DREYFUS VARIABLE INVESTMENT FUND
TABLE OF CONTENTS
PAGE
----------
Money Market Portfolio................................. 5 - 7
Managed Assets Portfolio............................... 8 - 14
Zero Coupon 2000 Portfolio............................. 15 - 17
Quality Bond Portfolio................................. 18 - 20
Small Cap Portfolio.................................... 21 - 25
Capital Appreciation Portfolio......................... 26 - 30
Growth and Income Portfolio............................ 31 - 34
International Equity Portfolio......................... 35 - 39
Financial Statements................................... 40 - 62
Report of Independent Accountants...................... 63
DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
The past six months have seen a slow decline in the rate of economic
activity. This has been accompanied, inevitably, by declining interest rates.
In this environment, we are pleased that the Money Market Portfolio of
the Dreyfus Variable Investment Fund has maintained what we believe is a
highly competitive yield. For the half-year ended June 30, 1995, the
Portfolio produced an annualized yield of 5.71%. The annualized effective
yield was 5.86% after taking into account the effect of compounding.* The
Portfolio's yield does not reflect the deduction of additional charges
imposed in connection with investing in variable annuity contracts and variable
life insurance policies.
In managing your assets, we achieved the yield level by lengthening
maturities gradually during the six-month period. This was done in
anticipation of lower interest rates, which became more and more likely as
the economy gave continued signs of slowing down.
The Federal Reserve Board, which raised interest rates seven times during
1994 and early 1995 to head off inflation, became concerned that the drop in
economic performance might turn into an actual business recession.
Accordingly, in early July the Federal Reserve reversed course and made a
modest cut in the Federal Funds rate.
As this letter is written, the economy has distinctly cooled off from the
frothy activity that prevailed last year. Thus, one could say that the Fed's
policies have been successful. Inflation has been held at bay and few
observers believe that the "soft landing" will turn into a full-blown
economic recession.
However, the Federal Reserve showed laudable caution in the July
reduction of short-term rates. If more of that medicine is needed, we feel
that the Fed will not hesitate to act accordingly. Nonetheless, the central
bank must be ever watchful lest rate-cutting bring on the recurrence of
inflation which the Fed has so strenuously sought to avoid.
In our opinion, the money market has already discounted the possibility
of further Fed moves to lower interest rates. To a certain extent, that is
already built into current market prices. Our strategy under these
circumstances is to remain in the long end of the market as long as
necessary, in an effort to maintain the best possible level of yields.
We appreciate the opportunity to put your cash to work in the money
market, and will continue to exert our best efforts to attempt to obtain
competitive returns on your behalf.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
July 12, 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 JUNE 30,1995 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-20.7% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
Bank of Tokyo, Ltd.(Yankee)
6.00%, 7/17/95.......................................................... $ 1,500,000 $ 1,500,000
Commerzbank Ag (Yankee)
6.41%, 12/4/95.......................................................... 1,000,000 999,861
Fuji Bank Ltd. (Yankee)
6.04%, 8/11/95.......................................................... 1,500,000 1,500,000
Sanwa Bank Ltd. (Yankee)
6.04%, 7/18/95.......................................................... 1,000,000 1,000,009
Sumitomo Bank Ltd. (London)
6.06%, 7/3/95........................................................... 1,000,000 1,000,000
Swedbank (Yankee)
5.92%, 7/5/95........................................................... 1,500,000 1,500,000
-----------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $ 7,499,870 )..................................................... $ 7,499,870
===========
BANKERS' ACCEPTANCES-2.7%
Dai-Ichi Kangyo Bank Ltd. (Yankee)
6.01%, 7/25/95
(cost $996,027)......................................................... $ 1,000,000 $ 996,027
===========
COMMERCIAL PAPER-61.5%
AT&T Corp.
5.90%, 9/14/95.......................................................... $ 1,400,000 $ 1,383,025
Abbey National North America
5.92%, 9/15/95.......................................................... 1,700,000 1,679,041
Budget Funding Corp.
6.04%, 8/7/95........................................................... 1,500,000 1,490,827
Chrysler Financial Corp.
6.04%, 8/29/95.......................................................... 1,500,000 1,485,373
Ciesco L.P.
5.84%-6.23%, 11/8/95-1/18/96............................................ 1,700,000 1,656,143
Corporate Asset Funding Co.Inc.
6.41%, 12/27/95......................................................... 1,500,000 1,454,318
Den Danske Corp. Inc.
6.22%, 10/30/95......................................................... 1,000,000 979,733
Ford Motor Credit Co.
5.99%-6.33%, 7/14/95-1/9/96............................................. 1,700,000 1,666,229
General Electric Capital Corp.
6.03%, 8/31/95.......................................................... 1,000,000 989,952
DREYFUS VARIABLE INVESTMENT FUND, Money Market Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30,1995 (UNAUDITED)
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
-------------- ------------
General Electric Capital Services Inc.
6.02%, 8/31/95.......................................................... $ 1,000,000 $ 989,968
General Motors Acceptance Corp.
6.29%-6.43%, 10/10/95-10/31/95.......................................... 1,600,000 1,570,118
Lehman Brothers Holdings Inc.
6.04%, 8/2/95........................................................... 1,000,000 994,693
Merrill Lynch & Co. Inc.
6.28%, 7/11/95.......................................................... 1,000,000 998,292
Mitsubishi Motors Credit of America Inc.
6.16%, 7/25/95........................................................ (a) 1,000,000 995,953
Morgan Stanley Group Inc.
6.00%, 7/25/95 ......................................................... 1,500,000 1,494,060
NYNEX Corp.
6.19%, 9/5/95........................................................... 1,000,000 988,890
Spintab AB
6.20%, 9/13/95.......................................................... 1,500,000 1,481,346
-----------
TOTAL COMMERCIAL PAPER (cost $22,297,961)................................... $22,297,961
===========
CORPORATE NOTES-8.3%
Bear Stearns Companies Inc.
5.64%, 8/25/95........................................................ (b) $ 1,000,000 $ 1,000,000
General Electric Capital Corp.
6.35%, 2/9/96......................................................... (b) 500,000 500,000
Westdeutsche Landesbank Girozentrale
5.94%, 12/13/95 ........................................................ 1,500,000 1,506,994
-----------
TOTAL CORPORATE NOTES (cost $3,006,994)..................................... $ 3,006,994
===========
U.S. GOVERNMENT AGENCIES-6.7%
Federal Home Loan Mortgage Corp., Discount Notes
6.10%, 7/3/95
(cost $2,449,170)....................................................... $ 2,450,000 $ 2,449,170
===========
TOTAL INVESTMENTS (cost $36,250,022)............................. 99.9% $36,250,022
======= =============
CASH AND RECEIVABLES (NET)....................................... .1% $ 31,116
======= =============
NET ASSETS ............................................... 100.0% $36,281,138
======= =============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by an irrevocable letter of credit.
(b) Variable interest rate-subject to periodic change.
See independent accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
Over the past six months, the Dreyfus Variable Investment Fund, Managed
Assets Portfolio has been positioned to generally benefit from market
declines, interest rate increases, stronger gold share prices and a weakening
dollar. As the year unfolded, each of these areas experienced a great deal of
volatility, and each had a differing effect on total return.
As our investment posture indicates, we believe that at some point the
market will adjust to correct what we regard as highly inflated current
values.
The latest fiscal half-year, however, was not the time period for such an
adjustment. For the six months ended June 30, 1995, shares of your Portfolio
posted a total return of -.81%,* while the Standard & Poor's 500 Composite
Stock Price Index provided a total return of 20.19%.** The Portfolio's
performance does not reflect the deduction of additional charges imposed in
connection with investing in variable annuity contracts and variable life
insurance policies.
The primary factor leading to the Portfolio's disappointing performance
was the significant rise in the general stock market, particularly since the
beginning of 1995, which caused the Portfolio's stock index put options to
decline in value. The remainder of the holdings, consisting primarily of
foreign government bonds, gold shares and U.S. Treasuries, produced positive
returns.
At the beginning of 1995, the Portfolio held a gold share position of
approximately 19% of its total assets which we increased to 25% early in the
year. This position appreciated, and we have subsequently used its strength
to reduce the exposure to gold. While we feel that a core position in gold is
warranted, because of our longer-term concerns about financial assets and the
economy, we may from time to time take advantage of short-term volatility in
gold shares to enhance total return.
The Portfolio continues to own S&P 500 put options that would benefit
from a decline in the stock market, which has recently entered uncharted
valuations by reaching an all-time low dividend yield of 2.5%. While this
valuation parameter has been greatly debated, we feel that the rationale that
"it is different this time" will prove to be as inaccurate today as it was at
earlier speculative market peaks in farmland, oil, real estate and Japanese
stocks. We believe that the currently huge inflow, via mutual funds, into
equities priced at record high market valuations represents the greatest risk
to the equity markets. Over 75% of the money invested in equity mutual funds
during the past 70 years has entered the market over the last five years. A
significant market decline could stop and then reverse this flow, and the
resulting market illiquidity could have tumultuous consequences.
For similar reasons, the Portfolio has shorted the Hang Seng Index to an
amount equal to 1% of assets. Our analysis indicates that the Hong Kong stock
market is overvalued due to the euphoria surrounding China's entry into the
world's economy, the attractions of the Hong Kong real estate market and
lower U.S. interest rates. If any or all of these supports were to weaken or
disappear, the overvaluation might correct itself to the Portfolio's benefit.
There now appear to be a number of fixed income securities around the
globe that offer total return opportunities with what we consider an
acceptable level of risk. We have acquired a 2% position in the Brady bonds
issued by Venezuela and Argentina. In addition, the Portfolio continues to
hold a position in South African bonds, which we believe should benefit from
a rise in the price of gold and increased foreign investment following the
transition from apartheid.
The market for mortgage interest-only ("IO") securities has recently
suffered a sharp decline as mortgage prepayment rates have accelerated due to
the recent drop in rates, presenting what we feel is a buying opportunity.
For this reason, the Portfolio has again acquired IOs amounting to 1% of the
total holdings at this time.
In summary, we believe the Portfolio is positioned to realize capital
gains if gold shares rise, the U.S. and/or Hong Kong stock markets decline,
and a number of special situations throughout the global capital markets,
such as Brady bonds, IOs and South African bonds, appreciate.
Comstock's investment style is longer-term in nature. In fact, we
sometimes cite century-long charts to illustrate a point. We feel that our
style should bring our clients out ahead in the long run, after the markets
have completed a full cycle. At the moment, the main tenets of our strategy,
designed to prosper during a projected down cycle, have yet to bear fruit.
While the markets have generally been rising for 21 years, we feel that a
down cycle must eventually occur. Investors should remember that someone who
invested $10,000 in the stocks which comprised the Dow Jones Industrials back
in 1966 would have had to wait over 20 years, until June 1986, to garner
total returns equivalent to those of U.S. Treasury Bills over the same
period. In addition, the stock market took over 25 years to return to the
price levels seen before the 1929 crash. We see many similarities in today's
markets to those preceding the bear markets of 1929, the late 1960s and the
early 1970s, causing us to maintain our cautious stance toward financial
assets, especially for annuity investors with a longer-term horizon.
Sincerely,
[Comstock Partners, Inc. signature logo]
Comstock Partners, Inc.
Investment Policy Committee
July 14, 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. The S&P
500 Index is a widely accepted, unmanaged index of domestic stock market
performance.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS-35.0% SHARES VALUE
------------- -------------
<S> <C> <C> <C>
AGRICULTURE-1.5%.................. IMC Global 8,400 $ 454,650
-----------
BROADCASTING-.4%.. Tele-Communications, Cl. A (a) 5,000 117,188
-----------
CHEMICALS-.5% P.T. Tri Polyta Indonesia, A.D.R. 8,000 139,000
-----------
CONGLOMERATES-.7%................... Teledyne 8,000 196,000
-----------
CONSUMER
GROWTH STAPLES-.6%...... Paragon Trade Brands (a) 12,000 172,500
-----------
CONSUMER STAPLES-.1%Kimberly-Clark de Mexico, S.A., Ser. A 3,500 40,144
-----------
ENERGY-.5%...................... Baker Hughes 7,500 153,750
-----------
FINANCE-.3%.................... Pioneer Group 2,800 75,250
-----------
FOODS & BEVERAGES-.3%.............. Dole Food 3,400 99,025
-----------
GOLD MINING- 24.0%................. Amax Gold (a) 43,000 236,500
Ashanti Goldfields, G.D.R. .......... (b) 21,000 472,500
Barrick Gold........................... 5,200 131,300
Battle Mountain Gold................... 32,000 308,000
Bema Gold............................ (a) 87,000 174,000
Buffelsfontein Gold Mining, A.D.R. .... 13,000 81,250
Canyon Resources..................... (a) 68,000 153,000
Crystallex International............. (a) 16,000 34,740
Dakota Mining........................ (a) 25,000 43,750
Driefontein Consolidated, A.D.R. ...... 6,300 87,216
Echo Bay Mines......................... 3,000 27,000
El Callao Mining..................... (a) 8,000 5,537
Free State Consolidated Gold Mines, A.D.R...... 4,800 59,400
Goldcorp, Cl. A........................ 29,040 335,891
Greenstone Resources................. (a) 58,200 131,454
Herald Resources....................... 90,200 62,121
Homestake Mining....................... 34,700 572,550
International Gold Resources......... (a) 80,000 279,781
Kloof Gold Mining, A.D.R. ............. 6,300 68,512
MK Gold.............................. (a) 99,000 346,500
Menzies Gold......................... (a) 250,000 115,375
Newmont Mining......................... 14,871 622,723
Pegasus Gold......................... (a) 37,500 379,688
Placer Dome............................ 21,400 559,075
Prime Resource Group................. (a) 26,000 179,964
Randfontein Estates Gold Mining, A.D.R......... 7,200 48,033
Rio Amarillo Mining................ (a,b) 80,000 26,812
Royal Oak Mines...................... (a) 33,000 103,125
Santa Fe Pacific Gold.................. 60,000 727,500
Southwestern Gold.................... (a) 25,000 195,811
TVX Gold............................. (a) 59,200 427,591
Vaal Reefs Exploration & Mining, A.D.R. 7,500 46,406
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
--------------------------
GOLD MINING (CONTINUED).............. Vengold (a) 82,000 $ 130,909
-----------
7,174,014
-----------
HEALTH CARE-.4%............. Tenet Healthcare (a) 8,500 122,187
-----------
HOLDING COMPANIES-.8%................ Horsham 18,000 243,000
-----------
INDUSTRIAL-1.0%.................... Anglovaal 5,000 178,817
ISCOR.................................. 103,400 117,480
Johnnies Industrial ................... 1,400 14,732
-----------
311,029
-----------
METALS-.3%Freeport McMoRan Copper & Gold, Cl. A. .......... 3,800 78,375
-----------
MINING-1.4%.. Anglo American Platinum, A.D.R. (a) 1,400 10,014
Eldorado (Warrants)................ (a,b) 57,000 249,180
JCI, A.D.R. ......................... (a) 1,400 9,629
Triton Mining (Warrants)........... (a,b) 40,000 135,519
-----------
404,342
-----------
PLATINUM-.9% Impala Platinum Holdings, A.D.R. 11,000 278,404
-----------
RETAIL TRADE-1.3%................... Hartmarx (a) 43,000 215,000
K mart................................. 11,000 160,875
------------
375,875
-----------
TOTAL COMMON STOCKS
(cost $9,989,350).................... $10,434,733
============
PREFERRED STOCKS-0.8%
METALS; Freeport McMoRan Copper & Gold, Cl. A,
(cost $291,563)...................... 7,500 $ 250,313
============
CONTRACTS
SUBJECT
PUT OPTIONS-2.1% TO PUT
-------------
Brokerage Basket;
November '95 @ $95................. (m) 21,930 $ 0
Standard & Poor's 500 Index Flex Options:
September '95 @ $450................. 4,500 3,656
December '95 @ $450.................. 11,000 24,062
Standard & Poor's 500 Index:
September '95 @ $450................. 12,000 4,500
September '95 @ $475................. 3,300 2,578
September '95 @ $485................. 3,300 3,713
September '95 @ $550................. 3,500 38,500
December '95 @ $375.................. 3,300 1,031
December '95 @ $400.................. 3,300 1,856
December '95 @ $450.................. 4,000 6,000
December '95 @ $475.................. 3,300 8,663
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
CONTRACTS
SUBJECT
PUT OPTIONS (CONTINUED) TO PUT VALUE
-------------- ------------
Standard & Poor's 500 Index (continued):
December '95 @ $485.................. 2,200 $ 8,113
December '95 @ $550.................. 3,500 55,125
March '96 @ $453................... (m) 4,547 5,274
March '96 @ $500..................... 7,500 60,000
March '96 @ $525..................... 7,000 91,875
June '96 @ $450...................... 1,600 8,200
June '96 @ $475...................... 7,600 55,100
June '96 @ $500...................... 5,000 55,625
PRINCIPAL
AMOUNT
SUBJECT
TO PUT
-------------
Japanese Government Bond :
4.60%, 9/20/2004:
May '96 @ $1.288 (c,d,m) $ 2,416,870 81,690
..June '96 @ $1.343 (c,d,m) 1,045,750 78,640
U.S. Treasury Bond;
7.625%, 2/15/2025;
..April '96 @ $103.078 (m) 1,950,000 15,893
-----------
TOTAL PUT OPTIONS
(cost $1,906,394).................... $ 610,094
==========
PRINCIPAL
BONDS AND NOTES-24.9% AMOUNT
-------------
BONDS-24.1%.......... Argentinian Securities;
Republic of Argentina,
..5.00%, 3/31/2023 (e,f,g) $ 250,000 $ 119,375
Austrian Securities;
Republic of Austria,
..4.50%, 2/12/2000 (h) 3,918,154 3,979,865
German Securities;
Bundesrepublik Deutschland,
... 9%, 10/20/2000 (i) 1,809,627 2,005,248
South African Securities;
Eskom,
..11%, 6/1/2008 (j) 990,371 695,538
Venezuelan Securities;
Republic of Venezuela,
..6.75%, 3/31/2020 (e,f) 750,000 378,750
-----------
7,178,776
-----------
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
------------- -------------
NOTES-.8% Federal National Mortgage Association,
Non-Callable Strips, (collateralized by
FNMA Strip, 10/1/2024) Cl.sp 267-2,
8.50%, 10/25/2024 (Interest Only Obligation) $ 1,050,000(k) $ 250,214
-----------
TOTAL BONDS AND NOTES
(cost $6,665,735).................... 7,428,990
==========
SHORT-TERM INVESTMENTS-34.3%
U.S. TREASURY BILLS:.....5.61%, 7/6/95.......................... $ 8,894,000 $ 8,887,507
5.57%, 7/20/95......................... 102,000 101,723
5.56%, 7/27/95......................... 657,000 654,536
5.61%, 8/3/95.......................... (l) 502,000 499,590
5.32%, 8/17/95......................... 101,000 100,285
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $10,242,844)................... $10,243,641
===========
TOTAL INVESTMENTS (cost $29,095,886) ................................ 97.1% $28,967,771
======= ===========
CASH AND RECEIVABLES (NET) ..................................... 2.9% $ 873,525
======= ===========
NET ASSETS.................................................................. 100.0% $29,841,296
======= ===========
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, Managed Assets Portfolio
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
June 30, 1995, these securities amounted to $884,011 or 3.0% of net
assets.
(c) Strike price converted to U.S. Dollars at the prevailing rate of
exchange.
(d) Denominated in Japanese Yen.
(e) Denominated in U.S. Dollars.
(f) Secured by U.S. Treasury securities.
(g) Scheduled variable interest rate.
(h) Denominated in Swiss Francs.
(i) Denominated in German Marks.
(j) Denominated in South African Rand.
(k) Notional face amount.
(l) Partially held by the custodian in a segregated account as
collateral for open financial futures positions.
(m) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate market value of $181,497, represent
approximately .6% 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 at $95 ................ 11/11/94 $5.70 0.00 fair value
Japanese Government Bond:
4.60%, 9/20/2004, May '96 at 1.288 (c,d) 5/16/95 $.07 0.27 fair value
4.60%, 9/20/2004, June '96 at 1.343 (c,d) 6/21/95 $.08 0.26 fair value
Standard & Poor's 500 Index
March '96 at $453 .................. 12/14/94 $21.99 0.02 fair value
U.S. Treasury Bond;
7.625%, 2/15/2025, April '96 at $103.078 4/12/95 $4.72 0.05 fair value
*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>
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES JUNE 30, 1995 (UNAUDITED)
MARKET VALUE UNREALIZED
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES SOLD SHORT: CONTRACTS BY CONTRACTS EXPIRATION AT 6/30/95
------------ -------------- ------------- ------------
<S> <C> <C> <C> <C>
ISSUER
Hang Seng.................................... 5 $(298,850) July '95 $ (323)
Standard & Poor's 500........................ 6 $(1,641,450) September '95 (1,850)
-------
$(2,173)
========
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
As of June 30, 1995, the net asset value of the Dreyfus Variable
Investment Fund - Zero Coupon 2000 Portfolio was $12.44 per share. For the
six-month period ended June 30, 1995, the total return of the Portfolio was
11.88%,* compared with 11.871% for the Merrill Lynch U.S. Treasury Coupon
5-Year Strips Index.** Dividends declared from net investment income amounted
to $.343 per share, which represents an annualized distribution rate of 5.56%
per share based on the closing net asset value. The Portfolio's performance
does not reflect the deduction of additional charges imposed in connection
with investing in variable annuity contracts and variable life insurance
policies.
The calendar year 1994 was one of the worst for the bond market in nearly
70 years. So 1995 has been a welcome relief. Since the beginning of the year
the bond market has rallied substantially. The bond markets rallied right
through the Federal Reserve Board's last tightening in February when the
Federal Funds rate was raised by 50 basis points. The market continued to
rally when the Federal Reserve then loosened the Federal Funds rate in July
by 25 basis points. After seven corrective tightening moves totaling 300
basis points, the Fed has finally started to loosen credit.
With a fund structured primarily with zero coupon securities with a final
maturity date of 2000, the best method of managing the fund is to lengthen or
shorten the fund's duration in anticipation of interest rate moves. We are
currently structured at the longer end of our duration parameters and will
probably remain there over the near term. The Portfolio has received a 5-Star
overall rating from Morningstar, Inc. out of 219 portfolios in the Fixed
Income category.***
We are hopeful that our strategy will result in continued good
performance by the Portfolio. Of course, as economic or market conditions
dictate, the portfolio may be restructured accordingly.
Sincerely,
[Garitt A. Kono signature logo]
Garitt A. Kono
Portfolio Manager
July 31, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**Source: Merrill Lynch Pierce, Fenner and Smith, Inc. - Unlike the
Portfolio, the Merrill Lynch U.S. Treasury Coupon 5-Year Strips Index is an
unmanaged index.
*** Source: Morningstar, Inc. - Morningstar proprietary ratings reflect
historical risk-adjusted performance as of June 30, 1995. The ratings are
subject to change every month. Past performance is no guarantee of future
results. Morningstar ratings are calculated from the portfolio's three-year
average annual returns with appropriate fee adjustments and a risk factor
that reflects portfolio performance relative to three-month Treasury bill
monthly returns. Ten percent of the portfolios in an investment category
receive five stars.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-87.2% AMOUNT VALUE
-------------- ------------
<S> <C> <C> <C>
BANKING-2.3%............. CoreStates Capital,
Sub. Notes, 9 5/8%, 2001............. $ 200,000 $ 225,659
J.P. Morgan and Co.,
Sub. Notes, Zero Coupon, 1998................. 160,000 134,953
-----------
360,612
-----------
CONSUMER-1.0% News America Holdings (Gtd. by News),
Sr. Notes, 7 1/2%, 2000.............. 150,000 153,200
-----------
INDUSTRIAL-3.2%...................USX,
Deb., 9 1/8%, 2013................... 450,000 494,757
-----------
INSURANCE-.9%....................SunAmerica,
Notes, 9%, 1999...................... 130,000 139,268
-----------
FOREIGN-.5%............... Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997.............. 40,000 36,050
Montreal Urban Community,
Deb., 9 1/8%, 2001................... 40,000 44,447
-----------
80,497
-----------
OTHER-10.7%.............. FICO Coupon Strips:
Ser. 17, Zero Coupon, 4/5/2000................ 500,000 373,970
Ser. 3, Zero Coupon, 5/30/2000................ 1,000,000 744,780
Zero Coupon, 10/6/2000............... 478,000 345,726
Ser. 1, Zero Coupon, 11/11/2000............... 150,000 107,837
Ser. 10, Zero Coupon, 11/30/2000.............. 152,000 108,885
-----------
1,681,198
-----------
U.S. GOVERNMENT
AND AGENCIES-68.6%....... Chattanooga Valley,
Secured First Mortgage, Zero Coupon, 1/1/2000. 176,000 132,427
Federal National Mortgage Association,
Callable Principal Strips, Ser. 1:
Zero Coupon, 8/21/1996...................(a) 145,000 134,258
Zero Coupon, 10/10/2001..................... 400,000 369,761
Resolution Funding, Coupon Strips:
Ser. A, Zero Coupon, 7/15/1999................ 1,500,000 1,179,024
Zero Coupon, 7/15/2000........................ 260,000 192,864
Zero Coupon, 10/15/2000....................... 2,830,000 2,065,391
U.S. Treasury Coupon Receipts,
Zero Coupon, 11/15/2000....................... 430,355 312,212
U.S. Treasury Notes,
7 3/4%, 12/31/1999............................ 1,000,000 1,067,969
DREYFUS VARIABLE INVESTMENT FUND, Zero Coupon 2000 Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- ------------
U.S. GOVERNMENT
AND AGENCIES (CONTINUED)U.S. Treasury Principal Strips:
Zero Coupon, 8/15/2000............... 500,000 369,077
Zero Coupon, 11/15/2000.............. 6,750,000 4,908,485
-----------
10,731,468
-----------
TOTAL BONDS AND NOTES
(cost $13,255,647)................... $13,641,000
==========
SHORT-TERM INVESTMENT-10.9%
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
6.10%, 7/3/1995
(cost $1,704,422).................... $ 1,705,000 $ 1,704,422
==========
TOTAL INVESTMENTS (cost $14,960,069) ................................ 98.1% $15,345,422
===== ===========
CASH AND RECEIVABLES (NET) ......................................... 1.9% $ 297,549
===== ===========
NET ASSETS.................................................................. 100.0% $15,642,971
===== ===========
</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 independant accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
As of June 30, 1995 the net asset value of the Dreyfus Variable
Investment Fund - Quality Bond Portfolio was $11.58. For the six-month period
ended June 30, 1995, the total return of the Portfolio was 13.01%,* compared
to 12.863% for the Merrill Lynch All Maturities A Rated Index.** Dividends
declared from net investment income amounted to $.355 per share, representing
an annualized distribution rate of 6.18% per share, based on the closing net
asset value. The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable annuity
contracts and variable life insurance policies.
The calendar year 1994 was one of the worst for the bond market in nearly
70 years. So 1995 has been a welcome relief. Since the beginning of the year
the bond markets have rallied substantially. The bond markets rallied right
through the Federal Reserve Board's last tightening in February when the
Federal Funds rate was raised by 50 basis points. The market continued to
rally when the Federal Reserve then loosened the Federal Funds rate in July
by 25 basis points. After seven corrective tightening moves totalling 300
basis points the Fed has finally started to loosen credit.
The main reason for the superior performance during this period was the
fact that our durations were about a year longer than those of the Index. In
an environment where rates are falling, longer duration portfolios often
produce better total returns than portfolios with shorter durations. This
Portfolio has received a 5-Star overall rating from Morningstar, Inc. out of
219 portfolios in the Fixed Income category.***
We made a few minor changes in the Portfolio such as selling our holdings
of USF&G 8 3/8% due 2001, as the security was purchased as a candidate for
upgrading which did not occur. We sold a very small position in Rite Aid 6
7/8% due 2013 for the purpose of improving quality, increasing the coupon
rate and strengthening the size of the position from $100,000 to $1,000,000.
Our last sale was US Steel 9 1/8% due 2013 as the security was not performing
more positively in a falling rate environment.
Our purchases included $1,000,000 Carter Holt Harvey 7 5/8% due 2002,
which has since been upgraded, $1,000,000 Household Finance Corporation 6
3/4% due 2000, $1,000,000 Manufacturers and Traders Trust 7% due 2005 and
$1,500,000 Nabisco 6.85% due 2005. These purchases were made with the
anticipation of potential upgrades and potentially better performance than
the securities sold.
We are hopeful that these strategies will result in higher yields for the
Portfolio along with consistent returns. Of course, as economic or market
conditions dictate, the portfolio may be restructured accordingly.
Sincerely,
[Garitt A. Kono signature logo]
Garitt A. Kono
Portfolio Manager
July 31, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**Source: Merrill Lynch, Pierce, Fenner and Smith, Inc. - Unlike the
Portfolio, the Merrill Lynch All Maturities A Rated Index is an unmanaged
index.
*** Source: Morningstar, Inc. - Morningstar proprietary ratings reflect
historical risk-adjusted performance as of June 30, 1995. The ratings are
subject to change every month. Past performance is no guarantee of future
results. Morningstar ratings are calculated from the portfolio's three-year
average annual returns with appropriate fee adjustments and a risk factor
that reflects portfolio performance relative to three-month Treasury bill
monthly returns. Ten percent of the portfolios in an investment category
receive five stars.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-73.9% AMOUNT VALUE
------------- -------------
<S> <C> <C> <C>
AEROSPACE-1.9%....................Boeing,
Deb., 7 1/4%, 2025................... $ 200,000 $ 195,438
McDonnell Douglas,
Notes, 8 1/4%, 2000.................. 200,000 213,883
-----------
409,321
-----------
BANKING-5.9%...... First Chicago, Sub. Notes:
8 1/4%, 2002......................... 15,000 16,076
6 7/8%, 2003......................... 100,000 99,389
Manufacturers and Traders Trust,
Sub. Notes, 7%, 2005................. 1,000,000 995,000
NationsBank,
Sub. Notes, 6 1/2%, 2003............. 175,000 169,615
-----------
1,280,080
-----------
CONSUMER-7.9%.......................Nabisco,
Notes, 6.85%, 2005................... 1,500,000 1,470,614
News America Holdings (Gtd. by News):
Sr. Deb., 8 1/4%, 2018............... 100,000 103,330
Sr. Notes, 9 1/8%, 1999.............. 25,000 27,038
Time Warner,
Deb., 9.15%, 2023.................... 125,000 131,785
-----------
1,732,767
-----------
FINANCE-9.8%.............. Ford Motor Credit,
Notes, 7 1/2%, 2004.................. 1,000,000 1,035,867
Heller Financial,
Floating Rate Notes, 6 7/16%, 1999. (a) 100,000 100,227
Household Finance,
Notes, 6 3/4%, 2000.................. 1,000,000 1,010,854
-----------
2,146,948
-----------
INDUSTRIAL-13.7%............ American Brands,
Deb., 8 5/8%, 2021................... 400,000 454,876
Archer-Daniels-Midland,
Deb., 10 1/4%, 2006.................. 400,000 508,477
Carter Holt Harvey,
Sr. Notes, 7 5/8%, 2002.............. 1,000,000 1,052,939
Eastman Kodak,
Deb., 9.95%, 2018.................... 400,000 502,439
Ford Motor,
Deb., 8 7/8%, 2022................... 400,000 462,377
-----------
2,981,108
-----------
INSURANCE-.7% SunAmerica:.............................
Deb., 9.95%, 2012.................... 13,000 15,727
Notes, 9%, 1999...................... 130,000 139,268
-----------
154,995
-----------
DREYFUS VARIABLE INVESTMENT FUND, Quality Bond Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- ------------
FOREIGN-2.3%.............. Kingdom of Sweden,
Bonds, Ser. A, Zero Coupon, 1997..... $ 60,000 $ 54,074
Province of Quebec,
Deb., 8.80%, 2003.................... 400,000 443,888
-----------
497,962
-----------
OTHER-.5%.................. City of New York,
General Obligation Bonds, Ser. D, 10%, 2007 25,000 28,375
FICO Coupon Strips,
Ser. 1, Zero Coupon, 5/11/2000...... 95,000 70,979
-----------
99,354
-----------
U.S. GOVERNMENT
AND AGENCIES-31.2% Federal National Mortgage Association,
Callable Principal Strips,
Ser. 1, Zero Coupon, 8/21/1996...... (b) 55,000 50,926
U.S. Treasury Bonds:
10 3/4%, 8/15/2005................... 100,000 132,813
11 1/4%, 2/15/2015................... 100,000 150,078
7 1/4%, 5/15/2016.................... 1,200,000 1,273,687
U.S. Treasury Notes:
7 1/4%, 8/31/1996.................... 230,000 233,738
7 3/8%, 11/15/1997................... 1,000,000 1,032,656
8 1/2%, 11/15/2000................... 600,000 668,156
7 1/2%, 2/15/2005.................... 3,000,000 3,267,657
-----------
6,809,711
-----------
TOTAL BONDS AND NOTES
(cost $15,676,317)................... $16,112,246
===========
SHORT-TERM INVESTMENTS-24.1%
AGENCY DISCOUNT NOTE; Federal Home Loan Mortgage Corp.,
6.10%, 7/3/1995
(cost $5,268,214).................... $ 5,270,000 $ 5,268,214
===========
TOTAL INVESTMENTS (cost $20,944,531) .................................... 98.0% $21,380,460
====== ==========
CASH AND RECEIVABLES (NET).................................................. 2.0% $ 435,981
===========
NET ASSETS.................................................................. 100.0% $21,816,441
===========
</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 independent accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to report your Dreyfus Variable Investment Fund, Small
Cap Portfolio's results for the six-month period ending June 30, 1995.*
<TABLE>
<CAPTION>
SMALL CAP RUSSELL S&P 500
YEAR-TO-DATE PORTFOLIO 2000 INDEX** INDEX**
------------- ------------ ------------ ---------
<S> <C> <C> <C>
12/31/94 - 6/30/95........................................... +14.87% +14.42% +20.19%
INCEPTION-TO-DATE
-----------------
8/31/90 - 6/30/95............................................ +846.25% +121.04% +94.92%
</TABLE>
The Portfolio's performance does not reflect the deduction of additional
charges imposed in connection with investing in variable annuity contracts
and variable investment policies.
The Portfolio's average annual total returns were 21.27%, 47.49% and
59.20% for the one-year, three-year, and since-inception periods ended June
30, 1995.*** We are grateful that on the basis of this record, the Portfolio
was awarded Morningstar's Five Star overall ranking out of 556 annuity
portfolios in the equity category.+
During the six-month period ended June 30th, the small company universe
represented by the Russell 2000 Index broadly underperformed the large
company gains of the Standard & Poor's 500 Composite Stock Price Index. This
trend actually began in early 1994, and appears related to the strength of
economies on a global basis in 1994, primarily benefiting the large
U.S.-based multinationals whose exports were especially enhanced by the
weakened dollar.
The business of smaller companies, on the contrary, has been generally
perceived as domestic and, therefore, relatively less attractive in such an
environment. As we have mentioned in earlier reports to you, we have
purposely taken and held positions of smaller companies in capital goods,
technology and specialty materials where foreign sales have been strong and,
in a number of cases, where U.S. products actually dominate global markets.
Examples include Bush Boake Allen, in specialized flavors and fragrances;
Albany International Cl. A, in paper machinery clothing; OM Group, in cobalt
refining and metallurgy; Roper Industries, in process controls; and both Rohr
and Precision Castparts, as suppliers to Boeing.
A second important investment theme relates to the dramatic shift away
from consumer stocks. Quietly burdened by the weak local currency, spent out
during the 1980s, and demographically older and more prone to save, the
American consumer has become elusive. Conversely, after years of industrial
restructuring and benefited by the local currency, the capital goods and
technology sectors have been invigorated by a strong export market combined
with American corporate demand for productivity. Coming after 12 years of
consumer stocks' relative strength, the shift toward producer stocks appears
to be in the early stages. This has been led by the large company
performance of such companies as Intel and Microsoft, which now dominate the
NASDAQ Composite Index.
In recent months, small company technology stocks have joined the bull
market with vigor, in many cases with speculative fervor not seen since the
late 1960s. Our largest positions include Integrated Silicon Solution,
Auspex Systems and Glenayre Technologies -- all of which have moved from
relative obscurity into important global product offerings. Although we have
strong positive feelings about each company's management and corporate
prospects, the stocks of these and other technology firms have already
reached price targets we set for 1996 or beyond.
For this reason, you may find our technology sector weighting reduced for
a while and our primary efforts aimed at increasing
the consumer holdings, while they remain out of favor.
We again thank you for your interest and loyalty.
Sincerely,
[Thomas A. Frank signature logo]
Thomas A. Frank
Portfolio Manager
August 14, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**Source: The Russell Company; Lipper Analytical Services, Inc. All
performance figures assume the reinvestment of dividends. The Russell 2000
Index and The Standard & Poor's 500 Composite Stock Price Index are widely
accepted unmanaged indices of stock market performance.
*** Past performance is no guarantee of future results. Share price and
investment return fluctuate so that a shareholder may receive more or less
than original cost upon redemption.
Source: Morningstar, Inc. Morningstar proprietary ratings reflect
historical risk-adjusted performance as of 6/30/95. The
ratings are subject to change every month. Past performance is no guarantee
of future results. Morningstar ratings are calculated from the portfolio's
three-year average annual returns with appropriate fee adjustments and a risk
factor that reflects portfolio performance relative to three-month Treasury
bill monthly returns. Ten percent of the portfolios in an investment category
receive 5 stars.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS-89.1% SHARES VALUE
-------------- --------------
<S> <C> <C> <C>
CONSUMER-9.9% Boise Cascade Office Products...................... 135,000 $ 3,003,750
Bush Boake Allen..................... (a) 150,000 4,556,250
Canandaigua Wine, Cl. A.............. (a) 70,000 3,132,500
Central Tractor Farm & Country....... (a) 110,000 1,182,500
Eskimo Pie........................... 95,000 1,567,500
Genovese Drug Stores, Cl. A.......... 70,000 796,250
Norton McNaughton.................... (a) 205,000 3,177,500
Sports Authority..................... (a) 205,000 4,176,875
Station Casinos...................... (a) 133,000 2,294,250
Talbots.............................. 70,000 2,782,500
Thermedics........................... (a) 190,000 3,705,000
Williams-Sonoma...................... (a) 150,000 3,300,000
-------------
33,674,875
-------------
ENERGY-6.7%................. Cairn Energy USA........................ (a) 243,000 2,673,000
Coda Energy............................ (a) 350,000 2,406,250
Devon Energy........................... 100,000 2,150,000
Global Industries...................... (a) 110,000 2,447,500
Helmerich & Payne...................... 47,500 1,401,250
International Colin Energy............. (a) 190,000 997,500
Optima Petroleum....................... (a) 115,000 280,312
Parker & Parsley Petroleum............. 170,000 3,336,250
Pogo Producing......................... 175,000 4,003,125
Tide West Oil.......................... (a) 190,000 2,185,000
Unit (a) 237,500 860,938
-------------
22,741,125
-------------
FINANCIAL SERVICES-17.1%.......... Centerbank 125,000 1,812,500
City National.......................... 150,000 1,706,250
Commerce Group......................... 225,000 4,021,875
Dime Bancorp........................... (a) 350,000 3,500,000
Duff & Phelps Credit Rating............ (b) 300,000 3,900,000
Executive Risk......................... 170,000 3,230,000
Finova Group........................... 110,000 3,850,000
FirstFed Michigan...................... 150,000 4,200,000
Frontier Insurance Group............... 150,000 4,031,250
Hibernia, Cl. A........................ 475,000 4,215,625
National Re............................ 125,000 4,187,500
Presidential Life...................... 325,000 2,681,250
Reliance Group Holdings................ 500,000 3,250,000
Standard Federal Bancorporation........ 135,000 4,539,375
USLIFE................................. 100,000 4,025,000
Western National....................... 390,000 4,826,250
-------------
57,976,875
-------------
HEALTH CARE-8.4%................. ATS Medical (a) 150,000 1,275,000
ATS Medical (Warrants)............... (a) 150,000 121,875
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
HEALTH CARE (CONTINUED) AmeriSource Health, Cl. A 90,000 $ 2,053,125
Apogee............................... (a) 85,000 1,593,750
Apria Healthcare Group............... (a) 60,000 1,695,000
Circon............................... (a) 100,000 1,950,000
CorVel............................... (a) 130,000 2,795,000
FPA Medical Management............... 140,000 1,400,000
Mentor............................... 95,000 2,648,125
Scherer (R.P.)....................... (a) 90,000 3,802,500
Sofamor/Danek Group.................. (a) 100,000 2,262,500
Staff Builders....................... (a) 750,000 3,093,750
Universal Health Services, Cl. B..... (a) 135,000 3,915,000
-------------
28,605,625
-------------
MATERIALS &
PROCESSING-12.4%................... Albemarle 150,000 2,343,750
Cleveland-Cliffs....................... 50,000 1,925,000
Ferro.................................. 190,000 5,035,000
IMCO Recycling......................... 112,500 2,109,375
International Specialty Products....... 250,000 2,125,000
Jacobs Engineering Group............... (a) 110,000 2,420,000
Longview Fibre......................... 225,000 3,825,000
Minerals Technologies.................. 160,000 5,760,000
OM Group............................... 150,000 4,275,000
Schulman (A.).......................... 135,000 3,881,250
Sterling Chemicals..................... (a) 150,000 1,743,750
USA Waste Service...................... (a) 210,000 3,255,000
Uniroyal Chemical...................... 300,000 3,412,500
-------------
42,110,625
-------------
PRODUCER DURABLES-12.4% Albany International, Cl. A 150,000 3,581,250
Andros................................. (a) 100,000 1,750,000
Applied Power, Cl. A................... 75,000 2,165,625
Greenfield Industries.................. 50,000 1,450,000
ICC Technologies....................... (a) 130,000 1,868,750
Manitowoc.............................. 95,000 2,743,125
Precision Castparts.................... 175,000 6,146,875
Rohr................................... (a) 350,000 5,031,250
Roper Industries....................... 90,000 3,150,000
Titan Wheel International.............. 150,000 3,862,500
Watts Industries, Cl. A................ 135,000 3,383,438
Westinghouse Air Brake................. 250,000 3,562,500
Whittaker.............................. (a) 150,000 3,300,000
-------------
41,995,313
-------------
TECHNOLOGY-21.6%............ Aspen Technology (a) 75,000 1,912,500
Auspex Systems......................... (a) 390,000 4,875,000
DREYFUS VARIABLE INVESTMENT FUND, Small Cap Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
TECHNOLOGY (CONTINUED)............ C.P. Clare 100,000 $ 2,000,000
Cheyenne Software.................... (a) 137,500 2,543,750
DSP Communications................... 150,000 3,112,500
Eicon Technology..................... (a) 125,000 1,331,967
Electroglas.......................... (a) 25,000 1,431,250
Expert Software...................... (a) 77,500 1,433,750
Glenayre Technologies................ (a) 90,000 4,590,000
Information Storage Devices.......... (a) 115,000 2,875,000
Integrated Silicon Solution.......... 150,000 7,837,500
International Rectifier.............. (a) 75,000 2,437,500
Learning............................. (a) 80,000 2,875,000
Noise Cancellation Technologies...... (a) 625,000 371,125
Paradigm Technology.................. 100,000 2,243,750
Plaintree Systems.................... (b) 200,000 2,100,000
Platinum Software.................... (a) 250,000 3,625,000
Renaissance Solutions................ 135,000 1,856,250
Sierra On-Line....................... (a) 275,000 6,875,000
SoftKey International................ 150,000 4,781,250
Software Artistry.................... 105,000 2,336,250
Spectrum Holobyte.................... 130,000 1,860,625
StrataCom............................ (a) 67,500 3,290,625
Veeco Instruments.................... (a) 167,500 2,805,625
VideoServer.......................... 50,000 1,950,000
-------------
73,351,217
-------------
TRANSPORT & AUTOS-.6% U.S. Delivery Systems (a) 72,500 1,903,125
-------------
TOTAL COMMON STOCKS
(cost $262,310,038).................. $302,358,780
============
PRINCIPAL
SHORT-TERM INVESTMENTS-9.9% AMOUNT
--------------
U.S. TREASURY BILLS:.......... 5.56%, 7/27/95 $ 260,000 $ 259,025
5.57%, 8/3/95.......................... 2,747,000 2,733,814
5.34%, 8/17/95......................... 7,455,000 7,402,219
5.45%, 8/24/95......................... 15,823,000 15,694,992
5.53%, 8/31/95......................... 7,554,000 7,484,730
5.39%, 9/7/95.......................... 132,000 130,648
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $33,702,468)................... $ 33,705,428
============
TOTAL INVESTMENTS (cost $296,012,506) ..................................... 99.0% $336,064,208
====== ============
CASH AND RECEIVABLES (NET) ............................................ 1.0% $ 3,510,335
====== ============
NET ASSETS.................................................................. 100.0% $339,574,543
====== ============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Investment in non-controlled affiliates (cost $6,194,831)-see Note
2(d).
See independent accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
Equity markets have achieved extremely strong performance to date in
1995, driven by rising bond prices in an environment of moderating economic
growth and contained inflation. However, many broad industry groups have not
benefitted from the upward trend in equity prices. Sector emphasis and
individual issue selection have thus been critical for participation in the
advance.
The total return of the Dreyfus Variable Investment Fund, Capital
Appreciation Portfolio for the first six months of 1995 was 17.11%,* which
compared to 20.19% for the Standard & Poor's 500 Composite Stock Price
Index.** The Portfolio's performance does not reflect the deduction of
additional charges imposed in connection with investing in variable annuity
contracts and variable life insurance policies. Although the Portfolio's
performance lagged the Index, this was due to the concentration in the consumer
nondurables sector which slightly underperformed the Index during the
period, after strong results in 1994. Over the longer term, we believe the
Portfolio should be well positioned to achieve consistently positive results
in somewhat unusual economic and market circumstances.
INVESTMENT CLIMATE AND FUND STRATEGY
The impressive rallies in both bond and stock markets, which began in
November, were predicated on the assumption that the economy's growth would
moderate, that inflation had peaked and that interest rates could be relaxed
in the months ahead. If the economy strengthens in the second half, with
expected Gross Domestic Product higher than the Federal Reserve Board's
target range of 2.0% - 2.5%, markets will be negatively affected. On the
other hand, the possibility of recession, if the economy weakens too quickly,
is also a consideration that has impacted markets. We believe that the
economy will achieve a satisfactory transition between the faster rate of
growth in 1994 and the moderate range that fosters price stability.
We believe the Portfolio's investment strategy may be well tailored to
benefit in an extended slow growth environment, with emphasis on those
industry groups and individual issues that we believe are positioned to
achieve consistent, visible earnings growth even as the economy slows.
Therefore, the Portfolio should be expected to outperform the S&P 500 Index
if a recession did materialize, which we believe is unlikely over the next 18
months. We also expect the Portfolio to outperform the Index if the more
likely slow growth scenario unfolds, because impressive returns should be
realized from rising portfolio earning power translating into high stock
valuations.
FUND STRUCTURE AND PERFORMANCE
The Portfolio had approximately 14.7% in cash and short-term investments
on June 30, 1995. This cash position remains relatively high, reflecting our
conservative approach to making new investments. However, approximately 3.0%
of the cash position was invested during the period, which added to a number
of previous holdings and established new positions in American Home Products,
Ford Motor, General Motors Cl.E, International Flavors & Fragrances and
International Paper. The Portfolio had industry concentrations in consumer
nondurables and health care. After considerably outperforming the
S&P 500 Index in 1994, the consumer nondurables holdings were subject to some
profit-taking in the overall market in the first half of 1995. The sector
slightly underperformed the Index during this period, which detracted from
the Portfolio's overall results. However, the positive performance of such
holdings as Coca-Cola, Philip Morris Cos., PepsiCo, Proctor & Gamble,
Gillette and Kellogg had the greatest effect on the Portfolio's results.
Health care issues continued to outperform the S&P 500 Index,
particularly in a climate of less government regulation and oversight. This
sector had the second most positive impact on the Portfolio's performance,
led by shares of Merck & Co., Pfizer and Amgen. Financial services and
technology shares were also quite strong and positively affected the return.
Holdings in Citicorp, HSBC Holdings, Federal National Mortgage Association,
Texas Instruments and General Electric led these two groups.
We will continue to exert our best efforts to attempt to achieve the
investment goals of this Portfolio.
Sincerely,
[Fayez Sarofim signature logo]
Fayez Sarofim
Portfolio Manager
July 12, 1995
Houston, TX
* 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. Unlike
the portfolio, the Standard & Poor's 500 Composite Stock Price Index is a
widely accepted, unmanaged index of domestic stock market performance.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS-83.6% SHARES VALUE
--------------------------
<S> <C> <C> <C>
AEROSPACE &
ELECTRONICS-7.7% Emerson Electric....................... 4,000 $ 286,000
General Electric....................... 22,050 1,243,069
Motorola............................... 6,050 406,106
Texas Instruments...................... 1,600 214,200
-----------
2,149,375
-----------
AUTO RELATED-1.6% Chrysler............................... 5,000 239,375
Ford Motor............................. 6,500 193,375
-----------
432,750
-----------
BANKING-3.4% Banc One............................... 1,800 58,050
Citicorp............................... 13,025 753,822
KeyCorp................................ 1,800 56,475
PNC Bank............................... 3,000 79,125
-----------
947,472
-----------
CAPITAL GOODS-1.7% AlliedSignal........................... 8,000 356,000
Cooper Industries...................... 3,000 118,500
-----------
474,500
-----------
CHEMICALS-4.6% Dow Chemical........................... 8,000 575,000
duPont (E.I.) de Nemours............... 8,000 550,000
Rohm & Haas............................ 3,000 164,625
-----------
1,289,625
-----------
ENERGY-7.1% Chevron................................ 10,000 466,250
Exxon.................................. 8,525 602,078
Mobil.................................. 4,525 434,400
Royal Dutch Petroleum.................. 4,000 487,500
-----------
1,990,228
-----------
FINANCE-MISCELLANEOUS-3.6% American General........................ 3,000 101,250
Federal National Mortgage Association... 4,500 424,688
HSBC Holdings PLC....................... 2,400 30,785
HSBC Holdings PLC, A.D.R................ 3,500 449,750
-----------
1,006,473
-----------
FOOD, BEVERAGE &
TOBACCO-17.9% Anheuser-Busch Cos...................... 8,000 455,000
Coca-Cola............................... 22,000 1,402,500
General Mills........................... 600 30,825
Kellogg................................. 8,000 571,000
Nestle, A.D.R........................... 10,000 521,250
PepsiCo................................. 12,000 547,500
Philip Morris Cos....................... 15,000 1,115,625
Sara Lee................................ 2,500 71,250
Seagram Co. Ltd. ....................... 8,500 294,312
-----------
5,009,262
-----------
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- ------------
HEALTH CARE-13.4% Abbott Laboratories.................... 3,000 $ 121,500
American Home Products................. 7,500 580,313
Amgen.................................. (a) 2,500 201,094
Johnson & Johnson...................... 11,050 747,256
Merck & Co............................. 20,000 980,000
Pfizer................................. 8,550 789,806
Roche Holdings, A.D.S.................. 5,000 321,875
-----------
3,741,844
-----------
LEISURE TIME-1.3% Darden Restaurants..................... 600 6,525
Eastman Kodak.......................... 6,000 363,750
-----------
370,275
-----------
MEDIA-1.9% McGraw-Hill............................ 3,200 242,800
News Corp., A.D.S...................... 5,000 113,125
Reader's Digest Association, Cl. A..... 4,000 176,500
-----------
532,425
-----------
MULTI INDUSTRY-1.8% Minnesota Mining & Manufacturing....... 9,000 515,250
-----------
OFFICE &
BUSINESS EQUIPMENT-3.0% AT&T................................... 9,000 478,125
Ericsson (LM) Telephone, Cl. B, A.D.R.. 3,200 64,000
General Motors, Cl. E.................. 6,500 282,750
-----------
824,875
-----------
PAPER &
FOREST PRODUCTS-1.2% International Paper.................... 4,000 343,000
-----------
PERSONAL CARE-7.7% Colgate-Palmolive...................... 1,000 73,125
Gillette............................... 16,000 714,000
International Flavors & Fragrances..... 10,000 497,500
Procter & Gamble....................... 11,000 790,625
Unilever, N.V.......................... 500 65,062
-----------
2,140,312
-----------
PROFESSIONAL SERVICES-.4% Block (H & R).......................... 3,000 123,375
-----------
RETAIL-3.1% May Department Stores.................. 6,000 249,750
Wal-Mart Stores........................ 10,000 267,500
Walgreen............................... 7,000 350,875
-----------
868,125
-----------
TRANSPORTATION-2.2% Norfolk Southern....................... 6,000 404,250
Union Pacific.......................... 4,000 221,500
-----------
625,750
-----------
TOTAL COMMON STOCKS
(cost $20,111,524)................... $23,384,916
============
DREYFUS VARIABLE INVESTMENT FUND, Capital Appreciation Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PREFERRED STOCKS-1.7% SHARES VALUE
-------------- ------------
AUTO RELATED-1.5% Ford Motor, Ser. A, Cum. Conv., $4.20... 4,500 $ 437,063
---------
MEDIA-.2% News Corp., A.D.S. Cum. $.40............ 2,500 50,000
---------
TOTAL PREFERRED STOCKS
(cost $485,651)...................... $ 487,063
=========
PRINCIPAL
SHORT-TERM INVESTMENTS-12.9% AMOUNT
-------------
U.S. TREASURY BILLS: 6.37%, 7/6/1995........................ $ 74,000 73,946
6.255%, 7/20/1995...................... 807,000 804,805
5.20%, 7/27/1995....................... 2,735,000 2,724,744
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $3,602,542).................... $ 3,603,495
==========
TOTAL INVESTMENTS (cost $24,199,717)........................................ 98.2% $ 27,475,474
====== ==========
CASH AND RECEIVABLES (NET).................................................. 1.8% $ 492,364
====== ==========
NET ASSETS.................................................................. 100.0% $ 27,967,838
====== ==========
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See independent accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
For the six months ended June 30, 1995, the first half of the Fund's
fiscal year, the total return for the Growth and Income Portfolio of the
Dreyfus Variable Investment Fund was 34.65%.* This compares with a return of
20.19% for the Standard and Poor's 500 Composite Stock Price Index.** The
portfolio's performance does not reflect the deduction of additional charges
imposed in connection with investing in variable annuity contracts and
variable life insurance policies.
There were several reasons for this total return of the Fund in the first
six months of 1995. First, it was a favorable period for the overall stock
market. Second, the Fund was invested in several dozen holdings. We believe
this degree of concentration provides a combination of portfolio
diversification with a substantial sensitivity to the performance of
individual holdings. Third, the Fund was fortunate to have several individual
investments that performed quite well during the period. With a relatively
concentrated portfolio, the Fund's performance is sensitive to the
performance of the larger individual holdings.
The year 1995 began with the U.S. economy in a boom to which the Federal
Reserve Board had responded by raising interest rates. The Fed tightened for
the seventh time in a year in February 1995, but then fears of further
Federal Reserve tightening eased as the economy weakened. The stock market
rose during these months because of a combination of a high level of earnings
and falling long-term interest rates. The dollar was weak during the period,
which aided the earnings of multinational companies. A currency decline often
drives inflation substantially higher. This did not occur in this instance
because the dollar was not weak against the currencies of our major trading
partners in North America and South America. There were also offsets from
such disinflationary pressures as corporate downsizing, strong productivity
growth and price-sensitive behavior among consumers. Thus the stock market
enjoyed the benefit to earnings of a weak dollar against the yen and the
European currencies without any associated inflation surge that might have
pushed up interest rates and weakened the valuation of the stock market.
There are several long-term positive forces that have provided a
supportive background for the financial markets. First, the trend of
inflation has remained favorable in the last several years. Second, we are in
the early stages of a key demographic shift as the baby boom generation
begins to focus on the need for a permanent program of saving to provide for
future retirement income. Third, U.S. productivity growth in manufacturing
has been favorable. Finally, a broad consensus has begun to emerge on the
importance of limiting the U.S. budget deficit.
We believe that the period of strongest earnings growth in the U.S.
economy is behind us. Corporate cost-cutting is very far advanced in many
companies as are the benefits of refinancing high-cost debt. The rate of
growth of the U.S. economy is decelerating. Many multinational companies have
already reaped a significant portion of the profit benefits of a decline in
the dollar. Thus we believe that strong profit growth will become
increasingly scarce over the next year. Many of the largest positions in the
Portfolio are companies that we believe have a good chance of sustaining
strong earnings growth even in this more challenging environment. While
overall market valuations have risen, we continue to find good companies
available in the stock market at reasonable valuation levels.
We appreciate the willingness of our shareholders to invest in the Growth
and Income Portfolio of the Dreyfus Variable
Investment Fund. We will endeavor to realize a favorable return for
shareholders commensurate with a reasonable level of risk. There is likely to
be an alternation of periods where the net asset value of the Fund declines
and periods when the net asset value rises. Our focus is on achieving a
satisfactory return for the shareholders over a longer period of time.
Very truly yours,
[Richard B. Hoey signature logo]
Richard B. Hoey
Portfolio Manager
July 26, 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.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
STATEMENT OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS-74.6% SHARES VALUE
--------------------------
<S> <C> <C> <C>
BASIC INDUSTRIES-11.4% Corning................................ 20,000 $ 655,000
Praxair................................ 20,000 500,000
Weyerhaeuser........................... 10,000 471,250
Witco.................................. 20,000 645,000
---------
2,271,250
---------
CAPITAL GOODS-11.9% AlliedSignal............................ 10,000 445,000
Coltec Industries....................... (a) 20,000 345,000
Litton Industries....................... (a) 10,000 368,750
USA Waste Service....................... (a) 50,000 775,000
York International...................... 10,000 450,000
---------
2,383,750
---------
CONSUMER-8.7% Lowe's Cos.............................. 15,000 448,125
OfficeMax............................... (a) 15,000 418,125
Seagram Co. Ltd......................... 25,000 865,625
---------
1,731,875
---------
ENERGY-3.5% Sonat Offshore Drilling................. 10,000 287,500
UGI..................................... 20,000 422,500
---------
710,000
---------
FINANCIAL-BROKERAGE-8.2% Bank of Boston......................... 20,000 750,000
First Security......................... 10,000 280,000
Midlantic.............................. 15,000 600,000
---------
1,630,000
---------
HEALTH CARE-3.5% McKesson............................... 3,000 140,250
Teva Pharmaceutical Industries ADR..... 15,000 562,500
---------
702,750
---------
INSURANCE-6.4% Liberty................................ 15,000 408,750
TIG Holdings........................... 20,000 460,000
USF&G.................................. 25,000 406,250
---------
1,275,000
---------
MEDIA/ENTERTAINMENT-2.1% Time Warner............................ 10,000 411,250
--------
MINING & METALS-2.9% TVX Gold............................... (a) 80,000 575,592
--------
OIL & GAS DRILLING-2.3%. Occidental Petroleum................... 20,000 457,500
--------
TECHNOLOGY-9.0% HNC Software........................... (a) 7,500 159,375
Integrated Silicon Solution............ (a) 6,000 313,500
Thermo Electron........................ (a) 20,000 805,000
UUNET Technologies..................... (a) 19,000 522,500
---------
1,800,375
--------
TELECOMMUNICATIONS-2.3% Premisys Communications................ (a) 7,000 451,938
--------
UTILITIES-ELECTRIC POWER-2.4% Entergy................................ 20,000 482,500
---------
TOTAL COMMON STOCKS
(cost $13,662,954)................... $14,883,780
===========
DREYFUS VARIABLE INVESTMENT FUND, Growth and Income Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
CONVERTIBLE PREFERRED STOCKS-11.8% SHARES VALUE
-------------- ------------
FINANCIAL-BROKERAGE-3.5% Citicorp, PERCS Cum., $1.22 15,000 $ 303,750
Merryland & Investment, Ser. C., Cum., $2.15 15,000 403,125
--------
706,875
--------
REAL ESTATE-4.9% Oasis Residential, Ser A., Cum., $2.25 20,000 505,000
Tanger Factory Outlet Centers, Cum., $1.66...... 20,000 465,000
-------
970,000
-------
TELECOMMUNICATIONS-3.4% MFS Communications, Cum., $2.68 20,000 690,000
-------
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $2,353,831).................... $ 2,366,875
===========
PRINCIPAL
CONVERTIBLE CORPORATE BONDS-2.3% AMOUNT
-------------
CAPITAL GOODS-2.3%.... Rohr, 7.75%, 5/15/2004
(cost $367,500)...................... $ 300,000 $ 462,750
============
SHORT-TERM INVESTMENTS-14.2%
U.S. TREASURY BILLS: 6.31%, 8/3/1995........................ $ 100,000 $ 99,520
6.15%, 8/17/1995....................... 1,008,000 1,000,863
5.36%, 8/24/1995....................... 631,000 625,895
5.38%, 9/21/1995....................... 1,115,000 1,101,196
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $2,827,789).................... $ 2,827,474
===========
TOTAL INVESTMENTS (cost $19,212,074)........................................ 102.9% $ 20,540,879
======= ===========
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (2.9%) $ (579,645)
======= ===========
NET ASSETS.................................................................. 100.0% $ 19,961,234
======= ===========
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See independent accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that, due to an infusion of additional investor
capital, the International Equity Portfolio of the Dreyfus Variable
Investment Fund was able to take more significant positions in a number of
equity markets during the six-month fiscal period ended June 30, 1995.
Holdings have been increased in almost every one of the 17 markets in
which your Portfolio holds a stake. Principal areas of added investment were
Australia, France, Japan, the Netherlands, Singapore, Switzerland and the
United Kingdom.
The half-year's results, while on the positive side, were affected by a
series of major events that buffeted stock markets around the world. These
included the aftermaths of the earthquake in Kobe, Japan and of the Mexican
peso devaluation, the inordinate strength of the yen against the U.S. dollar
and the French elections.
Fortunately, a number of these developments turned out to have their
constructive side for equity investors. The economic effects of the Japanese
earthquake were not as devastating as first seemed likely. Mexico began to
recover from its economic earthquake more swiftly than anticipated, with
beneficial effects on many Latin American markets. The Southeast Asian
markets, after steep declines, began to rally. And the French Presidential
election put an end to the Socialist regime.
For the six months ended June 30, the Portfolio produced a total return
of 1.42%.* This compares with 2.60% for the Morgan Stanley Capital
International Europe, Australasia and Far East Index (EAFE Registration Mark).
** The Portfolio's performance does not reflect the deduction of additional
charges imposed in connection with investing in variable annuity contracts
and variable life insurance policies.
In view of continuing uncertainties on the international scene, we were
cautious in investing the additional funds received during the past six
months. As part of this stance, a hedge transaction of yen against U.S.
dollars was held by the Portfolio but expired on April 12 and was not rolled
over.
More recently, the international markets have been supported by lower
levels of interest rates. Recent actions by the U.S. Federal Reserve Board to
lower short-term rates should accentuate this trend.
The Hong Kong market remained generally depressed during the period by
the slack real estate market and by speculation over succession to power in
China in the event of the death of the long-time "paramount leader." Yet
toward the end of the period, Hong Kong began to improve. Malaysia followed a
roughly similar course, but strengthened after the general election that
confirmed the incumbent government. Also, in both markets, international
capital began to return on a modest scale.
Australia has been a strong market for some time now, with impressive
rates of economic growth and corporate profits. While such ebullience carries
risk, we have high hopes for our Australian investments, which now represent
nearly 5% of the overall portfolio.
The European markets continue to be disappointing. This is due to the
continuing high rates of unemployment in Western
Europe, plus the weakness of the U.S. dollar. However, with the new
conservative government in Paris, prospects have improved. In addition, on
the corporate level there has been earnings growth, paydown of debt,
restructuring of base costs and expansion of investment.
The U.K. market, where we have placed over 18% of the portfolio, has been
stable, and pulled upwards by the strong performance of the U.S. stock
market.
The troublesome events that affected international markets earlier in the
year appear to be subsiding. In our opinion, the long-term rationale for
holding international equities remains fully valid.
Sincerely,
[Sir William Vincent signature logo]
Sir William Vincent
Portfolio Manager
International Equity Portfolio
M&G Investment Management Ltd.
July 12, 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 Index (EAFE Registration Mark) 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.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS-81.1% SHARES VALUE
------------ ------------
<S> <C> <C> <C>
AUSTRALIA-5.1% Boral..................................... 25,000 $ 61,770
Broken Hill Proprietary................... 4,000 49,189
Great Central Mines N.L. ..............(a) 30,000 66,882
Mayne Nickless............................ 6,000 24,750
------------
202,591
------------
AUSTRIA-.3% Burgenland Holding........................ 400 13,757
------------
FRANCE-4.5% BUT S.A................................... 260 58,017
Roussel-Uclaf............................. 210 32,845
Sanofi S.A................................ 800 44,380
Vallourec Usines a Tubes de Lorraine Escaut
et Vallourec Reunies.................(a) 850 42,658
------------
177,900
------------
GERMANY-2.6% BASF AG................................... 125 26,728
Deutsche Bank AG....................... 800 38,914
VEBA AG................................ 100 39,342
------------
104,984
------------
HONG KONG-4.9% China Light & Power....................... 6,000 30,863
Consolidated Electric Power Asia.......... 20,000 46,397
HSBC Holdings PLC......................... 1,600 20,523
Shun Tak Holdings......................... 70,000 55,638
Swire Pacific, Cl. A...................... 5,500 41,939
------------
195,360
------------
INDONESIA-.7% PT Indofood Sukses Makmur..............(a) 7,000 30,175
------------
ITALY-1.5% Caffaro S.P.A............................. 25,000 27,097
Edison S.P.A. ............................ 7,200 32,186
------------
59,283
------------
JAPAN-22.0% Amway Japan............................ 1,000 36,600
DDI.................................... 9 72,255
East Japan Railway..................... 7 35,950
Hokkaido Electric Power................ 2,000 53,837
Kinden................................. 2,000 37,308
Kurimoto............................... 6,000 63,329
Mitsubishi Bank........................ 2,000 43,211
Mitsui Fudosan......................... 4,000 45,856
NEC.................................... 4,000 43,873
NGK Spark Plug......................... 2,000 22,196
Nippon Express......................... 4,000 36,836
Nippon Steel........................... 7,000 22,810
Nippon Telegraph & Telephone........... 6 50,295
P.S.................................... 2,200 39,740
Seven Eleven Japan..................... 1,000 71,665
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
------------ ------------
JAPAN (CONTINUED) Sharp.................................. 5,000 $ 66,116
Sumitomo Bank.......................... 2,000 34,711
Tokio Marine & Fire Insurance.......... 4,000 45,903
Toshoku................................ 4,000 19,126
Ushio.................................. 3,000 34,215
------------
875,832
------------
MALAYSIA-1.8% Hong Leong Credit Berhad.................. 3,000 15,135
Leader Universal Holdings Berhad.......... 4,666 16,651
Renong Berhad............................. 22,000 40,968
------------
72,754
------------
NETHERLANDS-3.1% Akzo Nobel............................. 400 47,855
OCE-Van Der Grinten N.V................ 700 39,522
Philips Electronics N.V................ 850 36,021
------------
123,398
------------
PORTUGAL-.7% Sumolis Companhia Industrial de Frutas
e Bebidas S.A. ......................... 2,400 27,834
------------
SINGAPORE-2.6% Fraser & Neave............................ 2,000 23,049
Oversea-Chinese Banking................... 4,000 44,381
Singapore Press Holdings.................. 2,400 35,906
------------
103,336
------------
SPAIN-3.4% Banco Bilbao Vizcaya S.A.................. 870 25,150
Compania Sevillana de Electricidad........ 5,600 34,508
Iberdrola S.A. ........................... 6,000 45,260
Repsol S.A. .............................. 1,000 31,514
------------
136,432
------------
SWITZERLAND-9.5% Alusuisse-Lonza Holding AG................ 90 56,813
Baloise Holdings.......................... 20 45,712
Compagnie Financiere Michelin..........(a) 175 77,710
Elektrowatt AG............................ 120 34,584
Landis & Gyr AG........................... 125 80,540
Zellweger Luwa AG......................(a) 95 81,890
------------
377,249
------------
UNITED KINGDOM-18.4% B.A.T. Industries PLC..................... 4,500 34,481
Booker PLC................................ 12,500 82,836
British Steel PLC......................... 26,000 71,135
British Telecommunications PLC............ 15,000 93,668
Cookson Group PLC......................... 11,000 42,581
Glaxo Wellcome PLC........................ 6,000 73,740
Hammerson PLC............................. 7,000 38,638
Harrisons & Crosfield PLC................. 30,000 67,623
Lucas Industries PLC...................... 24,000 72,067
RTZ PLC................................... 5,500 71,801
Royal Doulton PLC......................... 8,000 33,134
DREYFUS VARIABLE INVESTMENT FUND, International Equity Portfolio
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
------------ ------------
UNITED KINGDOM (CONTINUED) Smith (W.H.) Group PLC................... 10,000 $ 51,932
------------
733,636
------------
TOTAL COMMON STOCKS
(cost $ 3,176,874)...................... $3,234,521
============
PREFERRED STOCKS-3.3%
GERMANY-2.4% Fresenius AG.............................. 125 $ 84,419
Herlitz AG................................ 65 12,704
------------
97,123
------------
SWITZERLAND-.9% Merck AG.................................. 45 34,676
------------
TOTAL PREFERRED STOCKS
(cost $ 127,151)........................ $ 131,799
============
PRINCIPAL
CONVERTIBLE BONDS-.1% AMOUNT
------------
FRANCE; Sanofi S.A., 4.00%, 1/1/2000
(cost $ 3,939).......................(b) $5,398 $ 4,070
============
SHORT-TERM INVESTMENTS-12.9%
UNITED STATES; U.S. Treasury Bills:
5.54%, 7/6/95........................... $77,000 $ 76,944
5.57%, 7/20/95.......................... 246,000 245,331
5.56%, 7/27/95.......................... 89,000 88,666
5.33%, 8/24/95.......................... 102,000 101,175
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $ 512,044)........................ $ 512,116
============
TOTAL INVESTMENTS (cost $3,820,008)............................................ 97.4% $3,882,506
============ ============
CASH AND RECEIVABLES (NET)..................................................... 2.6% $ 104,866
============ ============
NET ASSETS..................................................................... 100.0% $3,987,372
============ ============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
(b) Denominated in French Francs.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
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....... $36,250,022 $28,967,771 $15,345,422 $21,380,460
Cash................................... 398,835 908,246 308,416 383,436
Dividends and interest receivable...... 69,225 211,991 36,584 250,981
Receivable for investment securities sold --- --- --- 858,086
Receivable for futures variation
margin-Note 4(a)..................... --- 5,813 --- ---
Prepaid expenses and other assets...... 174 1,978 3,842 2,040
---------------- --------------- ------------- --------------
36,718,256 30,095,799 15,694,264 22,875,003
---------------- --------------- ------------- --------------
LIABILITIES:
Due to The Dreyfus Corporation......... $ 14,373 $ 18,563 $ 5,594 $ 11,269
Payable for investment securities purchased --- --- --- 1,000,000
Net unrealized depreciation on
forward currency exchange
contracts-Note 4(a).................. --- 218,347 --- ---
Payable for shares of
Beneficial Interest redeemed......... 393,561 --- 24,794 24,560
Accrued expenses and other liabilities. 29,184 17,593 20,905 22,733
---------------- --------------- ------------- --------------
437,118 254,503 51,293 1,058,562
---------------- --------------- ------------- -------------
NET ASSETS................................. $36,281,138 $29,841,296 $15,642,971 $21,816,441
================ =============== ============= ==============
REPRESENTED BY:
Paid-in capital........................ $36,280,507 $30,373,816 $15,202,070 $21,033,821
Accumulated undistributed
investment income-net................ --- 520,823 71,391 106,206
Accumulated undistributed net realized gain
(loss) on investments and foreign
currency transactions................ 631 (711,862) (15,843) 240,485
Accumulated net unrealized appreciation
(depreciation) on investments and translation
of assets and liabilities denominated in
foreign currencies [including $(2,173) net
unrealized (depreciation) on financial futures
for Managed Assets Portfolio]-Note 4(b).... --- (341,481) 385,353 435,929
---------------- --------------- ------------- --------------
NET ASSETS at value, applicable to outstanding
shares of Beneficial Interest........ $36,281,138 $29,841,296 $15,642,971 $21,816,441
================ =============== ============= ==============
SHARES OUTSTANDING (unlimited number of
$.001 par value shares authorized
for each series)....................... 36,280,507 2,432,515 1,257,833 1,884,476
=============== =============== ============= ==============
NET ASSET VALUE per share
(Net Assets divided by Shares Outstanding) $ 1.00 $12.27 $12.44 $11.58
=============== =============== ============= ==============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) JUNE 30, 1995 (UNAUDITED)
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....... $336,064,208 $ 27,475,474 $ 20,540,879 $ 3,882,506
Cash................................... 1,254,903 477,236 392,312 228,300
Receivable for investment securities sold 9,810,914 --- 994,303 30,746
Dividends and interest receivable...... 175,996 53,947 11,504 10,948
Prepaid expenses and other assets...... 3,363 262 39 40
Due from The Dreyfus Corporation....... --- --- --- 2,173
-------------- -------------- -------------- --------------
347,309,384 28,006,919 21,939,037 4,154,713
-------------- -------------- -------------- ---------------
LIABILITIES:
Due to The Dreyfus Corporation......... $ 198,752 $ 17,201 $ 11,151 $ ---
Payable for investment securities purchased 7,437,473 --- 1,952,011 154,274
Payable for shares of Beneficial Interest redeemed --- --- 239 ---
Accrued expenses and other liabilities. 98,616 21,880 14,402 13,067
-------------- -------------- -------------- ---------------
7,734,841 39,081 1,977,803 167,341
-------------- -------------- -------------- ---------------
NET ASSETS................................. $339,574,543 $ 27,967,838 $ 19,961,234 $ 3,987,372
============== ============== ============== ===============
REPRESENTED BY:
Paid-in capital........................ $296,268,315 $ 24,444,422 $ 18,034,275 $ 3,941,288
Accumulated undistributed investment
income-net........................... 970,495 287,474 --- 23,311
Accumulated distributions in excess of investment
income-net........................... --- --- (293) ---
Accumulated undistributed net realized gain
(loss) on investments and foreign
currency transactions................ 2,284,031 (39,815) 598,447 (39,860)
Accumulated net unrealized appreciation on
investments and translation of assets and
liabilities denominated in foreign
currencies-Note 4(b)....................... 40,051,702 3,275,757 1,328,805 62,633
-------------- -------------- -------------- --------------
--------------
NET ASSETS at value, applicable to outstanding
shares of Beneficial Interest.......... $339,574,543 $ 27,967,838 $ 19,961,234 $ 3,987,372
============== ============== ============== ==============
SHARES OUTSTANDING (unlimited number of
$.001 par value shares authorized for
each series)............................... 8,095,288 1,776,799 1,249,497 327,066
============== ============== ============== ==============
NET ASSET VALUE per share
(Net Assets divided by Shares Outstanding) $41.95 $15.74 $15.98 $12.19
============== ============== ============== ==============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
MONEY MANAGED ZERO COUPON QUALITY
MARKET ASSETS 2000 BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest............................. $1,066,490 $ 657,208 $ 423,876 $ 630,490
Cash dividends (net of $2,739 foreign
taxes withheld at source for the
Managed Assets Portfolio)........ --- 46,766 --- ---
------------ ------------ ------------ ------------
TOTAL INCOME........................... 1,066,490 703,974 423,876 630,490
------------ ------------ ------------ ------------
EXPENSES-NOTE 2(E):
Investment advisory fee-Note 3(a).... $ 84,576 $ 56,517 $ 28,797 $ 55,382
Sub-investment advisory fee-Note 3(a) --- 56,517 --- ---
Prospectus and shareholders' reports. 11,962 5,116 2,006 1,737
Custodian fees....................... 7,604 7,802 5,068 5,638
Auditing fees........................ 2,877 2,282 7,003 6,224
Organization expenses................ 2,232 3,195 3,608 3,771
Trustees' fees and expenses-Note 3(b) 1,328 1,363 580 575
Shareholder servicing costs.......... 386 214 211 153
Registration fees.................... 203 100 1,137 2,235
Legal fees........................... --- --- 300 ---
Miscellaneous........................ 882 1,064 1,717 2,278
------------ ------------ ------------ ------------
112,050 134,170 50,427 77,993
Less-expense reimbursement from
The Dreyfus Corporation due to
undertakings-Note 3(a)............... 10,251 --- 4,371 10,017
------------ ------------ ------------ ------------
TOTAL EXPENSES................. 101,799 134,170 46,056 67,976
------------ ------------ ------------ ------------
INVESTMENT INCOME-NET.......... 964,691 569,804 377,820 562,514
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments (includ-
ing foreign currency transactions)-Note 4(a) $ 562 $ (483,625) $ (15,424) $ 341,701
Net realized (loss) on financial
futures-Note 4(a).................... --- (425,692) --- ---
---------- ------------ ------------ ------------
NET REALIZED GAIN (LOSS)............. 562 (909,317) (15,424) 341,701
Net unrealized appreciation on investments and
translation of assets and liabilities
denominated in foreign currencies
(including $31,927 net unrealized
appreciation on financial futures for
the Managed Assets Portfolio).............. --- 105,683 1,066,720 1,187,536
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS..... 562 (803,634) 1,051,296 1,529,237
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $ 965,253 $ (233,830) $1,429,116 $2,091,751
=========== ============= =========== ===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF OPERATIONS (CONTINUED) SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
CAPITAL GROWTH AND INTERNATIONAL
SMALL CAP APPRECIATION INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.................................... $ 1,237,139 $ 108,016 $ 79,865 $ 15,617
------------- -------------- ------------- ------------
Cash dividends (net of $6,820, $30 and $3,862
foreign taxes withheld at source for the Capital
Appreciation, Growth and Income and
International Equity Portfolios, respectively)
Unaffiliated issuers.................. 747,216 265,176 90,185 28,527
Affiliated issuers.................... 9,000 --- --- ---
------------- -------------- ------------- -----------
TOTAL CASH DIVIDENDS.............. 756,216 265,176 90,185 28,527
------------- -------------- ------------- -----------
TOTAL INCOME.......................... 1,993,355 373,192 170,050 44,144
------------- -------------- ------------- -----------
EXPENSES-NOTE 2(E):
Investment advisory fee-Note 3(a)........... $ 943,006 $ 57,076 $ 28,844 $ 8,007
Sub-investment advisory fee-Note 3(a)....... --- 20,755 --- ---
Registration fees........................... 27,841 2,932 5,799 866
Custodian fees.............................. 30,406 2,629 2,708 11,010
Prospectus and shareholders' reports........ 29,778 2,782 1,924 1,156
Trustees' fees and expenses-Note 3(b)....... 12,278 878 375 8
Shareholder servicing costs................. 471 83 163 56
Auditing fees............................... 10,538 5,309 5,019 4,966
Legal fees.................................. --- 791 307 ---
Miscellaneous............................... 3,946 283 384 263
------------- ------------ ------------- -----------
1,058,264 93,518 45,523 26,332
Less-expense reimbursement from The Dreyfus
Corporation due to undertakings-Note 3(a) --- 6,445 8,655 12,746
------------- -------------- ------------- -----------
TOTAL EXPENSES........................ 1,058,264 87,073 36,868 13,586
------------- -------------- ------------- -----------
INVESTMENT INCOME-NET................. 935,091 286,119 133,182 30,558
------------- -------------- ------------- -----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions (including foreign
currency transactions).................. $ 3,844,934 $ (40,487) $ 611,300 $ (27,381)
Short sale transactions..................... (262,249) --- (13,375) ---
------------- -------------- ------------- -----------
NET REALIZED GAIN (LOSS).................... 3,582,685 (40,487) 597,925 (27,381)
------------- -------------- ------------- -----------
Net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies:
Unaffiliated issuers.................. 34,503,759 3,101,291 1,371,822 80,950
Affiliated issuers.................... (194,831) --- --- ---
------------- -------------- ------------- -----------
34,308,928 3,101,291 1,371,822 80,950
------------- -------------- ------------- -----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.................... 37,891,613 3,060,804 1,969,747 53,569
------------- -------------- ------------- ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..................... $38,826,704 $ 3,346,923 $ 2,102,929 $ 84,127
============= ============== =========== ===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET PORTFOLIO MANAGED ASSETS PORTFOLIO
------------------------------------ ------------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED) 1994 (UNAUDITED)
-------------- ------------------- -------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net............... $ 1,006,418 $ 964,691 $ 745,232 $ 569,804
Net realized gain (loss) on investments,
foreign currency transactions and
financial futures.................... 40 562 146,575 (909,317)
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities denominated in foreign
currencies for the period............ --- --- (1,091,304) 105,683
-------------- ------------------- -------------- -------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS..... 1,006,458 965,253 (199,497) (233,830)
-------------- ------------------- -------------- -------------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.......... (1,000,523) (970,586) (769,916) ---
In excess of investment income-net.. --- --- (48,981) ---
-------------- ------------------- -------------- -------------------
TOTAL DIVIDENDS................... (1,000,523) (970,586) (818,897) ---
-------------- ------------------- -------------- -------------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....... 141,994,565 (1) 58,742,510 (1) 26,699,972 4,541,886
Dividends reinvested................ 1,000,523 (1) 970,586 (1) 818,897 ---
Cost of shares redeemed............. (115,923,303)(1) (58,155,028)(1) (3,947,678) (4,976,282)
-------------- ------------------- -------------- -------------------
INCREASE (DECREASE) IN NET
ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS......... 27,071,785 1,558,068 23,571,191 (434,396)
-------------- ------------------- -------------- -------------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS.................. 27,077,720 1,552,735 22,552,797 (668,226)
NET ASSETS:
Beginning of period................. 7,650,683 34,728,403 7,956,725 30,509,522
-------------- ------------------- -------------- -------------------
End of period....................... $ 34,728,403 (2) $ 36,281,138 $ 30,509,522 (3) $ 29,841,296 (3)
================ =================== =============== ===================
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 2,094,088 371,833
Shares issued for dividends reinvested............................... 67,318 ---
Shares redeemed...................................................... (310,779) (405,665)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... 1,850,627 (33,832)
============== ==============
</TABLE>
(1) $1.00 per share.
(2) Includes undistributed investment income-net; $5,895 in 1994.
(3) Includes distribution in excess of investment income-net; $(48,981) in
1994 and undistributed investment income-net;
$520,823 in 1995.
See independent accountants' review report and 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 SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED) 1994 (UNAUDITED)
--------------- ------------------- --------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net............ $ 522,791 $ 377,820 $ 649,784 $ 562,514
Net realized gain (loss) on investments --- (15,424) (101,063) 341,701
Net unrealized appreciation
(depreciation) on investments for
the period..................... (791,423) 1,066,720 (776,871) 1,187,536
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS...... (268,632) 1,429,116 (228,150) 2,091,751
----------- ----------- ---------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............ (519,948) (309,215) (645,868) (461,105)
Net realized gain on investments. (7,541) --- (11,191) ---
----------- ----------- ----------- -----------
TOTAL DIVIDENDS................ (527,489) (309,215) (657,059) (461,105)
----------- ----------- ----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.... 8,129,045 5,428,373 10,900,540 8,709,026
Dividends reinvested............. 479,850 311,756 657,134 461,105
Cost of shares redeemed.......... (2,595,464) (2,130,508) (2,134,797) (2,228,475)
----------- ----------- ----------- -----------
INCREASE IN NET ASSETS
FROM BENEFICIAL
INTEREST TRANSACTIONS...... 6,013,431 3,609,621 9,422,877 6,941,656
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 5,217,310 4,729,522 8,537,668 8,572,302
NET ASSETS:
Beginning of period.............. 5,696,139 10,913,449 4,706,471 13,244,139
----------- ----------- ----------- -----------
End of period.................... $10,913,449 (1) $15,642,971 (1) $13,244,139 (2) $21,816,441 (2)
============= =============== ============== ==============
SHARES SHARES SHARES SHARES
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold...................... 683,960 452,990 991,178 789,318
Shares issued for dividends reinvested 40,904 26,201 61,022 41,975
Shares redeemed.................. (220,025) (179,180) (193,286) (204,251)
----------- ----------- ----------- ----------
NET INCREASE IN
SHARES OUTSTANDING......... 504,839 300,011 858,914 627,042
=========== =========== ============ ===========
(1) Includes undistributed investment income-net; $2,786 in 1994 and $71,391 in 1995.
(2) Includes undistributed investment income-net; $4,797 in 1994 and $106,206 in 1995.
</TABLE>
See independent accountants' review report and 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 SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED) 1994 (UNAUDITED)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
-------------------
OPERATIONS:
Investment income-net............ $ 765,642 $ 935,091 $ 269,727 $ 286,119
Net realized gain (loss) on investments (812,026) 3,582,685 588 (40,487)
Net unrealized appreciation on
investments for the period..... 3,743,892 34,308,928 93,162 3,101,291
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.. 3,697,508 38,826,704 363,477 3,346,923
----------- ----------- ----------- -----------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net....... (727,613) --- (269,734) ---
From net realized gain on investments (720,564) --- --- ---
In excess of net realized gain
on investments.................
(481,344) --- --- ---
----------- ----------- ----------- -----------
TOTAL DIVIDENDS................ (1,929,521) --- (269,734) ---
----------- ----------- ----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.... 158,015,337 135,104,058 13,455,892 10,178,623
Dividends reinvested............. 1,929,521 --- 269,733 ---
Cost of shares redeemed.......... (6,835,267) (7,571,220) (1,471,097) (1,676,005)
----------- ----------- ----------- -----------
INCREASE IN NET ASSETS
FROM BENEFICIAL
INTEREST TRANSACTIONS................ 153,109,591 127,532,838 12,254,528 8,502,618
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 154,877,578 166,359,542 12,348,271 11,849,541
NET ASSETS:
Beginning of period.............. 18,337,423 173,215,001 3,770,026 16,118,297
----------- ----------- ----------- -----------
End of period.................... $173,215,001 (1) $339,574,543 (1) $16,118,297 (2) $27,967,838 (2)
=========== =========== =========== ===========
SHARES SHARES SHARES SHARES
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold...................... 4,347,955 3,548,409 1,004,793 693,794
Shares issued for dividends reinvested 52,997 --- 20,097 ---
Shares redeemed.................. (190,260) (196,179) (110,009) (115,921)
----------- ----------- ----------- -----------
NET INCREASE IN
SHARES OUTSTANDING......... 4,210,692 3,352,230 914,881 577,873
=========== =========== =========== ===========
(1) Includes undistributed investment income-net; $35,405 in 1994 and $970,495 in 1995.
(2) Includes undistributed investment income-net; $1,355 in 1994 and $287,474 in 1995.
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
GROWTH AND INCOME PORTFOLIO INTERNATIONAL EQUITY PORTFOLIO
------------------------------------- -------------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995
1994(1) (UNAUDITED) 1994(1) (UNAUDITED)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net............ $ 22,787 $ 133,182 $ 11,219 $ 30,558
Net realized gain (loss) on investments
and foreign currency transactions 7,824 597,925 (12,479) (27,381)
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities denominated in foreign
currencies for the period............ (43,017) 1,371,822 (18,317) 80,950
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS...................... (12,406) 2,102,929 (19,577) 84,127
------------ ----------- ----------- -----------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net....... (22,729) (133,533) (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) (133,533) (18,466) ---
----------- ----------- ----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.... 1,053,630 20,356,799 1,120,503 3,102,292
Dividends reinvested............. 30,031 133,533 18,466 ---
Cost of shares redeemed.......... (1,330) (3,538,388) (12,347) (287,626)
----------- ----------- ----------- -----------
INCREASE IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 1,082,331 16,951,944 1,126,622 2,814,666
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 1,039,894 18,921,340 1,088,579 2,898,793
NET ASSETS:
Beginning of period.............. --- 1,039,894 --- 1,088,579
----------- ----------- ----------- -----------
End of period.................... $ 1,039,894 (2) $19,961,234 (2) $1,088,579 (3) $3,987,372 (3)
=========== =========== =========== ===========
SHARES SHARES SHARES SHARES
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold...................... 84,474 1,385,652 90,002 260,892
Shares issued for dividends reinvested 2,457 8,573 1,536 --
Shares redeemed.................. (109) (231,550) (1,006) (24,358)
----------- ----------- ----------- -----------
NET INCREASE IN
SHARES OUTSTANDING......... 86,822 1,162,675 90,532 236,534
=========== =========== =========== ===========
(1) From May 2, 1994 (commencement of operations) to December 31, 1994.
(2) Includes undistributed investment income-net; $58 in 1994 and distributions in excess of investment income-net;
$(293) in 1995.
(3) Includes distributions in excess of investment income-net; $(7,247) in 1994 and undistributed investment income-net;
$23,311 in 1995.
</TABLE>
See independent accountants' review report and notes to financial statements.
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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
-------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (UNAUDITED)
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.0000 $1.0000 $1.0002 $1.0002 $1.0000 $1.0002
-------- -------- -------- -------- --------- --------
INVESTMENT OPERATIONS:
Investment income-net............... .0244 .0583 .0407 .0323 .0431 .0283
Net realized gain on investments.... -- .0002 -- -- -- --
-------- -------- -------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS.. .0244 .0585 .0407 .0323 .0431 .0283
-------- -------- -------- -------- --------- --------
DISTRIBUTIONS:
Dividends from investment income-net (.0244) (.0583) (.0407) (.0323) (.0429) (.0285)
Dividends from net realized gain
on investments.................... -- -- -- (.0002) -- --
-------- -------- -------- -------- --------- --------
TOTAL DISTRIBUTIONS............... (.0244) (.0583) (.0407) (.0325) (.0429) (.0285)
-------- -------- -------- -------- --------- --------
Net asset value, end of period...... $1.0000 $1.0002 $1.0002 $1.0000 $1.0002 $1.0000
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN................. 7.27%(2) 5.99% 4.14% 3.29% 4.37% 5.81%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .03%(2) -- -- -- -- .60%(2)
Ratio of net investment income to
average net assets................ 7.18%(2) 5.78% 4.10% 3.23% 4.62% 5.70%(2)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation............. 30.51%(2) 3.94% 4.25% 2.81% .88% .06%(2)
Net assets, end of period (000's Omitted) $741 $ 1,619 $790 $ 7,651 $34,728 $36,281
</TABLE>
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Annualized.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
MANAGED ASSETS PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
-------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (UNAUDITED)
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.11 $10.76 $10.14 $12.92 $12.37
-------- -------- -------- -------- --------- --------
INVESTMENT OPERATIONS:
Investment income-net............... .08 .41 .22 .20 .35 .23
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............... .11 .66 (.11) 2.71 (.56) (.33)
-------- -------- -------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS.. .19 1.07 .11 2.91 (.21) (.10)
-------- -------- -------- -------- --------- --------
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 period...... $10.11 $10.76 $10.14 $12.92 $12.37 12.27
======== ======== ========= ======== ========= ========
TOTAL INVESTMENT RETURN................. 1.85%(2) 10.60% 1.07% 28.59% (1.56%) (.81)%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 34%(2) 1.00% .97% .27% .25% .44%(2)
Ratio of net investment income to
average net assets................ 2.11%(2) 4.46% 1.88% 1.87% 3.54% 1.87%(2)
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% 11.32%(2)
Net assets, end of period (000's Omitted) $ 716 $2,179 $1,865 $7,957 $30,510 $29,841
</TABLE>
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Not annualized.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
ZERO COUPON 2000 PORTFOLIO
--------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
------------------------------------------------- JUNE 30, 1995
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (UNAUDITED)
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.45 $11.64 $11.77 $12.57 $11.39
-------- -------- -------- -------- --------- --------
INVESTMENT OPERATIONS:
Investment income-net............... .22 .76 .83 .79 .69 .40
Net realized and unrealized gain (loss)
on investments.................... .45 1.25 .15 .96 (1.18) .99
-------- -------- -------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS.. .67 2.01 .98 1.75 (.49) 1.39
-------- -------- -------- -------- --------- --------
DISTRIBUTIONS:
Dividends from investment
income-net........................ (.22) (.76) (.84) (.78) (.68) (.34)
Dividends from net realized gain
on investments.................... - (.06) (.01) (.17) (.01) -
-------- -------- -------- -------- --------- --------
TOTAL DISTRIBUTIONS............... (.22) (.82) (.85) (.95) (.69) (.34)
-------- -------- -------- -------- --------- --------
Net asset value, end of period...... $10.45 $11.64 $11.77 $12.57 $11.39 $12.44
======== ======== ======== ======== ========= ========
TOTAL INVESTMENT RETURN................. 20.09%(2) 20.09% 8.87% 15.19% (3.91%) 23.96%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets................ .70%(2) .72% .64% - - .72%(2)
Ratio of net investment income to
average net assets................ 8.03%(2) 7.41% 7.15% 6.21% 6.04% 5.90%(2)
Decrease reflected in above
expense ratios due to undertakings
by The Dreyfus Corporation.......... 81.13%(2) 5.04% 2.28% 2.43% 1.05% .07%(2)
Portfolio Turnover Rate............. - 42.82% 3.08% 106.35% - 28.84%(3)
Net assets, end of period (000's Omitted) $ 155 $1,296 $1,362 $5,696 $10,913 $15,643
</TABLE>
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
QUALITY BOND PORTFOLIO
--------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
------------------------------------------------- JUNE 30, 1995
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (UNAUDITED)
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.01 $10.67 $10.94 $11.81 $10.53
-------- -------- -------- -------- --------- --------
INVESTMENT OPERATIONS:
Investment income-net............... .23 .70 .92 .76 .73 .35
Net realized and unrealized gain
(loss) on investments............. .01 .66 .30 .88 (1.27) 1.00
-------- -------- -------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS.. .24 1.36 1.22 1.64 (.54) 1.35
-------- -------- -------- -------- --------- --------
DISTRIBUTIONS:
Dividends from investment income-net (.23) (.70) (.92) (.76) (.73) (.30)
Dividends from net realized gain
on investments.................... - - (.03) (.01) (.01) -
-------- -------- -------- -------- --------- --------
TOTAL DISTRIBUTIONS............... (.23) (.70) (.95) (.77) (.74) (.30)
-------- -------- -------- -------- --------- --------
Net asset value, end of period...... $10.01 $10.67 $10.94 $11.81 $10.53 $11.58
======== ======== ======== ======== ========= ========
TOTAL INVESTMENT RETURN................. 7.12%(2) 14.12% 12.09% 15.33% (4.59%) 26.24%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .15%(2) - - - - .80%(2)
Ratio of net investment income to
average net assets................ 7.20%(2) 7.52% 8.54% 6.51% 7.03% 6.60%(2)
Decrease reflected in above
expense ratios due to undertakings
by The Dreyfus Corporation.......... 137.05%(2) 13.13% 5.33% 3.51% 1.20% .12%(2)
Portfolio Turnover Rate............. - - 9.39% 110.62% 64.80% 140.78%(3)
Net assets, end of period (000's Omitted) $59 $ 410 $ 405 $4,706 $13,244 $21,816
</TABLE>
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
SMALL CAP PORTFOLIO
--------------------------------------------------------------------------
*N* SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
-------------------------------------------------
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (UNAUDITED)
-------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.21 $20.60 $22.71 $34.45 $36.52
-------- -------- -------- -------- --------- --------
INVESTMENT OPERATIONS:
Investment income-net............... .21(2) .14(2) .18(2) .14 .17 .11
Net realized and unrealized gain
on investments.................... - 15.85(2) 13.10(2) 14.93 2.50 5.32
-------- -------- -------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS.. .21(2) 15.99(2) 13.28(2) 15.07 2.67 5.43
-------- -------- -------- -------- --------- --------
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 period...... $10.21 $20.60 $22.71 $34.45 $36.52 $41.95
======== ======== ======== ======== ========= ========
TOTAL INVESTMENT RETURN................. 2.10%(3) 159.73% 71.28% 68.31% 7.75% 14.87%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 34%(3) 1.16% .94% .25% 55% .42%(3)
Ratio of net investment income to
average net assets................ 2.10%(3). 77% .76% .89% 1.18% .37%(3)
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% 49.06%(3)
Net assets, end of period (000's Omitted) $ 36 $1,554 $2,679 $18,337 $173,215 $ 339,575
</TABLE>
(1) From August 31, 1990 (commencement of operations) to December 31, 1990.
(2) Based on average shares outstanding.
(3) Not annualized.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
CAPITAL APPRECIATION PORTFOLIO
-------------------------------------------------
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
----------------------------
PER SHARE DATA: 1993(1) 1994 (UNAUDITED)
------- ------- ------------
<S> <C> <C> <C>
Net asset value, beginning of period....................... $12.50 $13.27 $13.44
------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net...................................... .08 .23 .16
Net realized and unrealized gain on investments............ .76 .17 2.14
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS......................... .84 .40 2.30
------- ------- -------
DISTRIBUTIONS;
Dividends from investment income-net....................... (.07) (.23) -
------- ------- -------
Net asset value, end of period............................. $13.27 $13.44 $15.74
======= ======== =======
TOTAL INVESTMENT RETURN........................................ 6.74%(2) 3.04% 17.11%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... .28%(2) .25% .42%(2)
Ratio of net investment income to average net assets....... 1.89%(2) 2.99% 1.37%(2)
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation............................... 3.67%(2) .86% .03%(2)
Portfolio Turnover Rate.................................... .01%(2) .12% 1.13%(2)
Net assets, end of period (000's Omitted).................. $3,770 $16,118 $27,968
</TABLE>
(1) From April 5, 1993 (commencement of operations) to December 31, 1993.
(2) Not annualized.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
GROWTH AND INCOME PORTFOLIO
------------------------------------
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995
PER SHARE DATA: 1994(1) (UNAUDITED)
------- -------------
<S> <C> <C>
Net asset value, beginning of period.................................. $12.50 $11.98
------- -------
INVESTMENT OPERATIONS:
Investment income-net................................................. .28 .14
Net realized and unrealized gain (loss) on investments ............... (.43) 4.00
------- -------
TOTAL FROM INVESTMENT OPERATIONS.................................... (.15) 4.14
------- -------
DISTRIBUTIONS:
Dividends from investment income-net.................................. (.28) (.14)
Dividends from net realized gain on investments....................... (.09) -
------- -------
TOTAL DISTRIBUTIONS................................................. (.37) (.14)
------- -------
Net asset value, end of period........................................ $11.98 $15.98
======= =======
TOTAL INVESTMENT RETURN................................................... (1.22)%(2) 34.65%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... .22%(2) .47%(2)
Ratio of net investment income to average net assets.................. 2.25%(2) 1.72%(2)
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation.......................................... 1.28%(2) .11%(2)
Portfolio Turnover Rate............................................... 237.09%(2) 194.28%(2)
Net assets, end of period (000's Omitted)............................. $1,040 $19,961
</TABLE>
(1) From May 2, 1994 (commencement of operations) to December 31, 1994.
(2) Not annualized.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
------------------------------------
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995
PER SHARE DATA: 1994(1) (UNAUDITED)
------- ------------
<S> <C> <C>
Net asset value, beginning of period.................................. $12.50 $12.02
------- -------
INVESTMENT OPERATIONS:
Investment income-net................................................. .15 .15
Net realized and unrealized gain (loss) on investments and foreign
currency transactions............................................... (.40) .02
------- -------
TOTAL FROM INVESTMENT OPERATIONS.................................... (.25) .17
------- -------
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 $12.19
======= =======
TOTAL INVESTMENT RETURN................................................... (2.00)%(2) 1.42%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... .23%(2) .63%(2)
Ratio of net investment income to average net assets.................. 1.11%(2) 1.42%(2)
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation.......................................... 1.70%(2) .59%(2)
Portfolio Turnover Rate............................................... 16.75%(2) 28.13%(2)
Net assets, end of period (000's Omitted)............................. $1,089 $3,987
</TABLE>
(1) From May 2, 1994 (commencement of operations) to December 31, 1994.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
The Fund is registered under the Investment Company Act of 1940 (the "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 Fund
issues eight classes of shares of Beneficial Interest: 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 Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a
direct subsidiary of Mellon 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. Premier Mutual Fund Services, Inc. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold
without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc.
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 per share, 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 (the "Plan") with the Court. The Plan
stipulated that the assets and liabilities of the Account would 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.
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 Life's restructured insurance
liabilities. The stock of MBLLAC was assigned to the Stock Trust and the
Commissioner was designated as Trustee.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
As of June 30, 1995, Dreyfus held the following shares:
Money Market Portfolio........... 26,188.................... Quality Bond Portfolio 2,813
Managed Assets Portfolio......... 2,332.................... Small Cap Portfolio 4,511
Zero Coupon 2000 Portfolio....... 2,780.................... International Equity Portfolio 81,530
</TABLE>
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. Investments denominated
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 judgement 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 Portfolios' securities) are carried at fair
value as determined by the Service, based on 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.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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) AFFILIATED ISSUERS: Issuers in which the Fund held 5% or more of the
outstanding voting securities are defined as "affiliated" in the Act.
(e) EXPENSES: Expenses directly attributable to each series are charged
to that series' operations; expenses which are applicable to all series, are
allocated among them.
(f) 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 gains
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 may make 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.
(g) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the 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.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 TRANSAC
TIONS 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.
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.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
However, Dreyfus has undertaken, with respect to the Money Market
Portfolio, from January 1, 1995 through February 1, 1995,
to reduce the investment advisory fee paid by the series, to the extent that
the series' aggregate expenses (excluding certain expenses as described
above) exceeded specified annual percentages of the series' average daily net
assets. With respect to the Managed Assets, Capital Appreciation and Zero
Coupon 2000 Portfolios, Dreyfus has undertaken from January 1, 1995 through
June 30, 1995 to reduce the investment advisory fee paid by the series, to
the extent that the series' aggregate expenses (excluding certain expenses as
described above) exceeded specified annual percentages of the series' average
daily net assets. With respect to the Quality Bond and Growth and Income
Portfolios, Dreyfus has undertaken from January 1, 1995 through June 30,
1995, to reduce the investment advisory fee paid by the series, to the extent
that the series' aggregate expenses (excluding certain expenses as described
above) exceeded specified annual percentages of the series' average daily net
assets. With respect to the International Equity Portfolio, Dreyfus had
undertaken from January 1, 1995 through July 11, 1995 to reimburse expenses
(excluding certain expenses as described above) to the extent that such
expenses exceeded specified annual percentages of the series' average daily
net assets. Dreyfus has currently undertaken from July 11, 1995 through
September 30, 1995, to reimburse expenses (excluding certain expenses as
described above) in excess of an annual rate of 1.50% of the series' average
daily net assets.
The expense reimbursements, pursuant to the undertakings, amounted to the
following for the six months ended June 30, 1995:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Money Market Portfolio........... $10,251.................... Small Cap Portfolio $ -
Managed Assets Portfolio......... -.................... Capital Appreciation Portfolio 6,445
Zero Coupon 2000 Portfolio....... 4,371.................... Growth and Income Portfolio 8,655
Quality Bond Portfolio........... 10,017.................... International Equity Portfolio 12,746
</TABLE>
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.
(b) Each trustee who is not an "affiliated person," as defined in the
Act, of Dreyfus, Comstock Partners, Sarofim, M&G and/or Dreyfus Service
Corporation receives from the Fund an annual fee of $2,500 and an attendance
fee of $250 per meeting. The Chairman of the Board receives an additional 25%
of such compensation.
DREYFUS VARIABLE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 six months ended June 30, 1995:
<TABLE>
<CAPTION>
LONG TRANSACTIONS:
PURCHASES SALES
------------- -------------
<S> <C> <C> <C>
Managed Assets Portfolio............................................. $ 5,637,934 $ 1,764,395
Zero Coupon 2000 Portfolio........................................... 6,244,490 3,231,619
Quality Bond Portfolio............................................... 22,023,551 19,650,500
Small Cap Portfolio
Unaffiliated issuers...................... $246,031,870
Affiliated issuers........................ 867,700
------------
246,899,570 104,292,931
Capital Appreciation Portfolio....................................... 9,128,608 194,955
Growth and Income Portfolio.......................................... 26,929,010 11,896,960
International Equity Portfolio....................................... 2,867,115 482,842
SHORT SALE TRANSACTIONS:
PURCHASES SALES
------------- -------------
Small Cap Portfolio.................................................. $ 3,288,374 $ 3,026,125
Growth and Income Portfolio.......................................... 142,000 128,625
</TABLE>
With respect to the Small Cap and Growth and Income Portfolios, each
series is engaged in short-selling which obligates each
series to replace the security borrowed by purchasing the security at current
market value. Each series would incur a loss if the price of the security
increases between the date of the short sale and the date on which each
series replaces the borrowed security. Each series would realize a gain if
the price of the security declines between those dates. Until each series
replaces the borrowed security, each 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 June 30, 1995, there were no
securities sold short outstanding.
In addition, the following summarizes open forward currency exchange
contracts for the Managed Assets Portfolio at June 30, 1995:
<TABLE>
<CAPTION>
U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALE CONTRACTS PROCEEDS VALUE (DEPRECIATION)
------------------------------------ ------------- -------------- ---------------
<S> <C> <C> <C>
German Deutsche marks, expiring 8/15/95 $ 1,887,980 $ 1,957,657$ (69,677)
Hong Kong Dollars, expiring 7/5/95 5,980 5,980 ---
Swiss Francs, expiring 8/15/95 3,782,148 3,930,818 (148,670)
-------------- -------------- ---------------
$ 5,676,108 $ 5,894,455 $ (218,347)
================= ============== =============
</TABLE>
With respect to the Managed Assets and International Equity Portfolios,
each series enters into forward currency exchange contracts. When executing
forward currency exchange contracts, each 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, each 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. Each
series realizes a gain if the value of the contract decreases between those
dates. With respect to purchases of forward currency exchange contracts, each
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. Each series realizes a gain if the value of the contract increases
between those dates. Each 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.
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.
Typically, 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 June 30, 1995, 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 June
30, 1995, excluding foreign currency transactions for the Managed Assets and
International Equity Portfolios:
<TABLE>
<CAPTION>
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
--------------- --------------- ---------------
<S> <C> <C> <C>
Money Market Portfolio..........................$ - $ - $ -
Managed Assets Portfolio..........................2,242,324 (2,372,611) (130,287)
Zero Coupon 2000 Portfolio..........................431,653 (46,300) 385,353
Quality Bond Portfolio..............................594,204 (158,275) 435,929
Small Cap Portfolio..............................45,313,700 (5,261,998) 40,051,702
Capital Appreciation Portfolio....................3,318,826 (43,069) 3,275,757
Growth and Income Portfolio.......................1,457,106 (128,301) 1,328,805
International Equity Portfolio......................162,863 (100,364) 62,499
</TABLE>
At June 30, 1995, 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 June 30, 1995, was as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Money Market Portfolio........ $36,250,022................. Small Cap Portfolio $296,012,506
Managed Assets Portfolio...... 29,095,886................. Capital Appreciation Portfolio 24,199,717
Zero Coupon 2000 Portfolio.... 14,960,069................. Growth and Income Portfolio 19,212,074
Quality Bond Portfolio........ 20,944,531................. International Equity Portfolio 3,820,008
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND
______________________________________________________________________________
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS VARIABLE INVESTMENT FUND
We have reviewed 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 June 30, 1995,
and the related statements of operations and changes in net assets and
financial highlights for the six-month period ended June 30, 1995. These
financial statements and financial highlights are the responsibility of the
Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1994 and financial highlights for each of the indicated periods
ended December 31, 1994 and in our report dated February 13, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP Signature Logo)
New York, New York
August 7, 1995
[Dreyfus lion "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. VIFSA956
[Dreyfus logo]
Variable
Investment Fund
Semi-Annual
Report
June 30, 1995
(Dreyfus Logo)
