N-CSR 1 semiforms172.htm SEMI-ANNUAL REPORT semiforms172
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:    06/30/06 

        FORM N-CSR 
Item 1.    Reports to Stockholders.     

  Dreyfus
Investment Portfolios,
Core Bond Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
28    Statement of Financial Futures 
28    Statement of Options Written 
29    Statement of Assets and Liabilities 
30    Statement of Operations 
31    Statement of Changes in Net Assets 
33    Financial Highlights 
37    Notes to Financial Statements 
    FOR MORE INFORMATION 
    Back Cover 

The Portfolio

Dreyfus Investment Portfolios, 
Core Bond Portfolio 

LETTER FROM THE CHAIRMAN

  Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, Core Bond Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

After a long period of remarkable resilience, the U.S. bond market encountered heightened volatility during the first half of 2006,as investors reacted to each new release of economic data or comment from members of the Federal Reserve Board (the "Fed"). The economic data often painted a contradictory picture, sometimes suggesting that inflationary pressures were increasing and, at other times, seeming to point to milder economic growth.The Fed also sent mixed signals as investors attempted to determine whether the U.S. central bank might pause in its tightening campaign after seventeen consecutive rate hikes since June 2004.

In the judgment of our Chief Economist, Richard Hoey, the U.S. economy may be moving into a more mature, slower-growth phase. However, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies.As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the portfolio performed during the reporting period, as well as market perspectives, we have provided a Discussion of Performance given by the portfolio manager.

Thank you for your continued confidence and support.

Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

Kent Wosepka, Portfolio Manager

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

For the six-month period ended June 30,2006,the portfolio's Initial shares achieved a total return of –0.34%, and its Service shares achieved a total return of –0.36% .1The portfolio produced aggregate income dividends of $0.30 per share for both its Initial and Service shares. In comparison, the Lehman Brothers U.S. Aggregate Index (the "Index"), the portfolio's benchmark, produced a total return of –0.72% for the same period. 2

Although bonds generally fared well over the first four months of 2006, heightened inflation and economic concerns sparked a downturn in May and June, more than erasing earlier gains.The portfolio's returns fared better than the Index, primarily due to our emphasis on some of the better-performing market sectors and relatively defensive security selection strategies within those areas.

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. government bonds and notes, corporate bonds, convertible securities, asset-backed securities, mortgage-related securities and foreign bonds. The portfolio may invest up to 35% of its assets in bonds rated below investment-grade credit quality, also known as high yield securities.

Typically, the portfolio can be expected to have an average effective maturity of between five and 10 years and an average effective duration between 3.5 and six years. While the portfolio's duration and maturity usually will stay within these ranges, if the maturity or duration of the Index moves outside these ranges, so may the portfolio's.

What other factors affected the portfolio's performance?

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

As it has since June 2004, the Federal Reserve Board (the "Fed") continued to raise short-term interest rates, driving the overnight federal funds rate to 5.25% by the reporting period's end. Nonetheless, the U.S. economy continued to grow at a fairly robust rate, expanding by 5.6% in the first quarter alone. Still, fixed-income investors appeared relatively unconcerned about inflation or credit risks through the first four months of the year, helping to support relative returns in both the more interest-rate- and credit-sensitive areas of the bond market, including U.S.Treasury securities and corporate bonds, respectively.

Investor sentiment appeared to change dramatically in early May, when hawkish comments by Fed Chairman Ben Bernanke were interpreted as a signal that interest rates might move higher than previously expected, potentially choking off economic growth.At the same time, prices of energy supplies, industrial commodities and precious metals moved sharply higher, sparking renewed inflation concerns.The resulting "flight to quality" caused prices of previously high-flying emerging-markets bonds and some corporate securities to fall sharply, while other areas of the bond market declined less severely.

The portfolio benefited in this environment from its relatively short average duration, which helped limit its sensitivity to rising interest rates. In addition, while we emphasized some of the market's more credit-sensitive areas throughout the reporting period, our relatively defensive security selection strategy within those sectors helped the portfolio weather the downturn better than the Index. For example, we invested a higher percentage of the portfolio's assets in high yield and investment-grade corporate bonds than the Index, but our focus on credits with relatively short maturities helped limit volatility. In addition, we successfully avoided bonds backed by companies engaged in leveraged buyouts or other activities that we considered unfriendly to bondholders. Instead, we favored issuers with strong balance sheets and sound business fundamentals. Finally, the portfolio's holdings of emerging-markets currencies and an underweighted position in mortgage-backed securities made modestly positive contributions to relative performance.

During May and June, yields on U.S.Treasuries rose as the market priced in expectations of higher inflation and tighter Federal Reserve monetary policy. Throughout the reporting period, the portfolio owned more intermediate term bonds, also known as a "bulleted" yield-curve strategy. With the sell-off in longer maturity bonds, our strategy helped to protect the portfolio from the full brunt of long-term price volatility. Still, it was not enough to offset overall negative performance, to which both the portfolio and bond market—as measured by the Index—were subject.

4

What is the portfolio's current strategy?

When the Fed implemented its seventeenth consecutive rate hike in late June, changes in the accompanying statement suggested that the tightening campaign may be nearing completion. In our view, monetary policy is now neutral, and any further increases will depend on the economic data.

Therefore, we have lengthened the portfolio's average duration toward a position that is more in line with the Index. In addition, we have retained the portfolio's bulleted yield-curve positioning in anticipation of wider yield spreads between shorter- and longer-term bonds. We also have maintained a relatively defensive security selection strategy, including an effort to avoid corporate issuers that may engage in leveraged buyouts. While we remain cautious regarding emerging-markets bonds and currencies, we occasionally have attempted to take advantage of market volatility by establishing positions in certain currencies, such as the Brazil real, at prices we believe to be attractive.

July 17, 2006
    The portfolio is only available as a funding vehicle under variable 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 
    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 certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement 
    that is in effect through December 31, 2006, at which time it may be extended, modified or 
    terminated. 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. 

The Portfolio 5

  UNDERSTANDING YOUR
PORTFOLIO'S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, Core Bond Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended June 30, 2006     
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 3.86    $ 3.96 
Ending value (after expenses)    $996.60    $996.40 

COMPARING YOUR PORTFOLIO'S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 3.91    $ 4.01 
Ending value (after expenses)    $1,020.93    $1,020.83 

† Expenses are equal to the portfolio's annualized expense ratio of .78% for Initial shares and .80% for Service shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

  STATEMENT OF INVESTMENTS
June 30, 2006 (Unaudited)
    Coupon    Maturity    Principal     
Bonds and Notes—143.7%    Rate (%)    Date    Amount ($)    Value ($) 
Aerospace & Defense—.1%                 
L-3 Communications,                 
Bonds    3.00    8/1/35    60,000 a    58,800 
Agricultural—.6%                 
Altria Group,                 
Debs.    7.75    1/15/27    160,000    180,017 
Altria Group,                 
Notes    7.00    11/4/13    180,000    190,172 
                370,189 
Airlines—.0%                 
US Airways,                 
Enhanced Equip. Notes, Ser. CL C    8.93    10/15/09    42,614 b,c    4 
Asset-Backed Ctfs./                 
Automobile Receivables—1.5%                 
Capital One Prime Auto Receivables             
Trust, Ser. 2006-1, Cl. A1    4.87    3/15/07    137,653    137,626 
Ford Credit Auto Owner Trust,                 
Ser. 2004-A, Cl. C    4.19    7/15/09    160,000    157,124 
Ford Credit Auto Owner Trust,                 
Ser. 2005-B, Cl. B    4.64    4/15/10    185,000    180,756 
Hyundai Auto Receivables Trust,                 
Ser. 2006-A, Cl. A2    5.13    2/16/09    200,000    199,677 
WFS Financial Owner Trust,                 
Ser. 2005-2, Cl. B    4.57    11/19/12    250,000    244,758 
                919,941 
Asset-Backed Ctfs./Credit Cards—1.4%             
BA Credit Card Master Note Trust,                 
Ser. 2002-C1, Cl. C1    6.80    7/15/14    525,000    547,459 
Capital One Multi-Asset Execution                 
Trust, Ser. 2004-C1, Cl. C1    3.40    11/16/09    335,000    330,968 
                878,427 
Asset-Backed Ctfs./                 
Home Equity Loans—11.3%                 
Accredited Mortgage Loan Trust,                 
Ser. 2005-2, Cl. A2A    5.42    7/25/35    47,222 d    47,250 
Bayview Financial Acquisition                 
Trust, Ser. 2005-B, Cl. 1A6    5.21    4/28/39    235,000    222,670 
Bear Stearns Asset Backed                 
Securities, Ser. 2005-TC1,                 
Cl. A1    5.43    5/25/35    20,330 d    20,330 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Asset-Backed Ctfs./                 
Home Equity Loans (continued)             
Citigroup Mortgage Loan Trust,                 
Ser. 2005-OPT3, Cl. A1A    5.41    5/25/35    110,401 d    110,410 
Conseco Finance Home Loan Trust,             
Ser. 2000-E, Cl. A5    8.02    8/15/31    90,527    91,783 
Countrywide Asset-Backed Ctfs.,                 
Ser. 2006-1, Cl. AF1    5.45    7/25/36    292,107 d    292,307 
Credit-Based Asset Servicing and                 
Securitization, Ser. 2005-CB4,                 
Cl. AV1    5.42    8/25/35    70,875 d    70,935 
Credit-Based Asset Servicing and                 
Securitization, Ser. 2006-CB1,                 
Cl. AF1    5.46    1/25/36    235,027    233,627 
Credit-Based Asset Servicing and                 
Securitization, Ser. 2005-CB8,                 
Cl. AF5    5.65    12/25/35    335,000    323,956 
Credit-Based Asset Servicing and                 
Securitization, Ser. 2006-CB2,                 
Cl. AF1    5.72    12/25/36    121,217    120,706 
CS First Boston Mortgage                 
Securities, Ser. 2002-HE4,                 
Cl. MF1    6.94    8/25/32    140,000    140,159 
First Franklin Mortgage Loan Asset             
Backed Certificates,                 
Ser. 2005-FFH3, Cl. 2A1    5.45    9/25/35    167,576 d    167,699 
First NLC Trust,                 
Ser. 2005-3, Cl. AV2    5.55    12/25/35    460,000 d    460,508 
GSAA Trust,                 
Ser. 2006-7, Cl. AV1    5.40    3/25/46    581,228 d    584,806 
Home Equity Asset Trust,                 
Ser. 2005-8, Cl. M4    5.90    2/25/36    185,000 d    185,836 
Home Equity Asset Trust,                 
Ser. 2005-8, Cl. M7    6.44    2/25/36    125,000 d    126,531 
Mastr Asset Backed Securities                 
Trust, Ser. 2005-WMC1, Cl. A3    5.42    3/25/35    895 d    895 
Merrill Lynch Mortgage Investors,             
Ser. 2005-WMC2, Cl. A2A    5.41    4/25/36    4,845 d    4,844 
Morgan Stanley ABS Capital I,                 
Ser. 2005-WMC2, Cl. A2A    5.40    2/25/35    5,065 d    5,068 
Morgan Stanley ABS Capital I,                 
Ser. 2005-NC2, Cl. A3A    5.40    3/25/35    79,360 d    79,414 
 
8                 

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Asset-Backed Ctfs./                 
Home Equity Loans (continued)             
Morgan Stanley ABS Capital I,                 
Ser. 2005-WMC3, Cl. A2A    5.41    3/25/35    19,125 d    19,136 
Morgan Stanley ABS Capital I,                 
Ser. 2005-WMC6, Cl. A2A    5.43    7/25/35    164,608 d    164,746 
Morgan Stanley Home Equity Loans,             
Ser. 2006-3, Cl. A1    5.37    4/25/36    190,798 d    190,899 
Newcastle Mortgage Securities                 
Trust, Ser. 2006-1, Cl. A1    5.39    4/25/36    543,241 d    543,657 
Ownit Mortgage Loan Asset Backed             
Certificates, Ser. 2006-1,                 
Cl. AF1    5.42    12/25/36    303,092    300,961 
Popular ABS Mortgage Pass-Through             
Trust, Ser. 2005-6, Cl. M1    5.91    1/25/36    205,000    200,747 
Renaissance Home Equity Loan                 
Trust, Ser. 2006-1, Cl. AF2    5.53    5/25/36    300,000    298,271 
Residential Asset Mortgage                 
Products, Ser. 2004-RS12,                 
Cl. AI6    4.55    12/25/34    180,000    171,456 
Residential Asset Mortgage                 
Products, Ser. 2005-RS3,                 
Cl. AIA1    5.42    3/25/35    70,920 d    70,971 
Residential Asset Mortgage                 
Products, Ser. 2005-RZ1, Cl. A1    5.42    4/25/35    69,746 d    69,800 
Residential Asset Mortgage                 
Products, Ser. 2005-RS2,                 
Cl. AII1    5.43    2/25/35    31,192 d    31,216 
Residential Asset Mortgage                 
Products, Ser. 2004-RS12,                 
Cl. AII1    5.45    6/25/27    50,178 d    50,214 
Residential Asset Mortgage                 
Products, Ser. 2005-EFC5,                 
Cl. M1    5.72    10/25/35    220,000 d    220,447 
Residential Asset Mortgage                 
Products, Ser. 2005-RS2, Cl. M2    5.80    2/25/35    210,000 d    212,801 
Residential Asset Mortgage                 
Products, Ser. 2005-RS2, Cl. M3    5.87    2/25/35    70,000 d    71,103 
Residential Asset Securities,                 
Ser. 2006-EMX3, Cl. A1    5.38    4/25/36    192,306 d    192,441 
Residential Asset Securities,                 
Ser. 2005-EMX1, Cl. AI1    5.42    3/25/35    40,406 d    40,436 

The Portfolio 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Asset-Backed Ctfs./                 
Home Equity Loans (continued)             
Residential Asset Securities,                 
Ser. 2005-EMX3, Cl. M1    5.75    9/25/35    215,000 d    216,067 
Residential Asset Securities,                 
Ser. 2005-EMX3, Cl. M2    5.77    9/25/35    240,000 d    240,975 
Residential Funding Mortgage                 
Securities II, Ser. 2006-HSA2,                 
Cl. AI1    5.43    3/25/36    84,694 d    84,740 
Soundview Home Equity Loan Trust,             
Ser. 2005-B, Cl. M2    5.73    5/25/35    150,000    146,683 
Specialty Underwriting &                 
Residential Finance,                 
Ser. 2005-BC2, Cl. A2A    5.42    12/25/35    48,685 d    48,723 
Specialty Underwriting &                 
Residential Finance,                 
Ser. 2005-BC1, Cl. A1A    5.43    12/25/35    38,677 d    38,704 
Specialty Underwriting &                 
Residential Finance,                 
Ser. 2004-BC4, Cl. A2A    5.47    10/25/35    13,834 d    13,841 
                6,928,769 
Asset-Backed Ctfs./                 
Manufactured Housing—.8%                 
Green Tree Financial,                 
Ser. 1994-7, Cl. M1    9.25    3/15/20    247,137    255,814 
Origen Manufactured Housing,                 
Ser. 2005-B, Cl. A2    5.25    12/15/18    150,000    147,590 
Origen Manufactured Housing,                 
Ser. 2005-B, Cl. M2    6.48    1/15/37    105,000    102,154 
                505,558 
Auto Manufacturing—1.1%                 
DaimlerChrysler NA Holding,                 
Notes    4.88    6/15/10    110,000    105,242 
DaimlerChrysler NA Holding,                 
Gtd. Notes    5.74    3/13/09    200,000 d    200,285 
DaimlerChrysler NA Holding,                 
Gtd. Notes, Ser. E    5.68    10/31/08    365,000 d    366,857 
                672,384 

10
    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Banking—6.1%                 
Chevy Chase Bank FSB,                 
Sub. Notes    6.88    12/1/13    160,000    160,800 
Chuo Mitsui Trust & Banking,                 
Sub. Notes    5.51    12/29/49    300,000 a,d    274,043 
Colonial Bank NA/Montgomery, AL,             
Sub. Notes    6.38    12/1/15    250,000    248,377 
Crestar Capital Trust I,                 
Gtd. Cap. Secs    8.16    12/15/26    340,000    356,276 
Industrial Bank of Korea,                 
Sub. Notes    4.00    5/19/14    325,000 a,d    306,504 
Popular North America,                 
Notes    5.65    12/12/07    180,000 d    180,405 
Sovereign Bancorp,                 
Sr. Notes    5.51    3/1/09    290,000 a,d    290,510 
USB Capital IX,                 
Gtd. Notes    6.19    4/15/42    470,000 d    460,076 
Washington Mutual,                 
Notes    5.37    1/15/10    75,000 d    75,381 
Washington Mutual,                 
Sub. Notes    4.63    4/1/14    330,000    298,599 
Washington Mutual Preferred                 
Funding Delaware, Bonds    6.53    3/29/49    200,000 a,d    192,282 
Wells Fargo Capital I,                 
Gtd. Cap. Secs    7.96    12/15/26    165,000    172,604 
Western Financial Bank,                 
Sub. Debs.    9.63    5/15/12    230,000    253,250 
Zions Bancorporation,                 
Sr. Unscd. Notes    5.23    4/15/08    275,000 d    275,210 
Zions Bancorporation,                 
Sub. Notes    6.00    9/15/15    185,000    183,642 
                3,727,959 
Building & Construction—1.3%                 
American Standard,                 
Gtd. Notes    7.38    2/1/08    205,000    208,886 
Centex,                 
Notes    4.75    1/15/08    100,000    98,102 

The Portfolio 11

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Building & Construction (continued)             
DR Horton,                 
Gtd. Notes    5.88    7/1/13    180,000    169,357 
DR Horton,                 
Gtd. Notes    8.00    2/1/09    115,000    119,642 
Schuler Homes,                 
Gtd. Notes    10.50    7/15/11    170,000    179,100 
                775,087 
Chemicals—1.3%                 
Equistar Chemicals/Funding,                 
Gtd. Notes    10.13    9/1/08    65,000    68,738 
ICI North America,                 
Debs.    8.88    11/15/06    75,000    75,732 
ICI Wilmington,                 
Gtd. Notes    4.38    12/1/08    50,000    48,280 
ICI Wilmington,                 
Gtd. Notes    5.63    12/1/13    145,000    139,241 
ICI Wilmington,                 
Gtd. Notes    7.05    9/15/07    100,000 e    101,039 
Lubrizol,                 
Debs.    6.50    10/1/34    95,000 e    91,143 
RPM International,                 
Sr. Notes    4.45    10/15/09    105,000    100,102 
RPM International,                 
Bonds    6.25    12/15/13    180,000    177,221 
                801,496 
Commercial & Professional Services—1.3%             
Aramark Services,                 
Gtd. Notes    6.38    2/15/08    250,000    249,350 
Aramark Services,                 
Gtd. Notes    7.00    5/1/07    240,000    240,655 
Erac USA Finance,                 
Notes    5.40    4/30/09    90,000 a,d    90,113 
Erac USA Finance,                 
Notes    7.95    12/15/09    100,000 a    106,087 
RR Donnelley & Sons,                 
Notes    5.00    11/15/06    105,000    104,510 
                790,715 

12
    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Commercial Mortgage                 
Pass-Through Ctfs.—6.2%                 
Bayview Commercial Asset Trust,                 
Ser. 2006-SP1, Cl. A1    5.59    4/25/36    205,332 a,d    205,396 
Bayview Commercial Asset Trust,                 
Ser. 2004-1, Cl. A    5.68    4/25/34    122,768 a,d    122,999 
Bayview Commercial Asset Trust,                 
Ser. 2005-3A, Cl. A2    5.72    11/25/35    254,063 a,d    254,063 
Bayview Commercial Asset Trust,                 
Ser. 2003-1, Cl. A    5.90    8/25/33    110,348 a,d    110,947 
Bayview Commercial Asset Trust,                 
Ser. 2003-2, Cl. A    5.90    12/25/33    142,558 a,d    143,004 
Bayview Commercial Asset Trust,                 
Ser. 2006-1A, Cl. B3    8.27    4/25/36    97,620 a,d    97,620 
Bayview Commercial Asset Trust,                 
Ser. 2005-3A, Cl. B3    8.32    11/25/35    94,097 a,d    95,582 
Bear Stearns Commercial Mortgage             
Securities, Ser. 2003-T12,                 
Cl. A3    4.24    8/13/39    345,000    325,732 
Bear Stearns Commercial Mortgage             
Securities, Ser. 2004-PWR5,                 
Cl. A2    4.25    7/11/42    150,000    143,492 
Bear Stearns Commercial Mortgage             
Securities, Ser. 2005-T18,                 
Cl. A2    4.56    2/13/42    185,000    178,596 
Bear Stearns Commercial Mortgage             
Securities. Ser. 1998-C1,                 
Cl. A2    6.44    6/16/30    185,000    187,170 
Calwest Industrial Trust,                 
Ser. 2002-CALW, Cl. A    6.13    2/15/17    190,000 a    193,493 
Credit Suisse/Morgan Stanley                 
Commercial Mortgage                 
Certificate, Ser. 2006-HC1A,                 
Cl. A1    5.39    5/15/23    295,000 a,d    295,272 
Crown Castle Towers,                 
Ser. 2005-1A, Cl. D    5.61    6/15/35    170,000 a    165,638 
DLJ Commercial Mortgage,                 
Ser. 1998-CF2, Cl. A1B    6.24    11/12/31    150,000    151,635 

The Portfolio 13

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Commercial Mortgage                 
Pass-Through Ctfs. (continued)             
Global Signal Trust,                 
Ser. 2006-1, Cl. D    6.05    2/15/36    225,000 a    223,065 
Global Signal Trust,                 
Ser. 2006-1, Cl. E    6.50    2/15/36    50,000 a    49,574 
GMAC Commercial Mortgage                 
Securities, Ser. 2003-C3,                 
Cl. A2    4.22    4/10/40    125,000    120,211 
Morgan Stanley Capital I,                 
Ser. 1999-RM1, Cl. A2    6.71    12/15/31    72,074    73,355 
Washington Mutual Asset                 
Securities, Ser. 2003-C1A,                 
Cl. A    3.83    1/25/35    682,724 a    649,886 
                3,786,730 
Diversified Financial                 
Services—10.4%                 
Ameriprise Financial,                 
Jr. Sub. Bonds    7.52    6/1/66    145,000 d    146,130 
Amvescap,                 
Notes    4.50    12/15/09    330,000    315,732 
Amvescap,                 
Notes    5.38    12/15/14    100,000    94,711 
Amvescap,                 
Sr. Notes    5.90    1/15/07    135,000    135,106 
CIT Group,                 
Sr. Notes    5.32    8/15/08    275,000 d,e    275,707 
Countrywide Home Loans,                 
Gtd. Notes, Ser. J    5.50    8/1/06    145,000    145,013 
Countrywide Home Loans,                 
Notes    4.13    9/15/09    190,000 e    180,822 
Countrywide Home Loans,                 
Notes, Ser. L    2.88    2/15/07    400,000    393,388 
Fondo LatinoAmericano De Reservas,             
Notes    3.00    8/1/06    440,000 a    439,326 
Ford Motor Credit,                 
Notes    5.63    10/1/08    200,000    185,107 
General Motors Acceptance,                 
Notes    5.97    1/16/07    275,000 d    274,225 
Glencore Funding,                 
Gtd. Notes    6.00    4/15/14    380,000 a    347,572 

14

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Diversified Financial Services (continued)             
HSBC Finance,                 
Sr. Notes    5.68    9/14/12    415,000 d,e    417,304 
Jefferies Group,                 
Sr. Notes    7.75    3/15/12    100,000    107,542 
Kaupthing Bank,                 
Notes    7.13    5/19/16    300,000 a    300,616 
Leucadia National,                 
Sr. Notes    7.00    8/15/13    145,000    141,375 
MBNA Capital A,                 
Gtd. Cap. Secs., Ser. A    8.28    12/1/26    115,000    120,574 
Mizuho JGB Investment,                 
Bonds    9.87    12/29/49    130,000 a,d    139,259 
MUFG Capital Finance Tier 1,                 
Gtd. Bonds    6.35    7/15/49    305,000 d    294,737 
Pemex Finance,                 
Bonds    9.69    8/15/09    325,000    346,829 
Residential Capital,                 
Gtd. Notes    6.90    4/17/09    325,000 a,d    325,226 
Residential Capital,                 
Sr. Unscd. Notes    6.38    6/30/10    125,000    123,406 
SB Treasury Co.,                 
Bonds    9.40    12/29/49    360,000 a,d    382,576 
St. George Funding,                 
Bonds    8.49    12/29/49    275,000 a    292,186 
Tokai Preferred Capital,                 
Bonds    9.98    12/29/49    305,000 a,d    327,329 
Windsor Financing,                 
Gtd. Notes    5.88    7/15/17    100,000 a    96,908 
                6,348,706 
Diversified Metals & Mining—1.2%             
Falconbridge,                 
Bonds    5.38    6/1/15    35,000    31,961 
Falconbridge,                 
Debs.    7.35    11/1/06    275,000    276,301 
Falconbridge,                 
Notes    6.00    10/15/15    220,000    209,841 
Southern Copper,                 
Sr. Notes    7.50    7/27/35    215,000    206,342 
                724,445 

The Portfolio 15

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Electric Utilities—5.5%                 
Ameren,                 
Bonds    4.26    5/15/07    305,000    301,001 
American Electric Power,                 
Sr. Notes    4.71    8/16/07    145,000 d    143,263 
Cinergy,                 
Debs.    6.53    12/16/08    135,000    137,130 
Cogentrix Energy,                 
Gtd. Notes    8.75    10/15/08    200,000 a    215,000 
Consumers Energy,                 
First Mortgage Bonds, Ser. B    5.38    4/15/13    310,000    297,913 
Dominion Resources/VA,                 
Sr. Notes, Ser. D    5.79    9/28/07    370,000 d    370,354 
FirstEnergy,                 
Notes, Ser. A    5.50    11/15/06    110,000    109,879 
FirstEnergy,                 
Notes, Ser. B    6.45    11/15/11    350,000    356,532 
FPL Energy National Wind,                 
Scd. Notes    5.61    3/10/24    95,038 a    91,239 
FPL Group Capital,                 
Gtd. Debs., Ser. B    5.55    2/16/08    290,000    289,069 
Mirant North America,                 
Sr. Notes    7.38    12/31/13    85,000 a    82,450 
Nevada Power,                 
Mortgage Notes    5.95    3/15/16    40,000 a    38,112 
Nisource Finance,                 
Gtd. Notes    5.76    11/23/09    175,000 d    175,352 
PP & L Capital Funding,                 
Gtd. Notes, Ser. D    8.38    6/15/07    210,000    213,536 
Sierra Pacific Power,                 
Mortgage Notes    6.25    4/15/12    100,000    98,782 
TXU,                 
Sr. Notes, Ser. O    4.80    11/15/09    305,000    291,689 
Virginia Electric & Power,                 
Sr. Notes, Ser. A    5.38    2/1/07    165,000    164,580 
                3,375,881 
Environmental Control—.6%                 
Oakmont Asset Trust,                 
Notes    4.51    12/22/08    100,000 a    96,388 

16
        Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Environmental Control (continued)             
Waste Management,                     
Sr. Notes        6.50    11/15/08    130,000    132,103 
Waste Management,                     
Sr. Notes        7.00    7/15/28    125,000    129,944 
                    358,435 
Food & Beverages—1.0%                     
HJ Heinz,                     
Notes        6.43    12/1/20    225,000 a    228,724 
Safeway,                     
Sr. Unscd. Notes        4.13    11/1/08    130,000    124,912 
Stater Brothers Holdings,                     
Sr. Notes        8.13    6/15/12    135,000    133,988 
Tyson Foods,                     
Sr. Unscd. Notes        6.60    4/1/16    100,000    97,919 
                    585,543 
Foreign/Governmental—2.5%                 
Banco Nacional de Desenvolvimento             
Economico e Social, Unsub.                 
Notes        5.87    6/16/08    250,000 d    246,000 
Export-Import Bank of Korea,                 
Sr. Notes        4.50    8/12/09    110,000    105,710 
Federal Republic of Brazil,                     
Bonds    BRL    12.50    1/5/16    1,140,000 e,f    517,129 
Mexican Fixed Rate Bonds,                     
Bonds, Ser. M    MXN    9.00    12/22/11    3,320,000 f    299,415 
Republic of Argentina,                     
Bonds        4.89    8/3/12    440,000 d    366,080 
                    1,534,334 
Health Care—1.3%                     
Baxter International,                     
Sr. Unscd. Notes        5.20    2/16/08    200,000    198,327 
Coventry Health Care,                     
Sr. Notes        5.88    1/15/12    130,000    125,450 
Medco Health Solutions,                     
Sr. Notes        7.25    8/15/13    368,000    390,179 
Teva Pharmaceutical Finance,                 
Gtd. Notes        6.15    2/1/36    125,000    112,598 
                    826,554 

The Portfolio 17

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Lodging & Entertainment—.8%                 
Carnival,                 
Notes    7.30    6/1/07    175,000    177,063 
Harrah's Operating,                 
Gtd. Notes    7.13    6/1/07    140,000    141,284 
MGM Mirage,                 
Gtd. Notes    6.00    10/1/09    25,000    24,438 
Mohegan Tribal Gaming Authority,             
Sr. Notes    6.13    2/15/13    125,000    118,281 
Speedway Motorsports,                 
Sr. Sub. Notes    6.75    6/1/13    20,000    19,500 
                480,566 
Machinery—.2%                 
Terex,                 
Gtd. Notes    7.38    1/15/14    140,000    140,000 
Manufacturing—1.0%                 
Bombardier,                 
Notes    6.30    5/1/14    220,000 a    192,500 
Tyco International Group,                 
Gtd. Notes    5.80    8/1/06    270,000    270,034 
Tyco International Group,                 
Gtd. Notes    6.88    1/15/29    165,000    170,574 
                633,108 
Media—2.2%                 
Clear Channel Communications,                 
Notes    4.25    5/15/09    180,000    170,804 
Clear Channel Communications,                 
Sr. Unscd. Notes    4.50    1/15/10    215,000    202,706 
Liberty Media,                 
Sr. Notes    6.83    9/17/06    370,000 d    371,240 
Media General,                 
Gtd. Notes    6.95    9/1/06    280,000    280,243 
Time Warner,                 
Gtd. Debs.    7.70    5/1/32    100,000    109,003 
Univision Communications,                 
Gtd. Notes    2.88    10/15/06    210,000    208,109 
                1,342,105 
Oil & Gas—3.4%                 
BJ Services,                 
Sr. Unscd. Notes    5.44    6/1/08    625,000 d    625,108 

18

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Oil & Gas (continued)                 
Chesapeake Energy,                 
Sr. Unscd. Notes    7.63    7/15/13    100,000 e    101,125 
Colorado Interstate Gas,                 
Sr. Notes    5.95    3/15/15    100,000    91,378 
Enterprise Products Operating,                 
Sr. Notes, Ser. B    4.00    10/15/07    35,000    34,065 
Enterprise Products Operating,                 
Sr. Notes, Ser. B    4.63    10/15/09    380,000    364,330 
ONEOK,                 
Sr. Unscd. Notes    5.51    2/16/08    125,000    124,238 
Plains All American Pipeline/PAA                 
Finance, Sr. Notes    5.63    12/15/13    375,000 d    360,898 
Plains All American Pipeline/PAA                 
Finance, Sr. Notes    5.88    8/15/16    250,000    241,310 
Sempra Energy,                 
Sr. Notes    4.62    5/17/07    130,000    128,760 
                2,071,212 
Packaging & Containers—.6%                 
Crown Americas Capital,                 
Sr. Notes    7.63    11/15/13    120,000 a    118,500 
Crown Americas Capital,                 
Sr. Notes    7.75    11/15/15    60,000 a    59,400 
Sealed Air,                 
Bonds    6.88    7/15/33    170,000 a    162,969 
                340,869 
Paper & Forest Products—.5%                 
Sappi Papier Holding,                 
Gtd. Notes    6.75    6/15/12    150,000 a    140,493 
Temple-Inland,                 
Bonds    6.63    1/15/18    150,000    149,539 
                290,032 
Property-Casualty Insurance—1.7%             
AON,                 
Notes    6.95    1/15/07    85,000 d    85,440 
AON Capital Trust A,                 
Gtd. Cap. Secs    8.21    1/1/27    150,000 e    162,232 
Assurant,                 
Sr. Notes    6.75    2/15/34    85,000    83,996 

The Portfolio 19

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Property-Casualty Insurance (continued)             
Hanover Insurance Group,                 
Debs.    7.63    10/15/25    10,000    10,074 
Lincoln National,                 
Bonds    7.00    5/17/66    125,000 d,e    124,249 
Marsh & McLennan Cos.,                 
Sr. Notes    5.38    3/15/07    225,000    223,868 
Nippon Life Insurance,                 
Notes    4.88    8/9/10    250,000 a    240,484 
Phoenix Cos.,                 
Sr. Unscd. Notes    6.68    2/16/08    100,000    100,278 
                1,030,621 
Real Estate Investment Trusts—6.4%             
Archstone-Smith Operating Trust,                 
Notes    3.00    6/15/08    140,000    133,034 
Archstone-Smith Operating Trust,                 
Sr. Unscd. Notes    5.25    5/1/15    25,000    23,542 
Archstone-Smith Operating Trust,                 
Notes    5.63    8/15/14    40,000    38,947 
Arden Realty,                 
Notes    5.25    3/1/15    215,000    206,061 
Boston Properties,                 
Sr. Notes    6.25    1/15/13    90,000    90,919 
Brandywine Operating Partnership,             
Gtd. Notes    5.95    4/1/09    225,000 d    225,279 
Duke Realty,                 
Notes    3.50    11/1/07    125,000    121,327 
Duke Realty,                 
Sr. Notes    5.25    1/15/10    170,000    166,007 
EOP Operating,                 
Notes    6.11    10/1/10    95,000 d    96,090 
EOP Operating,                 
Notes    6.76    6/15/07    275,000    277,229 
EOP Operating,                 
Sr. Notes    7.00    7/15/11    270,000    280,789 
ERP Operating,                 
Notes    4.75    6/15/09    75,000    73,060 
ERP Operating,                 
Notes    5.13    3/15/16    100,000    92,573 

20
    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Real Estate Investment Trusts (continued)             
Healthcare Realty Trust,                 
Sr. Notes    5.13    4/1/14    360,000    332,240 
HRPT Properties Trust,                 
Sr. Unscd. Notes    5.94    3/16/11    350,000 d    350,692 
Mack-Cali Realty,                 
Notes    5.25    1/15/12    80,000    76,874 
Mack-Cali Realty,                 
Unscd. Notes    5.05    4/15/10    190,000    183,288 
National Retail Properties,                 
Sr. Unscd. Notes    6.15    12/15/15    150,000    145,232 
Regency Centers,                 
Gtd. Notes    5.25    8/1/15    200,000    187,255 
Simon Property Group,                 
Notes    4.60    6/15/10    160,000    153,470 
Simon Property Group,                 
Notes    4.88    8/15/10    105,000    101,608 
Socgen Real Estate,                 
Bonds    7.64    12/29/49    580,000 a,d    592,466 
                3,947,982 
Residential Mortgage                 
Pass-Through Ctfs.—4.9%                 
American General Mortgage Loan             
Trust, Ser. 2006-1, Cl. A1    5.75    12/25/35    189,529 a    189,077 
Citigroup Mortgage Loan Trust,                 
Ser. 2005-WF2, Cl. AF2    4.92    8/25/35    119,538    118,067 
Citigroup Mortgage Loan Trust,                 
Ser. 2005-WF1, Cl. A5    5.01    2/25/35    205,000    194,963 
First Horizon Alternative Mortgage             
Securities, Ser. 2004-FA1,                 
Cl. 1A1    6.25    10/25/34    867,879    865,300 
Impac CMB Trust,                 
Ser. 2005-8, Cl. 2M2    6.07    2/25/36    191,889 d    192,741 
Impac CMB Trust,                 
Ser. 2005-8, Cl. 2M3    6.82    2/25/36    147,607 d    141,042 
Impac Secured Assets CMN Owner             
Trust, Ser. 2006-1, Cl. 2A1    5.67    5/25/36    99,392 d    99,607 
Indymac Index Mortgage Loan Trust,             
Ser. 2006-AR9, Cl. B1    6.06    6/25/36    49,993 d    48,849 

The Portfolio 21

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Residential Mortgage                 
Pass-Through Ctfs. (continued)             
JP Morgan Mortgage Trust,                 
Ser. 2005-A1, Cl. 5A1    4.48    2/25/35    109,682 d    105,720 
Nomura Asset Acceptance,                 
Ser. 2005-AP2, Cl. A5    4.98    5/25/35    225,000    213,919 
Nomura Asset Acceptance,                 
Ser. 2005-WF1, Cl. 2A5    5.16    3/25/35    170,000    162,940 
Washington Mutual,                 
Ser. 2005-AR4, Cl. A4B    4.68    4/25/35    450,000 d    435,691 
Wells Fargo Mortgage Backed                 
Securities Trust, Ser. 2003-1,                 
Cl. 2A9    5.75    2/25/33    220,000    209,873 
                2,977,789 
Retail—.3%                 
May Department Stores,                 
Gtd. Notes    5.95    11/1/08    100,000    100,194 
May Department Stores,                 
Notes    3.95    7/15/07    70,000    68,648 
                168,842 
State/Government General Obligations—2.1%             
Michigan Tobacco Settlement                 
Finance Authority, Taxable                 
Tobacco Settlement                 
Asset-Backed Bonds    7.31    6/1/34    460,000    459,471 
Michigan Tobacco Settlement                 
Finance Authority, Taxable                 
Tobacco Settlement                 
Asset-Backed Bonds    7.43    6/1/34    150,000 d    150,000 
New York Counties Tobacco Trust             
IV, Tobacco Settlement                 
Pass-Through Bonds    6.00    6/1/27    255,000    245,157 
Tobacco Settlement Authority of                 
Iowa, Tobacco Settlement                 
Asset-Backed Bonds    6.50    6/1/23    435,000    423,159 
                1,277,787 

22
    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Technology—.6%                 
Freescale Semiconductor,                 
Sr. Notes    6.88    7/15/11    100,000    101,000 
Hewlett-Packard,                 
Notes    5.75    12/15/06    255,000    255,199 
                356,199 
Telecommunications—7.2%                 
AT&T,                 
Notes    5.26    5/15/08    325,000 d    325,136 
Deutsche Telekom International                 
Finance, Gtd. Bonds    8.25    6/15/30    210,000 d    243,138 
Deutsche Telekom International                 
Finance, Gtd. Notes    5.63    3/23/09    605,000 d    605,684 
France Telecom,                 
Notes    7.75    3/1/11    160,000 d    172,041 
Nextel Communications,                 
Sr. Notes, Ser. F    5.95    3/15/14    140,000    134,694 
Nextel Partners,                 
Sr. Notes    8.13    7/1/11    120,000    126,150 
Nordic Telephone Holdings,                 
Sr. Notes EUR    8.25    5/1/16    50,000 a,f    65,708 
PanAmSat,                 
Gtd. Notes    9.00    6/15/16    125,000 a,g    127,500 
Qwest,                 
Bank Note, Ser. A    8.53    6/30/07    167,200 d    170,022 
Qwest,                 
Bank Note, Ser. B    6.95    6/30/10    50,000 d    49,250 
Qwest,                 
Bank Note, Ser. B    6.95    6/30/10    199,000 d    196,015 
Qwest,                 
Sr. Notes    7.88    9/1/11    90,000    91,575 
Sprint Capital,                 
Gtd. Notes    8.75    3/15/32    125,000    151,168 
Telecom Italia Capital,                 
Gtd. Notes    5.63    2/1/11    185,000 d    186,203 

The Portfolio 23

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Telecommunications (continued)             
Telefonica Emisones,                 
Gtd. Notes    5.98    6/20/11    1,230,000    1,226,784 
Verizon Global Funding,                 
Sr. Notes    5.30    8/15/07    275,000 d    275,130 
Windstream,                 
Sr. Notes    8.13    8/1/13    180,000 a,g    184,500 
Windstream,                 
Sr. Notes    8.63    8/1/16    55,000 a,g    56,513 
                4,387,211 
Textiles & Apparel—.2%                 
Mohawk Industries,                 
Sr. Unscd. Notes    5.75    1/15/11    135,000    132,709 
Transportation—.3%                 
Ryder System,                 
Notes    3.50    3/15/09    195,000    183,586 
U.S. Government Agencies/                 
Mortgage-Backed—22.5%                 
Federal Home Loan Mortgage Corp:             
Multiclass Mortgage                 
Participation Ctfs. REMIC,                 
Ser. 2586, Cl. WE 4.00%, 12/15/32        192,912    175,024 
Multiclass Mortgage                 
Participation Ctfs. REMIC,                 
(Interest Only Obligations),                 
Ser. 2752, Cl. GM 5.00%, 3/15/26        3,000,000 h    493,408 
Federal National Mortgage Association:             
4.50%            1,750,000 i    1,654,293 
5.00%            3,100,000 i    2,985,672 
5.50%            1,845,000 i    1,803,754 
5.00%, 9/1/17            122,999    118,770 
5.50%, 8/1/34—9/1/34            1,474,998    1,420,977 
6.00%, 7/15/29            1,800,000 g    1,771,875 
Government National Mortgage Association I:             
Ser. 2004-43, Cl. A, 2.82%, 12/16/19        280,951    266,461 
Ser. 2003-88, Cl. AC, 2.91%, 6/16/18        263,794    251,338 
Ser. 2004-57, Cl. A, 3.02%, 1/16/19        363,044    345,691 
Ser. 2004-9, Cl. A, 3.36%, 8/16/22        97,500    92,570 
Ser. 2004-25, Cl. AC, 3.38%, 1/16/23        268,189    255,671 

24
    Principal     
Bonds and Notes (continued)    Amount ($)    Value ($) 
U.S. Government Agencies/         
Mortgage-Backed (continued)         
Government National Mortgage Association I (continued):     
Ser. 2004-77, Cl. A, 3.40%, 3/16/20    205,675    196,993 
Ser. 2004-67, Cl. A, 3.65%, 9/16/17    147,501    142,859 
Ser. 2005-34, Cl. A, 3.96%, 9/16/21    190,632    184,893 
Ser. 2005-79, Cl. A, 4.00%, 10/16/33    197,814    190,042 
Ser. 2005-50, Cl. A, 4.02%, 10/16/26    170,722    164,563 
Ser. 2005-29, Cl. A, 4.02%, 7/16/27    276,693    265,678 
Ser. 2005-42, Cl. A, 4.05%, 7/16/20    238,760    231,440 
Ser. 2004-51, Cl. A, 4.15%, 2/16/18    66,762    64,716 
Ser. 2005-67, Cl. A, 4.22%, 6/16/21    193,744    188,270 
Ser. 2005-32, Cl. B, 4.39%, 8/16/30    475,000    459,306 
Government National Mortgage Association II:     
4.50%, 7/20/30    20,737 d    20,729 
6.50%, 7/20/31    22,515    22,748 
        13,767,741 
U.S. Government Securities—33.3%         
U.S. Treasury Bonds;         
4.50%, 2/15/36    1,080,000 g    968,710 
U.S. Treasury Notes:         
4.25%, 1/15/11    710,000 e    685,788 
4.50%, 2/15/09    80,000 e    78,760 
5.13%, 6/30/11    18,630,000 g    18,657,666 
        20,390,924 
Total Bonds and Notes         
(cost $88,911,786)        87,889,240 
 
 
Preferred Stocks—.3%    Shares    Value ($) 
Banking—.2%         
Sovereign Capital Trust IV,         
Conv., Cum. $2.1875    2,150    97,825 
Diversified Financial Services—.1%         
AES Trust VII,         
Conv., Cum. $3.00    1,450    71,050 
Total Preferred Stocks         
(cost $176,769)        168,875 

The Portfolio 25

STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Face Amount     
    Covered by     
Options—.1%    Contracts ($)    Value ($) 
Call Options—.1%         
12-Month Euribor Interest Swap,         
March 2007 @ 4.488    4,760,000    3,931 
Dow Jones CDX.EM.5         
August 2006 @ .9805    1,150,000    7,245 
Dow Jones CDX.EM.5         
August 2006 @ .982    1,950,000    12,285 
        23,461 
Put Options—.0%         
3-Month Capped USD Libor-BBA         
Interest Rate Swap, June 2007 @ 5.75    12,120,000    9,718 
5-Year Euribor Interest Swap,         
May 2007 @ 4.1785    1,226,000    13,595 
        23,313 
Total Options         
(cost $75,802)        46,774 
    Principal     
Short-Term Investments—.4%    Amount ($)    Value ($) 
U.S. Government Agency—.3%         
Federal National Mortgage         
Association, 5.13%, 7/17/06    200,000    199,544 
U.S. Treasury Bill—.1%         
4.72%, 9/7/06    75,000 j    74,345 
Total Short-Term Investments         
(cost $273,875)        273,889 
 
Other Investment—.7%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $452,000)    452,000 k    452,000 

26
Investment of Cash Collateral         
for Securities Loaned—4.2%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Plus Fund         
(cost $2,562,705)    2,562,705 k    2,562,705 
 
Total Investments (cost $92,452,937)    149.4%    91,393,483 
Liabilities, Less Cash and Receivables    (49.4%)    (30,224,607) 
Net Assets    100.0%    61,168,876 

a Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2006, these securities
amounted to $9,457,899 or 15.5% of net assets.
b Non-income producing—security in default.
c The value of this security has been determined in good faith under the direction of the Board of Trustees.
d Variable rate security—interest rate subject to periodic change.
e All or a portion of these securities are on loan. At June 30, 2006, the total market value of the portfolio's securities
on loan is $2,450,025 and the total market value of the collateral held by the portfolio is $2,562,705.
f Principal amount stated in U.S. Dollars unless otherwise noted
BRL—Brazilian Real
EUR—Euro
MXN—Mexican Peso
g Purchased on a delayed delivery basis.
h Notional face amount shown.
i Purchased on a forward commitment basis.
j Held by a broker as collateral for open financial futures positions.
k Investment in affiliated money market mutual fund.
Portfolio Summary (Unaudited) †         
 
Value (%)    Value (%) 
Corporate Bonds    57.2    State/Government General Obligations    2.1 
U.S. Government & Agencies    55.8    Preferred Stocks    .3 
Asset/Mortgage Backed    26.1    Futures/Options/Swaps/Forward     
Short-Term/Money Market Investments    5.3    Currency Exchange Contracts    (.1) 
Foreign/Governmental    2.5        149.2 

† Based on net assets.
See notes to financial statements.

The Portfolio 27

STATEMENT OF FINANCIAL FUTURES 
June 30, 2006 (Unaudited) 

        Market Value        Unrealized 
        Covered by        Appreciation 
    Contracts    Contracts ($)    Expiration    at 6/30/2006 ($) 
 
Financial Futures Short                 
U.S. Treasury 10 Year Notes    47    (4,928,391)    September 2006    20,015 

See notes to financial statements.

  STATEMENT OF OPTIONS WRITTEN
June 30, 2006 (Unaudited)
    Face Amount     
    Covered by     
    Contracts ($)    Value ($) 
Call Options:         
Dow Jones CDX.EM.X5         
August 2006 @ .99    2,300,000    (7,360) 
Dow Jones CDX.EM.X5         
August 2006 @ .9915    3,900,000    (12,480) 
Peru, 8.75%, 11/21/2033 Swap         
pay @ 1.70 exp. 12/20/2010         
July 2006 @ 3.05    335,000    — 
Put Options;         
12-Month Euribor Interest Swap         
March 2007 @ 5.973    4,760,000    (26,481) 
(Premiums received $48,855)        (46,321) 

See notes to financial statements.

28

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)
    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments     
(including securities on loan, valued at $2,450,025)—Note 1(c):     
Unaffiliated issuers    89,438,232    88,378,778 
Affiliated issuers    3,014,705    3,014,705 
Cash        48,313 
Cash denominated in foreign currencies    17,794    17,872 
Receivable for investment securities sold        778,846 
Dividends and interest receivable        674,829 
Receivable from broker from swap transactions—Note 4    66,953 
Swaps premium paid        48,374 
Unrealized appreciation on swap contracts—Note 4    20,422 
Receivable for shares of Beneficial Interest subscribed    241 
Prepaid expenses        11,880 
        93,061,213 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    45,980 
Payable for investment securities purchased    29,010,108 
Liability for securities on loan—Note 1(c)        2,562,705 
Unrealized depreciation on swap contracts—Note 4    109,024 
Payable for shares of Beneficial Interest redeemed    66,500 
Outstanding options written, at value (premiums received $48,855)     
—See Statement of Options Written        46,321 
Payable for futures variation margin—Note 4    21,297 
Unrealized depreciation on forward currency exchange contracts—Note 4    11,134 
Accrued expenses        19,268 
        31,892,337 
Net Assets ($)        61,168,876 
Composition of Net Assets ($):         
Paid-in capital        63,377,262 
Accumulated undistributed investment income—net    678,468 
Accumulated net realized gain (loss) on investments    (1,751,010) 
Accumulated net unrealized appreciation (depreciation) on investments,     
foreign currency transactions, options transactions and swap transactions     
(including $20,015 net unrealized appreciation on financial futures)    (1,135,844) 
Net Assets ($)        61,168,876 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    19,786,070    41,382,806 
Shares Outstanding    1,588,366    3,322,845 
Net Asset Value Per Share ($)    12.46    12.45 

See notes to financial statements.

The Portfolio 29

  STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Interest    1,739,157 
Dividends:     
Unaffiliated issuers    8,333 
Affiliated issuers    5,623 
Income from securities lending    856 
Total Income    1,753,969 
Expenses:     
Investment advisory fee—Note 3(a)    199,745 
Distribution fees—Note 3(b)    55,670 
Professional fees    16,474 
Custodian fees—Note 3(b)    14,765 
Prospectus and shareholders' reports    3,501 
Trustees' fees and expenses—Note 3(c)    1,111 
Shareholder servicing costs—Note 3(b)    1,047 
Miscellaneous    23,864 
Total Expenses    316,177 
Less—waiver of fees due to undertaking—Note 3(a)    (51,749) 
Less—reduction in custody fees due to earnings credits—Note 1(c)    (1,203) 
Net Expenses    263,225 
Investment Income—Net    1,490,744 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    (868,597) 
Net realized gain (loss) on options transactions    19,493 
Net realized gain (loss) on financial futures    (69,710) 
Net realized gain (loss) on swap transactions    60,815 
Net realized gain (loss) on forward currency exchange contracts    (882) 
Net Realized Gain (Loss)    (858,881) 
Net unrealized appreciation (depreciation) on investments,     
foreign currency transactons, options transactions and     
swap transactions (including $38,374 net unrealized     
appreciation on financial futures)    (839,328) 
Net Realized and Unrealized Gain (Loss) on Investments    (1,698,209) 
Net (Decrease) in Net Assets Resulting from Operations    (207,465) 
 
See notes to financial statements.     

30

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Operations ($):         
Investment income—net    1,490,744    2,745,210 
Net realized gain (loss) on investments    (858,881)    371,015 
Net unrealized appreciation         
(depreciation) on investments    (839,328)    (1,560,685) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    (207,465)    1,555,540 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (529,880)    (969,776) 
Service shares    (1,055,100)    (1,863,638) 
Total Dividends    (1,584,980)    (2,833,414) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    295,830    2,911,861 
Service shares    1,139,707    2,594,764 
Dividends reinvested:         
Initial shares    529,880    969,776 
Service shares    1,055,100    1,863,638 
Cost of shares redeemed:         
Initial shares    (5,292,013)    (4,693,145) 
Service shares    (6,880,475)    (9,305,849) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (9,151,971)    (5,658,955) 
Total Increase (Decrease) in Net Assets    (10,944,416)    (6,936,829) 
Net Assets ($):         
Beginning of Period    72,113,292    79,050,121 
End of Period    61,168,876    72,113,292 
Undistributed investment income—net    678,468    772,704 

The Portfolio 31

STATEMENT OF CHANGES IN NET ASSETS (continued)

See notes to financial statements.

32

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.

The Portfolio 33

FINANCIAL HIGHLIGHTS (continued)

  a As of January 1, 2004, the portfolio has adopted the method of accounting for interim payments on swap contracts in
accordance with Financial Accounting Standards Board Statement No. 133.These interim payments are reflected
within net realized and unrealized gain (loss) on swap contracts, however, prior to January 1, 2004, these interim
payments were reflected within interest income/expense in the Statement of Operations.The effect of this change for
the period ended December 31, 2004, was to increase net investment income per share by less than $.01, decrease net
realized and unrealized gain (loss) on investments per share by less than $.01 and increase the ratio of net
investment income to average net assets from 3.66% to 3.69%. Per share data and ratios/supplemental data for
periods prior to January 1, 2004 have not been restated to reflect this change in presentation.
b Based on average shares outstanding at each month end.
c Not annualized.
d Annualized.
e The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended June 30, 2006,
December 31, 2005, December 31, 2004 and December 31, 2003 were 166.27%, 304.69%, 706.48% and
684.58%, respectively.
See notes to financial statements.
  34

The Portfolio 35

FINANCIAL HIGHLIGHTS (continued)

a As of January 1, 2004, the portfolio has adopted the method of accounting for interim payments on swap contracts in
accordance with Financial Accounting Standards Board Statement No. 133.These interim payments are reflected
within net realized and unrealized gain (loss) on swap contracts, however, prior to January 1, 2004, these interim
payments were reflected within interest income/expense in the Statement of Operations.The effect of this change for
the period ended December 31, 2004, was to increase net investment income per share by less than $.01, decrease net
realized and unrealized gain (loss) on investments per share by less than $.01 and increase the ratio of net
investment income to average net assets from 3.57% to 3.60%. Per share data and ratios/supplemental data for
periods prior to January 1, 2004 have not been restated to reflect this change in presentation.
b Based on average shares outstanding at each month end.
c Not annualized.
d Annualized.
e The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended June 30, 2006,
December 31, 2005, December 31, 2004 and December 31, 2003 were 166.27%, 304.69%, 706.48% and
684.58%, respectively.
See notes to financial statements.

36

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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" or "Dreyfus") serves as the portfolio's investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial").

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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Portfolio 37

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(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 valued 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. Restricted securities, as well as securities or other assets for which recent market quotations are not readily available, that are not valued by a pricing service approved by the Board of Trustees, or are determined by the portfolio not to reflect accurately fair value (such as when an event occurs after the close of the exchange on which the security is principally traded and that is determined by the portfolio to have changed the value of the security), are valued at fair value as determined in good faith under the direction of the Board of Trustees.The factors that may be considered when fair valuing a security include fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Short-term investments, excluding U.S.Treasury Bills,

38

are carried at amortized cost, which approximates value. Investments in registered investment companies are valued at their net asset 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 and asked price. Investments in swap transactions are valued each business day by an independent pricing service approved by the Board of Trustees. Swaps are valued by the service by using a swap pricing model which incorporates among other factors, default probabilities, recovery rates, credit curves of the underlying issuer and swap spreads on interest rates. 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 on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding 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, 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.

The Portfolio 39

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the portfolio may lend securities to qualified institutions. It is the portfolio's policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as "affiliated" in the Act.

(e) 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 U.S. generally accepted accounting principles.

40

On June 30,2006,the Board of Trustees declared a cash dividend of $.050 per share for both the Initial shares and Service shares, from undistributed investment income-net payable on July 3, 2006 (ex-dividend date) to shareholders of record as of the close of business on June 30, 2006.

(f) 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.

The portfolio has an unused capital loss carryover of $426,080 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $343,556 of the carryover expires in fiscal 2012 and $82,524 expires in fiscal 2013.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2005 were as follows: ordinary income $2,833,414. The tax character of current year distributions will be determined at the end of the current fiscal year.

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 borrowing. During the period ended June 30, 2006, the portfolio did not borrow under either line of credit.

The Portfolio 41

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 the value of the portfolio's average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2006 to December 31, 2006, 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 .80% of the value of the average daily net assets of their class. During the period ended June 30, 2006, the Manager waived receipt of fees of $51,749, 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 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 June 30, 2006, Service shares were charged $55,670 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 June 30, 2006, the portfolio was charged $39 pursuant to the transfer agency agreement.

The portfolio compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement for providing custodial services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $14,765 pursuant to the custody agreement.

42

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $30,498, Rule 12b-1 distribution plan fees $8,610, custodian fees $13,717, chief compliance officer fees $1,926 and transfer agency per account fees $17, which are offset against an expense reimbursement currently in effect in the amount of $8,788.

(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 SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, financial futures, options transactions, forward currency exchange contracts and swap transactions during the period ended June 30, 2006, amounted to $228,363,074 and $222,889,543, respectively, of which $74,714,681 in purchases and $74,768,071 in sales were from mortgage dollar roll transactions.

A mortgage dollar roll transaction involves a sale by the portfolio of mortgage related securities that it holds with an agreement by the portfolio to repurchase similar securities at an agreed upon price and date.The securities purchased will bear the same interest rate as those sold, but generally will be collateralized by pools of mortgages with different prepayment histories than those securities sold.

The Portfolio 43

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The portfolio may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The portfolio is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the portfolio to "mark to market" on a daily basis, which reflects the change in market value of the contracts at the close of each day's trading. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses. When the contracts are closed, the portfolio recognizes a realized gain or loss. These investments require initial margin deposits with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at June 30, 2006, 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

44

decreases between those dates.The following summarizes the portfolio's call/put options written for the period ended June 30, 2006:

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 nonperformance 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 June 30, 2006:

The Portfolio 45

NOTES TO FINANCIAL STATEMENTS (Unaudited) (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.

The portfolio accrues for the interim payments on swap contracts on a daily basis, with the net amount recorded within unrealized appreciation (depreciation) on swap contracts in the Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swaps, in addition to realized gain (loss) recorded upon the termination of swap contracts in the Statement of Operations. Fluctuations in the value of swap contracts are recorded as a component of net change in unrealized appreciation (depreciation) on investments.

Credit default swaps involve commitments to pay a fixed interest 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. For those credit default swaps in which the portfolio is receiving a fixed rate, the portfolio is providing credit protection on the underlying instrument.The maximum payouts for these contracts are limited to the notional amount of each swap.The following summarizes credit default swaps entered into by the portfolio at June 30, 2006:

46

                    Unrealized 
Notional    Reference        (Pay) Receive    Appreciation 
Amount ($)    Entity    Counterparty    Fixed Rate (%) Expiration    (Depreciation)($) 
 
145,000    Allstate, 7.2%,    J.P. Morgan             
    12/1/2009    Chase Bank    (.39)    6/20/2016    125 
530,000    Allstate, 7.2%,                 
    12/1/2009    Merrill Lynch    (.35)    6/20/2016    2,058 
690,000    BellSouth,                 
    6%, 10/15/2011    Bear Stearns    (.62)    3/20/2016    (4,376) 
500,000    Structured Index    Morgan Stanley    (.70)    6/20/2013    (4,278) 
500,000    Structured Index    Morgan Stanley    2.25    6/20/2016    (3,075) 
1,717,000    Dow Jones    J.P. Morgan             
    CDX.EM.5    Chase Bank    (1.35)    6/20/2011    3,540 
1,283,000    Dow Jones    J.P. Morgan             
    CDX.EM.5    Chase Bank    (1.35)    6/20/2011    7,022 
294,000    CenturyTel, 7.875%,                 
    8/15/2012    Citigroup    (1.16)    9/20/2015    (719) 
85,000    CenturyTel, 7.875%,                 
    8/15/2012    Morgan Stanley    (1.15)    9/20/2015    (149) 
675,000    Chubb, 6%,                 
    11/15/2011    Bear Stearns    (.36)    6/20/2016    (355) 
425,000    CMLTI 2006-WMC1                 
    M8, 6.71%,                 
    12/25/2035    Morgan Stanley    (1.20)    12/25/2035    (85) 
190,000    GMAC, 6.875%,                 
    8/28/2012    Morgan Stanley    2.00    9/20/2006    402 
400,000    JPMAC 2005-FRE1,                 
    CL.M8, 6.62%,                 
    10/25/2035    Morgan Stanley    (1.17)    10/25/2035    355 
1,225,000    JPMCC 2006-CB15,                 
    CL.AJ, 5.89%,                 
    6/12/43    Merrill Lynch    (.13)    6/20/2016    (47) 
231,000    Koninklijke                 
    KPN N.V.,    Lehman             
    8%, 10/1/2010    Brothers    (.80)    12/20/2010    (1,643) 
120,000    Koninklijke                 
    KPN N.V.,    Morgan             
    8%, 10/1/2010    Stanley    (.77)    12/20/2010    (712) 
425,000    MABS Trust,                 
    2005-WMC1, CL. M8    J.P. Morgan             
    3/25/2035    Chase Bank    (1.18)    4/25/2009    238 
200,000    VF, 8.5%,                 
    10/1/2010    Morgan Stanley    (.72)    6/20/2016    (2,258) 
570,000    VF, 8.5%,                 
    10/1/2010    Morgan Stanley    (.46)    6/20/2016    (3,978) 
120,000    VF, 8.5%,                 
    10/1/2010    Morgan Stanley    (.45)    6/20/2011    (785) 
525,000    Dow Jones                 
    CDX.NA.IG.4    Citigroup    (.71)    6/20/2010    (11,149) 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

                Unrealized 
Notional    Reference        (Pay) Receive    Appreciation 
Amount ($)    Entity    Counterparty    Fixed Rate (%) Expiration    (Depreciation)($) 
 
685,000    Dow Jones             
    CDX.NA.IG.4    Citigroup    (.69) 6/20/2010    (14,051) 
602,600    Dow Jones    Lehman         
    CDX.NA.IG.4    Brothers    (.35) 6/20/2010    (5,048) 
379,400    Dow Jones             
    CDX.NA.IG.4    Merrill Lynch    (.31) 6/20/2010    (2,560) 
Total                (41,528) 

The portfolio may enter into interest rate swaps which involve the exchange of commitments to pay and receive interest based on a notional principal amount. The following summarizes open interest rate swaps entered into by the portfolio at June 30, 2006:

                    Unrealized 
Notional    Reference        (Pay) Receive        Appreciation 
Amount    Entity/Currency    Counterparty    Fixed Rate (%) Expiration    (Depreciation)($) 
 
705,000,000    JPY-6 Month                 
    LIBOR BBA    UBS Warburg    .88    5/11/2008    6,682 
4,169,000    USD-3 Month                 
    LIBOR BBA    Merrill Lynch    5.43    5/13/2015    (15,103) 
Total                    (8,421) 

Total return swaps involve commitments to pay interest in exchange for a market-linked return based on a notional amount.To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the portfolio will receive a payment from or make a payment to the counter-party, respectively. The following summarizes total return swaps entered into by the portfolio at June 30, 2006:

Notional    Reference        (Pay) Receive    Unrealized 
Amount ($)    Entity    Counterparty    Fixed Rate (%) Expiration    Depreciation($) 
 
1,333,000    Emerging                 
    Markets Bond                 
    Index Plus    J.P. Morgan             
    @370.4091    Chase Bank    (4.55)    11/14/2006    (19,420) 
1,792,000    Emerging                 
    Markets Bond                 
    Index Plus    J.P. Morgan             
    @369.025    Chase Bank    (4.55)    11/14/2006    (19,233) 
Total                    (38,653) 

48

Risks may arise upon entering into these agreements from the potential inability of the counterparties 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 June 30, 2006, accumulated net unrealized depreciation on investments was $1,059,454, consisting of $343,851 gross unrealized appreciation and $1,403,305 gross unrealized depreciation.

At June 30, 2006, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

The Portfolio 49

For More Information

Telephone 1-800-554-4611 or 516-338-3300

  Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
Attn: Investments Division

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0165SA0606

  Dreyfus
Investment Portfolios,
Core Value Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
11    Statement of Assets and Liabilities 
12    Statement of Operations 
13    Statement of Changes in Net Assets 
15    Financial Highlights 
17    Notes to Financial Statements 
23    Information About the Review 
and Approval of the Portfolio's
Investment Advisory Agreement
    FOR MORE INFORMATION 
    Back Cover 

Dreyfus Investment Portfolios,
Core Value Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, Core Value Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

Stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected. In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. economy moves into a more mature phase with milder rates of growth. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a recession currently appears unlikely, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies. As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio manager.

Thank you for your continued confidence and support.

Sincerely,

  Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

Brian Ferguson, Portfolio Manager
Large Cap Value Team

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

For the six-month period ended June 30, 2006, Dreyfus Investment Portfolios, Core Value Portfolio produced total returns of 5.14% for its Initial Shares and 5.09% for its Service Shares.1 In comparison, the portfolio's benchmark, the S&P 500/BARRA Value Index, produced a total return of 5.48% for the same period.2

Strong corporate earnings and continued growth in the U.S. economy lifted the equities market over the first four months of 2006, but investor anxiety over high energy prices and rising interest rates subsequently caused stock prices to pull back, erasing many of the market's earlier gains. The portfolio's returns were slightly lower than the S&P 500/BARRA Value Index,primarily due to relatively strong performances in the energy, consumer discretionary and information technology sectors.

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?

Earlier in the reporting period, the U.S. stock market continued to climb on the strength of strong corporate earnings and signs of sustainable growth in the U.S. economy. Investors apparently maintained an optimistic outlook even as rising interest rates remained a concern, but mixed signals from economic data and uncertainty whether the Federal Reserve Board (the "Fed") was at or near the end of its long

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

series of interest rate hikes later clouded investors' outlooks. In fact, the Fed continued to raise short-term interest rates at each meeting of its Federal Open Market Committee, driving the overnight federal funds rate to 5.25% by the end of June. In addition, energy prices encountered renewed volatility, with crude oil topping $75 a barrel, sparking inflation fears and concerns regarding the potentially adverse impact of higher fuel costs on consumer spending.As a result, investor sentiment deteriorated in May and June, and the stock market lost most of the ground it had gained earlier in the reporting period.

However, the upward trend in energy prices helped support the portfolio's performance in the energy sector. The portfolio's relatively heavy exposure to energy stocks contributed positively to overall returns. In addition, the portfolio's performance relative to the benchmark benefited from our emphasis on refineries and oil field services companies, such as Marathon Oil and Schlumberger.The information technology sector also contributed substantially to the portfolio's relative performance, primarily because the portfolio did not have significant positions in some of the sector's weaker companies,including information storage specialist EMC, which declined as a result of slow sales growth, and telecommunications equipment maker Motorola, which faced rising competitive pressures.

The portfolio's relative performance was further bolstered by the success of our stock selection strategy in the consumer discretionary sector. Unlike the benchmark, the portfolio did not own any homebuilding stocks, which were weak due to housing market concerns. In addition, the portfolio avoided investment in cruise line operator Carnival until the effects of 2005's hurricanes and concerns regarding high fuel prices were more appropriately reflected into earnings estimates. Johnson Controls, a manufacturer of building control systems and automotive consoles, also was a strong performer, lifted by investors' response to its acquisition of York, a maker of air conditioners and heating units. Unlike the benchmark, the portfolio did not own shares of media giant Viacom, which struggled with slow growth in advertising sales in the media sector.

The portfolio's performance, however, was tempered by some disappointments. While the materials sector performed well overall, our relatively limited emphasis on metal and mining companies held back relative performance. In the consumer staples sector, the portfolio's relative performance was undermined by its lack of exposure to food commodities processor Archer Daniels Midland, which saw its shares advance significantly due to increased demand for corn-based ethanol as an energy source.

4

What is the portfolio's current strategy?

Our bottom-up stock selection process has continued to guide our investment decisions, as we believe it to be an effective method in identifying attractively valued stocks under a variety of market conditions.We have continued to find attractive values in relatively defensive consumer staples stocks, and we have increased our emphasis in the sector over more economically sensitive stocks.In the industrials area,we increasingly have favored industrial stocks that historically have fared well late in the economic cycle, such as General Electric. While in the past we have found attractive opportunities in the energy area, we are reducing our emphasis on the sector, as many stocks have become more richly valued.

July 17, 2006

The portfolio is only available as a funding vehicle under variable 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 fund 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 certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in
effect through December 31, 2006, at which time it may be extended, terminated or modified.
Had these expenses not been absorbed, the portfolio's returns would have been lower.
Part of the fund's recent performance is attributable to positive returns from its initial public
offering (IPO) investments.There can be no guarantee that IPOs will have or continue to
have a positive effect on the fund's performance. Currently, the fund is relatively small in
asset size. IPOs tend to have a reduced effect on performance as a fund's asset base grows.
2 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 5

  UNDERSTANDING YOUR
PORTFOLIO'S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, Core Value Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended June 30, 2006     
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.27    $ 5.09 
Ending value (after expenses)    $1,051.40    $1,050.90 

  COMPARING YOUR PORTFOLIO'S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.21    $ 5.01 
Ending value (after expenses)    $1,020.63    $1,019.84 

† Expenses are equal to the portfolio's annualized expense ratio of .84% for Initial shares and 1.00% for Service shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS
June 30, 2006 (Unaudited)
Common Stocks—98.7%    Shares    Value ($) 
Banking—9.3%         
Bank of America    55,110    2,650,791 
Bank of New York    10,100    325,220 
PNC Financial Services Group    5,400    378,918 
SunTrust Banks    4,600    350,796 
US Bancorp    18,400    568,192 
Wachovia    24,100    1,303,328 
Wells Fargo & Co.    12,700    851,916 
        6,429,161 
Consumer Discretionary—10.0%         
Carnival    8,200    342,268 
Clear Channel Communications    27,000    835,650 
Comcast, Cl. A    9,000 a    294,660 
Federated Department Stores    10,200    373,320 
Johnson Controls    7,500    616,650 
Limited Brands    14,600    373,614 
Marriott International, Cl. A    9,800    373,576 
McDonald's    28,600    960,960 
News, Cl. A    35,400    678,972 
Omnicom Group    8,600    766,174 
Time Warner    33,800    584,740 
TJX Cos.    15,000    342,900 
Walt Disney    11,100    333,000 
        6,876,484 
Consumer Staples—6.7%         
Altria Group    24,300    1,784,349 
Cadbury Schweppes, ADR    16,200    628,884 
Colgate-Palmolive    12,300    736,770 
CVS    11,400    349,980 
Dean Foods    13,200 a    490,908 
Procter & Gamble    10,900    606,040 
        4,596,931 
Energy—13.2%         
Anadarko Petroleum    6,800    324,292 
Apache    4,000    273,000 
Chevron    23,700    1,470,822 
ConocoPhillips    26,700    1,749,651 
Devon Energy    5,700    344,337 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Energy (continued)         
Exxon Mobil    48,904    3,000,260 
Halliburton    4,800    356,208 
Marathon Oil    14,100    1,174,530 
Valero Energy    6,200    412,424 
        9,105,524 
Financial Services—23.7%         
ACE    6,900    349,071 
American International Group    16,096    950,469 
AON    19,300    672,026 
Capital One Financial    11,900    1,016,855 
Chubb    13,800    688,620 
Citigroup    51,900    2,503,656 
Countrywide Financial    11,100    422,688 
Equity Residential    11,300    505,449 
Freddie Mac    12,200    695,522 
Genworth Financial, Cl. A    27,700    965,068 
Goldman Sachs Group    3,600    541,548 
JPMorgan Chase & Co.    53,200    2,234,400 
Lincoln National    6,000    338,640 
Merrill Lynch & Co.    18,000    1,252,080 
MetLife    7,300    373,833 
Morgan Stanley    11,500    726,915 
PMI Group    14,100    628,578 
Prudential Financial    7,400    574,980 
St. Paul Travelers Cos.    7,800    347,724 
Washington Mutual    11,900    542,402 
        16,330,524 
Health Care—7.5%         
Abbott Laboratories    19,600    854,756 
Amgen    5,100 a    332,673 
Boston Scientific    15,500 a    261,020 
Pfizer    73,500    1,725,045 
Thermo Electron    9,600 a    347,904 
WellPoint    10,000 a    727,700 
Wyeth    20,300    901,523 
        5,150,621 

8

Common Stocks (continued)    Shares    Value ($) 
Industrial—8.3%         
3M    4,500    363,465 
Boeing    4,100    335,831 
Cooper Industries, Cl. A    2,400    223,008 
Eaton    4,900    369,460 
Emerson Electric    4,000    335,240 
General Electric    41,100    1,354,656 
Honeywell International    8,800    354,640 
Lockheed Martin    5,100    365,874 
Tyco International    25,300    695,750 
Union Pacific    10,600    985,376 
United Technologies    5,300    336,126 
        5,719,426 
Information Technology—7.7%         
Accenture, Cl. A    32,500    920,400 
Automatic Data Processing    16,000    725,600 
Cisco Systems    35,100 a    685,503 
Fiserv    3,900 a    176,904 
Hewlett-Packard    37,700    1,194,336 
International Business Machines    8,900    683,698 
Microsoft    24,300    566,190 
NCR    8,800 a    322,432 
        5,275,063 
Materials—2.0%         
Alcoa    11,800    381,848 
Dow Chemical    8,200    320,046 
EI Du Pont de Nemours & Co.    8,000    332,800 
Rohm & Haas    7,500    375,900 
        1,410,594 
Telecommunications—6.2%         
Alltel    5,200    331,916 
AT & T    73,000    2,035,970 
BellSouth    16,500    597,300 
Sprint Nextel    14,200    283,858 
Verizon Communications    20,300    679,847 
Vodafone Group, ADR    15,100    321,630 
        4,250,521 

The Portfolio 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Utilities—4.1%         
Constellation Energy Group    8,700    474,324 
Edison International    7,700    300,300 
Entergy    4,100    290,075 
Exelon    12,400    704,692 
FPL Group    7,100    293,798 
NRG Energy    8,600 a    414,348 
PG & E    8,700    341,736 
            2,819,273 
Total Common Stocks         
(cost $57,112,071)        67,964,122 
 
Other Investment—.8%         
Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $576,000)    576,000 b    576,000 
 
Total Investments (cost $57,688,071)    99.5%    68,540,122 
Cash and Receivables (Net)    .5%    334,663 
Net Assets    100.0%    68,874,785 
 
ADR—American Depository Receipts         
a    Non-income producing security.         
b    Investment in affiliated money market mutual fund.     

Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Financial Services    23.7    Consumer Staples    6.7 
Energy    13.2    Telecommunications    6.2 
Consumer Discretionary    10.0    Utilities    4.1 
Banking    9.3    Materials    2.0 
Industrial    8.3    Money Market Investment    .8 
Information Technology    7.7         
Health Care    7.5        99.5 

† Based on net assets.
See notes to financial statements.

10

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)
    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments:     
Unaffiliated issuers    57,112,071    67,964,122 
Affiliated issuers    576,000    576,000 
Cash        2,514 
Receivable for investment securities sold    367,837 
Dividends and interest receivable        94,569 
Receivable for shares of Beneficial Interest subscribed    46,004 
Prepaid expenses        9,113 
        69,060,159 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    53,706 
Payable for investment securities purchased    69,671 
Payable for shares of Beneficial Interest redeemed    29,798 
Interest payable—Note 2        30 
Accrued expenses        32,169 
        185,374 
Net Assets ($)        68,874,785 
Composition of Net Assets ($):         
Paid-in capital        54,859,393 
Accumulated undistributed investment income—net    462,071 
Accumulated net realized gain (loss) on investments    2,701,270 
Accumulated net unrealized appreciation     
(depreciation) on investments        10,852,051 
Net Assets ($)        68,874,785 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    31,169,669    37,705,116 
Shares Outstanding    1,844,252    2,226,339 
Net Asset Value Per Share ($)    16.90    16.94 

See notes to financial statements.

The Portfolio 11

  STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends:     
Unaffiliated issuers    779,550 
Affiliated issuers    7,842 
Interest    4,635 
Income from securities lending    59 
Total Income    792,086 
Expenses:     
Investment advisory fee—Note 3(a)    265,423 
Distribution fees—Note 3(b)    48,636 
Auditing fees    20,762 
Custodian fees—Note 3(b)    6,879 
Prospectus and shareholders' reports    4,603 
Legal fees    1,799 
Trustees' fees and expenses—Note 3(c)    1,085 
Shareholder servicing costs—Note 3(b)    286 
Interest expense—Note 2    108 
Registration fees    84 
Miscellaneous    2,231 
Total Expenses    351,896 
Less—waiver of fees due to     
undertaking—Note 3(a)    (22,798) 
Less—reduction in custody fees     
due to earnings credits—Note 1(b)    (763) 
Net Expenses    328,335 
Investment Income—Net    463,751 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    3,156,821 
Net unrealized appreciation (depreciation) on investments    (45,769) 
Net Realized and Unrealized Gain (Loss) on Investments    3,111,052 
Net Increase in Net Assets Resulting from Operations    3,574,803 

See notes to financial statements.

12

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Operations ($):         
Investment income—net    463,751    894,916 
Net realized gain (loss) on investments    3,156,821    5,393,343 
Net unrealized appreciation         
(depreciation) on investments    (45,769)    (2,534,124) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    3,574,803    3,754,135 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (428,851)    (147,061) 
Service shares    (462,935)    (117,909) 
Total Dividends    (891,786)    (264,970) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    1,329,965    2,006,235 
Service shares    682,145    1,399,677 
Dividends reinvested:         
Initial shares    428,851    147,061 
Service shares    462,935    117,909 
Cost of shares redeemed:         
Initial shares    (3,946,960)    (7,405,008) 
Service shares    (4,600,549)    (6,825,256) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (5,643,613)    (10,559,382) 
Total Increase (Decrease) in Net Assets    (2,960,596)    (7,070,217) 
Net Assets ($):         
Beginning of Period    71,835,381    78,905,598 
End of Period    68,874,785    71,835,381 
Undistributed investment income—net    462,071    890,106 

The Portfolio 13

STATEMENT OF CHANGES IN NET ASSETS (continued)

See notes to financial statements.

14

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.

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

The Portfolio 15

FINANCIAL HIGHLIGHTS (continued)

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

16

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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" or "Dreyfus") serves as the portfolio's investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial").

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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales 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. Investments in registered investment companies are valued at their net asset value. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

18

(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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the portfolio may lend securities to qualified institutions. It is the portfolio's policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as "affiliated" in the Act.

(d) 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

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 U.S. generally accepted accounting principles.

(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.

The portfolio has an unused capital loss carryover of $254,596 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, the carryover expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2005 were as follows: ordinary income $264,970.The tax character of current year distributions will be determined at the end of the current fiscal year.

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 borrowing.

The average daily amount of borrowings outstanding under the line of credit during the period ended June 30, 2006, was approximately $4,000, with a related weighted average annualized interest rate of 5.46% .

20

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 the value of the portfolio's average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2006 to December 31, 2006, 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 June 30, 2006, the Manager waived receipt of fees of $22,798, 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 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 June 30, 2006, Service shares were charged $48,636 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 June 30, 2006, the portfolio was charged $44 pursuant to the transfer agency agreement.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The portfolio compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement for providing custodial services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $6,879 pursuant to the custody agreement.

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $42,145, Rule 12b-1 distribution plan fees $7,671, custodian fees $4,144, chief compliance officer fees $1,926 and transfer agency per account fees $20, which are offset against an expense reimbursement currently in effect in the amount of $2,200.

(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 SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended June 30, 2006, amounted to $17,094,241 and $23,535,365, respectively.

At June 30, 2006, accumulated net unrealized appreciation on investments was $10,852,051, consisting of $12,124,161 gross unrealized appreciation and $1,272,110 gross unrealized depreciation.

At June 30,2006,the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

22

INFORMATION ABOUT THE REVIEW
AND APPROVAL OF THE PORTFOLIO'S
INVESTMENT ADVISORY AGREEMENT (Unaudited)

At a meeting of the Board of Trustees of Dreyfus Investment Portfolios (the "Company") held on January 26, 2006, the Board considered the re-approval, through its annual renewal date of August 31, 2006, of the portfolio's Investment Advisory Agreement, pursuant to which The Dreyfus Corporation (the "Manager") provides the portfolio with investment advisory and administrative services.The Board members, none of whom are "interested persons" (as defined in the Investment Company Act of 1940, as amended) of the Company, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent and Quality of Services Provided to the Portfolio. The Board members considered information previously provided to them in a presentation from representatives of the Manager at the July 12-13, 2005 Board meeting (the "July Meeting") regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and representatives of the Manager confirmed that there had been no material changes in this information.The Board also discussed the nature, extent and quality of the services provided to the portfolio pursuant to the portfolio's Investment Advisory Agreement. The Manager's representatives reviewed the portfolio's distribution of accounts and the Board members also referenced information provided and discussions at the July Meeting regarding the relationships the Manager has with various intermediaries and the different needs of each.The Board members noted that the portfolio's shares are offered only to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. The Manager's representatives noted the diversity of distribution among the funds in the Dreyfus fund complex, and the Manager's corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including that of the portfolio. The Board also reviewed the number of shareholder accounts in the portfolio, as well as the portfolio's asset size.

The Portfolio 23

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO'S
INVESTMENT ADVISORY AGREEMENT (Unaudited) ( c o n t i n u e d )

The Board members also considered the Manager's research and portfolio management capabilities and that the Manager also provides oversight of day-to-day portfolio operations, including portfolio accounting and administration and assistance in meeting legal and regulatory requirements. The Board members also considered the Manager's extensive administrative, accounting and compliance infrastructure.

Comparative Analysis of the Portfolio's Performance and Investment Advisory Fee and Expense Ratios. The Board members reviewed the portfolio's performance, advisory fee and expense ratios and placed significant emphasis on comparisons to two groups of comparable funds and to Lipper averages (with respect to performance only).The Manager's representatives advised the Board members that the first comparison group of funds includes funds in the applicable Lipper category that are not subject to a Rule 12b-1 plan (collectively, "Comparison Group I") and that the second comparison group of funds includes funds in the applicable Lipper category that are subject to a Rule 12b-1 plan (collectively, "Comparison Group II"). Each group of comparable funds was previously approved by the Board for this purpose, and was prepared using a Board-approved selection methodology that was based, in part, on selecting non-affiliated funds reported in the same Lipper category as the portfolio. The Board members did not rely on comparisons to Lipper averages with respect to the portfolio's expense ratios because the average expense ratio of the applicable Lipper category for variable insurance products reflects not only expenses of mutual funds offered to fund variable annuity contracts and variable life insurance policies but also expenses of the separate accounts in which this type of mutual fund is offered.

The Board members discussed the results of the comparisons for various periods ended November 30, 2005, and it was noted that the total return performance of the portfolio's Initial shares (which are not subject to a Rule 12b-1 plan) was below the averages of Comparison Group I for the one-, three- and five-year periods, and that the total return performance of the portfolio's Service shares (which are subject to a Rule 12b-1 plan) was below the averages of Comparison Group II for the one- and three-year periods and was above the average of Comparison Group II for the five-year period. It was noted that the five-year total return performance of the portfolio's Service shares reflects the performance of the portfolio's Initial shares prior to December 31, 2000 (at which time the portfolio began offering Service shares) and reflects the performance of the portfolio's Service shares thereafter. Representatives of the Manager noted that the portfolio's performance continued to improve as of December 31, 2005. The Board members also noted that the portfolio's performance was improving. The Board noted that the total return performance of the portfolio's Initial shares and Service shares was above the Comparison Group I and Comparison Group II Lipper category averages, respectively, for the one-year period and below these averages for the respective three- and five-year periods.

The Board members also discussed the portfolio's expense ratios, noting that the expense ratio of the portfolio's Initial shares was lower than the average expense ratio of Comparison Group I, and that the current fee waiver and expense reimbursement arrangement undertaken by the Manager had caused the expense ratio of the portfolio's Service shares to be lower than the average expense ratio of Comparison Group II.The Board reviewed the range of management fees in each comparison group, noting that the portfolio's advisory fee ranked in the middle, with several funds having the same or higher management fees. The Board members also considered the Manager's contractual undertaking for the portfolio in effect through December 31, 2006.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates with similar investment objectives, policies and strategies as the portfolio (the "Similar Funds"), and by other accounts managed or sub-advised by the Manager or its affiliates with similar investment objectives, policies and strategies as the portfolio (collectively with the Similar Funds, the "Similar Accounts"). The Manager's representatives explained the nature of the Similar Accounts and the differences, from the Manager's perspective, in management of

The Portfolio 25

  INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO'S
INVESTMENT ADVISORY AGREEMENT (Unaudited) ( c o n t i n u e d )

the Similar Accounts as compared to managing and providing services to the portfolio.The Manager's representatives also reviewed the costs associated with distribution through intermediaries. The Board analyzed the differences in fees paid to the Manager and discussed the relationship of the advisory fees paid in light of the Manager's performance and the services provided; it was noted that one of the Similar Funds had the same management fee as the portfolio and that the other Similar Fund had a higher management fee than the portfolio that reflected the pricing of a "unitary fee" fund.The Board members considered the relevance of the fee information provided for the Similar Accounts managed by the Manager to evaluate the appropriateness and reasonableness of the portfolio's advisory fees. The Board acknowledged that differences in fees paid by the Similar Accounts seemed to be consistent with the services provided.

Analysis of Profitability and Economies of Scale. The Manager's representatives reviewed the dollar amount of expenses allocated and profit received by the Manager and the method used to determine such expenses and profit.The Board considered information, previously provided and discussed, prepared by an independent consulting firm regarding the Manager's approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex. The Board members also considered that the methodology had been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reasonable.The consulting firm also analyzed where any economies of scale might emerge in connection with the management of the portfolio.The Board members evaluated the analysis in light of the relevant circumstances for the portfolio, and the extent to which economies of scale would be realized as the portfolio grows and whether fee levels reflect these economies of scale for the benefit of portfolio investors. The Board noted that it appeared that the benefits of any economies of scale also would be appropriately shared with shareholders through increased investment in fund management and administration resources. The

26

Board members also considered potential benefits to the Manager from acting as investment adviser to the portfolio, including soft dollar arrangements with respect to trading the portfolio's portfolio.

It was noted that the Board members should consider the Manager's profitability with respect to the portfolio as part of their evaluation of whether the fee under the Investment Advisory Agreement bears a reasonable relationship to the mix of services provided by the Manager, including the nature, extent and quality of such services and that discussions of economies of scale historically have been predicated on increasing assets and that, if a portfolio's assets had been decreasing, the extent to which the Manager may have realized any economies of scale would be less.The Board members also discussed the profitability percentage ranges determined by appropriate court cases to be reasonable given the services rendered to investment companies. It was noted that the profitability percentage for managing the portfolio was not unreasonable given the portfolio's overall performance and generally superior service levels provided.The Board also noted the current fee waiver and expense reimbursement arrangement and its effect on the profitability of the Manager.

At the conclusion of these discussions, each Board member expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to continuation of the portfolio's Investment Advisory Agreement. Based on their discussions and considerations as described above, the Board made the following conclusions and determinations with respect to the portfolio.

  • The Board concluded that the nature, extent and quality of the services provided by the Manager to the portfolio are adequate and appropriate.
  • While the Board was concerned with the portfolio's total return performance, the Board members noted that the portfolio's short term performance is improving.

The Portfolio 27

  INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO'S
INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)
  • The Board concluded that the fee paid to the Manager by the port folio was reasonable in light of the services provided, comparative performance and expense and advisory fee information, including the Manager's undertaking to waive or reimburse certain fees and expenses, costs of the services provided and profits to be realized and benefits derived or to be derived by the Manager from its relation ship with the portfolio.
  • The Board determined that the economies of scale which may accrue to the Manager and its affiliates in connection with the man agement of the portfolio had been adequately considered by the Manager in connection with the advisory fee rate charged to the portfolio, and that, to the extent in the future it were determined that material economies of scale had not been shared with the port folio, the Board would seek to have those economies of scale shared with the portfolio.

The Board members considered these conclusions and determinations, along with the information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the portfolio's Investment Advisory Agreement was in the best interests of the portfolio and its shareholders and that the Investment Advisory Agreement would be renewed through its annual renewal date of August 31, 2006.

28

For More Information

Telephone 1-800-554-4611 or 516-338-3300 
Mail    The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 
    Attn: Investments Division 

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0172SA0606

  Dreyfus
Investment Portfolios,
Emerging Leaders
Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Notice of Portfolio Manager Appointments 
6    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
15    Statement of Assets and Liabilities 
16    Statement of Operations 
17    Statement of Changes in Net Assets 
18    Financial Highlights 
20    Notes to Financial Statements 
    FOR MORE INFORMATION 
    Back Cover 

The Portfolio

Dreyfus Investment Portfolios, 
Emerging Leaders Portfolio 

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, Emerging Leaders Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

Stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected. In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. economy moves into a more mature phase with milder rates of growth. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a recession currently appears unlikely, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies.As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio manager.

Thank you for your continued confidence and support.

  Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

Franklin Portfolio Associates Smallcap Team, Portfolio Managers

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

For the six-month period ended June 30, 2006, the portfolio produced total returns of 2.70% for its Initial shares and 2.54% for its Service shares.1 In comparison, the Russell 2000 Index (the "Index"), the portfolio's benchmark, produced a total return of 8.21% for the same period.2

The small-cap market rose on the strength of ongoing U.S. economic growth, which enabled many small companies to announce better-than-expected earnings and revenues.At the same time, however, rising interest rates, intensifying inflationary pressures and volatile investor sentiment led to choppy market conditions. Companies that exceeded earnings expectations and offered positive guidance were rewarded with gains, while those reporting disappointing financial results or weak business conditions were sharply punished, particularly in areas that were out of favor with investors.While the portfolio participated in the market's rise with strong gains in the industrial and basic materials sectors, disappointing returns from several holdings in other sectors caused its performance to lag the benchmark.

What is the portfolio's investment approach?

The portfolio employs an investment process based on a "bottom-up" approach that seeks to identify undervalued securities using a quantitative screening process. This process is driven by a proprietary quantitative model which uses over 40 factors to identify and rank stocks based on:

  • fundamental momentum, meaning measures that reflect the changes in short-term earnings outlook through factors such as revised earn- ings estimates and earnings surprises;
  • relative value, such as current and forecasted price-to-earnings ratios, price-to-book ratios, yields and other price-sensitive data for a stock compared to its past, its peers and the models' overall stock universe;
  • future value, such as discounted present value measures;
  • long-term growth, based on measures that reflect the changes in esti- mated long-term earnings growth over multiple horizons; and
  • additional factors, such as technical factors, trading by company insid- ers or share issuance/buy-back data.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

Next, through a bottom-up approach, the portfolio managers focus on stock selection as opposed to making proactive decisions about industry or sector exposure. Over time, the portfolio managers attempt to construct a portfolio that has exposure to industries and market capitalizations that is generally similar to the portfolio's benchmark. Finally, within each sector, the portfolio managers seek to overweight the most attractive stocks and underweight or not hold the stocks that have been ranked least attractive.

What other factors influenced the portfolio's performance?

Uncertain economic trends and shifting investor sentiment created volatile conditions for equities throughout the reporting period. In the small-cap arena, the Index climbed by more than 10% during the first four months of 2006, and then dipped close to its January 1 level in early June before surging ahead during the final week of the reporting period.

In accordance with our disciplined, sector-neutral investment approach, the portfolio closely approximated the benchmark's sector and industry weightings. Differences in returns between the portfolio and the Index were largely determined by our security selection strategy.

The portfolio achieved its greatest gains compared to the benchmark among companies posting relatively strong financial results in the robust areas of industrials and basic materials. In the industrials sector, top performers included industrial parts manufacturer Gardner Denver and heavy machinery producers The Manitowoc Company and Bucyrus International.Among basic materials companies, returns benefited from investments in specialty chemical maker H.B. Fuller; steel manufacturers NS Group; and several precious metal mining concerns, such as Minefinders Corp., Ltd.

On the negative side, some of the portfolio's consumer discretionary and technology holdings announced earnings disappointments or issued negative guidance regarding future business prospects. Because these sectors were out of favor among investors, the market's reaction proved to be relatively harsh, driving the stocks sharply lower. In the consumer discretionary sector, notable disappointments included several specialty retailers, such as Talbots, Pacific Sunwear of California and Conn's. Among technology holdings, semiconductor makers Power Integrations and PortalPlayer; software developers Intergraph and Wind River Systems; and electronics manufacturer Multi-Fineline

4

Electronix all contributed substantially to the portfolio's relatively weak returns. Declines in the technology sector were cushioned to a degree by the portfolio's investment in Atheros Communications, a semiconductor maker that bucked the market's negative trend.

What is the portfolio's current strategy?

As of the end of the reporting period, we have continued to place roughly equal emphasis on growth and value factors in attempting to identify reasonably priced stocks with above-average potential for appreciation. We have remained sharply focused on adding value through our bottom-up, quantitatively based investment process. By identifying the market's most promising small-cap investment opportunities within each sector and industry we believe we have positioned the portfolio for long-term success.

July 17, 2006

    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. 
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 certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in 
    effect through December 31, 2006, at which time it may be extended, terminated or modified. 
    Had these expenses not been absorbed, the portfolio's returns would have been lower. 
    A significant portion of the portfolio's recent performance is attributable to positive returns 
    from its initial public offering (IPO) investments.There can be no guarantee that IPOs 
    will have or continue to have a positive effect on the portfolio's performance. Currently, the 
    portfolio is relatively small in asset size. IPOs tend to have a reduced effect on performance 
    as a fund's asset base grows. 
2    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. 
    Franklin Portfolio Associates is an independently managed, wholly owned subsidiary of Mellon 
    Financial Corporation. Franklin Portfolio Associates has no affiliation to the Franklin Templeton 
    Group of Funds or Franklin Resources, Inc.The portfolio's managers are dual employees of 
    Franklin Portfolio Associates and Dreyfus. 

The Portfolio 5

UNDERSTANDING YOUR 
PORTFOLIO'S EXPENSES (Unaudited) 

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, Emerging Leaders Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended June 30, 2006     
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.23    $ 6.48 
Ending value (after expenses)    $1,027.00    $1,025.40 

COMPARING YOUR PORTFOLIO'S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.21    $ 6.46 
Ending value (after expenses)    $1,019.64    $1,018.40 
 
† Expenses are equal to the portfolio's annualized expense ratio of 1.04% for Initial shares and 1.29% for Service shares, 
multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). 

6

STATEMENT OF INVESTMENTS 
June 30, 2006 (Unaudited) 

Common Stocks—99.3%    Shares    Value ($) 
Commercial & Professional Services—6.9%     
Arbitron    7,000 a    268,310 
CBIZ    22,500 a,b    166,725 
Concur Technologies    4,800 b    74,256 
Corrections Corp. of America    4,000 a,b    211,760 
CRA International    1,300 b    58,682 
Ennis    4,600 a    90,528 
FTI Consulting    4,400 b    117,788 
Gentiva Health Services    7,900 b    126,637 
IKON Office Solutions    27,900    351,540 
Kforce    9,800 b    151,802 
Performance Food Group    4,200 b    127,596 
Portfolio Recovery Associates    6,300 a,b    287,910 
Spherion    29,400 b    268,128 
Viad    2,200    68,860 
        2,370,522 
Communications—.8%         
Centennial Communications    10,700    55,640 
CT Communications    3,500    80,045 
RCN    5,100 b    127,143 
        262,828 
Consumer Durables—4.6%         
Avatar Holdings    1,900 a,b    108,243 
Barnes Group    11,800 a    235,410 
Charles & Colvard    6,750 a    71,078 
Ethan Allen Interiors    6,800 a    248,540 
Fossil    6,400 b    115,264 
Jakks Pacific    7,000 a,b    140,630 
Thor Industries    7,400    358,530 
WCI Communities    13,900 a,b    279,946 
        1,557,641 
Consumer Non-Durables—2.4%         
K-Swiss, Cl. A    3,000    80,100 
Mannatech    7,100 a    89,531 
Steven Madden    5,400    159,948 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares        Value ($) 
Consumer Non-Durables (continued)             
Tootsie Roll Industries    6,400        186,432 
USANA Health Sciences    3,700    a,b    140,230 
Vector Group    10,100    a    164,125 
            820,366 
Consumer Services—3.8%             
Alderwoods Group    2,600    b    50,596 
Bob Evans Farms    2,500        75,025 
Central Parking    5,200    a    83,200 
Domino's Pizza    4,600        113,804 
Great Wolf Resorts    4,600    b    55,246 
Journal Register    13,700        122,752 
Lone Star Steakhouse & Saloon    5,400        141,642 
Media General, Cl. A    4,200        175,938 
Sinclair Broadcast Group, Cl. A    10,200        87,312 
Sotheby's, Cl. A    5,400    b    141,750 
Spanish Broadcasting System, Cl. A    19,800    b    101,178 
World Wrestling Entertainment    8,500        143,565 
            1,292,008 
Electronic Technology—10.9%             
American Science & Engineering    1,900    b    110,048 
Asyst Technologies    19,500    b    146,835 
Atheros Communications    8,300    a,b    157,368 
Ceradyne    7,600    b    376,124 
CommScope    12,400    a,b    389,608 
Comtech Telecommunications    4,100    b    120,007 
Digi International    5,500    a,b    68,915 
EndWave    4,000    a,b    49,720 
Imation    4,000        164,200 
Komag    9,300    a,b    429,474 
Micrel    6,400    b    64,064 
Multi-Fineline Electronix    9,100    a,b    302,029 
Newport    5,600    b    90,272 
Orbital Sciences    19,500    a,b    314,730 
Plexus    3,900    b    133,419 

8

Common Stocks (continued)    Shares        Value ($) 
Electronic Technology (continued)             
Power Integrations    18,300    b    319,884 
Semtech    4,700    b    67,915 
Spectralink    12,700        112,014 
Trident Microsystems    16,700    b    316,966 
            3,733,592 
Energy Minerals—2.6%             
Comstock Resources    7,000    b    209,020 
Harvest Natural Resources    7,600    b    102,904 
Unit    6,200    b    352,718 
W & T Offshore    6,000    a    233,340 
            897,982 
Finance—22.4%             
Accredited Home Lenders Holding    1,600    b    76,496 
American Campus Communities    3,200        79,520 
Arbor Realty Trust    7,500        187,875 
Boykin Lodging    9,200    b    100,188 
CentraCore Properties Trust    2,200    a    54,450 
Citizens Banking    7,100    a    173,311 
Colonial Properties Trust    6,700    a    330,980 
Columbia Banking System    4,300    a    160,734 
CompuCredit    4,700    a,b    180,668 
Corus Bankshares    13,400    a    350,812 
Deerfield Triarc Capital    9,400        122,012 
Equity Inns    14,100        233,496 
FelCor Lodging Trust    15,000        326,100 
Financial Federal    2,900        80,649 
First Busey    1,600    a    32,752 
First Community Bancorp/CA    5,000        295,400 
FirstFed Financial    3,100    a,b    178,777 
Fremont General    18,100        335,936 
Getty Realty    4,600        130,824 
HomeBanc/Atlanta, GA    19,200    a    152,448 
Independent Bank/MI    5,425    a    142,678 
Inland Real Estate    16,100        239,568 

The Portfolio 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Finance (continued)         
Knight Capital Group, Cl. A    20,700 b    315,261 
LandAmerica Financial Group    3,800    245,480 
LaSalle Hotel Properties    5,400    250,020 
LTC Properties    6,600    147,510 
MAF Bancorp    6,400    274,176 
MainSource Financial Group    2,700 a    47,061 
Max Re Capital    5,800    126,672 
Mercantile Bank    2,325 a    92,651 
National Financial Partners    7,000    310,170 
National Health Investors    3,200    86,048 
Omega Healthcare Investors    5,700    75,354 
Pacific Capital Bancorp    4,800    149,376 
Partners Trust Financial Group    14,930 a    170,351 
Prosperity Bancshares    5,200 a    171,028 
Provident New York Bancorp    12,200    161,284 
R-G Financial, Cl. B    14,900    127,991 
Renasant    1,600 a    64,560 
Rent-Way    7,200 a,b    53,136 
Republic Bancorp/MI    17,100    211,869 
Senior Housing Properties Trust    7,200    128,952 
Spirit Finance    7,700    86,702 
Texas Regional Bancshares, Cl. A    8,270    313,598 
Universal Health Realty Income Trust    2,300 a    72,105 
        7,647,029 
Health Technology—9.6%         
Alpharma, Cl. A    7,800    187,512 
Analogic    1,700    79,237 
Andrx    4,600 b    106,674 
Applera—Celera Genomics Group    8,800 b    113,960 
Aspect Medical Systems    5,400 a,b    94,176 
BioMarin Pharmaceutical    20,000 b    287,400 
Exelixis    19,400 a,b    194,970 
Geron    26,300 a,b    181,470 
Hologic    2,000 b    98,720 

10
Common Stocks (continued)    Shares    Value ($) 
Health Technology (continued)         
Introgen Therapeutics    10,500 a,b    44,625 
Intuitive Surgical    2,400 b    283,128 
Lifecell    5,200 a,b    160,784 
Medarex    26,300 b    252,743 
Neurometrix    4,800 b    146,208 
OraSure Technologies    32,600 a,b    310,352 
Pain Therapeutics    11,400 a,b    95,190 
Sciele Pharma    11,700 a,b    271,323 
United Therapeutics    4,300 b    248,411 
Zoll Medical    3,700 b    121,212 
        3,278,095 
Industrial Services—1.3%         
Todco, Cl. A    8,300    339,055 
Trico Marine Services    3,000 b    102,000 
        441,055 
Non-Energy Minerals—3.6%         
Metal Management    5,900    180,658 
NS Group    7,000 b    385,560 
Quanex    4,200    180,894 
Steel Dynamics    7,100    466,754 
        1,213,866 
Process Industries—2.6%         
Greif, Cl. A    1,200 a    89,952 
HB Fuller    3,600    156,852 
Headwaters    11,600 a,b    296,496 
Myers Industries    9,100    156,429 
Pioneer Cos.    6,700 b    182,776 
        882,505 
Producer Manufacturing—7.7%         
American Woodmark    4,100    143,664 
Bucyrus International, Cl. A    5,000    252,500 
Encore Wire    8,000 a,b    287,520 
EnPro Industries    2,300 b    77,280 
Freightcar America    1,900    105,469 

The Portfolio 11

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Producer Manufacturing (continued)         
Gardner Denver    6,400 b    246,400 
Herman Miller    7,800    201,006 
Littelfuse    4,100 b    140,958 
Manitowoc    5,600    249,200 
Minefinders    12,100 b    98,857 
Nordson    5,000    245,900 
Simpson Manufacturing    5,800 a    209,090 
Wabtec    9,600    359,040 
        2,616,884 
Retail Trade—4.4%         
Aeropostale    3,100 b    89,559 
Asbury Automotive Group    5,000 b    104,700 
Conn's    8,300 a,b    220,365 
Dress Barn    6,500 b    164,775 
Great Atlantic & Pacific Tea    10,900    247,648 
Hibbett Sporting Goods    4,050 b    96,795 
Pacific Sunwear of California    14,200 a,b    254,606 
Sonic Automotive    11,000    243,980 
Stein Mart    4,500    66,600 
        1,489,028 
Technology Services—11.4%         
Albany Molecular Research    13,900 b    148,452 
American Retirement    3,600 b    117,972 
CNET Networks    26,100 a,b    208,278 
Digital Insight    4,000 b    137,160 
Intergraph    5,300 b    166,897 
Internet Capital Group    28,500 b    256,500 
Lawson Software    14,400 b    96,480 
Magellan Health Services    8,600 b    389,666 
Mantech International, Cl. A    5,300 b    163,558 

12
Common Stocks (continued)    Shares    Value ($) 
Technology Services (continued)         
MapInfo    16,400 b    214,020 
Per-Se Technologies    4,700 b    118,346 
Perot Systems, Cl. A    18,500 a,b    267,880 
Secure Computing    15,400 b    132,440 
SPSS    2,400 b    77,136 
SYKES Enterprises    21,700 b    350,672 
Trizetto Group    24,500 b    362,355 
United Online    22,000    264,000 
Vignette    16,400 b    239,112 
Wind River Systems    18,200 b    161,980 
        3,872,904 
Transportation—2.8%         
EGL    6,500 b    326,300 
Mesa Air Group    27,100 b    266,935 
SCS Transportation    3,600 b    99,108 
Skywest    11,200    277,760 
        970,103 
Utilities—1.5%         
Avista    3,900    89,037 
El Paso Electric    13,500 b    272,160 
Laclede Group    2,100    72,156 
Otter Tail    3,100 a    84,723 
        518,076 
Total Common Stocks         
(cost $32,763,926)        33,864,484 

Other Investment—.6%         
Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $197,000)    197,000 c    197,000 

The Portfolio 13

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Investment of Cash Collateral         
for Securities Loaned—26.1%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Plus Fund         
(cost $8,905,832)    8,905,832 c    8,905,832 
 
Total Investments (cost $41,866,758)    126.0%    42,967,316 
Liabilities, Less Cash and Receivables    (26.0%)    (8,857,883) 
Net Assets    100.0%    34,109,433 
 
a All or a portion of these securities are on loan. At June 30, 2006, the total market value of the portfolio's securities 
on loan is $8,593,657 and the total market value of the collateral held by the portfolio is $8,905,832. 
b Non-income producing security.         
c Investment in affiliated money market mutual fund.     

Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Money Market Investments    26.7    Consumer Durables    4.6 
Finance    22.4    Retail Trade    4.4 
Technology Services    11.4    Consumer Services    3.8 
Electronic Technology    10.9    Non-Energy Minerals    3.6 
Health Technology    9.6    Other    14.0 
Producer Manufacturing    7.7         
Commercial & Professional Services    6.9        126.0 
 
† Based on net assets.             
See notes to financial statements.             

14

STATEMENT OF ASSETS AND LIABILITIES 
June 30, 2006 (Unaudited) 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement         
of Investments (including securities on loan,     
valued at $8,593,657)—Note 1(b):         
Unaffiliated issuers    32,763,926    33,864,484 
Affiliated issuers    9,102,832    9,102,832 
Cash        53,080 
Receivable for shares of Beneficial Interest subscribed    29,343 
Dividends and interest receivable        22,395 
Prepaid expenses        4,517 
        43,076,651 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    34,025 
Liability for securities on loan—Note 1(b)        8,905,832 
Payable for shares of Beneficial Interest redeemed    3,879 
Accrued expenses        23,482 
        8,967,218 
Net Assets ($)        34,109,433 
Composition of Net Assets ($):         
Paid-in capital        29,495,889 
Accumulated investment (loss)—net        (5,410) 
Accumulated net realized gain (loss) on investments    3,518,396 
Accumulated net unrealized appreciation         
(depreciation) on investments        1,100,558 
Net Assets ($)        34,109,433 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    19,838,459    14,270,974 
Shares Outstanding    972,684    710,888 
Net Asset Value Per Share ($)    20.40    20.07 
 
See notes to financial statements.         

The Portfolio 15

STATEMENT OF OPERATIONS 
Six Months Ended June 30, 2006 (Unaudited) 

Investment Income ($):     
Income:     
Cash dividends (net of $256 foreign taxes withheld at source):     
Unaffiliated issuers    175,140 
Affiliated issuers    3,903 
Income from securities lending    18,126 
Total Income    197,169 
Expenses:     
Investment advisory fee—Note 3(a)    162,887 
Distribution fees—Note 3(b)    19,058 
Auditing fees    9,698 
Custodian fees—Note 3(b)    5,874 
Prospectus and shareholders' reports    4,699 
Legal fees    963 
Trustees' fees and expenses—Note 3(c)    771 
Interest expense—Note 2    158 
Miscellaneous    3,783 
Total Expenses    207,891 
Investment (Loss)—Net    (10,722) 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    3,528,136 
Net unrealized appreciation (depreciation) on investments    (2,512,341) 
Net Realized and Unrealized Gain (Loss) on Investments    1,015,795 
Net Increase in Net Assets Resulting from Operations    1,005,073 
 
See notes to financial statements.     

16

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Operations ($):         
Investment (loss)—net    (10,722)    (28,127) 
Net realized gain (loss) on investments    3,528,136    5,238,844 
Net unrealized appreciation         
(depreciation) on investments    (2,512,341)    (3,586,099) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    1,005,073    1,624,618 
Dividends to Shareholders from ($):         
Net realized gain on investments:         
Initial shares    (2,983,883)    (1,097,280) 
Service shares    (2,181,908)    (882,945) 
Total Dividends    (5,165,791)    (1,980,225) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    1,185,271    4,091,471 
Service shares    600,967    1,040,178 
Dividends reinvested:         
Initial shares    2,983,883    1,097,280 
Service shares    2,181,908    882,945 
Cost of shares redeemed:         
Initial shares    (2,594,608)    (6,009,294) 
Service shares    (2,250,326)    (3,050,618) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    2,107,095    (1,948,038) 
Total Increase (Decrease) in Net Assets    (2,053,623)    (2,303,645) 
Net Assets ($):         
Beginning of Period    36,163,056    38,466,701 
End of Period    34,109,433    36,163,056 
Undistributed investment income (loss)—net    (5,410)    5,312 
Capital Share Transactions (Shares):         
Initial Shares         
Shares sold    53,410    185,857 
Shares issued for dividends reinvested    134,773    50,871 
Shares redeemed    (116,922)    (271,360) 
Net Increase (Decrease) in Shares Outstanding    71,261    (34,632) 
Service Shares         
Shares sold    27,671    47,206 
Shares issued for dividends reinvested    100,042    41,356 
Shares redeemed    (100,486)    (143,572) 
Net Increase (Decrease) in Shares Outstanding    27,227    (55,010) 
 
See notes to financial statements.         

The Portfolio 17

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.

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

18

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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" or "Dreyfus") serves as the portfolio's investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial").

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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

20

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities listed on the National Market System, for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale 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. Bid price is used when no asked price is available.Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits, if any, as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the portfolio may lend securities to qualified institutions. It is the portfolio's policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as "affiliated" in the Act.

(d) 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, if any,

22

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 U.S. generally accepted accounting principles.

(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.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2005 were as follows: ordinary income $601,753 and long-term capital gains $1,378,472.The tax character of current year distributions will be determined at the end of the current fiscal year.

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 borrowing.

The average daily amount of borrowings outstanding under the line of credit during the period ended June 30, 2006, was $6,100, with a related weighted average annualized interest rate of 5.26% .

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 the value of the portfolio's average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2006 to December 31, 2006, to waive receipt of its fees and/or assume the expenses of the portfo-

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

lio 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 June 30, 2006, there were no fees waived 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 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 June 30, 2006, Service shares were charged $19,058 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 June 30, 2006, the portfolio was charged $76 pursuant to the transfer agency agreement.

The portfolio compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement for providing custodial services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $5,874 pursuant to the custody agreement.

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $24,491, Rule 12b-1 distribution plan fees $2,850, custodian fees $4,728, chief compliance officer fees $1,926 and transfer agency per account fees $30.

24

(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. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended June 30, 2006, amounted to $23,951,587 and $27,117,287, respectively.

At June 30, 2006, accumulated net unrealized appreciation on investments was $1,100,558, consisting of $3,924,479 gross unrealized appreciation and $2,823,921 gross unrealized depreciation.

At June 30,2006,the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

The Portfolio 25

For More Information

Telephone 1-800-554-4611 or 516-338-3300 
Mail    The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 
    Attn: Investments Division 

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0192SA0606

  Dreyfus
Investment Portfolios,
Founders Discovery
Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
10    Statement of Assets and Liabilities 
11    Statement of Operations 
12    Statement of Changes in Net Assets 
13    Financial Highlights 
15    Notes to Financial Statements 
    FOR MORE INFORMATION 
    Back Cover 

Dreyfus Investment Portfolios,
Founders Discovery Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, Founders Discovery Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

Stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected. In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. economy moves into a more mature phase with milder rates of growth. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a recession currently appears unlikely, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies. As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio manager.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

James Padgett and Brad Orr, Portfolio Managers

How did Dreyfus Investment Portfolios, Founders Discovery Portfolio perform relative to its benchmark?

For the six-month period ended June 30, 2006, the portfolio produced total returns of 1.84% for its Initial shares and 1.65% for its Service shares.1 In comparison, the Russell 2000 Growth Index, the portfolio's benchmark, produced a total return of 6.07% for the reporting period.2

As they have for some time, small-cap stocks continued to outperform their larger-cap counterparts in an environment of generally robust U.S. economic growth.While concerns later in the reporting period regarding inflation and rising interest rates dampened investor sentiment, it was not enough to erase earlier gains.The portfolio shared in a portion of the market's advance, but relatively strong performance in the materials, industrials and consumer discretionary sectors was offset by disappointing stock selections in the health care, information technology and energy sectors. As a result, the portfolio's returns underperformed versus the benchmark.

On a separate note, effective on or about August 1, 2006, Randy Watts will become the sole primary portfolio manager of the portfolio.

What is the portfolio's investment approach?

The portfolio invests primarily in equity securities of small U.S.-based companies that we believe possess high-growth potential.The portfolio may also invest in larger companies if, in our opinion, they represent better prospects for capital appreciation. Although the portfolio will normally invest in common stocks of U.S.-based companies, it may invest up to 30% of its total assets in foreign securities.The portfolio also may invest in investment-grade debt securities of domestic or foreign issuers that we believe — based on market conditions, the financial condition of the issuer, general economic conditions and other relevant factors — offer opportunities for capital appreciation.

Rather than utilizing a "top-down" approach to stock selection, which relies on forecasting stock market trends, we focus on a "bottom-up" approach in which stocks are chosen according to their own individual merits. Stock selection is made on a company-by-company basis, with particular emphasis on companies that we believe are well-managed and well-positioned within their industries.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

What other factors influenced the portfolio's performance?

U.S. equity markets rose broadly over the first four months of 2006, as investors anticipated an end to the interest rate tightening campaign by the Federal Reserve Board (the "Fed") in an environment of apparently low inflation and sustainable economic growth. Beginning in May, however, investors anticipated that the Fed might raise interest rates more than they had previously expected, which they believed could lower future economic growth.As a result, stock prices began to slide. High commodity prices and political tensions from various sources also contributed to the market's decline.

The market correction in May and June proved to be particularly severe among small-cap growth stocks, which had ranked among the leaders in the market's advance over the past several years. As a result, small-cap growth stocks generally underperformed small-cap value stocks for the overall reporting period.

The portfolio's investments in the health care sector proved to be particularly disappointing, primarily due to company-specific issues affecting a handful of holdings in the medical technology industry, including Merge Technologies, I-Flow Corp. and Dexcom. In addition, Matria Healthcare, which provides disease management programs for health plans and employers, addressed the integration issues surrounding a large acquisition. In the information technology sector, specialty semiconductors maker Monolithic Power Systems declined after providing slightly weaker earnings guidance and expressing concerns about its end mar-kets.The portfolio also lagged the benchmark in the energy sector, but no individual energy stocks stood out as particularly disappointing.

The portfolio received strong contributions to its relative performance from the materials, industrials and consumer discretionary sectors. However, the portfolio's performance during the first half of 2006 was helped by companies in a variety of sectors. Technology company Trident Microsystems, which makes integrated circuits for digital media applications, continued to take market share in the rapidly growing advanced television market. Industrial firm Hub Group, a freight transportation and logistics services provider, posted better-than-expected quarterly results due to success with a number of internal growth and margin-enhancement programs. Industrial and construction supply distributor Hughes Supply gained value when it was acquired by Home Depot. Pharmaceuticals developer MGI

4

Pharma rebounded from earlier weakness as a result of new product approvals, improving fundamentals and an attractive valuation.And oil services company Superior Energy Services saw earnings rebound amid a backlog of orders following the 2005 Gulf Coast hurricanes.

What is the portfolio's current strategy?

We have maintained the portfolio's sector allocations in proportions that roughly match those of the Index, enabling us to focus on seeking value through our bottom-up security selection process. As of the end of the reporting period, we have continued to find small-cap companies in a variety of market sectors that, in our judgment, are poised for potential gains. However, we recently have found no stocks meeting our criteria in the relatively small utilities sectors, where few businesses are considered growth companies, and in the information technology sectors, where we believe valuations are high and fundamentals are deteriorating.

July 17, 2006

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, Founders Discovery
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 certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in
effect through July 31, 2006, at which time it may be extended, terminated or modified. Had
these expenses not been absorbed, the portfolio's returns would have been lower.
Part of the portfolio's recent performance is attributable to positive returns from its initial
public offering (IPO) investments.There can be no guarantee that IPOs will have or
continue to have a positive effect on the portfolio's performance. Currently, the portfolio is
relatively small in asset size. IPOs tend to have a reduced effect on performance as a
portfolio's asset base grows.
2 SOURCE: LIPPER INC. – Reflects reinvestment of dividends and, where applicable, capital
gain distributions.The Russell 2000 Growth Index is an unmanaged index, which measures the
performance of those Russell 2000 companies with higher price-to-book ratios and higher
forecasted growth values.

The Portfolio 5

  UNDERSTANDING YOUR
PORTFOLIO'S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, Founders Discovery Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended June 30, 2006     
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.35    $ 6.30 
Ending value (after expenses)    $1,018.40    $1,016.50 

  COMPARING YOUR PORTFOLIO'S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.36    $ 6.31 
Ending value (after expenses)    $1,019.49    $1,018.55 

† Expenses are equal to the portfolio's annualized expense ratio of 1.07% for Initial shares and 1.26% for Service shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS
June 30, 2006 (Unaudited)
Common Stocks—96.0%    Shares    Value ($) 
Finance—8.6%         
Affiliated Managers Group    4,836 a,b    420,200 
American Equity Investment Life Holding    21,559 a    229,819 
NewAlliance Bancshares    37,048    530,157 
SVB Financial Group    8,396 b    381,682 
Trammell Crow    19,776 b    695,522 
        2,257,380 
Health Care—16.7%         
ArthroCare    8,846 a,b    371,620 
Dexcom    11,938 b    162,118 
ev3    49,116 a    727,408 
I-Flow    44,354 b    479,910 
Integra LifeSciences Holdings    9,687 b    375,953 
LCA-Vision    10,328 a    546,455 
Matria Healthcare    7,134 a,b    152,810 
MGI Pharma    33,436 a,b    718,874 
Neurometrix    6,576 b    200,305 
NuVasive    21,491 a,b    391,781 
United Surgical Partners International    9,138 b    274,780 
        4,402,014 
Hotels, Restaurants & Leisure—11.6%         
Gaylord Entertainment    10,958 a,b    478,207 
Intrawest    15,625    497,813 
Kerzner International    6,700 a,b    531,176 
Life Time Fitness    8,796 b    406,991 
Ruth's Chris Steak House    20,473    418,059 
WMS Industries    26,240 a,b    718,714 
        3,050,960 
Industrial—10.9%         
ASV    13,786 a,b    317,629 
Bucyrus International, Cl. A    6,971    352,035 
Evergreen Solar    20,454 a,b    265,493 
Foster Wheeler    10,229 b    441,893 
Glamis Gold    10,148 b    384,203 
NCI Building Systems    11,853 b    630,224 
Perini    20,991 b    472,298 
        2,863,775 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Oil & Gas—7.8%         
Bronco Drilling    12,337    257,720 
Hydril    5,548 a,b    435,629 
KFX    40,976 a,b    626,113 
Superior Energy Services    9,085 a,b    307,981 
Tetra Technologies    14,275 b    432,390 
        2,059,833 
Retail—9.9%         
Aaron Rents    20,424 a    548,997 
Central European Distribution    20,510 b    516,032 
Guitar Center    9,873 a,b    439,052 
Pacific Sunwear of California    17,263 a,b    309,525 
Sotheby's, Cl. A    18,714 b    491,243 
Valuevision Media, Cl. A    28,761 b    317,234 
        2,622,083 
Services—5.0%         
CRA International    10,116 a,b    456,636 
Knoll    30,328 a    556,822 
Resources Connection    12,400 a,b    310,248 
        1,323,706 
Technology—21.5%         
Aeroflex    55,926 a,b    652,656 
Digitas    20,612 a,b    239,511 
DSP Group    16,709 a,b    415,219 
Earthlink    40,090 b    347,179 
Entegris    45,057 b    429,393 
InPhonic    37,984 b    239,299 
Microsemi    13,234 b    322,645 
Monolithic Power Systems    27,539 b    325,786 
Nuance Communications    25,855 a,b    260,101 
Quality Systems    11,979 a    441,067 
Rackable Systems    21,021    830,119 
RF Micro Devices    71,174 b    424,909 
Syniverse Holdings    17,521 b    257,559 
Witness Systems    23,998 b    484,040 
        5,669,483 

8
Common Stocks (continued)    Shares        Value ($) 
Transportation—4.0%             
HUB Group, Cl. A    23,564    b    578,025 
Old Dominion Freight Line    8,844    b    332,446 
UTi Worldwide    5,200        131,196 
            1,041,667 
Total Common Stocks             
(cost $24,536,917)            25,290,901 
 
Other Investment—3.7%             
Registered Investment Company;             
Dreyfus Institutional Preferred             
Plus Money Market Fund             
(cost $991,000)    991,000    c    991,000 
 
Investment of Cash Collateral             
for Securities Loaned—35.6%             
Registered Investment Company;             
Dreyfus Institutional Cash             
Advantage Plus Fund             
(cost $9,375,322)    9,375,322    c    9,375,322 
 
Total Investments (cost $34,903,239)    135.3%        35,657,223 
Liabilities, Less Cash and Receivables    (35.3%)    (9,301,930) 
Net Assets    100.0%        26,355,293 

a All or a portion of these securities are on loan. At June 30, 2006, the total market value of the portfolio's securities
on loan is $9,059,759 and the total market value of the collateral held by the portfolio is $9,375,322.
b Non-income producing security.
c Investment in affiliated money market mutual fund.
Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Money Market Investments    39.3    Finance    8.6 
Technology    21.5    Oil & Gas    7.8 
Health Care    16.7    Services    5.0 
Hotels, Restaurants & Leisure    11.6    Transportation    4.0 
Industrial    10.9         
Retail    9.9        135.3 

† Based on net assets.
See notes to financial statements.

The Portfolio 9

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)
        Cost    Value 
Assets ($):             
Investments in securities—             
See Statement of Investments    (including securities         
on loan, valued at $9,059,759)—Note 1(b):         
Unaffiliated issuers        24,536,917    25,290,901 
Affiliated issuers        10,366,322    10,366,322 
Cash            37,849 
Receivable for investment securities sold        67,001 
Receivable for shares of Beneficial Interest subscribed        13,312 
Dividends receivable            7,442 
Prepaid expenses            1,589 
            35,784,416 
Liabilities ($):             
Due to The Dreyfus Corporation and affiliates—Note 3(b)        28,266 
Liability for securities on loan—Note 1(b)        9,375,322 
Payable for shares of Beneficial Interest redeemed        139 
Accrued expenses            25,396 
            9,429,123 
Net Assets ($)            26,355,293 
Composition of Net Assets ($):         
Paid-in capital            29,979,240 
Accumulated investment (loss)—net        (72,003) 
Accumulated net realized gain (loss) on investments        (4,305,928) 
Accumulated net unrealized appreciation         
(depreciation) on investments            753,984 
Net Assets ($)            26,355,293 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    23,840,166    2,515,127 
Shares Outstanding    2,391,899    254,853 
Net Asset Value Per Share ($)    9.97    9.87 

See notes to financial statements.

10

STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends:     
Unaffiliated issuers    31,712 
Affiliated issuers    9,942 
Interest    14,547 
Income from securities lending    22,135 
Total Income    78,336 
Expenses:     
Investment advisory fee—Note 3(a)    124,833 
Auditing fees    19,269 
Prospectus and shareholders' reports    11,716 
Custodian fees—Note 3(b)    7,961 
Distribution fees—Note 3(b)    3,429 
Legal fees    837 
Trustees' fees and expenses—Note 3(c)    563 
Loan commitment fees—Note 2    163 
Miscellaneous    2,354 
Total Expenses    171,125 
Less—waiver of fees due to     
undertaking—Note 3(a)    (20,555) 
Less—reduction in custody fees due to     
earnings credits—Note 1(b)    (231) 
Net Expenses    150,339 
Investment (Loss)—Net    (72,003) 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    1,514,801 
Net unrealized appreciation (depreciation) on investments    (927,123) 
Net Realized and Unrealized Gain (Loss) on Investments    587,678 
Net Increase in Net Assets Resulting from Operations    515,675 

See notes to financial statements.

The Portfolio 11

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Operations ($):         
Investment (loss)—net    (72,003)    (168,286) 
Net realized gain (loss) on investments    1,514,801    3,515,976 
Net unrealized appreciation         
(depreciation) on investments    (927,123)    (3,350,978) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    515,675    (3,288) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    1,474,846    3,683,886 
Service shares    115,432    145,106 
Cost of shares redeemed:         
Initial shares    (1,974,382)    (2,839,882) 
Service shares    (380,783)    (455,122) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (764,887)    533,988 
Total Increase (Decrease) in Net Assets    (249,212)    530,700 
Net Assets ($):         
Beginning of Period    26,604,505    26,073,805 
End of Period    26,355,293    26,604,505 
Undistributed investment (loss)—net    (72,003)    — 
Capital Share Transactions (Shares):         
Initial Shares         
Shares sold    142,016    391,230 
Shares redeemed    (190,079)    (300,019) 
Net Increase (Decrease) in Shares Outstanding    (48,063)    91,211 
Service Shares         
Shares sold    11,662    15,646 
Shares redeemed    (36,410)    (48,933) 
Net Increase (Decrease) in Shares Outstanding    (24,748)    (33,287) 

See notes to financial statements.

12

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.

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

The Portfolio 13

FINANCIAL HIGHLIGHTS (continued)

  a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

14

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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 Founders Discovery 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 capital appreciation. The Dreyfus Corporation (the "Manager" or "Dreyfus") serves as the portfolio's investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial"). Founders Asset Management LLC ("Founders") serves as the portfolio's sub-investment adviser. Founders is a wholly-owned subsidiary of Dreyfus Service Corporation which is a wholly-owned subsidiary of Dreyfus.

Dreyfus Service Corporation (the "Distributor") 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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Portfolio 15

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities (including options and financial futures) are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale 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. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers.

(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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

16

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of Dreyfus, the portfolio may lend securities to qualified institutions. It is the portfolio's policy that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Cash collateral is invested in certain money market mutual funds managed by Dreyfus.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction.Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as "affiliated" in the Act.

(d) 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 U.S. generally accepted accounting principles.

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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.

The fund has an unused capital loss carryover of $5,573,497 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $1,514,318 of the carryover expires in fiscal 2009, $3,800,802 expires in fiscal 2010 and $258,377 expires in fiscal 2011.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the "Facility") primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended June 30, 2006, the portfolio did not borrow under the Facility.

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

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

Dreyfus has agreed, from January 1, 2006 to December 31, 2006, 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, commitment fees and extraordinary expenses, do not exceed 1.08% for its Initial Shares and 1.26% for its Service Shares. During the period ended June 30, 2006, Dreyfus waived receipt of fees of $20,555, pursuant to the undertaking.

18

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Founders, the sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the value of the portfolio's average daily net assets, computed at the following annual rates:

(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 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 June 30, 2006, Service shares were charged $3,429 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $65 pursuant to the transfer agency agreement.

The portfolio compensates Mellon Bank, N.A., an affiliate of Dreyfus, under a custody agreement for providing custodial services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $7,961 pursuant to the custody agreement.

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $21,878, Rule 12b-1 distribution plan fees $502, custodian fees $3,938, chief compliance officer fees $1,926 and transfer agency per account fees $22.

(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 SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Managment fees of the underlying money market mutual funds have been waived by Dreyfus.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended June 30, 2006, amounted to $19,430,098 and $19,981,834, respectively.

At June 30, 2006, accumulated net unrealized appreciation on investments was $753,984, consisting of $2,430,219 gross unrealized appreciation and $1,676,235 gross unrealized depreciation.

At June 30,2006,the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

20

For More Information

Telephone 1-800-554-4611 or 516-338-3300 

  Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
Attn: Investments Division

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0193SA0606

  Dreyfus
Investment Portfolios,
Founders Growth
Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    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 
    FOR MORE INFORMATION 
    Back Cover 

The Portfolio

Dreyfus Investment Portfolios, 
Founders Growth Portfolio 

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, Founders Growth Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

Stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected. In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. economy moves into a more mature phase with milder rates of growth. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a recession currently appears unlikely, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies. As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio manager.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

John Jares, CFA, Portfolio Manager

How did Dreyfus Investment Portfolios, Founders Growth Portfolio perform relative to its benchmark?

For the six-month period ended June 30, 2006, the portfolio produced total returns of 0.85% for its Initial Shares and 0.93% for its Service shares.1 In comparison, the Russell 1000 Growth Index (the "Index"), the portfolio's benchmark, produced a total return of –0.93% for the same period.2

Inflation concerns and higher interest rates caused investors to sell stocks in May and June, giving back gains achieved over the first four months of 2006. The portfolio produced higher returns than its benchmark, mainly through strong stock selections in consumer- and industrial-related market sectors that have benefited from the economy's strength.

What is the portfolio's investment approach?

The portfolio seeks long-term growth of capital.To pursue this goal, the portfolio invests primarily in equity securities of well-established, high-quality "growth" companies. Utilizing a "bottom-up" approach, we focus on individual stock selection rather than on forecasting stock market trends.We look for high-quality companies which tend to have strong performance records, solid market positions and reasonable financial strength, and have continuous operating records of three years or more. The portfolio seeks investment opportunities, generally, in companies which we believe have fundamental strengths that indicate the potential for growth in earnings per share. We believe the companies we select have a sustainable competitive advantage, such as a dominant brand name, a high barrier to entry from competition and/or large untapped market opportunities. The portfolio may purchase securities of companies in initial public offerings.The portfolio may invest up to 30% of its assets in foreign securities, and up to 25% of its assets in any one foreign country.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

What other factors influenced the portfolio's performance?

Short-term interest rates continued to climb during the first half of 2006, ending the reporting period at 5.25% . At the same time, energy costs moved sharply higher, with crude oil prices reaching record levels. Despite these potentially adverse influences, investor sentiment remained positive over the first four months of 2006 as the U.S. economy expanded at a robust 5.6% annualized rate during the first quarter of the year, supporting corporate earnings and stock prices.

However, investor sentiment took a turn for the worse in early May, when mounting inflationary pressures and hawkish comments from Federal Reserve Board (the "Fed") Chairman Ben Bernanke led investors to worry that interest rates might rise more than previously expected, potentially choking off future economic growth. In addition, geopolitical anxiety intensified, adding to investor uncertainty.As a result, stock prices fell sharply in May and June, erasing gains achieved during the early part of the year.

The portfolio weathered the downturn better than its benchmark, due in part to our emphasis on consumer-oriented companies.Although many analysts feared that rising interest rates and high gasoline prices might dampen consumer spending, the strong economy and low unemployment helped support sales and revenues for a number of the portfolio's consumer-oriented portfolio holdings, such as apparel retailer Kohl's, cable systems operator Comcast and entertainment company Pixar Animation Studios. Kohl's, which has more than 700 stores across the United States, has seen strong trends in sales and earnings and also benefited from industry consolidation. Comcast achieved gains by bundling cable-television,Internet access and telephone service.Pixar was acquired by The Walt Disney Company during the reporting period.

Despite higher energy costs, many parts of the industrial sector continued to perform well, including the transportation industry. Among railroads, Union Pacific has seen solid demand for its services, giving it the ability to raise prices. Similarly, airlines have been able to raise prices, partly because recent bankruptcies in the airline industry have

4

reduced capacity at a time in which leisure and business air travel remained strong.

On the other hand, the technology sector continued to struggle, detracting from the portfolio's results. For example, Microsoft's delay in the release of major upgrades to some of its key products disappointed investors, as did the company's higher-than-expected spending to strengthen its Internet presence.

What is the portfolio's current strategy?

We have maintained the fund's emphasis on growth-oriented companies that, in our judgment, are poised to achieve higher earnings due to the success of their products and services. It is worth noting that companies such as these tend to fare relatively well in environments of slower economic growth, unlike more cyclical companies, which do well when the economy is strong and languish when conditions weaken. For example, we recently have found growth opportunities among health care companies, which produce products that consumers need regardless of economic conditions.

July 17, 2006
    The portfolio is only available as a funding vehicle under variable 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, Founders Growth 
    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 certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in 
    effect through December 31, 2006, 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 Russell 1000 Growth Index is a widely accepted, unmanaged large-cap 
    index that measures the performance of those Russell 1000 companies with higher price-to-book 
    ratios and higher forecasted growth values. 

The Portfolio 5

UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (Unaudited) 

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, Founders Growth Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended June 30, 2006     
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.63    $ 4.93 
Ending value (after expenses)    $1,008.50    $1,009.30 

COMPARING YOUR PORTFOLIO'S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.66    $ 4.96 
Ending value (after expenses)    $1,020.18    $1,019.89 

† Expenses are equal to the portfolio's annualized expense ratio of .93% for Initial shares and .99% for Service shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS 
June 30, 2006 (Unaudited) 

Common Stocks—96.4%    Shares        Value ($) 
Chemicals—.7%             
EI Du Pont de Nemours & Co.    3,043        126,589 
Consumer Cyclical—3.6%             
AutoZone    953    a    84,055 
JC Penney    2,529        170,733 
Marriott International, Cl. A    2,358        89,887 
Walgreen    6,122        274,510 
            619,185 
Entertainment/Media—2.7%             
Comcast, Cl. A (Special)    5,266    a    172,619 
Harrah's Entertainment    1,631        116,095 
Walt Disney    5,683        170,490 
            459,204 
Exchange Traded—3.0%             
iShares Russell 1000 Growth Index Fund    4,533    b    229,279 
Nasdaq-100 Index Tracking Stock    3,352    b    129,924 
Standard & Poor's Depository             
Receipts (Tr. Ser. 1)    1,171    b    149,045 
            508,248 
Financial Services—10.1%             
Allstate    4,251        232,657 
American International Group    1,611        95,130 
Assurant    3,785        183,194 
Charles Schwab    17,912        286,234 
Goldman Sachs Group    1,562        234,972 
JPMorgan Chase & Co.    5,662        237,804 
Morgan Stanley    2,050        129,580 
SLM    2,570        136,004 
State Street    1,884        109,442 
TD Ameritrade Holding    5,074        75,146 
            1,720,163 
Food & Beverages—5.4%             
Cadbury Schweppes, ADR    3,400        131,988 
PepsiCo    4,946        296,958 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Food & Beverages (continued)         
Safeway    10,224    265,824 
SYSCO    7,553    230,820 
        925,590 
Health Care—12.4%         
Advanced Medical Optics    3,696 a    187,387 
Amgen    2,428 a    158,378 
Beckman Coulter    1,710    94,990 
Boston Scientific    8,636 a    145,430 
Genzyme    1,453 a    88,706 
Intuitive Surgical    784 a    92,488 
Johnson & Johnson    4,860    291,211 
Medco Health Solutions    3,302 a    189,139 
Medimmune    2,868 a    77,723 
Medtronic    3,066    143,857 
Pfizer    7,518    176,447 
Schering-Plough    8,838    168,187 
Wyeth    6,966    309,360 
        2,123,303 
Household & Personal Products—6.7%         
Avon Products    6,119    189,689 
Colgate-Palmolive    5,364    321,304 
Estee Lauder Cos., Cl. A    5,088    196,753 
Harman International Industries    1,066    91,004 
Procter & Gamble    6,257    347,889 
        1,146,639 
Industrial—7.6%         
Emerson Electric    4,066    340,771 
Empresa Brasileira de Aeronautica, ADR    2,590 b    94,457 
General Electric    19,075    628,712 
Nucor    2,416    131,068 
Waste Management    2,902    104,124 
        1,299,132 

8
Common Stocks (continued)    Shares    Value ($) 
Oil & Gas—4.0%         
Exxon Mobil    6,177    378,959 
Schlumberger    4,765    310,249 
        689,208 
Retail—6.3%         
Best Buy    4,190    229,780 
eBay    1,803 a    52,810 
Family Dollar Stores    8,496    207,557 
Federated Department Stores    6,596    241,414 
Home Depot    4,179    149,566 
Kohl's    831 a    49,129 
Wal-Mart Stores    2,982    143,643 
        1,073,899 
Semiconductors—5.2%         
ASML Holding (New York Reg. Shares)    12,515 a    253,053 
Broadcom, Cl. A    2,258 a    67,853 
Freescale Semiconductor, Cl. B    2,738 a    80,497 
Linear Technology    6,778    226,995 
Maxim Integrated Products    5,091    163,472 
Texas Instruments    2,951    89,386 
        881,256 
Technology—21.9%         
Accenture, Cl. A    3,158    89,435 
Adobe Systems    10,930 a    331,835 
Agilent Technologies    2,479 a    78,237 
Apple Computer    3,270 a    186,782 
Autodesk    2,332 a    80,361 
Automatic Data Processing    3,048    138,227 
BEA Systems    10,784 a    141,163 
Dell    3,552 a    86,704 
Diebold    4,148    168,492 
Electronic Arts    2,767 a    119,092 
Google, Cl. A    1,127 a    472,585 

The Portfolio 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Hewlett-Packard    9,683    306,757 
Intel    7,902    149,743 
Microsoft    25,194    587,020 
Oracle    12,036 a    174,402 
SAP, ADR    1,402    73,633 
Seagate Technology    11,222    254,066 
Symantec    4,254 a    66,107 
Yahoo!    7,139 a    235,587 
        3,740,228 
Telecommunications—4.4%         
Cisco Systems    19,310 a    377,124 
Motorola    10,691    215,424 
Qualcomm    2,007    80,420 
Sprint Nextel    4,307    86,097 
        759,065 
Transportation—2.4%         
AMR    3,771 a    95,859 
Continental Airlines, Cl. B    3,436 a    102,393 
Union Pacific    1,401    130,237 
US Airways Group    1,461 a    73,839 
        402,328 
Total Common Stocks         
(cost $15,380,057)        16,474,037 
 
Other Investment—3.6%         
Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $606,000)    606,000 c    606,000 

10

Investment of Cash Collateral         
for Securities Loaned—3.5%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Plus Fund         
(cost $590,140)    590,140 c    590,140 
Total Investments (cost $16,576,197)    103.5%    17,670,177 
Liabilities, Less Cash and Receivables    (3.5%)    (603,034) 
Net Assets    100.0%    17,067,143 

ADR—American Depository Receipts
a Non-income producing security.
b All or a portion of these securities are on loan. At June 30, 2006, the total market value of the portfolio's securities
on loan is $575,779 and the total market value of the collateral held by the portfolio is $590,140.
c Investment in affiliated money market mutual fund.
Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Technology    21.9    Telecommunications    4.4 
Health Care    12.4    Oil & Gas    4.0 
Financial Services    10.1    Consumer Cyclical    3.6 
Industrial    7.6    Exchange Traded    3.0 
Money Market Investments    7.1    Entertainment/Media    2.7 
Household & Personal Products    6.7    Transportation    2.4 
Retail    6.3    Chemicals    .7 
Food & Beverages    5.4         
Semiconductors    5.2        103.5 

† Based on net assets.
See notes to financial statements.

The Portfolio 11

  STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)
    Cost    Value 
Assets ($):         
Investments in securities—         
See Statement of Investments (including securities     
on loan, valued at $575,779)—Note 1(b):     
Unaffiliated issuers    15,380,057    16,474,037 
Affiliated issuers    1,196,140    1,196,140 
Cash        1,416 
Receivable for investment securities sold    427,222 
Dividends and interest receivable        18,924 
Receivable for shares of Beneficial Interest subscribed    766 
Prepaid expenses        3,309 
        18,121,814 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    15,003 
Liability for securities on loan—Note 1(b)    590,140 
Payable for investment securities purchased    414,910 
Payable for shares of Beneficial Interest redeemed    13,042 
Accrued expenses        21,576 
        1,054,671 
Net Assets ($)        17,067,143 
Composition of Net Assets ($):         
Paid-in capital        30,491,046 
Accumulated undistibuted investment income—net    25,129 
Accumulated net realized gain (loss) on investments    (14,543,012) 
Accumulated net unrealized appreciation     
(depreciation) on investments        1,093,980 
Net Assets ($)        17,067,143 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    12,831,009    4,236,134 
Shares Outstanding    1,033,143    341,562 
Net Asset Value Per Share ($)    12.42    12.40 
 
See notes to financial statements.         

12
  STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends (net of $301 foreign taxes withheld at source):     
Unaffiliated issuers    94,143 
Affiliated issuers    10,882 
Interest    5,451 
Income from securities lending    437 
Total Income    110,913 
Expenses:     
Investment advisory fee—Note 3(a)    68,096 
Auditing fees    18,256 
Custodian fees—Note 3(b)    6,297 
Distribution fees—Note 3(b)    5,736 
Prospectus and shareholders' reports    4,259 
Trustees' fees and expenses—Note 3(c)    540 
Legal fees    523 
Loan commitment fees—Note 2    174 
Miscellaneous    488 
Total Expenses    104,369 
Less—waiver of fees due to undertaking—Note 3(a)    (18,849) 
Net Expenses    85,520 
Investment Income—Net    25,393 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    951,023 
Net unrealized appreciation (depreciation) on investments    (795,072) 
Net Realized and Unrealized Gain (Loss) on Investments    155,951 
Net Increase in Net Assets Resulting from Operations    181,344 

See notes to financial statements.

The Portfolio 13

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Operations ($):         
Investment income—net    25,393    51,341 
Net realized gain (loss) on investments    951,023    2,333,582 
Net unrealized appreciation         
(depreciation) on investments    (795,072)    (1,580,457) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    181,344    804,466 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (38,728)    (42,733) 
Service shares    (12,744)    (10,865) 
Total Dividends    (51,472)    (53,598) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    214,143    333,541 
Service shares    141,949    336,390 
Dividends reinvested:         
Initial shares    38,728    42,733 
Service shares    12,744    10,865 
Cost of shares redeemed:         
Initial shares    (1,161,678)    (3,313,092) 
Service shares    (898,256)    (986,967) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (1,652,370)    (3,576,530) 
Total Increase (Decrease) in Net Assets    (1,522,498)    (2,825,662) 
Net Assets ($):         
Beginning of Period    18,589,641    21,415,303 
End of Period    17,067,143    18,589,641 
Undistributed investment income—net    25,129    51,208 

14
    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Capital Share Transactions:         
Initial Shares         
Shares sold    16,692    28,560 
Shares issued for dividends reinvested    3,021    3,722 
Shares redeemed    (91,929)    (282,116) 
Net Increase (Decrease) in Shares Outstanding    (72,216)    (249,834) 
Service Shares         
Shares sold    11,247    29,299 
Shares issued for dividends reinvested    995    947 
Shares redeemed    (71,567)    (83,728) 
Net Increase (Decrease) in Shares Outstanding    (59,325)    (53,482) 

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.

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

16

  a Based on average shares outstanding at each month end.
b Amount represents less than $.01 per share.
c Not annualized.
See notes to financial statements.

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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 Founders Growth 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" or "Dreyfus") serves as the portfolio's investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial"). Founders Asset Management LLC ("Founders") serves as the portfolio's sub-investment adviser. Founders is a wholly-owned subsidiary of Dreyfus Service Corporation, which is a wholly-owned subsidiary of Dreyfus.

Dreyfus Service Corporation (the "Distributor") 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 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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

18

The fund enters into contracts that contain a variety of indemnifications.The portfolio's maximum exposure under these arrangements is unknown.The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities listed on the National Market System, for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale 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. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits, if any, as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of Dreyfus, the portfolio may lend securities to qualified institutions. It is the portfolio's policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Cash collateral is invested in certain money market mutual funds managed by Dreyfus.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction.Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as "affiliated" in the Act.

(d) 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 U.S. generally accepted accounting principles.

20

(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.

The portfolio has an unused capital loss carryover of $15,164,476 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $9,445,400 of the carryover expires in fiscal 2009 and $5,719,076 expires in fiscal 2010.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2005 were as follows: ordinary income $53,598.The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the "Facility") to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended June 30, 2006, the portfolio did not borrow under the Facility.

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

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

Dreyfus has agreed, from January 1, 2006 to December 31, 2006, 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, commitment fees and extraordinary expenses,

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

exceed 1% of the value of the average daily net assets of their class. During the period ended June 30, 2006, Dreyfus waived receipt of fees of $18,849, pursuant to the undertaking.

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Founders, the sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the value of the portfolio's average daily net assets, computed at the following annual rates:

Average Net Assets     
0 to $100 million    .25% 
$100 million to $1 billion    .20% 
$1 billion to $1.5 billion    .16% 
In excess of $1.5 billion    .10% 

(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 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 June 30, 2006, Service shares were charged $5,736 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $32 pursuant to the transfer agency agreement.

The portfolio compensates Mellon Bank, N.A., an affiliate of Dreyfus, under a custody agreement for providing custodial services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $6,297 pursuant to the custody agreement.

22

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $10,583, Rule 12b-1 distribution plan fees $878, custodian fees $3,867, chief compliance officer fees $1,926 and transfer agency per account fees $10, which are offset against an expense reimbursement currently in effect in the amount of $2,261.

(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 SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by Dreyfus.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended June 30, 2006, amounted to $11,141,464 and $13,419,150, respectively.

At June 30, 2006, accumulated net unrealized appreciation on investments was $1,093,980, consisting of $1,464,486 gross unrealized appreciation and $370,506 gross unrealized depreciation.

At June 30,2006,the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

The Portfolio 23

NOTES

For More Information

Telephone 1-800-554-4611 or 516-338-3300

  Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
Attn: Investments Division

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0176SA0606

  Dreyfus
Investment Portfolios,
Founders International
Equity Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
12    Statement of Financial Futures 
13    Statement of Assets and Liabilities 
14    Statement of Operations 
15    Statement of Changes in Net Assets 
17    Financial Highlights 
19    Notes to Financial Statements 
    FOR MORE INFORMATION 
    Back Cover 

Dreyfus Investment Portfolios,
Founders International
Equity Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, Founders International Equity Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

International stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected.In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. and global economies move into more mature phases. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a global recession currently appears unlikely, we expect slower growth in the United States and Europe in 2007. Economic expansion in Japan and China seems likely to continue, but lower demand for exports could contribute to a slowdown elsewhere in Asia. Indicators to watch in the months ahead include the outlook for inflation in the United States and overseas, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in short-term interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies. As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio managers.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

Remi J. Browne, CFA, and Jeffrey R. Sullivan, CFA, Portfolio Managers

How did Dreyfus Investment Portfolios, Founders International Equity Portfolio perform relative to its benchmarks?

For the six-month period ended June 30, 2006, the portfolio produced total returns of 9.81% for its Initial shares and 9.81% for its Service shares.1 In comparison, the portfolio's benchmarks, the Morgan Stanley Capital International (MSCI) World ex U.S. Index and the MSCI World ex U.S. Growth Index, produced total returns of 10.06% and 9.60%, respectively, for the same period.2,3

During the first half of the year, the U.K. and Germany provided the largest positive impact to relative fund performance due to strong stock selection. This was somewhat offset by poor relative performance in Sweden and Japan. Across sectors, the portfolio benefited from strong selection in materials and financials, but was hurt by under-performance in the industrials and consumer discretionary sectors.

On a separate note, Jeffrey R. Sullivan became a primary portfolio manager of the portfolio on May 1, 2006, replacing Daniel B. LeVan, and will serve with the portfolio's other primary portfolio manager,Remi Browne.

What is the portfolio's investment approach?

The portfolio seeks long-term growth of capital.To pursue this goal, the portfolio normally invests at least 80% of its assets in the equity securities of foreign companies.The portfolio focuses on equity securities of foreign companies that are characterized as "growth" companies. The portfolio may purchase securities of companies in initial public offerings or shortly thereafter.

The portfolio will invest primarily in foreign issuers from at least three foreign countries with established or emerging economies, but will not invest more than 50% of its assets in issuers in any one foreign country.Although the portfolio intends to invest substantially all of its assets in issuers located outside the United States, at times it may invest in U.S.-based companies.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

The portfolio focuses on individual stock selection.We do not attempt to predict interest rates or market movements, nor do we have country allocation models or targets. Rather, we choose investments on a company-by-company basis, searching to find what we believe are well-managed, well-positioned companies, wherever they may be.

What other factors influenced the portfolio's performance?

During the reporting period, international equity markets continued their three-year rally. Mergers-and-acquisition (M&A) activity increased and strong earnings announcements overcame significant tightening in global monetary policy. Investor sentiment was boosted by benign inflation, historically low interest rates and an ongoing economic expansion, primarily driven by the United States. However, later in the reporting period, investors became concerned about numerous economic issues that prompted a reversal in global markets.These macroeconomic issues included a slowdown in the housing market, U.S. dollar weakness, rising consumer prices and the continued interest rate increases by the Federal Reserve and a move away from quantitative easing by the Bank of Japan. Against this backdrop, global equity markets suffered a major sell-off beginning in the middle of May and lasting until mid-June.

The portfolio's strongest relative performance came from the U.K., Germany and Hong Kong. In the U.K., mining companies Xstrata and Vedanta Resources performed particularly well early in the reporting period due to rising commodity prices.Robust mergers-and-acquisitions activity benefited the portfolio's German stocks, including the acquisition of pharmaceutical maker Schering by former rival Bayer, which was not owned by the fund during the reporting period. ThyssenKrupp, a German steel company, flourished amid industry-wide consolidations. The portfolio also benefited from its holdings in Hong Kong-based China Mobile, which rallied on the strength of a growing customer base.

On the other hand, the portfolio's Swedish, French and Japanese holdings hindered its relative performance. In Sweden, truckmaker Volvo's stock price fell following its announced profit warning, at which time we sold the stock. In France, the stock price of EADS, the European Aeronautics Defense and Space Company, fell due to extensive delays at Airbus, particularly with respect to its new A380 plane.The portfolio's Japanese declines can be traced primarily to one holding,Yamada Denki, a consumer electronics retailer that encountered the effects of profit-taking after a prolonged period of outperformance.

4

What is the portfolio's current strategy?

We viewed the recent sell-off in international stocks not as the onset of a secular bear market, but as a healthy, cyclical correction that helped to maintain gains achieved over the past several years.We plan to continue our strategy of maintaining country and sector weights that are in line with the portfolio's benchmarks, while attempting to outperform through our individual stock selections.

July 17, 2006

  The portfolio is only available as a funding vehicle under variable 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, Founders International
Equity 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 certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in
effect through December 31, 2006, 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 net dividends and, where applicable,
capital gain distributions.The Morgan Stanley Capital International (MSCI) World ex U.S.
Index is an unmanaged index of global stock market performance, excluding the U.S., consisting
solely of equity securities.
3 SOURCE: Morgan Stanley Capital International Inc. — Reflects reinvestment of dividends
and, where applicable, capital gain distributions.The Morgan Stanley Capital International
(MSCI) World ex U.S. Growth Index measures global developed market equity performance of
growth securities outside of the U.S.

The Portfolio 5

  UNDERSTANDING YOUR
PORTFOLIO'S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, Founders International Equity Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended June 30, 2006     
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 7.75    $ 7.75 
Ending value (after expenses)    $1,098.10    $1,098.10 

  COMPARING YOUR PORTFOLIO'S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 7.45    $ 7.45 
Ending value (after expenses)    $1,017.41    $1,017.41 

† Expenses are equal to the portfolio's annualized expense ratio of 1.49% for Initial shares and 1.49% for Service shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

  6
STATEMENT OF INVESTMENTS
June 30, 2006 (Unaudited)
Common Stocks—95.1%    Shares    Value ($) 
Australia—4.7%         
BHP Billiton    13,970    301,133 
CSL    3,200    127,848 
Rinker Group    7,760    94,538 
        523,519 
Belgium—2.5%         
Delhaize Group    1,500    103,983 
InBev    3,460    169,712 
        273,695 
Canada—6.1%         
Alcan    2,000    93,634 
ATI Technologies    3,400 a    49,376 
Canadian National Railway    2,880    125,731 
Gildan Activewear    1,200 a    56,718 
Manulife Financial    1,800    57,002 
Precision Drilling Trust    1,700    56,469 
Shaw Communications, Cl. B    2,600    73,444 
Teck Cominco, Cl. B    1,600    95,951 
Trican Well Service    3,200    63,891 
        672,216 
China—.6%         
Foxconn International Holdings    29,000 a    61,798 
Finland—1.6%         
Nokia    8,600    175,550 
France—10.1%         
BNP Paribas    1,446    138,430 
Bouygues    1,190    61,185 
PPR    400    51,007 
Sanofi-Aventis    2,680    261,535 
Schneider Electric    860    89,645 
Societe Generale    1,030    151,498 
SOITEC    1,800 a    53,250 
Total    1,844    121,344 
Vivendi    5,290    185,386 
        1,113,280 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Germany—6.3%         
BASF    1,660    133,291 
Continental    1,380    141,237 
E.ON    560    64,462 
MAN    1,100    79,659 
Merck    1,330    121,116 
SAP    320    67,531 
ThyssenKrupp    2,720    93,130 
        700,426 
Greece—.9%         
Coca-Cola Hellenic Bottling    3,400    101,322 
Hong Kong—1.3%         
China Mobile    25,800    147,497 
Italy—3.1%         
Banca Intesa    21,300    124,772 
Capitalia    8,870    72,776 
ENI    5,000    147,277 
        344,825 
Japan—19.7%         
Canon    4,650    227,909 
Daiwa Securities Group    8,900    106,060 
Fujitsu    12,000    92,993 
Honda Motor    6,200    196,628 
Kirin Brewery    3,500    55,010 
Matsushita Electric Industrial    5,000    105,495 
Mitsubishi    8,200    163,699 
Mitsubishi Electric    17,200    137,798 
Mitsui & Co.    7,000    98,829 
Nomura Holdings    6,900    129,307 
ORIX    390    95,234 
Rengo    6,800    51,389 
Sony    4,600    202,953 
SUMCO    1,000    56,963 

  8
Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Sumitomo Electric Industries    9,800    143,498 
Takeda Pharmaceutical    900    55,985 
TDK    800    60,807 
Tokyo Electron    2,000    139,787 
Toshiba    9,000    58,737 
        2,179,081 
Netherlands—3.1%         
Heineken    2,000    84,798 
ING Groep    6,410    251,937 
        336,735 
Norway—2.2%         
Norsk Hydro    2,800    74,189 
Orkla    1,750    81,074 
Telenor    7,600    91,838 
        247,101 
Spain—3.3%         
ACS-Actividades de Construccion y Servicios    2,890    120,537 
Banco Santander Central Hispano    4,000    58,425 
Repsol YPF    1,940    55,555 
Telefonica    7,660    127,559 
        362,076 
Sweden—.6%         
Atlas Copco, Cl. A    2,500    69,457 
Switzerland—8.1%         
Baloise Holding    1,020    78,330 
Compagnie Financiere Richemont, Cl. A    2,200    100,703 
Credit Suisse Group    3,460    193,448 
Nestle    200    62,776 
Roche Holding    1,920    317,175 
UBS    648    70,976 
Zurich Financial Services    300    65,718 
        889,126 

The Portfolio 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
United Kingdom—20.9%         
AstraZeneca    1,010    60,919 
Aviva    4,020    56,866 
Barclays    4,909    55,743 
BG Group    9,300    124,165 
BP    22,163    258,221 
British Airways    19,600 a    124,140 
British American Tobacco    7,930    199,585 
BT Group    20,420    90,279 
Diageo    4,950    83,193 
First Choice Holidays    15,900    67,210 
GlaxoSmithKline    12,220    341,204 
HBOS    4,790    83,204 
HSBC Holdings    3,300    58,023 
International Power    26,250    138,003 
Michael Page International    9,600    62,178 
Royal Bank of Scotland Group    1,680    55,198 
Royal Dutch Shell, Cl. A    1,800    60,537 
Vedanta Resources    5,500    138,528 
WPP Group    5,600    67,729 
Xstrata    4,740    179,560 
        2,304,485 
Total Common Stocks         
(cost $8,123,797)        10,502,189 
 
Preferred Stocks—1.5%         
Germany         
Fresenius         
(cost $154,110)    1,020    169,843 

  10
Other Investment—3.3%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $370,000)    370,000 b    370,000 
Total Investments (cost $8,647,907)    99.9%    11,042,032 
Cash and Receivables (Net)    .1%    8,576 
Net Assets    100.0%    11,050,608 

  a Non-income producing security.
b Investment in affiliated money market mutual fund.
Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Financial    14.9    Money Market Investment    3.3 
Pharmaceuticals    10.5    Consumer Services    2.8 
Telecommunications    10.3    Distributors    2.4 
Technology    9.1    Insurance    2.3 
Oil & Gas Drilling & Equipment    7.6    Other    18.0 
Diversified Metals & Mining    7.3    Futures    .1 
Consumer Non-Durables    6.7         
Industrial    4.7        100.0 

† Based on net assets.
See notes to financial statements.

The Portfolio 11

STATEMENT OF FINANCIAL FUTURES
June 30, 2006 (Unaudited)
        Market Value        Unrealized 
        Covered by        Appreciation 
    Contracts    Contracts ($)    Expiration    at 6/30/2006 ($) 
Financial Futures Long                 
MSCI PAN EURO    4    110,690    September 2006    5,937 
TOPIX    1    138,869    September 2006    3,217 
                9,154 

See notes to financial statements.

12

  STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)
    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments:     
Unaffiliated issuers    8,277,907    10,672,032 
Affiliated issuers    370,000    370,000 
Cash        4,131 
Cash denominated in foreign currencies    2,273    2,302 
Receivable for investment securities sold        184,958 
Dividends and interest receivable        20,548 
Receivable for futures variation margin        5,805 
Prepaid expenses        1,499 
        11,261,275 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    5,931 
Payable for investment securities purchased    153,956 
Payable for shares of Beneficial Interest redeemed    17,993 
Accrued expenses        32,787 
        210,667 
Net Assets ($)        11,050,608 
Composition of Net Assets ($):         
Paid-in capital        12,395,391 
Accumulated undistributed investment income—net    89,361 
Accumulated net realized gain (loss) on investments    (3,837,504) 
Accumulated net unrealized appreciation (depreciation)     
on investments and foreign currency transactions (including     
$9,154 net unrealized appreciation on financial futures)    2,403,360 
Net Assets ($)        11,050,608 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    8,900,420    2,150,188 
Shares Outstanding    498,548    120,376 
Net Asset Value Per Share ($)    17.85    17.86 

See notes to financial statements.

The Portfolio 13

STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends (net of $21,155 foreign taxes withheld at source):     
Unaffiliated issuers    164,539 
Affiliated issuers    3,075 
Interest    4,957 
Total Income    172,571 
Expenses:     
Investment advisory fee—Note 3(a)    55,842 
Custodian fees    34,452 
Auditing fees    19,137 
Prospectus and shareholders' reports    4,033 
Distribution fees—Note 3(b)    2,970 
Trustees' fees and expenses—Note 3(c)    310 
Legal fees    281 
Loan commitment fees—Note 2    62 
Miscellaneous    5,415 
Total Expenses    122,502 
Less—waiver of fees due to undertaking—Note 3(a)    (38,682) 
Less—reduction in custody fees due to     
earnings credits—Note 1(c)    (635) 
Net Expenses    83,185 
Investment Income—Net    89,386 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    1,127,329 
Net realized gain (loss) on financial futures    (4,901) 
Net Realized Gain (Loss)    1,122,428 
Net unrealized appreciation (depreciation) on investments     
and foreign currency transactions (including $9,154 net     
unrealized appreciation on financial futures)    (184,710) 
Net Realized and Unrealized Gain (Loss) on Investments    937,718 
Net Increase in Net Assets Resulting from Operations    1,027,104 

See notes to financial statements.

  14

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Operations ($):         
Investment income—net    89,386    75,795 
Net realized gain (loss) on investments    1,122,428    878,688 
Net unrealized appreciation         
(depreciation) on investments    (184,710)    332,455 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    1,027,104    1,286,938 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (57,027)    (44,227) 
Service shares    (16,131)    (11,460) 
Total Dividends    (73,158)    (55,687) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    1,105,422    1,728,396 
Service shares    456,326    371,568 
Dividends reinvested:         
Initial shares    57,027    44,227 
Service shares    16,131    11,460 
Cost of shares redeemed:         
Initial shares    (1,091,628)    (1,988,891) 
Service shares    (807,312)    (765,231) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (264,034)    (598,471) 
Total Increase (Decrease) in Net Assets    689,912    632,780 
Net Assets ($):         
Beginning of Period    10,360,696    9,727,916 
End of Period    11,050,608    10,360,696 
Undistributed investment income—net    89,361    73,133 

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS (continued)

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Capital Share Transactions:         
Initial Shares         
Shares sold    62,446    117,732 
Shares issued for dividends reinvested    3,213    3,090 
Shares redeemed    (62,037)    (132,803) 
Net Increase (Decrease) in Shares Outstanding    3,622    (11,981) 
Service Shares         
Shares sold    26,116    24,455 
Shares issued for dividends reinvested    908    801 
Shares redeemed    (45,008)    (52,793) 
Net Increase (Decrease) in Shares Outstanding    (17,984)    (27,537) 

See notes to financial statements.

16

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.

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

The Portfolio 17

FINANCIAL HIGHLIGHTS (continued)

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

18

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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 Founders International Equity 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 growth of capital.The Dreyfus Corporation (the "Manager" or "Dreyfus") serves as the portfolio's investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial"). Founders Asset Management LLC ("Founders") serves as the portfolio's sub-investment adviser. Founders is a wholly-owned subsidiary of Dreyfus Service Corporation, which is a wholly-owned subsidiary of Dreyfus.

Dreyfus Service Corporation (the "Distributor") 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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales 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. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. Forward currency exchange contracts are valued at the forward rate. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.

20

(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 market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding 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 or losses arise from changes in the value of assets and liabilities other than investments in securities resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as "affiliated" in the Act.

(e) 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

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 U.S. generally accepted accounting principles.

(f) 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.

The portfolio has an unused capital loss carryover of $ 4,949,713 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $1,947,385 of the carryover expires in fiscal 2009, $1,508,081 expires in fiscal 2010 and $1,494,247 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2005, were as follows: ordinary income $55,687.The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the "Facility") to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowings. During the period ended June 30, 2006, the portfolio did not borrow under the Facility.

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

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

22

Dreyfus has agreed, from January 1, 2006 to December 31, 2006, 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, commitment fees and extraordinary expenses, exceed 1.50% of the value of the average daily net assets of their class. During the period ended June 30, 2006, Dreyfus waived receipt of fees and assumed expenses of the portfolio of $38,682, pursuant to the undertaking.

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Founders, the sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the value of the portfolio's average daily net assets, computed at the following annual rates:

Average Net Assets     
0 to $100 million    .35% 
$100 million to $1 billion    .30% 
$1 billion to $1.5 billion    .26% 
In excess of $1.5 billion    .20% 

(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 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 June 30, 2006, Service shares were charged $2,970 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $25 pursuant to the transfer agency agreement.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $8,908, chief compliance officer fees $1,926, Rule 12b-1 distribution plan fees $437 and transfer agency per account fees $9, which are offset against an expense reimbursement currently in effect in the amount of $5,349.

(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 portfolio based on net assets.

(d) Pursuant to an exemptive order from the SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by Dreyfus.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended June 30, 2006, amounted to $4,738,575 and $5,022,913, respectively.

The portfolio may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The portfolio is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the portfolio to "mark to market" on a daily basis, which reflects the change in market value of the contracts at the close of each day's trading. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses.When the contracts are closed, the portfolio recognizes a realized gain or loss.These investments require initial margin deposits with a broker, which consist of cash or cash equiva-lents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at June 30, 2006, are set forth in the Statement of Financial Futures.

24

At June 30, 2006, accumulated net unrealized appreciation on investments was $2,394,125, consisting of $2,511,146 gross unrealized appreciation and $117,021 gross unrealized depreciation.

At June 30, 2006, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

The Portfolio 25

For More Information

Telephone 1-800-554-4611 or 516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
Attn: Investments Division

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0177SA0606

  Dreyfus
Investment Portfolios,
MidCap Stock Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
13    Statement of Assets and Liabilities 
14    Statement of Operations 
15    Statement of Changes in Net Assets 
17    Financial Highlights 
19    Notes to Financial Statements 
25    Information About the Review 
and Approval of the Portfolio's
Investment Advisory Agreement
    FOR MORE INFORMATION 
    Back Cover 

Dreyfus Investment Portfolios,

MidCap Stock Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, MidCap Stock Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

Stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected. In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. economy moves into a more mature phase with milder rates of growth. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a recession currently appears unlikely, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies.As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio manager.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

John O'Toole, Portfolio Manager

How did Dreyfus Investment Portfolios, MidCap Stock Portfolio perform relative to its benchmark?

For the six-month period ended June 30, 2006, the portfolio's Initial shares produced a total return of 4.71%, and its Service shares produced a total return of 4.63% .1 This compares with the total return of 4.24% provided by the portfolio's benchmark, the Standard & Poor's MidCap 400 Index (the "S&P 400"), for the same period. 2

We attribute these results to continued U.S. economic growth in the face of high energy prices, mounting inflationary pressures and rising short-term interest rates. The stock market responded favorably to these conditions during the first four months of the reporting period before retreating in response to investor concerns in May and June. Midcap stocks outperformed their large-cap counterparts and slightly underperformed small-cap stocks.The portfolio shared in the midcap market's gains, delivering slightly better performance than its benchmark on the strength of good individual stock selections in the health care and consumer cyclical sectors.

What is the portfolio's investment approach?

The portfolio normally invests at least 80% of its assets in growth and value stocks of midsize companies, which are chosen through a disciplined process that combines computer modeling techniques, fundamental analysis and risk management.

In selecting securities, our investment team uses a computer model to identify and rank stocks within an industry or sector, based on:

  • value, or how a stock is priced relative to its perceived intrinsic worth;
  • growth, in this case the sustainability or growth of earnings; and
  • financial profile, which measures the financial health of the company.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

We then use fundamental analysis to select the most attractive of the higher ranked securities, drawing on a variety of sources, including internal as well as Wall Street research and company management.We attempt to manage risk by diversifying across companies and industries, limiting the potential adverse impact from any one stock or industry.The portfolio is structured so that its sector weightings and risk characteristics, such as growth, size, quality and yield, are similar to those of the S&P 400.

What other factors influenced the portfolio's performance?

The stock market climbed during the first four months of 2006, with the portfolio's benchmark rising nearly 10% from the beginning of January through early May. However, the market later gave up those gains, moving into negative territory by early June over concerns that economic growth might slow during the second half of 2006. A continuing flow of favorable economic news enabled the market to bounce back during the final weeks of June, enabling midcap stocks to post positive absolute returns for the reporting period overall.

Although the portfolio failed to match the market's gains during the first few months of 2006, it more than made up the difference during the second half of the reporting period. Individual stock selections proved to be particularly strong in the health care sector. Magellan Health Services, which expanded its focus into new, specialized health markets, and Laboratory Corporation of America Holdings, one of the nation's largest clinical labs, which reported strong financial results both helped the portfolio's performance. The portfolio also gained ground on its benchmark in the consumer cyclical sector as a result of good stock selections. Key holdings included American Eagle Outfitters, an apparel retailer that effectively targeted the youth market, and Choice Hotels International, which benefited from a boom in personal and business travel. Notably strong holdings in other areas included freight transportation service provider C.H. Robinson Worldwide and software systems developer Transactions Systems Architects.

On the other hand, a few stocks detracted from the portfolio's performance compared to the benchmark. Most significant of these were

4

two energy holdings, independent oil and gas developer Pioneer Natural Resources and offshore drilling services provider ENSCO International. Both stocks retreated after posting sharp gains during the prior reporting period. In other areas, homebuilder NVR was hurt by a slowdown in housing starts prompted by rising interest rates, and poultry producer Pilgrim's Pride was undermined by consumers' avian flu concerns, leading us to sell the portfolio's position in the stock.

What is the portfolio's current strategy?

We believe the stock market, particularly in the midcap area, could prove vulnerable to slowing U.S. economic growth. In light of this concern, we are emphasizing companies that we believe offer greater predictability with regard to future revenue and earning prospects, and have the potential to deliver consistently positive financial results under a variety of economic conditions. At the same time, we are maintaining our disciplined midcap focus and a sector-neutral investment approach.

July 17, 2006

The portfolio is only available as a funding vehicle under variable 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, MidCap Stock
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 certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in
effect through December 31, 2006, 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 Standard & Poor's MidCap 400 Index is a widely accepted,
unmanaged total return index measuring the performance of the midsize-company segment of
the U.S. market.

The Portfolio 5

  UNDERSTANDING YOUR
PORTFOLIO'S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, MidCap Stock Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended June 30, 2006     
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.01    $ 4.67 
Ending value (after expenses)    $1,047.10    $1,046.30 

  COMPARING YOUR PORTFOLIO'S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 3.96    $ 4.61 
Ending value (after expenses)    $1,020.88    $1,020.23 

† Expenses are equal to the portfolio's annualized expense ratio of .79% for Initial shares and .92% for Service shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS
June 30, 2006 (Unaudited)
Common Stocks—99.1%    Shares    Value ($) 
Consumer Cyclical—10.5%         
Abercrombie & Fitch, Cl. A    66,800    3,702,724 
American Eagle Outfitters    143,250    4,876,230 
Barnes & Noble    70,500    2,573,250 
CDW    42,300 a    2,311,695 
Choice Hotels International    54,500    3,302,700 
Continental Airlines, Cl. B    59,500 a,b    1,773,100 
Dick's Sporting Goods    67,400 b    2,669,040 
Domino's Pizza    81,900 a    2,026,206 
Dress Barn    110,300 b    2,796,105 
GameStop, Cl. A    79,850 a,b    3,353,700 
Longs Drug Stores    58,100    2,650,522 
Men's Wearhouse    54,800 a    1,660,440 
MSC Industrial Direct, Cl. A    53,600    2,549,752 
Polo Ralph Lauren    39,000    2,141,100 
Sonic    82,000 b    1,704,780 
United Auto Group    87,400 a    1,865,990 
Williams-Sonoma    90,400    3,078,120 
World Fuel Services    44,300    2,024,067 
        47,059,521 
Consumer Goods—2.9%         
BorgWarner    36,200    2,356,620 
HNI    42,700    1,936,445 
Life Time Fitness    40,700 b    1,883,189 
Speedway Motorsports    28,900    1,090,686 
Thor Industries    38,500    1,865,325 
Toro    44,200    2,064,140 
Whirlpool    21,400    1,768,710 
        12,965,115 
Consumer Staples—1.5%         
Hormel Foods    123,900    4,601,646 
Pepsi Bottling Group    72,100    2,318,015 
        6,919,661 
Financial—17.6%         
American Financial Group/OH    91,850    3,940,365 
AmeriCredit    122,300 b    3,414,616 
Ameriprise Financial    45,300    2,023,551 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Financial (continued)         
BancorpSouth    105,300 a    2,869,425 
BankUnited Financial, Cl. A    64,100    1,956,332 
Cathay General Bancorp    73,450    2,672,111 
CBL & Associates Properties    77,700 a    3,024,861 
City National/Beverly Hills, CA    51,800    3,371,662 
Colonial Properties Trust    45,800    2,262,520 
Comerica    54,200    2,817,858 
CompuCredit    65,000 a,b    2,498,600 
Dime Bancorp (Warrants 12/26/2050)    19,900 b    4,378 
Downey Financial    32,600 a    2,211,910 
Equity One    107,000    2,236,300 
Fidelity National Financial    43,300    1,686,535 
First American    112,800    4,768,056 
FirstFed Financial    39,600 a,b    2,283,732 
Greenhill & Co.    26,500 a    1,610,140 
Hanover Insurance Group    44,600    2,116,716 
Mack-Cali Realty    72,200    3,315,424 
New Plan Excel Realty Trust    167,300    4,130,637 
Public Storage    36,000    2,732,400 
SEI Investments    83,200    4,066,816 
Selective Insurance Group    42,700 a    2,385,649 
Sky Financial Group    94,500    2,231,145 
StanCorp Financial Group    61,100    3,110,601 
TCF Financial    81,700    2,160,965 
Unitrin    55,900    2,436,681 
WR Berkley    124,200    4,238,946 
        78,578,932 
Health Care—10.1%         
AmerisourceBergen    50,800    2,129,536 
Beckman Coulter    89,800    4,988,390 
Henry Schein    61,400 b    2,869,222 
Hospira    56,300 b    2,417,522 
IDEXX Laboratories    33,050 b    2,483,046 
Invitrogen    55,600 b    3,673,492 
King Pharmaceuticals    117,700 b    2,000,900 
Kos Pharmaceuticals    33,800 b    1,271,556 

8

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Laboratory Corp. of America Holdings    54,600 b    3,397,758 
Magellan Health Services    69,900 b    3,167,169 
MGI Pharma    109,000 b    2,343,500 
Mine Safety Appliances    59,900 a    2,407,980 
Pediatrix Medical Group    48,400 b    2,192,520 
Sepracor    63,100 a,b    3,605,534 
St. Jude Medical    51,100 b    1,656,662 
United Therapeutics    25,600 b    1,478,912 
Universal Health Services, Cl. B    64,100    3,221,666 
        45,305,365 
Industrial—15.0%         
Alliant Techsystems    35,800 b    2,733,330 
Applied Industrial Technologies    104,100    2,530,671 
CH Robinson Worldwide    112,500    5,996,250 
Crane    68,000    2,828,800 
Cummins    22,000    2,689,500 
EGL    45,300 b    2,274,060 
EMCOR Group    28,200 b    1,372,494 
Expeditors International         
Washington    93,000    5,208,930 
Florida Rock Industries    38,050    1,889,943 
Flowserve    43,000 b    2,446,700 
Genlyte Group    27,800 b    2,013,554 
Graco    52,400    2,409,352 
Granite Construction    31,600    1,430,532 
Joy Global    37,250    1,940,353 
Manpower    79,400    5,129,240 
Monster Worldwide    35,400 b    1,510,164 
NVR    3,475 a,b    1,707,094 
Pacer International    69,800    2,274,084 
Republic Services    96,100    3,876,674 
Robert Half International    32,750    1,375,500 
Ryder System    56,000    3,272,080 
Teleflex    33,000    1,782,660 
Texas Industries    36,900    1,959,390 
Thomas & Betts    55,500 b    2,847,150 

The Portfolio 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Industrial (continued)         
Wabtec    36,500    1,365,100 
Watsco    37,900    2,267,178 
        67,130,783 
Information Services—6.9%         
Catalina Marketing    69,700    1,983,662 
CheckFree    38,300 b    1,898,148 
ChoicePoint    63,300 b    2,644,041 
Cognizant Technology Solutions, Cl. A    64,650 b    4,355,471 
Corporate Executive Board    37,800    3,787,560 
Emdeon    160,250 b    1,988,702 
Equifax    71,200    2,445,008 
Fair Isaac    69,600    2,527,176 
Global Payments    52,900    2,568,295 
John H. Harland    44,200    1,922,700 
Washington Post, Cl. B    5,875    4,582,559 
        30,703,322 
Materials—6.9%         
Airgas    112,100    4,175,725 
Ashland    43,200    2,881,440 
Avery Dennison    45,800    2,659,148 
Celanese, Ser. A    65,400    1,335,468 
Commercial Metals    106,600    2,739,620 
HB Fuller    44,400    1,934,508 
Peabody Energy    150,700    8,401,525 
Quanex    54,900    2,364,543 
Temple-Inland    53,100    2,276,397 
Universal Forest Products    30,500    1,913,265 
        30,681,639 
Oil & Gas Producers—8.4%         
Chesapeake Energy    103,050 a    3,117,262 
Cimarex Energy    79,500    3,418,500 
ENSCO International    91,100    4,192,422 
Helmerich & Payne    68,900    4,151,914 
Newfield Exploration    110,800 b    5,422,552 
Oneok    51,300    1,746,252 
Patterson-UTI Energy    100,600    2,847,986 

10

Common Stocks (continued)    Shares    Value ($) 
Oil & Gas Producers (continued)         
Pride International    135,300 b    4,225,419 
Southwestern Energy    66,800 b    2,081,488 
Superior Energy Services    70,300 a,b    2,383,170 
Tesoro    26,500    1,970,540 
Unit    39,400 a,b    2,241,466 
        37,798,971 
Technology—12.5%         
ADTRAN    84,100    1,886,363 
Amphenol, Cl. A    69,000    3,861,240 
Arrow Electronics    105,300 b    3,390,660 
BEA Systems    150,900 b    1,975,281 
Cadence Design Systems    188,800 b    3,237,920 
CommScope    81,900 a,b    2,573,298 
Harris    82,300    3,416,273 
Imation    70,700    2,902,235 
Lam Research    127,100 b    5,925,402 
MEMC Electronic Materials    149,400 b    5,602,500 
Microchip Technology    167,400 a    5,616,270 
NCR    45,200 b    1,656,128 
Novellus Systems    86,800 b    2,143,960 
SanDisk    39,900 b    2,034,102 
Sybase    158,300 b    3,071,020 
Transaction Systems Architects    81,100 a,b    3,381,059 
Western Digital    154,800 b    3,066,588 
        55,740,299 
Telecommunications—.5%         
NII Holdings    37,500 b    2,114,250 
Utilities—6.3%         
AGL Resources    106,400    4,055,968 
Allegheny Energy    67,400 b    2,498,518 
Mirant    107,700 b    2,886,360 
NRG Energy    54,300 b    2,616,174 
OGE Energy    128,850    4,513,616 
Pinnacle West Capital    67,000    2,673,970 
UGI    110,600 a    2,722,972 
WPS Resources    70,200    3,481,920 

The Portfolio 11

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Utilities (continued)         
Xcel Energy    141,300 a    2,710,134 
        28,159,632 
Total Common Stocks         
(cost $412,771,293)        443,157,490 
 
Other Investment—1.4%         
Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $6,429,000)    6,429,000 c    6,429,000 
 
Investment of Cash Collateral         
for Securities Loaned—10.4%         
Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Fund         
(cost $46,249,828)    46,249,828 c    46,249,828 
 
Total Investments (cost $465,450,121)    110.9%    495,836,318 
Liabilities, Less Cash and Receivables    (10.9%)    (48,557,329) 
Net Assets    100.0%    447,278,989 

a All or a portion of these securities are on loan. At June 30, 2006, the total market value of the portfolio's securities
on loan is $45,437,212 and the total market value of the collateral held by the portfolio is $46,249,828.
b Non-income producing security.
c Investment in affiliated money market mutual fund.
Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Financial    17.6    Information Services    6.9 
Industrial    15.0    Materials    6.9 
Technology    12.5    Utilities    6.3 
Money Market Investments    11.8    Consumer Goods    2.9 
Consumer Cyclical    10.5    Consumer Staples    1.5 
Health Care    10.1    Telecommunications    .5 
Oil & Gas Producers    8.4        110.9 

† Based on net assets.
See notes to financial statements.

12

  STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)
    Cost    Value 
Assets ($):         
Investments in securities—See Statement         
of Investments (including securities on loan,     
valued at $45,437,212)—Note 1(b):         
Unaffiliated issuers    412,771,293    443,157,490 
Affiliated issuers    52,678,828    52,678,828 
Cash        52,678 
Receivable for investment securities sold        5,771,117 
Dividends and interest receivable        378,549 
Receivable for shares of Beneficial Interest subscribed    16,211 
Prepaid expenses        15,941 
        502,070,814 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    299,618 
Liability for securities on loan—Note 1(b)        46,249,828 
Payable for investment securities purchased    7,953,418 
Payable for shares of Beneficial Interest redeemed    242,241 
Interest payable—Note 2        1,228 
Accrued expenses        45,492 
        54,791,825 
Net Assets ($)        447,278,989 
Composition of Net Assets ($):         
Paid-in capital        378,331,395 
Accumulated undistributed investment income—net    1,005,585 
Accumulated net realized gain (loss) on investments    37,555,812 
Accumulated net unrealized appreciation         
(depreciation) on investments        30,386,197 
Net Assets ($)        447,278,989 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    358,267,493    89,011,496 
Shares Outstanding    21,203,143    5,289,500 
Net Asset Value Per Share ($)    16.90    16.83 

See notes to financial statements.

The Portfolio 13

  STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends:     
Unaffiliated issuers    2,736,051 
Affiliated issuers    70,780 
Income from securities lending    27,574 
Total Income    2,834,405 
Expenses:     
Investment advisory fee—Note 3(a)    1,716,478 
Distribution fees—Note 3(b)    113,851 
Professional fees    33,440 
Custodian fees—Note 3(b)    22,171 
Prospectus and shareholders' reports    21,054 
Trustees' fees and expenses—Note 3(c)    6,261 
Interest expense—Note 2    2,566 
Shareholder servicing costs—Note 3(b)    1,516 
Registration fees    530 
Miscellaneous    5,898 
Total Expenses    1,923,765 
Less—waiver of fees due to undertaking—Note 3(a)    (55,723) 
Net Expenses    1,868,042 
Investment Income—Net    966,363 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    37,588,721 
Net unrealized appreciation (depreciation) on investments    (17,167,279) 
Net Realized and Unrealized Gain (Loss) on Investments    20,421,442 
Net Increase in Net Assets Resulting from Operations    21,387,805 

See notes to financial statements.

14

STATEMENT OF CHANGES IN NET ASSETS

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS (continued)

See notes to financial statements.

16

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.

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

The Portfolio 17

FINANCIAL HIGHLIGHTS (continued)

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

18

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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 MidCap Stock 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 investment results that are greater than the total return performance of publicly-traded common stocks of medium-size domestic companies in the aggregate, as represented by the Standard & Poor's MidCap 400 Index.The Dreyfus Corporation (the "Manager" or "Dreyfus") serves as the portfolio's investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial").

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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales 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. Investments in registered investment companies are valued at their net asset value. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

20

(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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits, if any, as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the portfolio may lend securities to qualified institutions. It is the portfolio's policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as "affiliated" in the Act.

(d) 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

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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, if any, 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 U.S. generally accepted accounting principles.

(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.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2005 were as follows: ordinary income $105,741 and long-term capital gains $1,747,053.The tax character of current year distributions will be determined at the end of the current fiscal year.

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 borrowing.

The average daily amount of borrowings outstanding under the line of credit during the period ended June 30, 2006, was approximately $93,000, with a related weighted average annualized interest rate of 5.57% .

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 the value of the portfolio's average daily net assets and is payable monthly.

22

The Manager had agreed, from January 1, 2006 to January 31, 2006, 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.The Manager has agreed from February 1, 2006 to July 31, 2006, to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class, exclusive of certain expenses as described above, exceed .90% of the value of the average daily net assets of their class. During the period ended June 30, 2006, the Manager waived receipt of fees of $55,723, pursuant to the undertakings.

(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 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 June 30, 2006, Service shares were charged $113,851 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 June 30, 2006, the portfolio was charged $410 pursuant to the transfer agency agreement.

The portfolio compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement for providing custodial services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $22,171 pursuant to the custody agreement.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $267,390, Rule 12b-1 distribution plan fees $17,878, custodian fees $17,990, chief compliance officer fees $1,926 and transfer agency per account fees $192, which are offset against an expense reimbursement currently in effect in the amount of $5,758.

(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 SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended June 30, 2006, amounted to $361,463,774 and $380,587,435, respectively.

At June 30, 2006, accumulated net unrealized appreciation on investments was $30,386,197, consisting of $43,454,321 gross unrealized appreciation and $13,068,124 gross unrealized depreciation.

At June 30, 2006, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

24

INFORMATION ABOUT THE REVIEW
AND APPROVAL OF THE PORTFOLIO'S
INVESTMENT ADVISORY AGREEMENT (Unaudited)

At a meeting of the Board of Trustees of Dreyfus Investment Portfolios (the "Company") held on January 26, 2006, the Board considered the re-approval, through its annual renewal date of August 31, 2006, of the portfolio's Investment Advisory Agreement, pursuant to which The Dreyfus Corporation (the "Manager") provides the portfolio with investment advisory and administrative services.The Board members, none of whom are "interested persons" (as defined in the Investment Company Act of 1940, as amended) of the Company, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent and Quality of Services Provided to the Portfolio. The Board members considered information previously provided to them in a presentation from representatives of the Manager at the July 12-13, 2005 Board meeting (the "July Meeting") regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and representatives of the Manager confirmed that there had been no material changes in this information.The Board also discussed the nature, extent and quality of the services provided to the portfolio pursuant to the portfolio's Investment Advisory Agreement. The Manager's representatives reviewed the portfolio's distribution of accounts and the Board members also referenced information provided and discussions at the July Meeting regarding the relationships the Manager has with various intermediaries and the different needs of each.The Board members noted that the portfolio's shares are offered only to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. The Manager's representatives noted the diversity of distribution among the funds in the Dreyfus fund complex, and the Manager's corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including that of the portfolio. The Board also reviewed the number of shareholder accounts in the portfolio, as well as the portfolio's asset size.

The Portfolio 25

  INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO'S
INVESTMENT ADVISORY AGREEMENT (Unaudited) ( c o n t i n u e d )

The Board members also considered the Manager's research and portfolio management capabilities and that the Manager also provides oversight of day-to-day portfolio operations, including portfolio accounting and administration and assistance in meeting legal and regulatory requirements. The Board members also considered the Manager's extensive administrative, accounting and compliance infrastructure.

Comparative Analysis of the Portfolio's Performance, Investment Advisory Fee and Expense Ratios. The Board members reviewed the portfolio's performance, advisory fee and expense ratios and placed significant emphasis on comparisons to two groups of comparable funds and to Lipper averages (with respect to performance only).The Manager's representatives advised the Board members that the first comparison group of funds includes funds in the applicable Lipper category that are not subject to a Rule 12b-1 plan (collectively, "Comparison Group I") and that the second comparison group of funds includes funds in the applicable Lipper category that are subject to a Rule 12b-1 plan (collectively, "Comparison Group II"). Each group of comparable funds was previously approved by the Board for this purpose, and was prepared using a Board-approved selection methodology that was based, in part, on selecting non-affiliated funds reported in the same Lipper category as the portfolio. The Board members did not rely on comparisons to Lipper averages with respect to the portfolio's expense ratios because the average expense ratio of the applicable Lipper category for variable insurance products reflects not only expenses of mutual funds offered to fund variable annuity contracts and variable life insurance policies but also expenses of the separate accounts in which this type of mutual fund is offered.

The Board members discussed the results of the comparisons for various periods ended November 30, 2005, and it was noted that the total return performance of the portfolio's Initial shares (which are not subject to a Rule 12b-1 plan) was below the averages of Comparison Group I for the one-, three- and five-year periods, and that the total return performance of the portfolio's Service shares (which are subject

26

to a Rule 12b-1 plan) was below the averages of Comparison Group II for the one- and three-year periods and was above the average of Comparison Group II for the five-year period. It was noted that the five-year total return performance of the portfolio's Service shares reflects the performance of the portfolio's Initial shares prior to December 31, 2000 (at which time the portfolio began offering Service shares) and reflects the performance of the portfolio's Service shares thereafter.The Board members noted that the portfolio's performance was improving and that the Manager had reassessed the factors included in the model used for selecting stocks for the portfolio. The Board noted that the total return performance of the portfolio's Initial shares and Service shares was below the Comparison Group I and Comparison Group II Lipper category averages, respectively, for the one-, three- and five-year periods.

The Board members also discussed the portfolio's expense ratios, noting that the expense ratio of the portfolio's Initial shares was lower than the average expense ratio of Comparison Group I and that the current fee waiver and expense reimbursement arrangement undertaken by the Manager had caused the expense ratio of the portfolio's Service shares to be comparable to the average expense ratio of Comparison Group II.The Board reviewed the range of management fees in each comparison group, noting several funds having the same or higher management fees than the portfolio. The Board members also considered the Manager's contractual undertaking for the portfolio in effect through December 31, 2006.They requested that the Manager waive additional amounts with respect to the portfolio, until July 31, 2006, so that the expenses of neither class of the portfolio's shares (excluding taxes, brokerage commissions, extraordinary expenses, interest expenses and commitment fees on borrowings) exceed 0.90% (versus 1.00% under the former waiver), and the Manager agreed to that request.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates with similar investment objectives, policies and

The Portfolio 27

  INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO'S
INVESTMENT ADVISORY AGREEMENT (Unaudited) ( c o n t i n u e d )

strategies as the portfolio (the "Similar Funds"), and by other accounts managed or sub-advised by the Manager or its affiliates with similar investment objectives, policies and strategies as the portfolio (collectively with the Similar Funds, the "Similar Accounts").The Manager's representatives explained the nature of the Similar Accounts and the differences, from the Manager's perspective, in management of the Similar Accounts as compared to managing and providing services to the portfolio.The Manager's representatives also reviewed the costs associated with distribution through intermediaries. The Board analyzed the differences in fees paid to the Manager and discussed the relationship of the advisory fees paid in light of the Manager's performance and the services provided; it was noted that the Similar Funds generally had management fees that were comparable to the fee borne by the portfolio or reflected the pricing of a "unitary fee" fund or a fund that imposes a separate administration fee.The Board members considered the relevance of the fee information provided for the Similar Accounts managed by the Manager to evaluate the appropriateness and reasonableness of the portfolio's advisory fees. The Board acknowledged that differences in fees paid by the Similar Accounts seemed to be consistent with the services provided.

Analysis of Profitability and Economies of Scale. The Manager's representatives reviewed the dollar amount of expenses allocated and profit received by the Manager and the method used to determine such expenses and profit. The Board considered information, previously provided and discussed, prepared by an independent consulting firm regarding the Manager's approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex. The Board members also considered that the methodology had been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reasonable. The consulting firm also analyzed where any economies of scale might emerge in connection with the management of the portfolio.The Board members evaluated the analysis in light of the relevant circumstances for the portfolio, and the extent to which economies of scale would be realized as the portfolio grows and

28

whether fee levels reflect these economies of scale for the benefit of portfolio investors.The Board noted that it appeared that the benefits of any economies of scale also would be appropriately shared with shareholders through increased investment in fund management and administration resources.The Board members also considered potential benefits to the Manager from acting as investment adviser to the portfolio, including soft dollar arrangements with respect to trading the portfolio's portfolio.

It was noted that the Board members should consider the Manager's profitability with respect to the portfolio as part of their evaluation of whether the fee under the Investment Advisory Agreement bears a reasonable relationship to the mix of services provided by the Manager, including the nature, extent and quality of such services and that discussions of economies of scale historically have been predicated on increasing assets and that, if a portfolio's assets had been decreasing, the extent to which the Manager may have realized any economies of scale would be less.The Board members also discussed the profitability percentage ranges determined by appropriate court cases to be reasonable given the services rendered to investment companies. It was noted that the profitability percentage for managing the portfolio was not unreasonable given the portfolio's overall performance and generally superior service levels provided.The Board also noted the current fee waiver and expense reimbursement arrangement and its effect on the profitability of the Manager.

At the conclusion of these discussions, each Board member expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to continuation of the portfolio's Investment Advisory Agreement. Based on their discussions and considerations as described above, the Board made the following conclusions and determinations with respect to the portfolio.

The Portfolio 29

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO'S  INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued) 

  • The Board concluded that the nature, extent and quality of the services provided by the Manager to the portfolio are adequate and appropriate.
  • While the Board was concerned with the portfolio's total return performance, the Board members noted that the portfolio's short-term performance is improving and the Manager had reassessed the factors included in the model used for selecting stocks for the portfolio.
  • The Board concluded that the fee paid to the Manager by the portfolio was reasonable in light of the services provided, comparative performance and expense and advisory fee information, including the Manager's undertaking to waive or reimburse certain fees and expenses, particularly given the Manager's increase in the amount of the waiver pertaining to the portfolio, costs of the services provided and profits to be realized and benefits derived or to be derived by the Manager from its relationship with the portfolio.
  • The Board determined that the economies of scale which may accrue to the Manager and its affiliates in connection with the management of the portfolio had been adequately considered by the Manager in connection with the advisory fee rate charged to the portfolio, and that, to the extent in the future it were determined that material economies of scale had not been shared with the portfolio, the Board would seek to have those economies of scale shared with the portfolio.

The Board members considered these conclusions and determinations, along with the information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the portfolio's Investment Advisory Agreement was in the best interests of the portfolio and its shareholders and that the Investment Advisory Agreement would be renewed through its annual renewal date of August 31, 2006.

30

NOTES

For More Information

Telephone 1-800-554-4611 or 516-338-3300

  Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
Attn: Investments Division

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0174SA0606

  Dreyfus
Investment Portfolios,
Small Cap Stock Index
Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
25    Statement of Financial Futures 
26    Statement of Assets and Liabilities 
27    Statement of Operations 
28    Statement of Changes in Net Assets 
29    Financial Highlights 
30    Notes to Financial Statements 
    FOR MORE INFORMATION 
    Back Cover 

  Dreyfus Investment Portfolios,
Small Cap Stock Index Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios, Small Cap Stock Index Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

Stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected. In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. economy moves into a more mature phase with milder rates of growth. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a recession currently appears unlikely, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies. As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio manager.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

Thomas Durante, CFA, Portfolio Manager

How did Dreyfus Investment Portfolios, Small Cap Stock Index Portfolio perform relative to its benchmark?

For the six-month period ended June 30, 2006, the portfolio's Service shares produced a total return of 7.46% .1 In comparison, the Standard& Poor's SmallCap 600 Index ("S&P 600 Index"), the portfolio's benchmark, produced a 7.70% return for the same period.2,3

While a growing economy and rising corporate profits helped small-cap stocks produce generally positive results in the early part of the reporting period, stock prices generally fell sharply in May and June due to mounting concerns regarding a potential economic slowdown in the United States.The difference in returns between the portfolio and the S&P 600 Index was primarily due to the portfolio's expenses, sampling strategy and transaction costs.

What is the portfolio's investment approach?

The portfolio seeks to match the total return of the S&P 600 Index. To pursue this goal, the portfolio invests in a representative sample of stocks included in the S&P 600 Index and in futures whose performance is related to the S&P 600 Index.

The portfolio's investments are selected by a "sampling" process based on market capitalization, industry representation and other means. By using this sampling process, the portfolio typically will not invest in all 600 stocks in the S&P 600 Index. However, at times, the portfolio may be fully invested in all of the stocks that comprise the S&P 600 Index. Under these circumstances, the portfolio maintains approximately the same weighting for each stock as the S&P 600 Index does.

The S&P 600 Index is composed of 600 domestic stocks with market capitalizations ranging between approximately $40 million and approximately $5.2 billion, depending on S&P 600 Index composition. Each stock is weighted by its market capitalization, which means larger companies have greater representation in the S&P 600 Index than smaller ones. The portfolio may also invest in stock futures as a substitute for the sale or purchase of securities.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

What other factors influenced the portfolio's performance?

Over the first four months of the reporting period,small-cap stocks posted generally positive returns due to a growing U.S. economy, rising corporate earnings, a stronger labor market and persistently low inflation. Even higher fuel and borrowing costs failed to dampen investor confidence.

However, beginning in May, the U.S. equity markets sold off sharply due to renewed concerns over mounting inflationary pressures, rising short-term interest rates,moderating growth in consumer spending and a housing-market slowdown. During the downturn, investors shed what they perceived to be riskier investments, including some formerly high-flying small-cap stocks. Instead, investors shifted their attention to larger, better known businesses that offered the potential for more consistent growth rates under a variety of economic conditions.While declines in small-cap stocks in May and June hindered the portfolio's performance, they were not enough to offset earlier gains achieved by the S&P 600 Index.

Energy stocks posted some of the S&P 600 Index's stronger gains for the reporting period, as rising global demand for crude oil and natural gas drove energy-related commodity prices to record levels. What's more, many small-cap energy companies benefited from mergers or acquisitions by larger-cap energy companies seeking to integrate and expand their operations. Smaller energy companies also benefited from contracts to repair damage to oil production and refining facilities in the aftermath of the 2005 Gulf Coast hurricanes.

Gains for the S&P 600 Index were particularly robust in the producer goods sector, which was driven higher by intensifying global demand for heavy machinery, industrial parts, chemicals, metals, construction and freight services. Stocks of steel producers advanced especially strongly due to surging industrial demand from China and India and the benefits of industry consolidation.Within the financials sector, the S&P 600 Index gained value on the strength of real estate investment trusts (REITs). Many of these stocks performed well due to robust commercial real estate and rental apartment markets, despite a slowdown in sales of single-family homes.

4

On the other hand, stocks of many of the home builders in the S&P 600 Index, already hurt by the housing slowdown and higher interest rates, fell sharply during the market correction. Companies that targeted more expensive, higher-end homes were particularly hard-hit.A number of software companies also detracted from the market's performance, primarily due to delays in security-related updates and new video game products. Some computer hardware manufacturers also suffered due to generally lackluster customer demand. Finally, several health care-related technology firms posted negative absolute returns, including companies that manage pharmaceutical sales, track clinical systems, file regulatory information and record patients' medical data.

What is the portfolio's current strategy?

Our strategy is to attempt to replicate the returns of the small-cap market as represented by the S&P 600 Index.Accordingly, the percentages of the portfolio's assets invested in each market sector closely approximate its representation in the S&P 600 Index.

July 17, 2006
    The portfolio is only available as a funding vehicle under variable 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, Small Cap Stock 
    Index 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 certain portfolio expenses by The Dreyfus Corporation pursuant to an undertaking 
    in effect that may be extended, terminated or modified at any time. Had these expenses not been 
    absorbed, the portfolio's returns would have been lower. 
2    SOURCE: LIPPER INC. — Reflects the reinvestment of dividends and, where applicable, 
    capital gain distributions.The Standard & Poor's SmallCap 600 Index is a broad-based index 
    and a widely accepted, unmanaged index of overall small-cap stock market performance. 
3    "Standard & Poor's®,""S&P®,""S&P SmallCap 600" and "Standard & Poor's SmallCap 
    600" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by the 
    portfolio.The portfolio is not sponsored, endorsed, sold or promoted by Standard & Poor's and 
    Standard & Poor's makes no representation regarding the advisability of investing in the portfolio. 

The Portfolio 5

UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (Unaudited) 
 

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios, Small Cap Stock Index Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment 
assuming actual returns for the six months ended June 30, 2006 
 
Expenses paid per $1,000 †    $ 3.09 
Ending value (after expenses)    $1,074.60 

COMPARING YOUR PORTFOLIO'S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment 
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
 
Expenses paid per $1,000 †    $ 3.01 
Ending value (after expenses)    $1,021.82 
 
† Expenses are equal to the portfolio's annualized expense ratio of .60% multiplied by the average account value over the 
period, multiplied by 181/365 (to reflect the one-half year period). 

6

STATEMENT OF INVESTMENTS 
June 30, 2006 (Unaudited) 

Common Stocks—99.8%    Shares    Value ($) 
Consumer Discretionary—14.9%         
4Kids Entertainment    9,100 a    147,511 
Aaron Rents    36,800    989,184 
ADVO    25,850    636,168 
Arbitron    25,500 b    977,415 
Arctic Cat    11,200    218,512 
Ashworth    6,900 a    62,100 
Audiovox, Cl. A    14,500 a,b    198,070 
Aztar    29,300 a    1,522,428 
Bally Total Fitness Holding    23,400 a,b    158,652 
Bassett Furniture Industries    7,700    142,527 
Brown Shoe    24,850    846,888 
Building Material Holding    26,300 b    732,981 
Cato, Cl. A    28,450    735,432 
CEC Entertainment    27,750 a,b    891,330 
Champion Enterprises    61,300 a    676,752 
Children's Place Retail Stores    18,200 a,b    1,092,910 
Christopher & Banks    29,350    851,150 
Coachmen Industries    9,300 b    111,042 
Cost Plus    13,100 a,b    192,046 
CPI    4,000    122,800 
Deckers Outdoor    9,300 a    358,608 
Dress Barn    38,000 a,b    963,300 
Drew Industries    11,200 a    362,880 
Ethan Allen Interiors    27,300 b    997,815 
Finish Line, Cl. A    31,300    370,279 
Fleetwood Enterprises    50,900 a    383,786 
Fossil    39,000 a    702,390 
Fred's    34,100    455,235 
Genesco    21,300 a,b    721,431 
Group 1 Automotive    19,600    1,104,264 
Guitar Center    20,700 a    920,529 
Gymboree    26,200 a    910,712 
Hancock Fabrics/DE    3,600    12,024 
Haverty Furniture Cos.    19,200    301,248 
Hibbett Sporting Goods    30,400 a    726,560 
HOT Topic    30,770 a    354,163 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Consumer Discretionary (continued)         
IHOP    16,300    783,704 
Interface, Cl. A    36,300 a    415,635 
Jack in the Box    29,500 a    1,156,400 
Jakks Pacific    21,600 a,b    433,944 
Jo-Ann Stores    12,125 a,b    177,631 
Jos A Bank Clothiers    10,775 a,b    258,169 
K-Swiss, Cl. A    21,600    576,720 
K2    36,100 a    394,934 
Kellwood    22,100    646,867 
La-Z-Boy    41,000 b    574,000 
Landry's Restaurants    12,700    412,115 
Lenox Group    11,300 a    80,117 
Libbey    9,500    69,825 
Live Nation    53,800 a    1,095,368 
LKQ    38,300 a    727,700 
Lone Star Steakhouse & Saloon    16,300    427,549 
M/I Homes    7,700    270,116 
Marcus    17,800    371,664 
MarineMax    13,600 a,b    356,728 
Men's Wearhouse    43,600    1,321,080 
Meritage Homes    17,600 a,b    831,600 
Midas    9,500 a    174,800 
Monaco Coach    22,100 b    280,670 
Multimedia Games    24,700 a    250,211 
National Presto Industries    1,600    83,648 
Nautilus    24,900 b    391,179 
NVR    4,100 a    2,014,125 
O'Charleys    19,900 a,b    338,300 
Oxford Industries    10,900    429,569 
Panera Bread, Cl. A    25,100 a    1,687,724 
Papa John's International    22,100 a    733,720 
PEP Boys-Manny Moe & Jack    37,500    439,875 
PetMed Express    17,900 a,b    196,363 
PF Chang's China Bistro    19,900 a,b    756,598 
Phillips-Van Heusen    40,800    1,556,928 
Pinnacle Entertainment    36,600 a    1,121,790 
 
 
8         

Common Stocks (continued)    Shares        Value ($) 
Consumer Discretionary (continued)             
Polaris Industries    34,500    b    1,493,850 
Pool    43,925        1,916,448 
Pre-Paid Legal Services    10,100    b    348,450 
Quiksilver    91,000    a    1,108,380 
Radio One, Cl. D    60,200    a    445,480 
Rare Hospitality International    27,450    a    789,462 
Red Robin Gourmet Burgers    10,900    a,b    463,904 
Russ Berrie & Co.    9,800    a    120,148 
Russell    24,100        437,656 
Ryan's Restaurant Group    33,900    a    403,749 
Select Comfort    45,950    a,b    1,055,471 
Shuffle Master    27,850    a,b    912,923 
Skechers U.S.A., Cl. A    21,600    a    520,776 
Skyline    6,200        265,236 
Sonic    70,575    a    1,467,254 
Sonic Automotive    26,000        576,680 
Stage Stores    20,200        666,600 
Stamps.com    15,000    a,b    417,300 
Standard Motor Products    5,000    b    41,700 
Standard-Pacific    52,700        1,354,390 
Steak n Shake    21,200    a    320,968 
Stein Mart    25,000        370,000 
Stride Rite    31,500        415,485 
Sturm Ruger & Co.    13,400    b    83,750 
Superior Industries International    16,700    b    305,443 
Too    27,600    a    1,059,564 
Tractor Supply    27,700    a    1,530,979 
Triarc Cos., Cl. B    48,800    b    762,744 
Tuesday Morning    19,100    b    251,165 
Universal Technical Institute    17,400    a    383,148 
Vertrue    9,300    a    400,179 
Winnebago Industries    27,400    b    850,496 
WMS Industries    17,800    a,b    487,542 
Wolverine World Wide    47,900        1,117,507 
Zale    38,900    a    937,101 
            66,870,416 

The Portfolio 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Consumer Staples—4.1%         
Alliance One International    59,400    263,736 
American Italian Pasta, Cl. A    18,100 b    154,936 
Casey's General Stores    43,400 b    1,085,434 
Corn Products International    59,700    1,826,820 
Delta & Pine Land    30,600    899,640 
Flowers Foods    43,000    1,231,520 
Great Atlantic & Pacific Tea    13,200    299,904 
Hain Celestial Group    30,200 a    777,952 
Hansen Natural    10,600 a    2,017,922 
J & J Snack Foods    12,900    426,603 
Lance    23,300    536,366 
Longs Drug Stores    24,200    1,104,004 
Nash Finch    12,000 b    255,480 
NBTY    46,300 a    1,107,033 
Peet's Coffee & Tea    9,000 a,b    271,710 
Performance Food Group    31,700 a,b    963,046 
Playtex Products    50,800 a,b    529,844 
Ralcorp Holdings    21,600 a    918,648 
RC2    16,000 a    618,560 
Sanderson Farms    10,500    293,895 
Spectrum Brands    26,300 a,b    339,796 
TreeHouse Foods    26,000 a    621,140 
United Natural Foods    31,400 a    1,036,828 
USANA Health Sciences    9,100 a,b    344,890 
WD-40    14,800    496,836 
        18,422,543 
Energy—9.0%         
Atwood Oceanics    21,200 a    1,051,520 
Bristow Group    18,300 a,b    658,800 
Cabot Oil & Gas    38,500    1,886,500 
CARBO Ceramics    14,400    707,472 
Cimarex Energy    67,900    2,919,700 
Dril-Quip    6,600 a    544,104 
Frontier Oil    93,800    3,039,120 
Helix Energy Solutions Group    68,800 a    2,776,768 
Hydril    15,400 a    1,209,208 
Input/Output    57,000 a,b    538,650 
 
10         

Common Stocks (continued)    Shares    Value ($) 
Energy (continued)         
Lone Star Technologies    23,400 a    1,264,068 
Lufkin Industries    11,500    683,445 
Massey Energy    65,900 b    2,372,400 
Maverick Tube    30,400 a,b    1,920,976 
NS Group    19,100 a    1,052,028 
Oceaneering International    46,600 a    2,136,610 
Penn Virginia    14,100    985,308 
Petroleum Development    13,100 a    493,870 
Remington Oil & Gas    20,300 a    892,591 
SEACOR Holdings    16,400 a    1,346,440 
St. Mary Land & Exploration    44,800 b    1,803,200 
Stone Energy    20,800 a    968,240 
Swift Energy    25,000 a    1,073,250 
Tetra Technologies    58,200 a    1,762,878 
Unit    39,100 a    2,224,399 
Veritas DGC    29,300 a    1,511,294 
W-H Energy Services    24,200 a    1,230,086 
World Fuel Services    22,600    1,032,594 
        40,085,519 
Financial—15.8%         
Acadia Realty Trust    22,500    532,125 
Anchor Bancorp Wisconsin    15,400 b    464,618 
Bank Mutual    46,200    564,564 
BankAtlantic Bancorp, Cl. A    34,000    504,560 
BankUnited Financial, Cl. A    29,000    885,080 
Boston Private Financial Holdings    28,600 b    797,940 
Brookline Bancorp    46,400 b    638,928 
Cash America International    25,000    800,000 
Central Pacific Financial    25,000    967,500 
Chittenden    39,225    1,013,966 
Colonial Properties Trust    37,800 b    1,867,320 
Community Bank System    25,200    508,284 
Delphi Financial Group, Cl. A    35,100    1,276,236 
Dime Community Bancshares    18,000    244,260 
Downey Financial    17,800    1,207,730 
East West Bancorp    48,900    1,853,799 
EastGroup Properties    18,100    844,908 

The Portfolio 11

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Financial (continued)         
Entertainment Properties Trust    23,300    1,003,065 
Essex Property Trust    18,100    2,021,046 
Fidelity Bankshares    16,800    534,576 
Financial Federal    21,950    610,429 
First Bancorp/Puerto Rico    68,700    638,910 
First Commonwealth Financial    55,200 b    701,040 
First Indiana    9,700    252,491 
First Midwest Bancorp/IL    39,500    1,464,660 
First Republic Bank/San Francisco, CA    18,900    865,620 
FirstFed Financial    15,000 a,b    865,050 
Flagstar Bancorp    26,600 b    424,536 
Franklin Bank/Houston, TX    19,000 a    383,610 
Fremont General    56,300 b    1,044,928 
Glacier Bancorp    23,600    690,772 
Glenborough Realty Trust    23,900    514,806 
Hanmi Financial    34,500 b    670,680 
Harbor Florida Bancshares    16,000    594,240 
Hilb, Rogal & Hobbs    27,300    1,017,471 
Independent Bank/MI    15,400    405,020 
Infinity Property & Casualty    17,900    733,900 
Investment Technology Group    34,400 a    1,749,584 
Irwin Financial    15,400    298,606 
Kilroy Realty    24,200    1,748,450 
LaBranche & Co.    53,400 a,b    646,674 
LandAmerica Financial Group    15,500    1,001,300 
Lexington Corporate Properties Trust    43,200 b    933,120 
LTC Properties    17,600    393,360 
MAF Bancorp    22,400 b    959,616 
Nara Bancorp    19,600 b    367,500 
National Retail Properties    46,000    917,700 
New Century Financial    47,650 b    2,179,988 
Parkway Properties/Md    12,700 b    577,850 
Philadelphia Consolidated Holding    43,900 a    1,332,804 
Piper Jaffray Cos.    17,000 a    1,040,570 
Portfolio Recovery Associates    12,400 a,b    566,680 
Presidential Life    19,200    471,936 
PrivateBancorp    13,200 b    546,612 
 
12         

Common Stocks (continued)    Shares    Value ($) 
Financial (continued)         
ProAssurance    24,900 a    1,199,682 
Prosperity Bancshares    18,100 b    595,309 
Provident Bankshares    25,900    942,501 
Republic Bancorp/MI    63,503    786,802 
Rewards Network    20,900 a    170,753 
RLI    18,000    867,240 
Safety Insurance Group    12,200    580,110 
Selective Insurance Group    23,600 b    1,318,532 
Shurgard Storage Centers, Cl. A    37,600    2,350,000 
South Financial Group    58,500    1,544,985 
Sovran Self Storage    15,600 b    792,324 
Sterling Bancorp/NY    14,300    278,850 
Sterling Bancshares/TX    39,200    735,000 
Sterling Financial/WA    27,780 b    847,568 
Stewart Information Services    16,600    602,746 
Susquehanna Bancshares    46,300    1,106,570 
SWS Group    12,800    308,736 
TradeStation Group    16,200 a    205,254 
Trustco Bank NY    59,700 b    657,894 
UCBH Holdings    72,900    1,205,766 
Umpqua Holdings    47,000 b    1,205,550 
United Bankshares    28,800    1,054,944 
United Fire & Casualty    14,100 b    424,833 
Whitney Holding    54,600    1,931,202 
Wilshire Bancorp    12,400 b    223,448 
Wintrust Financial    20,000    1,017,000 
World Acceptance    13,700 a    486,624 
Zenith National Insurance    32,200 b    1,277,374 
        70,858,615 
Health Care—11.9%         
Alpharma, Cl. A    37,100    891,884 
Amedisys    12,500 a,b    473,750 
American Medical Systems Holdings    58,000 a    965,700 
AMERIGROUP    43,600 a    1,353,344 
Amsurg    25,150 a    572,162 
Analogic    10,400    484,744 
ArQule    28,000 a    157,920 

The Portfolio 13

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
ArthroCare    20,500 a    861,205 
BIOLASE Technology    10,400 b    87,360 
Biosite    14,500 a    662,070 
Bradley Pharmaceuticals    14,200 a,b    144,840 
Cambrex    21,900    456,177 
Centene    33,100 a    778,843 
Cerner    51,900 a,b    1,926,009 
Chemed    20,600    1,123,318 
CNS    13,800    338,100 
Conmed    23,000 a    476,100 
Connetics    23,200 a,b    272,832 
Cooper Cos.    35,500    1,572,295 
Cross Country Healthcare    15,900 a,b    289,221 
Cyberonics    15,700 a,b    334,724 
Datascope    12,000    370,080 
Dendrite International    35,300 a    326,172 
Diagnostic Products    19,100    1,111,047 
Dionex    16,100 a    880,026 
DJO    17,800 a    655,574 
Enzo Biochem    25,266 a    381,011 
Genesis HealthCare    15,700 a    743,709 
Gentiva Health Services    23,000 a    368,690 
Greatbatch    18,800 a    443,680 
Haemonetics/Mass    22,000 a    1,023,220 
Healthways    28,100 a    1,479,184 
Hologic    37,000 a    1,826,320 
Hooper Holmes    49,700    151,585 
ICU Medical    12,000 a    506,880 
IDEXX Laboratories    26,600 a    1,998,458 
Immucor    56,425 a    1,085,053 
Integra LifeSciences Holdings    14,300 a    554,983 
Intermagnetics General    28,900 a    779,722 
Invacare    27,300    679,224 
inVentiv Health    22,300 a    641,794 
Kendle International    10,000 a    367,300 
Kensey Nash    8,000 a,b    236,000 
Laserscope    13,700 a    422,097 
 
14         

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
LCA-Vision    16,950 b    896,824 
Matria Healthcare    15,600 a,b    334,152 
Mentor    30,300    1,318,050 
Merit Medical Systems    19,900 a    273,824 
MGI Pharma    62,400 a    1,341,600 
Noven Pharmaceuticals    17,000 a    304,300 
Odyssey HealthCare    30,200 a    530,614 
Osteotech    13,600 a    54,944 
Owens & Minor    33,600 b    960,960 
Parexel International    22,100 a    637,585 
Pediatrix Medical Group    40,400 a    1,830,120 
Per-Se Technologies    27,550 a    693,709 
PolyMedica    17,700    636,492 
Possis Medical    17,200 a    151,532 
Regeneron Pharmaceuticals    34,700 a    444,854 
RehabCare Group    12,900 a    224,202 
Resmed    61,100 a    2,868,645 
Respironics    59,300 a    2,029,246 
Savient Pharmaceuticals    49,300 a    258,825 
Sciele Pharma    23,200 a,b    538,008 
SFBC International    14,200 a    215,272 
Sierra Health Services    43,200 a    1,945,296 
Sunrise Senior Living    33,800 a    934,570 
SurModics    14,400 a,b    519,984 
Theragenics    29,700 a    101,277 
United Surgical Partners International    35,850 a    1,078,009 
Viasys Healthcare    25,400 a    650,240 
Vital Signs    6,300    312,039 
        53,339,580 
Industrial—17.6%         
AAR    27,100 a    602,433 
ABM Industries    30,800    526,680 
Acuity Brands    36,500    1,420,215 
Administaff    21,700    777,077 
Albany International, Cl. A    24,900    1,055,511 
Angelica    5,300 b    92,962 
AO Smith    18,300    848,388 

The Portfolio 15

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares        Value ($) 
Industrial (continued)             
Apogee Enterprises    21,000        308,700 
Applied Industrial Technologies    32,550        791,291 
Applied Signal Technology    9,600        163,584 
Arkansas Best    23,200        1,164,872 
Armor Holdings    25,000    a    1,370,750 
Astec Industries    14,800    a    504,976 
ASV    12,700    a,b    292,608 
Baldor Electric    22,700    b    710,283 
Barnes Group    30,000        598,500 
Bowne & Co.    24,300        347,490 
Brady, Cl. A    41,600    b    1,532,544 
Briggs & Stratton    39,800    b    1,238,178 
C & D Technologies    13,600    b    102,272 
CDI    10,500        304,500 
Central Parking    13,500    b    216,000 
Ceradyne    21,650    a,b    1,071,458 
Clarcor    41,800        1,245,222 
Coinstar    22,300    a,b    533,862 
Consolidated Graphics    10,400    a,b    541,424 
Cubic    12,500    b    245,125 
Curtiss-Wright    34,000        1,049,920 
EDO    11,000    b    267,740 
EGL    28,000    a    1,405,600 
ElkCorp    14,100        391,557 
EMCOR Group    25,800    a    1,255,686 
EnPro Industries    18,200    a    611,520 
Esterline Technologies    22,200    a    923,298 
Forward Air    24,300        989,739 
Frontier Airlines Holdings    22,200    a,b    160,062 
G & K Services, Cl. A    16,600        569,380 
Gardner Denver    41,400    a    1,593,900 
GenCorp    40,000    a,b    641,200 
Griffon    19,700    a    514,170 
Healthcare Services Group    25,750        539,463 
Heartland Express    49,966        893,892 
Heidrick & Struggles International    14,600    a,b    494,064 
HUB Group, Cl. A    37,500    a    919,875 
 
16             

Common Stocks (continued)    Shares    Value ($) 
Industrial (continued)         
IDEX    43,000    2,029,600 
Insituform Technologies, Cl. A    19,700 a    450,933 
JLG Industries    85,800    1,930,500 
John H. Harland    24,200    1,052,700 
Kaman    22,400    407,680 
Kansas City Southern    58,500 a,b    1,620,450 
Kaydon    23,900    891,709 
Kirby    42,500 a    1,678,750 
Knight Transportation    42,275    853,955 
Labor Ready    46,400 a    1,050,960 
Landstar System    46,700    2,205,641 
Lawson Products    3,900 b    153,738 
Lennox International    47,700    1,263,096 
Lindsay Manufacturing    10,800 b    292,896 
Lydall    12,000 a    110,640 
Manitowoc    51,800    2,305,100 
Mesa Air Group    31,300 a    308,305 
Mobile Mini    27,000 a    790,020 
Moog, Cl. A    30,350 a,b    1,038,577 
Mueller Industries    30,900    1,020,627 
NCI Building Systems    17,200 a    914,524 
NCO Group    24,100 a    637,204 
Old Dominion Freight Line    23,050 a    866,450 
Regal-Beloit    24,800    1,094,920 
Robbins & Myers    9,500    248,330 
School Specialty    17,400 a,b    554,190 
Shaw Group    63,500 a    1,765,300 
Simpson Manufacturing    29,800 b    1,074,290 
Skywest    49,100    1,217,680 
SourceCorp    13,700 a    339,623 
Spherion    55,300 a    504,336 
Standard Register    10,300    122,055 
Standex International    9,200    279,220 
Teledyne Technologies    29,500 a    966,420 
Tetra Tech    46,600 a    826,684 
Toro    36,100    1,685,870 
Tredegar    19,900    314,818 

The Portfolio 17

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Industrial (continued)         
Triumph Group    13,300 a    638,400 
United Stationers    28,600 a    1,410,552 
Universal Forest Products    14,900    934,677 
URS    36,000 a    1,512,000 
Valmont Industries    14,700    683,403 
Viad    17,100    535,230 
Vicor    13,400    222,038 
Volt Information Sciences    8,300 a    386,780 
Wabash National    24,200 b    371,712 
Waste Connections    36,250 a    1,319,500 
Watsco    19,800    1,184,436 
Watson Wyatt Worldwide, Cl. A    36,300    1,275,582 
Watts Water Technologies, Cl. A    19,400 b    650,870 
Wolverine Tube    1,200 a,b    4,404 
Woodward Governor    23,900    729,189 
        78,554,535 
Information Technology—16.4%         
Actel    18,700 a    268,345 
Adaptec    87,600 a,b    380,184 
Advanced Energy Industries    21,600 a    285,984 
Aeroflex    61,300 a    715,371 
Agilysys    28,300    509,400 
Altiris    18,400 a,b    331,936 
Anixter International    27,500 b    1,305,150 
Ansys    33,800 a    1,616,316 
ATMI    30,600 a    753,372 
Avid Technology    33,867 a    1,128,787 
Axcelis Technologies    76,900 a    453,710 
Bankrate    9,000 a    339,840 
Bel Fuse, Cl. B    10,700 b    351,067 
Belden CDT    34,800    1,150,140 
Bell Microproducts    22,100 a,b    119,782 
Benchmark Electronics    52,250 a    1,260,270 
Black Box    13,700    525,121 
Blue Coat Systems    11,700 a,b    197,262 
Brightpoint    40,800 a    552,024 
Brooks Automation    57,512 a    678,642 
 
18         

Common Stocks (continued)    Shares    Value ($) 
Information Technology (continued)         
C-COR    27,900 a    215,388 
CACI International, Cl. A    24,100 a    1,405,753 
Captaris    18,000 a    83,700 
Carreker    15,900 a    113,685 
Catapult Communications    7,400 a    80,660 
Checkpoint Systems    31,800 a,b    706,278 
CIBER    38,000 a,b    250,420 
Cognex    37,000    963,110 
Coherent    26,700 a    900,591 
Cohu    19,000 b    333,450 
Comtech Telecommunications    17,000 a,b    497,590 
CTS    30,600    455,634 
Cymer    29,600 a    1,375,216 
Daktronics    25,200    727,524 
Digi International    17,200 a    215,516 
Digital Insight    29,300 a    1,004,697 
Diodes    18,100 a    750,064 
Ditech Networks    22,700 a    197,944 
DSP Group    24,400 a    606,340 
eFunds    34,500 a    760,725 
Electro Scientific Industries    22,500 a    404,775 
Epicor Software    43,400 a    457,002 
EPIQ Systems    12,600 a,b    209,664 
ESS Technology    24,000 a    51,840 
Exar    28,500 a    378,195 
Factset Research Systems    28,600    1,352,780 
FEI    17,100 a,b    387,828 
Filenet    35,500 a,b    956,015 
Flir Systems    56,600 a,b    1,248,596 
Gerber Scientific    16,800 a    218,568 
Gevity HR    20,100    533,655 
Global Imaging Systems    19,800 a,b    817,344 
Global Payments    56,400    2,738,220 
Harmonic    46,800 a,b    209,664 
Hutchinson Technology    18,800 a    406,644 
Hyperion Solutions    49,000 a    1,352,400 
InfoSpace    21,600 a    489,672 

The Portfolio 19

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Information Technology (continued)         
Insight Enterprises    37,500 a    714,375 
Inter-Tel    17,300    364,338 
Internet Security Systems    30,400 a    573,040 
Itron    21,200 a    1,256,312 
j2 Global Communications    43,400 a,b    1,354,948 
JDA Software Group    24,200 a    339,526 
Keane    32,800 a    410,000 
Keithley Instruments    13,900    176,947 
Komag    27,200 a,b    1,256,096 
Kopin    57,400 a    207,214 
Kronos/MA    25,100 a,b    908,871 
Kulicke & Soffa Industries    38,200 a    283,062 
Littelfuse    18,100 a    622,278 
LoJack    16,500 a,b    311,190 
Manhattan Associates    23,300 a    472,757 
Mantech International, Cl. A    14,800 a    456,728 
MapInfo    17,300 a    225,765 
MAXIMUS    15,100    349,565 
Mercury Computer Systems    14,400 a    221,616 
Methode Electronics    32,700    343,677 
Micros Systems    31,300 a,b    1,367,184 
Microsemi    57,800 a    1,409,164 
MIVA    8,100 a    32,805 
MRO Software    18,600 a    373,302 
MTS Systems    17,600 b    695,376 
Napster    24,200 a    74,536 
Neoware    16,400 a    201,556 
Netgear    27,000 a,b    584,550 
Network Equipment Technologies    9,600 a    30,144 
Novatel Wireless    18,900 a,b    196,182 
Open Solutions    16,800 a    447,048 
Park Electrochemical    19,800    509,850 
Paxar    27,300 a    561,561 
PC-Tel    7,600 a    64,904 
Pericom Semiconductor    17,200 a    142,760 
Phoenix Technologies    11,300 a    54,353 
 
 
20         

Common Stocks (continued)    Shares    Value ($) 
Information Technology (continued)         
Photronics    35,200 a    520,960 
Photon Dynamics    8,400 a    105,168 
Planar Systems    19,000 a,b    228,760 
Power Integrations    23,800 a    416,024 
Progress Software    32,500 a    760,825 
Quality Systems    14,200    522,844 
Radiant Systems    19,700 a    208,229 
Radisys    17,100 a    375,516 
Rogers    13,600 a    766,224 
Rudolph Technologies    15,300 a    221,850 
Scansource    21,500 a    630,380 
Secure Computing    43,000 a    369,800 
Skyworks Solutions    132,000 a    727,320 
Sonic Solutions    19,800 a    326,700 
SPSS    15,000 a    482,100 
Standard Microsystems    18,200 a    397,306 
Startek    9,700    145,015 
Supertex    10,400 a,b    415,376 
Symmetricom    33,600 a    237,552 
Synaptics    20,800 a,b    445,120 
Take-Two Interactive Software    51,000 a,b    543,660 
TALX    24,550    536,909 
Technitrol    33,500    775,525 
THQ    50,250 a,b    1,085,400 
Tollgrade Communications    12,300 a    119,310 
Trimble Navigation    44,900 a    2,004,336 
Ultratech    14,300 a    225,082 
United Online    53,700    644,400 
Varian Semiconductor         
Equipment Associates    46,650 a    1,521,257 
Veeco Instruments    20,600 a    491,104 
ViaSat    19,000 a    487,920 
WebEx Communications    28,500 a    1,012,890 
Websense    41,800 a    858,572 
X-Rite    14,100    154,959 
        73,137,823 

The Portfolio 21

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Materials—5.2%         
Aleris International    24,765 a    1,135,475 
AM Castle & Co.    8,600    277,350 
AMCOL International    16,500 b    434,775 
Aptargroup    27,700    1,374,197 
Arch Chemicals    19,300    695,765 
Brush Engineered Materials    14,500 a,b    302,325 
Buckeye Technologies    20,800 a    158,912 
Caraustar Industries    17,700 a    159,300 
Carpenter Technology    18,300    2,113,650 
Century Aluminum    17,300 a,b    617,437 
Chaparral Steel    18,300 a    1,317,966 
Chesapeake    14,400    236,304 
Cleveland-Cliffs    19,000 b    1,506,510 
Deltic Timber    9,900    558,063 
Georgia Gulf    29,000 b    725,580 
HB Fuller    25,400    1,106,678 
Headwaters    31,400 a,b    802,584 
MacDermid    20,700 b    596,160 
Myers Industries    28,402    488,230 
Neenah Paper    11,200    341,040 
OM Group    23,400 a    721,890 
Omnova Solutions    32,200 a    182,896 
Penford    6,900    116,610 
PolyOne    80,400 a    705,912 
Pope & Talbot    6,100 b    38,003 
Quaker Chemical    6,700    125,290 
Quanex    33,050    1,423,464 
Rock-Tenn, Cl. A    25,800    411,510 
RTI International Metals    17,100 a,b    954,864 
Ryerson    21,000 b    567,000 
Schulman (A.)    24,700    565,383 
Schweitzer-Mauduit International    12,500    270,625 
Steel Technologies    11,500    223,560 
Texas Industries    20,800    1,104,480 
Tronox, Cl. B    32,100    422,757 
Wausau Paper    41,000    510,450 
 
 
22         

Common Stocks (continued)    Shares    Value ($) 
Materials (continued)         
Wellman    8,500 b    34,340 
        23,327,335 
Telecommunication Services—.2%         
Commonwealth Telephone Enterprises    19,400    643,304 
General Communication, Cl. A    33,900 a    417,648 
        1,060,952 
Utilities—4.7%         
Allete    24,700    1,169,545 
American States Water    13,950    497,318 
Atmos Energy    66,900    1,867,179 
Avista    40,500    924,615 
Cascade Natural Gas    9,400    198,246 
Central Vermont Public Service    9,500    175,560 
CH Energy Group    11,100 b    532,800 
Cleco    40,700    946,275 
El Paso Electric    36,300 a    731,808 
Energen    60,100    2,308,441 
Green Mountain Power    3,000    101,970 
Laclede Group    18,100    621,916 
New Jersey Resources    24,000    1,122,720 
Northwest Natural Gas    23,100 b    855,393 
Piedmont Natural Gas    59,800 b    1,453,140 
South Jersey Industries    23,700 b    649,143 
Southern Union    77,443    2,095,608 
Southwest Gas    33,500    1,049,890 
UGI    83,800    2,063,156 
UIL Holdings    12,300    692,367 
Unisource Energy    26,900    837,935 
        20,895,025 
Total Common Stocks         
(cost $332,433,624)        446,552,343 

    Principal     
Short-Term Investments—.0%    Amount ($)    Value ($) 
U.S. Treasury Bills;         
4.57%, 7/20/06         
(cost $149,638)    150,000 c    149,694 

The Portfolio 23

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Other Investment—.4%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $1,932,000)    1,932,000 d    1,932,000 
 
Investment of Cash Collateral         
for Securities Loaned—15.6%         
Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Plus Fund         
(cost $69,736,208)    69,736,208 d    69,736,208 
 
Total Investments (cost $404,251,470)    115.8%    518,370,245 
Liabilities, Less Cash and Receivables    (15.8%)    (70,787,138) 
Net Assets    100.0%    447,583,107 
 
a Non-income producing security.         
b All or a portion of these securities are on loan. At June 30, 2006, the total market value of the portfolio's securities 
on loan is $71,164,313 and the total market value of the collateral held by the portfolio is $73,901,903, consisting 
of $69,736,208 in cash collateral and in U.S. Government and agency securities valued at $4,165,695. 
c Partially held by a broker as collateral for open financial futures positions.     
d Investment in affiliated money market mutual fund.     

Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Industrial    17.6    Energy    9.0 
Information Technology    16.4    Materials    5.2 
Short-Term/Money        Utilities    4.7 
Market Investments    16.0    Consumer Staples    4.1 
Financial    15.8    Telecommunication Services    .2 
Consumer Discretionary    14.9    Futures    .0 
Health Care    11.9        115.8 
 
† Based on net assets.             
See notes to financial statements.             

24

STATEMENT OF FINANCIAL FUTURES 
June 30, 2006 (Unaudited) 

        Market Value        Unrealized 
        Covered        Appreciation 
    Contracts    by Contracts ($)    Expiration    at 6/30/2006 ($) 
Financial Futures Long                 
Russell 2000 E-mini    35    2,560,250    September 2006    134,260 
 
See notes to financial statements.                 

The Portfolio 25

STATEMENT OF ASSETS AND LIABILITIES 
June 30, 2006 (Unaudited) 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement         
of Investments (including securities on loan,     
valued at $71,164,313)—Note 1(b):         
Unaffiliated issuers    332,583,262    446,702,037 
Affiliated issuers    71,668,208    71,668,208 
Cash        241,988 
Dividends and interest receivable        441,001 
Receivable for shares of Beneficial Interest subscribed    102,505 
Receivable for futures variation margin—Note 4    35,350 
        519,191,089 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    217,417 
Liability for securities on loan—Note 1(b)        69,736,208 
Payable for investment securities purchased    1,111,780 
Payable for shares of Beneficial Interest redeemed    532,866 
Interest payable        9,711 
        71,607,982 
Net Assets ($)        447,583,107 
Composition of Net Assets ($):         
Paid-in capital        332,264,143 
Accumulated undistributed investment income—net    1,401,636 
Accumulated net realized gain (loss) on investments    (335,707) 
Accumulated net unrealized appreciation         
(depreciation) on investments (including $134,260     
net unrealized appreciation on financial futures)    114,253,035 
Net Assets ($)        447,583,107 
Shares Outstanding         
(unlimited number of $.001 par value shares of Beneficial Interest authorized)    25,629,996 
Net Asset Value, offering and redemption price per share ($)    17.46 
 
See notes to financial statements.         

26
  STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends (net of $989 foreign taxes withheld at source):     
Unaffiliated issuers    2,381,448 
Affiliated issuers    26,419 
Income from securities lending    130,842 
Interest    20,492 
Total Income    2,559,201 
Expenses:     
Investment advisory fee—Note 3(a)    802,471 
Distribution fees—Note 3(b)    573,194 
Interest expense—Note 2    17,311 
Loan commitment fees—Note 2    1,267 
Total Expenses    1,394,243 
Investment Income—Net    1,164,958 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    11,430,964 
Net realized gain (loss) on financial futures    20,685 
Net Realized Gain (Loss)    11,451,649 
Net unrealized appreciation (depreciation) on     
investments (including $139,010 net     
unrealized appreciation on financial futures)    17,519,725 
Net Realized and Unrealized Gain (Loss) on Investments    28,971,374 
Net Increase in Net Assets Resulting from Operations    30,136,332 
See notes to financial statements.     

The Portfolio 27

STATEMENT OF CHANGES IN NET ASSETS

See notes to financial statements.

28

FINANCIAL HIGHLIGHTS

The following table describe the performance for the fiscal periods indicated.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distri-butions.These figures have been derived from the portfolio's financial statements.

a From May 1, 2002 (commencement of operations) to December 31, 2002.
b Based on average shares outstanding at each month end.
c Not annualized.
See notes to financial statements.

The Portfolio 29

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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 Small Cap Stock Index 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 match the performance of the Standard & Poor's SmallCap 600 Index. The Dreyfus Corporation (the "Manager" or "Dreyfus ") serves as the portfolio's investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial"). 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 fund accounts separately for the assets, liabilities and operations of 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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price

30

that day, at the last sales 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. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price.

(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, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the portfolio may lend securities to qualified institutions. It is the portfolio's policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is

The Portfolio 31

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

The portfolio may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Manager, subject to the seller's agreement to repurchase and the portfolio's agreement to resell such securities at a mutually agreed upon price. Securities purchased subject to repurchase agreements are deposited with the portfolio's custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the fund will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the portfolio maintains the right to sell the underlying securities at market value and may claim any resulting loss against the seller.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as "affiliated" in the Act.

(d) 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 U.S. generally accepted accounting principles.

32

(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.

The tax character of distributions paid to shareholders during the fiscal year ended December 31, 2005 were as follows: ordinary income $101,131 and long-term capital gains $896,384. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the ‘Facility") to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. 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 Facility during the period ended June 30, 2006 was approximately $640,500, with a related weighted average annualized interest rate of 5.45% .

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

(a) Pursuant to an Investment Advisory Agreement (‘Agreement") with the Manager, the investment advisory fee is computed at the annual rate of .35% of the value of the portfolio's average daily net assets and is payable monthly. Under the terms of the Agreement, the Manager has agreed to pay all of the expenses of the portfolio except management fees, Rule 12b-1 distribution Plan fees, taxes, interest expenses, brokerage commissions, fees and expenses of independent counsel to the portfolio and the non-interested Board members, and

The Portfolio 33

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

extraordinary expenses. In addition, the Manager has also agreed to reduce its fee in an amount equal to the portfolio's allocated portion of the accrued fees and expenses of non-interested board members and fees and expenses of independent counsel to the portfolio.

(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1 under the Act, the portfolio pays the Distributor for distributing their shares, for servicing and/or maintaining shareholder accounts and for advertising and marketing.The Plan provides for payments to be made at an annual rate of .25% of the value of the portfolio's 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 June 30, 2006, the portfolio was charged $573,194 pursuant to the Plan.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $126,827 and Rule 12b-1 distribution plan fees $90,590.

(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 SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended June 30, 2006, amounted to $71,278,752 and $73,882,106, respectively.

34

The portfolio may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The portfolio is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the portfolio to "mark to market" on a daily basis, which reflects the change in the market value of the contracts at the close of each day's trading. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses. When the contracts are closed, the portfolio 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 June 30, 2006, are set forth in the Statement of Financial Futures.

At June 30, 2006, accumulated net unrealized appreciation on investments was $114,118,775, consisting of $128,672,702 gross unrealized appreciation and $14,553,927 gross unrealized depreciation.

At June 30, 2006, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

The Portfolio 35

NOTES

For More Information

Telephone 1-800-554-4611 or 516-338-3300

  Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
Attn: Investments Division

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0410SA0606

  Dreyfus
Investment Portfolios,
Technology Growth
Portfolio

SEMIANNUAL REPORT June 30, 2006

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    Understanding Your Portfolio's Expenses 
6    Comparing Your Portfolio's Expenses 
    With Those of Other Funds 
7    Statement of Investments 
10    Statement of Assets and Liabilities 
11    Statement of Operations 
12    Statement of Changes in Net Assets 
13    Financial Highlights 
15    Notes to Financial Statements 
    FOR MORE INFORMATION 
    Back Cover 

The Portfolio

Dreyfus Investment Portfolios, 
Technology Growth Portfolio 

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Investment Portfolios,Technology Growth Portfolio, covering the six-month period from January 1, 2006, through June 30, 2006.

Stock market gains over the first four months of 2006 were given back in May and June, when investors reacted negatively to suggestions that the U.S. Federal Reserve Board (the "Fed") and other central banks, in their fight against inflation, might raise short-term interest rates more than previously expected. In the judgment of our Chief Economist, Richard Hoey, the recent correction reflects an adjustment among leveraged investors toward lower risk levels as the U.S. economy moves into a more mature phase with milder rates of growth. In our view, corrections such as these generally are healthy mechanisms that help wring speculative excesses from the financial markets, potentially setting the stage for future rallies.

While a recession currently appears unlikely, a number of economic uncertainties remain. Indicators to watch in the months ahead include the outlook for inflation, the extent of softness in the U.S. housing market, the impact of slower economic growth on consumer spending, additional changes in interest rates from the Fed and other central banks, and the strength of the U.S. dollar relative to other major currencies. As always, we encourage you to discuss these and other investment-related issues with your financial advisor, who can help you prepare for the challenges and opportunities that lie ahead.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund's portfolio manager.

Thank you for your continued confidence and support.

Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 17, 2006

2

DISCUSSION OF PERFORMANCE

Mark Herskovitz, Primary Portfolio Manager

How did Dreyfus Investment Portfolios, Technology Growth Portfolio perform relative to its benchmarks?

For the six-month period ended June 30, 2006, the portfolio's Initial shares produced a total return of –2.98%, and its Service shares produced a total return of –3.03% .1 The portfolio's benchmarks, the Morgan Stanley High Technology 35 Index (the "MS High Tech 35 Index") and the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index"), produced total returns of –5.15% and 2.71%, respectively, over the same period.2,3

Although stocks, including those of technology companies, rallied over the first four months of the reporting period in an environment of robust economic growth, concerns arising in May and June regarding the effects of rising interest rates and intensifying inflationary pressures on future economic conditions led to a market correction that was particularly sharp among technology companies. The portfolio produced lower returns than the S&P 500 Index, mainly due to weakness among hardware manufacturers and software developers.

What is the portfolio's investment approach?

The portfolio seeks capital appreciation by investing at least 80% of its assets in growth companies of any size that we believe are leading producers or beneficiaries of technological innovation. These investments may include companies in the computer, Internet, semiconductor, electronics, communications, health care, biotechnology, medical services, computer software and hardware, electronic components and systems, network and cable broadcasting, telecommunications, defense and aerospace, and environmental sectors.

When evaluating investment opportunities, we first assess economic and market conditions in an attempt to identify trends that we believe are likely to drive demand within the various technology-related sectors.The more attractive sectors are overweighted. Second, we strive to identify the companies that are most likely to benefit from these overall trends. Typically, these companies are leaders in their market segments and are characterized by rapid earnings or revenue growth and dominant market shares. We conduct extensive fundamental

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

research to understand these companies' competitive advantages and to evaluate their ability to maintain their leadership positions over time.

This process enables us to identify the stocks of what we believe are leading technology companies for the portfolio. Many of those stocks are considered core holdings that we believe will lead their industry segments over the long term. We complement these positions with non-core holdings that we believe can provide above-average gains over a shorter time frame.

Although the portfolio looks for companies with the potential for strong earnings growth rates, some of the portfolio's investments may currently be experiencing losses. Moreover, the portfolio may invest in small-, mid- and large-cap securities in all available trading markets, including initial public offerings ("IPOs") and the aftermarket.

What other factors influenced the portfolio's performance?

Over the first four months of the year, investors generally favored growth-oriented companies and industry groups, including the technology sector, as the U.S. economy continued to grow. In early May, however, investors' attitudes toward risk appeared to change when investors became worried that interest rates might climb more than previously expected. At the same time, signs of economic weakness began to emerge and inflationary pressures seemed to intensify, as reflected by higher prices for energy, industrial commodities and precious metals.

The resulting "flight to quality" led to declines in a number of the portfolio's holdings. Semiconductor manufacturer Advanced Micro Devices, which had gained value after posting impressive gains in 2005, fell as demand for personal computers weakened and competitive pressures intensified. Similarly,Apple Computer gave back some of last year's gains as its products matured and its growth rate slowed. Juniper Networks, a networking equipment maker that we believe is well positioned for the growth of the Internet, also encountered product-cycle and competitive issues. Comverse Technologies, a provider of multimedia network-based software and systems, was hurt by regulatory questions related to stock option grants. Finally, the portfolio's software holdings lagged the averages due to its lack of exposure to Oracle and Intuit, which fared relatively well for the benchmark.

These disappointments were offset to a degree by better results in other areas. Longstanding holding Corning continued to benefit from

4

its dominant position as a provider of glass for flat-panel televisions. Global positioning systems specialist Garmin saw earnings rise after introducing a new generation of user-friendly consumer products. Akamai Technologies, a leader in distributed computing solutions, has prospered by helping customers expand the capacity of their networks to accommodate data-intensive video applications. Outsourcer Cognizant Technology Solutions has continued to achieve success in providing lower-cost labor from overseas markets to U.S. corporations. Finally, telecommunications billing management company Amdocs rebounded by capturing market share in a consolidating industry.

What is the portfolio's current strategy?

Although we currently are concerned that business conditions may weaken over the near term, we believe that the longer-term outlook for the technology sector remains bright. Accordingly, we have continued to invest in companies that, in our judgment, have the potential to establish or maintain leadership positions in growth segments of the U.S. and global economies.

July 17, 2006

    The portfolio's share price is likely to be more volatile than that of other portfolios that do 
    not concentrate in one sector.The technology sector involves special risks, such as the faster 
    rate of change and obsolescence of technological advances, and has been among the most 
    volatile sectors of the stock market. An investment in the portfolio should be considered only 
    as a supplement to a complete investment program. 
    The portfolio is only available as a funding vehicle under variable 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,Technology Growth 
    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. 
2    SOURCE: BLOOMBERG L.P. — Reflects reinvestment of net dividends and, where 
    applicable, capital gain distributions.The Morgan Stanley High Technology 35 Index is an 
    unmanaged, equal dollar-weighted index of 35 stocks from the electronics-based subsectors. 
3    SOURCE: LIPPER INC. — Reflects monthly reinvestment of dividends and, where 
    applicable, capital gain distributions.The Standard & Poor's 500 Composite Stock Price Index is 
    a widely accepted, unmanaged index of U.S. stock market performance. 

The Portfolio 5

UNDERSTANDING YOUR PORTFOLIO'S EXPENSES (Unaudited) 

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees,which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio's prospectus or talk to your financial adviser.

Review your portfolio's expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Investment Portfolios,Technology Growth Portfolio from January 1, 2006 to June 30, 2006. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment             
assuming actual returns for the six months ended June 30, 2006         
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $    4.01    $    5.23 
Ending value (after expenses)    $    970.20    $    969.70 

COMPARING YOUR PORTFOLIO'S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC's method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio's expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended June 30, 2006 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.11    $ 5.36 
Ending value (after expenses)    $1,020.73    $1,019.49 

† Expenses are equal to the portfolio's annualized expense ratio of .82% for Initial shares and 1.07% for Service shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6

STATEMENT OF INVESTMENTS
June 30, 2006 (Unaudited)
Common Stocks—92.4%    Shares    Value ($) 
Consumer Discretionary—3.0%         
Garmin    38,000 a    4,006,720 
Health Care—2.6%         
Amgen    22,200 b    1,448,106 
Genentech    24,500 b    2,004,100 
        3,452,206 
Information Technology—86.8%         
Accenture, Cl. A    149,300    4,228,176 
Adobe Systems    119,900 b    3,640,164 
Advanced Micro Devices    27,300 b    666,666 
Akamai Technologies    94,600 b    3,423,574 
Amdocs    115,600 b    4,230,960 
Apple Computer    65,900 b    3,764,208 
Automatic Data Processing    83,700    3,795,795 
Avid Technology    42,000 a,b    1,399,860 
Broadcom, Cl. A    113,850 b    3,421,193 
CheckFree    65,000 a,b    3,221,400 
Cisco Systems    169,600 b    3,312,288 
Citrix Systems    56,500 b    2,267,910 
Cognizant Technology Solutions, Cl. A    68,100 a,b    4,587,897 
Comverse Technology    144,700 a,b    2,860,719 
Corning    272,000 b    6,579,680 
Dell    77,500 b    1,891,775 
Digital Insight    28,500 b    977,265 
eBay    29,300 b    858,197 
Electronic Arts    47,300 b    2,035,792 
EMC/Massachusetts    194,500 b    2,133,665 
Google, Cl. A    6,900 b    2,893,377 
Hewlett-Packard    89,300    2,829,024 
Infosys Technologies, ADR    36,500    2,788,965 
Intel    101,700    1,927,215 

The Portfolio 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks (continued)    Shares    Value ($) 
Information Technology (continued)         
Juniper Networks    228,700 a,b    3,656,913 
Marvell Technology Group    45,900 b    2,034,747 
MEMC Electronic Materials    65,400 a,b    2,452,500 
Microsoft    232,600    5,419,580 
Motorola    145,200    2,925,780 
National Semiconductor    91,000    2,170,350 
NAVTEQ    21,700 b    969,556 
Network Appliance    104,800 b    3,699,440 
Qualcomm    89,800    3,598,286 
Red Hat    14,300 b    334,620 
Salesforce.com    38,100 a,b    1,015,746 
SAP, ADR    68,900    3,618,628 
Seagate Technology    45,900    1,039,176 
Sirf Technology Holdings    26,900 a,b    866,718 
Taiwan Semiconductor Manufacturing    42,465    76,598 
Taiwan Semiconductor         
Manufacturing, ADR    485,927    4,460,810 
Tellabs    49,000 b    652,190 
Texas Instruments    89,500    2,710,955 
Yahoo!    141,200 b    4,659,600 
        116,097,958 
Total Common Stocks         
(cost $102,404,029)        123,556,884 
 
Other Investment—3.0%         
Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $4,086,718)    4,086,718 c    4,086,718 

8
Investment of Cash Collateral         
for Securities Loaned—11.4%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Fund         
(cost $15,271,910)    15,271,910 c    15,271,910 
Total Investments (cost $121,762,657)    106.8%    142,915,512 
Liabilities, Less Cash and Receivables    (6.8%)    (9,132,046) 
Net Assets    100.0%    133,783,466 

ADR—American Depository Receipts
a All or a portion of these securities are on loan. At June 30, 2006, the total market value of the portfolio's securities
on loan is $14,685,845 and the total market value of the collateral held by the portfolio is $15,271,910.
b Non-income producing security.
c Investment in affiliated money market mutual fund.
Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Information Technology    86.8    Health Care    2.6 
Money Market Investments    14.4         
Consumer Discretionary    3.0        106.8 

† Based on net assets.
See notes to financial statements.

The Portfolio 9

  STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)
    Cost    Value 
Assets ($):         
Investments in securities—         
See Statement of Investments:         
(including securities on loan,         
valued at $14,685,845)—Note 1(c):         
Unaffiliated issuers    102,404,029    123,556,884 
Affiliated issuers    19,358,628    19,358,628 
Cash        124,873 
Cash denominated in foreign currencies    4,246,913    4,274,852 
Receivable for investment securities sold        2,918,277 
Dividends receivable        221,890 
Receivable for shares of Beneficial Interest subscribed    10,569 
Prepaid expenses        7,391 
        150,473,364 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    104,722 
Liabilities for securities on loan—Note 1(c)        15,271,910 
Payable for investment securities purchased    1,253,062 
Payable for shares of Beneficial Interest redeemed    35,502 
Accrued expenses        24,702 
        16,689,898 
Net Assets ($)        133,783,466 
Composition of Net Assets ($):         
Paid-in capital        241,140,903 
Accumulated investment (loss)—net        (8,636) 
Accumulated net realized gain (loss) on investments    (128,530,156) 
Accumulated net unrealized appreciation (depreciation)     
on investments and foreign currency transactions    21,181,355 
Net Assets ($)        133,783,466 

Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    72,180,640    61,602,826 
Shares Outstanding    8,223,202    7,125,809 
Net Asset Value Per Share ($)    8.78    8.65 

See notes to financial statements.

10

  STATEMENT OF OPERATIONS
Six Months Ended June 30, 2006 (Unaudited)
Investment Income ($):     
Income:     
Cash dividends (net of $42,997 foreign taxes withheld at source):     
Unaffiliated issuers    353,730 
Affiliated issuers    214,119 
Income from securities lending    56,048 
Total Income    623,897 
Expenses:     
Investment advisory fee—Note 3(a)    510,409 
Distribution fees—Note 3(b)    72,390 
Professional fees    25,215 
Custodian fees—Note 3(b)    16,598 
Prospectus and shareholders' reports    2,055 
Trustees' fees and expenses—Note 3(c)    1,911 
Shareholder servicing costs—Note 3(b)    517 
Miscellaneous    3,869 
Total Expenses    632,964 
Less—reduction in custody fees     
due to earnings credits—Note 1(c)    (431) 
Net Expenses    632,533 
Investment (Loss)—Net    (8,636) 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    2,662,630 
Net realized gain (loss) on forward currency exchange contracts    (1,823) 
Net Realized Gain (Loss)    2,660,807 
Net unrealized appreciation (depreciation)     
on investments and foreign currency transactions    (6,907,587) 
Net Realized and Unrealized Gain (Loss) on Investments    (4,246,780) 
Net (Decrease) in Net Assets Resulting from Operations    (4,255,416) 

See notes to financial statements.

The Portfolio 11

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    June 30, 2006    Year Ended 
    (Unaudited)    December 31, 2005 
Operations ($):         
Investment (loss)—net    (8,636)    (361,736) 
Net realized gain (loss) on investments    2,660,807    1,071,068 
Net unrealized appreciation         
(depreciation) on investments    (6,907,587)    3,580,187 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    (4,255,416)    4,289,519 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    3,344,364    5,340,546 
Service shares    14,146,888    18,471,720 
Cost of shares redeemed:         
Initial shares    (7,804,010)    (23,038,519) 
Service shares    (2,722,470)    (4,433,718) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    6,964,772    (3,659,971) 
Total Increase (Decrease) in Net Assets    2,709,356    629,548 
Net Assets ($):         
Beginning of Period    131,074,110    130,444,562 
End of Period    133,783,466    131,074,110 
Investment (loss)—net    (8,636)    — 
Capital Share Transactions (Shares):         
Initial Shares         
Shares sold    356,741    631,081 
Shares redeemed    (839,416)    (2,756,505) 
Net Increase (Decrease) in Shares Outstanding    (482,675)    (2,125,424) 
Service Shares         
Shares sold    1,556,810    2,219,052 
Shares redeemed    (296,325)    (537,618) 
Net Increase (Decrease) in Shares Outstanding    1,260,485    1,681,434 

See notes to financial statements.

12

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.

a Based on average shares outstanding at each month end.
b Amount represents less than $.01 per share.
c Not annualized.
See notes to financial statements.

The Portfolio 13

FINANCIAL HIGHLIGHTS (continued)

a Based on average shares outstanding at each month end.
b Not annualized.
See notes to financial statements.

14

NOTES TO FINANCIAL STATEMENTS (Unaudited)

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 Technology Growth 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 appreciation. The Dreyfus Corporation (the "Manager" or "Dreyfus") serves as the portfolio's investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation ("Mellon Financial").

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. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Portfolio 15

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio's maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale 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. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR's and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. 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.

16

(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 market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding 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 or losses arise from changes in the value of assets and liabilities other than investments in securities resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the portfolio may lend securities to qualified institutions. It is the portfolio's policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Cash collateral is invested in certain money

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

market mutual funds managed by the Manager.The portfolio is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as "affiliated" in the Act.

(e) 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 U.S. generally accepted accounting principles.

(f) 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.

The portfolio has an unused capital loss carryover of $129,065,164 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $8,991,103 of the carryover expires in fiscal 2008, $68,467,967 expires in fiscal 2009, $40,345,577 expires in fiscal 2010, $7,722,694 expires in fiscal 2011 and $3,537,823 expires in fiscal 2012.

18

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 borrowing. During the period ended June 30, 2006, 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 the value of the portfolio's average daily net assets and is payable monthly.

(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 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 June 30, 2006, Service shares were charged $72,390 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 June 30, 2006, the portfolio was charged $211 pursuant to the transfer agency agreement.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The portfolio compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement for providing custodial services for the portfolio. During the period ended June 30, 2006, the portfolio was charged $16,598 pursuant to the custody agreement.

During the period ended June 30, 2006, the portfolio was charged $1,926 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $80,461, Rule 12b-1 distribution plan fees $12,128, custodian fees $10,141, chief compliance officer fees $1,926 and transfer agency per account fees $66.

(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 SEC, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and forward currency exchange contracts, during the period ended June 30, 2006, amounted to $63,368,256 and $56,201,574, respectively.

The portfolio may enter 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

20

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 counter party nonperfor-mance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract.At June 30, 2006, there were no forward currency exchange contracts outstanding.

At June 30, 2006, accumulated net unrealized appreciation on investments was $21,152,855, consisting of $24,675,357 gross unrealized appreciation and $3,522,502 gross unrealized depreciation.

At June 30, 2006, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

The Portfolio 21

For More Information

  Telephone 1-800-554-4611 or 516-338-3300
  Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
Attn: Investments Division

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The portfolio's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC's website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

© 2006 Dreyfus Service Corporation 0175SA0606

Item 2.    Code of Ethics. 
    Not applicable. 
Item 3.    Audit Committee Financial Expert. 
    Not applicable. 
Item 4.    Principal Accountant Fees and Services. 
    Not applicable. 
Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. 
Item 9.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 10.    Submission of Matters to a Vote of Security Holders. 

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.

-2-

Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

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  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Investment Portfolios

By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    President 
 
Date:    August 17, 2006 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    Chief Executive Officer 
 
Date:    August 17, 2006 

By:    /s/ James Windels 
    James Windels
    Chief Financial Officer 
 
Date:    August 17, 2006 

  EXHIBIT INDEX

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)

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