

 

Prepaid expenses

 

 

 

 

21,538

 

 

 

 

 

 

2,645,157,957

 

Liabilities ($):

 

 

 

 

Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c)

 

586,116

 

Liability for securities on loan—Note 1(c)

 

1,597,917

 

Payable for shares of Common Stock redeemed

 

1,142,183

 

Directors’ fees and expenses payable

 

34,767

 

Interest payable—Note 2

 

603

 

Other accrued expenses

 

 

 

 

189,463

 

 

 

 

 

 

3,551,049

 

Net Assets ($)

 

 

2,641,606,908

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

687,516,306

 

Total distributable earnings (loss)

 

 

 

 

1,954,090,602

 

Net Assets ($)

 

 

2,641,606,908

 

    

Net Asset Value Per Share

Initial Shares

Service Shares

 

Net Assets ($)

2,447,497,824

194,109,084

 

Shares Outstanding

40,824,119

3,233,349

 

Net Asset Value Per Share ($)

59.95

60.03

 

 

 

 

 

See notes to financial statements.

 

 

 

24

 

STATEMENT OF OPERATIONS

Year Ended December 31, 2019

       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Cash dividends:

 

Unaffiliated issuers

 

 

49,517,278

 

Affiliated issuers

 

 

353,820

 

Income from securities lending—Note 1(c)

 

 

137,156

 

Interest

 

 

21,279

 

Total Income

 

 

50,029,533

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

6,072,256

 

Distribution fees—Note 3(b)

 

 

471,333

 

Directors’ fees and expenses—Note 3(d)

 

 

227,843

 

Prospectus and shareholders’ reports

 

 

98,400

 

Professional fees

 

 

88,495

 

Loan commitment fees—Note 2

 

 

59,238

 

Chief Compliance Officer fees—Note 3(c)

 

 

11,793

 

Shareholder servicing costs—Note 3(c)

 

 

8,773

 

Interest expense—Note 2

 

 

3,935

 

Miscellaneous

 

 

106,350

 

Total Expenses

 

 

7,148,416

 

Investment Income—Net

 

 

42,881,117

 

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):

 

 

Net realized gain (loss) on investments and foreign currency transactions

160,542,751

 

Net realized gain (loss) on futures

6,051,173

 

Net Realized Gain (Loss)

 

 

166,593,924

 

Net change in unrealized appreciation (depreciation) on investments

456,042,762

 

Net change in unrealized appreciation (depreciation) on futures

192,309

 

Net Change in Unrealized Appreciation (Depreciation)

 

 

456,235,071

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

622,828,995

 

Net Increase in Net Assets Resulting from Operations

 

665,710,112

 

 

 

 

 

 

 

 

See notes to financial statements.

     

25

 

STATEMENT OF CHANGES IN NET ASSETS

          

 

 

 

 

Year Ended December 31,

 

 

 

 

2019

 

2018

 

Operations ($):

 

 

 

 

 

 

 

 

Investment income—net

 

 

42,881,117

 

 

 

41,509,061

 

Net realized gain (loss) on investments

 

166,593,924

 

 

 

129,615,672

 

Net change in unrealized appreciation
(depreciation) on investments

 

456,235,071

 

 

 

(268,012,379)

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

665,710,112

 

 

 

(96,887,646)

 

Distributions ($):

 

Distributions to shareholders:

 

 

 

 

 

 

 

 

Initial Shares

 

 

(156,170,011)

 

 

 

(91,983,099)

 

Service Shares

 

 

(12,524,591)

 

 

 

(7,398,303)

 

Total Distributions

 

 

(168,694,602)

 

 

 

(99,381,402)

 

Capital Stock Transactions ($):

 

Net proceeds from shares sold:

 

 

 

 

 

 

 

 

Initial Shares

 

 

266,353,027

 

 

 

330,404,029

 

Service Shares

 

 

4,947,696

 

 

 

6,256,745

 

Distributions reinvested:

 

 

 

 

 

 

 

 

Initial Shares

 

 

156,170,011

 

 

 

91,983,099

 

Service Shares

 

 

12,524,591

 

 

 

7,398,303

 

Cost of shares redeemed:

 

 

 

 

 

 

 

 

Initial Shares

 

 

(523,772,325)

 

 

 

(496,870,696)

 

Service Shares

 

 

(33,540,704)

 

 

 

(34,698,540)

 

Increase (Decrease) in Net Assets
from Capital Stock Transactions

(117,317,704)

 

 

 

(95,527,060)

 

Total Increase (Decrease) in Net Assets

379,697,806

 

 

 

(291,796,108)

 

Net Assets ($):

 

Beginning of Period

 

 

2,261,909,102

 

 

 

2,553,705,210

 

End of Period

 

 

2,641,606,908

 

 

 

2,261,909,102

 

Capital Share Transactions (Shares):

 

Initial Shares

 

 

 

 

 

 

 

 

Shares sold

 

 

4,823,519

 

 

 

6,237,412

 

Shares issued for distributions reinvested

 

 

2,932,016

 

 

 

1,769,164

 

Shares redeemed

 

 

(9,589,995)

 

 

 

(9,197,291)

 

Net Increase (Decrease) in Shares Outstanding

(1,834,460)

 

 

 

(1,190,715)

 

Service Shares

 

 

 

 

 

 

 

 

Shares sold

 

 

93,755

 

 

 

115,243

 

Shares issued for distributions reinvested

 

 

235,292

 

 

 

142,206

 

Shares redeemed

 

 

(611,203)

 

 

 

(640,906)

 

Net Increase (Decrease) in Shares Outstanding

(282,156)

 

 

 

(383,457)

 

 

 

 

 

 

 

 

 

 

 

See notes to financial statements.

        

26

 

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. The fund’s total returns do not reflect expenses associated with variable annuity or insurance contracts. These figures have been derived from the fund’s financial statements.

       
   
  
  

Year Ended December 31,

Initial Shares

 

2019

2018

2017

2016

2015

Per Share Data ($):

      

Net asset value,
beginning of period

 

48.98

53.48

45.86

43.42

44.99

Investment Operations:

      

Investment income—neta

 

.96

.89

.85

.83

.80

Net realized and unrealized
gain (loss) on investments

 

13.79

(3.27)

8.79

4.04

(.32)

Total from
Investment Operations

 

14.75

(2.38)

9.64

4.87

.48

Distributions:

      

Dividends from
investment income—net

 

(.95)

(.90)

(.85)

(.88)

(.81)

Dividends from net realized
gain on investments

 

(2.83)

(1.22)

(1.17)

(1.55)

(1.24)

Total Distributions

 

(3.78)

(2.12)

(2.02)

(2.43)

(2.05)

Net asset value, end of period

 

59.95

48.98

53.48

45.86

43.42

Total Return (%)

 

31.18

(4.63)

21.53

11.71

1.11

Ratios/Supplemental Data (%):

     

Ratio of total expenses
to average net assets

 

.27

.27

.27

.27

.27

Ratio of net expenses
to average net assets

 

.27

.27

.27

.27

.27

Ratio of net investment income
to average net assets

 

1.75

1.65

1.71

1.91

1.81

Portfolio Turnover Rate

 

2.94

3.69

2.90

3.87

3.74

Net Assets,
end of period ($ x 1,000)

 

2,447,498

2,089,485

2,344,944

2,001,468

1,880,694

a Based on average shares outstanding.
See notes to financial statements.

27

 

FINANCIAL HIGHLIGHTS (continued)

       
   
   
  

Year Ended December 31,

Service Shares

 

2019

2018

2017

2016

2015

Per Share Data ($):

      

Net asset value,
beginning of period

 

49.05

53.54

45.91

43.47

45.03

Investment Operations:

      

Investment income—neta

 

.82

.76

.72

.72

.69

Net realized and unrealized
gain (loss) on investments

 

13.80

(3.27)

8.81

4.04

(.31)

Total from
Investment Operations

 

14.62

(2.51)

9.53

4.76

.38

Distributions:

      

Dividends from
investment income—net

 

(.81)

(.76)

(.73)

(.77)

(.70)

Dividends from net realized
gain on investments

 

(2.83)

(1.22)

(1.17)

(1.55)

(1.24)

Total Distributions

 

(3.64)

(1.98)

(1.90)

(2.32)

(1.94)

Net asset value, end of period

 

60.03

49.05

53.54

45.91

43.47

Total Return (%)

 

30.84

(4.85)

21.22

11.44

.86

Ratios/Supplemental Data (%):

      

Ratio of total expenses
to average net assets

 

.52

.52

.52

.52

.52

Ratio of net expenses
to average net assets

 

.52

.52

.52

.52

.52

Ratio of net investment income
to average net assets

 

1.50

1.40

1.46

1.66

1.56

Portfolio Turnover Rate

 

2.94

3.69

2.90

3.87

3.74

Net Assets,
end of period ($ x 1,000)

 

194,109

172,424

208,762

200,670

203,044

a Based on average shares outstanding.
See notes to financial statements.

28

 

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

BNY Mellon Stock Index Fund, Inc. (the “fund”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), is a non-diversified open-end management investment company. The fund is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. The fund’s investment objective is to seek to match the total return of the S&P 500® Index. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Effective January 2, 2019, BNY Mellon Asset Management North America Corporation, a wholly-owned subsidiary of BNY Mellon and an affiliate of the Adviser, which serves as the fund’s index manager, was renamed Mellon Investments Corporation (the “Index Manager”).

Effective June 3, 2019, the fund changed its name from Dreyfus Stock Index Fund, Inc. to BNY Mellon Stock Index Fund, Inc. In addition, The Dreyfus Corporation, the fund’s investment adviser, changed its name to “BNY Mellon Investment Adviser, Inc.”, MBSC Securities Corporation, the fund’s distributor, changed its name to “BNY Mellon Securities Corporation” and Dreyfus Transfer, Inc., the fund’s transfer agent, changed its name to “BNY Mellon Transfer, Inc.”

BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares, which are sold without a sales charge. The fund is authorized to issue 400 million shares of $.001 par value Common Stock in each of the following classes of shares: Initial shares (250 million shares authorized) and Service shares (150 million shares authorized). Initial shares are subject to a Shareholder Services Plan fee and Service shares are subject to a Distribution Plan fee. Each class of shares has identical rights and privileges, except with respect to the Distribution Plan, Shareholder Services Plan and the expenses borne by each class, the allocation of certain transfer agency costs, and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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

29

 

NOTES TO FINANCIAL STATEMENTS(continued)

registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. 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 fundenters 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).

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:

30

 

Investments in equity 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.

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 is engaged under the general oversight 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 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 accurately reflect 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 such securities are generally categorized within Level 3 of the fair value hierarchy.

31

 

NOTES TO FINANCIAL STATEMENTS(continued)

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

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 December 31, 2019in valuing the fund’s investments:

     

 

Level 1 -
Unadjusted
Quoted Prices

Level 2 – Other
Significant
Observable
Inputs

Level 3 -
Significant
Unobservable
Inputs

Total

Assets ($)

    

Investment in Securities:

Equity Securities-
Common Stocks

2,600,557,080

-

-

2,600,557,080

Investment Companies

36,688,070

-

-

36,688,070

U.S. Treasury Securities

-

1,207,474

-

1,207,474

Other Financial Instruments;

Futures††

265,145

-

-

265,145


 See Statement of Investments for additional detailed categorizations, if any.
†† Amount shown represents unrealized appreciation at period end, but only variation margin on exchanged traded and centrally cleared derivatives, if any, are reported in the Statement of Assets and Liabilities..

(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

32

 

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.

Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of the Adviser, 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 the Adviser, 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. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis. During the period ended December 31, 2019, The Bank of New York Mellon earned $28,970 from the lending of the fund’s portfolio securities, pursuant to the securities lending agreement.

(d) Affiliated issuers: Investments in other investment companies advised by the Adviser are considered “affiliated” under the Act.

(e) Dividends and distributions to shareholders:Dividends and distributions are recorded on the ex-dividend date. Dividends from investment income-net are normally declared and paid quarterly. 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.

(f) 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

33

 

NOTES TO FINANCIAL STATEMENTS(continued)

provisions of the Code, and to make distributions of taxable income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended December 31, 2019, 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 December 31, 2019, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended December 31, 2019 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At December 31, 2019, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $4,592,733, undistributed capital gains $160,461,215 and unrealized appreciation $1,788,904,694.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2019 and December 31, 2018 were as follows: ordinary income $42,207,571 and $45,258,635, and long-term capital gains $126,487,031 and $54,122,767, respectively.

(g) New Accounting Pronouncements: Effective June 1, 2019, the fund adopted Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The update provides guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. The adoption of ASU 2018-13 had no impact on the operations of the fund for the period ended December 31, 2019.

NOTE 2—Bank Lines of Credit:

The fund participates with other long-term open-end funds managed by the Adviser in a $1.030 billion unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $830 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is in amount equal to $200 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. In connection therewith,

34

 

the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit 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 December 31, 2019 was approximately $127,120 with a related weighted average annualized interest rate of 3.10%.

NOTE 3—Management Fee, Index-Management Fee and Other Transactions with Affiliates:

(a)Pursuant to a management agreement (the “Agreement”) with the Adviser, the management fee is computed at the annual rate of .245% of the value of the fund’s average daily net assets and is payable monthly.

Pursuant to an index-management agreement (the “Index Agreement”), the Adviser has agreed to pay the Index Manager a monthly index-management fee at the annual rate of .095% of the value of the fund’s average daily net assets. Pursuant to the Index Agreement, the Index Manager pays the Custodian for its services to the fund.

(b)Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing its shares, for servicing and/or maintaining Service shares’ shareholder accounts and for advertising and marketing for Service shares. The Distribution Plan provides for payments to be made at an annual rate of .25% of the value of the Service shares’ average daily net assets. The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products. The fees payable under the Distribution Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2019,Service shares were charged $471,333 pursuant to the Distribution Plan.

(c) Under the Shareholder Services Plan, Initial shares reimburse the Distributor at an amount not to exceed an annual rate of .25% of the value of its average daily net assets for certain allocated expenses with respect to servicing and/or maintaining Initial shares’ shareholder accounts. During the period ended December 31, 2019, Initial shares were charged 7,226 pursuant to the Shareholder Services Plan.

The fund has an arrangement with the transfer agent whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency fees. The fund had an arrangement with the custodian to receive earnings credits when positive cash balances were maintained, which were used to offset custody fees.

35

 

NOTES TO FINANCIAL STATEMENTS(continued)

Effective February 1, 2019, the arrangement with the custodian changed whereby the fund will no longer receive earnings credits to offset its custody fees and will receive interest income or overdraft fees going forward. For financial reporting purposes, the fund includes net earnings credits, if any, as an expense offset in the Statement of Operations.

The fund compensates BNY Mellon Transfer, Inc., a wholly-owned subsidiary of the Adviser, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended December 31, 2019, the fund was charged $1,333 for transfer agency services. These fees are included in Shareholder servicing costs in the Statement of Operations.

During the period ended December 31, 2019, the fund was charged $11,793 for services performed by the Chief Compliance Officer and his staff. These fees are included in Chief Compliance Officer fees in the Statement of Operations.

The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: management fees of $538,185, Distribution Plan fees of $40,800, Shareholder Services Plan fees of $1,000, Chief Compliance Officer fees of $3,261 and transfer agency fees of $2,870.

(d) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds 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 futures, during the period ended December 31, 2019, amounted to $72,028,810 and $305,844,122, 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 December 31, 2019 is discussed below.

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 futures in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future

36

 

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 futures since they are exchange traded, and the exchange guarantees the futures against default. Futures open at December 31, 2019 are set forth in the Statement of Futures.

The following summarizes the average market value of derivatives outstanding duringthe period ended December 31, 2019:

   

 

 

Average Market Value ($)

Equity futures

 

22,160,932

 

 

 

At December 31, 2019, the cost of investments for federal income tax purposes was $849,547,930; accordingly, accumulated net unrealized appreciation on investments was $1,788,904,694, consisting of $1,848,034,638 gross unrealized appreciation and $59,129,944 gross unrealized depreciation.

NOTE 5—Pending Legal Matters:

The fund and many other entities have been named as defendants in numerous pending litigations as a result of their participation in the leveraged buyout transaction (“LBO”) of the Tribune Company (“Tribune”).

The State Law Cases: In 2008, approximately one year after the Tribune LBO concluded, Tribune filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code (the “Code”). Beginning in June 2011, Tribune creditors filed complaints in various courts, alleging that the payments made to shareholders in the LBO were “fraudulent conveyances” under state and/or federal law, and that the shareholders must return the payments they received for their shares (collectively, “the state law cases”). The state law cases were consolidated for pre-trial proceedings in the United States District Court for the Southern District of New York, under the captionIn re Tribune Company Fraudulent Conveyance Litigation(S.D.N.Y. Nos. 11-md-2296 and 12-mc-2296 (RJS) (“Tribune MDL”)). On September 23, 2013, the Court dismissed 50 cases, including at least one case in which the fund was a defendant. On September 30, 2013, plaintiffs

37

 

NOTES TO FINANCIAL STATEMENTS(continued)

appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit. On March 29, 2016, the Second Circuit affirmed the dismissal on the ground that the plaintiffs’ claims were preempted by section 546(e) of the Code, which exempts qualified transfers that were made “by or to (or for the benefit of) . . . a financial institution.” The fund is a registered investment company, which the Code defines as a “financial institution.”

On September 9, 2016, Plaintiffs filed a petition forcertiorarito the U.S. Supreme Court. During the pendency of the plaintiffs’cert. petition, the Supreme Court ruled in another case,Merit Management Group, LP v. FTIConsulting, Inc. (“Merit Management”), that Section 546(e) does not exempt qualified transfers from avoidance that merely passed through “financial institutions,” though it does exempt “financial institutions” themselves, like the fund.

On May 15, 2018, in response to theMerit Management decision, the Second Circuit issued an Order in the State Law Cases that “the mandate in this case is recalled in anticipation of further panel review.”

On December 19, 2019, the Second Circuit issued an Amended and Corrected Opinion affirming dismissal of the constructive fraudulent transfer claims notwithstandingMerit Mgmt.,because there is an alternate basis for finding that the payments are safe-harbored under Section 546(e); namely, that, with respect to LBO payments, the Tribune Company is itself a “financial institution” because it was the customer of Computershare – a trust company and bank that acted as Tribune’s agent – and because all payments were made in connection with a securities contract.

On January 2, 2020, plaintiffs petitioned the Second Circuit for rehearing and rehearingen bancon numerous grounds, including that the panel rendered its decision using an incorrect construction of Section 546(e), improperly considered evidence, and an insufficiently developed factual record. Second Circuit rules state that parties opposing a petition for rehearing and rehearingen banc are not permitted to file a response unless requested by theCourt. As of January 24, 2020, the Second Circuit has not requested oppositions to plaintiffs’ motion.

TheFitzSimonsLitigation: On November 1, 2010, a case now styled,Mark S. Kirchner, as Litigation Trustee for the Tribune Litigation Trust v. FitzSimons, et al., S.D.N.Y. No. 12-cv-2652 (RJS) was filed (“theFitzSimons Litigation”). Among other things, the complaint sought recovery of alleged “fraudulent conveyances” from more than 5,000 Tribune shareholders (“Shareholder Defendants”), including the fund, that participated in the Tribune LBO. On May 23, 2014, the defendants filed a motion to dismiss, which the

38

 

Court granted on January 9, 2017. The plaintiff then sought leave to file an interlocutory appeal. On February 23, 2017, the Court entered an order stating that it would permit the plaintiff to file an interlocutory appeal after the Court decided other pending motions.

Effective November 1, 2018, Judge Denise Cote was assigned to the case when Judge Richard Sullivan was elevated to the Second Circuit.

On November 30, 2018, the Court issued an Opinion and Order resolving the remaining motions by dismissing most, but not all, of the claims asserted against the individual defendants.

In January 2019, various state law claims asserted against certain individual defendants were dismissed.

Between February and early April 2019, plaintiffs and certain defendants attempted to resolve the dispute through mediation, but ultimately decided to await the Second Circuit’s review of its May 29, 2016 decision before attempting to negotiate a settlement.

On April 4, 2019, plaintiff filed a motion to amend theFitzSimons complaint to add a claim for constructive fraudulent transfer from defendants subject to clawback under the Bankruptcy Code. On April 10, 2019, the affected defendants opposed the motion.

On April 23, 2019, Judge Cote denied plaintiff’s motion to amend the complaint to add a new constructive fraudulent transfer claim because such amendment would be futile and would result in substantial prejudice to the shareholder defendants given that the only claim against the shareholder defendants inFitzSimonshas been dismissed for over two years, subject to appeal. Judge Cote considered the amendment futile on the ground that constructive fraudulent transfer claims are barred by the safe harbor provision of Section 546(e), which defines “financial institution” to include, in certain circumstances, thecustomers of traditional financial institutions, including Tribune.

On July 12, 2019, the Trustee filed a notice of appeal to the Second Circuit from the April 23, 2019, decision denying leave to amend the complaint to add constructive fraudulent transfer claims. On July 15, 2019, the Trustee filed a corrected notice of appeal to remedy technical errors with the notice filed on July 12, 2019. Briefing on these matters began in January 2020, and is expected to be completed and fully submitted to the Second Circuit by June 2020.

At this stage in the proceedings, management does not believe that a loss is probable and, in any event, is unable to reasonably estimate the possible loss that may result.

39

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of BNY Mellon Stock Index Fund, Inc. (formerly, Dreyfus Stock Index Fund, Inc.)

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of BNY Mellon Stock Index Fund, Inc. (the “Fund”) (formerly, Dreyfus Stock Index Fund, Inc.), including the statements of investments, investments in affiliated issuers and futures, as of December 31, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund at December 31, 2019, 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 its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more investment companies in the BNY Mellon Family of Funds since at least 1957, but we are unable to determine the specific year.

New York, New York
February 10, 2020

40

 

IMPORTANT TAX INFORMATION(Unaudited)

For federal tax purposes, the fund hereby reports 98.37% of the ordinary dividends paid during the fiscal year ended December 31, 2019 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in early 2020 of the percentage applicable to the preparation of their 2019 income tax returns. Also, the fund hereby reports $.0051 per share as a short-term capital gain distribution and $2.8272 per share as a long-term capital gain distribution paid on March 29, 2019.

41

 

BOARD MEMBERS INFORMATION(Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (76)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

· Corporate Director and Trustee (1995-Present)

Other Public Company Board Memberships During Past 5 Years:

· CBIZ, Inc., a public company providing professional business services, products and solutions,Director (1997-Present)

No. of Portfolios for which Board Member Serves:118

———————

Peggy C. Davis (76)

Board Member (2006)

Principal Occupation During Past 5 Years:

· Shad Professor of Law, New York University School of Law (1983-present)

No. of Portfolios for which Board Member Serves: 43

———————

Gina D. France (61)

Board Member (2019)

Principal Occupation During Past 5 Years:

· Founder, President and Chief Executive Officer, France Strategic Partners, a strategy and advisory firm serving corporate clients across the United States (2003 –Present)

· Corporate Director and Trustee (2004 – Present)

Other Public Company Board Memberships During Past 5 Years:

· Huntington Bancshares, a bank holding company headquartered in Columbus, Ohio,Director(2016 – Present)

· Cedar Fair, L.P., a publicly-traded partnership that owns and operates amusement parks and hotels in the U.S. and Canada,Director (2011 – Present)

· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies,Director(2015 – Present)

· Baldwin Wallace University,Trustee (2013- Present)

· FirstMerit Corporation, a diversified financial services company,Director (2004 – 2016)

No. of Portfolios for which Board Member Serves:29

———————

42

 

Joan Gulley (72)

Board Member (2017)

Principal Occupation During Past 5 Years:

· PNC Financial Services Group, Inc.(1993-2014), Executive Vice President and Chief Human Resources Officer and Executive Committee Member (2008-2014)

· Director, Nantucket Library (2015-Present)

No. of Portfolios for which Board Member Serves:49

———————

Ehud Houminer (79)

Board Member (1993)

Principal Occupation During Past 5 Years:

· Board of Overseers at the Columbia Business School, Columbia University (1992-Present)

· Trustee, Ben Gurion University (2012-2018)

No. of Portfolios for which Board Member Serves:49

———————

Robin A. Melvin (56)

Board Member (2012)

Principal Occupation During Past 5 Years:

· Co-chairman, Mentor Illinois, a non-profit organization dedicated to increasing the quantity and quality of mentoring services in Illinois; (2014-Present); Board member (2013-Present)

No. of Portfolios for which Board Member Serves:96

———————

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 BNY Mellon Investment Adviser, Inc. 240 Greenwich Street, New York, New York 10286. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from the Adviser free of charge by calling this toll free number: 1-800-373-9387.

David P. Feldman, Emeritus Board Member
James F. Henry, Emeritus Board Member
Lynn Martin, Emeritus Board Member
Dr. Martin Peretz, Emeritus Board Member
Philip L. Toia, Emeritus Board Member

43

 

OFFICERS OF THE FUND(Unaudited)

RENEE LAROCHE-MORRIS, President since May 2019.

President and a director of BNY Mellon Investment Adviser, Inc. since January 2018. She is an officer of 62 investment companies (comprised of 118 portfolios) managed by the Adviser. She is 48 years old and has been an employee of BNY Mellon since 2003.

JAMES WINDELS, Treasurer since September 2003.

Director- BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 61 years old and has been an employee of the Adviser since April 1985.

BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015.

Chief Legal Officer of the Adviser and Associate General Counsel and Managing Director of BNY Mellon since June 2015; Director and Associate General Counsel of Deutsche Bank – Asset & Wealth Management Division from June 2005 to June 2015, and as Chief Legal Officer of Deutsche Investment Management Americas Inc. from June 2012 to May 2015. He is an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 48 years old and has been an employee of the Adviser since June 2015.

DAVID DIPETRILLO, Vice President since May 2019.

Head of North America Product, BNY Mellon Investment Management since January 2018, Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017; Head of US Retail Product and Channel Marketing, BNY Mellon Investment Management from January 2014 to December 2015. He is an officer of 62 investment companies (comprised of 118 portfolios) managed by the Adviser. He is 41 years old and has been an employee of BNY Mellon since 2005.

JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.

Senior Managing Counsel of BNY Mellon since December 2019; Managing Counsel of BNY Mellon from April 2014 to December 2019; Secretary of the Adviser, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 53 years old and has been an employee of the Adviser since December 1996.

SONALEE CROSS, Vice President and Assistant Secretary since March 2018.

Counsel of BNY Mellon since October 2016; Associate at Proskauer Rose LLP from April 2016 to September 2016; Attorney at EnTrust Capital from August 2015 to February 2016; Associate at Sidley Austin LLP from September 2013 to August 2015. She is an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. She is 32 years old and has been an employee of the Adviser since October 2016.

DEIRDRE CUNNANE, Vice President and Assistant Secretary since March 2019.

Counsel of BNY Mellon since August 2018; Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018; Trustee Associate at BNY Mellon Trust Company (Ireland) Limited from August 2013 to February 2016. She is an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. She is 29 years old and has been an employee of the Adviser since August 2018.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Managing Counsel of BNY Mellon since December 2017, Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. She is 44 years old and has been an employee of the Adviser since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since September 2003.

Senior Managing Counsel of BNY Mellon, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 54 years old and has been an employee of the Adviser since October 1990.

PETER M. SULLIVAN, Vice President and Assistant Secretary since March 2019.

Managing Counsel of BNY Mellon, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 51 years old and has been an employee of the Adviser since April 2004.

44

 

NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.

Managing Counsel of BNY Mellon since December 2019; Counsel of BNY Mellon from May 2016 to December 2019; Attorney at Wildermuth Endowment Strategy Fund/Wildermuth Advisory, LLC from November 2015 to May 2016 and Assistant General Counsel at RCS Advisory Services from July 2014 to November 2015. She is an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. She is 34 years old and has been an employee of the Adviser since May 2016.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager - BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 51 years old and has been an employee of the Adviser since April 1991.

ROBERT S. ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager- BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 55 years old and has been an employee of the Adviser since October 1988.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager – BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 52 years old and has been an employee of the Adviser since June 1989.

ROBERT SVAGNA, Assistant Treasurer since September 2003.

Senior Accounting Manager – BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 141 portfolios) managed by the Adviser. He is 52 years old and has been an employee of the Adviser since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Adviser, the BNY Mellon Family of Funds and BNY Mellon Funds Trust (63 investment companies, comprised of 141 portfolios). He is 62 years old and has served in various capacities with the Adviser since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.

Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since January 2016; from May 2015 to December 2015, Interim Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust and the Distributor; from January 2012 to May 2015, AML Surveillance Officer of the Distributor. She is an officer of 56 investment companies (comprised of 134 portfolios) managed by the Adviser. She is 51 years old and has been an employee of the Distributor since 1997.

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For More Information

BNY Mellon Stock Index Fund, Inc.

240 Greenwich Street
New York, NY 10286

Adviser

BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, NY 10286

Index Manager

Mellon Investment Corporation
BNY Mellon Center
One Boston Place
Boston, MA 02108-4408

Custodian

The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

BNY Mellon Transfer, Inc.
240 Greenwich Street
New York, NY 10286

Distributor

BNY Mellon Securities Corporation
240 Greenwich Street
New York, NY 10286


Telephone 1-800-258-4260 or 1-800-258-4261

Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Services Department

E-mailSend your request to info@bnymellon.com

InternetInformation can be viewed online or downloaded atwww.bnymellonim.com/us

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-PORT. The fund’s Forms N-PORT are available on the SEC’s website atwww.sec.gov.

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 atwww.bnymellonim.com/us and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.

  

© 2020 BNY Mellon Securities Corporation
0763AR1219

 


 

 

Item 2.             Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3.             Audit Committee Financial Expert.

The Registrant's Board has determined that Joseph DiMartino , a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC").  Mr. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4.             Principal Accountant Fees and Services.

 

(a) Audit Fees.  The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $35,222 in 2018 and $36,338 in 2019.

 

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $10,016 in 2018 and $9,982 in 2019.  These services consisted of one or more of the following: (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended, (iii) advisory services as to the accounting or disclosure treatment of Registrant transactions or events and (iv) advisory services to the accounting or disclosure treatment of the actual or potential impact to the Registrant of final or proposed rules, standards or interpretations by the Securities and Exchange Commission, the Financial Accounting Standards Boards or other regulatory or standard-setting bodies.

 

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2018 and $0 in 2019.

 

(c) Tax Fees.  The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $4,482 in 2018 and $3,032 in 2019.  These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies. The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2018 and $0 in 2019. 

 

 

 


 

(d) All Other Fees.  The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $26 in 2018 and $30 in 2019.  These services consisted of a review of the Registrant's anti-money laundering program.

 

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were  $0 in 2018 and $0 in 2019. 

 

(e)(1)Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. The pre-approved services in the Policy can include pre-approved audit services, pre-approved audit-related services, pre-approved tax services and pre-approved all other services.  Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence.  Pre-approvals pursuant to the Policy are considered annually.

(e)(2)Note. None of the services described in paragraphs (b) through (d) of this Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f) None of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $744,219 in 2018 and $605,259 in 2019. 

 

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.

 

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. 

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.           Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13.           Exhibits.

(a)(1)    Code of ethics referred to in Item 2.

(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.

BNY Mellon Stock Index Fund, Inc.

By:      /s/ Renee LaRoche-Morris

            Renee LaRoche-Morris

            President (Principal Executive Officer)

 

Date:    February 10, 2020

 

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/ Renee LaRoche-Morris

            Renee LaRoche-Morris

            President (Principal Executive Officer)

 

Date:    February 10, 2020

 

By:      /s/ James Windels

            James Windels

            Treasurer (Principal Financial Officer)

 

Date:    February 7, 2020

 

 

 

 

 


 

EXHIBIT INDEX

(a)(1)    Code of ethics referred to in Item 2.

(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)