DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this semi-annual report for the
Dreyfus Variable Investment Fund _ International Value Portfolio for the
six-month reporting period ended June 30, 1997. Over this period, your
Portfolio produced a total return of 12.74%,* based upon net asset value per
share, compared to a total return of 11.21% for the Morgan Stanley Capital
International Europe, Autralasia, Far East (EAFE Registration Mark) Index over
the same period.**
Foreign markets in general continued to trail the U.S. market, with
markets in Asia being particularly weak. The Singapore market was down 7.5%
and Malaysia was off 11.7%. Fortunately, your Portfolio had limited exposure
to those two markets. Singapore and Malaysia together accounted for less than
3% of the Portfolio's holdings.
Japan, after being one of the worst performing markets in the first
quarter, rebounded 22% in the second quarter and was up 9% for the year to
date. Continued low interest rates did help the Japanese banks to recover
some of their losses. The Topix Banks Index was up over 19% for the quarter
and recovered all of its first quarter loss. We do not currently own any
Japanese bank stocks as the problem loans are still large and disclosure is
poor. Our exposure to this sector is through nonbank finance companies.
Nichiei, the leading provider of working capital financing for small
businesses, was our top performing Japanese stock, advancing over 55% (local
terms). Credit Saison, a credit card company, also performed well, advancing
24% year to date.
The Portfolio
In Europe, the Portfolio owned several stocks that performed quite well
during this year. Philips Electronics NV, the Dutch electronics company, has
doubled in share price due to improving underlying business conditions and
continued restructuring of unprofitable business sectors. Tarkett, a leading
European floor and wall covering manufacturer, purchased a covering business
from Sommer Allibert which we hope will lead to significantly higher
earnings. Volkswagen more than doubled on continued market share gains,
upward earnings revisions, and new model launches. Sulzer, a Swiss textile
and medical device business, announced the spin-off of Sulzer Medica,
triggering appreciation of 61% over six months.
We purchased Pharmacia and Upjohn after negative news on short term
earnings and concerns over management created a buying opportunity in the
pharmaceutical sector. We sold Banco Commercial Portugal (BCP), a Portuguese
bank, after the stock rose 38% due to improving banking fundamentals and a
decision by MSCI to add Portugal to its EAFE Index. We have purchased stock
in Banco Totta & Acores, a smaller bank, at a 40% discount to BCP's
valuation.
Value stocks in the United Kingdom did not perform well so far this year.
Stocks in the value universe underperformed by 2% in the quarter and 4.6%
year to date. Stocks in the industrial sector were particularly hard hit.
Tomkins, despite favorable earnings trends, underperformed by more than 10%.
On the positive side, National Westminster Bank and Powergen outperformed the
market by more than 10%. During the past year the gap between growth stocks
and value stocks has widened significantly in the United Kingdom. Although it
is difficult to predict the exact timing of when this trend will reverse, we
believe there are excellent long-term opportunities for value stocks in the
United Kingdom.
At midyear the Portfolio was invested in 25 different countries and we
believe it was well diversified. Emerging markets accounted for just over 4%
of the holdings. Looking ahead, we will continue to use a value-oriented
strategy to take advantage of investment opportunities abroad.
Sincerely,
[Sandor Cseh signature logo]
Sandor Cseh
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. - The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE Registration Mark) Index is
an unmanaged index composed of samples 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 VALUE PORTFOLIO
STATEMENT OF INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Common Stocks_92.9% Shares Value
_______ ______
<S> <C> <C> <C>
Argentina_1.0% YPF Sociedad Anonima, ADS.............. 4,500 $ 138,375
__________
Australia_2.3% Amcor.................................. 7,500 49,731
Australia and New Zealand Banking...... 20,000 149,193
Boral.................................. 42,072 132,194
__________
331,118
__________
Austria_.2% Creditanstalt-Bankverein............... 200 26,953
__________
Denmark_.7% Tele Danmark, ADS...................... 4,000 104,500
__________
France_9.7% Alcatel Alsthom, ADS................... 9,050 228,513
Axa-UAP................................ 1,100 68,405
C.S.F. (Thompson)...................... 2,324 59,865
DEXIA France........................... 1,200 116,785
Danone................................. 900 148,685
Elf Aquitaine, ADS..................... 4,500 244,969
Michelin............................... 2,000 120,085
Rhone-Poulenc, ADR..................... 2,830 117,798
Societe Generale....................... 1,628 181,704
Usinor Sacilor......................... 5,000 90,174
__________
1,376,983
__________
Germany_8.4% Bayer.................................. 3,600 138,305
Deutsche Bank.......................... 3,500 204,443
GEA.................................... 300 118,143
Siemens................................ 3,600 213,688
Tarkett................................ 3,000 77,386
VEBA................................... 2,800 157,294
Viag................................... 350 159,100
Volkswagen............................. 150 114,961
__________
1,183,320
__________
Greece_.7% Hellenic Telecommunication Organization, GDR.. 9,000 (a,b) 103,950
__________
Hong Kong_2.0% Cheung Kong.............................. 8,000 79,004
HSBC..................................... 2,912 87,587
HongKong Electric........................ 28,000 112,773
__________
279,364
__________
Indonesia_.4% PT Indosat, ADS.......................... 2,000 59,875
__________
Italy_3.9% ENI S.p.A, ADS........................... 2,800 159,250
Fiat Spa................................. 20,000 72,009
Istituto Mobiliare Italiano, ADS......... 4,800 130,800
Stet Societa' Finanziaria Telefonica..... 55,000 190,767
__________
552,826
__________
Japan_28.0% Canon.................................... 8,000 217,814
Credit Saison............................ 10,300 251,657
Dai-Tokyo Fire & Marine Insurance........ 25,000 144,851
Fuji Machine Manufacturing............... 3,000 108,638
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Japan (continued) Hitachi.................................. 17,000 $ 189,877
Honda Motor.............................. 5,000 150,523
Ito-Yokado............................... 3,000 174,083
Kao...................................... 15,000 208,115
Mabuchi Motor............................ 2,500 145,069
Matsumotokiyoshi......................... 2,000 84,816
Mikuni Coca Cola......................... 8,000 118,673
Minebea.................................. 20,000 212,914
Mitsubishi Heavy Industries.............. 25,000 191,753
Murata Manufacturing..................... 5,000 198,952
Namco.................................... 1,500 57,853
Nichiei.................................. 2,000 232,111
Nishimatsu Construction.................. 20,000 139,616
Sankyo................................... 3,500 105,061
Sekisui Chemical......................... 12,000 121,465
Sony..................................... 3,000 261,519
Toshiba.................................. 27,000 173,638
Toyota Motor............................. 5,000 147,469
Yamanouchi Pharmaceutical................ 6,000 161,256
Yamato Transport......................... 12,000 149,738
__________
3,947,461
__________
Malaysia_1.0% Affin Holdings........................... 30,000 71,323
IOI Properties........................... 10,000 19,019
Perusahaan Otomobil Nasional............. 11,000 51,434
__________
141,776
__________
Netherlands_5.7% ABN-Amro................................. 4,948 92,209
Akzo Nobel NV, ADR....................... 2,100 145,163
Hollandsche Beton Groep.................. 411 93,688
Hunter Douglas........................... 1,133 96,339
Koninklijke KNP.......................... 6,000 136,558
Philips Electronics NV, ADR.............. 2,200 158,125
Royal PTT Nederland, ADS................. 2,067 81,905
__________
803,987
__________
New Zealand_.8% Air New Zealand.......................... 18,909 57,846
Fletcher Challenge Energy................ 18,000 54,451
Fletcher Challenge Forests............... 720 1,047
__________
113,344
__________
Norway_.9% Christiania Bank......................... 13,000 44,359
Orkla AS-B............................... 1,200 81,400
__________
125,759
__________
Peru_.5% Telefonica del Peru, ADS................. 2,800 73,325
__________
Philippines_.6% Philippine Long Distance Telephone, ADS.. 1,300 83,525
__________
Portugal_.5% Banco Totta & Acores..................... 4,000 66,803
__________
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ ______
Singapore_1.6% Development Bank of Singapore............. 12,000 $ 151,133
Singapore Airlines........................ 9,000 80,605
__________
231,738
__________
South Korea_.4% Kookmin Bank, GDR......................... 2,753 (a,b) 59,878
__________
Spain_3.6% Corporacion Bancaria de Espana, ADS....... 6,400 181,600
Gas Y Electridad.......................... 2,800 150,329
Repsol, ADR............................... 4,100 173,994
__________
505,923
__________
Sweden_1.1% Marieberg Tidnings........................ 3,000 74,626
Scania AB `A', ADS........................ 2,500 74,063
__________
148,689
__________
Switzerland_5.0% Magazine Zum Globus....................... 150 (a) 81,109
Nestle.................................... 100 131,827
Schweizerischer Banksverein............... 750 (a) 200,463
Sulzer.................................... 150 128,336
Zurich Versicherungs...................... 400 159,069
__________
700,804
__________
United Kingdom_12.8% BTR....................................... 40,000 136,787
Bunzl..................................... 29,183 94,401
Cable & Wireless, ADS..................... 5,000 139,687
Laird Group............................... 18,700 108,753
LucasVarity............................... 40,000 138,444
Medeva.................................... 21,000 89,631
National Westminster Bank................. 15,735 211,428
Powergen.................................. 15,663 186,352
Rio Tinto................................. 11,402 198,551
Safeway................................... 25,100 145,138
Scapa Group............................... 14,700 51,612
Smith (David S.).......................... 12,203 38,174
Stakis.................................... 45,000 77,126
Tomkins................................... 45,477 196,751
__________
1,812,835
__________
United States_1.1% Pharmacia & Upjohn........................ 4,500 156,375
__________
TOTAL COMMON STOCKS
(cost $11,729,745)...................... $13,129,486
============
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Preferred Stocks_.6% Shares Value
_______ ______
Austria; Bank Austria
(cost $77,992)....................... 2,520 $ 77,305
==========
Principal
Short-Term Investments_4.7% Amount
_______
U.S. Treasury Bills: 5.16%, 7/24/97......................... $ 132,000 $ 131,629
4.92%, 7/31/97......................... 98,000 97,591
5.22%, 8/7/97.......................... 99,000 98,489
4.88%, 9/18/97......................... 337,000 333,246
__________
TOTAL SHORT-TERM INVESTMENTS
(cost $661,025)...................... $ 660,955
==========
TOTAL INVESTMENTS (cost $12,468,762)........................................ 98.2% $13,867,746
====== ==========
CASH AND RECEIVABLES (NET).................................................. 1.8% $ 258,776
====== ==========
NET ASSETS.................................................................. 100.0% $14,126,522
====== ==========
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, 1997, these securities amounted to $163,828 or approximately 1.2%
of net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED)
Cost Value
__________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $12,468,762 $13,867,746
Cash denominated in foreign currencies..... 280,975 274,257
Receivable for investment securities sold.. 88,139
Dividends receivable....................... 58,047
Prepaid expenses........................... 143
_____________
14,288,332
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 11,152
Payable for investment securities purchased 118,164
Cash overdraft due to Custodian............ 14,605
Net unrealized (depreciation) on forward
currency exchange contracts_Note 5(a) 396
Accrued expenses........................... 17,493
_____________
161,810
_____________
NET ASSETS.................................................................. $14,126,522
==============
REPRESENTED BY: Paid-in capital............................ $12,477,396
Accumulated undistributed investment income_net 80,575
Accumulated net realized gain (loss) on investments 175,454
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 1,393,097
_____________
NET ASSETS.................................................................. $14,126,522
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 981,424
NET ASSET VALUE, offering and redemption price per share.................... $14.39
========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME: Cash dividends (net of $24,963 foreign taxes
withheld at source).................... $ 142,684
Interest................................... 21,701
______________
Total Income......................... $ 164,385
EXPENSES: Investment advisory fee_Note 4(a).......... 52,432
Custodian fees............................. 13,163
Auditing fees.............................. 11,312
Prospectus and shareholders' reports....... 4,762
Registration fees.......................... 1,412
Legal fees................................. 220
Trustees' fees and expenses_Note 4(b)...... 210
Shareholder servicing costs................ 155
Loan commitment fees_Note 3................ 153
Miscellaneous.............................. 286
______________
Total Expenses....................... 84,105
______________
INVESTMENT INCOME_NET....................................................... 80,280
______________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 5:
Net realized gain (loss) on investments and
foreign currency transactions.......... $ 203,821
Net realized gain (loss) on forward currency
exchange contracts..................... (17,702)
______________
Net Realized Gain (Loss)............. 186,119
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... 1,200,028
______________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 1,386,147
______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,466,427
================
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996*
____________ ___________________
OPERATIONS:
Investment income_net.................................................. $ 80,280 $ 48,531
Net realized gain (loss) on investments................................ 186,119 44,655
Net unrealized appreciation (depreciation) on investments...... 1,200,028 193,069
______________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations.... 1,466,427 286,255
______________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................... __ (48,236)
Net realized gain on investments........................................ (28,454) (26,866)
______________ _____________
Total Dividends..................................................... (28,454) (75,102)
______________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....................................... 4,735,311 8,053,676
Dividends reinvested................................................... 28,454 75,102
Cost of shares redeemed................................................. (102,655) (312,492)
______________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transaction 4,661,110 7,816,286
______________ _____________
Total Increase (Decrease) in Net Assets.......................... 6,099,083 8,027,439
NET ASSETS:
Beginning of Period............................................... 8,027,439 __
______________ _____________
End of Period....................................................... $14,126,522 $ 8,027,439
============= ==============
Undistributed investment income_net................................. $ 80,575 $ 295
______________ _____________
Shares Shares
______________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 359,686 645,895
Shares issued for dividends reinvested................................. 2,206 5,994
Shares redeemed......................................................... (7,416) (24,941)
______________ _____________
Net Increase (Decrease) in Shares Outstanding....................... 354,476 626,948
============= ==============
*From April 30, 1996 (commencement of operations) to December 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE 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.
Six Months Ended Year Ended
June 30, 1997 December 31,
PER SHARE DATA: (Unaudited) 1996(1)
________________ ________________
Net asset value, beginning of period.................................... $12.80 $12.50
_______ ________
Investment Operations:
Investment income_net................................................... .08 .08
Net realized and unrealized gain (loss)
on investments........................................................ 1.55 .34
_______ ________
Total from Investment Operations........................................ 1.63 .42
_______ ________
Distributions:
Dividends from investment income_net.................................... -- (.08)
Dividends from net realized gain on investments......................... (.04) (.04)
_______ ________
Total Distributions..................................................... (.04) (.12)
_______ ________
Net asset value, end of period.......................................... $14.39 $12.80
========= =========
TOTAL INVESTMENT RETURN..................................................... 12.74%(2) 3.41%(2,3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. .80%(2) 1.01%(2)
Ratio of net investment income
to average net assets................................................. .76%(2) .76%(2)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation......................... -- .34%(2)
Portfolio Turnover Rate................................................. 14.71%(2) 24.48%(2)
Average commission rate paid (4)........................................ $.0320 $.0351
Net Assets, end of period (000's Omitted)............................... $14,127 $8,027
(1) From April 30, 1996 (commencement of operations) to December 31, 1996.
(2) Not annualized.
(3) Calculated based on net asset value on the close of business on
May 1, 1996 (commencement of initial offering) to December
31, 1996.
(4) The Series is required to disclose its average commission rate paid
per share for purchases and sales of investment
securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE 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 International Value 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 long-term capital growth. The Dreyfus Corporation ("Dreyfus")
serves as the Series' investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. ("Mellon"), which is a wholly-owned subsidiary of Mellon
Bank Corporation. Premier Mutual Fund Services, Inc. is the distributor of
the Series' shares, which are sold without a sales charge.
As of June 30, 1997, APT Holdings Corporation, an indirect subsidiary of
Mellon Bank Corporation, held 405,054 shares of the Series.
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. To the
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Series not to distribute such
gain.
(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.
NOTE 3_BANK LINE OF CREDIT:
The Series participates with other Dreyfus-managed Funds in a $600
million redemption credit facility ("Facility") to be utilized for temporary
or emergency purposes, including the financing of redemptions. In connection
therewith, the Series has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is charged to the Series at rates based on
prevailing market rates in effect at the time of borrowings. For the period
ended June 30, 1997, the Series did not borrow under the Facility.
NOTE 4_INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the
investment advisory fee is computed at the annual rate 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 aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended June 30, 1997 amounted to $5,974,242 and $1,416,026,
respectively.
In addition, the following summarizes open forward currency exchange
contracts at June 30, 1997:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Foreign Currency Exchange Contracts: Amounts Cost Value (Depreciation)
___________________ ____________ ___________ _______ ________________
<S> <C> <C> <C> <C>
Purchases:
___________
Japanese Yen, expiring 7/1/97............ 6,634,043 $58,193 $57,888 ($305)
New Zealand Dollar, expiring 7/2/97...... 11,878 8,166 8,075 (91)
______
($396)
========
</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 and to settle foreign currency transactions. 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
DREYFUS VARIABLE INVESTMENT FUND, INTERNATIONAL VALUE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
increases between those dates. The Series is also exposed to credit risk
associated with counter party 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 and forward currency exchange contracts was $1,398,588,
consisting of $1,654,654 gross unrealized appreciation and $256,066 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).
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS VARIABLE INVESTMENT FUND,
INTERNATIONAL VALUE 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. 152SA976
[Dreyfus logo]
Registration Mark
Variable
Investment Fund,
International Value
Portfolio
Semi-Annual
Report
June 30, 1997
