<PAGE>
Dreyfus
Variable
Investment Fund,
Managed Assets
Portfolio
Semi-Annual
Report
June 30, 1997
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
Management of Dreyfus Variable Investment Fund -- Managed Assets Portfolio
was transferred on January 1, 1997 to Timothy M. Ghriskey, who also manages a
number of other equity funds for The Dreyfus Corporation. It is a pleasure for
me to introduce Tim Ghriskey to shareholders in this Portfolio.
Tim joined the investment staff of The Dreyfus Corporation in the summer of
1995 as a Senior Equity Portfolio Manager. Before joining Dreyfus, he spent ten
years with Loomis, Sayles & Company as both an equity and a balanced portfolio
manager. At his prior firm, Tim was an Associate Managing Partner and a member
of the Investment Policy Committee and the Planning Committee. He began his
investment career as an equity analyst following a number of industries,
including beverage, tobacco, leisure, entertainment, home products, cosmetics,
metals and mining.
Tim is a graduate of Trinity College and received his M.B.A. from the
Darden School at the University of Virginia. He is a Chartered Financial
Analyst and a Chartered Investment Counselor.
We have great confidence in Tim's ability to manage your Portfolio.
Sincerely,
Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
This letter is our first to you, as Dreyfus assumed day-to-day portfolio
management of the Dreyfus Variable Investment Fund -- Managed Assets Portfolio
as of January 1, 1997.
We are pleased to provide you with this semi-annual report for the six-month
reporting period ended June 30, 1997. Over this period, your Portfolio produced
a total return of 20.47%, based upon net asset value per share,* compared to a
total return of 20.60% for the Standard & Poor's 500 Composite Stock Price over
the same period.** The Standard & Poor's 500 Index is weighted toward the
largest publicly traded companies, and these investments have experienced
significant appreciation during this period. The Portfolio did not attempt to
replicate this index, believing that there was better value elsewhere.
The Portfolio is at its heart dedicated to investment flexibility. In a
positive investment environment, the Portfolio favors value-oriented equity
securities with a contrarian emphasis. Contrarians do not follow the investment
herd, but instead attempt to identify new investment trends which others will
subsequently follow. In a negative investment environment, the Portfolio has the
flexibility to raise cash, sell stocks short, invest in fixed income securities,
own gold stocks, and use other investment techniques designed to protect
capital, and hopefully profit, even when the overall stock market may be weak.
Value Investing
While there are other investment disciplines practiced at Dreyfus, we are
passionate believers in value investing. Paying attention to the value of
securities has proven in numerous industry and academic studies historically to
have resulted in superior and more consistent long-term investment returns. Why?
Value investors are frugal. We want to buy growing companies, but we do not want
to pay much for them.
As value investors, we believe that in the investment world inexpensive is
better than expensive. By definition, securities with low valuations should have
more potential for an increase in this valuation than securities with high
valuations. In fact, securities priced at a valuation discount to the average
market valuation historically have tended to move toward higher valuations over
time and, therefore, have what we believe is a built-in advantage for long-term
price appreciation. Of course, this assumes sound business fundamentals.
Investors tend to have low expectations for securities with low valuations, and
these low expectations tend to be more easily met than for securities with high
expectations. Further, investors and analysts often extrapolate or project past
growth into the future which tends to result in excessive pessimism about low
valuation stocks. More often than not, we believe the opposite growth pattern
occurs, relative to these expectations, with low valuation stocks growing more
rapidly than expected. Finally, when a stock with a low valuation is
unfortunately greeted with bad news and its price corrects, we believe that it
is already relatively inexpensive and simply should not have far to fall in
value.
Investing in value stocks is somewhat counter to human nature, a decided
advantage. A successful value investor does not follow the herd of other
investors, does not blindly accept widely distributed recommendations from
brokerage firms, and does not just buy glamorous investment stories which almost
everyone else already knows. A successful value investor is more proactive than
reactive, and takes advantage of other investors' overreaction to events. Among
the numerous reasons that value stocks may appreciate in price are lower
expectations, more thorough analysis of actual reported data instead of
forecasts, typically higher dividends, often more stock repurchases by the
companies, and the potential for takeovers and asset restructuring. Because of
its focus on securities with low valuations, value investing should, we believe,
result in steady investment gains and not wildly volatile swings in investment
performance. In this sense, we believe it is designed to be a lower risk, more
conservative style of equity investing.
<PAGE>
Investment Process
Our approach to the selection of securities starts and ends with our
analysts, who are an integral part of our investment team. We only want to own
securities which our fine team of analysts know and follow closely through
regular management interviews and company visits.
Using the work of our analysts as a starting point, we screen the universe of
stocks by computer according to two principal methods. First, we screen for high
projected earnings yield (the inverse of the price-earnings ratio) on earnings
for the next 12 months. We look for securities with an earnings yield which is
competitive with risk-free investments, such as U.S. Treasuries. Otherwise, we
would rather own the risk-free security. Second, we apply our proprietary screen
of 21 fundamental factors which have historically affected stock returns. These
factors include the growth outlook over various time horizons, several relative
value measures, company size, earnings revision and surprise, cash flow,
financial, operating and foreign leverage, momentum measures, and a qualitative
evaluation of the potential for positive change to occur at each company.
Combining this data with our analysts' in-depth knowledge of the individual
companies, we then construct a portfolio of approximately 50 securities which we
believe is adequately diversified without overly diluting the potential impact
of good investment ideas.
Selling is also a major part of our discipline and, we believe, an often
neglected part of the investment management process. We use specific
criteria to determine when selling a security is in our shareholders' best
interest.
Economic Review
Since ending its 1995 mid-cycle slowdown, the economy has sustained an
above-trend growth trajectory, slowing only briefly in the third quarter of 1996
and again in recent months. Meanwhile, the level of economic activity is now at
the point where economic resources are near full deployment. Yet price inflation
remains quiescent, boosting the purchasing power of incomes and contributing to
the best sense of economic well-being in decades. In this environment, economic
policy has been benign, allowing market interest rates to sway within an
eighteen-month trading range and corporate profits to rise steadily. However,
even while the jury is out on the inflation risks ahead, the Federal Reserve
Board (the "Fed") has again indicated a one-way bias towards tighter future
policy.
Real Gross Domestic Product growth grew an above-trend 3.1% from year-end
1995 to year-end 1996, then accelerating to more than 4.0% in the first half of
this year. However, this year's pattern shows growth concentrated into the first
quarter, when GDP surged 5.9%, while a slowdown to near 2.5% is apparent in the
second quarter. The slower near-term growth is attributable to a lackluster
retail sector, even though exports and capital spending are gaining. A key issue
is whether the absence of pent-up demand could lead to a sluggish consumer
profile and, hence, a slow GDP growth from here on. Indeed, factors that could
underpin a resumption of stronger spending are rising: real consumer purchasing
power, soaring household wealth and all-time highs in consumer confidence.
Additionally, inventories remain lean, muting the prospect of yet slower
economic growth.
Alongside evidence of a slower retail sector in the second quarter are
reports showing that unemployment fell below 5% and industrial capacity
utilization tightened towards its 1994 highs. With these developments, the
economy now is operating at a high level with little slack. Yet wage inflation
abated in the second quarter while price inflation continued
<PAGE>
to decelerate. The absence of any troublesome sign of inflation has kept market
interest rates in a long-standing trading range. Even corporate profits
continue to surprise on the upside.
Views on the need to tighten monetary policy are divergent. There are
those who believe that inflation pressure points are just different than in
the past and others who believe the inflation cycle has been eliminated by
global factors and technology. However, by leaning towards tighter future
policy, the Fed is at least willing to err on the cautious side in the next
several months.
Market Overview
It doesn't get much better than the performance of common stocks for the
first half of 1997. When the closing bell rang on June 30, the Standard & Poor's
500 showed a six-month gain of nearly 20%, the Dow Jones Industrial Average was
up almost 19%, the Nasdaq Composite Index had gained 11.70% and even small
capitalization stocks represented by the Russell 2000 index were up by 9.31%.
All these major indexes set new records repeatedly during the half-year.
However, it wasn't clear sailing, and not all sectors profited equally. As
recently as April, just after the Fed voted its latest increase in interest
rates, broad stock averages were only modestly ahead for the year. Technology
and small cap stocks were lagging the larger, better-known issues.
A turnaround began in mid-April that carried all markets to new highs. The
main propellant was the expanding yet noninflationary economy. At the same time,
corporate profits, generally speaking, showed continued strength. Clearly, all
the hard work of corporate reorganization and down-sizing in recent years was
paying off. Before each scheduled meeting of the Federal Reserve, there was
apprehension that interest rates might be boosted again. Yet the underlying tone
of the market was one of confidence and strength. No doubt the steady influx of
retirement money and other assets into mutual funds was an important factor in
the market's buoyancy.
As the market averages advanced, an increasing number of warnings were being
issued to the investing public to remember that what goes up might come down --
that many stocks appeared richly priced in relation to earnings prospects. In
day-to-day stock trading, however, there was little evidence by the end of June
that the cautionary advice was affecting stock prices.
Recent Developments
During this semi-annual period, the Portfolio benefited from investments in
Paxson Communications, Pennzoil, Travelers Group, Watson Pharmaceuticals, Cooper
Cameron, Lone Star Industries, Stone Container, Ciba Specialty Chemicals,
Owens-Illinois, Ingersoll-Rand, Xerox, Airborne Freight, Yellow, CNF
Transportation, and Hong Kong Telecommunications. Results were penalized by
investments in Fruit of the Loom, First Brands, Cabletron Systems, Amdahl,
Aetna, and Chesapeake.
As the fiscal year ended, our primary investment themes included:
* Depressed high growth securities
* Asset restructuring potential
* Neglected or misunderstood companies
* New, unappreciated growth opportunities
* Particularly undervalued situations
<PAGE>
It is an honor to have been named as Portfolio Manager of this Portfolio. All
of the Dreyfus family will endeavor to serve you to the best of our abilities.
Sincerely,
Timothy M. Ghriskey
Portfolio Manager
July 16, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
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.
** 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 U.S. stock market performance.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- --------------------------------------------------------------------------------
Statement of Investments June 30, 1997 (Unaudited)
Common Stocks--99.0% Shares Value
- -------------------------------------------------------------------------------- ----------- -------------
<S> <C> <C> <C>
Consumer Non-Durables--9.7% Cott..................................... 30,500 $ 324,063
Dreyer's Grand Ice Cream................. 10,300 406,850
First Brands............................. 9,900 227,081
Fruit of The Loom, Cl. A..............(a) 17,500 542,500
Kimberly-Clark........................... 6,700 333,325
NIKE, Cl. B.............................. 18,000 1,050,750
Philip Morris ........................... 7,500 332,812
-------------
3,217,381
-------------
Consumer Services--3.2% Paxson Communications, Cl.A...........(a) 81,900 1,044,225
-------------
Electronic Technology--6.1% Amdahl................................(a) 23,100 202,125
Cabletron Systems.....................(a) 11,300 319,931
Intel.................................... 2,300 326,169
International Business Machines.......... 3,600 324,675
Read-Rite.............................(a) 28,500 594,938
Storage Technology....................(a) 6,000 267,000
-------------
2,034,838
-------------
Energy Minerals--4.7% Mobil.................................... 6,400 447,200
Pennzoil................................. 6,900 529,575
Phillips Petroleum....................... 6,300 275,625
Tosco.................................... 10,500 314,344
-------------
1,566,744
-------------
Finance--13.8% Allstate................................. 5,800 423,400
Banc One................................. 10,609 513,873
Bankers Trust New York................... 4,700 408,900
Chase Manhattan.......................... 3,000 291,188
Equitable................................ 11,700 389,025
Grupo Financiero Banamex Accival, Cl.B(a) 479,000 1,232,543
Nationwide Financial Services, Cl. A..... 5,000 132,812
Travelers Group.......................... 18,500 1,166,656
-------------
4,558,397
-------------
Health Services--7.7% Aetna.................................... 3,700 378,787
Allegiance............................... 10,100 275,225
Sierra Health Services................(a) 14,200 443,750
Sun Healthcare Group..................(a) 70,000 1,456,875
-------------
2,554,637
-------------
Health Technology--5.9% Forest Laboratories...................(a) 8,000 334,000
Genzyme-General Division..............(a) 15,800 438,450
Watson Pharmaceuticals................(a) 27,800 1,174,550
-------------
1,947,000
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- ----------- ------------
<S> <C> <C> <C>
Industrial Services--1.5% Cooper Cameron........................(a) 10,400 $ 486,200
-------------
Non-Energy Minerals--5.3% Aluminum Company of America.............. 4,100 309,038
Georgia-Pacific.......................... 5,000 426,875
Lone Star Industries..................... 22,500 1,019,531
-------------
1,755,444
-------------
Process Industries--11.6% Chesapeake............................... 30,000 1,012,500
Ciba Specialty Chemicals ................ 4,500 415,811
Owens-Illinois........................(a) 12,100 375,100
Premark International.................... 12,600 337,050
Stone Container.......................... 95,000 1,359,687
Temple-Inland............................ 6,000 324,000
-------------
3,824,148
-------------
Producer Manufacturing--11.9% Borg-Warner Automotive................... 7,000 378,438
General Signal........................... 6,500 283,562
Grupo Carso, Cl. A1...................... 65,000 453,393
Ingersoll-Rand........................... 7,000 432,250
MagneTek..............................(a) 55,700 926,013
Raychem.................................. 14,100 1,048,687
Xerox.................................... 5,300 418,038
-------------
3,940,381
-------------
Retail--2.9% Dominick's Supermarkets.................. 16,000 426,000
Pier 1 Imports........................... 17,400 461,100
Polo Ralph Lauren, Cl.A.................. 3,000 82,125
-------------
969,225
-------------
Transportation--7.7% Airborne Freight......................... 10,000 418,750
CNF Transportation....................... 10,500 338,625
CSX...................................... 17,700 982,350
Hertz, Cl. A............................. 5,600 201,600
Ryanair Holdings, A.D.R. ................ 8,700 235,988
Yellow................................(a) 16,000 358,000
-------------
2,535,313
-------------
Utilities--7.0% Coastal.................................. 5,700 303,169
El Paso Natural Gas...................... 5,500 302,500
Hong Kong Telecommunications, A.D.R. .... 17,200 402,050
NorAm Energy............................. 27,300 416,325
Tenaga Nasional ......................... 183,000 891,904
-------------
2,315,948
-------------
TOTAL COMMON STOCKS
(cost $29,586,634)..................... $32,749,881
=============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
Principal
Short-Term Investments--2.4% Amount Value
- -------------------------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
U.S. Treasury Bills: 5.16%, 7/24/97........................(b) $ 355,000 $ 354,003
5.24%, 8/14/97........................... 40,000 39,753
4.88%, 8/21/97........................... 82,000 81,411
4.90%, 9/4/97............................ 101,000 100,074
4.88%, 9/18/97........................... 212,000 209,638
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $784,842)........................ $ 784,879
============
TOTAL INVESTMENTS (cost $30,371,476)............................................ 101.4% $33,534,760
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES.......................................... (1.4%) $ (460,525)
====== ============
NET ASSETS...................................................................... 100.0% $33,074,235
====== ============
<FN>
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by broker as collateral for open short positions.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Statement of Securities Sold Short June 30, 1997 (Unaudited)
Common Stocks Shares Value
- -------------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
Banc One
(proceeds $434,942)........................................................... 10,100 $ 489,219
===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1997 (Unaudited)
Cost Value
------------- ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of
Investments.................................... $30,371,476 $33,534,760
Cash............................................. 250,967
Receivable from brokers for proceeds on
securities sold short.......................... 434,942
Dividends and interest receivable................ 35,414
Net unrealized appreciation on forward
currency exchange contracts--Note 5(a).......... 5,055
Prepaid expenses................................. 185
-----------
34,261,323
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 19,478
Securities sold short, at value
(proceeds $434,942)--see statement.............. 489,219
Payable for shares of Beneficial Interest redeemed 373,912
Payable for investment securities purchased...... 279,414
Accrued expenses................................. 25,065
-----------
1,187,088
-----------
NET ASSETS..................................................................... $33,074,235
===========
REPRESENTED BY: Paid-in capital.................................. $31,873,420
Accumulated distributions in excess of investment
income--net..................................... (58,896)
Accumulated net realized gain (loss) on
investments, foreign currency transactions and
forward currency exchange contracts............. (1,854,341)
Accumulated net unrealized appreciation
(depreciation) on investments, foreign currency
transactions and forward currency
exchange contracts............................. 3,114,052
-----------
NET ASSETS..................................................................... $33,074,235
===========
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 2,590,745
NET ASSET VALUE, offering and redemption price per share....................... $12.77
======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended June 30, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $3,043 foreign taxes
withheld at source)............................ $ 140,444
Interest......................................... 57,514
-----------
Total Income................................ $ 197,958
EXPENSES: Investment advisory fee--Note 4(a)................ 85,241
Auditing fees.................................... 18,782
Legal fees....................................... 18,515
Prospectus and shareholders' reports............. 10,510
Dividends on securities sold short............... 7,676
Custodian fees................................... 4,846
Registration fees................................ 2,178
Trustees' fees and expenses--Note 4(b)........... 423
Shareholder servicing costs..................... 255
Miscellaneous.................................... 431
-----------
Total Expenses.............................. 148,857
-------------
INVESTMENT INCOME--NET.......................................................... 49,101
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 5:
Net realized gain (loss) on investments and
foreign currency transactions.................. $1,634,265
Net realized gain (loss) on forward currency
exchange contracts
Short transactions.......................... (3,208)
-----------
Net Realized Gain (Loss).................... 1,631,057
Net unrealized appreciation (depreciation) on
investments, foreign currency transactions and
forward currency exchange contracts............. 3,106,918
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 4,737,975
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $4,787,076
=============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 49,101 $ 1,016,129
Net realized gain (loss) on investments............................... 1,631,057 (2,021,735)
Net unrealized appreciation (depreciation) on investments............. 3,106,918 291,402
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations... 4,787,076 (714,204)
----------- -----------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net........................................... -- (1,062,506)
In excess of investment income--net................................... -- (107,997)
From paid-in capital.................................................. -- (114,865)
----------- -----------
Total Dividends................................................... -- (1,285,368)
----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold......................................... 10,582,130 5,860,638
Dividends reinvested.................................................. -- 1,285,368
Cost of shares redeemed............................................... (3,395,650) (9,317,556)
----------- -----------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 7,186,480 (2,171,550)
----------- -----------
Total Increase (Decrease) in Net Assets......................... 11,973,556 (4,171,122)
NET ASSETS:
Beginning of Period................................................... 21,100,679 25,271,801
----------- -----------
End of Period......................................................... $33,074,235 $21,100,679
=========== ===========
(Distributions in excess of investment income--net)..................... $ (58,896) $ (107,997)
----------- -----------
<CAPTION>
Shares Shares
----------- --------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 895,802 480,990
Shares issued for dividends reinvested............................... -- 120,516
Shares redeemed...................................................... (296,076) (769,628)
---------- --------------
Net Increase (Decrease) in Shares Outstanding.................... 599,726 (168,122)
========== ==============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
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>
Six Months Ended Year Ended December 31,
June 30, 1997 ------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------ ------ ------ ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.60 $11.70 $12.37 $12.92 $10.14 $10.76
------- ------ ------ ------ ------- -------
Investment Operations:
Investment income--net............... .03 .63 .51 .35 .20 .22
Net realized and unrealized gain (loss)
on investments.................... 2.14 (1.05) (.54) (.56) 2.71 (.11)
------- ------ ------ ------ ------- -------
Total from Investment Operations.... 2.17 (.42) (.03) (.21) 2.91 .11
------- ------ ------ ------ ------- -------
Distributions:
Dividends from investment income--net -- (.56) (.64) (.32) (.13) (.31)
Dividends in excess of investment
income--net...................... -- (.06) -- (.02) -- --
Dividends from net realized gain
on investments.................... -- -- -- -- -- (.42)
Paid-in capital..................... -- (.06) -- -- -- --
------- ------ ------ ------ ------- -------
Total Distributions................. -- (.68) (.64) (.34) (.13) (.73)
------- ------ ------ ------ ------- -------
Net asset value, end of period...... $12.77 $10.60 $11.70 $12.37 $12.92 $10.14
======= ====== ====== ====== ======= =======
TOTAL INVESTMENT RETURN................ 20.47%(1) (3.62%) (.26%) (1.56%) 28.59% 1.07%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .60%(1) .93% .94% .25% .27% .97%
Ratio of net investment income
to average net assets............. .20%(1) 4.12% 3.56% 3.54% 1.87% 1.88%
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus
Corporation and Comstock Partners, Inc. -- -- -- .88% 2.25% 1.70%
Portfolio Turnover Rate............. 94.68%(1) 124.19% 53.88% 25.96% 99.08% 118.78%
Average commission rate paid(2)..... $ .0472 $ .0250 -- -- -- --
Net Assets, end of period (000's Omitted) $33,074 $21,101 $25,272 $30,510 $7,957 $1,865
<FN>
- ----------------
(1)Not annualized.
(2)For fiscal years beginning January 1, 1996, the Series is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--General:
Dreyfus Variable Investment Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as an open-end management investment
company, operating as a series company currently offering thirteen series,
including the Managed Assets Portfolio (the "Series") 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
Series is a diversified portfolio. The Series' investment objective is to
maximize total return, consisting of capital appreciation and current income.
The Dreyfus Corporation ("Dreyfus") serves as the Series' investment adviser.
Premier Mutual Fund Services, Inc. is the distributor of the Series' shares,
which are sold without a sales charge.
The Fund currently functions as the funding vehicle for the Dreyfus Series
2000 Variable Annuity Contract (the "Account") issued by Mutual Benefit Life
Insurance Company ("Mutual Benefit Life"). On July 16, 1991, the Superior Court
of New Jersey entered an Order (the "Order") appointing the New Jersey Insurance
Commissioner as Rehabilitator of Mutual Benefit Life. The Commissioner was
granted immediate exclusive possession and control of, and title to, the
business and assets of Mutual Benefit Life, including the assets and liabilities
of the Account.
The Commissioner was empowered by the Order to take such steps as he deemed
appropriate toward removing the cause and conditions that made rehabilitation
necessary. On January 15, 1993, the Commissioner filed the First Amended Plan of
Rehabilitation ("Plan") with the Court. The Plan stipulated that the assets and
liabilities of the Account 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 which
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.
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.
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The Fund accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The Series' financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
NOTE 2--Significant Accounting Policies:
(a) Portfolio valuation: 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 forward rate.
(b) Foreign currency transactions: The Series 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.
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
Series' 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,
resulting from changes in exchange rates. Such gains and losses are included
with net realized and unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized 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) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions 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 on a fiscal year basis. To the extent
that the net realized capital gain can be offset by capital loss carryovers, it
is the policy of the Series not to distribute such gain.
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(e) Federal income taxes: It is the policy of the Series 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.
The Series has an unused capital loss carryover of approximately $2,511,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1996. The
carryover does not include net realized securities losses from November 1, 1996
through December 31, 1996 which are treated, for Federal income tax purposes,
as arising in fiscal 1997. If not applied, $5,500 of the carryover expires in
fiscal 2001, $364,100 expires in fiscal 2002, $1,407,400 expires in fiscal 2003
and $734,000 expires in fiscal 2004.
NOTE 3--Bank Line of Credit:
In accordance with an agreement with a bank, the Series may borrow up to $5
million under a short-term unsecured line of credit. Interest on borrowings is
charged at rates which are related to the Federal Funds rate in effect from time
to time. For the period ended June 30, 1997, the Series did not borrow under the
line of credit.
NOTE 4--Investment Advisory Fee and Other Transactions With Affiliates:
(a) Pursuant to an amended Investment Advisory Agreement with Dreyfus, the
investment advisory fee is computed at the annual rate of .75 of 1% of the value
of the Series' average daily net assets and is payable monthly.
The Series compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Series.
(b) Each trustee who is not an "affiliated person" as defined in the Act
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.
NOTE 5--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term securities
and forward currency exchange contracts during the period ended June 30, 1997:
<TABLE>
<CAPTION>
Purchases Sales
---------- ----------
<S> <C> <C>
Long transactions....................................................... $46,907,459 $20,194,438
Short sale transactions................................................. -- 434,942
----------- -----------
Total............................................................... $46,907,459 $20,629,380
=========== ===========
</TABLE>
<PAGE>
Dreyfus Variable Investment Fund, Managed Assets Portfolio
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The Fund is engaged in short-selling which obligates the Fund to replace
the security borrowed by purchasing the security at current market value. The
Fund would incur a loss if the price of the security increases between the date
of the short sale and the date on which the Fund replaces the borrowed security.
The Fund would realize a gain if the price of the security declines between
those dates. Until the Fund replaces the borrowed security, the Fund will
maintain daily, a segregated account with a broker and custodian, of cash and
/or liquid securities sufficient to cover its short position. Securities sold
short at June 30, 1997, and their related market values and proceeds are set
forth in the Statement of Securities Sold Short.
The following summarizes open forward currency exchange contracts at June
30, 1997:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Exchange Contracts Amount Proceeds Value Appreciation
- ----------------------------------- -------- -------- -------- -------------
Sales:
- ------
<S> <C> <C> <C> <C>
Swiss Francs, expiring 9/19/97........ 607,240 $425,000 $419,945 $5,055
======
</TABLE>
The Series enters into forward currency exchange contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. When executing forward currency exchange contracts, the
Series is obligated to buy or sell a foreign currency at a specified rate on a
certain date in the future. With respect to sales of forward currency exchange
contracts, the Series would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Series realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Series would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Series realizes a gain if the value of the
contract increases between those dates. The Series is also exposed to credit
risk associated with counterparty nonperformance on these forward currency
exchange contracts which is typically limited to the unrealized gain on each
open contract.
(b) At June 30, 1997, accumulated net unrealized appreciation on
investments, forward currency exchange contracts and securities sold short was
$3,114,062, consisting of $4,015,005 gross unrealized appreciation and $900,943
gross unrealized depreciation.
At June 30, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
Dreyfus Variable Investment Fund,
Managed Assets Portfolio
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 118SA976
