DREYFUS VARIABLE INVESTMENT FUND
TABLE OF CONTENTS
PAGE
----------
Money Market Portfolio................................. 1 _ 3
Managed Assets Portfolio............................... 4 _ 9
Zero Coupon Portfolio.................................. 10 _ 13
Quality Bond Portfolio................................. 14 _ 17
Small Cap Portfolio.................................... 18 _ 22
Capital Appreciation Portfolio......................... 23 _ 28
Growth and Income Portfolio............................ 29 _ 32
International Equity Portfolio......................... 33 _ 37
Financial Statements................................... 38 _ 60
Report of Independent Auditors......................... 61
Important Tax Information.............................. 62
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
Dear Shareholder:
Money market yields have been in a rising pattern for most of the year.
This began in February 1994 when the Federal Reserve Board began a series of
six steps to head off inflation by raising short-term interest rates. During
the year, the Federal Funds rate was boosted by 250 basis points. In just the
last six months the increase has amounted to 125 basis points.
The year's returns for the Dreyfus Variable Investment Fund, Money Market
Portfolio reflect both the low level of interest rates when the year began,
and the continuous rise since then. For the fiscal year ended December 31,
1994, the annualized yield of the Money Market Portfolio was 4.30%, which
equals an annualized effective yield of 4.39% after compounding.* It may be
of interest to note that in the fourth quarter of 1994, the annualized yield
was 5.32% and annualized effective yield 5.45%. The Portfolio's yield does
not reflect the deduction of additional charges applicable to separate
accounts of participating insurance companies using the Portfolio as an
underlying investment.
The performance of the U.S. economy last year was impressive, in spite of
slow retail sales during the Christmas season. During the year we saw a
robust housing market, booming automobile sales, notable expansion in new
jobs, a drop in the jobless rate and expanding industrial production. All
this was accomplished with a very modest level of inflation, whether you
measure inflation by the existing numbers or revise it downward, as has been
suggested by Alan Greenspan, Chairman of the Federal Reserve Board. In
January, he told Congress he thought the Consumer Price Index overstated
inflation by .05% to 1.5%.
Recently, the fiscal and monetary problems of Mexico have unsettled
financial markets. However, the U.S. rescue plan appears to have had a
calming effect.
All of this affects money market rates. The Federal Reserve will soon
have to decide whether another increase in the Federal Funds rate is
required. The continued expansion of the American economy argues for further
tightening of interest rates.
For most of the year, we maintained a fairly short average maturity, in
anticipation of the increases in interest rates. That is still our posture.
As always, we will be watching economic developments closely and will not
hesitate to make Portfolio adjustments as required.
As announced by The Dreyfus Corporation this month, Joseph S. DiMartino
has resigned as President of The Dreyfus Corporation and Portfolio Manager of
the Dreyfus Variable Investment Fund, Money Market Portfolio in order to
assume new duties as Chairman of the Boards of certain Dreyfus mutual funds.
I have assumed the position of Primary Portfolio Manager for the Money Market
Portfolio. I have worked closely with Mr. DiMartino for the past 13 years and
presently manage other Dreyfus money market funds.
We are committed to continuing the superior investment service this
Portfolio has provided to its investors in the past, and look forward to
serving your investment needs of the future.
Sincerely,
(Patricia A. Larkin)
Patricia A. Larkin
Portfolio Manager
January 17, 1995
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSITS--18.4% AMOUNT VALUE
------------- -------------
<S> <C> <C>
Chase Manhattan Bank N.A. (London)
6.56%, 5/1/95........................................................... $ 1,500,000 $ 1,500,000
Fleet Bank of Massachussets (London)
6.55%, 4/13/95.......................................................... 1,000,000 1,000,000
Industrial Bank of Japan Ltd. (Yankee)
6.50%, 5/22/95.......................................................... 1,500,000 1,500,000
Sanwa Bank Ltd. (Yankee)
5.76%-5.77%, 2/10/95-4/21/95............................................ 1,500,000 1,500,022
Sumitomo Bank Ltd. (Yankee)
5.23%, 3/7/95........................................................... 900,000 900,000
------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $ 6,400,022 )..................................................... $ 6,400,022
============
BANKERS' ACCEPTANCES-4.2%
Dai-Ichi Kangyo Bank Ltd. (Yankee)
6.77%, 5/30/95
(cost $1,459,149)....................................................... $ 1,500,000 $ 1,459,149
============
COMMERCIAL PAPER-57.0%
Den Danske Corp. Inc.
5.54%, 1/13/95.......................................................... $ 1,000,000 $ 998,180
Dresdner U.S. Finance Inc.
6.52%, 5/22/95.......................................................... 1,500,000 1,462,694
Ford Motor Credit Co.
6.49%, 4/11/95.......................................................... 1,000,000 982,361
General Electric Capital Corp.
5.11%-5.47%, 1/12/95-3/10/95............................................ 1,500,000 1,493,703
General Electric Capital Services Inc.
5.47%-6.56%, 1/12/95-4/12/95............................................ 1,650,000 1,636,642
General Motors Acceptance Corp.
5.13%-6.49%, 1/30/95-4/6/95............................................. 1,400,000 1,381,632
Generale Bank Inc.
6.49%, 4/20/95.......................................................... 1,500,000 1,471,160
Goldman Sachs Group L.P.
5.12%-6.08%, 1/5/95-4/14/95............................................. 1,500,000 1,482,726
ITT Corp.
5.71%, 1/17/95.......................................................... 1,000,000 997,489
ITT Financial Corp.
5.02%-5.91%, 1/4/95-2/21/95............................................. 1,550,000 1,541,365
Merrill Lynch & Co. Inc.
5.48%, 1/20/95.......................................................... 800,000 797,720
NYNEX Corp.
6.28%, 4/4/95........................................................... 1,500,000 1,476,169
Sears Roebuck Acceptance Corp.
5.45%-5.56%, 1/13/95-1/25/95............................................ 1,500,000 1,495,519
Spintab AB
6.02%-6.04%, 3/15/95-3/23/95............................................ 1,600,000 1,580,044
DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
------------- -------------
SwedBank Inc.
5.65%, 1/26/95.......................................................... $ 1,000,000 $ 996,125
-------------
TOTAL COMMERCIAL PAPER (cost $19,793,529)................................... $19,793,529
============
CORPORATE NOTES-4.9%
Bear Stearns Companies Inc.
5.85%, 8/25/95........................................................ (a) $ 1,000,000 $ 1,000,000
Merrill Lynch & Co. Inc.
5.79%, 4/26/95........................................................ (a) 700,000 700,000
-------------
TOTAL CORPORATE NOTES (cost $1,700,000)..................................... $ 1,700,000
============
U.S. GOVERNMENT AGENCIES-17.0%
Federal Home Loan Mortgage Corp., Discount Notes
6.25%, 1/3/95
(cost $5,896,952)....................................................... $ 5,899,000 $ 5,896,952
============
TOTAL INVESTMENTS (cost $35,249,652)......................... 101.5% $35,249,652
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES....................... (1.5%) $ (521,249)
====== ============
NET ASSETS ............................................. 100.0% $34,728,403
====== ============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate-subject to periodic change.
See notes to financial statements.
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
Dear Shareholder:
For the fiscal year ended December 31, 1994, the Managed Assets Portfolio
of the Dreyfus Variable Investment Fund provided a total return of -1.56%*
compared to 1.31% for the Standard & Poor's 500 Composite Stock Price Index
and 5.02% for the Dow Jones Industrial Average.** The Portfolio's performance
does not reflect the deduction of additional charges applicable to separate
accounts of participating insurance companies using the Portfolio as an
underlying investment.
Over this last year, the Portfolio was positioned to profit when the
price of gold went higher, the dollar weakened and equity prices declined.
Our strategy to maximize total return involved protecting the Portfolio's
long equities through the use of futures while attempting to achieve capital
appreciation with holdings in gold shares, non-dollar securities, and put
options on both the stock and bond markets.
GOLD AND GOLD MINING SHARES
The Portfolio's precious metal shares position, primarily gold mining
shares, stands at approximately 20% of the total portfolio. The decline in
the market for gold shares during 1994 appears to be only a temporary setback
from what we believe was the start of a bull market in gold that began in
early 1993. As the Federal Reserve Board raised short-term interest rates,
precious metals shares suffered from the general market liquidity constraints
that were felt throughout most asset classes. Since we believe that gold
shares will outperform other equities in today's markets, their recent
sell-off has given the Portfolio a buying opportunity. In our view, an
imbalance exists between the real economy and the financial markets. This
imbalance is demonstrated by the extraordinary rates of return achieved by
stocks and bonds over the past 12 years, as well as the sharp increase in the
ratio of debt to gross domestic product during the past decade. A lessening
of the imbalance, which we believe is underway, involves breaking the
worldwide financial asset bubble. Since gold is not widely held, even the
slightest reallocation of portfolios by investors seeking to protect their
wealth would significantly increase the investment demand for gold bullion
and shares.
AN ECONOMIC SCENARIO
Such economic imbalances generally resolve themselves by either deflation
or reflation. The credit cycles that ended in 1815, 1865 and 1929 all
exhibited excessive debt levels and resulted in lower price levels through a
deflationary process. Today, we again have extraordinarily high levels of
debt that may result in the second major deflation of this century.
Currently, our Government represents over 20% of both the domestic credit
markets and our gross domestic product. Given that fact, it's also possible
that the Government will rectify the imbalance by implementing a reflationary
process of monetary expansion whereby the excess debt would be paid back with
a debased fiat currency. While such reflation would temporarily defuse the
domestic debt situation, its results could also include a declining dollar
and rising gold prices.
Recent history tends to reinforce our belief that any decreases in the
prices of U.S. financial assets, particularly the bond market, may coincide
with a flight from the dollar. We have approximately a 16% position in debt
securities denominated in German marks, South African rand and Swiss francs
since we anticipate that U.S. financial assets will continue to weaken,
leading to further declines in the dollar.
HEDGING AGAINST A POTENTIAL STOCK MARKET DECLINE
The Portfolio continues to hold about 2% in S&P 500 Index put options
that should benefit from declines in the equity markets. If we are correct,
these option positions will rise in value, and represent a higher percentage
of the Portfolio. Because the stock market rose over the past year, these
options positions lost value and reduced total return. As the options expired
or lost value, we added to the positions to maintain the level of exposure we
felt was appropriate.
OUR OUTLOOK FOR THE STOCK MARKET
The general stock market has remained at high levels. Yet many indicators
- -- such as short-term interest rates, global bond market levels, the Dow
Jones Utilities Average, gold bullion prices, stock market internal strength,
the Dow Jones Transports and the CRB Index -- have reversed their decade-long
trends, which implies that a market top has been reached. In addition, the
combination of declining interest rates and commodity prices, which had
propelled higher stock prices since 1982, seems to have reversed. Now we
believe the market is focusing on earnings as the driving force of a
continued bull market. However, we feel that any future earnings increases
will not propel stocks further because these increases have been widely
anticipated and already factored into current high price levels. The
price/earnings ratio of the S&P 500 has reached 20 and its related dividend
yield has fallen below 3%. In the past, such valuation levels have preceded a
market correction. In addition, while it may seem obvious that strong
earnings are good for stock prices, experience warns of the dangers of giving
too much weight to only one factor, especially when earnings momentum appears
to have peaked. Remember that earnings were generally disappointing during
the bull market of the 1980s.
In summary, we believe that your Portfolio is now positioned to benefit
from market declines, stronger gold share prices and a weakening dollar. In
addition, the Portfolio will continue to hold a significant U.S. Treasury
bill position in an effort to provide returns while preserving capital and
giving the Portfolio buying power to make use of during the sell-off we
anticipate.
Sincerely,
Comstock Partners, Inc.
Investment Policy Committee
January 25, 1995
Jersey City, N.J.
* Total return represents the change during the period in a
hypothetical account with dividends reinvested.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. Reflects the reinvestment
of income dividends and, where applicable, capital gain distributions.
Both the Standard & Poor's 500 Composite Stock Price Index and the Dow
Jones Industrial Average are widely accepted unmanaged indexes of stock
market performance.
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, MANAGED ASSETS PORTFOLIO AND THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX AND DOW JONES INDUSTRIAL AVERAGE
[Exhibit A]
*Source: Lipper Analytical Services, Inc.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- --------------------------
<S> <C> <C>
(1.56%) 8.81%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Managed Assets Portfolio on 8/31/90 (Inception Date) to a
$10,000 investment made in the Standard & Poor's 500 Composite Stock Price
Index and Dow Jones Industrial Average on that date. All dividends and
capital gain distributions are reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Standard & Poor's 500 Composite Stock Price Index and the Dow
Jones Industrial Average are widely accepted, unmanaged indices of overall
stock market performance which do not take into account charges, fees and
other expenses. Further information relating to Portfolio performance,
including expense reimbursements, if applicable, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in
this report.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS
DECEMBER 31, 1994
COMMON STOCKS--25.8% SHARES VALUE
------------- -------------
<S> <C> <C>
AGRICULTURE--1.2% IMC Global 8,400 $ 363,300
-------------
COAL--.2% Addington Resources (a) 5,000 48,750
-------------
CONSUMER
GROWTH STAPLES--.5% Paragon Trade Brands................... (a) 12,000 159,000
-------------
CONSUMER STAPLES--.1% Kimberly-Clark, Cl. A 3,500 42,072
-------------
ENERGY--.4% Baker Hughes 7,500 136,875
-------------
FOODS & BEVERAGES--.3% Dole Food 3,400 78,200
-------------
HEALTH CARE--.4% National Medical Enterprises (a) 8,500 120,063
-------------
MINING & METALS--22.2% ASARCO 9,000 256,500
Amax Gold............................ (a) 43,000 258,000
American Barrick Resources............. 5,200 115,700
Anglovaal.............................. 5,000 161,548
Ashanti Goldfields, G.D.R. ........ (a,b) 3,000 65,437
Battle Mountain Gold, Cl. A............ 30,000 330,000
Bema Gold............................ (a) 87,000 146,812
Buffelsfontein Gold Mining, A.D.R...... 13,000 113,750
Canyon Resources..................... (a) 68,000 106,250
Crystallex International............. (a) 16,000 39,943
Driefontein Consolidated, A.D.R........ 6,300 95,288
Echo Bay Mines......................... 3,000 31,875
El Callao Mining..................... (a) 8,000 7,703
Free State Consolidated Gold Mines, A.D.R. 4,800 73,800
Freeport McMoRan Copper & Gold, Cl. A.. 3,800 80,750
Goldcorp, Cl. A........................ 29,040 163,117
Herald Resources....................... 90,200 72,049
Homestake Mining....................... 30,700 525,738
ISCOR................................ (a) 102,400 117,747
Impala Platinum Holdings, A.D.R........ 11,000 270,270
Inco................................... 12,200 349,225
International Gold Resources......... (a) 80,000 251,070
International Gold Resources (Warrants) (a) 20,750 2,960
Johannesburg Consolidated Investment, A.D.R. (a) 1,400 35,946
Kloof Gold Mining, A.D.R............... 6,300 93,713
MK Gold.............................. (a) 99,000 457,875
Menzies Gold......................... (a) 250,000 162,855
Newmont Mining......................... 14,871 535,356
Pegasus Gold......................... (a) 17,500 199,063
Placer Dome............................ 14,400 313,200
Prime Resource Group................. (a) 26,000 187,767
Randfontein Estates Gold Mining, A.D.R. 7,200 82,260
Rio Amarillo Mining................ (a,b) 80,000 41,084
Royal Oak Mines...................... (a) 33,000 107,250
Santa Fe Pacific Gold................ (a) 23,000 296,125
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
------------- -------------
MINING & METALS (CONTINUED) Southwestern Gold (a) 25,000 $ 200,606
TVX Gold............................. (a) 29,200 197,860
Vaal Reefs Exploration & Mining, A.D.R. 7,500 67,969
Vengold.............................. (a) 82,000 174,842
-------------
6,789,303
-------------
RETAIL TRADE--.5% K mart 11,000 143,000
-------------
TOTAL COMMON STOCKS
(cost $7,788,805).................... $ 7,880,563
=============
PREFERRED STOCK--0.8%
MINING & METALS; Freeport McMoRan Copper & Gold, Cl. A,
(cost $291,563)...................... 7,500 $ 247,500
=============
CONTRACTS
SUBJECT
PUT OPTIONS--2.9% TO PUT
-------------
Brokerage Basket;
November '95 @ $95................. (g) 21,930 $ 118,860
Standard & Poor's 500 Index Flex Options:
September '95 @ $450................. 4,500 65,250
December '95 @ $450.................. 11,000 187,000
Standard & Poor's 500 Index:
March '95 @ $450..................... 8,000 54,000
June '95 @ $450...................... 15,000 150,000
September '95 @ $450................. 12,000 168,000
December '95 @ $450.................. 4,000 62,000
March '96 @ $453................... (g) 4,547 85,520
-------------
TOTAL PUT OPTIONS
(cost $1,421,430).................... $ 890,630
=============
PRINCIPAL
BONDS--16.3% AMOUNT
-------------
FOREIGN: Austrian Securities;
Republic of Austria,
4.50%, 2/12/2000............... (c) $ 1,910,585 $ 1,866,259
German Securities;
Bundesrepublik Deutschland,
9%, 10/20/2000................. (d) 1,612,903 1,717,742
South African Securities;
Eskom,
11%, 6/1/2008.................. (e) 1,965,602 1,383,980
-------------
TOTAL BONDS
(cost $4,898,166).................... $ 4,967,981
=============
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
SHORT-TERM INVESTMENTS--53.1% AMOUNT VALUE
------------- -------------
U.S. GOVERNMENT
AGENCIES--26.2%Federal Home Loan Bank
5.78%, 1/5/95........................ $ 8,000,000 $ 7,994,862
-------------
U.S. TREASURY BILLS--26.9% 5.27%, 2/9/95 (f) 136,000 135,224
5.38%, 3/16/95......................... 8,154,000 8,063,826
-------------
8,199,050
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $16,193,912)................... $16,193,912
=============
TOTAL INVESTMENTS (cost $30,593,876) ................................ 98.9% $30,180,586
====== =============
CASH AND RECEIVABLES (NET) ......................................... 1.1% $ 328,936
====== =============
NET ASSETS.................................................................. 100.0% $30,509,522
====== =============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
December 31, 1994, these securities amounted to $106,521 or .3% of net
assets.
(c) Denominated in Swiss Francs.
(d) Denominated in German Marks.
(e) Denominated in South African Rand.
(f) Partially held by the custodian in a segregated account as
collateral for open financial futures positions.
(g) Securities restricted as to public resale. Investments in
restricted securities, with an aggregate market value of $204,380,
represents approximately .7% of net assets:
<TABLE>
<CAPTION>
ACQUISITION PURCHASE PERCENTAGE OF
PUT OPTIONS: DATE PRICE NET ASSETS VALUATION*
- ------------- ------------ ---------- --------------- ------------
<S> <C> <C> <C> <C>
Brokerage Basket**
November '95 @ $95....................... 11/11/94 $5.70 0.39 fair value
Standard & Poor's 500 Index
March '96 @ $453......................... 12/14/94 $21.99 0.28 fair value
</TABLE>
* The valuation of these securities has been determined in good faith
under the direction of the Board of Directors.
**Consists of Common Stocks of six publicly traded brokerage firms.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES DECEMBER 31, 1994
FINANCIAL FUTURES SOLD SHORT; MARKET VALUE UNREALIZED
NUMBER OF COVERED (DEPRECIATION)
ISSUER CONTRACTS BY CONTRACTS EXPIRATION AT 12/31/94
- ------ ------------ -------------- ------------- -------------
<S> <C> <C> <C> <C>
Standard & Poor's 500........................ 11 $(2,537,425) March '95 $(34,100)
</TABLE>
See notes to financial statements.
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
Dear Shareholder:
For the fiscal year ended December 31, 1994 the net asset value of the
Dreyfus Variable Investment Fund, Zero Coupon 2000 Portfolio was $11.39 per
share. The total return of your Portfolio for this period was -3.91%.*
Dividends paid from net investment income during the past year amounted to
approximately $.68 per share, representing a distribution rate per share of
5.99%, based on the December 31 closing net asset value per share, adjusted
for a capital gain distribution. The Portfolio's performance does not reflect
the deduction of additional charges applicable to separate accounts of
participating insurance companies that use the Portfolio as an underlying
investment.
We have just completed the most disappointing year for the bond market in
nearly 70 years. The total return on the five-year Treasury note for last
year was -4.284%. Going back as far as l926, this is the worst total return
recorded for the five-year Treasury note. Over the past year the Federal
Reserve Board tightened short-term interest rates six times. From the first
25 basis point tightening on February 4 until the last 1994 tightening on
November 15, the Federal Reserve has increased short-term rates by a total of
250 basis points. As a result, the 30-year Treasury bond went from a yield of
6.36% on February 4 to an 8.13% yield on November 18 -- a rate increase of
177 basis points.
During the course of the year, we bought securities for the Portfolio,
but made no sales. As we received net cash inflows into the Portfolio, we
held back from making purchases until we felt yields were attractive enough.
Once we felt the yields represented value, we deployed our cash, purchasing
zero coupon securities due in the year 2000.
Going forward, we continue to anticipate some additional volatility in
the market. We are currently awaiting a slight backup in rates before we
commit the balance of our cash to the market.
At this writing, there is still a possibility of at least one more
Federal Reserve tightening. We do believe that the stringent Federal Reserve
policies will be effective in curbing domestic inflation. We further believe
that current developments in the fixed income markets should prove rewarding
over time.
We look forward to serving your further investment needs.
Sincerely,
(Garitt A. Kono Signature Logo)
Garitt A. Kono
Portfolio Manager
January 19, 1995
New York, N.Y.
* Total return represents the change during the period in a
hypothetical account with dividends reinvested.
Source: Ibbotson Associates
DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, ZERO COUPON 2000 PORTFOLIO WITH THE MERRILL LYNCH U.S.
TREASURY COUPON 7-YEAR STRIPS INDEX
AND THE MERRILL LYNCH U.S. TREASURY COUPON 5-YEAR STRIPS INDEX
[Exhibit B]
*Source: Merrill Lynch Pierce, Fenner and Smith Inc.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- --------------------------
<S> <C> <C>
(3.91%) 10.55%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Zero Coupon 2000 Portfolio on 8/31/90 (Inception Date) to a
$10,000 investment made in the Merrill Lynch U.S. Treasury Coupon 7-Year
Strips Index and the Merrill Lynch U.S. Treasury Coupon 5-Year Strips Index
on that date. All dividends and capital gain distributions are reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Merrill Lynch U.S. Treasury Coupon 7-Year Strips Index and the M
errill Lynch U.S. Treasury Coupon 5-Year Strips Index are unmanaged zero
coupon indices with constant maturity and duration. The Indices do not take
into account charges, fees and other expenses. Further information relating
to Portfolio performance, including expense reimbursements, if any, is
contained in the Condensed Financial Information section of the Prospectus
and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
PRINCIPAL
BONDS AND NOTES--84.8% AMOUNT VALUE
------------- -------------
<S> <C> <C>
BANKING--3.0% CoreStates Capital,
Sub. Notes, 9 5/8%, 2001............. $ 200,000 $ 209,639
J.P. Morgan and Co.,
Sub. Notes, Zero Coupon, 1998........ 160,000 123,634
-------------
333,273
-------------
CONSUMER--1.3% News America Holdings (Gtd. by News),
Sr. Notes, 7 1/2%, 2000.............. 150,000 141,824
-------------
INDUSTRIAL--4.0% USX,
Deb., 9 1/8%, 2013................... 450,000 435,831
-------------
INSURANCE--1.2% SunAmerica,
Notes, 9%, 1999...................... 130,000 131,985
-------------
FOREIGN--.7% Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997..... 40,000 33,379
Montreal Urban Community,
Deb., 9 1/8%, 2001................... 40,000 41,504
-------------
74,883
-------------
OTHER--7.6% FICO Coupon Strips:
Ser.17, Zero Coupon, 4/5/2000........ 500,000 331,274
Zero Coupon, 10/6/2000............... 478,000 304,378
Ser. 1, Zero Coupon, 11/11/2000...... 150,000 94,779
Ser.10, Zero Coupon, 11/30/2000...... 152,000 95,645
-------------
826,076
-------------
U.S. GOVERNMENT
AND AGENCIES--67.0% Chattanooga Valley,
Secured First Mortgage, Zero Coupon, 1/1/2000 176,000 118,723
Federal National Mortgage Association,
Callable Principal Strips, Ser. 1:
Zero Coupon, 8/21/1996......... (a) 145,000 127,078
Zero Coupon, 10/10/2001.......... 400,000 339,250
Resolution Funding, Coupon Strips:
Zero Coupon, 7/15/2000............... 260,000 169,360
Zero Coupon, 10/15/2000.............. 2,830,000 1,812,406
U.S. Treasury Coupon Receipts,
Zero Coupon, 11/15/2000.............. 430,355 272,589
U.S. Treasury Coupon Strips,
Zero Coupon, 11/15/2000.............. 1,800,000 1,147,549
U.S. Treasury Principal Strips:
Zero Coupon, 8/15/2000............... 500,000 324,884
Zero Coupon, 11/15/2000.............. 4,700,000 2,996,377
-------------
7,308,216
-------------
TOTAL BONDS AND NOTES
(cost $9,933,455).................... $ 9,252,088
=============
DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF INVESTMENTS(CONTINUED) DECEMBER 31, 1994
PRINCIPAL
SHORT-TERM INVESTMENT--13.7% AMOUNT VALUE
------------- -------------
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
6 1/4%, 1/3/1995
(cost $1,501,478).................... $ 1,502,000 $ 1,501,478
=============
TOTAL INVESTMENTS (cost $11,434,933)........................................ 98.5% $10,753,566
====== =============
CASH AND RECEIVABLES (NET).................................................. 1.5% $ 159,883
====== =============
NET ASSETS.................................................................. 100.0% $10,913,449
====== =============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Zero coupon until 8/21/1996, date on which a stated coupon rate of
8.40% becomes effective; the stated maturity date is 2001.
See notes to financial statements.
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
Dear Shareholder:
The Dreyfus Variable Investment Fund, Quality Bond Portfolio completed
its fiscal year on December 31, 1994, having provided shareholders with a
distribution rate per share of 6.93%.* Based on the change in the Fund's net
asset value, with dividends reinvested, the total return of the Portfolio was
- - 4.59% for the year ended December 31, 1994.** Dividends paid from net
investment income amounted to $.73 per share. In addition there was a
short-term capital gain distribution of $.009 per share. The Portfolio's
performance does not reflect the deduction of additional charges applicable
to separate accounts of participating insurance companies using the Portfolio
as an underlying investment.
We have just completed the most disappointing year for the bond market in
nearly 70 years. The total return on the five-year Treasury note for last
year was - 4.284%. Going back as far as 1926, this is the worst total return
recorded for the five-year Treasury note. Over the past year, the Federal
Reserve Board tightened short-term interest rates six times. From the first
25 basis point tightening on February 4 until the last 1994 tightening on
November 15, the Federal Reserve has increased short-term rates by a total of
250 basis points. As a result, the 30-year Treasury bond went from a yield of
6.36% on February 4, to an 8.13% yield on November 18 - a rate increase of
177 basis points.
In years such as 1994, with periods of high market volatility and Federal
Reserve tightening, bond returns have oftentimes been negative. While your
Portfolio could not escape the general downward price trend, we are happy to
report that it had no exposure to derivatives and avoided the problems
associated with those instruments. While we did own small positions in
Mexican and Argentinean bonds, we were fortunate enough to sell them before
the Latin American crisis developed.
Going forward, we continue to anticipate some additional volatility in
the bond market. There is still a possibility of at least one more Federal
Reserve Board tightening. We do believe that the stringent Federal Reserve
policies will be effective in curbing domestic inflation. We further believe
that current interest rate levels should reflect value over a period of time.
We look forward to serving your further investment needs.
Sincerely,
(Garitt A. Kono Signature Logo)
Garitt A. Kono
Portfolio Manager
January 19, 1995
New York, N.Y.
* Distribution rate per share is based upon dividends per share paid
from net investment income during the period, divided by the net asset
value per share at the end of the period adjusted for capital gains
distributions.
** Total return represents the change during the period in a
hypothetical account with dividends reinvested.
Source: Ibbotson Associates
DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, QUALITY BOND PORTFOLIO AND THE MERRILL LYNCH DOMESTIC MASTER
INDEX (SUBINDEX D010)
[Exhibit C]
*Source: Merrill Lynch Pierce, Fenner and Smith Inc.
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- --------------------------
(4.59%) 8.80%
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Quality Bond Portfolio on 8/31/90 (Inception Date) to a
$10,000 investment made in the Merrill Lynch Domestic Master Index (Subindex
D010) on that date. All dividends and capital gain distributions are
reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Merrill Lynch Domestic Master Index (Subindex D010) is
frequently used as a performance benchmark for portfolios that include U.S.
Government, mortgage and investment-grade corporate securities rated A and
better. The Index does not take into account charges, fees and other
expenses. Further information relating to Portfolio performance, including
expense reimbursements, if any, is contained in the Condensed Financial Inform
ation section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
PRINCIPAL
BONDS AND NOTES--92.0% AMOUNT VALUE
------------- -------------
<S> <C> <C>
AEROSPACE--2.8% Boeing,
Deb., 7 1/4%, 2025................... $ 200,000 $ 170,717
McDonnell Douglas,
Notes, 8 1/4%, 2000.................. 200,000 195,719
-------------
366,436
-------------
BANKING--1.9% First Chicago, Sub. Notes:
8 1/4%, 2002......................... 15,000 14,609
6 7/8%, 2003......................... 100,000 89,042
NationsBank,
Sub. Notes, 6 1/2%, 2003............. 175,000 151,521
-------------
255,172
-------------
CONSUMER--2.3% News America Holdings (Gtd. by News):
Sr. Deb., 8 1/4%, 2018............... 100,000 88,542
Sr. Notes, 9 1/8%, 1999.............. 25,000 25,258
Rite Aid,
Sr. Deb., 6 7/8%, 2013............... 100,000 81,996
Time Warner,
Deb., 9.15%, 2023.................... 125,000 112,487
-------------
308,283
-------------
FINANCE--10.3% Ford Motor Credit,
Notes, 7 1/2%, 2004.................. 1,000,000 930,765
Heller Financial,
Floating Rate Notes, 5 15/16%, 1999 (a) 100,000 99,639
Merrill Lynch & Co.,
Notes, 8.30%, 2002................... 350,000 341,406
-------------
1,371,810
-------------
INDUSTRIAL--13.5% American Brands,
Deb., 8 5/8%, 2021................... 400,000 393,889
Eastman Kodak,
Deb., 9.95%, 2018.................... 400,000 454,966
Ford Motor,
Deb., 8 7/8%, 2022................... 400,000 407,129
USX,
Deb., 9 1/8%, 2013................... 550,000 532,683
-------------
1,788,667
-------------
INSURANCE--6.9% SunAmerica:
Deb., 9.95%, 2012.................... 13,000 14,063
Notes, 9%, 1999...................... 130,000 131,985
USF&G,
Sr. Notes, 8 3/8%, 2001.............. 800,000 766,032
-------------
912,080
-------------
DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
------------- -------------
FOREIGN--3.4% Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997..... $ 60,000 $ 50,068
Province of Quebec,
Deb., 8.80%, 2003.................... 400,000 405,068
-------------
455,136
-------------
OTHER--.7% City of New York,
General Obligation Bonds, Ser. D, 10%, 2007 25,000 25,594
FICO Coupon Strips,
Ser. 1, Zero Coupon, 5/11/2000....... 95,000 62,671
-------------
88,265
-------------
U.S. GOVERNMENT
AND AGENCIES--50.2% Federal National Mortgage Association,
Callable Principal Strips,
Ser. 1, Zero Coupon, 8/21/1996..... (b) 55,000 48,202
U.S. Treasury Bonds:
10 3/4%, 8/15/2005................... 100,000 120,141
11 1/4%, 2/15/2015................... 100,000 132,187
7 1/4%, 5/15/2016.................... 1,200,000 1,109,626
8%, 11/15/2021....................... 1,000,000 1,004,219
7 1/8%, 2/15/2023.................... 300,000 273,047
U.S. Treasury Notes:
7 1/4%, 8/31/1996.................... 230,000 228,634
7 1/4%, 11/30/1996................... 2,000,000 1,984,688
7 3/8%, 11/15/1997................... 1,000,000 989,531
8 1/2%, 11/15/2000................... 600,000 618,656
U.S. Treasury Principal Strips,
Zero Coupon, 5/15/2020............... 1,000,000 136,412
-------------
6,645,343
-------------
TOTAL BONDS AND NOTES
(cost $12,942,799)................... $12,191,192
=============
SHORT-TERM INVESTMENT--5.3%
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
6 1/4%, 1/3/1995
(cost $699,757)...................... $ 700,000 $ 699,757
=============
TOTAL INVESTMENTS (cost $13,642,556)........................................ 97.3% $12,890,949
====== =============
CASH AND RECEIVABLES (NET).................................................. 2.7% $ 353,190
====== =============
NET ASSETS.................................................................. 100.0% $13,244,139
====== =============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Variable rate security - interest rate subject to periodic change.
(b) Zero coupon until 8/21/96, date on which a stated coupon rate of
8.40% becomes effective; the stated maturity date is 2001.
See notes to financial statements.
<TABLE>
<CAPTION>
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
Dear Shareholder:
During 1994, both foreign and domestic stock markets experienced dramatic
fluctuations. Yet, as indicated below, the major indices were little changed
from the beginning of the year.*
SMALL CAP NASDAQ RUSSELL WILSHIRE S & P
PORTFOLIO COMPOSITE 2000 5000 500
-------------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR
12/31/93-12/31/94 + 7.75% - 3.20% - 1.82% - 2.52% + 1.31%
INCEPTION-TO-DATE
8/31/90-12/31/94 +723.77% + 97.26% + 93.19% + 48.70% + 62.18%
</TABLE>
The Portfolio's average annual total returns were 7.75%, 45.91% and 62.62%
for the one-year, three-year and since-inception periods ended December 31,
1994, respectively. The Portfolio's performance does not reflect the deduction
of additional charges applicable to separate accounts of participating
insurance companies using the Portfolio as an underlying investment.
Performance was more modest than in prior years for a number of reasons.
The significant growth in the Portfolio's assets under management has caused
us to diversify your holdings more broadly, thereby lowering the inherent
investment risk, especially in small company funds. While lowering risk, we
also lowered volatility. This aided the Portfolio's performance. As the
market recovers, and perhaps a new bull market develops, we will remain
diverse and thereby more closely resemble the returns of the Russell 2000.
In this past year, the Portfolio underweighted the financial service and
consumer sectors. It continued to emphasize the small companies in specialty
materials and capital goods industries which had their growth enhanced by
product offerings in foreign markets. At midyear, a number of technology
holdings were added to the Portfolio, as it became clear that managements
everywhere were seeking the enhanced productivity available from equipment
manufactured in the U.S.
Our most disappointing investments were in the energy sector, where warm
winter weather and large supplies of Canadian natural gas squashed prospects
for many producers. However, our selections have strong balance sheets, and
we will remain with them until the demand for energy picks up again.
We believe American consumers are likely to save more and spend less than
in the 1980s. However, the securities of many leading companies in the
consumer sector have dropped 30% or more from their highs and present strong
value. We anticipate a reconcentrated effort to find holdings in this sector.
Morningstar, Inc. has recognized the Portfolio by selecting your senior
manager as the Variable Fund Manager of the Year. They noted 1994 as the
Portfolio's "most impressive" period, wherein, through a difficult market we
defended your capital. I am deeply honored on behalf of our entire staff of
Sector Managers and Analysts. Their experience across the industrial spectrum
of our economy, and their ability to blend growth, sector, and special
situation investment opportunities has contributed to our goal of making your
porfolio an all-weather performer.
Sincerely,
(Thomas A. Frank Signature Logo)
Thomas A. Frank
Portfolio Manager
February 23, 1995
New York, N.Y.
* Sources: Lipper Analytical Services, Inc.; The Wall Street Journal;
The Russell Company. The Small Cap Portfolio, The Russell 2000, and the
S&P 500 reflect total return, which represents the change during the
period in a hypothetical account with dividends reinvested. The NASDAQ
Composite Index of Over-The-Counter Stocks and the Wilshire 5000 do not
reflect the reinvestment of dividends. All of the indices referenced are
widely accepted unmanaged indices of stock market performance.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND,
SMALL CAP PORTFOLIO AND THE RUSSELL 2000Registration Mark INDEX
[Exhibit D]
*Source: Lipper Analytical Services, Inc.
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (8/31/90)
DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- --------------------------
<S> <C> <C>
7.75% 62.62%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Small Cap Portfolio on 8/31/90 (Inception Date) to a $10,000
investment made in the Russell 2000Registration Mark Index on that date. All
dividends and capital gain distributions are reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Russell 2000Registration Mark Index is an unmanaged index and
is composed of the 2,000 smallest companies in the Russell 3000Registration
Mark Index. The Russell 3000Registration Mark Index is composed of 3,000 of
the largest U.S. companies by market capitalization. The Index does not take
into account charges, fees and other expenses. Further information relating
to Portfolio performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus
and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
COMMON STOCKS--70.2% SHARES VALUE
-------------- --------------
<S> <C> <C>
CONSUMER
NON-DURABLE--6.4% Bush Boake Allen......................... 155,000 $ 4,185,000
Canandaigua Wine, Cl. A.............. (a) 75,000 2,850,000
Eskimo Pie............................. 95,000 1,781,250
Norton McNaughton...................... 150,000 2,287,500
-------------
11,103,750
-------------
CONSUMER SERVICES--1.7% Au Bon Pain, Cl. A (a) 190,000 3,040,000
-------------
ENERGY--6.8% Cairn Energy USA (a) 200,000 1,625,000
Coda Energy.......................... (a) 350,000 2,100,000
Cross Timbers Oil...................... 105,000 1,575,000
Global Industries.................... (a) 50,000 1,143,750
Hornbeck Offshore Services........... (a) 150,000 1,875,000
International Colin Energy........... (a) 175,000 1,203,125
Optima Petroleum..................... (a) 150,000 592,980
Tide West Oil........................ (a) 157,500 1,594,688
Unit................................. (a) 44,800 134,400
-------------
11,843,943
-------------
FINANCIAL--8.0% Dime Bancorp (a) 175,000 1,356,250
Executive Risk......................... 131,000 1,866,750
FirstFed Michigan...................... 145,000 2,972,500
Fremont General........................ 73,400 1,715,725
Hibernia, Cl. A........................ 325,000 2,518,750
Presidential Life...................... 140,000 735,000
Western National....................... 210,000 2,703,750
-------------
13,868,725
-------------
HEALTH CARE--9.2% Advantage Health (a) 37,500 1,190,625
Coram Healthcare....................... 70,000 1,155,000
Corvel............................... (a) 112,500 3,121,875
FPA Medical Management................. 75,000 937,500
Horizon Healthcare................... (a) 95,000 2,660,000
National Health Laboratories Holdings.. 225,000 2,981,250
Ramsay Health Care................... (a) 125,000 812,500
Universal Health Services, Cl. B..... (a) 125,000 3,062,500
-------------
15,921,250
-------------
NON-ENERGY MINERALS--2.5% Cleveland-Cliffs 70,000 2,590,000
IMCO Recycling......................... 111,100 1,680,387
-------------
4,270,387
-------------
PROCESS INDUSTRIES--7.9% Albany International, Cl. A 125,000 2,406,250
Ferro.................................. 150,000 3,581,250
Longview Fibre......................... 125,000 1,968,750
OM Group............................... 135,000 3,240,000
Schulman (A.).......................... 90,000 2,475,000
-------------
13,671,250
-------------
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
PRODUCER
MANUFACTURING--8.4% Andros................................. (a) 100,000 $ 1,650,000
Apogee................................. 165,000 2,887,500
Applied Power, Cl. A................... 75,000 1,903,125
Central Tractor Farm & Country......... 100,000 1,450,000
Flair.................................. 35,000 665,000
Greenfield Industries.................. 50,000 1,200,000
Moorco International................... 67,300 992,675
Roper Industries....................... 90,000 2,272,500
Titan Wheel International.............. 31,000 860,250
Wyman-Gordon......................... (a) 100,000 625,000
-------------
14,506,050
-------------
RETAIL TRADE--1.7% Genovese Drug Stores, Cl. A 61,000 693,875
Talbots................................ 70,000 2,187,500
-------------
2,881,375
-------------
TECHNOLOGY--15.0% Aspen Technology 125,000 2,453,125
Glenayre Technologies................ (a) 57,500 3,320,625
International Rectifier.............. (a) 135,000 3,273,750
LSI Logic............................ (a) 50,000 2,018,750
Rohr................................. (a) 175,000 1,815,625
Sierra On-Line....................... (a) 90,000 3,082,500
SoftKey International.................. 95,000 2,422,500
Spectrum HoloByte...................... 40,000 540,000
Sybase............................... (a) 35,000 1,820,000
Thermedics........................... (a) 150,000 1,912,500
Veeco Instruments...................... 190,000 1,923,750
Xilinx............................... (a) 25,000 1,481,250
-------------
26,064,375
-------------
TRANSPORTATION--1.6% U.S. Delivery Systems 72,500 996,875
Werner Enterprises..................... 75,000 1,781,250
-------------
2,778,125
-------------
UTILITIES--1.0% IntelCom Group (a) 125,000 1,656,250
-------------
TOTAL COMMON STOCKS
(cost $115,862,706).................. $121,605,480
=============
PRINCIPAL
SHORT-TERM INVESTMENTS--35.7% AMOUNT
--------------
U.S. TREASURY BILLS: 4.90%, 1/12/95 $ 747,000 $ 745,882
5.00%, 1/19/95......................... 1,006,000 1,003,485
5.10%, 1/26/95......................... 12,677,000 12,632,116
5.11%, 2/2/95.......................... 6,005,000 5,977,728
5.27%, 2/9/95.......................... 959,000 953,525
5.23%, 2/16/95......................... 1,042,000 1,035,036
5.18%, 3/2/95.......................... 2,109,000 2,090,792
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
SHORT-TERM INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
U.S. TREASURY BILLS (CONTINUED): 5.33%, 3/9/95 $ 17,088,000 $ 16,918,608
5.39%, 3/16/95......................... 20,614,000 20,385,452
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $61,742,624)................... $ 61,742,624
=============
TOTAL INVESTMENTS (cost $177,605,330)....................................... 105.9% $183,348,104
====== =============
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (5.9%) $ (10,133,103)
====== =============
NET ASSETS.................................................................. 100.0% $173,215,001
====== =============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
Dear Shareholder:
Although the S&P 500 Composite Stock Price Index showed little change at
the close of 1994, this masked considerable corrections among many sectors
and individual issues. Performance of fixed-income securities was the weakest
in decades, and many emerging market indices and related mutual funds had
negative returns. The total return of the Dreyfus Variable Investment Fund,
Capital Appreciation Portfolio for the year ended December 31, 1994 was
3.04%,* which compared to 1.31% for the S&P 500 Composite Stock Price
Index.** We are gratified to be able to report positive performance results
in an uncertain and difficult market environment. The Portfolio's performance
does not reflect the deduction of additional charges applicable to separate
accounts of participating insurance companies that use the Portfolio as an
underlying investment.
OUR VIEWS ON EQUITY MARKETS
Equity markets were undermined throughout 1994 by rising interest rates,
which made fixed-income investments appear increasingly attractive compared
to returns available from equities. Uncertainty as to the timing and extent
of future monetary tightening will continue to weigh on equity markets until
it is clear that growth is decelerating across the economy. Corporate profits
may weaken somewhat, but we expect stable earnings growth among the high
quality, globally prominent companies in the Portfolio. Many of these
companies repurchased their own shares last year and, as a testament to
management's assessment of underlying value, repurchase activity was at
record levels. Given the ongoing cash flows from these stable businesses, we
expect repurchase activity to continue at high levels in 1995. From a
long-term investment perspective, we remain optimistic on
equity markets. Our economic outlook also supports the Portfolio's strategy
to focus on U.S. domiciled companies -- with global presence as leaders in
production, distribution and market share of branded proprietary products,
technologies, franchises and services. In our view, this approach has less
inherent risk than investing directly in emerging markets where inflated
capital flows in either direction, and misguided policies can distort
economic and market fundamentals. The recent devaluation of the peso and
sharp declines in the Mexican and other Latin American markets appears to
validate this stance.
HOW VARIOUS SECTORS PERFORMED
The Portfolio had approximately 26.1% in cash and short-term investments
at year-end. This relatively high cash position reflects our conservative
approach to making new investments in the uncertain market environment that
we expect will continue in the early part of 1995. The Portfolio had industry
concentrations in consumer non-durables, technology and health care. These
three industry groups led the S&P 500 Composite Stock Price Index and
considerably outperformed it during 1994. Our strategy to focus the Portfolio
in these sectors supported its performance in excess of the Index. Energy
holdings also contributed quite positively to performance. Shares of
Coca-Cola, Philip Morris, Gillette and Proctor & Gamble led the consumer
non-durables sector which was the strongest in the Portfolio. The health care
sector had the second most positive impact, led by the performance of Merck &
Co., Pfizer and Johnson & Johnson. Holdings in Motorola, General Electric and
Mobil led the performance in the technology and energy sectors.
AN EMPHASIS ON QUALITY
Since the final quarter of 1993, as liquidity peaked and it became clear
that monetary policy would become more restrictive, investor sentiment has
turned in favor of the high quality holdings in the Portfolio - particularly
in health care and consumer non-durables. These companies have benefitted
from merger and buyout activity as corporations strive to better position
themselves as more globally viable competitors. In several cases a 50%
premium has been paid by the acquiring company. We believe this trend will
continue. This further supports our view that many leading U.S. companies,
such as many of those in the portfolio, remain undervalued -- particularly as
measured in terms of an undervalued currency.
We appreciate your investment in the Portfolio and look forward to
serving your investment needs in the future.
Sincerely,
(Fayez Sarofim Signature Logo)
Fayez Sarofim
Portfolio Manager
January 19, 1995
Houston, TX
* Total return represents the change during the period in a
hypothetical account with dividends reinvested.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects reinvestment of
income dividends and, where applicable, capital gain distributions.
Unlike the Portfolio, the S&P 500 is an unmanaged index of domestic stock
market performance.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, CAPITAL APPRECIATION PORTFOLIO AND THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX
[Exhibit E]
*Source: Lipper Analytical Services, Inc.
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (4/5/93)
DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- --------------------------
<S> <C> <C>
3.04% 5.61%
</TABLE>
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment made in Dreyfus Variable
Investment Fund, Capital Appreciation Portfolio on 4/5/93 (Inception Date) to
a $10,000 investment made in the Standard & Poor's 500 Composite Stock Price
Index on that date. For comparative purposes, the value of the Index on
3/31/93 is used as the beginning value on 4/5/93. All dividends and capital
gain distributions are reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Standard & Poor's 500 Composite Stock Price Index is a widely
accepted,unmanaged index of overall stock market performance which does not
take into account charges, fees and other expenses. Further information
relating to Portfolio performance, including expense reimbursements, if
applicable, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
COMMON STOCKS--70.9% SHARES VALUE
------------- -------------
<S> <C> <C> <C>
AEROSPACE
& ELECTRONICS--6.4% Emerson Electric......................... 2,000 $ 125,000
General Electric....................... 12,050 614,550
Motorola............................... 3,050 176,519
Texas Instruments...................... 1,600 119,800
-------------
1,035,869
-------------
AUTO RELATED--1.5% Chrysler 5,000 245,000
-------------
BANKING--3.0% Banc One 1,800 45,675
Citicorp............................... 8,525 352,722
KeyCorp................................ 1,800 45,000
PNC Bank............................... 1,800 38,025
-------------
481,422
-------------
CAPITAL GOODS--.2% Cooper Industries 1,000 34,125
-------------
CHEMICALS--5.7% Dow Chemical 6,000 403,500
duPont (E.I.) de Nemours............... 6,000 337,500
Rohm & Haas............................ 3,000 171,375
-------------
912,375
-------------
ENERGY--6.3% Chevron 5,500 245,437
Exxon.................................. 4,025 244,519
Mobil.................................. 3,025 254,856
Royal Dutch Petroleum.................. 2,500 268,750
-------------
1,013,562
-------------
FINANCE-MISCELLANEOUS--3.3%. American General 3,000 84,750
Federal National Mortgage Association.. 3,500 255,063
HSBC Holdings PLC...................... 2,400 25,902
HSBC Holdings PLC, A.D.R............... 1,000 108,500
Merrill Lynch.......................... 1,800 64,350
-------------
538,565
-------------
FOOD,
BEVERAGE & TOBACCO--14.1% Anheuser-Busch Cos....................... 700 35,612
Coca-Cola.............................. 15,000 772,500
General Mills.......................... 600 34,200
Kellogg................................ 2,000 116,250
Nestle, A.D.R.......................... 1,000 47,625
PepsiCo................................ 9,000 326,250
Philip Morris Cos...................... 11,500 661,250
Sara Lee............................... 2,500 63,125
Seagram................................ 7,500 221,250
-------------
2,278,062
-------------
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
------------- -------------
HEALTH CARE--9.5% Abbott Laboratories 3,000 $ 97,875
Amgen................................ (a) 2,500 147,500
Johnson & Johnson...................... 7,050 385,987
Merck & Co............................. 12,000 457,500
Pfizer................................. 4,550 351,487
Roche Holdings A.D.S................... 2,000 95,875
-------------
1,536,224
-------------
MEDIA/ENTERTAINMENT--2.5% McGraw-Hill 2,000 133,750
News Corp. A.D.S....................... 5,000 78,125
Reader's Digest Association, Cl. A..... 4,000 196,500
-------------
408,375
-------------
MULTI INDUSTRY--3.2% AlliedSignal 5,000 170,000
Minnesota Mining & Manufacturing....... 6,500 346,938
-------------
516,938
-------------
OFFICE & BUSINESS
EQUIPMENT--2.2% AT&T 5,500 276,375
Ericsson (LM) Telephone, Cl. B, A.D.R.. 800 44,100
MCI Communications..................... 1,800 33,075
-------------
353,550
-------------
PERSONAL CARE--5.0% Colgate-Palmolive 1,000 63,375
Gillette............................... 4,500 336,375
Procter & Gamble....................... 5,500 341,000
Unilever, N.V.......................... 500 58,250
-------------
799,000
-------------
PERSONNEL SERVICES--.7% Block (H & R) 3,000 111,375
-------------
PHOTOGRAPHY--1.3% Eastman Kodak 4,500 214,875
-------------
RETAIL--3.6% May Department Stores 6,000 202,500
Toys R Us.............................. (a) 2,950 89,975
Wal-Mart Stores........................ 7,000 148,750
Walgreen............................... 3,000 131,250
-------------
572,475
-------------
TRANSPORTATION--2.4% Norfolk Southern 4,000 242,500
Union Pacific.......................... 3,000 136,875
-------------
379,375
-------------
TOTAL COMMON STOCKS
(cost $11,259,865)................... $11,431,167
=============
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PREFERRED STOCKS--2.8% SHARES VALUE
------------- -------------
AUTO RELATED--2.6% Ford Motor, Ser. A, Cum. Conv., $4.20 4,500 $ 414,000
-------------
MEDIA/ENTERTAINMENT--.2% News Corp. 2,500 34,688
-------------
TOTAL PREFERRED STOCKS
(cost $445,524)...................... $ 448,688
=============
PRINCIPAL
SHORT-TERM INVESTMENTS--25.6% AMOUNT
-------------
U.S. TREASURY BILLS: 4.75%,2/2/1995 $ 21,000 $ 20,909
4.95%,3/2/1995......................... 202,000 200,152
4%,3/9/1995............................ 3,642,000 3,604,597
4.91%,3/16/1995........................ 305,000 301,556
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $4,127,214).................... $ 4,127,214
=============
TOTAL INVESTMENTS (cost $15,832,603)........................................ 99.3% $16,007,069
====== =============
CASH AND RECEIVABLES (NET)................................................... .7% $ 111,228
====== =============
NET ASSETS................................................................... 100.0% $16,118,297
====== =============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
Dear Shareholder:
From the commencement of operations of the Dreyfus Variable Investment
Fund, Growth and Income Portfolio on May 2, 1994 until the fiscal year-end on
December 31, 1994, the total return was -1.22%.* This compares with a return
of 3.97% for the Standard and Poor's 500 Composite Stock Price Index for the
last eight months of 1994.** The Portfolio's performance does not reflect the
deduction of additional charges applicable to separate accounts of
participating insurance companies using the Portfolio as an underlying
investment.
There were several reasons the performance of the Growth and Income
Portfolio was less than that of the stock market. The Portfolio was not fully
invested during the stock market rally which occurred late in the year. It
was underweighted in the technology sector of the market which led the rally.
At the same time, the Portfolio's energy stocks were vulnerable to a period
of weakness that occurred in natural gas prices.
The year 1994 was characterized by a number of major trends. There was a
simultaneous worldwide economic expansion. Economic growth continued in the
countries which had begun their recoveries early (U.S., Canada, U.K.,
Australia, non-Japanese Asia and parts of Latin America). Economic expansion
emerged in countries which had previously lagged--notably in Continental
Europe. One effect of this simultaneous expansion was an upsurge in
industrial commodity prices.
In the U.S. financial markets, short-term interest rates began a
persistent uptrend in February 1994. The short-term rate rise was triggered
by strong economic growth and the Federal Reserve Board's actions to restrain
it, in an effort to diminish inflationary pressures. This was accompanied by
a major long-term rate rise over the course of the year. Long-term bond
yields rose from excessively low levels, reached in late 1993, as the U.S.
economy grew at an above-trend pace and short-term rates increased. By
year-end, real yields (yields minus the inflation rate) had risen
substantially.
The stock market had a basically neutral trend over the course of 1994.
Pressure placed on price earnings multiples by the rise in interest rates was
offset by a rise in earnings. In this market cycle, the greatest speculation
occurred in the emerging stock markets. As a result, the negative effects of
higher U.S. interest rates in 1994 were felt more severely in these markets,
such as Hong Kong and Mexico, than they were in the U.S.
The Growth and Income Portfolio is able to invest in a variety of
securities, including common stocks, convertible bonds, convertible preferred
stocks and straight bonds, both in the U.S. and abroad. The Portfolio was
approximately 67% invested on December 31, 1994, with 55% invested in common
stocks and 12% invested in convertible securities.
In managing your Portfolio, we intend to shift the proportions invested
in stocks, convertible securities and bonds as market conditions dictate. We
intend to vary the composition of the equity portion of the Portfolio among
the stocks of small, medium-sized and large companies, depending on where we
believe the best opportunities lie. Similarly, we will shift the mix of
stocks among different industries depending on our expectations for different
sectors.
We welcome your investment in this Portfolio and will attempt to generate
a favorable yield and provide opportunities for growth in net asset value
over time.
Very truly yours,
(Richard B. Hoey Signature Logo)
Richard B. Hoey
Portfolio Manager
February 17, 1995
New York, N.Y.
* Total return represents the change during the period in a
hypothetical account with dividends reinvested.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the
reinvestment of income dividends and, where applicable, capital gain
distributions. The Standard & Poor's 500 Composite Stock Price Index is a
widely accepted unmanaged index of stock market performance.
DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, GROWTH AND INCOME PORTFOLIO AND THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX
[Exhibit F]
*Source: Lipper Analytical Services, Inc.
ACTUAL AGGREGATE TOTAL RETURN
From Inception (5/2/94) to December 31, 1994............. (1.22%)
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment in Dreyfus Variable Investment
Fund, Growth and Income Portfolio on 5/2/94 (Inception Date) to a $10,000
investment made in the Standard & Poor's 500 Composite Stock Price Index on
that date. For comparative purposes, the value of the Index on 4/30/94 is
used as the beginning value on 5/2/95. All dividends and capital gain
distributions are reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Standard & Poor's 500 Composite Stock Price Index is a widely
accepted, unmanaged index of overall stock market performance which does not
take into account charges, fees and other expenses. Further information
relating to Portfolio performance, including expense reimbursements, if
applicable, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Growth & Income Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
COMMON STOCKS--55.0% SHARES VALUE
------------ ------------
<S> <C> <C>
BASIC INDUSTRIES--4.1% Minnesota Mining & Manufacturing 800 $ 42,700
------------
CAPITAL GOODS--6.3% Albany International, Cl. A 1,400 26,950
Methanex............................. (a) 3,000 38,812
------------
65,762
------------
ENERGY--11.7% Coastal 1,200 30,900
Schlumberger........................... 1,000 50,375
UGI.................................... 2,000 40,750
------------
122,025
------------
FINANCIAL-BROKERAGE--4.0% Bank of Boston 1,600 41,400
------------
MANUFACTURING--3.4% Premark International 800 35,800
------------
MEDICAL SUPPLIES--4.6% DENTSPLY International 1,500 47,250
------------
TELECOMMUNICATIONS--14.6% AT&T 800 40,200
GTE.................................... 1,200 36,450
IntelCom Group....................... (a) 3,000 39,750
US West................................ 1,000 35,625
------------
152,025
------------
TRANSPORTATION--2.9% Canadian Pacific 2,000 30,000
------------
UTILITIES-ELECTRIC POWER--3.4% Entergy 1,600 35,000
------------
TOTAL COMMON STOCKS
(cost $611,293)...................... $ 571,962
============
CONVERTIBLE PREFERRED STOCKS-12.2%
ELECTRICAL & ELECTRONICS--3.9% Cooper Industries, Cum., $1.60 2,000 $ 41,000
------------
REAL ESTATE--4.0% Tanger Factory Outlet Centers, Cum., $1.66 2,000 41,250
------------
RETAILERS-MERCHANDISING--4.3% Sears, Roebuck & Co., Ser. A, $3.75 800 44,500
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $130,436)...................... $ 126,750
============
PRINCIPAL
SHORT-TERM INVESTMENTS--37.1% AMOUNT
------------
U.S. TREASURY BILLS; 4.91%, 3/16/1995
(cost $385,597)...................... $ 390,000 $ 385,597
============
TOTAL INVESTMENTS (cost $1,127,326)......................................... 104.3% $1,084,309
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (4.3%) $ (44,415)
====== ============
NET ASSETS.................................................................. 100.0% $1,039,894
====== ============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
LETTER TO SHAREHOLDERS
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
Dear Shareholder:
There has been considerable turmoil in the world equity markets during
the eight-month life of your Dreyfus Variable Investment Fund, International
Equity Portfolio. Inevitably, your Portfolio was not entirely immune to the
factors that depressed many markets around the globe.
From its inception on May 2, 1994 to December 31, 1994, the Dreyfus
Variable Investment Fund, International Equity Portfolio produced a total
return of -2.00%.* This compared with a total return of -.10% for the Morgan
Stanley Capital International Europe, Australasia and Far East Index (EAFE)(R)
** and -2.42% for the average of all international equity funds tracked by
Lipper Analytical Services, Inc. The Portfolio's performance does not reflect
the deduction of additional charges applicable to separate accounts of
participating insurance companies using the Portfolio as an underlying
investment.
INTERNATIONAL EQUITY MARKETS
The seeds of the 1994 bear market were sown in February, before the
inception of your International Equity Portfolio, when the U.S. Federal
Reserve Board began its policy of raising interest rates. The Fed's measures
to head off U.S. inflation caused weakness in virtually all the world's bond
and equity markets for the first half of the year. In the third calendar
quarter, a rally developed in most markets and the asset value of your
Portfolio rose to $13.22 per share -- nearly 6% higher than its $12.50 net
asset value at inception.
When the rally in U.S. bond prices faltered, however, so did the
improvement in equities. In certain markets, the general drift of early Fall
turned into somewhat of a rout by year-end. In the East, Hong Kong collapsed
under anxiety over U.S. interest rates, real estate pricing and the
uncertainties of Chinese politics. Its neighboring Asian markets were dragged
down in sympathy. In the West, Mexico dramatically and drastically devalued
under the burden of its current account deficit. A domino effect brought down
the South American stock markets as well as Mexico's own.
Against this background, a modest reduction in net asset value was to be
expected. The Portfolio's return of -2.00% was slightly better than the
average performance of all international equity funds measured by Lipper
Analytical Services, Inc. The fact that your Portfolio did not quite keep up
with the Morgan Stanley EAFE(R) cannot be ascribed to any one factor, but is
a result of having been underweighted compared to the huge Japanese content
in the Morgan Stanley EAFE(R) and slightly overweighted compared with the
minimal contribution of secondary or emerging markets in that index.
PORTFOLIO COMPOSITION
Hedging against currency risk is one of the basic strategies of the
International Equity Portfolio. Since its inception, we have made forward
sales of Japanese Yen to protect the performance of the underlying
investments in that country, in the event the U.S. dollar strengthened from
its undervalued level. At year-end, the amount of Yen sold forward
represented about one-third of the value of the Japanese stock portfolio and
there has been no gain or loss so far on the transaction.
Among world markets, Singapore, Australia, Switzerland and the
Netherlands were among the significant positive performers during the period
under review. Overall performance was not helped, however, by the extremely
poor results from Hong Kong, Mexico, France and Spain. Fortunately, none
amounted to a very large proportion of the Portfolio and some above average
stock selections mitigated against greater losses.
Currently Japan, where an economic recovery appears at last to be
underway, accounts for just under 25% of the Portfolio. During the eight
months under review, the Japanese market was virtually unchanged in dollar
terms, but this was a small improvement on the Morgan Stanley EAFE(R) Index
or indeed the Portfolio as a whole. The next largest area of investment is
the United Kingdom, at about 13% of the total, and the outlook there for 1995
corporate profits and dividends appears very encouraging.
OUR OUTLOOK
We continue to favor the world's lagging economies where there still
appears to be plenty of time and capacity for expansion. This inevitably
throws us principally towards the economies of Japan and Continental Europe,
and then perhaps South Africa and India. All of these economies are improving
but still behind the general pack, of which the U.S.A. is firmly in the lead.
For high noncyclical growth, however, the "tiger" markets of the Far East
remain conspicuous and with cash reserves of around 15% at year-end, your
Portfolio is in a good position to take advantage of the severe falls in
these and other stock markets.
The world economy continues to expand apace. Though admittedly there are
countries such as the U.S. where the spread between supply and demand may
have narrowed too much for prolonged inflationless expansion, there are many
others that are earlier in the cycle and should have many years of expanding
production and profitability ahead of them.
Sincerely,
(Paul D.A. Nix Signature Logo)
Paul D.A. Nix
Portfolio Manager
International Equity Portfolio
Director, M & G Investment Management, Ltd.
January 19, 1995
London, U.K.
* Total return represents the change during the period in a
hypothetical account with dividends reinvested.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Morgan Stanley
Capital International Europe, Australasia, Far East (EAFE(R)) Index is an
unmanaged index composed of a sample of companies representative of the
market structure of European and Pacific Basin countries. The return
indicated includes net dividends reinvested. The Index is the property of
Morgan Stanley & Co., Incorporated. Lipper Analytical Services, Inc.
provides nearest month-end figures (in this case, April 29, 1994 through
December 31, 1994) for comparing the various indexes to Portfolio
performance.
SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Average total return for
all funds in the International Equity funds category reflect reinvestment
of distributions. Lipper Analytical Services, Inc. provides nearest
month-end figures (in this case, April 29, 1994 through December 31,
1994). The Portfolio's share price and yield fluctuate.
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS VARIABLE
INVESTMENT FUND, INTERNATIONAL EQUITY PORTFOLIO AND THE MORGAN STANLEY
CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (EAFE(Registration Mark))
INDEX
[Exhibit G]
*Source: Lipper Analytical Services, Inc.
ACTUAL AGGREGATE TOTAL RETURN
From Inception (5/2/94) to December 31, 1994............... (2.00%)
Past performance is not predictive of future performance.
THE PORTFOLIO'S PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ADDITIONAL
CHARGES APPLICABLE TO SEPARATE ACCOUNTS OF PARTICIPATING INSURANCE COMPANIES
USING THE PORTFOLIO AS AN UNDERLYING INVESTMENT.
The above graph compares a $10,000 investment in Dreyfus Variable Investment
Fund, International Equity Portfolio on 5/2/94 (Inception Date) to a $10,000
investment made in the Morgan Stanley Capital International Europe,
Australasia, Far East (EAFERegistration Mark) Index on that date. For
comparative purposes, the value of the Index on 4/30/94 is used as the
beginning value on 5/2/94. All dividends and capital gain distributions are
reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Morgan Stanley Capital International Europe, Australasia, Far
East (EAFERegistration Mark) Index, which is the property of Morgan Stanley &
Co. Incorporated, is an unmanaged index composed of a sample of companies
representative of the market structure of European and Pacific Basin
countries and includes net dividends reinvested. Further information
relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report..
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
COMMON STOCKS--83.2% SHARES VALUE
------------ ------------
<S> <C> <C> <C>
AUSTRALIA-- 5.0% Commonwealth Bank of Australia 2,500 $ 15,433
Mayne Nickless......................... 2,800 14,331
Newcrest Mining........................ 5,500 24,525
------------
54,289
------------
AUSTRIA-- 1.3% Burgenland Holding 400 14,509
------------
FRANCE-- 8.1% BUT S.A. 100 16,579
Naf Naf S.A............................ 315 12,392
Naf Naf S.A. (Warrants).............. (a) 35 74
Renault S.A............................ 370 12,234
Roussel Uclaf S.A...................... 210 25,139
Vallourec Usines a Tubes de Lorraine Escaut
et Vallourec Reunies............... (a) 450 21,750
------------
88,168
------------
GERMANY-- 2.6% BASF AG 75 15,460
Continental AG......................... 90 13,122
------------
28,582
------------
HONG KONG-- 3.6% China Light & Power 4,000 17,061
HSBC Holdings PLC...................... 2,000 21,585
------------
38,646
------------
JAPAN-- 22.9% Amway Japan 1,000 34,421
East Japan Railway..................... 4 19,990
Honda Motor............................ 1,000 17,762
Mitsubishi Bank........................ 1,000 24,586
Mitsui Fudosan......................... 1,000 10,637
NGK Spark Plug......................... 2,000 26,292
Nippon Telegraph & Telephone........... 2 17,682
Sony................................... 500 28,349
Tokio Marine & Fire Insurance.......... 1,000 12,243
Toshoku................................ 3,300 22,320
Ushio.................................. 3,000 34,621
------------
248,903
------------
MALAYSIA-- 3.6% Leader Universal Holdings Berhad 6,666 21,392
Renong Berhad.......................... 14,000 17,311
------------
38,703
------------
MEXICO-- 3.6% Cemex S.A., Cl.B, A.D.R. 1,181 12,105
Grupo Carso S.A., Ser.B, A.D.R. ... (a,b) 800 11,600
Panamerican Beverages, Cl. A........... 500 15,813
------------
39,518
------------
NETHERLANDS-- 2.3% Philips Electronics 850 25,182
------------
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
------------ ------------
SINGAPORE--2.3% Keppel 3,000 $ 25,514
------------
SOUTH AFRICA--4.0% Premier Group Holdings 15,000 19,349
South African Breweries................ 1,000 23,649
------------
42,998
------------
SPAIN--5.1% Banco Bilbao Vizcaya S.A. 870 21,585
Iberdrola S.A.......................... 2,900 17,894
Repsol S.A............................. 600 16,276
------------
55,755
------------
SWITZERLAND--6.3% Baloise Holdings 20 36,377
Baloise Holdings (Warrants).......... (a) 20 176
Elektrowatt AG......................... 120 31,731
------------
68,284
------------
UNITED KINGDOM--12.5% BAT Industries PLC 3,000 20,285
Booker PLC............................. 3,500 21,938
British Steel PLC...................... 9,000 21,930
Lucas Industries PLC................... 7,000 22,596
Royal Doulton PLC...................... 5,500 21,977
Zeneca Group PLC....................... 2,000 27,485
------------
136,211
------------
TOTAL COMMON STOCKS
(cost $919,899)...................... $ 905,262
============
PREFERRED STOCK--1.0%
GERMANY; Herlitz AG
(cost $14,543)....................... 65 $ 11,113
============
PRINCIPAL
SHORT-TERM INVESTMENTS--10.0% AMOUNT
------------
UNITED STATES; U.S. Treasury Bills:
4.85%, 2/9/95........................ $ 13,000 $ 12,932
5.30%, 3/9/95........................ 97,000 96,043
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $108,975)...................... $ 108,975
============
TOTAL INVESTMENTS (cost $1,043,417)......................................... 94.2% $1,025,350
====== ============
CASH AND RECEIVABLES (NET).................................................. 5.8% $ 63,229
====== ============
NET ASSETS.................................................................. 100.0% $1,088,579
====== ============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1994, this security amounted to $11,600 or 1.1% of net assets.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
MONEY MANAGED ZERO COUPON QUALITY
MARKET ASSETS 2000 BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
[cost_Note 4(b)]_see statement....... $35,249,652 $30,180,586 $10,753,566 $12,890,949
Cash................................... 231,532 219,408 91,573 137,083
Dividends and interest receivable...... 48,986 130,888 36,528 188,433
Receivable for futures variation margin_Note 4(a) -- 17,875 -- --
_
Prepaid expenses and other assets...... 4,446 4,372 4,462 4,321
Due from The Dreyfus Corporation....... 82,227 -- 51,830 51,163
------------- ------------- ------------- -------------
35,616,843 30,553,129 10,937,959 13,271,949
------------- ------------- ------------- -------------
LIABILITIES:
Due to The Dreyfus Corporation......... $ -- $ 11,223 $ -- $ --
Payable for shares of Beneficial Interest redeemed 844,089 -- 785 594
Accrued expenses and other liabilities. 44,351 32,384 23,725 27,216
------------- ------------- ------------- -------------
888,440 43,607 24,510 27,810
------------- ------------- ------------- -------------
NET ASSETS ..................... $34,728,403 $30,509,522 $10,913,449 $13,244,139
============= ============= ============= =============
REPRESENTED BY:
Paid-in capital........................ $34,722,439 $30,808,212 $11,592,449 $14,092,165
Accumulated undistributed investment
income_net........................... 5,895 -- 2,786 4,797
Accumulated distributions in excess of
investment income_net................ -- (48,981) -- --
Accumulated undistributed net realized gain
(loss) on investments and foreign
currency transactions................ 69 197,455 (419) (101,216)
Accumulated net unrealized (depreciation) on
investments and foreign currency transactions
[including $(34,100) net unrealized
(depreciation) on financial futures for
Managed Assets Portfolio]_Note 4(b).. -- (447,164) (681,367) (751,607)
------------- ------------- ------------- -------------
NET ASSETS at value, applicable to outstanding
shares of Beneficial Interest.......... $34,728,403 $30,509,522 $10,913,449 $13,244,139
============= ============= ============= =============
SHARES OUTSTANDING (unlimited number of
$.001 par value shares authorized for each series) 34,722,439 2,466,347 957,822 1,257,435
============= ============= ============= =============
NET ASSET VALUE per share
(Net Assets / Shares Outstanding)...... $1.00 $12.37 $11.39 $10.53
====== ======= ======= =======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1994
CAPITAL GROWTH AND INTERNATIONAL
SMALL CAP APPRECIATION INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
[cost_Note 4(b)]_see statement....... $183,348,104 $16,007,069 $ 1,084,309 $ 1,025,350
Cash................................... 1,531,615 95,800 47,677 75,058
Receivable for investment securities sold 1,297,449 -- -- --
Dividends and interest receivable...... 66,117 33,169 3,011 2,538
Prepaid expenses and other assets...... 4,366 90 -- --
Due from The Dreyfus Corporation....... -- 9,740 7,857 385
------------- ------------- ------------- -------------
186,247,651 16,145,868 1,142,854 1,103,331
------------- ------------- ------------- -------------
LIABILITIES:
Due to The Dreyfus Corporation......... $ 98,483 $ -- $ -- $ --
Payable for investment securities purchased 12,820,444 -- 92,837 --
Payable for shares of Beneficial Interest redeemed -- -- 10 --
Net unrealized depreciation on forward currency
exchange contracts_Note 4(a)......... -- -- -- 254
Accrued expenses and other liabilities. 113,723 27,571 10,113 14,498
------------- ------------- ------------- -------------
13,032,650 27,571 102,960 14,752
------------- ------------- ------------- -------------
NET ASSETS .................... $173,215,001 $16,118,297 $ 1,039,894 $ 1,088,579
============= ============= ============= =============
REPRESENTED BY:
Paid-in capital........................ $168,735,476 $15,941,804 $ 1,082,331 $ 1,126,622
Accumulated undistributed investment
income_net........................... 35,405 1,355 58 --
Accumulated distributions in excess of
investment income_net................ -- -- -- (7,247)
Accumulated undistributed net realized gain
(loss) on investments and foreign currency
transactions......................... (817,310) 672 522 (12,479)
Accumulated distributions in excess of net realized
gains on investments................. (481,344) -- -- --
Accumulated net unrealized appreciation
(depreciation) on investments and foreign
currency transactions_Note 4(b)...... 5,742,774 174,466 (43,017) (18,317)
------------- ------------- ------------- -------------
NET ASSETS at value, applicable to outstanding
shares of Beneficial Interest.......... $173,215,001 $16,118,297 $ 1,039,894 $ 1,088,579
============= ============= ============= =============
SHARES OUTSTANDING (unlimited number of
$.001 par value shares authorized for each series) 4,743,058 1,198,926 86,822 90,532
============= ============= ============= =============
NET ASSET VALUE per share
(Net Assets / Shares Outstanding)...... $36.52 $13.44 $11.98 $12.02
====== ======= ======= =======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1994
MONEY MANAGED ZERO COUPON QUALITY
MARKET ASSETS 2000 BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest............................. $1,006,418 $ 727,651 $ 522,791 $ 649,784
Cash dividends (net of $7,289 foreign taxes
withheld at source for the Managed
Assets Portfolio)................ -- 71,099 --_ --_
------------- ------------- ------------- -------------
TOTAL INCOME................... 1,006,418 798,750 522,791 649,784
------------- ------------- ------------- -------------
EXPENSES--NOTE 2(D):
Investment advisory fee_Note 3(a).... $ 108,958 $ 79,001 $ 38,947 $ 60,106
Sub-investment advisory fee_Note 3(a) ___ 79,001 ___ ___
Legal fees........................... 24,877 20,998 8,875 9,386
Auditing fees........................ 19,829 18,047 17,242 16,521
Custodian fees....................... 14,440 16,114 10,091 10,284
Registration fees.................... 8,980 7,946 1,780 2,893
Organization expenses................ 6,950 5,968 6,895 6,465
Trustees' fees and expenses_Note 3(b) 3,005 3,960 1,176 1,791
Prospectus and shareholders' reports. 2,791 6,500 2,047 ___
Shareholder servicing costs.......... 598 306 299 241
Miscellaneous........................ 957 969 3,425 3,581
------------- ------------- ------------- -------------
191,385 238,810 90,777 111,268
Less_expense reimbursement from The
Dreyfus Corporation and Comstock
Partners due to undertakings_Note 3(a) 191,385 185,292 90,777 111,268
------------- ------------- ------------- -------------
TOTAL EXPENSES................. ___ 53,518 ___ ___
------------- ------------- ------------- -------------
INVESTMENT INCOME--NET......... 1,006,418 745,232 522,791 649,784
------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments (including
foreign currency transactions)_Note 4(a) $ 40 $ 59,386 $ ___ $(101,063)
Net realized gain on financial futures_Note 4(a) ___ 87,189 ___ -__
------------- ------------- ------------- -------------
NET REALIZED GAIN (LOSS)............. 40 146,575 ___ (101,063)
Net unrealized (depreciation) on investments and
foreign currency transactions [including $(29,115)
net unrealized (depreciation) on financial
futures for the Managed Assets Portfolio] ___ (1,091,304) (791,423) (776,871)
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS 40 (944,729) (791,423) (877,934)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $1,006,458 $ (199,497) $(268,632) $(228,150)
============= ============= ============= =============
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF OPERATIONS (CONTINUED)
YEAR ENDED DECEMBER 31, 1994
CAPITAL GROWTH AND INTERNATIONAL
SMALL CAP APPRECIATION INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO* PORTFOLIO*
------------- ------------- ------------- -------------
INVESTMENT INCOME:
INCOME:
Interest............................. $ 822,120 $ 97,376 $ 13,052 $ 2,834
Cash dividends (net of $2,354, $35 and $1,441
foreign taxes withheld at source for the
Capital Appreciation, Growth and Income and
International Equity Portfolios, respectively) 299,488 195,251 11,999 10,744
------------- ------------- ------------- -------------
TOTAL INCOME................... 1,121,608 292,627 25,051 13,578
------------- ------------- ------------- -------------
EXPENSES--NOTE 2(D):
Investment advisory fee_Note 3(a).... $ 487,316 $ 49,561 $ 5,069 $ 5,080
Sub-investment advisory fee_Note 3(a) ___ 18,022 __- ---
Legal fees........................... 74,443 9,192 402 514
Registration fees.................... 51,931 4,132 363 382
Auditing fees........................ 25,921 9,500 6,333 6,330
Custodian fees....................... 24,874 4,137 860 5,294
Trustees' fees and expenses_Note 3(b) 13,356 1,990 129 124
Prospectus and shareholders' reports. 11,615 2,368 1,301 1,059
Organization expenses................ 5,565 __-- __--- __---
Shareholder servicing costs.......... 672 263 15 7
Miscellaneous........................ 1,166 1,057 718 789
------------- ------------- ------------- -------------
696,859 100,222 15,190 19,579
Less_expense reimbursement from The
Dreyfus Corporation due to
undertakings_Note 3(a)........... 340,893 77,322 12,926 17,220
------------- ------------- ------------- -------------
TOTAL EXPENSES................. 355,966 22,900 2,264 2,359
------------- ------------- ------------- -------------
INVESTMENT INCOME--NET......... 765,642 269,727 22,787 11,219
------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments_Note 4(a):
Long transactions (including foreign currency
transactions).................... $ (692,673) $ 588 $ 7,824 $(12,479)
Short sale transactions.............. (119,353) __-- __--- __---
------------- ------------- ------------- -------------
NET REALIZED GAIN (LOSS)............. (812,026) 588 7,824 (12,479)
Net unrealized appreciation (depreciation) on
investments, foreign currency transactions and
securities sold short................ 3,743,892 93,162 (43,017) (18,317)
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS. 2,931,866 93,750 (35,193) (30,796)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $3,697,508 $363,477 $(12,406) $(19,577)
============= ============= ============= =============
</TABLE>
* From May 2, 1994 (commencement of operations) to December 31, 1994.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET PORTFOLIO MANAGED ASSETS PORTFOLIO
-------------------------------- ------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
-------------------------------- ------------------------------
1993 1994 1993 1994
-------------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income_net.................. $ 86,426 $ 1,006,418 $ 56,340 $ 745,232
Net realized gain on investments, foreign
currency transactions and financial futures 35 40 36,233 146,575
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions
for the year......................... ___ ___- 626,021 (1,091,304)
-------------- --------------- ------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............ 86,461 1,006,458 718,594 (199,497)
-------------- --------------- ------------ -------------
DIVIDENDS TO SHAREHOLDERS:
From investment income_net............. (86,426) (1,000,523) (51,408) (769,916)
In excess of investment income_net..... ___ ___- __-- (48,981)
From net realized gain on investments.. (273) ___- __-- __--
-------------- --------------- ------------ -------------
TOTAL DIVIDENDS...................... (86,699) (1,000,523) (51,408) (818,897)
-------------- --------------- ------------ -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......... 40,424,117(3) 141,994,565(3) 5,959,592 26,699,972
Dividends reinvested................... 86,613(3) 1,000,523(3) 51,408 818,897
Cost of shares redeemed................ (33,650,057)(3)(115,923,303)(3) (586,787) (3,947,678)
-------------- --------------- ------------ -------------
INCREASE IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS............ 6,860,673 27,071,785 5,424,213 23,571,191
-------------- --------------- ------------ -------------
TOTAL INCREASE IN NET ASSETS..... 6,860,435 27,077,720 6,091,399 22,552,797
NET ASSETS:
Beginning of year...................... 790,248 7,650,683 1,865,326 7,956,725
-------------- --------------- ------------ -------------
End of year............................ $ 7,650,683 $ 34,728,403(1) $7,956,725(2) $30,509,522(2)
============= ============= ============= =============
SHARES SHARES
------------ -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 478,384 2,094,088
Shares issued for dividends reinvested.................................. 4,070 67,318
Shares redeemed......................................................... (50,692) (310,779)
------------ -------------
NET INCREASE IN SHARES OUTSTANDING.................................... 431,762 1,850,627
============ =============
</TABLE>
(1) Includes undistributed investment income_net; $5,895 in 1994.
(2) Includes distributions in excess of investment income_net: $(13,920) in
1993 and $(48,981) in 1994.
(3) $1.00 per share.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
ZERO COUPON 2000 PORTFOLIO QUALITY BOND PORTFOLIO
------------------------------ ------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
------------------------------ ------------------------------
1993 1994 1993 1994
-------------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income_net.................. $ 135,741 $ 522,791 $ 93,931 $ 649,784
Net realized gain (loss) on investments 79,385 ___ 13,099 (101,063)
Net unrealized (depreciation) on investments for
the year............................. (11,552) (791,423) (7,491) (776,871)
-------------- --------------- ------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............ 203,574 (268,632) 99,539 (228,150)
-------------- --------------- ------------ -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net.................. (134,657) (519,948) (93,069) (645,868)
Net realized gain on investments....... (72,191) (7,541) (2,048) (11,191)
-------------- --------------- ------------ -------------
TOTAL DIVIDENDS...................... (206,848) (527,489) (95,117) (657,059)
-------------- --------------- ------------ -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......... 5,035,897 8,129,045 4,643,084 10,900,540
Dividends reinvested................... 206,848 479,850 95,117 657,134
Cost of shares redeemed................ (905,731) (2,595,464) (440,933) (2,134,797)
-------------- --------------- ------------ -------------
INCREASE IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS............ 4,337,014 6,013,431 4,297,268 9,422,877
-------------- --------------- ------------ -------------
TOTAL INCREASE IN NET ASSETS..... 4,333,740 5,217,310 4,301,690 8,537,668
NET ASSETS:
Beginning of year...................... 1,362,399 5,696,139 404,781 4,706,471
-------------- --------------- ------------ -------------
End of year............................ $5,696,139(1) $10,913,449(1) $4,706,471(2) $13,244,139(2)
============= ============= ============= =============
SHARES SHARES SHARES SHARES
-------------- --------------- ------------ -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 392,187 683,960 390,577 991,178
Shares issued for dividends reinvested. 16,372 40,904 8,057 61,022
Shares redeemed........................ (71,372) (220,025) (37,102) (193,286)
-------------- --------------- ------------ -------------
NET INCREASE IN SHARES OUTSTANDING... 337,187 504,839 361,532 858,914
============= ============= ============= =============
</TABLE>
- ----------------------------
(1) Includes distributions in excess of investment income_net; $(57) in
1993
and undistributed investment income_net; $2,786
in 1994.
(2) Includes undistributed investment income_net: $881 in 1993 and $4,797
in 1994.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SMALL CAP PORTFOLIO CAPITAL APPRECIATION PORTFOLIO
------------------------------- ------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
------------------------------- ------------------------------
1993 1994 1993(1) 1994
------------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income_net.................. $ 53,316 $ 765,642 $ 20,787 $ 269,727
Net realized gain (loss) on investments 1,862,231 (812,026) 84 588
Net unrealized appreciation on investments
for the year......................... 1,392,389 3,743,892 81,304 93,162
------------- -------------- ------------ -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... 3,307,936 3,697,508 102,175 363,477
------------- -------------- ------------ -------------
DIVIDENDS TO SHAREHOLDERS:
From investment income_net............. (56,919) (727,613) (19,425) (269,734)
In excess of investment income_net..... (2,625) ___ ___ ___
From net realized gain on investments.. (1,237,464) (720,564) ___ ___
In excess of net realized gain on investments ___ (481,344) ___ ___
------------- -------------- ------------ -------------
TOTAL DIVIDENDS...................... (1,297,008) (1,929,521) (19,425) (269,734)
------------- -------------- ------------ -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......... 13,550,837 158,015,337 3,764,767 13,455,892
Dividends reinvested................... 1,297,008 1,929,521 19,425 269,733
Cost of shares redeemed................ (1,200,662) (6,835,267) (146,916) (1,471,097)
------------- -------------- ------------ -------------
INCREASE IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS............ 13,647,183 153,109,591 3,637,276 12,254,528
------------- -------------- ------------ -------------
TOTAL INCREASE IN NET ASSETS..... 15,658,111 154,877,578 3,720,026 12,348,271
NET ASSETS:
Beginning of year...................... 2,679,312 18,337,423 50,000 3,770,026
------------- -------------- ------------ -------------
End of year............................ $18,337,423(2) $173,215,001(2) $3,770,026(3) $16,118,297(3)
============= ============= ============= =============
SHARES SHARES SHARES SHARES
------------- -------------- ------------ -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 410,543 4,347,955 289,718 1,004,793
Shares issued for dividends reinvested. 40,243 52,997 1,466 20,097
Shares redeemed........................ (36,379) (190,260) (11,139) (110,009)
------------- -------------- ------------ -------------
NET INCREASE IN SHARES OUTSTANDING... 414,407 4,210,692 280,045 914,881
============= ============= ============= =============
- ----------------------
(1) From April 5, 1993 (commencement of operations) to December 31, 1993.
(2) Includes distribution in excess of investment income_net; $(2,625) in 1993 and undistributed investment income_net;
$35,405 in 1994.
(3) Includes undistributed investment income_net: $1,362 in 1993 and $1,355
in 1994.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FROM MAY 2, 1994 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1994.
GROWTH AND INTERNATIONAL
INCOME EQUITY
PORTFOLIO PORTFOLIO
------------ ------------
OPERATIONS:
Investment income_net................................................... $ 22,787 $ 11,219
Net realized gain (loss) on investments and foreign currency transactions 7,824 (12,479)
Net unrealized (depreciation) on investments and foreign
currency transactions for the period.................................. (43,017) (18,317)
------------ ------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................ (12,406) (19,577)
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
From investment income_net.............................................. (22,729) (11,219)
In excess of investment income_net...................................... ___ (7,247)
From net realized gain on investments and foreign currency
transactions.......................................................... (7,302) ___
------------ ------------
TOTAL DIVIDENDS....................................................... (30,031) (18,466)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 1,053,630 1,120,503
Dividends reinvested.................................................... 30,031 18,466
Cost of shares redeemed................................................. (1,330) (12,347)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 1,082,331 1,126,622
------------ ------------
TOTAL INCREASE IN NET ASSETS...................................... 1,039,894 1,088,579
NET ASSETS:
Beginning of period..................................................... ___ ___
------------ ------------
End of period........................................................... $1,039,894(1) $1,088,579(2)
============ ============
SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 84,474 90,002
Shares issued for dividends reinvested.................................. 2,457 1,536
Shares redeemed......................................................... (109) (1,006)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING.................................... 86,822 90,532
============ ============
</TABLE>
- -----------------
(1) Includes undistributed investment income_net; $58 in 1994.
(2) Includes distributions in excess of investment income_net; $(7,247) in
1994.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
MONEY MARKET PORTFOLIO
--------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $1.0000 $1.0000 $1.0002 $1.0002 $1.0000
-------- -------- -------- -------- --------
INVESTMENT OPERATIONS:
Investment income_net........................ .0244 .0583 .0407 .0323 .0431
Net realized gain on investments............. -- .0002 -_ -_ -_
-------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS........... .0244 .0585 .0407 .0323 .0431
-------- -------- -------- -------- --------
DISTRIBUTIONS:
Dividends from investment income_net......... (.0244) (.0583) (.0407) (.0323) (.0429)
Dividends from net realized gain on investments -- -- -- (.0002) --
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS........................ (.0244) (.0583) (.0407) (.0325) (.0429)
-------- -------- -------- -------- --------
Net asset value, end of year................. $1.0000 $1.0002 $1.0002 $1.0000 $1.0002
-------- -------- -------- -------- --------
TOTAL INVESTMENT RETURN 7.27%(2) 5.99% 4.14% 3.29% 4.37%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .03%(2) -- -- -- --
Ratio of net investment income to average net assets 7.18%(2) 5.78% 4.10% 3.23% 4.62%
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation.... 30.51%(2) 3.94% 4.25% 2.81% .88%
Net assets, end of year (000's Omitted)...... $741 $ 1,619 $790 $ 7,651 $34,728
- -------------------------
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Annualized.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
MANAGED ASSETS PORTFOLIO
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
------- ------- ------- ------- -------
Net asset value, beginning of year........... $10.00 $10.11 $10.76 $10.14 $12.92
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .08 .41 .22 .20 .35
Net realized and unrealized gain (loss) on investments .11 .66 (.11) 2.71 (.56)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .19 1.07 .11 2.91 (.21)
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... (.08) (.42) (.31) (.13) (.32)
Dividends in excess of investment income_net. -- -- -- -- (.02)
Dividends from net realized gain on investments -- -- (.42) -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.08) (.42) (.73) (.13) (.34)
------- ------- ------- ------- -------
Net asset value, end of year................. $10.11 $10.76 $10.14 $12.92 $12.37
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 1.85%(2) 10.60% 1.07% 28.59% (1.56%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .34%(2) 1.00% .97% .27% .25%
Ratio of net investment income to average net assets 2.11%(2) 4.46% 1.88% 1.87% 3.54%
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation
and Comstock Partners...................... 8.82%(2) 2.83% 1.70% 2.25% .88%
Portfolio Turnover Rate...................... -- 91.97% 118.78% 99.08% 25.96%
Net assets, end of year (000's Omitted)...... $ 716 $2,179 $1,865 $7,957 $30,510
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Not annualized.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
ZERO COUPON 2000 PORTFOLIO
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
------- ------- ------- ------- -------
Net asset value, beginning of year........... $10.00 $10.45 $11.64 $11.77 $12.57
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .22 .76 .83 .79 .69
Net realized and unrealized gain (loss) on investments .45 1.25 .15 .96 (1.18)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .67 2.01 .98 1.75 (.49)
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... (.22) (.76) (.84) (.78) (.68)
Dividends from net realized gain on investments -- (.06) (.01) (.17) (.01)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.22) (.82) (.85) (.95) (.69)
------- ------- ------- ------- -------
Net asset value, end of year................. $10.45 $11.64 $11.77 $12.57 $11.39
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 20.09%(2) 20.09% 8.87% 15.19% (3.91%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .70%(2) .72% .64% -_ -_
Ratio of net investment income to average net assets 8.03%(2) 7.41% 7.15% 6.21% 6.04%
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation.... 81.13%(2) 5.04% 2.28% 2.43% 1.05%
Portfolio Turnover Rate...................... -- 42.82% 3.08% 106.35% -_
Net assets, end of year (000's Omitted)...... $ 155 $1,296 $1,362 $5,696 $10,913
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Annualized.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
QUALITY BOND PORTFOLIO
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
------- ------- ------- ------- -------
Net asset value, beginning of year........... $10.00 $10.01 $10.67 $10.94 $11.81
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .23 .70 .92 .76 .73
Net realized and unrealized gain (loss) on investments .01 .66 .30 .88 (1.27)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .24 1.36 1.22 1.64 (.54)
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... (.23) (.70) (.92) (.76) (.73)
Dividends from net realized gain on investments -- -- (.03) (.01) (.01)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.23) (.70) (.95) (.77) (.74)
------- ------- ------- ------- -------
Net asset value, end of year................. $10.01 $10.67 $10.94 $11.81 $10.53
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 7.12%(2) 14.12% 12.09% 15.33% (4.59%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .15%(2) -- -- -- --
Ratio of net investment income to average net assets 7.20%(2) 7.52% 8.54% 6.51% 7.03%
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation.... 137.05%(2) 13.13% 5.33% 3.51% 1.20%
Portfolio Turnover Rate...................... -- -- 9.39% 110.62% 64.80%
Net assets, end of year (000's Omitted)...... $ 59 $ 410 $ 405 $4,706 $13,244
- ----------------------------
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Annualized.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
SMALL CAP PORTFOLIO
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994
------- ------- ------- ------- -------
Net asset value, beginning of year........... $10.00 $10.21 $20.60 $22.71 $34.45
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .21(2) .14(2) .18(2) .14 .17
Net realized and unrealized gain on investments -- 15.85(2) 13.10(2) 14.93 2.50
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .21(2) 15.99(2) 13.28(2) 15.07 2.67
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... -- (.15) (.15) (.14) (.16)
Dividends in excess of investment income_net. -- -- -- (.01) --
Dividends from net realized gain on investments -- (5.45) (11.02) (3.18) (.33)
Dividends in excess of net realized gain on investments -- -- -- -- (.11)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ -- (5.60) (11.17) (3.33) (.60)
------- ------- ------- ------- -------
Net asset value, end of year................. $10.21 $20.60 $22.71 $34.45 $36.52
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 2.10%(3) 159.73% 71.28% 68.31% 7.75%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .34%(3) 1.16% .94% .25% .55%
Ratio of net investment income to average net assets 2.10%(3) .77% .76% .89% 1.18%
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation.... 84.84%(3) 3.64% 2.29% 1.79% .52%
Portfolio Turnover Rate...................... -- 388.70% 358.27% 244.59% 106.00%
Net assets, end of year (000's Omitted)...... $ 36 $1,554 $2,679 $18,337 $173,215
- -------------------------
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Based on average shares outstanding.
(3) Not annualized.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
CAPITAL APPRECIATION PORTFOLIO
---------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------
PER SHARE DATA: 1993(1) 1994
------- -------
Net asset value, beginning of year...................................... $12.50 $13.27
------- -------
INVESTMENT OPERATIONS:
Investment income_net................................................... .08 .23
Net realized and unrealized gain on investments......................... .76 .17
------- -------
TOTAL FROM INVESTMENT OPERATIONS...................................... .84 .40
------- -------
DISTRIBUTIONS;
Dividends from investment income_net.................................... (.07) (.23)
------- -------
Net asset value, end of year............................................ $13.27 $13.44
====== =======
TOTAL INVESTMENT RETURN 6.74%(2) 3.04%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. .28%(2) .25%
Ratio of net investment income to average net assets.................... 1.89%(2) 2.99%
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation............................................ 3.67%(2) .86%
Portfolio Turnover Rate................................................. .01%(2) .12%
Net assets, end of year (000's Omitted)................................. $3,770 $16,118
- -----------------------
(1) From April 5, 1993 (commencement of operations) to December 31, 1993.
(2) Not annualized.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for the period from May 2, 1994
(commencement of operations) to December 31, 1994. This information has been
derived from the Series' financial statements.
GROWTH AND
INCOME
PORTFOLIO
-----------
PER SHARE DATA:
Net asset value, beginning of period...................................................... $12.50
------
INVESTMENT OPERATIONS:
Investment income_net..................................................................... .28
Net realized and unrealized (loss) on investments......................................... (.43)
------
TOTAL FROM INVESTMENT OPERATIONS........................................................ (.15)
------
DISTRIBUTIONS:
Dividends from investment income_net...................................................... (.28)
Dividends from net realized gain on investments........................................... (.09)
------
TOTAL DISTRIBUTIONS..................................................................... (.37)
------
Net asset value, end of period............................................................ $11.98
======
TOTAL INVESTMENT RETURN (1.22%) *
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................................... .22% *
Ratio of net investment income to average net assets...................................... 2.25% *
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation................................................. 1.28% *
Portfolio Turnover Rate................................................................... 237.09% *
Net assets, end of period (000's Omitted)................................................. $1,040
- ----------------
* Not annualized.
See notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for the period from May 2, 1994
(commencement of operations) to December 31, 1994. This information has been
derived from the Series' financial statements.
INTERNATIONAL
EQUITY
PORTFOLIO
-----------
PER SHARE DATA:
Net asset value, beginning of period...................................................... $12.50
------
INVESTMENT OPERATIONS:
Investment income_net..................................................................... .15
Net realized and unrealized (loss) on investments and foreign currency transactions....... (.40)
------
TOTAL FROM INVESTMENT OPERATIONS........................................................ (.25)
------
DISTRIBUTIONS:
Dividends from investment income_net...................................................... (.14)
Dividends in excess of investment income_net.............................................. (.09)
------
TOTAL DISTRIBUTIONS..................................................................... (.23)
------
Net asset value, end of period............................................................ $12.02
======
TOTAL INVESTMENT RETURN (2.00)%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................................... .23%*
Ratio of net investment income to average net assets...................................... 1.11%*
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation.............................................................. 1.70%*
Portfolio Turnover Rate................................................................... 16.75%*
Net assets, end of period (000's Omitted)................................................. $1,089
</TABLE>
Not annualized.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1--GENERAL:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as an open-end management investment company and is intended to be a funding
vehicle for variable annuity contracts and variable life insurance policies
to be offered by the separate accounts of life insurance companies. The Money
Market, Managed Assets, Zero Coupon 2000, Quality Bond, Small Cap and Capital
Appreciation Portfolios are diversified portfolios. The Growth and Income and
International Equity Portfolios are non-diversified portfolios. The Growth
and Income and International Equity Portfolios commenced operations on May 2,
1994. The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment
adviser. Effective August 24, 1994, Dreyfus became a direct subsidiary of Mell
on Bank, N.A. With respect to the Managed Assets, Capital Appreciation and
International Equity Portfolios, Comstock Partners, Inc. ("Comstock
Partners"), Fayez Sarofim & Co. ("Sarofim") and M&G Investment Management
Limited ("M&G") serve as the Series' sub-investment adviser, respectively.
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, until
August 24, 1994, acted as the exclusive distributor of the Fund's shares,
which are sold without a sales charge.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
On May 4, 1994, the shareholders of the Managed Assets Portfolio approved
a change of the Portfolio's name from "Asset Allocation Portfolio" to
"Managed Assets Portfolio".
It is the Fund's policy, with respect to the Money Market Portfolio, to
maintain a continuous net asset value per share of $1.00; the Fund has
adopted certain investment, portfolio valuation and dividend and distribution
policies to enable it to do so. There is no assurance, however, that the Fund
will be able to maintain a stable net asset value of $1.00, with respect to
the Money Market Portfolio.
The Fund currently functions as the funding vehicle for the Dreyfus
Series 2000 Variable Annuity Contract (the "Account") issued by Mutual
Benefit Life Insurance Company ("Mutual Benefit Life"). On July 16, 1991, the
Superior Court of New Jersey entered an Order (the "Order") appointing the
New Jersey Insurance Commissioner as Rehabilitator of Mutual Benefit Life.
The Commissioner was granted immediate exclusive possession and control of,
and title to, the business and assets of Mutual Benefit Life, including the
assets and liabilities of the Account.
The Commissioner was empowered by the Order to take such steps as he
deemed appropriate toward removing the cause and conditions that made
rehabilitation necessary. On January 15, 1993, the Commissioner filed the
First Amended Plan of Rehabilitation ("Plan") with the Court. The Plan
stipulated that the assets and liabilities of the Account will be transferred
to a separate account of MBL Life Assurance Corporation ("MBLLAC"), a
wholly-owned subsidiary of Mutual Benefit Life. The Plan also provided for the
transfer of the ownership of the stock of MBLLAC to a Trust. The
Commissioner was designated as the sole Trustee of the Trust. On August 12,
1993, the Court rendered an opinion approving the Plan with certain
modifications. Two subsequent amendments to the Plan were filed and approved
by the Court. None of the modifications or amendments affected the status of
the Account. On November 10, 1993, the Court issued an Order of Confirmation
permitting the implementation of the Plan.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
An order was also issued by the Court on January 28, 1994, approving the
form of the Third Amended Plan of Rehabilitation, the Election Materials and
related documents. On April 29, 1994, the Plan was implemented. Substantially
all of the assets of Mutual Benefit Life were transferred to MBLLAC and
MBLLAC assumed and reinsured Mutual Benefit's restructured insurance
liabilities. The stock of MBLLAC was assigned to the Stock Trust and the
Commissioner was designated as Trustee.
In view of the terms and conditions of both the Order and the Plan,
applications for new contracts and additional purchase payments under
existing contracts are currently not being accepted by the Account. The terms
of the Order and the Plan permit redemptions from the Account to continue as
requested.
The proceedings of the New Jersey Insurance Commissioner with respect to
Mutual Benefit Life or the Account do not apply to the separate accounts of
other life insurance companies that may use the Fund as a funding vehicle for
contracts or policies issued by them.
As of December 31, 1994, Dreyfus held the following shares:
<S> <C> <C> <C>
Money Market Portfolio.............. 25,215 Small Cap Portfolio.............. 4,511
Managed Assets Portfolio............ 2,332 Growth and Income Portfolio....... 82,457
Zero Coupon 2000 Portfolio.......... 2,714 International Equity Portfolio.... 81,531
Quality Bond Portfolio.............. 2,738
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION:
Money Market Portfolio:
Investments are valued at amortized cost, which has been determined by
the Fund's Board of Trustees to represent the fair value of the Series'
investments.
Managed Assets, Capital Appreciation, Small Cap, Growth and Income and International Equity
Portfolios:
Investments in securities (including options and financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Short-term investments are carried at amortized cost, which approximates
value. Investments traded in foreign currencies are translated to U.S.
dollars at the prevailing rates of exchange. Forward currency exchange
contracts are valued at the offsetting rate.
Zero Coupon 2000 and Quality Bond Portfolios:
Investments (excluding short-term investments and U.S. Government
obligations) are valued each business day by an independent pricing service
("Service") approved by the Board of Trustees. Investments for which quoted
bid prices are readily available and are representative of the bid side of
the market in the judgment of the Service are valued at the mean between the
quoted bid prices (as obtained by the Service from dealers in such
securities) and asked prices (as calculated by the Service based upon its
evaluation of the market for such securities). Other investments (which
constitute a majority of the portfolio securities) are carried at fair value
as determined by the Service, based on
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
methods which include consideration of: yields or prices of securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. Investments in U.S. Government
obligations are valued at the mean between quoted bid and asked prices.
Short-term investments are carried at amortized cost, which approximates
value.
(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 market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales
and maturities of short-term securities, sales of foreign currencies,
currency gains or losses realized on securities transactions, 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 or losses
arise from changes in the value of assets and liabilities other than
investments in securities at fiscal year end, resulting from changes in
exchange rates.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) EXPENSES: Expenses directly attributable to each series are charged
to that series' operations; expenses which are applicable to all series are
allocated among them.
(E) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are
recorded by the Fund on the ex-dividend date.
The Money Market Portfolio declares dividends daily from investment
income-net; such dividends are paid monthly. The Managed Assets, Capital
Appreciation, Small Cap and International Equity Portfolios declare and pay
dividends from investment income-net annually. The Zero Coupon 2000 and
Quality Bond Portfolios declare and pay dividends from investment income-net
monthly. The Growth and Income Portfolio declares and pays dividends from
investment income-net quarterly. Dividends from net realized capital gain for
each series are normally declared and paid annually.
Each series may make distributions from capital gains and with respect to
the Managed Assets, Capital Appreciation, Small Cap and International Equity
series distributions from investment income-net on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. This
may result in distributions that are in excess of investment income-net and
net realized capital gains on a fiscal year basis. However, to the extent
that a net realized capital gain of any series can be reduced by a capital
loss carryover, if any, of that series, such gain will not be distributed.
The Managed Assets and International Equity Portfolios had dividends in
excess of investment income_net for financial statement purposes resulting
from Federal income tax distribution requirements, primarily from gains of
Passive Foreign Investment Companies.
During the year ended December 31, 1994, the Managed Assets Portfolio
reclassified $38,604 charged to undistributed income_net in prior years to
paid-in capital.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Small Cap Portfolio had dividends in excess of net realized gains for
financial statement purposes resulting from Federal income tax distribution
requirements.
(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
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.
The Managed Assets Portfolio has an unused capital loss carryover of
approximately $369,600 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
December 31, 1994. If not applied, $5,500 of the carryover expires in fiscal
2001 and $364,100 expires in fiscal 2002.
The Quality Bond Portfolio has an unused capital loss carryover of
approximately $31,100 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
December 31, 1994. The carryover does not include net realized securities
losses from November 1, 1994 through December 31, 1994 which are treated, for
Federal income tax purposes, as arising in fiscal 1995. If not applied, the
carryover expires in fiscal 2002.
The International Equity Portfolio has an unused capital loss carryover
of approximately $8,300 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
December 31, 1994. The carryover does not include net realized securities
losses from November 1, 1994 through December 31, 1994 which are treated, for
Federal income tax purposes, as arising in fiscal 1995. If not applied, the
carryover expires in fiscal 2002.
NOTE 3--INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEES AND OTHER
TRANSACTIONS
WITH AFFILIATES:
(A) Fees payable by the Fund pursuant to the provisions of an Investment
Advisory Agreement with Dreyfus are payable monthly, computed on the average
daily value of each series' net assets at the following annual rates: .50 of
1% of the Money Market Portfolio, .375 of 1% of the Managed Assets Portfolio,
.45 of 1% of the Zero Coupon 2000 Portfolio, .65 of 1% of the Quality Bond
Portfolio, .75 of 1% of the Small Cap Portfolio, .55 of 1% of the first $150
million; .50 of 1% of the next $150 million; and .375 of 1% over $300 million
of the Capital Appreciation Portfolio, .75 of 1% of the Growth and Income
Portfolio and .75 of 1% of the International Equity Portfolio. With respect
to the Managed Assets Portfolio, pursuant to a Sub-Investment Advisory
Agreement with Comstock Partners, the sub-investment advisory fee is computed
at an annual rate of .375 of 1% of the average daily value of the series' net
assets and is payable monthly. With respect to the Capital Appreciation
Portfolio, pursuant to a Sub-Investment Advisory Agreement with Sarofim, the
sub-investment advisory fee is computed at an annual rate of .20 of 1% of the
first $150 million; .25 of 1% of the next $150 million; and .375 of 1% over
$300 million of the average daily value of the series' net assets and is
payable monthly. With respect to the International Equity Portfolio, pursuant
to a Sub-Investment Advisory Agreement between Dreyfus and M&G, the
sub-investment advisory fee is computed at an annual rate of .30 of 1% of the
average daily value of the series' net assets and is payable monthly by
Dreyfus.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The agreements further provide that if in any full year the aggregate
expenses of any series, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, that series may deduct from the payments to be
made to Dreyfus (and Comstock Partners, Sarofim or M&G, with respect to the
Managed Assets, Capital Appreciation and International Equity Portfolios,
respectively), or Dreyfus (and Comstock Partners, Sarofim or M&G, with
respect to the Managed Assets, Capital Appreciation and International Equity
Portfolios, respectively) will bear the amount of such excess to the extent
required by state law.
However, Dreyfus has undertaken, with respect to the Money Market
Portfolio, from January 1, 1994 through December 31, 1994, to reimburse all
fees and expenses (excluding certain expenses as described above) of the
series. With respect to the Managed Assets Portfolio, Dreyfus has undertaken
from January 1, 1994 to reduce the investment advisory fee, or reimburse such
excess expenses of the series, to the extent that such expenses exceeded
specified annual percentages of the average daily value of the series' net
assets. In addition, Comstock Partners has undertaken from July 1, 1994
through December 31, 1994 to waive the sub-investment advisory fee. With
respect to the Capital Appreciation, Growth and Income and International
Equity Portfolios, Dreyfus has undertaken, from January 1, 1994(May 2, 1994,
Commencement of operations for the Growth and Income and International Equity
Portfolios) through December 31, 1994 to reimburse expenses (excluding
certain expenses as described above) in excess of an annual rate of .25 of 1%
of the average daily value of the series net assets. With respect to the Zero
Coupon 2000 and Quality Bond Portfolios, Dreyfus has undertaken, from January
1, 1994 through December 31, 1994, to reimburse all fees and expenses (excludi
ng certain expenses as described above) of the series. With respect to the
Small Cap Portfolio, Dreyfus had undertaken, from January 1, 1994 through
November 7, 1994, to reduce the investment advisory fee and/or reimburse such
excess expenses of the series, to the extent that such expenses exceeded
specified annual percentages of the average daily value of the series' net
assets.
The expense reimbursements, pursuant to the undertakings, amounted to
the following for the year ended December 31, 1994:
Money Market Portfolio.............. $191,385 Small Cap Portfolio............ $340,893
Managed Assets Portfolio............ 141,141 Capital Appreciation Portfolio.. 77,322
Zero Coupon 2000 Portfolio.......... 90,777 Growth and Income Portfolio...... 12,926
Quality Bond Portfolio.............. 111,268 International Equity Portfolio.. 17,220
In addition, Comstock Partners, pursuant to the undertakings, waived
sub-investment advisory fees of $44,151 for the Managed Assets Portfolio.
The undertakings may be modified by Dreyfus from time to time, provided
that the resulting expense reimbursement would not be less than the amount
required pursuant to the agreements.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of Dreyfus, Comstock
Partners, Sarofim, M&G and/or Dreyfus Service Corporation. Each trustee who
is not an "affiliated person" receives from the Fund an annual fee of $2,500
and an attendance fee of $250 per meeting.
NOTE 4--SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short by the Fund, excluding
short-term securities, options and forward currency exchange contracts, for
the year ended December 31, 1994:
LONG TRANSACTIONS:
PURCHASES SALES PURCHASES SALES
------------- ------------ ------------ -----------
Managed Assets Portfolio $ 13,258,729 $ 1,928,580 Capital Appreciation Portfolio $8,670,726 $ 8,376
Zero Coupon 2000 Portfolio 4,331,463 _ Growth and Income Portfolio. 2,077,561 1,343,816
Quality Bond Portfolio. 13,418,997 4,463,039 International Equity Portfolio 1,104,219 162,355
Small Cap Portfolio.... 157,127,951 54,726,841
SHORT SALE TRANSACTIONS;
PURCHASES SALES
------------- ------------
Small Cap Portfolio..... $ 2,090,925 $ 1,971,572
</TABLE>
With respect to the Small Cap Portfolio, the series is engaged in
short-selling which obligates the series to replace the
security borrowed by purchasing the security at current market value. The
series would incur a loss if the price of the security increases between the
date of the short sale and the date on which the series replaces the borrowed
security. The series would realize a gain if the price of the security
declines between those dates. Until the series replaces the borrowed
security, the series will maintain daily, a segregated account with a broker
and custodian of cash and/or U.S. Government securities sufficient to cover
its short position. At December 31, 1994, there were no securities sold short
outstanding.
In addition, the following summarizes open forward currency exchange
contracts for the International Equity Portfolio at December 31, 1994;
<TABLE>
<CAPTION>
U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALE CONTRACTS PROCEEDS VALUE DEPRECIATION
- ------------------------------------- -------------- ------------- -------------
<S> <C> <C> <C>
Japanese Yen, expiring 4/12/95............................... $86,128 $86,382 $(254)
======
When executing forward currency exchange contracts, the series is
obligated to buy or sell a foreign currency at a specified
rate on a certain date in the future. With respect to sales of forward
currency exchange contracts, the series would incur a loss if the value of
the contract increases between the date the forward contract is opened and
the date the forward contract is closed. The series realizes a gain if the
value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the series would incur a
loss if the value of the contract decreases between the date the forward
contract is opened and the date the forward contract is closed. The series
realizes a gain if the value of the contract increases between those dates.
The series' exposure to credit risk associated with counter party
nonperformance on these investments is typically limited to the unrealized
gains in such contracts that are recognized in the Statement of Assets and
Liabilities.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
With respect to the Managed Assets Portfolio, the series is engaged in
trading financial futures contracts. The series is exposed to market risk as
a result of changes in the value of the underlying financial instruments (see
the Statement of Financial Futures). Investments in financial futures require
the series to "mark to market" on a daily basis, which reflects the change in
the market value of the contract at the close of each day's trading.
Accordingly, variation margin payments are made or received to reflect daily
unrealized gains or losses. When the contracts are closed, the series
recognizes a realized gain or loss. These investments require initial margin
deposits with a custodian, which consist of cash or cash equivalents, up to
approximately 10% of the contract amount. The amount of these deposits is
determined by the exchange or Board of Trade on which the contract is traded
and is subject to change. Contracts open at December 31, 1994 and their
related unrealized market depreciation are set forth in the Statement of
Financial Futures.
With respect to the Managed Assets Portfolio, the series is also engaged
in trading restricted options, which are not exchange traded. The series'
exposure to credit risk associated with counter party nonperformance on these
investments is typically limited to the market value of such investments that
are disclosed in the Statement of Investments.
(B) The following summarizes the accumulated net unrealized
appreciation(depreciation) on investments and financial futures for each
series at December 31, 1994, excluding foreign currency transactions for the
Managed Assets and International Equity Portfolios:
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
-------------- ------------- --------------
Money Market Portfolio....................................... $ ---- $ ---- $ ------
Managed Assets Portfolio..................................... 1,152,659 (1,600,048) (447,389)
Zero Coupon 2000 Portfolio................................... 9,619 (690,986) (681,367)
Quality Bond Portfolio....................................... 5,272 (756,879) (751,607)
Small Cap Portfolio.......................................... 9,611,890 (3,869,116) 5,742,774
Capital Appreciation Portfolio............................... 611,091 (436,625) 174,466
Growth and Income Portfolio.................................. 2,574 (45,591) (43,017)
International Equity Portfolio............................... 37,794 (56,115) (18,321)
At December 31, 1994, the cost of investments of each series for Federal
income tax purposes was substantially the same as
the cost for financial reporting purposes. The cost of investments for each
series for financial reporting purposes as of December 31, 1994 was as
follows:
Money Market Portfolio......... $35,249,652 Small Cap Portfolio............... $177,605,330
Managed Assets Portfolio....... 30,593,876 Capital Appreciation Portfolio 15,832,603
Zero Coupon 2000 Portfolio..... 11,434,933 Growth and Income Portfolio 1,127,326
Quality Bond Portfolio......... 13,642,556 International Equity Portfolio 1,043,417
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND
We have audited the accompanying statements of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus
Variable Investment Fund (comprising, respectively, the Money Market, Managed
Assets, Zero Coupon 2000, Quality Bond, Small Cap, Capital Appreciation,
Growth and Income and International Equity Portfolios) as of December 31,
1994, and the related statements of operations and changes in net assets, and
the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994 by correspondence with the custodian
and others. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the respective portfolios constituting the Dreyfus
Variable Investment Fund at December 31, 1994, and the results of their
operations, the changes in their net assets and the financial highlights for
each of the indicated periods, in conformity with generally accepted
accounting principles.
(Ernst & Young LLP Signature Logo)
New York, New York
February 13, 1995
DREYFUS VARIABLE INVESTMENT FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Dreyfus Variable Investment Fund
- -- Small Cap Portfolio hereby designates $.015 per share as a long-term
capital gain distribution of the $.330 per share paid on September 14, 1994.
The Portfolio also designates $.0075 per share as a long-term capital gain
distribution of the $.270 per share paid on December 22, 1994.
(Dreyfus `D' Logo)
DREYFUS VARIABLE
INVESTMENT FUND
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
Comstock Partners, Inc.
10 Exchange Place
Jersey City, NJ 07302
SUB-INVESTMENT ADVISER
Fayez Sarofim & Co.
Two Houston Center,
Suite 2907
Houston, TX 77010
SUB-INVESTMENT ADVISER
M & G Investment Management Limited
Three Quays Tower Hill,
London, EC3R 6BQ, England
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. VIFAR9412
(Dreyfus Logo)
Variable
Investment Fund
Annual Report
December 31, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, GROWTH AND
INCOME PORTFOLIO AND THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
_______________________________________________
| | STANDARD | |
| | & POOR'S 500 | DREYFUS VARIABLE |
| PERIOD |COMPOSITE STOCK| INVESTMENT FUND, |
| |PRICE INDEX * | GROWTH AND INCOME |
|---------|---------------|--------------------|
| 5/2/94 | 10,000 | 10,000 |
| 6/30/94 | 9,915 | 9,880 |
| 9/30/94 | 10,399 | 10,240 |
|12/31/94 | 10,397 | 9,878 |
|----------------------------------------------|
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL EQUITY
PORTFOLIO AND THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE,
AUSTRALASIA, FAR EAST (EAFE (R)) INDEX
EXHIBIT A:
___________________________________________________________________
| | MORGAN STANLEY CAPITAL | |
| | INTERNATIONAL EUROPE, | DREYFUS VARIABLE |
| PERIOD | AUSTRALASIA, FAR EAST | INVESTMENT FUND, |
| | (EAFE(R)) INDEX * | INTERNATIONAL EQUITY |
|--------- | ---------------------- | --------------------- |
| 5/2/94 | 10,000 | 10,000 |
| 6/30/94 | 10,083 | 9,816 |
| 9/30/94 | 10,093 | 10,216 |
|12/31/94 | 9,990 | 9,800 |
|---------------------------------------------------------------- |
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, CAPTIAL APPRECIATION
PORTFOLIO AND THE STANDARD & POOR'S 500 COMPOSITE STOCK
PRICE INDEX
EXHIBIT A:
__________________________________________________________
| | STANDARD | DREYFUS VARIABLE |
| | & POOR'S 500 | INVESTMENT FUND, |
| PERIOD | COMPOSITE STOCK | CAPITAL APPRECIATION |
| | PRICE INDEX * | PORTFOLIO |
| --------- | --------------- | -------------------- |
| 4/5/93 | 10,000 | 10,000 |
| 6/30/93 | 10,048 | 10,144 |
| 9/30/93 | 10,307 | 10,232 |
| 12/31/93 | 10,546 | 10,674 |
| 3/31/94 | 10,147 | 10,288 |
| 6/30/94 | 10,189 | 10,368 |
| 9/30/94 | 10,687 | 10,909 |
| 12/31/94 | 10,684 | 10,998 |
| ------------------------------------------------------- |
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, CAPTIAL APPRECIATION
PORTFOLIO AND THE STANDARD & POOR'S 500 COMPOSITE STOCK
PRICE INDEX
EXHIBIT A:
__________________________________________________________
| | STANDARD | DREYFUS VARIABLE |
| | & POOR'S 500 | INVESTMENT FUND, |
| PERIOD | COMPOSITE STOCK | CAPITAL APPRECIATION |
| | PRICE INDEX * | PORTFOLIO |
| --------- | --------------- | -------------------- |
| 4/5/93 | 10,000 | 10,000 |
| 6/30/93 | 10,048 | 10,144 |
| 9/30/93 | 10,307 | 10,232 |
| 12/31/93 | 10,546 | 10,674 |
| 3/31/94 | 10,147 | 10,288 |
| 6/30/94 | 10,189 | 10,368 |
| 9/30/94 | 10,687 | 10,909 |
| 12/31/94 | 10,684 | 10,998 |
| ------------------------------------------------------- |
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, MANAGED ASSETS
PORTFOLIO AND THE STANDARD & POOR'S 500 COMPOSITE STOCK
PRICE INDEX AND DOW JONES INDUSTRIAL AVERAGE
EXHIBIT A:
____________________________________________________________
| | STANDARD | |DREYFUS VARIABLE |
| | & POOR'S 500 | DOW JONES |INVESTMENT FUND, |
| PERIOD |COMPOSITE STOCK| INDUSTRIAL | MANAGED ASSETS |
| | PRICE INDEX * | AVERAGE * | PORTFOLIO |
|-----------|---------------|-------------|-----------------|
| 8/31/90 | 10,000 | 10,000 | 10,000 |
| 12/31/90 | 10,366 | 10,211 | 10,185 |
| 12/31/91 | 13,517 | 12,687 | 11,264 |
| 12/31/92 | 14,546 | 13,626 | 11,385 |
| 12/31/93 | 16,009 | 15,938 | 14,651 |
| 12/31/94 | 16,218 | 16,740 | 14,423 |
|-----------------------------------------------------------|
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, ZERO COUPON
2000 PORTFOLIO WITH THE MERRILL LYNCH U.S. TREASURY
COUPON 7-YEAR STRIPS INDEX AND THE MERRILL LYNCH
U.S TREASURY COUPON 5-YEAR STRIPS INDEX
EXHIBIT A:
____________________________________________________________
| | MERRILL LYNCH |DREYFUS VARIABLE | MERRILL LYNCH |
| | U.S. TREASURY |INVESTMENT FUND, | U.S. TREASURY |
| PERIOD |COUPON 7-YEAR |ZERO COUPON 2000 | COUPON 5-YEAR |
| |STRIPS INDEX * | PORTFOLIO | STRIPS INDEX * |
|---------|---------------|-----------------|----------------|
| 8/31/90 | 10,000 | 10,000 | 10,000 |
|12/31/90 | 10,870 | 10,677 | 10,791 |
|12/31/91 | 13,001 | 12,822 | 12,651 |
|12/31/92 | 14,185 | 13,959 | 13,714 |
|12/31/93 | 16,287 | 16,079 | 15,329 |
|12/31/94 | 15,195 | 15,451 | 14,639 |
|------------------------------------------------------------|
*Source: Merrill Lynch Pierce, Fenner and Smith Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, QUALITY BOND PORTFOLIO
AND THE MERRILL LYNCH DOMESTIC MASTER INDEX (SUBINDEX D010)
EXHIBIT A:
_________________________________________________________
| | | DREYFUS VARIABLE |
| | MERRILL LYNCH | INVESTMENT FUND, |
| PERIOD | DOMESTIC MASTER | QUALITY BOND |
| | INDEX (SUBINDEX D010)* | PORTFOLIO |
| ---------| ---------------------- | ----------------- |
| 8/31/90 | 10,000 | 10,000 |
| 12/31/90 | 10,633 | 10,240 |
| 12/31/91 | 12,307 | 11,686 |
| 12/31/92 | 13,228 | 13,098 |
| 12/31/93 | 14,532 | 15,106 |
| 12/31/94 | 14,121 | 14,414 |
| ----------------------------------------------------- |
*Source: Merrill Lynch Pierce, Fenner and Smith, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS VARIABLE INVESTMENT FUND, SMALL CAP PORTFOLIO
AND THE RUSSELL 2000(R) INDEX
EXHIBIT A:
________________________________________________________
| | | DREYFUS VARIABLE |
| | | INVESTMENT FUND, |
| PERIOD | RUSSELL 2000(R) | SMALL CAP |
| | INDEX * | PORTFOLIO |
| --------- | --------------- | ----------------- |
| 8/31/90 | 10,000 | 10,000 |
| 12/31/90 | 9,569 | 10,210 |
| 12/31/91 | 13,976 | 26,519 |
| 12/31/92 | 16,548 | 45,422 |
| 12/31/93 | 19,676 | 76,451 |
| 12/31/94 | 19,319 | 82,376 |
| ---------------------------------------------------- |
* Source: Lipper Analytical Services, Inc.
