formncsr172

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DYpg7iHwZTJefBW8wpwkwLyQCZhWNMdaodFRWXJf6a94wZ8TZZdDRnAt4KGFKXMU ZFdcnXk+UgN2zDPOMLRJIA== 0001056707-04-000002.txt : 20040303 0001056707-04-000002.hdr.sgml : 20040303 20040303165231 ACCESSION NUMBER: 0001056707-04-000002 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 44 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040303 EFFECTIVENESS DATE: 20040303 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS INVESTMENT PORTFOLIOS CENTRAL INDEX KEY: 0001056707 IRS NUMBER: 134000024 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-08673 FILM NUMBER: 04646579 BUSINESS ADDRESS: STREET 1: C/O THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226789 MAIL ADDRESS: STREET 1: C/O THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 N-CSR 1 formncsr172.htm ANNUAL REPORT FORM formncsr172

	UNITED STATES
	SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C. 20549

	FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
	INVESTMENT COMPANIES

Investment Company Act file number 811-08673

	DREYFUS INVESTMENT PORTFOLIOS
	(Exact name of Registrant as specified in charter)

	c/o The Dreyfus Corporation
	200 Park Avenue
	New York, New York 10166
	(Address of principal executive offices)	(Zip code)

	Mark N. Jacobs, Esq.
	200 Park Avenue
	New York, New York 10166
	(Name and address of agent for service)

Registrant's telephone number, including area code:		(212) 922-6000

Date of fiscal year end:	12/31

Date of reporting period:	12/31/03

SSL-DOCS2 70128344v6

FORM N-CSR

Item 1. Reports to Stockholders.

Dreyfus

Investment Portfolios,

Core Bond Portfolio

ANNUAL REPORT December 31, 2003

The views expressed in this report reflect those of the portfolio

manager only through the end of the period covered and do not

necessarily represent the views of Dreyfus or any other person in

the Dreyfus organization.Any such views are subject to change at

any time based upon market or other conditions and Dreyfus dis-

claims any responsibility to update such views. These views may

not be relied on as investment advice and, because investment

decisions for a Dreyfus portfolio are based on numerous factors,

may not be relied on as an indication of trading intent on behalf

of any Dreyfus portfolio.

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

Contents

THE PORTFOLIO

2	Letter from the Chairman
3	Discussion of Performance
6	Portfolio Performance
8	Statement of Investments
16	Statement of Financial Futures
17	Statement of Options Written
18	Statement of Assets and Liabilities
19	Statement of Operations
20	Statement of Changes in Net Assets
22	Financial Highlights
24	Notes to Financial Statements
35	Report of Independent Auditors
36	Important Tax Information
37	Board Members Information
39	Officers of the Fund
FOR MORE INFORMATION
Back Cover

Dreyfus Investment Portfolios, Core Bond Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

This annual report for Dreyfus Investment Portfolios, Core Bond Portfolio covers the 12-month period from January 1, 2003, through December 31, 2003. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with Gerald E. Thunelius, portfolio manager and director of the Dreyfus Taxable Fixed Income Team that manages the portfolio.

The bond market produced mixed results in 2003 as investor sentiment apparently shifted from pessimism at the start of the year toward a more optimistic outlook by year-end.As the U.S. economy gathered momentum, the more interest-rate-sensitive areas of the bond market began to retreat, and U.S. government securities finished the year with modestly positive total returns. On the other hand, the bond market’s more credit-sensitive areas generally benefited from the stronger economy, producing more robust gains for corporate bonds.

While recent economic developments suggest to us that interest rates are more likely to rise in 2004 than to fall further, we continue to believe that bonds deserve a prominent place in most investors’ portfolios. As always, we urge you to speak regularly with your financial advisor, who may be in the best position to suggest the Dreyfus funds designed to meet your current needs, future goals and tolerance for risk.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter

Chairman and Chief Executive Officer

The Dreyfus Corporation

January 15, 2004

DISCUSSION OF PERFORMANCE

Gerald E. Thunelius, Senior Portfolio Manager Dreyfus Taxable Fixed Income Team

How did Dreyfus Investment Portfolios, Core Bond Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2003, the portfolio’s Initial shares achieved a total return of 7.27%, and its Service shares achieved a total return of 7.11%.¹The portfolio produced aggregate income dividends of $0.540 per share and $0.530 per share for its Initial and Service shares, respectively. In comparison, the Lehman Brothers U.S. Aggregate Index (the “Lehman Index”), the portfolio’s current benchmark index, and the Merrill Lynch U.S. Domestic Master Index (the “Merrill Lynch Index”), the fund’s previous benchmark index, produced total returns of 4.10 % and 4.12%, respectively, for the same period. ^2,3

The portfolio produced higher returns than both the Lehman Index and the Merrill Lynch Index because of its emphasis on corporate bonds, which rebounded from relatively low price levels when investors generally became more comfortable assuming credit-related risks; inflation-protected securities, which benefited from the same view; and, to a lesser degree, the portfolio’s relatively light exposure to mortgage-backed securities during the month of July when refinancing activity peaked, causing an adverse effect on bond prices in this sector of the bond market.

What is the portfolio’s investment approach?

The portfolio seeks to maximize total return through both capital appreciation and current income.The portfolio invests at least 80% of its assets in bonds, including U.S.Treasury securities, U.S. government agency securities, corporate bonds, foreign bonds, mortgage- and asset-backed securities, convertible securities and preferred stocks.The portfolio may invest up to 35% of its assets in bonds rated below investment-grade credit quality, also known as high-yield securities.

Our investment approach emphasizes:

Fundamental economic analysis. Our review of U.S. economic conditions helps us establish the portfolio’s average duration, which is a measure of sensitivity to interest-rate changes. If interest rates

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

appear to be rising, we will generally reduce the portfolio’s average duration to keep cash available for the purchase of higher-yielding securities as they become available. If interest rates appear to be declining, we will generally increase the portfolio’s average duration to lock in prevailing yields.

Sector allocation. We allocate assets among the various sectors of the fixed-income marketplace according to their relative attractiveness based on prevailing and expected market and economic conditions.
Security selection. We choose individual securities according to factors that include their yields, prices, liquidity and the financial health of their issuers.

What other factors influenced the portfolio’s performance?

Although rising geopolitical tensions, corporate scandals and a declining stock market had taken their toll on the U.S. economy, investors apparently grew more optimistic when 2003 began. Despite widespread uncertainty leading up to major combat operations in Iraq, corporate bond prices began to rebound during the first quarter of the year as investors seemed to recognize their value and looked forward to a possible economic recovery. In late March, many investors began to anticipate better business conditions for U.S. companies, and corporate bonds continued to rally.

In this environment, lower-rated corporate bonds generally produced higher returns than bonds with the highest credit ratings. This trend benefited the portfolio, which focused on the lower range of the investment-grade category. In addition, our security selection strategy helped support the portfolio’s returns. Early in the reporting period, we tended to emphasize bonds from issuers in the insurance, health care and cable television industries, while we maintained lighter than average positions in bonds from banks. Relatively small positions in high-yield bonds, convertible bonds, preferred stocks and, at times, Treasury Inflation Protected Securities (TIPS) also contributed positively to the portfolio’s performance.

After the Federal Reserve Board (the “Fed”) reduced interest rates in late June to 1%, a 45-year low, signs of stronger economic growth roiled the bond market, causing one of the most severe six-week declines in the market’s history.The portfolio successfully avoided the full brunt of the summer decline by maintaining a relatively short average duration and continuing to emphasize securities that tend to

be less sensitive to changing interest rates. Mortgage-backed securities were particularly hard-hit in July when mortgage-refinancing activity reached record levels.The portfolio held fewer mortgage-backed securities than its benchmark, which benefited its relative performance.

Although the market remained volatile through the remainder of the year, bond prices generally recovered as inflationary pressures remained benign and the Fed repeatedly reaffirmed its commitment to keeping short-term interest rates low “for a considerable period.”

What is the portfolio’s current strategy?

After their strong rally, corporate bonds reached price levels we considered fully valued. Accordingly, we recently have focused more on issuers that, in our judgment, enjoy strong cash flows and are willing to reduce their debt. In addition, because of the risk that stronger economic growth may lead to higher interest rates in 2004, we reduced the portfolio’s average duration to a range we consider shorter than average.We believe that these strategies should enable the portfolio to weather potential volatility as the bond market continues to adjust to a more robust economic environment.

January 15, 2004

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

1	Total return includes reinvestment of dividends and any capital gains paid. Past performance is no guarantee of future results. Share price and investment return fluctuate such that upon redemption, portfolio shares may be worth more or less than their original cost.The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts, which will reduce returns. Return figures provided reflect the absorption of portfolio expenses by The Dreyfus Corporation pursuant to an agreement in effect through December 31, 2003, at which time it may be extended, terminated or modified. Had these expenses not been absorbed, the portfolio’s returns would have been lower.
2	SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions.The Lehman Brothers U.S.Aggregate Index is a widely accepted, unmanaged total return index of corporate, U.S. government and U.S. government agency debt instruments, mortgage-backed securities and asset-backed securities with an average maturity of 1-10 years.
3	SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions.The Merrill Lynch U.S. Domestic Master Index is an unmanaged performance benchmark composed of U.S.Treasury and agency, and mortgage and investment-grade corporate securities with maturities greater than or equal to one year.

The Portfolio 5

PORTFOLIO PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Investment Portfolios, Core Bond Portfolio Initial shares and Service shares with the Lehman Brothers U.S. Aggregate Index and the Merrill Lynch U.S. Domestic Master Index

Average Annual Total Returns as of 12/31/03
	Inception		From
	Date	1 Year	Inception

Initial shares	5/1/00	7.27%	7.40%
Service shares	5/1/00	7.11%	7.36%

The data for Service shares primarily represents the results of Initial shares. Actual Service shares’ average

annual total return and hypothetical growth results would have been lower. See notes below.

^†Source: Lipper Inc.

Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table

does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of

portfolio shares.

The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in

connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios,

Core Bond Portfolio on 5/1/00 (inception date of Initial shares) to a $10,000 investment made in the Lehman

Brothers U.S.Aggregate Index (the “Lehman Index”) and the Merrill Lynch U.S. Domestic Master Index (the “Merrill

Lynch Index”) on that date.

On April 1, 2003, the portfolio’s benchmark was changed to the Lehman Brothers U.S.Aggregate Index from the Merrill Lynch U.S. Domestic Master Index because the Lehman Brothers U.S.Aggregate Index is a more widely used measure of taxable bond market performance. For comparative purposes, the value of the Lehman Index on 4/30/00 is used as the beginning value on 5/1/00.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2003 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower.All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Lehman Index is a widely accepted, unmanaged total return index of corporate, U.S. government and U.S. government agency debt instruments, mortgage-backed securities and asset-backed securities with an average maturity of 1-10 years.The Merrill Lynch Index is an unmanaged performance benchmark composed of U.S. government, mortgage and BBB or higher rated corporate securities with maturities greater than or equal to one year; U.S.Treasury securities in the Merrill Lynch Index must have par amounts outstanding greater than or equal to $1 billion and corporate and generic mortgage-backed securities $100 million per coupon.The indices do not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

STATEMENT OF INVESTMENTS

December 31, 2003

	Principal
Bonds and Notes—97.7%	Amount^a	Value ($)

Aerospace & Defense—.8%
Boeing Capital,
Sr. Notes, 4.75%, 2008	279,000	288,119
General Dynamics,
Sr. Notes, 4.5%, 2010	378,000	386,894
		675,013
Agriculture—.8%
Altria,
Notes, 7%, 2013	415,000	443,512
Bunge Ltd. Finance,
Notes, 5.875%, 2013	315,000	319,388
		762,900
Airlines—.5%
American Airlines,
Pass-Through Ctfs., Ser. 1999-1, 7.024%, 2009	159,000	158,794
Continental Airlines,
Pass-Through Ctfs., Ser. 1998-1, Cl. A, 6.648%, 2017	130,026	127,116
Delta Air Lines,
Pass Through Ctfs., Ser. 2001-1, 7.111%, 2011	159,000	160,431
US Air,
Enhanced Equipment Notes, Ser. C, 8.93%, 2009	42,614 ^b	426
		446,767
Asset-Backed Ctfs./Credit Cards—.6%
MBNA Credit Card Master Note Trust,
Ser. 2002-C1, Cl. 1, 6.8%, 2014	525,000	571,682
Asset-Backed Ctfs./Home Equity Loans—.4%
Conseco Finance Securitizations:
Ser. 2000-D, Cl. A3, 7.89%, 2018	71	72
Ser. 2000-E, Cl. A5, 8.02%, 2031	268,358	277,399
The Money Store Home Equity Trust,
Ser. 1998-B, Cl. AF8, 6.11%, 2010	73,897	75,595
		353,066
Banking—1.3%
Dresdner Funding Trust I,
Bonds, 8.151%, 2031	265,000 ^c	303,387
Rabobank Capital Funding II,
Bonds, 5.26%, 2049	300,000 ^c	301,500
Sovereign Bancorp,
Sr. Notes, 10.5%, 2006	473,000	559,792
		1,164,679

	Principal
Bonds and Notes (continued)	Amount^a	Value ($)

Commercial Mortgage Pass-Through Ctfs.—1.7%
CS First Boston Mortgage Securities,
Ser. 1998-C1, Cl. C, 6.78%, 2040	441,000	483,962
Chase Commerical Mortgage Securities,
Ser. 2001-245, Cl. A1, 5.974%, 2016	667,024 ^c,d	714,817
GS Mortgage Securities II,
Ser. 2001-LIBA, Cl. F, 6.733%, 2016	300,000 ^c	323,339
		1,522,118
Commercial Services—.9%
Cendant:
Notes, 6.25%, 2010	215,000	234,162
Notes, 7.125%, 2015	287,000	324,713
McKesson,
Notes, 7.75%, 2012	189,000	222,675
		781,550
Diversified Financial Services—3.8%
American Express,
Notes, 4.875%, 2013	416,000	417,665
Capital One Bank,
Sub. Notes, 6.5%, 2013	315,000	330,833
Farmers Exchange Capital,
Trust Surplus Note Securities, 7.05%, 2028	430,000 ^c	403,596
Ford Motor Credit:
Global Landmark Securities, 5.625%, 2008	679,000	697,776
Global Landmark Securities, 6.5%, 2007	275,000	293,140
GMAC,
Medium Term Notes, 2.41%, 2005	667,000 ^d	672,361
General Electric Capital:
Medium-Term Notes, Ser. A, 6.75%, 2032	214,000	237,711
Sr. Notes, Ser. A, 4.25%, 2010	369,000	367,718
		3,420,800
Electric Utilities—2.3%
Centerpoint Energy,
Sr. Notes, 3.75%, 2023	651,000 ^c	693,586
Duke Energy,
First Mortgage, 5.3%, 2015	722,000	733,129
Public Service Co. of Colorado,
First Collateral Trust Bonds, Ser. 12, 4.875%, 2013	403,000	403,564
SCANA,
Sr. Notes, 1.62%, 2006	271,000 ^d	271,108
		2,101,387

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

		Principal
Bonds and Notes (continued)		Amount^a	Value ($)

Food & Beverages—.3%
Miller Brewing,
Notes, 4.25%, 2008		265,000 ^c	268,812
Foreign /Governmental—20.0%
Australia Government,
Bonds, Ser. 513, 6.5%, 2013	AUD	4,360,000	3,489,502
Canadian Government,
Bonds, 5.25%, 2013	CAD	2,446,000	1,976,741
Federal Republic of Brazil,
Bonds, 10.125%, 2027		880,000	937,200
New Zealand Government:
Bonds, Ser. 404, 8%, 2004	NZD	2,615,000	1,726,278
Bonds, Ser. 413, 6.5%, 2013	NZD	4,060,000	2,766,611
Republic of Argentina,
Gtd. Bonds, Ser. L-GP, 6%, 2023		5,478,000 ^b	2,766,390
Republic of Venezuela,
Bonds, 7%, 2018		880,000	683,320
Spain Letras del Tesoro
Bills, 0%, 06/18/2004	EUR	3,000,000	3,738,821
			18,084,863
Healthcare—2.0%
Bristol-Myers Squibb,
Notes, 5.75%, 2011		279,000	301,967
HCA:
Notes, 5.25%, 2008		328,000	334,631
Notes, 6.25%, 2013		192,000	196,872
Manor Care,
Gtd. Notes, 6.25%, 2013		328,000	347,270
Medco Health Solutions,
Sr. Notes, 7.25%, 2013		368,000	402,173
Wyeth,
Notes, 5.25%, 2013		193,000	196,819
			1,779,732
Manufacturing—1.6%
General Electric,
Notes, 5%, 2013		450,000	455,925
Tyco International:
Gtd. Notes, 5.8%, 2006		414,000	439,875
Sr. Conv. Debs., Ser. B, 3.125%, 2023		433,000	594,948
			1,490,748

	Principal
Bonds and Notes (continued)	Amount^a	Value ($)

Media—2.6%
British Sky Broadcasting:
Gtd. Notes, 6.875%, 2009	186,000	209,057
Sr. Notes, 8.2%, 2009	298,000	355,256
COX Communications,
Notes, 6.75%, 2011	249,000	282,504
Clear Channel Communications,
Sr. Notes, 5%, 2012	400,000	402,242
Comcast,
Sr. Notes, 6.5%, 2015	418,000	454,623
InterActive,
Notes, 7%, 2013	327,000	361,154
Viacom,
Notes, 5.5%, 2033	317,000	296,248
		2,361,084
Mining & Metals—1.0%
Alcoa,
Notes, 6%, 2012	376,000	409,276
Placer Dome,
Debs., Ser. B, 8.5%, 2045	400,000	471,437
		880,713
Municipals—1.6%
Golden State Tobacco Securitization,
Bonds, 5.5%, 2018	318,000	328,523
Puerto Rico Highway & Transportation Authority,
Bonds, 5.5%, 2012	140,000	163,650
Salt River Project Agricultural Improvement,
Bonds, 5%, 2012	350,000	392,255
State of Connecticut,
Bonds, 5%, 2010	225,000	253,791
State of Maryland,
Bonds, 5%, 2011	300,000	339,054
		1,477,273
Oil & Gas—.1%
Petro-Canada,
Notes, 4%, 2013	141,000	130,487
Property-Casualty Insurance—.8%
Fund American Cos.,
Notes, 5.875%, 2013	235,000	238,274

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)

	Principal
Bonds and Notes (continued)	Amount^a	Value ($)

Property-Casualty Insurance (continued)
Liberty Mutual Insurance,
Notes, 7.875%, 2026	210,000 ^c	212,907
Markel,
Notes, 6.8%, 2013	193,000	203,933
Metlife,
Sr. Notes, 5.375%, 2012	105,000	108,311
		763,425
Real Estate Investment Trusts—.2%
New Plan Excel Realty Trust,
Sr. Notes, 6.875%, 2004	175,000	181,397
Residential Mortgage Pass-Through Ctfs.—4.6%
Ameriquest Mortgage Securities,
Ser. 2003-IA1, Cl. A4, 4.965%, 2033	1,000,000	1,000,000
Bank of America Mortgage Securities II,
Ser. 2003-1, Cl. B4, 5.25%, 2018	144,719 ^c	128,732
Chase Mortgage Finance:
Ser. 1999-S13, Cl. B4, 6.5%, 2014	178,817 ^c	177,047
Ser. 2003-S1, Cl. B3, 5.072%, 2018	337,637 ^c	299,864
Ser. 2003-S2, Cl. B3, 5%, 2018	265,733 ^c	228,212
Ser. 2003-S2, Cl. B4, 5%, 2018	131,375 ^c	95,943
Ser. 2003-S2, Cl. B5, 5%, 2018	266,668 ^c	89,120
Countrywide Home Loans:
Ser. 2001-9, Cl. B3, 6.75%, 2031	603,488 ^c	629,619
Ser. 2002-26, Cl. B3, 5.5%, 2017	190,380 ^c	176,901
Ser. 2003-15, Cl. B5, 4.874%, 2018	586,729 ^c	205,355
Residential Funding Mortgage Securities I:
Ser. 1999-S11, Cl. M3, 6.5%, 2029	708,850	737,062
Ser. 2001-S21, Cl. B2, 6.25%, 2016	103,709	101,282
Ser. 2003-S1, Cl. B1, 5%, 2018	290,999 ^c	255,125
		4,124,262
Retail—.3%
Saks,
Notes, 7%, 2013	11,158 ^c	11,437
Toys R US,
Notes, 7.875%, 2013	240,000	258,609
		270,046
Structured Index—5.4%
AB Svensk ExportKredit,
GSCI—ER Indexed Notes, 0%, 2008	2,630,000 ^c,e	2,595,021
DJ Trac-x
Credit Linked Trust Certificates, 6.05%, 2009	1,500,000 ^c,f	1,543,125

	Principal
Bonds and Notes (continued)	Amount^a	Value ($)

Structured Index (continued)
Lehman Brothers TRAINS,
Ser. 2003-1, 8.666%, 2013	641,142 ^c,f	710,065
		4,848,211
Technology—.5%
IBM,
Sr. Notes, 4.75%, 2012	400,000	401,567
Telecommunications—2.3%
AT&T,
Sr. Notes, 8.5%, 2031	178,000	208,722
British Telecommunications,
Notes, 8.375%, 2010	191,000	232,803
France Telecom,
Notes, 9.0%, 2011	169,000	203,315
Qwest:
Bank Note, Ser. A, 6.50%, 2007	418,000 ^d	438,377
Bank Note, Ser. B, 6.95%, 2010	249,000 ^d	255,847
Sprint Capital,
Notes, 8.75%, 2032	406,000	481,318
Verizon Florida,
Debs., Ser. F, 6.125%, 2013	269,000	288,480
		2,108,862
U.S. Government—9.0%
U.S. Treasury Bonds,
5.375%, 2/15/2031	1,604,000	1,673,229
U.S. Treasury Notes,
3.25%, 5/31/2004	487,000	491,621
4.25%, 11/15/2013	5,084,000	5,079,983
7.5%, 2/15/2005	864,000	923,901
		8,168,734
U.S. Government Agencies—3.4%
Federal Home Loan Banks,
Bonds, 1.625%, 6/15/2005	3,040,000	3,041,712
U.S. Government Agencies/
Mortgage Backed—28.9%
Federal Home Loan Mortgage Corp.,
Gtd. Multiclass Mortgage Participation Ctfs. REMIC,
(Interest Only Obligations):
Ser. 1999, Cl. PW, 7%, 8/15/2026	2,496 ^g	26
Ser. 2649, Cl. IU, 5%, 12/15/2021	4,700,092 ^g	720,509

The Portfolio 13

STATEMENT OF INVESTMENTS (continued)

			Principal
Bonds and Notes (continued)			Amount	^a	Value ($)

U.S. Government Agencies/
Mortgage Backed (continued)
Federal National Mortgage Association,
3%, 9/1/2017			227,743		232,500
6.2%, 1/1/2011			1,940,153		2,140,648
REMIC Trust, Gtd. Pass-Through Ctfs.,
(Interest Only Obligations):
Ser. 2002-82, Cl. IB, 5.5%, 1/25/2021			2,931,103	^g	96,104
Ser. 2002-92, Cl. IA, 5.5%, 5/25/2031			1,153,129	^g	78,467
Government National Mortgage Association I,
5.5%, 4/15/2033			2,224,802		2,264,964
6%			17,000,000	^h	17,669,290
6.5%			1,875,000	^h	1,976,363
Government National Mortgage Association II,
5%, 7/20/2030			55,769		55,600
6.5%, 7/20/2031-9/20/2031			641,792		675,884
7%, 7/20/2031			48,931		52,020
7.5%, 5/20/2031-8/20/2031			169,544		180,617
					26,142,992
Total Bonds and Notes
(cost $		86,787,967)			88,324,882


Preferred Stocks—.5%			Shares		Value ($)

Electric Utilities—.4%
BGE Capital Trust I,
Cum., $	1.55		12,822		336,321
Telecommunications—.1%
Motorola,
Cum. Conv., $3.50 (units)			3,253	ⁱ	139,930
Total Preferred Stocks
(cost $		483,200)			476,251

			Face Amount
			Covered by
Options—.1%			Contracts ($)		Value ($)

Call Options;
Interest Rate Swaption,
March 2004 @ 4.37%
(cost $		116,733)	6,990,000		49,990

Other Investments—20.9%			Shares		Value ($)

Registered Investment Companies:
Dreyfus Institutional Cash Advantage Fund			6,299,334	^j	6,299,334
Dreyfus Institutional Cash Advantage Plus Fund			6,299,333	^j	6,299,333
Dreyfus Institutional Preferred Plus Money Market Fund			6,299,333	^j	6,299,333
Total Other Investments
(cost $	18,898,000)				18,898,000

			Principal
Short-Term Investments—4.6%			Amount	^a	Value ($)

U.S. Treasury Bills:
.92%, 1/02/2004			185,000		185,000
.99%, 1/15/2004			370,000	^k	369,882
.83%, 2/12/2004			1,640,000		1,638,491
1.0%, 5/27/2004			1,966,000		1,958,942
Total Short-Term Investments
(cost $	4,151,196)				4,152,315


Total Investments (cost $		110,437,096)	123.8%		111,901,438
Liabilities, Less Cash and Receivables			(23.8%)		(21,533,008)
Net Assets			100.0%		90,368,430

a	Principal amount stated in U.S Dollars unless otherwise noted:
	AUD—Australian Dollars
	CAD—Canadian Dollars
	EUR—Euro
	NZD—New Zealand Dollars

b	Non-income producing—security in default.
c	Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.At December 31, 2003, these securities amounted to $10,367,510 or 11.5% of net assets.
d	Variable rate security—interest rate subject to periodic change.
e	Security linked to Goldman Sachs Commodity Index—Excess Return.
f	Security linked to a portfolio of debt securities.
g	Notional face amount shown.
h	Purchased on a forward commitment basis.
i	Units represent a contract to purchase shares of common stock for $50 on November 16, 2004 and a senior note with a principal amount of $50.
j	Investments in affiliated money market mutual funds—See Note 3(d).
k	Partially held by a broker as collateral for open financial futures positions.

See notes to financial statements.

The Portfolio 15

STATEMENT OF FINANCIAL FUTURES

December 31, 2003





		Market Value		Unrealized
		Covered		(Depreciation)
	Contracts	by Contracts ($)	Expiration	at 12/31/2003 ($)


Financial Futures Short
90 Day Euro	85	20,877,063	September 2004	(10,571)
U.S. Treasury 2 Year Notes	60	12,842,813	March 2004	(15,396)
				(25,967)

See notes to financial statements.

STATEMENT OF OPTIONS WRITTEN

December 31, 2003

		Face Amount
		Covered by
		Contracts ($)	Value ($)

Call Options
Interest Rate Swaption,
March 2004 @ 3.87%
(Premiums received $	47,532)	6,990,000	7,160

See notes to financial statements.

The Portfolio 17

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003

			Cost	Value

Assets ($):
Investments in securities—See Statement of Investments			110,437,096	111,901,438
Receivable for investment securities sold				5,880,746
Dividends and interest receivable				724,567
Receivable for shares of Beneficial Interest subscribed				9,698
Prepaid expenses				701
				118,517,150

Liabilities ($):
Due to The Dreyfus Corporation and affiliates				37,359
Cash overdraft due to Custodian				2,128,603
Payable for investment securities purchased				25,457,634
Unrealized depreciation on forward
currency exchange contracts—Note 4				353,686
Payable for shares of Beneficial Interest redeemed				56,346
Unrealized depreciation on swaps—Note 4				40,062
Payable for futures variation margin—Note 4				29,263
Outstanding options written, at value (premiums
received	$47,532)—See Statement of Options Written			7,160
Payable for open swaps—Note 4				1,209
Accrued expenses				37,398
				28,148,720

Net Assets (	$)			90,368,430

Composition of Net Assets ($):
Paid-in capital				89,301,956
Accumulated undistributed investment income—net				141,616
Accumulated net realized gain (loss) on investments				(162,487)
Accumulated net unrealized appreciation (depreciation)
on investments, foreign currency transactions, options
transactions and swap transactions [including ($		25,967)
net unrealized (depreciation) on financial futures]				1,087,345

Net Assets (	$)			90,368,430



Net Asset Value Per Share
			Initial Shares	Service Shares

Net Assets ($)			31,912,164	58,456,266
Shares Outstanding			2,454,591	4,499,130

Net Asset Value Per Share ($)			13.00	12.99

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended December 31, 2003

Investment Income ($):
Income:
Interest	3,643,126
Cash dividends	203,809
Total Income	3,846,935
Expenses:
Investment advisory fee—Note 3(a)	562,655
Distribution fees—Note 3(b)	148,239
Auditing fees	43,909
Custodian fees—Note 3(b)	37,965
Prospectus and shareholders’ reports	10,328
Shareholder servicing costs—Note 3(b)	4,906
Legal fees	3,533
Trustees’ fees and expenses—Note 3(c)	2,823
Interest expense—Note 2	1,199
Miscellaneous	12,082
Total Expenses	827,639
Less—waiver of fees due to undertaking—Note 3(a)	(103,364)
Net Expenses	724,275
Investment Income—Net	3,122,660

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions:
Long transactions	5,197,802
Short sale transactions	106,629
Net realized gain (loss) on options transactions	14,854
Net realized gain (loss) on financial futures	(849,847)
Net realized gain (loss) on swap tansactions	4,609
Net realized gain (loss) on forward currency exchange contracts	(335,890)
Net Realized Gain (Loss)	4,138,157
Net unrealized appreciation (depreciation) on investments,
foreign currency transactions, options transactions and
swap transactions (including $96,783 net unrealized
appreciation on financial futures)	(776,013)
Net Realized and Unrealized Gain (Loss) on Investments	3,362,144
Net Increase in Net Assets Resulting from Operations	6,484,804

See notes to financial statements.

The Portfolio 19

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2003	2002

Operations ($):
Investment income—net	3,122,660	3,816,929
Net realized gain (loss) on investments	4,138,157	(936,393)
Net unrealized appreciation
(depreciation) on investments	(776,013)	2,378,169
Net Increase (Decrease) in Net Assets
Resulting from Operations	6,484,804	5,258,705

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	(1,402,520)	(1,470,409)
Service shares	(2,383,575)	(2,466,828)
Net realized gain on investments:
Initial shares	(597,559)	—
Service shares	(1,099,916)	—
Total Dividends	(5,483,570)	(3,937,237)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	6,288,220	12,327,742
Service shares	7,180,294	35,038,710
Dividends reinvested:
Initial shares	2,000,079	1,470,409
Service shares	3,483,491	2,466,828
Cost of shares redeemed:
Initial shares	(10,583,514)	(7,264,010)
Service shares	(10,634,810)	(10,887,362)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(2,266,240)	33,152,317
Total Increase (Decrease) in Net Assets	(1,265,006)	34,473,785

Net Assets ($):
Beginning of Period	91,633,436	57,159,651
End of Period	90,368,430	91,633,436
Undistributed investment income—net	141,616	1,758

	Year Ended December 31,

	2003	2002

Capital Share Transactions:
Initial Shares
Shares sold	481,407	972,479
Shares issued for dividends reinvested	153,156	116,120
Shares redeemed	(806,182)	(573,670)
Net Increase (Decrease) in Shares Outstanding	(171,619)	514,929

Service Shares
Shares sold	548,807	2,762,297
Shares issued for dividends reinvested	267,062	194,898
Shares redeemed	(810,360)	(865,805)
Net Increase (Decrease) in Shares Outstanding	5,509	2,091,390

See notes to financial statements.

The Portfolio 21

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single portfolio share.Total return shows how much your investment in the portfolio would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the portfolio’s financial statements.

		Year Ended December 31,

Initial Shares	2003	2002	2001^a	2000^b

Per Share Data ($):
Net asset value, beginning of period	12.87	12.67	12.94	12.50
Investment Operations:
Investment income—net	.45^c	.61^c	.75^c	.50
Net realized and unrealized
gain (loss) on investments	.47	.21	(.18)	.56
Total from Investment Operations	.92	.82	.57	1.06
Distributions:
Dividends from investment income—net	(.54)	(.62)	(.72)	(.50)
Dividends from net realized
gain on investments	(.25)	—	(.12)	(.12)
Total Distributions	(.79)	(.62)	(.84)	(.62)
Net asset value, end of period	13.00	12.87	12.67	12.94

Total Return (%)	7.27	6.70	4.55	8.61^d

Ratios/Supplemental Data (%):
Ratio of expenses to average net assets	.72	.80	.80	.80^e
Ratio of net investment income
to average net assets	3.39	4.82	5.71	6.24^e
Decrease reflected in above expense
ratios due to undertakings
by The Dreyfus Corporation	—	—	.17	1.10^e
Portfolio Turnover Rate	905.09^f	653.12	654.39	953.66^d

Net Assets, end of period ($ x 1,000)	31,912	33,810	26,744	12,048

a As required, effective January 1, 2001, the portfolio has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing discount or premium on fixed income securities on a scientific basis and including paydown gains and losses in interest income.The effect of these changes for the period ended December 31, 2001 was to decrease net investment income per share by $.04, increase net realized and unrealized gain (loss) on investments per share by $.04 and decrease the ratio of net investment income to average net assets from 6.04% to 5.71%. Per share data and ratios/supplemental data for periods prior to January 1, 2001 have not been restated to reflect these changes in presentation.

b	From May 1, 2000 (commencement of operations) to December 31, 2000.
c	Based on average shares outstanding at each month end.
d	Not annualized.
e	Annualized.
f	The portfolio turnover rate excluding mortgage dollar roll transactions was 684.58%.

See notes to financial statements.

		Year Ended December 31,

Service Shares	2003	2002	2001^a	2000^b

Per Share Data ($):
Net asset value, beginning of period	12.87	12.66	12.93	12.93
Investment Operations:
Investment income—net	.43^c	.62^c	.70^c	—
Net realized and unrealized
gain (loss) on investments	.47	.21	(.13)	—
Total from Investment Operations	.90	.83	.57	—
Distributions:
Dividends from investment income—net	(.53)	(.62)	(.72)	—
Dividends from net realized
gain on investments	(.25)	—	(.12)	—
Total Distributions	(.78)	(.62)	(.84)	—
Net asset value, end of period	12.99	12.87	12.66	12.93

Total Return (%)	7.11	6.78	4.46	—

Ratios/Supplemental Data (%):
Ratio of expenses to average net assets	.80	.80	.80	—
Ratio of net investment income
to average net assets	3.29	4.82	5.77	—
Decrease reflected in above expense
ratios due to undertakings
by The Dreyfus Corporation	.17	.20	.35	—
Portfolio Turnover Rate	905.09^d	653.12	654.39	953.66^e

Net Assets, end of period ($ x 1,000)	58,456	57,823	30,416	1

a As required, effective January 1, 2001, the portfolio has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing discount or premium on fixed income securities on a scientific basis and including paydown gains and losses in interest income.The effect of these changes for the period ended December 31, 2001 was to decrease net investment income per share by $.04, increase net realized and unrealized gain (loss) on investments per share by $.04 and decrease the ratio of net investment income to average net assets from 6.10% to 5.77%. Per share data and ratios/supplemental data for periods prior to January 1, 2001 have not been restated to reflect these changes in presentation.

b	The portfolio commenced offering Service shares on December 31, 2000.
c	Based on average shares outstanding at each month end.
d	The portfolio turnover rate excluding mortgage dollar roll transactions was 684.58%.
e	Not annualized.

See notes to financial statements.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering nine series, including the Core Bond Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series.The portfolio’s investment objective is to maximize total return through capital appreciation and current income.The Dreyfus Corporation (the “Manager”) serves as the portfolio’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Bank, N.A. (“Mellon”), which is a wholly-owned subsidiary of Mellon Financial Corporation.

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the portfolio’s shares, which are sold without a sales charge. The portfolio is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Initial and Service. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights.

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 portfolio’s financial statements are prepared in accordance with accounting principles generally accepted in the United States, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

(a) Portfolio valuation: Investments in securities (excluding short-term investments (other than U.S. Treasury Bills), financial futures, options, swaps and forward currency exchange contracts) are valued

each business day by an independent pricing service (the “Service”) approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on 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. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Trustees. Short-term investments, excluding U.S. Treasury Bills, are carried at amortized cost, which approximates value. Financial futures and options, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Options traded over-the-counter are priced at the mean between the bid prices and asked prices. Swap transactions are valued daily based upon future cash flows and other factors, such as interest rates and underlying securities. 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 portfolio does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

The Portfolio 25

NOTES TO FINANCIAL STATEMENTS (continued)

holding taxes recorded on the portfolio’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, 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 and premium on investments, is recognized on the accrual basis. Under the terms of the custody agreement, the portfolio receives net earnings credits based on available cash balances left on deposit.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are declared and paid monthly. Dividends from net realized capital gain, if any, are normally declared and paid annually, but the portfolio may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States.

(e) Federal income taxes: It is the policy of the portfolio 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 Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At December 31, 2003, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $178,887 and unrealized appreciation $1,293,847. In addition, the fund had

$506,379 of capital losses realized after October 31, 2003, which were deferred for tax purposes to the first day of the following year.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2003 and December 31, 2002 were as follows: ordinary income $5,483,570 and $3,937,237, respectively.

During the period ended December 31, 2003, as a result of permanent book to tax differences, the portfolio increased accumulated undistributed investment income-net by $803,293, decreased accumulated net realized gain (loss) on investments by $775,635 and decreased paid-in capital by $27,658. Net assets were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The portfolio may borrow up to $5 million for leveraging purposes under a short-term unsecured line of credit and participates with other Dreyfus-managed funds in a $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowings.

The average daily amount of borrowings outstanding under the leveraging arrangement during the period ended December 31, 2003 was approximately $82,200, with a related weighted average annualized interest rate of 1.46%.

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Advisory Agreement with the Manager, the investment advisory fee is computed at the annual rate of .60 of 1% of the value of the portfolio’s average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2003 to December 31, 2004, to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class exclusive of taxes, brokerage fees, interest on borrowings and extraordinary expenses, exceed an

The Portfolio 27

NOTES TO FINANCIAL STATEMENTS (continued)

annual rate of .80 of 1% of the value of the average daily net assets of their class. During the period ended December 31, 2003, the Manager waived receipt of fees of $103,364, pursuant to the undertaking.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25 of 1% of the value of the Service shares’ average daily net assets. The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products.The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2003, Service shares were charged $148,239 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2003, the portfolio was charged $190 pursuant to the transfer agency agreement.

The portfolio compensates Mellon under a custody agreement for providing custodial services for the portfolio. During the period ended December 31, 2003, the portfolio was charged $37,965 pursuant to the custody agreement.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

(d) Pursuant to an exemptive order from the Securities and Exchange Commission, the portfolio may invest its available cash balances in affiliated money market mutual funds as shown in the portfolio’s Statement of Investments. Management fees are not charged to these money market mutual funds. During the period ended December 31, 2003, the portfolio derived $121,255 in income from these investments, which is included in dividend income in the portfolio’s Statement of Operations.

NOTE 4—Securities Transactions:

The following summarizes the aggregate amount of purchases and sales (including paydowns) of investment securities and securities sold short, excluding short-term securities, financial futures, options transactions, forward currency exchange contracts and swap transactions, during the period ended December 31, 2003, of which $202,066,398 in purchases and $202,584,095 in sales were from dollar roll transactions:

	Purchases	Sales

Long transactions	829,389,176	836,877,964
Short sale transactions	12,014,189	12,120,818
Total	841,403,365	848,998,782

The portfolio may enter into dollar roll transactions with respect to mortgage-backed securities. In a dollar roll transaction, the portfolio sells mortgage-backed securities to a financial institution and simultaneously agrees to accept substantially similar (same type, coupon and maturity) securities at a later date, at an agreed upon price.

The portfolio is engaged in short-selling which obligates the portfolio to replace the security borrowed by purchasing the security at current market value.The portfolio would incur a loss if the price of the security increases between the date of the short sale and the date on which the portfolio replaces the borrowed security.The portfolio would realize a gain if the price of the security declines between those dates.The portfolio’s long security positions serve as collateral for the open short positions. At December 31, 2003, there were no securities sold short outstanding.

The Portfolio 29

NOTES TO FINANCIAL STATEMENTS (continued)

folio recognizes a realized gain or loss.These investments require initial margin deposits with a broker, which consist of cash or cash equivalents, up to approximately 10% of the contract amount.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at December 31, 2003, are set forth in the Statement of Financial Futures.

The portfolio may purchase and write (sell) put and call options in order to gain exposure to or to protect against changes in the market.

As a writer of call options, the portfolio receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the portfolio would incur a gain, to the extent of the premium, if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. Generally, the portfolio would realize a loss, if the price of the financial instrument increases between those dates.

As a writer of put options, the portfolio receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the portfolio would incur a gain, to the extent of the premium, if the price of the underlying financial instrument increases between the date the option is written and the date on which the option is terminated. Generally, the portfolio would realize a loss, if the price of the financial instrument decreases between those dates.The following summarizes the portfolio’s call/put options written for the period ended December 31, 2003:

	Face Amount		Options Terminated

	Covered by	Premiums		Net Realized
Options Written:	Contracts ($)	Received ($)	Cost ($)	Gain ($)

Contracts outstanding
December 31, 2002	—	—
Contracts written	13,980,000	116,733
Contracts closed	6,990,000	69,201	54,347	14,854
Contracts outstanding
December 31, 2003	6,990,000	47,532

The portfolio 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 portfolio 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 portfolio 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 portfolio realizes a gain if the value of the contract decreases between those dates. With respect to purchases of forward currency exchange contracts, the portfolio 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 portfolio realizes a gain if the value of the contract increases between those dates. The portfolio is also exposed to credit risk associated with counterparty nonperfor-mance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract. The following summarizes open forward currency exchange contracts at December 31, 2003:

	Foreign
Forward Currency	Currency			Unrealized
Exchange Contracts	Amounts	Cost ($) Value ($)		(Depreciation) ($)

Purchases:
Japanese Yen,
expiring 3/31/2004	67,134,201	629,422	626,895	(2,527)
Sales:		Proceeds ($)
Australian Dollars,
expiring 3/4/2004	4,360,000	3,160,847	3,256,920	(96,073)
Canadian Dollars,
expiring 3/2/2004	1,223,000	935,802	941,783	(5,981)
Canadian Dollars,
expiring 3/4/2004	1,223,000	936,985	941,718	(4,733)
Euro, expiring 3/3/2004	1,500,000	1,795,620	1,884,150	(88,530)
Euro, expiring 3/4/2004	1,500,000	1,806,795	1,884,150	(77,355)
New Zealand Dollars,
expiring 3/3/2004	1,743,000	1,109,664	1,133,996	(24,332)
New Zealand Dollars,
expiring 3/4/2004	1,743,000	1,114,178	1,133,822	(19,644)
New Zealand Dollars,
expiring 3/5/2004	3,486,000	2,233,132	2,267,643	(34,511)
Total				(353,686)

The Portfolio 31

NOTES TO FINANCIAL STATEMENTS (continued)

The portfolio may enter into swap agreements to exchange the interest rate on, or return generated by, one nominal instrument for the return generated by another nominal instrument.

Credit default swaps involve commitments to pay a fixed rate in exchange for payment if a credit event affecting a third party (the referenced company) occurs. Credit events may include a failure to pay interest or principal, bankruptcy, or restructuring. Net periodic interest payments to be received or paid are accrued daily and are recorded in the Statement of Operations as an adjustment to interest income. Credit default swaps are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation in the Statement of Operations. The following summarizes credit default swaps entered into by the portfolio at December 31, 2003:

The Portfolio 33

NOTES TO FINANCIAL STATEMENTS (continued)

Realized gains and losses on maturity or termination of swaps are presented in the Statement of Operations. Risks may arise upon entering into these agreements from the potential inability of the counterpar-ties to meet the terms of the agreement and are generally limited to the amount of net payments to be received, if any, at the date of default.

At December 31, 2003, the cost of investments for federal income tax purposes was $110,610,248; accordingly, accumulated net unrealized appreciation on investments was $1,291,190, consisting of $1,978,795 gross unrealized appreciation and $687,605 and gross unrealized depreciation.

REPORT OF INDEPENDENT AUDITORS

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Core Bond Portfolio

We have audited the accompanying statement of assets and liabilities, including the statements of investments, financial futures and options written, of Dreyfus Investment Portfolios, Core Bond Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2003, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the periods indicated therein.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included verification by examination of securities held by the custodian as of December 31, 2003 and confirmation of securities not held by the custodian by correspondence with others.An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Core Bond Portfolio at December 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States.

New York, New York

February 5, 2004

The Portfolio 35

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates .84% of the ordinary dividends paid during the fiscal year ended December 31, 2003 as qualifying for the corporate dividends received deduction.

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (60)

Chairman of the Board (1998)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

No. of Portfolios for which Board Member Serves: 186

———————

Clifford L. Alexander, Jr. (70)

Board Member (1998)

Principal Occupation During Past 5 Years:

• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present)

• Chairman of the Board of Moody's Corporation (October 2000-October 2003)

• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation

(October 1999-September 2000)

Other Board Memberships and Affiliations:

• Wyeth (formerly, American Home Products Corporation), a global leader in pharmaceuticals,

consumer healthcare products and animal health products, Director

• Mutual of America Life Insurance Company, Director

No. of Portfolios for which Board Member Serves: 65

———————

Lucy Wilson Benson (76)

Board Member (1998)

Principal Occupation During Past 5 Years:

• President of Benson and Associates, consultants to business and government (1980-present)

Other Board Memberships and Affiliations:

• The International Executive Services Corps, Director

• Citizens Network for Foreign Affairs,Vice Chairperson

• Council on Foreign Relations, Member

• Lafayette College Board of Trustees,Vice Chairperson

• Atlantic Council of the U.S., Director

No. of Portfolios for which Board Member Serves: 39

The Portfolio 37

BOARD MEMBERS INFORMATION (Unaudited) (continued)

David W. Burke (67)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• John F. Kennedy Library Foundation, Director

• U.S.S. Constitution Museum, Director

No. of Portfolios for which Board Member Serves: 83

———————

Whitney I. Gerard (69)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Partner of Chadbourne & Parke LLP

No. of Portfolios for which Board Member Serves: 37

———————

Arthur A. Hartman (77)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund

• Advisory Council Member to Barings-Vostok

Other Board Memberships and Affiliations:

• APCO Associates, Inc., Senior Consultant

No. of Portfolios for which Board Member Serves: 37

———————

George L. Perry (69)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Economist and Senior Fellow at Brookings Institution

Other Board Memberships and Affiliations:

• State Farm Mutual Automobile Association, Director

• State Farm Life Insurance Company, Director

No. of Portfolios for which Board Member Serves: 37

———————

Once elected all Board Members serve for an indefinite term.Additional information about the Board Members, including

their address is available in the fund's Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 95 investment companies (comprised of 185 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 58 years old and has been an employee of the Manager since May 1995.

STEPHEN R. BYERS, Executive Vice President since November 2002.

Chief Investment Officer,Vice Chairman and a Director of the Manager, and an officer of 95 investment companies (comprised of 185 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 50 years old and has been an employee of the Manager since January 2000. Prior to joining the Manager, he served as an Executive Vice President-Capital Markets, Chief Financial Officer and Treasurer at Gruntal & Co., L.L.C.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 96 investment companies (comprised of 201 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since June 1977.

STEVEN F. NEWMAN, Secretary since March 2000.

Associate General Counsel and Assistant Secretary of the Manager, and an officer of 96 investment companies (comprised of 201 portfolios) managed by the Manager. He is 54 years old and has been an employee of the Manager since July 1980.

ROBERT R. MULLERY, Assistant Secretary since March 2000.

Associate General Counsel of the Manager, and an officer of 26 investment companies (comprised of 58 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Assistant Secretary since March 2000.

Associate General Counsel of the Manager, and an officer of 24 investment companies (comprised of 81 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since October 1990.

MICHAEL A. ROSENBERG, Assistant Secretary since March 2000.

Associate General Counsel of the Manager, and an officer of 93 investment companies (comprised of 194 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since October 1991.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 96 investment companies (comprised of 201 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer since August 2003.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 25 investment companies (comprised of 101 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since September 1982.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of the Manager, and an officer of 18 investment companies (comprised of 73 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Manager since November 1992.

The Portfolio 39

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 25 investment companies (comprised of 101 portfolios) managed by the Manager. He is 36 years old and has been an employee of the Manager since November 1990.

KENNETH J. SANDGREN, Assistant Treasurer since November 2001.

Mutual Funds Tax Director of the Manager, and an officer of 96 investment companies (comprised of 201 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since June 1993.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since September 2002.

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 91 investment companies (comprised of 196 portfolios) managed by the Manager. He is 33 years old and has been an employee of the Distributor since October 1998. Prior to joining the Distributor, he was a Vice President of Compliance Data Center, Inc.

For More Information

Dreyfus

Investment Portfolios,

Core Bond Portfolio

200 Park Avenue

New York, NY 10166

Investment Adviser

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Custodian

Mellon Bank, N.A.

One Mellon Bank Center

Pittsburgh, PA 15258

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

To obtain information:

By telephone

Call

1-800-554-4611 or

516-338-3300

By mail Write to:

The Dreyfus Family of Funds

144 Glenn Curtiss Boulevard

Uniondale, NY 11556-0144

Attn: Institutional Servicing

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling the telephone number listed above, or by visiting the SEC’s website at http://www.sec.gov

Dreyfus

Investment Portfolios,

Core Value Portfolio

ANNUAL REPORT December 31, 2003

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

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

Contents

T H E P O R T F O L I O

2	Letter from the Chairman
3	Discussion of Performance
6	Portfolio Performance
8	Statement of Investments
12	Statement of Assets and Liabilities
13	Statement of Operations
14	Statement of Changes in Net Assets
16	Financial Highlights
18	Notes to Financial Statements
23	Report of Independent Auditors
24	Important Tax Information
25	Board Members Information
27	Officers of the Fund
F O R M O R E I N F O R M AT I O N
Back Cover

Dreyfus Investment Portfolios, Core Value Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

This annual report for Dreyfus Investment Portfolios, Core Value Portfolio covers the 12-month period from January 1, 2003, through December 31, 2003. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager,Valerie J. Sill.

Despite headwinds caused by economic and geopolitical uncertainty early in the year, stocks generally bounced back in 2003, with many stock market indexes generating their first full calendar year of gains since 1999. The combination of historically low interest rates, lower federal income tax rates, progress in the war on terrorism and above-trend economic growth during the second half of the year helped propel stock prices higher.

While stocks in general may no longer be priced as attractively as they were at the start of the year, we believe that market fundamentals remain favorable based on recent forecasts of continued economic growth. However, our optimism is tempered by the understanding that some companies, industries and market sectors always perform better than others.As always, we urge you to speak regularly with your financial advisor, who may be in the best position to suggest the Dreyfus funds designed to meet your current needs, future goals and tolerance for risk.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter

Chairman and Chief Executive Officer The Dreyfus Corporation

January 15, 2004

DISCUSSION OF PERFORMANCE

Valerie J. Sill, Portfolio Manager

How did Dreyfus Investment Portfolios, Core Value Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2003, Dreyfus Investment Portfolios, Core Value Portfolio produced total returns of 28.42% for its Initial shares and 28.14% for its Service shares.¹In comparison, the portfolio’s benchmark, the S&P 500/BARRA Value Index, produced a total return of 31.79% for the same period.²

After three years of negative results, stocks rebounded sharply during 2003, as uncertainty over Iraq eased and the U.S. economy began to recover.Although the portfolio participated in the market’s rise to a significant degree, it trailed its benchmark primarily because of its focus on higher-quality, value-oriented stocks at a time in which shares of more speculative growth companies provided better performance.

What is the portfolio’s investment approach?

The portfolio invests primarily in large-cap companies that are considered undervalued based on traditional measures, such as price-to-earnings ratios. When choosing stocks, we use a “bottom-up” stock selection approach, focusing on individual companies, rather than a “top-down” approach that forecasts market trends.We also focus on a company’s relative value, financial strength, sales and earnings momentum and likely catalysts that could ignite the stock price.

What other factors influenced the portfolio’s performance?

The stock market began the year weighed down by a persistently weak economy and uncertainty leading up to the war in Iraq. After it became clear that major combat would be over quickly, investor sentiment improved sharply.With interest rates near historic lows and new federal income tax cuts enacted by Congress, investors’ expectations of stronger economic growth grew. By the summer, more tangible signs of economic recovery had started to emerge, and during the third

The Portfolio

DISCUSSION OF PERFORMANCE (continued)

quarter of the year, the U.S. economy posted its highest level of growth in nearly 20 years.As a result, the stock market rally persisted through year-end.

The portfolio participated in the stock market rally to a significant degree. Positive returns were fueled by the portfolio’s investments in economically sensitive companies in the capital goods, financial services and technology groups. In these areas, the economic upturn benefited holdings such as Corning, which produces fiber optic cables, liquid crystal display screens and other technology components; and Deere & Co., which produces agricultural and construction equipment. Large brokerage firms, such as Goldman Sachs and Morgan Stanley, saw trading volume increase, money management fees strengthen and underwriting volume on new stock issues bounce back. Investors also began to anticipate a rebound in corporate capital spending, which benefited technology companies such as semiconductors giant Intel and global electronics leader Koninklijke (Royal) Philips Electronics.

A number of “special situations” also benefited the portfolio, such as the takeover of FleetBoston Financial by Bank of America and the turnaround at fast food giant McDonald’s, where new management boosted U.S. sales.

The portfolio’s returns relative to its benchmark suffered from not owning some of the better-performing stocks in the S&P 500/BARRA Value Index. For example, the portfolio held few of the lower-quality technology companies that led the market’s advance. Instead, we chose to emphasize larger, stable growth technology leaders. For example, Microsoft is one of the portfolio’s top ten holdings, but the company’s stock did not participate in the rally because its growth rate lagged that of smaller, less seasoned businesses. From our value-oriented perspective, we regard Microsoft as an attractively valued stock trading at the low end of its five-year price range. In addition, we believe that Microsoft is likely to attract interest later in the economic cycle where investors have historically turned toward companies with a demonstrated ability to produce stable earnings in a variety of economic climates.

What is the portfolio’s current strategy?

We have continued to emphasize companies, such as Microsoft and Nokia, ADR, that have produced solid profits but lackluster market gains in recent times. In our view, such companies should perform well when investors begin to appreciate their high-quality earnings and attractive valuations. In addition, we believe that many brokerage companies and manufacturers can continue to benefit significantly from further economic recovery in 2004.

The portfolio’s strategy is to invest in large capitalization value stocks that possess strong business fundamentals and have a catalyst in place to generate capital appreciation. Several pharmaceutical stocks such as Pfizer and Johnson & Johnson appear to fit that description.They have performed poorly because investors believed that their earnings growth in the coming years will weaken as patents on some of their larger products expire. However, we believe that these companies’ stock prices sufficiently reflect these concerns, and their stocks could rise as they introduce new products.

January 15, 2004

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

Total return includes reinvestment of dividends and any capital gains paid. Past performance is no guarantee of future results. Share price and investment return fluctuate such that upon redemption, portfolio shares may be worth more or less than their original cost.The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts, which will reduce returns. Return figures provided reflect the absorption of portfolio expenses by The Dreyfus Corporation pursuant to an agreement in effect through December 31, 2004, at which time it may be extended, terminated or modified. Had these expenses not been absorbed, the portfolio’s returns would have been lower.

SOURCE: LIPPER INC. — Reflects the reinvestment of dividends and, where applicable, capital gain distributions.The S&P 500/BARRA Value Index is a capitalization-weighted index of all the stocks in the Standard & Poor’s 500 Composite Price Index (“S&P 500 Index”) that have low price-to-book ratios.The S&P 500 Index is a widely accepted, unmanaged index of U.S. stock market performance.

The Portfolio

PORTFOLIO PERFORMANCE

Average Annual Total Returns	as of 12/31/03
	Inception			From
	Date	1 Year	5 Years	Inception

Initial shares	5/1/98	28.42%	5.30%	3.60%
Service shares	5/1/98	28.14%	5.24%	3.55%

The data for Service shares primarily represents the results of Initial shares.Actual Service shares’ average annual total return and hypothetical growth results would have been lower. See notes below.

^† Source: Lipper Inc.

Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.

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

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, Core Value Portfolio on 5/1/98 (inception date of Initial shares) to a $10,000 investment made in the Standard & Poor’s 500/BARRA Value Index (the “Index”) on that date.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Index is a capitalization-weighted index of all the stocks in the S&P 500 that have low price-to-book ratios.The Index does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio

STATEMENT OF INVESTMENTS

December 31, 2003

Common Stocks—97.2%	Shares	Value ($)

Appliances & Household Durables—.7%
Sony, ADR	16,000	554,720
Banking—12.7%
American Express	20,500	988,715
Bank of America	13,600	1,093,848
Citigroup	73,100	3,548,274
Comerica	7,300	409,238
Fannie Mae	11,500	863,190
FleetBoston Financial	34,406	1,501,822
U.S. Bancorp	38,700	1,152,486
		9,557,573
Basic Industries—2.2%
Alcoa	26,000	988,000
International Paper	15,000	646,650
		1,634,650
Beverages & Tobacco—.7%
Altria	10,300	560,526
Brokerage—12.1%
Bear Stearns Cos.	4,600	367,770
Goldman Sachs	23,400	2,310,282
J.P. Morgan Chase & Co	42,000	1,542,660
Lehman Brothers Holdings	15,500	1,196,910
Merrill Lynch & Co	31,500	1,847,475
Morgan Stanley	31,400	1,817,118
		9,082,215
Capital Goods—15.2%
Corning	80,400 ^a	838,572
Deere & Co	21,900	1,424,595
Eaton	8,700	939,426
Emerson Electric	12,800	828,800
Nokia, ADR	80,200	1,363,400
Pitney Bowes	10,900	442,758
Rockwell Collins	15,500	465,465
STMicroelectronics (New York Shares)	25,300	683,353
Telefonaktiebolaget LM Ericssson, ADR	55,200 ^a	977,040

Common Stocks (continued)	Shares	Value ($)

Capital Goods (continued)
United Technologies	20,800	1,971,216
Xerox	107,500 ^a	1,483,500
		11,418,125
Consumer Durables—3.4%
Black & Decker	7,700	379,764
Koninklijke (Royal) Philips Electronics (New York Shares)	74,900	2,178,841
		2,558,605
Consumer Non-Durables—1.5%
Jones Apparel Group	22,200	782,106
Kimberly-Clark	6,200	366,358
		1,148,464
Consumer Services—12.6%
Abercrombie & Fitch, Cl. A	12,100 ^a	298,991
Brinker International	10,900 ^a	361,444
Gannett	8,400	748,944
Interrepublic Group of Companies	24,300	379,080
Knight-Ridder	6,800	526,116
Kroger Co	19,800 ^a	366,498
Liberty Media, Cl. A	159,064 ^a	1,891,271
Limited Brands	40,700	733,821
McDonald’s	72,300	1,795,209
Safeway	30,200 ^a	661,682
Viacom, Cl. B	38,800	1,721,944
		9,485,000
Data Processing—1.5%
Automatic Data Processing	28,100	1,113,041
Energy—8.6%
Anadarko Petroleum	15,000	765,150
Apache	4,800	389,280
BP, ADR	20,400	1,006,740
Exxon Mobil	61,404	2,517,564
Royal Dutch Petroleum (New York Shares)	15,300	801,567
Schlumberger	18,800	1,028,736
		6,509,037

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Health Care—6.3%
Baxter International	37,900	1,156,708
Becton, Dickinson & Co	18,300	752,862
Johnson & Johnson	13,700	707,742
McKesson	20,200	649,632
Pfizer	26,320	929,886
Wyeth	12,600	534,870
		4,731,700
Insurance—6.7%
Allstate	31,800	1,368,036
American International Group	20,896	1,384,987
Hartford Financial Services Group	6,500	383,695
Marsh & McLennan Companies	13,400	641,726
Principal Financial Group	18,300	605,181
Travelers Property Casualty, Cl. A	39,000	654,420
		5,038,045
Technology—9.3%
Cadence Design Systems	61,400 ^a	1,103,972
Comverse Technology	33,100 ^a	582,229
Intel	37,200	1,197,840
International Business Machines	8,500	787,780
Microsoft	84,200	2,318,868
Sungard Data Systems	13,400 ^a	371,314
3COM	35,900 ^a	293,303
Tellabs	42,300 ^a	356,589
		7,011,895
Telecommunications—1.3%
Sprint (FON Group)	27,000	443,340
Sprint (PCS Group)	98,100 ^a	551,322
		994,662
Transportation—1.2%
Union Pacific	12,700	882,396
Utilities—1.2%
Verizon Communications	26,150	917,342
Total Common Stocks
(cost $60,968,146)		73,197,996

Preferred Stocks—1.4%	Shares	Value ($)

Consumer Services;
News Corp, ADR
(cost $730,692)	33,850	1,023,962

			Principal
Short-Term Investments—.7%			Amount ($)	Value ($)

Agency Discount Note;
Federal Farm Credit Bank,
.75%, 1/2/2004
(cost $	568,988)		569,000	568,988


Total Investments (cost $		62,267,826)	99.3%	74,790,946
Cash and Receivables (Net)			.7%	499,886
Net Assets			100.0%	75,290,832

a Non-income producing.

See notes to financial statements.

The Portfolio 11

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003

		Cost	Value

Assets ($):
Investments in securities—See Statement of Investments		62,267,826	74,790,946
Cash			22,178
Receivable for investment securities sold			1,062,256
Dividends and interest receivable			96,279
Receivable for shares of Beneficial Interest subscribed			30,446
			76,002,105

Liabilities ($):
Due to The Dreyfus Corporation and affiliates			54,612
Payable for investment securities purchased			605,597
Payable for shares of Beneficial Interest redeemed			13,530
Accrued expenses			37,534
			711,273

Net Assets (	$)		75,290,832

Composition of Net Assets ($):
Paid-in capital			74,872,683
Accumulated undistributed investment income—net			291,633
Accumulated net realized gain (loss) on investments			(12,396,604)
Accumulated net unrealized appreciation
(depreciation) on investments			12,523,120

Net Assets (	$)		75,290,832

Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	31,812,398	43,478,434
Shares Outstanding	2,259,062	3,087,204

Net Asset Value Per Share ($)	14.08	14.08

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended December 31, 2003

Investment Income (	$):
Income:
Cash dividends (net of $22,964 foreign taxes withheld at source)		1,183,938
Interest		19,680
Total Income		1,203,618
Expenses:
Investment advisory fee—Note 3(a)		491,092
Distribution fees—Note 3(b)		93,685
Professional fees		33,700
Prospectus and shareholders’ reports		10,830
Custodian fees—Note 3(b)		10,592
Shareholder servicing costs—Note 3(b)		6,604
Trustees’ fees and expenses—Note 3(c)		2,110
Miscellaneous		3,738
Total Expenses		652,351
Less—waiver of fees due to undertaking—Note 3(a)		(38,657)
Net Expenses		613,694
Investment Income—Net		589,924

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments		(114,806)
Net unrealized appreciation (depreciation) on investments		16,325,293
Net Realized and Unrealized Gain (Loss) on Investments		16,210,487
Net Increase in Net Assets Resulting from Operations		16,800,411

See notes to financial statements.

The Portfolio 13

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2003	2002

Operations ($):
Investment income—net	589,924	416,814
Net realized gain (loss) on investments	(114,806)	(11,139,001)
Net unrealized appreciation
(depreciation) on investments	16,325,293	(6,808,564)
Net Increase (Decrease) in Net Assets
Resulting from Operations	16,800,411	(17,530,751)

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	(248,220)	(281,596)
Service shares	(280,034)	(230,189)
Total Dividends	(528,254)	(511,785)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	3,235,592	6,631,731
Service shares	4,692,054	22,995,663
Dividends reinvested:
Initial shares	248,220	281,596
Service shares	280,034	230,189
Cost of shares redeemed:
Initial shares	(5,890,089)	(7,854,362)
Service shares	(4,327,722)	(2,525,634)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(1,761,911)	19,759,183
Total Increase (Decrease) in Net Assets	14,510,246	1,716,647

Net Assets ($):
Beginning of Period	60,780,586	59,063,939
End of Period	75,290,832	60,780,586
Undistributed investment income—net	291,633	228,180

	Year Ended December 31,

	2003	2002

Capital Share Transactions:
Initial Shares
Shares sold	261,379	507,506
Shares issued for dividends reinvested	19,911	21,783
Shares redeemed	(495,176)	(642,363)
Net Increase (Decrease) in Shares Outstanding	(213,886)	(113,074)

Service Shares
Shares sold	404,335	1,741,452
Shares issued for dividends reinvested	22,857	17,931
Shares redeemed	(360,864)	(214,858)
Net Increase (Decrease) in Shares Outstanding	66,328	1,544,525

See notes to financial statements.

The Portfolio 15

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal

periods indicated.All information (except portfolio turnover rate) reflects financial

results for a single portfolio share.Total return shows how much your investment in

the portfolio would have increased (or decreased) during each period, assuming you

had reinvested all dividends and distributions.These figures have been derived from

the portfolio’s financial statements.

		Year Ended December 31,

Initial Shares	2003	2002	2001	2000	1999

Per Share Data ($):
Net asset value, beginning of period	11.06	14.54	15.10	13.97	11.72
Investment Operations:
Investment income—net^a	.12	.09	.12	.17	.07
Net realized and unrealized
gain (loss) on investments	3.01	(3.46)	(.45)	1.50	2.24
Total from Investment Operations	3.13	(3.37)	(.33)	1.67	2.31
Distributions:
Dividends from investment income—net	(.11)	(.11)	(.01)	(.16)	(.06)
Dividends from net realized
gain on investments	—	—	(.22)	(.38)	—
Total Distributions	(.11)	(.11)	(.23)	(.54)	(.06)
Net asset value, end of period	14.08	11.06	14.54	15.10	13.97

Total Return (%)	28.42	(23.29)	(2.08)	12.06	19.73

Ratios/Supplemental Data (%):
Ratio of expenses to average net assets	.85	.88	.96	.97	1.00
Ratio of net investment income
to average net assets	.99	.69	.83	1.19	.56
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation	—	—	.02	.07	.50
Portfolio Turnover Rate	55.90	65.72	65.13	110.74	97.14

Net Assets, end of period ($ x 1,000)	31,812	27,354	37,595	23,897	15,343

a Based on average shares outstanding at each month end.

See notes to financial statements.

		Year Ended December 31,

Service Shares	2003	2002	2001	2000^a

Per Share Data ($):
Net asset value, beginning of period	11.07	14.54	15.09	15.09
Investment Operations:
Investment income—net	.10^b	.08^b	.08^b	—
Net realized and unrealized
gain (loss) on investments	3.00	(3.45)	(.40)	—
Total from Investment Operations	3.10	(3.37)	(.32)	—
Distributions:
Dividends from investment income—net	(.09)	(.10)	(.01)	—
Dividends from net realized
gain on investments	—	—	(.22)	—
Total Distributions	(.09)	(.10)	(.23)	—
Net asset value, end of period	14.08	11.07	14.54	15.09

Total Return (%)	28.14	(23.31)	(2.08)	—

Ratios/Supplemental Data (%):
Ratio of expenses to average net assets	1.00	1.00	1.00	—
Ratio of net investment income
to average net assets	.84	.62	.61	—
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation	.10	.13	.27	—
Portfolio Turnover Rate	55.90	65.72	65.13	110.74

Net Assets, end of period ($ x 1,000)	43,478	33,426	21,469	1

a The portfolio commenced offering Service shares on December 31, 2000. b Based on average shares outstanding at each month end.

See notes to financial statements.

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company operating as a series company currently offering nine series, including the Core Value Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series. The portfolio’s investment objective is to provide long-term capital growth.The Dreyfus Corporation (the “Manager”) serves as the portfolio’s investment adviser.The Manager is a wholly-owned subsidiary of Mellon Bank, N.A. (“Mellon”), which is a wholly-owned subsidiary of Mellon Financial Corporation.

sales price on the national securities market. Effective April 14, 2003, the portfolio began pricing securities traded on the NASDAQ stock market using the NASDAQ official closing price. 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. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Trustees.

(b) 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 and premium on investments, is recognized on the accrual basis. Under the terms of the custody agreement, the portfolio received net earnings credits of $410 during the period ended December 31, 2003 based on available cash balances left on deposit. Income earned under this arrangement is included in interest income.

(c) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the portfolio may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States.

The Portfolio

NOTES TO FINANCIAL STATEMENTS (continued)

(d) Federal income taxes: It is the policy of the portfolio 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 Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At December 31, 2003, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $291,633, accumulated capital losses $12,152,981 and unrealized appreciation $12,279,497.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2003. If not applied, $512,304 of the carryover expires in fiscal 2009, $10,101,121 expires in fiscal 2010 and $1,539,556 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2003 and December 31, 2002 were as follows: ordinary income $528,254 and $511,785, respectively.

During the period ended December 31, 2003, as a result of permanent book to tax differences, the portfolio increased accumulated undistributed investment income-net by $1,783 and decreased paid-in capital by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowings. During the period ended December 31, 2003, the portfolio did not borrow under the line of credit.

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Advisory Agreement with the Manager, the investment advisory fee is computed at the annual rate of .75 of 1% of the value of the portfolio’s average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2003 to December 31, 2004, to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class, exclusive of taxes, brokerage fees, interest on borrowings and extraordinary expenses, exceed 1% of the value of the average daily net assets of their class. During the period ended December 31, 2003, the Manager waived receipt of fees of $38,657, pursuant to the undertaking.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25 of 1% of the value of the Service shares’ average daily net assets.The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products.The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2003, Service shares were charged $93,685 pursuant to the Plan.

The Portfolio

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2003, amounted to $35,474,700 and $37,106,304, respectively.

At December 31, 2003, the cost of investments for federal income tax purposes was $62,511,449; accordingly, accumulated net unrealized appreciation on investments was $12,279,497, consisting of $12,955,168 gross unrealized appreciation and $675,671 gross unrealized depreciation.

REPORT OF INDEPENDENT AUDITORS

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Core Value Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, Core Value Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2003, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included verification by examination of securities held by the custodian as of December 31, 2003 and confirmation of securities not held by the custodian by correspondence with others. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Core Value Portfolio at December 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States.

New York, New York

February 5, 2004

The Portfolio 23

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates 100% of the ordinary dividends paid during the fiscal year ended December 31, 2003 as qualifying for the corporate dividends received deduction.

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (60)

Chairman of the Board (1998)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

No. of Portfolios for which Board Member Serves: 186

———————

Clifford L. Alexander, Jr. (70)

Board Member (1998)

Principal Occupation During Past 5 Years:

• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present)

• Chairman of the Board of Moody's Corporation (October 2000-October 2003)

• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation

(October 1999-September 2000)

Other Board Memberships and Affiliations:

• Wyeth (formerly, American Home Products Corporation), a global leader in pharmaceuticals,

consumer healthcare products and animal health products, Director

• Mutual of America Life Insurance Company, Director

No. of Portfolios for which Board Member Serves: 65

———————

Lucy Wilson Benson (76)

Board Member (1998)

Principal Occupation During Past 5 Years:

• President of Benson and Associates, consultants to business and government (1980-present)

Other Board Memberships and Affiliations:

• The International Executive Services Corps, Director

• Citizens Network for Foreign Affairs,Vice Chairperson

• Council on Foreign Relations, Member

• Lafayette College Board of Trustees,Vice Chairperson

• Atlantic Council of the U.S., Director

No. of Portfolios for which Board Member Serves: 39

The Portfolio 25

BOARD MEMBERS INFORMATION (Unaudited) (continued)

David W. Burke (67)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• John F. Kennedy Library Foundation, Director

• U.S.S. Constitution Museum, Director

No. of Portfolios for which Board Member Serves: 83

———————

Whitney I. Gerard (69)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Partner of Chadbourne & Parke LLP

No. of Portfolios for which Board Member Serves: 37

———————

Arthur A. Hartman (77)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund

• Advisory Council Member to Barings-Vostok

Other Board Memberships and Affiliations:

• APCO Associates, Inc., Senior Consultant

No. of Portfolios for which Board Member Serves: 37

———————

George L. Perry (69)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Economist and Senior Fellow at Brookings Institution

Other Board Memberships and Affiliations:

• State Farm Mutual Automobile Association, Director

• State Farm Life Insurance Company, Director

No. of Portfolios for which Board Member Serves: 37

———————

Once elected all Board Members serve for an indefinite term.Additional information about the Board Members, including

their address is available in the fund's Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

STEPHEN R. BYERS, Executive Vice President since November 2002.

MARK N. JACOBS, Vice President since March 2000.

STEVEN F. NEWMAN, Secretary since March 2000.

ROBERT R. MULLERY, Assistant Secretary since March 2000.

JEFF PRUSNOFSKY, Assistant Secretary since March 2000.

MICHAEL A. ROSENBERG, Assistant Secretary since March 2000.

JAMES WINDELS, Treasurer since November 2001.

RICHARD CASSARO, Assistant Treasurer since August 2003.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

The Portfolio

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT SVAGNA, Assistant Treasurer since December 2002.

KENNETH J. SANDGREN, Assistant Treasurer since November 2001.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since September 2002.

For More Information

Dreyfus

Investment Portfolios,

Core Value Portfolio

200 Park Avenue

New York, NY 10166

Investment Adviser

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Custodian

Mellon Bank, N.A.

One Mellon Bank Center

Pittsburgh, PA 15258

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

To obtain information:

By telephone

Call

1-800-554-4611 or

516-338-3300

By mail Write to:

The Dreyfus Family of Funds

144 Glenn Curtiss Boulevard

Uniondale, NY 11556-0144

Attn: Institutional Servicing

Dreyfus

Investment Portfolios,

Emerging Leaders

Portfolio

ANNUAL REPORT December 31, 2003

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

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

Contents

THE PORTFOLIO

2	Letter from the Chairman
3	Discussion of Performance
6	Portfolio Performance
8	Statement of Investments
11	Statement of Assets and Liabilities
12	Statement of Operations
13	Statement of Changes in Net Assets
14	Financial Highlights
16	Notes to Financial Statements
21	Report of Independent Auditors
22	Board Members Information
24	Officers of the Fund
FOR MORE INFORMATION
Back Cover

The Portfolio

Dreyfus Investment Portfolios, Emerging Leaders Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

This annual report for Dreyfus Investment Portfolios, Emerging Leaders Portfolio covers the 12-month period from January 1, 2003, through December 31, 2003. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio managers, Paul Kandel and Hilary Woods.

While stocks in general may no longer be priced as attractively as they were at the start of the year, we believe that market fundamentals remain favorable based on recent forecasts of continued economic growth. However, our optimism is tempered by the understanding that some companies, industries and market sectors always perform better than oth-ers.As always, we urge you to speak regularly with your financial advisor, who may be in the best position to suggest the Dreyfus funds designed to meet your current needs, future goals and tolerance for risk.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter

Chairman and Chief Executive Officer The Dreyfus Corporation

January 15, 2004

DISCUSSION OF PERFORMANCE

Paul Kandel and Hilary Woods, Portfolio Managers

How did Dreyfus Investment Portfolios, Emerging Leaders Portfolio perform relative to its benchmark?

For the 12-month period ended December 31,2003,Dreyfus Investment Portfolios, Emerging Leaders Portfolio produced total returns of 47.61% for its Initial shares and 47.16% for its Service shares.¹This compares with a total return of 47.25% for the portfolio’s benchmark, the Russell 2000 Index (the “Index”), for the same period.²

We attribute the portfolio’s gains to a positive shift in investor sentiment, which was bolstered by the successful conclusion of major combat operations in Iraq and mounting evidence of stronger global economic growth. These conditions led to a sharp recovery in stock prices that began in March 2003 and persisted through the end of the reporting period. Gains proved especially strong among small-cap stocks, where the portfolio invests to find its most attractive investment opportunities.The portfolio roughly matched the Index’s returns due to particularly good stock selections in the producer durables, consumer discretionary, utilities and health care groups, which made up for slightly weaker returns than the benchmark in the areas of energy and technology.

What is the portfolio’s investment approach?

The portfolio seeks capital growth by investing in a diversified group of companies that we believe are emerging leaders in their respective indus-tries.The companies in which we invest offer products, processes or services that we believe enhance their prospects for future earnings or revenue growth. Using fundamental research, we look for stocks with dominant positions in major product lines, sustained records of achievement and strong balance sheets. We also base investment decisions on the expected impact of changes in a company’s management or organizational structure.

Our investment approach targets growth-oriented stocks (those companies with earnings that are expected to grow faster than the overall

The Portfolio

DISCUSSION OF PERFORMANCE (continued)

market), value-oriented stocks (those that appear underpriced according to a number of financial measurements) and stocks that exhibit both growth and value characteristics. We typically sell a stock when the reasons for buying it no longer apply or when the company begins to show deteriorating fundamentals or poor relative performance.

What other factors influenced the portfolio’s performance?

In light of accumulating evidence of accelerating economic growth in the United States and around the world, we positioned the portfolio to benefit from rising demand for industrial supplies and materials. This strategy proved successful in the producer durables sector, where we established an overweighted position and share prices appreciated signif-icantly.The portfolio’s returns were enhanced to an even greater degree by targeting companies and industries within the producer durables area that we believed offered the greatest exposure to the improving economy. These included companies leveraged to the home building boom, such as residential builders Toll Brothers; construction equipment producers positioned to benefit from increasing capital expenditures in mining,such as Joy Global and Terex; and enterprises supporting the build-out of cable/telecom infrastructure, such as MasTec.

The portfolio also benefited from good individual stock selections in the consumer discretionary, utilities and health care areas.Top consumer discretionary performers included specialty retailers such as Hot Topic;gam-ing companies such as Station Casinos; and educational services providers such as DeVry. Among utilities, the portfolio derived particularly strong gains from its position in Time Warner Telecom,a broadband business services provider, which increased more than three-fold on the basis of its rapid expansion in metropolitan New York City. Finally, in health care, the portfolio emphasized service companies such as Mariner Health Care and drug development companies such as Inspire Pharmaceutical that provided strong returns.

Returns were more modest than the benchmark in the energy and technology groups. Despite the lack of exploration success and limited domestic supplies of oil and natural gas, the energy exploration and production stocks that the portfolio emphasized did not rise

substantially until the final months of the reporting period. In technology, investors generally favored previously beaten-down, smaller stocks with weak underlying business fundamentals. Because our disciplined stock selection process avoids such stocks, the portfolio held fewer of the market’s best performers than the benchmark.

What is the portfolio’s current strategy?

As of the end of 2003,we remain encouraged by continuing signs of economic growth.We expect the movement in investor psychology to continue, moving from the mortgage refinancing-led financial and consumer binge, and respective sector overvaluation, to the industrial side of the ledger.We continue to emphasize investments that we believe are positioned to benefit from rising levels of industrial activity and corporate capital spending.In particular,at the end of the reporting period the portfolio held relatively overweighted positions in the energy, producer durables, materials and processing and technology areas. On the other hand, we have de-emphasized consumer discretionary and financial services stocks, where we believe margins have peaked and where their p/e multiples may contract as interest rates rise.

January 15, 2004

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

SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions.The Russell 2000 Index is an unmanaged index of small-cap stock performance and is composed of the 2,000 smallest companies in the Russell 3000 Index.The Russell 3000 Index is composed of the 3,000 largest U.S. companies based on total market capitalization.

The Portfolio

PORTFOLIO PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Investment Portfolios, Emerging Leaders Portfolio Initial shares and Service shares and the Russell 2000 Index

Average Annual Total Returns	as of 12/31/03
	Inception		From
	Date	1 Year	Inception

Initial shares	12/15/99	47.61%	15.96%
Service shares	12/15/99	47.16%	15.78%

The data for Service shares primarily represents the results of Initial shares.Actual Service shares’ average

annual total return and hypothetical growth results would have been lower. See notes below.

Source: Lipper Inc.

Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table

does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of

portfolio shares.

The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in

connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment

Portfolios, Emerging Leaders Portfolio on 12/15/99 (inception date of Initial shares) to a $10,000 investment made in the Russell 2000 Index (the “Index”) on that date. For comparative purposes, the value of the Index on 11/30/99 is used as the beginning value on 12/15/99.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25%

annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial

shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares

from December 31, 2000 (inception date of Service shares) to December 31, 2003 (blended performance figures).The

performance figures for each share class reflect certain expense reimbursements, without which the performance of each

share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the

higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures

would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after

any expense reimbursements).The Index is an unmanaged index of small-cap stock market performance and is

composed of the 2,000 smallest companies in the Russell 3000 Index.The Russell 3000 Index is composed of the

3,000 largest U.S. companies based on total market capitalization.The Index does not take into account charges, fees

and other expenses. Further information relating to portfolio performance, including expense reimbursements, if

applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

STATEMENT OF INVESTMENTS

December 31, 2003

Common Stocks—99.0%	Shares	Value ($)

Autos & Transports—4.3%
American Axle & Manufacturing	13,000 ^a	525,460
Hub, Cl. A	22,500 ^a	484,650
Wabtec	30,000	511,200
		1,521,310
Consumer—16.0%
American Italian Pasta, Cl. A	10,500 ^a	439,950
Cott	18,500 ^a	518,185
DeVry	20,000 ^a	502,600
Emmis Communications, Cl. A	20,000 ^a	541,000
Entercom Communications	10,500 ^a	556,080
Fossil	18,500 ^a	518,185
Hot Topic	16,500 ^a	486,090
Linens ‘n Things	16,300 ^a	490,304
Mandalay Resort	12,500	559,000
The Sports Authority	13,000 ^a	499,200
Wild Oats Markets	45,000 ^a	581,850
		5,692,444
Energy—6.1%
McMoRan Exploration	28,000 ^a	525,000
Rowan Cos.	18,000 ^a	417,060
Superior Energy Services	40,000 ^a	376,000
Tom Brown	14,500 ^a	467,625
Unit	16,500 ^a	388,575
		2,174,260
Financial Services—18.6%
Arch Capital Group	11,500 ^a	458,390
Doral Financial	12,000	387,360
First Marblehead	6,700	146,596
GATX	18,500	517,630
Global Payments	12,000	565,440
Investors Financial Services	13,500	518,535
Max Re Capital	20,000	448,800
Montpelier Re Holdings	12,500	458,750
National Financial Partners	17,000	468,350
Nelnet, Cl. A	22,000	492,800
Seacoast Financial Services	20,000	548,200
Texas Regional Bancshares, Cl. A	13,000	481,000

Common Stocks (continued)	Shares	Value ($)

Financial Services (continued)
W Holding Co.	32,130	597,939
Webster Financial	11,000	504,460
		6,594,250
Health Care—12.7%
Andrx	21,500 ^a	516,860
Apria Healthcare Group	13,500 ^a	384,345
Cypress Bioscience	42,000 ^a	636,300
Dade Behring	13,500 ^a	482,490
Mariner Health Care	28,500 ^a	630,563
Renal Care Group	13,000 ^a	535,600
Techne	11,500 ^a	434,470
Telik	20,000 ^a	460,200
Vicuron Pharmaceuticals	23,500 ^a	438,275
		4,519,103
Materials & Processing—10.3%
Agnico-Eagle Mines	33,000	398,310
Airgas	22,000	472,560
Allegheny Technologies	55,000	727,100
Crown	53,500 ^a	484,710
First Quantum Minerals	47,000 ^a	510,530
OM Group	20,000 ^a	523,800
Olin	27,500	551,650
		3,668,660
Producer Durables—10.2%
AGCO	20,000 ^a	402,800
IMPCO Technologies	60,000 ^a	523,200
Joy Global	25,000	653,750
Terex	18,500 ^a	526,880
URS	20,000 ^a	500,200
United Defense Industries	14,000 ^a	446,320
Universal Compression	21,000 ^a	549,360
		3,602,510
Technology—16.0%
ATMI	20,000 ^a	462,800
Altiris	15,000 ^a	547,200
Ask Jeeves	27,500 ^a	498,300
Brooks Automation	24,000 ^a	580,080

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)			Shares	Value ($)

Technology (continued)
Exar			27,500 ^a	469,700
Integrated Circuit Systems			12,000 ^a	341,880
Micrel			27,500 ^a	428,450
MicroStrategy, Cl. A			10,000 ^a	524,800
ON Semiconductor			77,500 ^a	499,875
Packeteer			27,500 ^a	466,950
Plexus			25,000 ^a	429,250
Skyworks Solutions			47,500 ^a	413,250
				5,662,535
Utilities—4.8%
El Paso Electric			30,000 ^a	400,500
Time Warner Telecom, Cl. A			41,300 ^a	418,369
Westar Energy			21,000	425,250
Western Gas Resources			9,500	448,875
				1,692,994
Total Common Stocks
(cost $	26,717,661)			35,128,066


Other Investments—2.1%

Registered Investment Companies:
Dreyfus Institutional Cash Advantage Fund			248,000 ^b	248,000
Dreyfus Institutional Cash Advantage Plus Fund			248,000 ^b	248,000
Dreyfus Institutional Preferred Plus Money Market Fund			248,000 ^b	248,000
Total Other Investments
(cost $	744,000)			744,000


Total Investments (cost $		27,461,661)	101.1%	35,872,066
Liabilities, Less Cash and Receivables			(1.1%)	(372,856)
Net Assets			100.0%	35,499,210

a Non-income producing. b Investments in affiliated money market mutual funds—See Note 3(d). See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2003

		Cost	Value

Assets ($):
Investments in securities—See Statement of Investments		27,461,661	35,872,066
Dividends receivable			14,633
Prepaid expenses			425
			35,887,124

Liabilities ($):
Due to The Dreyfus Corporation and affiliates			30,653
Cash overdraft due to Custodian			12,922
Payable for investment securities purchased			287,954
Payable for shares of Beneficial Interest redeemed			11,779
Accrued expenses			44,606
			387,914

Net Assets (	$)		35,499,210

Composition of Net Assets ($):
Paid-in capital			27,952,285
Accumulated net realized gain (loss) on investments			(863,480)
Accumulated net unrealized appreciation
(depreciation) on investments			8,410,405

Net Assets (	$)		35,499,210




Net Asset Value Per Share
		Initial Shares	Service Shares

Net Assets ($)		19,102,270	16,396,940
Shares Outstanding		871,419	752,789

Net Asset Value Per Share ($)		21.92	21.78

See notes to financial statements.

The Portfolio 11

STATEMENT OF OPERATIONS

Year Ended December 31, 2003

Investment Income (	$):
Income:
Cash dividends (net of $9 foreign taxes withheld at source)		127,708
Interest		397
Total Income		128,105
Expenses:
Investment advisory fee—Note 3(a)		237,215
Auditing fees		39,750
Distribution fees—Note 3(b)		31,380
Prospectus and shareholders’ reports		15,711
Custodian fees—Note 3(b)		4,730
Shareholder servicing costs—Note 3(b)		2,665
Legal fees		1,724
Trustees’ fees and expenses—Note 3(c)		1,192
Miscellaneous		1,484
Total Expenses		335,851
Investment (Loss)—Net		(207,746)

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments		2,949,513
Net unrealized appreciation (depreciation) on investments		7,884,637
Net Realized and Unrealized Gain (Loss) on Investments		10,834,150
Net Increase in Net Assets Resulting from Operations		10,626,404

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2003	2002

Operations ($):
Investment (loss)—net	(207,746)	(134,613)
Net realized gain (loss) on investments	2,949,513	(2,725,341)
Net unrealized appreciation
(depreciation) on investments	7,884,637	(2,551,899)
Net Increase (Decrease) in Net Assets
Resulting from Operations	10,626,404	(5,411,853)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	5,205,309	7,099,782
Service shares	4,353,641	8,328,068
Cost of shares redeemed:
Initial shares	(3,417,162)	(5,168,938)
Service shares	(2,677,236)	(1,476,905)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	3,464,552	8,782,007
Total Increase (Decrease) in Net Assets	14,090,956	3,370,154

Net Assets ($):
Beginning of Period	21,408,254	18,038,100
End of Period	35,499,210	21,408,254

Capital Share Transactions (Shares):
Initial Shares
Shares sold	279,542	404,268
Shares redeemed	(201,434)	(329,243)
Net Increase (Decrease) in Shares Outstanding	78,108	75,025

Service Shares
Shares sold	254,915	493,678
Shares redeemed	(153,108)	(98,214)
Net Increase (Decrease) in Shares Outstanding	101,807	395,464

See notes to financial statements.

The Portfolio 13

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal

periods indicated.All information (except portfolio turnover rate) reflects financial

results for a single portfolio share.Total return shows how much your investment in

the portfolio would have increased (or decreased) during each period, assuming you

had reinvested all dividends and distributions.These figures have been derived from

the portfolio's financial statements.

		Year Ended December 31,

Initial Shares	2003	2002	2001	2000	1999^a

Per Share Data ($):
Net asset value, beginning of period	14.85	18.53	17.05	13.44	12.50
Investment Operations:
Investment income (loss)—net^b	(.12)	(.09)	(.08)	(.09)	.01
Net realized and unrealized
gain (loss) on investments	7.19	(3.59)	1.57	4.30	.93
Total from Investment Operations	7.07	(3.68)	1.49	4.21	.94
Distributions:
Dividends from investment income—net	—	—	—	(.01)	—
Dividends from net realized
gain on investments	—	—	(.01)	(.59)	—
Total Distributions	—	—	(.01)	(.60)	—
Net asset value, end of period	21.92	14.85	18.53	17.05	13.44

Total Return (%)	47.61	(19.86)	8.74	31.70	7.52^c

Ratios/Supplemental Data (%):
Ratio of expenses to average net assets	1.15	1.17	1.46	1.50	.07^c
Ratio of net investment income
(loss) to average net assets	(.67)	(.51)	(.44)	(.59)	.04^c
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation	—	—	.16	.70	1.25^c
Portfolio Turnover Rate	111.28	127.24	175.21	234.94	1.79^c

Net Assets, end of period ($ x 1,000)	19,102	11,777	13,308	5,902	2,150

a From December 15, 1999 (commencement of operations) to December 31, 1999.
b	Based on average shares outstanding at each month end.
c	Not annualized.

See notes to financial statements.

		Year Ended December 31,

Service Shares	2003	2002	2001	2000^a

Per Share Data ($):
Net asset value, beginning of period	14.79	18.51	17.05	17.05
Investment Operations:
Investment (loss)—net	(.16)^b	(.13)^b	(.08)^b	—
Net realized and unrealized
gain (loss) on investments	7.15	(3.59)	1.55	—
Total from Investment Operations	6.99	(3.72)	1.47	—
Distributions:
Dividends from net realized
gain on investments	—	—	(.01)	—
Net asset value, end of period	21.78	14.79	18.51	17.05

Total Return (%)	47.16	(20.04)	8.62	—

Ratios/Supplemental Data (%):
Ratio of expenses to average net assets	1.41	1.43	1.50	—
Ratio of net investment (loss)
to average net assets	(.92)	(.79)	(.49)	—
Decrease reflected in above
expense ratios due to undertakings
by The Dreyfus Corporation	—	—	.30	—
Portfolio Turnover Rate	111.28	127.24	175.21	234.94

Net Assets, end of period ($ x 1,000)	16,397	9,631	4,730	1

a The portfolio commenced offering Service shares on December 31, 2000 b Based on average shares outstanding at each month end.

See notes to financial statements.

The Portfolio 15

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company operating as a series company currently offering nine series, including the Emerging Leaders Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series. The portfolio’s investment objective is to provide capital growth.The Dreyfus Corporation (the “Manager”) serves as the portfolio’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Bank, N.A. (“Mellon”), which is a wholly-owned subsidiary of Mellon Financial Corporation.

the portfolio began pricing securities traded on the NASDAQ stock market using the NASDAQ official closing price. 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. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Trustees.

(b) 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 and premium on investments is recognized on the accrual basis. Under the terms of the custody agreement, the portfolio receives net earnings credits based on available cash balances left on deposit.

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2003, the components of accumulated earnings on a tax basis were as follows: accumulated capital losses $853,007 and unrealized appreciation $8,399,932.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2003. If not applied, the carryover expires in fiscal 2010.

During the period ended December 31, 2003, as a result of permanent book to tax differences, the portfolio increased accumulated undistributed investment income-net by $207,746 and decreased paid-in capital by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

NOTE 3-Investment Advisory Fee and Other Transactions with Affiliates:

(a) Pursuant to an Investment Advisory Agreement with the Manager, the investment advisory fee is computed at the annual rate of .90 of 1% of the value of the portfolio’s average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2003 to December 31, 2004, to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class, exclusive of taxes, brokerage fees, interest on borrowings and extraordinary expenses, exceed an annual rate of 1.50% of the value of the average daily net assets of their class. During the period ended December 31, 2003, there was no expense reimbursement pursuant to the undertaking.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

(d) Pursuant to an exemptive order from the Securities and Exchange Commission, the portfolio invests its available cash balances in affiliated money market mutual funds as shown in the portfolio’s Statement of Investments. Management fees are not charged to these money market mutual funds. During the period ended December 31, 2003, the portfolio derived $10,965 in income from these investments, which is included in dividend income in the portfolio’s Statement of Operations.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2003, amounted to $31,711,637 and $28,403,967 respectively.

At December 31, 2003, the cost of investments for federal income tax purposes was $27,472,134; accordingly, accumulated net unrealized appreciation on investments was $8,399,932, consisting of $8,683,372 gross unrealized appreciation and $283,440 gross unrealized depreciation.

REPORT OF INDEPENDENT AUDITORS

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Emerging Leaders Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, Emerging Leaders Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2003, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended and financial highlights for each of the periods indicated therein.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included verification by examination of securities held by the custodian as of December 31, 2003 and confirmation of securities not held by the custodian by correspondence with others.An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Emerging Leaders Portfolio at December 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States.

New York, New York

February 5, 2004

The Portfolio 21

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (60)

Chairman of the Board (1998)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

No. of Portfolios for which Board Member Serves: 186

———————

Clifford L. Alexander, Jr. (70)

Board Member (1998)

Principal Occupation During Past 5 Years:

• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present)

• Chairman of the Board of Moody's Corporation (October 2000-October 2003)

• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation

(October 1999-September 2000)

Other Board Memberships and Affiliations:

• Wyeth (formerly, American Home Products Corporation), a global leader in pharmaceuticals,

consumer healthcare products and animal health products, Director

• Mutual of America Life Insurance Company, Director

No. of Portfolios for which Board Member Serves: 65

———————

Lucy Wilson Benson (76)

Board Member (1998)

Principal Occupation During Past 5 Years:

• President of Benson and Associates, consultants to business and government (1980-present)

Other Board Memberships and Affiliations:

• The International Executive Services Corps, Director

• Citizens Network for Foreign Affairs,Vice Chairperson

• Council on Foreign Relations, Member

• Lafayette College Board of Trustees,Vice Chairperson

• Atlantic Council of the U.S., Director

No. of Portfolios for which Board Member Serves: 39

David W. Burke (67)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• John F. Kennedy Library Foundation, Director

• U.S.S. Constitution Museum, Director

No. of Portfolios for which Board Member Serves: 83

———————

Whitney I. Gerard (69)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Partner of Chadbourne & Parke LLP

No. of Portfolios for which Board Member Serves: 37

———————

Arthur A. Hartman (77)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund

• Advisory Council Member to Barings-Vostok

Other Board Memberships and Affiliations:

• APCO Associates, Inc., Senior Consultant

No. of Portfolios for which Board Member Serves: 37

———————

George L. Perry (69)

Board Member (2003)

Principal Occupation During Past 5 Years:

• Economist and Senior Fellow at Brookings Institution

Other Board Memberships and Affiliations:

• State Farm Mutual Automobile Association, Director

• State Farm Life Insurance Company, Director

No. of Portfolios for which Board Member Serves: 37

———————

Once elected all Board Members serve for an indefinite term.Additional information about the Board Members, including

their address is available in the fund's Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

The Portfolio 23

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

STEPHEN R. BYERS, Executive Vice President since November 2002.

MARK N. JACOBS, Vice President since March 2000.

STEVEN F. NEWMAN, Secretary since March 2000.

ROBERT R. MULLERY, Assistant Secretary since March 2000.

JEFF PRUSNOFSKY, Assistant Secretary since March 2000.

MICHAEL A. ROSENBERG, Assistant Secretary since March 2000.

JAMES WINDELS, Treasurer since November 2001.

RICHARD CASSARO, Assistant Treasurer since August 2003.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of Dreyfus, and an officer of 18 investment companies (comprised of 73 portfolios) managed by Dreyfus. He is 35 years old and has been an employee of Dreyfus since November 1992.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

KENNETH J. SANDGREN, Assistant Treasurer since November 2001.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since September 2002.

The Portfolio 25

For More Information

Dreyfus Investment Portfolios,

Emerging Leaders Portfolio

200 Park Avenue

New York, NY 10166

Investment Adviser

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Custodian

Mellon Bank, N.A.

One Mellon Bank Center

Pittsburgh, PA 15258

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

To obtain information:

By telephone

Call

1-800-554-4611 or

516-338-3300

By mail Write to:

The Dreyfus Family of Funds

144 Glenn Curtiss Boulevard

Uniondale, NY 11556-0144

Attn: Institutional Servicing

Dreyfus

Investment Portfolios,

Founders Discovery