N-CSR 1 form-172.htm ANNUAL REPORT form-172
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM N-CSR 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES 
Investment Company Act file number 811-08673 
DREYFUS INVESTMENT PORTFOLIOS 
(Exact name of Registrant as specified in charter) 

c/o The Dreyfus Corporation 
200 Park Avenue 
New York, New York 10166 
(Address of principal executive offices) (Zip code) 
 
Mark N. Jacobs, Esq. 
200 Park Avenue 
New York, New York 10166 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: (212) 922-6000 

Date of fiscal year end:    12/31 
Date of reporting period:    12/31/05 

        FORM N-CSR 
Item 1.    Reports to Stockholders.     

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
24    Statement of Financial Futures 
24    Statement of Options Written 
25    Statement of Assets and Liabilities 
26    Statement of Operations 
27    Statement of Changes in Net Assets 
29    Financial Highlights 
31    Notes to Financial Statements 
44    Report of Independent Registered 
    Public Accounting Firm 
45    Important Tax Information 
46    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
52    Board Members Information 
54    Officers of the Fund 
 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios, 
Core Bond Portfolio 

The Portfolio

LETTER FROM THE CHAIRMAN

  Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Core Bond Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the primary portfolio manager, Kent Wosepka.

Most sectors of the taxable fixed-income marketplace shrugged off bad news and responded to more positive factors in 2005. Although short-term interest rates rose by 200 basis points due to eight consecutive increases by the Federal Reserve Board during the year, the yield of the 10-year U.S. Treasury security ended the year only 17 basis points higher than where it began. Analysts generally attribute the bond market’s resilience to low inflation and robust investor demand, especially from overseas investors.

We expect the U.S. economy to continue its moderate expansion in 2006, while inflation should stay low and investor demand for income-producing securities should remain high. Risks in the new year include uncertainty regarding Fed policy under a new chairman and the possibility of continued turmoil in the automotive sector, including some of the corporate bond market’s largest issuers.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

2

DISCUSSION OF PERFORMANCE

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

For the 12-month period ended December 31, 2005, the portfolio’s Initial shares achieved a total return of 2.04%, and its Service shares achieved a total return of 2.11% .1 The portfolio produced aggregate income dividends of $0.49 per share and $0.48 per share for its Initial and Service shares, respectively. In comparison, the Lehman Brothers U.S. Aggregate Index (the “Index”), the portfolio’s benchmark index, produced a total return of 2.43% for the same period.2

Although low inflation and robust investor demand generally supported bond prices during 2005, rising short-term interest rates limited their returns. The portfolio’s results were slightly lower than the Index, as weakness early in the year was subsequently offset by better performance from corporate bonds, foreign securities and Treasury Inflation Protected Securities (“TIPS”).

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?

In its ongoing effort to forestall potential inflationary pressures, the Federal Reserve Board (the “Fed”) raised the overnight federal funds

The Portfolio 3

  DISCUSSION OF PERFORMANCE (continued)

rate eight consecutive times during the reporting period, driving it from 2.25% to 4.25% . Longer-term bond prices held up surprisingly well, despite historical trends, with investors expressing confidence in the Fed’s inflation-fighting ability. In addition, prices of U.S. government securities were supported by robust demand from overseas investors.

Although the portfolio benefited from this trend for much of the year by adopting a “barbell” strategy that focused on securities at both ends of the portfolio’s maturity range, an emphasis on longer-term maturities in January 2005 held back relative performance for the overall one-year period. In addition, we may have removed the barbell strategy too soon, limiting the portfolio’s participation when yield differences continued to narrow later in the reporting period.

The portfolio enjoyed relatively robust results from bonds from non-U.S. issuers, especially the emerging markets of Argentina, Brazil and Russia.These nations benefited from greater fiscal and political stability as well as rising demand for the commodities, such as crude oil, they produce.The portfolio also received good results from German bonds, where interest rates have remained low in a sluggish economy, helping to support bond prices.

U.S. corporate bonds experienced heightened volatility compared to other market sectors, with improving business conditions for many issuers offset by turmoil in the automotive sector. Most significantly, General Motors and Ford Motor Company reported disappointing financial results in the spring, prompting the major bond rating agencies to downgrade their debt to the high-yield category. Nonetheless, the portfolio’s performance benefited from its corporate bond holdings, largely due to the success of our security selection strategy. The portfolio held relatively few automotive bonds when the automakers’ financial problems became known, and we subsequently established positions in shorter-maturity securities from General Motors’ more financially sound financing subsidiaries, enabling the portfolio to participate in the sector’s rebound during the summer.

Finally, the portfolio received strong contributions from TIPS, which benefited from increases in the Consumer Price Index stemming from higher energy prices.We also established positions in municipal bonds

4

backed by the states’ settlements with U.S. tobacco companies, which at times during the year offered higher yields than comparable taxable bonds. On the other hand, the portfolio’s underweighted position in mortgage-backed securities prevented it from participating fully in the sector’s relatively attractive returns.

What is the portfolio’s current strategy?

As of year-end,most of the higher-yielding bond market sectors appeared richly valued to us, suggesting that risks currently outweigh potential rewards in these areas.Accordingly, we have adopted a more conservative investment posture, reducing the portfolio’s exposure to lower-rated, longer-term corporate bonds, focusing instead on shorter-term securities that we believe are likely to receive credit-rating upgrades.We also have attempted to add value through positions in commercial mortgage-backed securities and asset-backed securities, which we currently regard as more attractive than U.S. Treasuries. In our view, these are prudent strategies as the economy moves to the next phase of the cycle.

January 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

PORTFOLIO PERFORMANCE

Average Annual Total Returns    as of 12/31/05         
 
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    5/1/00    2.04%    5.00%    5.93% 
Service shares    5/1/00    2.11%    4.95%    5.89% 
 
The data for Service shares primarily represents the results of Initial shares for the period prior to December 31, 
2000 (inception date of Service shares). Actual Service shares’ average annual total return and hypothetical 
growth results would have been lower. See notes below.             
† Source: Lipper Inc.                 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in 
connection with investing in variable insurance contracts which will reduce returns.     
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, 
Core Bond Portfolio on 5/1/00 (inception date of Initial shares) to a $10,000 investment made in the Lehman 
Brothers U.S. Aggregate Index (the “Index”) on that date.             

6

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Index is 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 Index does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 3.84    $ 4.04 
Ending value (after expenses)    $1,004.00    $1,003.80 

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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 3.87    $ 4.08 
Ending value (after expenses)    $1,021.37    $1,021.17 
 
† Expenses are equal to the portfolio’s annualized expense ratio of .76% for Initial shares and .80% for Service shares, 
multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 

8
STATEMENT OF INVESTMENTS 
December 31, 2005 

    Principal         
Bonds and Notes—116.7%    Amount a    Value ($) 
Aerospace & Defense—.1%             
L-3 Communications,             
Conv. Bonds, 3%, 2035    60,000    b    59,625 
Agricultural—.5%             
Altria:             
Debs., 7.75%, 2027    160,000    c    190,479 
Notes, 7%, 2013    180,000        197,263 
            387,742 
Airlines—.0%             
USAir,             
Enhanced Equipment Notes, Ser. C, 8.93%, 2009    42,614    d,e    4 
Asset-Backed Ctfs./Automobile Receivables—.8%         
Ford Credit Auto Owner Trust,             
Ser. 2004-A, Cl. C, 4.19%, 2009    160,000        157,775 
Ser. 2005-B, Cl. B, 4.64%, 2010    185,000        183,242 
WFS Financial Owner Trust,             
Ser. 2005-2, Cl. B, 4.57%, 2012    250,000        248,170 
            589,187 
Asset-Backed Ctfs./Credit Cards—1.0%             
Capital One Multi-Asset Execution Trust,             
Ser. 2004-C1, Cl. C1, 3.4%, 2009    160,000        157,460 
MBNA Master Credit Card Note Trust,             
Ser. 2002-C1, Cl. C1, 6.8%, 2014    525,000        566,165 
            723,625 
Asset-Backed Ctfs./Home Equity Loans—11.2%             
Accredited Mortgage Loan Trust:             
Ser. 2005-1, Cl. A2A, 4.479%, 2035    116,728    f    116,815 
Ser. 2005-2, Cl. A2A, 4.479%, 2035    156,381    f    156,461 
Ser. 2005-3, Cl. A2A, 4.479%, 2035    314,451    f    314,668 
Ameriquest Mortgage Securities,             
Ser. 2004-FR1, Cl. A3, 2.65%, 2034    2,955        2,947 
Bayview Financial Acquisition Trust,             
Ser. 2005-B, Cl. 1A6, 5.208%, 2039    235,000        229,795 
Bear Stearns Asset Backed Securities,             
Ser. 2005-TC1, Cl. A1, 4.489%, 2035    95,108    f    95,101 
CS First Boston Mortgage Securities,             
Ser. 2002-HE4, Cl. MF1, 6.94%, 2032    140,000        141,536 
Citigroup Mortgage Loan Trust:             
Ser. 2005-HE1, Cl. A3A, 4.469%, 2035    103,789    f    103,804 
Ser. 2005-OPT3, Cl. A1A, 4.469%, 2035    357,700    f    357,775 

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)
    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Asset-Backed Ctfs./Home Equity Loans (continued)         
Conseco Finance Securitization,             
Ser. 2000-E, Cl. A5, 8.02%, 2031    99,856        103,257 
Credit-Based Asset Servicing and Securitization:         
Ser. 2005-CB4, Cl. AV1, 4.479%, 2035    111,260    f    111,329 
Ser. 2005-CB8, Cl. AF5, 5.653%, 2035    335,000    f    337,251 
First Franklin Mortgage Loan Asset-Backed Ctfs.,         
Ser. 2005-FFH3, Cl. 2A1, 4.509%, 2035    298,551    f    298,774 
Fremont Home Loan Trust,             
Ser. 2005-1, Cl. 2A1, 4.479%, 2035    67,957    f    68,019 
Home Equity Asset Trust:             
Ser. 2005-8, Cl. M4, 4.959%, 2036    185,000    f    184,562 
Ser. 2005-8, Cl. M5, 4.989%, 2036    240,000    f    239,176 
Ser. 2005-8, Cl. M7, 5.499%, 2036    125,000    f    123,915 
Mastr Asset Backed Securities Trust,             
Ser. 2005-WMC1, Cl. A3, 4.479%, 2035    86,734    f    86,747 
Merrill Lynch Mortgage Investors,             
Ser. 2005-WMC2, Cl. A2A, 4.469%, 2036    67,577    f    67,585 
Morgan Stanley ABS Capital I:             
Ser. 2005-NC2, Cl. A3A, 4.459%, 2035    369,979    f    370,252 
Ser. 2005-WMC2, Cl. A2A, 4.459%, 2035    152,311    f    152,427 
Ser. 2005-WMC3, Cl. A2A, 4.469%, 2035    110,527    f    110,570 
Ser. 2005-WMC6, Cl. A2A, 4.489%, 2035    286,251    f    286,453 
Park Place Securities:             
Ser. 2005-WHQ1, Cl. A3A, 4.489%, 2035    105,222    f    105,304 
Ser. 2005-WHQ2, Cl. A2A, 4.479%, 2035    173,315    f    173,450 
Popular ABS Mortgage Pass-Through Trust,             
Ser. 2005-6, Cl. M1, 5.91%, 2036    205,000        205,000 
Residential Asset Mortgage Products:             
Ser. 2004-RS8, Cl. AI2, 3.81%, 2026    134,896        134,423 
Ser. 2004-RS12, Cl. AI6, 4.547%, 2034    180,000        173,778 
Ser. 2004-RS12, Cl. AII1, 4.509%, 2027    269,968    f    270,218 
Ser. 2005-EFC5, Cl. M1, 4.779%, 2035    220,000    f    219,510 
Ser. 2005-RS2, Cl. AII1, 4.489%, 2035    144,265    f    144,405 
Ser. 2005-RS2, Cl. M2, 4.859%, 2035    210,000    f    211,953 
Ser. 2005-RS2, Cl. M3, 4.929%, 2035    70,000    f    70,514 
Ser. 2005-RS3, Cl. AIA1, 4.479%, 2035    187,644    f    187,790 
Ser. 2005-RZ1, Cl. A1, 4.479%, 2034    134,642        134,754 
Residential Asset Securities:             
Ser. 2004-KS6, Cl. AI1, 4.519%, 2022    33,867    f    33,889 
Ser. 2005-EMX1, Cl. AI1, 4.479%, 2035    106,523    f    106,611 
Ser. 2005-EMX3, Cl. M1, 4.809%, 2035    215,000    f    215,220 
Ser. 2005-EMX3, Cl. M2, 4.829%, 2035    240,000    f    240,147 
 
10             

    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Asset-Backed Ctfs./Home Equity Loans (continued)         
Saxon Asset Securities Trust,             
Ser. 2004-2, Cl. AF2, 4.15%, 2035    820,000        813,043 
Soundview Home Equity Loan Trust,             
Ser. 2005-B, Cl. M2, 5.725%, 2035    150,000        149,387 
Specialty Underwriting & Residential Finance:         
Ser. 2004-BC4, Cl. A2A, 4.529%, 2035    179,679    f    179,822 
Ser. 2005-BC1, Cl. A1A, 4.489%, 2035    93,507    f    93,578 
Ser. 2005-BC2, Cl. A2A, 4.479%, 2035    115,326    f    115,407 
            8,037,422 
Asset-Backed Ctfs./Manufactured Housing—.8%         
Green Tree Financial,             
Ser. 1994-7, Cl. M1, 9.25%, 2020    299,386        314,690 
Origen Manufactured Housing:             
Ser. 2005-B, Cl. A2, 5.247%, 2018    150,000        150,315 
Ser. 2005-B, Cl. M2, 6.48%, 2037    105,000        105,726 
            570,731 
Auto Manufacturing—.7%             
DaimlerChrysler:             
Notes, 4.875%, 2010    110,000        107,508 
Notes, Ser. E, 4.78%, 2008    365,000    f    365,491 
            472,999 
Banking—4.1%             
Chevy Chase Bank,             
Sub. Notes, 6.875%, 2013    140,000        144,900 
Chuo Mitsui Trust & Banking,             
Sub. Notes, 5.506%, 2049    300,000    b    291,223 
City National Bank of Beverly Hills California,         
Sub. Notes, 6.75%, 2011    250,000        270,250 
Colonial Bank of Montgomery Alabama,             
Sub. Notes, 6.375%, 2015    250,000        257,536 
Crestar Capital Trust I,             
Capital Securities, 8.16%, 2026    340,000        361,623 
Hibernia,             
Sub. Notes, 5.35%, 2014    165,000        163,152 
Industrial Bank of Korea,             
Sub. Notes, 4%, 2014    110,000    b    105,543 
Popular North America,             
Notes, 4.83%, 2007    180,000    f    180,039 
Sovereign Bancorp,             
Sr. Notes, 4.69%, 2009    255,000    b,f    255,261 

The Portfolio 11

  STATEMENT OF INVESTMENTS (continued)
    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
Banking (continued)         
Sumitomo Mitsui Banking,         
Notes, 5.625%, 2049    210,000 b    209,603 
Wells Fargo Capital I,         
Capital Securities, 7.96%, 2026    165,000    175,053 
Zions Bancorp:         
Sr. Notes, 2.7%, 2006    380,000    377,554 
Sub. Notes, 6%, 2015    185,000    193,688 
        2,985,425 
Building & Construction—.8%         
American Standard,         
Sr. Notes, 7.375%, 2008    205,000    213,669 
D.R. Horton,         
Sr. Notes, 5.875%, 2013    180,000    174,115 
Schuler Homes,         
Notes, 10.5%, 2011    170,000 c    183,600 
        571,384 
Chemicals—1.4%         
ICI Wilmington,         
Notes, 5.625%, 2013    145,000    144,556 
International Flavors & Fragrance,         
Notes, 6.45%, 2006    400,000    401,946 
Lubrizol,         
Debs., 6.5%, 2034    95,000    99,513 
RPM International:         
Bonds, 6.25%, 2013    180,000    181,742 
Sr. Notes, 4.45%, 2009    220,000    211,132 
        1,038,889 
Commercial & Professional Services—1.0%     
Aramark Services:         
Sr. Notes, 6.375%, 2008    250,000    255,822 
Sr. Notes, 7%, 2007    240,000    245,443 
Erac USA Finance,         
Notes, 7.95%, 2009    100,000 b    109,992 
R.R. Donnelley & Sons,         
Notes, 5%, 2006    105,000    104,425 
        715,682 

12
    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Commercial Mortgage Pass-Through Ctfs.—2.3%         
Bayview Commercial Asset Trust:             
Ser. 2005-3A, Cl. A2, 4.779%, 2035    267,071    b,f    267,071 
Ser. 2005-3A, Cl. B3, 7.379%, 2035    98,915    b,f    98,915 
Bear Stearns Commercial Mortgage Securities:             
Ser. 1998-C1, Cl. A2, 6.44%, 2030    185,000        190,406 
Ser. 2003-T12, Cl. A3, 4.24%, 2039    345,000        332,995 
Ser. 2005-T18, Cl. A2, 4.556%, 2042    185,000        181,793 
Calwest Industrial Trust,             
Ser. 2002-CALW, Cl. A, 6.127%, 2017    190,000    b    200,089 
Crown Castle Towers,             
Ser. 2005-1A, Cl. D, 5.612%, 2035    170,000    b    165,687 
DLJ Commercial Mortgage,             
Ser. 1998-CF2, Cl. A1B, 6.24%, 2031    150,000        154,692 
Morgan Stanley Capital I,             
Ser. 1999-RM1, Cl. A2, 6.71%, 2031    75,266        78,139 
            1,669,787 
Diversified Financial Services—8.6%             
Amvescap:             
Notes, 4.5%, 2009    330,000        324,094 
Notes, 5.375%, 2014    100,000        98,204 
Sr. Notes, 5.9%, 2007    135,000        135,497 
CIT,             
Sr. Notes, 4.49%, 2008    275,000    f    275,408 
Capital One Bank,             
Sub. Notes, 6.5%, 2013    165,000        175,561 
Countrywide Home Loans:             
Medium-Term Notes, Ser. J, 5.5%, 2006    145,000        145,612 
Medium-Term Notes, Ser. L, 2.875%, 2007    400,000        390,828 
Notes, 4.125%, 2009    190,000        183,171 
Fondo LatinoAmericano de Reservas,             
Notes, 3%, 2006    440,000    b    435,463 
Ford Motor Credit:             
Global Landmark Securities, 5.625%, 2008    200,000    c    175,597 
Sr. Notes, 7.2%, 2007    365,000        347,577 
GMAC,             
Notes, 5.05%, 2007    375,000    f    356,390 

The Portfolio 13

STATEMENT OF INVESTMENTS (continued)
    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
Diversified Financial Services (continued)     
Glencore Funding,         
Notes, 6%, 2014    380,000 b    357,975 
HSBC Finance,         
Sr. Notes, 4.841%, 2012    415,000 f    415,712 
ILFC E-Capital Trust I,         
Bonds, 5.9%, 2065    225,000 b    226,124 
Jefferies,         
Sr. Notes, 7.75%, 2012    100,000    111,337 
Leucadia National,         
Sr. Notes, 7%, 2013    145,000    145,000 
MBNA Capital,         
Capital Securities, Ser. A, 8.278%, 2026    115,000    122,472 
Mizuho JGB Investment,         
Bonds, 9.87%, 2049    130,000 b,f    143,852 
Pemex Finance,         
Bonds, 9.69%, 2009    375,000    405,651 
Residential Capital:         
Sr. Notes, 5.896%, 2007    275,000 f    275,797 
Sr. Notes, 6.375%, 2010    275,000    279,702 
St. George Funding,         
Bonds, 8.485%, 2049    275,000 b    299,958 
Sumitomo Bank Treasury,         
Bonds, 9.4%, 2049    360,000 b    394,464 
        6,221,446 
Diversified Metals & Mining—1.0%         
Falconbridge:         
Bonds, 5.375%, 2015    35,000    33,806 
Notes, 6%, 2015    220,000    222,554 
International Steel,         
Sr. Notes, 6.5%, 2014    160,000    160,800 
Ispat Inland ULC,         
Secured Notes, 9.75%, 2014    50,000    56,875 
Southern Peru Copper,         
Notes, 7.5%, 2035    215,000 b    214,761 
        688,796 
Electric Utilities—3.7%         
Ameren,         
Bonds, 4.263%, 2007    305,000    300,729 
American Electric Power,         
Sr. Notes, 4.709%, 2007    145,000    144,158 
 
14         

    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Electric Utilities (continued)             
Cinergy,             
Debs., 6.53%, 2008    135,000        140,059 
Consumers Energy,             
First Mortgage Bonds, Ser. B, 5.375%, 2013    310,000        308,205 
Dominion Resources,             
Sr. Notes, Ser. D, 4.3%, 2007    370,000        370,347 
FPL Energy National Wind,             
Notes, 5.608%, 2024    97,743    b    97,656 
FPL Group Capital,             
Debs., Ser. B, 5.551%, 2008    290,000        292,659 
FirstEnergy,             
Sr. Notes, Ser. B, 6.45%, 2011    350,000        371,452 
Mirant,             
Sr. Notes, 7.375%, 2013    85,000    b    86,381 
Sierra Pacific Power,             
Mortgage Notes, 6.25%, 2012    100,000        102,000 
TXU:             
Sr. Notes, Ser. J, 6.375%, 2006    185,000        186,867 
Sr. Notes, Ser. O, 4.8%, 2009    305,000        294,896 
            2,695,409 
Electrical & Electronics—.2%             
Thomas & Betts,             
Notes, 6.5%, 2006    160,000        160,035 
Entertainment—.4%             
Carnival,             
Notes, 7.3%, 2007    175,000        180,254 
Mohegan Tribal Gaming Authority,             
Sr. Notes, 6.125%, 2013    125,000        123,438 
            303,692 
Environmental Control—.4%             
Waste Management:             
Sr. Notes, 6.5%, 2008    130,000        134,893 
Sr. Notes, 7%, 2028    125,000        141,252 
            276,145 
Food & Beverages—1.2%             
Bavaria,             
Sr. Notes, 8.875%, 2010    350,000    b    381,938 
H.J. Heinz,             
Notes, 6.428%, 2008    225,000    b    231,286 

The Portfolio 15

  STATEMENT OF INVESTMENTS (continued)
        Principal     
Bonds and Notes (continued)        Amount a    Value ($) 
Food & Beverages (continued)             
Safeway,             
Sr. Notes, 4.125%, 2008        130,000    125,964 
Stater Brothers,             
Sr. Notes, 8.125%, 2012        135,000    134,325 
            873,513 
Foreign/Governmental—2.7%             
Argentina Bonos,             
Bonds, 4.005%, 2012        690,000 f    543,720 
Banco Nacional de Desenvolvimento             
Economico e Social,             
Notes, 5.727%, 2008        385,000 f    385,000 
Export-Import Bank of Korea,             
Sr. Notes, 4.5%, 2009        110,000    108,142 
Mexican Bonos,             
Bonds, Ser. M, 9%, 2011    MXN    2,220,000    218,113 
Republic of Brazil,             
Bonds, 12.5%, 2016    BRL    985,000    423,352 
Russian Federation:             
Notes, 10%, 2007        155,000    166,083 
Notes, 12.75%, 2028        60,000    110,229 
            1,954,639 
Gaming & Lodging—.2%             
MGM Mirage,             
Sr. Notes, 6%, 2009        135,000    134,831 
Health Care—1.0%             
Baxter International,             
Sr. Notes, 5.196%, 2008        200,000    200,688 
Coventry Health Care,             
Sr. Notes, 5.875%, 2012        130,000    131,950 
Medco Health Solutions,             
Sr. Notes, 7.25%, 2013        368,000    404,851 
            737,489 
Manufacturing—.4%             
Bombardier:             
Notes, 6.3%, 2014        220,000 b,c    193,600 
Notes, 7.45%, 2034        135,000 b    114,750 
            308,350 

16
    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Media—1.6%             
Clear Channel Communications:             
Notes, 4.25%, 2009    180,000        173,159 
Notes, 4.5%, 2010    215,000        205,812 
Liberty Media,             
Sr. Notes, 5.991%, 2006    370,000    f    372,612 
Media General,             
Notes, 6.95%, 2006    175,000        176,408 
Univision Communications,             
Sr. Notes, 2.875%, 2006    200,000        196,811 
            1,124,802 
Oil & Gas—1.6%             
Colorado Interstate Gas,             
Sr. Notes, 5.95%, 2015    100,000        97,088 
Enterprise Products Operating,             
Sr. Notes, Ser. B, 4.625%, 2009    380,000        370,945 
Oneok,             
Sr. Notes, 5.51%, 2008    250,000        251,113 
PEMEX Project Funding Master Trust,         
Notes, 7.375%, 2014    285,000        317,348 
Sempra Energy,             
Sr. Notes, 4.621%, 2007    130,000        129,121 
            1,165,615 
Packaging & Containers—.5%             
Crown Americas Capital:             
Sr. Notes, 7.625%, 2013    120,000    b    125,100 
Sr. Notes, 7.75%, 2015    60,000    b    62,400 
Sealed Air,             
Bonds, 6.875%, 2033    170,000    b    176,445 
            363,945 
Paper & Forest Products—1.1%             
Celulosa Arauco y Constitucion,             
Notes, 5.625%, 2015    180,000        179,070 
Georgia-Pacific,             
Sr. Notes, 8%, 2014    165,000        158,400 
Sappi Papier,             
Notes, 6.75%, 2012    315,000    b    301,212 

The Portfolio 17

STATEMENT OF INVESTMENTS (continued)
    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
Paper & Forest Products (continued)         
Temple-Inland,         
Bonds, 6.625%, 2018    150,000 c    154,859 
        793,541 
Pipelines—.9%         
Plains All American Pipeline Finance:         
Sr. Notes, 5.625%, 2013    375,000    380,288 
Sr. Notes, 5.875%, 2016    250,000    255,728 
        636,016 
Property-Casualty Insurance—1.3%         
ACE Capital Trust II,         
Capital Securities, 9.7%, 2030    210,000    293,027 
AON,         
Capital Securities, 8.205%, 2027    150,000    178,661 
Assurant,         
Sr. Notes, 6.75%, 2034    85,000    92,681 
Nippon Life Insurance,         
Notes, 4.875%, 2010    250,000 b    246,385 
Phoenix Cos.,         
Bonds, 6.675%, 2008    100,000    100,986 
        911,740 
Real Estate Investment Trusts—3.4%         
Archstone-Smith Operating Trust:         
Notes, 3%, 2008    140,000    133,176 
Notes, 5.25%, 2015    60,000    59,278 
Arden Realty,         
Notes, 5.25%, 2015    215,000    217,635 
Boston Properties,         
Sr. Notes, 6.25%, 2013    90,000    94,549 
Commercial Net Lease Realty,         
Notes, 6.15%, 2015    150,000    152,517 
Duke Realty:         
Notes, 3.5%, 2007    125,000    121,666 
Notes, 4.625%, 2013    140,000    133,775 
Sr. Notes, 5.25%, 2010    105,000    105,289 
EOP Operating:         
Bonds, 7.875%, 2031    135,000    159,782 
Sr. Notes, 7%, 2011    75,000    80,368 
ERP Operating:         
Notes, 4.75%, 2009    75,000    74,188 
Notes, 5.125%, 2016    100,000    96,505 
 
18         

    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Real Estate Investment Trusts (continued)         
Healthcare Realty Trust,             
Sr. Notes, 5.125%, 2014    360,000        341,346 
Mack-Cali Realty,             
Notes, 5.05%, 2010    190,000        188,018 
Regency Centers,             
Sr. Notes, 5.25%, 2015    200,000        196,707 
Simon Property:             
Notes, 4.6%, 2010    160,000        156,131 
Notes, 4.875%, 2010    105,000        103,649 
            2,414,579 
Residential Mortgage Pass-Through Ctfs.—4.2%         
Citigroup Mortgage Loan Trust:             
Ser. 2005-WF1, Cl. A5, 5.01%, 2035    205,000        199,399 
Ser. 2005-WF2, Cl. AF2, 4.922%, 2035    160,651        160,147 
First Horizon Alternative Mortgage Securities I,         
Ser. 2004-FA1, Cl. A1, 6.25%, 2034    1,031,871        1,045,020 
Impac CMB Trust:             
Ser. 2005-8, Cl. 2M2, 5.129%, 2036    194,485    f    194,275 
Ser. 2005-8, Cl. 2M3, 5.879%, 2036    149,604    f    144,118 
J.P. Morgan Mortgage Trust,             
Ser. 2005-A1, Cl. 5A1, 4.485%, 2035    113,764    f    110,648 
Nomura Asset Acceptance,             
Ser. 2005-AP2, Cl. A5, 4.976%, 2035    225,000        217,904 
Ser. 2005-WF1, Cl. 2A5, 5.159%, 2035    170,000        165,888 
Structured Adjustable Rate Mortgage Loan Trust,         
Ser. 2005-8XS, Cl. A1, 4.479%, 2035    166,582    f    166,582 
Washington Mutual,             
Ser. 2005-AR4, Cl. A4B, 4.679%, 2035    450,000        440,719 
Wells Fargo Mortgage Backed Securities Trust,         
Ser. 2003-1, Cl. 2A9, 5.75%, 2033    220,000        220,092 
            3,064,792 
Retail—.2%             
May Department Stores:             
Notes, 3.95%, 2007    70,000        68,858 
Notes, 5.95%, 2008    100,000        102,268 
            171,126 
State Government—2.6%             
New Jersey Tobaco Settlement Financing:             
Asset Backed, 5.75%, 2032    180,000        187,087 
Asset Backed, 6.125%, 2042    1,120,000        1,169,974 

The Portfolio 19

STATEMENT OF INVESTMENTS (continued)
    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
State Government (continued)             
New York Counties Tobacco Trust,             
Pass-Through Ctfs., Ser. B, 6%, 2027    265,000        260,967 
Tobacco Settlement Authority of Iowa             
Taxable Asset Backed, Ser. A, 6.5%, 2023    250,000        250,943 
            1,868,971 
Structured Index—1.8%             
AB Svensk Exportkredit,             
GSNE-ER Indexed Notes, 0%, 2007    1,315,000    b,g    1,289,358 
Technology—.5%             
Freescale Semiconductor,             
Sr. Notes, 6.875%, 2011    100,000        105,500 
Hewlett-Packard,             
Notes, 5.75%, 2006    255,000        257,191 
            362,691 
Telecommunications—2.5%             
Deutsche Telekom International Finance,             
Notes, 8.25%, 2030    120,000    f    153,080 
France Telecom,             
Notes, 7.75%, 2011    160,000    f    178,902 
Nextel Communications,             
Sr. Notes, 5.95%, 2014    140,000        140,914 
Qwest:             
Bank Note, Ser. A, 8.53%, 2007    167,200    f    170,962 
Bank Note, Ser. B, 6.95%, 2010    249,000    f    251,801 
Sr. Notes, 7.875%, 2011    90,000        97,425 
Sprint Capital:             
Gtd. Sr. Notes, 6.125%, 2008    260,000        267,535 
Notes, 8.75%, 2032    275,000        366,052 
Telecom Italia Capital,             
Notes, 4.73%, 2011    185,000    f    186,074 
            1,812,745 
Transportation—.3%             
Ryder System,             
Notes, 3.5%, 2009    195,000        185,250 
U.S. Government—18.2%             
U.S. Treasury Bonds,             
5.25%, 11/15/2028    1,645,000        1,794,711 
U.S. Treasury Inflation Protected Securities,             
3.375%, 1/15/2007    3,601,907    h    3,628,963 
 
 
20             

    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
U.S. Government (continued)         
U.S. Treasury Notes:         
2.875%, 11/30/2006    125,000    123,306 
3.5%, 2/15/2010    4,865,000    4,707,272 
3.625%, 4/30/2007    1,990,000    1,969,782 
4.75%, 5/15/2014    905,000    927,299 
        13,151,333 
U.S. Government Agencies/Mortgage-Backed—31.5%     
Federal Home Loan Mortgage Corp.:         
Ser. 2586, Cl. WE, 4%, 12/15/2032    221,469    207,588 
(Interest Only Obligations),         
Ser. 2752, Cl. GM, 5%, 3/15/2026    3,000,000 i    514,268 
Federal National Mortgage Association:         
4.5%    3,050,000 j    2,968,016 
5%    7,625,000 j    7,466,261 
5%, 9/1/2017    131,199    130,046 
5.5%    3,795,000 j    3,782,136 
5.5%, 8/1/2034-9/1/2034    1,884,851    1,868,807 
6%    2,175,000 j    2,221,893 
Government National Mortgage Association:         
Ser. 2003-88, Cl. AC, 2.9141%, 6/16/2018    273,181    262,355 
Ser. 2004-9, Cl. A, 3.36%, 8/16/2022    101,762    97,704 
Ser. 2004-25, Cl. AC, 3.377%, 1/16/2023    275,138    264,997 
Ser. 2004-43, Cl. A, 2.822%, 12/16/2019    289,539    276,843 
Ser. 2004-51, Cl. A, 4.145%, 2/16/2018    69,090    67,768 
Ser. 2004-57, Cl. A, 3.022%, 1/16/2019    414,552    398,125 
Ser. 2004-67, Cl. A, 3.648%, 9/16/2017    154,280    150,781 
Ser. 2004-77, Cl. A, 3.402%, 3/16/2020    226,218    218,503 
Ser. 2005-29, Cl. A, 4.016%, 7/16/2027    283,628    276,117 
Ser. 2005-32, Cl. B, 4.385%, 8/16/2030    475,000    466,094 
Ser. 2005-34, Cl. A, 3.956%, 9/16/2021    203,982    199,603 
Ser. 2005-42, Cl. A, 4.045%, 7/16/2020    244,459    239,358 
Ser. 2005-50, Cl. A, 4.015%, 11/16/2026    173,082    168,906 
Ser. 2005-67, Cl. A, 4.217%, 6/16/2021    197,943    194,326 
Ser. 2005-79, Cl. A, 3.998%, 10/16/2033    199,475    194,009 
Government National Mortgage Association II,         
5%, 7/20/2030    24,970    25,011 
6.5%, 7/20/2031    27,021    28,060 
        22,687,575 
Total Bonds and Notes         
(cost $84,444,321)        84,180,926 

The Portfolio 21

  STATEMENT OF INVESTMENTS (continued)
Preferred Stock—.1%        Shares    Value ($) 
Banking—.1%             
Sovereign Capital Trust IV,             
Cum. Conv., $2.18754             
(cost $106,156)        2,150    94,600 
        Face Amount     
        Covered by     
Options—.1%        Contracts a    Value ($) 
Call Options—.1%             
Dow Jones CDX.NA.IG.4             
February 2006 @ 100.900        1,450,000    12,325 
U.S. Treasury Notes, 4.50%, 11/15/2015         
February 2006 @ 100.26525        2,170,000    22,720 
            35,045 
Put Options—.0%             
6 Month Euribor Interest Swap             
November 2006 @ 3.405    EUR    1,226,000    13,878 
U.S. Treasury Notes, 4.25%, 8/15/2015         
February 2006 @ 97.171875        745,000    1,937 
U.S. Treasury Notes, 4.25%, 8/15/2015         
February 2006 @ 96.859375        745,000    1,512 
            17,327 
Total Options             
(cost $56,978)            52,372 
 
Other Investment—1.2%        Shares    Value ($) 
Registered Investment Company;             
Dreyfus Institutional Preferred Plus Money Market Fund         
(cost $867,000)        867,000 k    867,000 
        Principal     
Short-Term Investments—3.9%        Amount a    Value ($) 
U.S. Government Agency—3.8%             
Federal National Mortgage Association,             
4.12%, 1/12/2006        2,700,000    2,696,576 
U.S. Treasury Bill—.1%             
3.59%, 3/9/2006        75,000 l    74,474 
Total Short-Term Investments             
(cost $2,771,041)            2,771,050 

22
Investment of Cash Collateral         
for Securities Loaned—1.1%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $774,500)    774,500 k    774,500 
 
Total Investments (cost $89,019,996)    123.1%    88,740,448 
 
Liabilities, Less Cash and Receivables    (23.1%)    (16,627,156) 
 
Net Assets    100.0%    72,113,292 
 
a Principal amount stated in U.S Dollars unless otherwise noted.     
EUR—Euro         
BRL—Brazilian Real         
MXN—Mexican Peso         
b Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in 
transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2005, these 
securities amounted to $7,142,117 or 9.9% of net assets.     
c All or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio’s 
securities on loan is $735,335 and the total market value of the collateral held by the portfolio is $774,500. 
d Non-income producing—security in default.         
e The value of this security has been determined in good faith under the direction of the Board of Trustees. 
f Variable rate security—interest rate subject to periodic change.     
g Security linked to Goldman Sachs Non-Energy—Excess Return Index.     
h Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index. 
i Notional face amount shown.         
j Purchased on a forward commitment basis.         
k Investment in affiliated money market mutual fund.     
l Partially held by a broker as collateral for open financial futures positions.     

Portfolio Summary †             
 
    Value (%)        Value (%) 
U.S. Government & Agencies    49.7    State Government    2.6 
Corporate Bonds    39.6    Structured Index    1.8 
Asset/Mortgage Backed    20.3    Preferred Stock    .1 
Short-Term/        Futures/Options/Swaps    .1 
Money Market Investments    6.2         
Foreign/Governmental    2.7        123.1 
 
† Based on net assets.             
See notes to financial statements.             

The Portfolio 23

STATEMENT OF FINANCIAL FUTURES 
December 31, 2005 

        Market Value        Unrealized 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 12/31/2005 ($) 
Financial Futures Long                 
U.S. Treasury 5 Year Notes    86    9,145,563    March 2006    (3,219) 
Financial Futures Short                 
U.S. Treasury 10 Year Notes    8    875,250    March 2006    (5,875) 
U.S. Treasury 30 Year Bonds    4    456,750    March 2006    (9,265) 
                (18,359) 

  See notes to financial statements.
STATEMENT OF OPTIONS WRITTEN 
December 31, 2005 

    Face Amount     
    Covered by     
    Contracts ($)    Value ($) 
Call Options:         
Dow Jones CDX.NA.IG.4         
January 2006 @ .55    3,674,000    2,939 
Dow Jones CDX.NA.IG.4         
February 2006 @ 101.700    2,900,000    13,050 
U.S. Treasury Notes, 4.50%, 11/15/2015     
February 2006 @ 101.679888    4,340,000    19,270 
Put Options:         
Dow Jones CDX.NA.IG.4         
January 2006 @ .575    3,674,000    3,307 
Dow Jones CDX.NA.IG.4         
February 2006 @ .575    3,628,000    7,289 
Dow Jones CDX.NA.IG.4         
February 2006 @ .600    3,628,000    1,603 
U.S. Treasury Notes, 4.25%, 8/15/2015     
February 2006 @ 95.316406    1,490,000    566 
U.S. Treasury Notes, 4.25%, 8/15/2015     
February 2006 @ 95.609375    1,490,000    760 
(Premiums received $61,020)        48,784 

  See notes to financial statements.
24
STATEMENT OF ASSETS AND LIABILITIES 
December 31, 2005 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments     
(including securities on loan, valued at $735,335)—Note 1(c):     
Unaffiliated issuers    87,378,496    87,098,948 
Affiliated issuers    1,641,500    1,641,500 
Cash        45,647 
Cash denominated in foreign currencies    25    25 
Dividends and interest receivable        652,066 
Unrealized appreciation on swap contracts—Note 4    18,634 
Receivable from broker from swap transactions—Note 4    7,148 
Receivable for shares of Beneficial Interest subscribed    1,993 
        89,465,961 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    58,085 
Payable for investment securities purchased    16,359,267 
Liability for securities on loan—Note 1(c)        774,500 
Outstanding options written, at value (premiums     
received $61,020)—See Statement of Options Written    48,784 
Unrealized depreciation on swap contracts—Note 4    29,002 
Payable for shares of Beneficial Interest redeemed    28,574 
Payable for futures variation margin—Note 4    1,656 
Accrued expenses        52,801 
        17,352,669 
Net Assets ($)        72,113,292 
Composition of Net Assets ($):         
Paid-in capital        72,529,233 
Accumulated undistributed investment income—net    772,704 
Accumulated net realized gain (loss) on investments    (892,129) 
Accumulated net unrealized appreciation (depreciation) on investments,     
foreign currency transactions, options transactions and swap transactions     
[including ($18,359) net unrealized (depreciation) on financial futures]    (296,516) 
Net Assets ($)        72,113,292 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    24,845,899    47,267,393 
Shares Outstanding    1,941,586    3,695,085 
Net Asset Value Per Share ($)    12.80    12.79 

See notes to financial statements. 

The Portfolio 25

STATEMENT OF OPERATIONS 
Year Ended December 31, 2005 

Investment Income ($):     
Income:     
Interest    3,228,879 
Dividends:     
Unaffiliated issuers    3,527 
Affiliated issuers    99,571 
Income from securities lending    4,988 
Total Income    3,336,965 
Expenses:     
Investment advisory fee—Note 3(a)    454,779 
Distribution fees—Note 3(b)    125,616 
Auditing fees    36,725 
Custodian fees—Note 3(b)    35,698 
Prospectus and shareholders’ reports    9,407 
Trustees’ fees and expenses—Note 3(c)    2,413 
Shareholder servicing costs—Note 3(b)    521 
Legal fees    225 
Interest expense—Note 2    61 
Miscellaneous    22,593 
Total Expenses    688,038 
Less—waiver of fees due to undertaking—Note 3(a)    (96,283) 
Net Expenses    591,755 
Investment Income—Net    2,745,210 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions: 
Long transactions    249,319 
Short sale transactions    20 
Net realized gain (loss) on options transactions    57,846 
Net realized gain (loss) on financial futures    (133,389) 
Net realized gain (loss) on swap transactions    24,849 
Net realized gain (loss) on forward currency exchange contracts    172,370 
Net Realized Gain (Loss)    371,015 
Net unrealized appreciation (depreciation) on investments,     
securities sold short, foreign currency transactons, options     
transactions and swap transactions [including ($18,359)     
net unrealized depreciation on financial futures]    (1,560,685) 
Net Realized and Unrealized Gain (Loss) on Investments    (1,189,670) 
Net Increase in Net Assets Resulting from Operations    1,555,540 

See notes to financial statements. 
26 

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment income—net    2,745,210    3,023,741 
Net realized gain (loss) on investments    371,015    165,272 
Net unrealized appreciation         
(depreciation) on investments    (1,560,685)    176,824 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    1,555,540    3,365,837 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (969,776)    (1,183,364) 
Service shares    (1,863,638)    (2,285,546) 
Total Dividends    (2,833,414)    (3,468,910) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    2,911,861    1,764,002 
Service shares    2,594,764    3,749,603 
Dividends reinvested:         
Initial shares    969,776    1,183,364 
Service shares    1,863,638    2,285,546 
Cost of shares redeemed:         
Initial shares    (4,693,145)    (8,709,051) 
Service shares    (9,305,849)    (11,488,700) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (5,658,955)    (11,215,236) 
Total Increase (Decrease) in Net Assets    (6,936,829)    (11,318,309) 
Net Assets ($):         
Beginning of Period    79,050,121    90,368,430 
End of Period    72,113,292    79,050,121 
Undistributed investment income—net    772,704    120,866 

The Portfolio 27

  STATEMENT OF CHANGES IN NET ASSETS (continued)
    Year Ended December 31, 
    2005    2004 
Capital Share Transactions:         
Initial Shares         
Shares sold    226,021    136,860 
Shares issued for dividends reinvested    75,418    92,375 
Shares redeemed    (364,571)    (679,108) 
Net Increase (Decrease) in Shares Outstanding    (63,132)    (449,873) 
Service Shares         
Shares sold    201,530    290,890 
Shares issued for dividends reinvested    144,989    178,570 
Shares redeemed    (723,580)    (896,444) 
Net Increase (Decrease) in Shares Outstanding    (377,061)    (426,984) 

See notes to financial statements. 

28

FINANCIAL HIGHLIGHTS

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

        Year Ended December 31,     
Initial Shares    2005    2004 a    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    13.01    13.00    12.87    12.67    12.94 
Investment Operations:                     
Investment income—net b    .47    .47    .45    .61    .75 
Net realized and unrealized                     
gain (loss) on investments    (.19)    .09    .47    .21    (.18) 
Total from Investment Operations    .28    .56    .92    .82    .57 
Distributions:                     
Dividends from investment income—net    (.49)    (.55)    (.54)    (.62)    (.72) 
Dividends from net realized                     
gain on investments    —    —    (.25)    —    (.12) 
Total Distributions    (.49)    (.55)    (.79)    (.62)    (.84) 
Net asset value, end of period    12.80    13.01    13.00    12.87    12.67 
Total Return (%)    2.04    4.54    7.27    6.70    4.55 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .74    .71    .72    .80    .97 
Ratio of net expenses                     
to average net assets    .74    .71    .72    .80    .80 
Ratio of net investment income                     
to average net assets    3.66    3.69    3.39    4.82    5.71 
Portfolio Turnover Rate    493.27c    785.59c    905.09c    653.12    654.39 
Net Assets, end of period ($ x 1,000)    24,846    26,089    31,912    33,810    26,744 

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    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended December 31, 2005, 
    December 31, 2004 and December 31, 2003 were 304.69%, 706.48% and 684.58%, respectively. 
See notes to financial statements. 

The Portfolio 29

FINANCIAL HIGHLIGHTS (continued)
        Year Ended December 31,     
Service Shares    2005    2004 a    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    13.01    12.99    12.87    12.66    12.93 
Investment Operations:                     
Investment income—net b    .46    .46    .43    .62    .70 
Net realized and unrealized                     
gain (loss) on investments    (.20)    .10    .47    .21    (.13) 
Total from Investment Operations    .26    .56    .90    .83    .57 
Distributions:                     
Dividends from investment income—net    (.48)    (.54)    (.53)    (.62)    (.72) 
Dividends from net realized                     
gain on investments    —    —    (.25)    —    (.12) 
Total Distributions    (.48)    (.54)    (.78)    (.62)    (.84) 
Net asset value, end of period    12.79    13.01    12.99    12.87    12.66 
Total Return (%)    2.11    4.36    7.11    6.78    4.46 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .99    .96    .97    1.00    1.15 
Ratio of net expenses                     
to average net assets    .80    .80    .80    .80    .80 
Ratio of net investment income                     
to average net assets    3.60    3.60    3.29    4.82    5.77 
Portfolio Turnover Rate    493.27c    785.59c    905.09c    653.12    654.39 
Net Assets, end of period ($ x 1,000)    47,267    52,961    58,456    57,823    30,416 

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    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended December 31, 2005, 
    December 31, 2004 and December 31, 2003 were 304.69%, 706.48% and 684.58%, respectively. 
See notes to financial statements. 
30     

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering nine series, including the Core Bond Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series.The portfolio’s investment objective is to maximize total return through capital appreciation and current income.The Dreyfus Corporation (the “Manager” 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 31

  NOTES TO FINANCIAL STATEMENTS (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,

32

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 at fiscal year end, resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis.

The Portfolio 33

  NOTES TO FINANCIAL STATEMENTS (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, 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 insti-tutions.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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The portfolio will be 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 would bear 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.

34

On December 30, 2005, the Board of Trustees declared a cash dividend of $.051 and $.050 per share for the Initial shares and Service shares, respectively, from undistributed investment income-net payable on January 3, 2006 (ex-dividend date) to shareholders of record as of the close of business on December 30, 2005.

(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.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $912,757, accumulated capital losses $426,080 and unrealized depreciation $561,764. In addition, the portfolio had $340,854 of capital losses realized after October 31, 2005, which were deferred for tax purposes to the first day of the following fiscal year.

The accumulated capital loss carryover is available 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 periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $2,833,414 and $3,468,910, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for amortization of premiums, treasury inflation protected securities and foreign currency transactions, the portfolio increased accumulated undistributed investment income-net by $740,042, decreased accumulated net realized gain (loss) on investments by $741,373 and increased paid-in capital by $1,331. Net assets were not affected by this reclassification.

The Portfolio 35

  NOTES TO FINANCIAL STATEMENTS (continued)

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.

The average daily amount of borrowings outstanding under the leveraging arrangement during the period ended December 31, 2005 was approximately $2,700, with a related weighted average annualized interest rate of 2.24% .

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, 2005 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 December 31, 2005, the Manager waived receipt of fees of $96,283, 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

36

actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $125,616 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $62 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 December 31, 2005, the portfolio was charged $35,698 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $36,789, Rule 12b-1 distribution plan fees $10,036, custodian fees $16,509, chief compliance officer fees $1,858 and transfer agency per account fees $17, which are offset against an expense reimbursement currently in effect in the amount of $7,124.

(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 following summarizes the aggregate amount of purchases and sales (including paydowns) of investment securities and securities sold short, excluding short-term securities, financial futures, options transactions,

The Portfolio 37

  NOTES TO FINANCIAL STATEMENTS (continued)

forward currency exchange contracts and swap transactions, during the period ended December 31, 2005, of which $149,936,630 in purchases and $150,151,623 in sales were from dollar roll transactions:

    Purchases ($)    Sales ($) 
Long transactions    411,980,515    392,758,153 
Short sale transactions    16,344    — 
Total    411,996,859    392,758,153 

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 is engaged in short selling which obligates the portfolio to replace the security borrowed by purchasing the security at current market value.The portfolio would incur a loss if the price of the security increases between the date of the short sale and the date on which the portfolio replaces the borrowed security. The portfolio would realize a gain if the price of the security declines between those dates. The portfolio’s long security positions serve as collateral for the open short positions. At December 31, 2005, there were no securities sold short outstanding.

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

38

exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at December 31, 2005, are set forth in the Statement of Financial Futures.

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

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

As a writer of put options, the portfolio receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the portfolio would incur a gain, to the extent of the premium, if the price of the underlying financial instrument increases between the date the option is written and the date on which the option is terminated. Generally, the portfolio would realize a loss, if the price of the financial instrument decreases between those dates.The following summarizes the portfolio’s call/put options written for the period ended December 31, 2005:

    Face Amount        Options Terminated 
    Covered by    Premiums        Net Realized 
Options Written:    Contracts ($)    Received ($)    Cost ($)    Gain (Loss) ($) 
Contracts outstanding                 
December 31, 2004    2,470,000    18,113         
Contracts written    59,274,000    184,723         
Contracts terminated:                 
Contracts closed    20,975,000    63,897    72,127    (8,230) 
Contracts expired    15,945,000    77,919    —    77,919 
Total contracts terminated    36,920,000    141,816    72,127    69,689 
Contracts outstanding                 
December 31, 2005    24,824,000    61,020         

The Portfolio 39

  NOTES TO FINANCIAL STATEMENTS (continued)

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.At December 31, 2005, there were no forward currency exchange contracts outstanding.

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) of 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

40

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 December 31, 2005:

        Unrealized 
        Appreciation 
Notional Amount ($)    Description    (Depreciation) ($) 
85,000    Agreement with Morgan Stanley    (192) 
    terminating September 20, 2015 to pay a     
fixed rate of 1.15% and receive the notional
    amount as a result of interest payment     
    default totaling $1,000,000 or principal     
    payment default of $10,000,000 on     
    CenturyTel, 7.875%, 8/15/2012     
294,000    Agreement with Citibank terminating    (883) 
    September 20, 2015 to pay a fixed rate of     
    1.16% and receive the notional amount     
    as a result of interest payment default     
    totaling $1,000,000 or principal payment     
    default of $10,000,000 on CenturyTel,     
    7.875%, 8/15/2012     
93,000    Agreement with JP Morgan terminating    5,972 
    September 20, 2010 to pay a fixed rate of     
    1.07% and receive the notional amount     
    as a result of interest payment default     
    totaling $1,000,000 or principal payment     
    default of $10,000,000 on Cooper     
    Tire & Rubber, 7.75%, 12/15/2009     
379,400    Agreement with Merrill Lynch terminating    (653) 
    June 20, 2010 to pay a fixed rate of     
    .305% and receive the notional amount     
    as a result of interest payment default     
    totaling $1,000,000 or principal     
    payment default of $10,000,000 on     
    Dow Jones CDX.NA.IG.4     
602,600    Agreement with Lehman Brothers    (1,886) 
    terminating June 20, 2010 to pay a fixed     
    rate of .35% and receive the notional     
    amount as a result of interest payment     
    default totaling $1,000,000 or principal     
    payment default of $10,000,000 on     
    Dow Jones CDX.NA.IG.4     

The Portfolio 41

  NOTES TO FINANCIAL STATEMENTS (continued)
        Unrealized 
        Appreciation 
Notional Amount ($) Description    (Depreciation) ($) 
685,000    Agreement with Citigroup terminating    (11,594) 
    June 20, 2010 to pay a fixed rate of     
    .685% and receive the notional amount as     
a result of interest payment default totaling
    $1,000,000 or principal payment default     
of $10,000,000 on Dow Jones CDX.NA.IG.4
525,000    Agreement with Citigroup terminating    (9,312) 
    June 20, 2010 to pay a fixed rate of     
    .705% and receive the notional amount as     
a result of interest payment default totaling
$1,000,000 or principal payment default of
    $10,000,000 on Dow Jones CDX.NA.IG.4     
190,000    Agreement with Morgan Stanley terminating    (4,482) 
September 20, 2006 to receive a fixed rate of
    2.0% and pay the notional amount as a     
    result of interest payment default totaling     
$1,000,000 or principal payment default of
$10,000,000 on GMAC, 6.875%, 8/28/2012
120,000    Agreement with Morgan Stanley terminating    497 
    December 20, 2010 to pay a fixed rate of     
.77% and receive the notional amount as a
    result of interest payment default totaling     
$1,000,000 or principal payment default of
    $10,000,000 on KPN, 8%, 10/1/2010     
231,000    Agreement with Lehman Brothers terminating    654 
    December 20, 2010 to pay a fixed rate of     
.80% and receive the notional amount as a
    result of interest payment default totaling     
$1,000,000 or principal payment default of
    $10,000,000 on KPN, 8%, 10/1/2010     
229,000    Agreement with JP Morgan Chase terminating    645 
December 20, 2010 to receive a fixed rate of
    1.5% and pay the notional amount as a     
    result of interest payment default totaling     
$1,000,000 or principal payment default of
    $10,000,000 on Panama Republic,     
    8.875%, 9/30/2027     
229,000    Agreement with JP Morgan Chase terminating    4,422 
    December 20, 2010 to pay a fixed rate of     
1.7% and receive the notional amount as a
    result of interest payment default totaling     
$1,000,000 or principal payment default of
    $10,000,000 on Republic of Peru,     
    8.75%, 11/21/2033     

42

        Unrealized 
        Appreciation 
Notional Amount ($)    Description    (Depreciation) ($) 
500,000    Agreement with Citigroup terminating    2,659 
    March 20, 2015 to receive a fixed rate of     
    .53% and pay the notional amount as a     
    result of interest payment default totaling     
$1,000,000 or principal payment default of
    $10,000,000 on Washington Mutual,     
    4%, 1/15/2009     
300,000    Agreement with Morgan Stanley terminating    3,785 
    December 20, 2015 to pay a fixed rate of     
.97% and receive the notional amount as a
    result of interest payment default totaling     
$1,000,000 or principal payment default of
    $10,000,000 on Wendy’s International,     
    6.25%, 11/15/2011     
Total        (10,368) 

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 December 31, 2005, the cost of investments for federal income tax purposes was $89,303,603; accordingly, accumulated net unrealized depreciation on investments was $563,155, consisting of $538,328 gross unrealized appreciation and $1,101,483 gross unrealized depreciation.

The Portfolio 43

REPORT OF INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM 

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Core Bond Portfolio

We have audited the accompanying statement of assets and liabilities, including the statements of investments, financial futures and options written, of Dreyfus Investment Portfolios, Core Bond Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended,and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Core Bond Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U. S. generally accepted accounting principles.

New York, New York 
February 6, 2006 

44

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates .14% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

The Portfolio 45

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

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one-year term, pursuant to which 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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and 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 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 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.

46

Comparative Analysis of the Portfolio’s Performance, Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and noted that the total return performance of the portfolio’s Initial shares (which are not subject to a Rule 12b-1 plan) was above the averages of Comparison Group I for the one- and three-year periods and was below the average of Comparison Group I for the five-year period, and that the total return performance of the portfolio’s Service shares (which are subject to a Rule 12b-1 plan) was above the average of Comparison Group II for the one-year period and was below the averages of Comparison Group II for the three- and five-year periods. 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

The Portfolio 47

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

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 also noted that the income performance of the portfolio’s Initial shares was above the average of Comparison Group I for the one-year period and was below the averages of Comparison Group I for the three- and five-year periods, and that the income performance of the portfolio’s Service shares was above the averages of Comparison Group II for the one- and three-year periods. The Board members further noted that the total return performance of the portfolio’s Initial shares was above the Comparison Group I Lipper category average for the one-year period and was below the Comparison Group I Lipper category averages for the three- and five-year periods, and that the total return performance of the portfolio’s Service shares was above the Comparison Group II Lipper category average for the one-year period and was below the Comparison Group II Lipper category averages for the three- and five-year periods. The Board noted that the income performance of the portfolio’s Initial shares was above the Comparison Group I Lipper category averages for the one-, three- and five-year periods, and that the income performance of the portfolio’s Service shares was above the Comparison Group II Lipper category averages for the one- and three-year periods.The Board members also noted that two new portfolio managers of the portfolio were appointed in January 2005.

The Board members also discussed the portfolio’s expense ratios, noting that the expense ratio of the portfolio’s Initial shares was higher 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 of Comparison Group I and ranked in the bottom half (i.e., higher than several other funds) of Comparison Group II.The Board members also considered the Manager’s contractual undertaking for the portfolio in effect through December 31, 2005.

48

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 Similar Accounts as compared to managing and providing services to the portfolio; it was noted that the Similar Funds were mutual funds included in the “intermediate investment grade debt” funds category by Lipper.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 higher, lower and comparable to the fee borne by the portfolio or reflected the pricing of a “unitary fee” fund and 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 received and considered information 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 Manager’s representatives stated that the methodology had also been reviewed by an independent registered public accounting firm which,

The Portfolio 49

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

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 Board members also considered potential benefits to the Manager from acting as investment adviser to the portfolio and noted that there were no 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 continua-

50

tion 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 ser- vices provided by the Manager to the portfolio are adequate and appropriate.
  • While the Board noted the portfolio’s longer-term total return per- formance, the Board was satisfied with the portfolio’s short-term total return performance and was satisfied with the portfolio’s income performance as well as with the change in the portfolio’s portfolio managers that had occurred in January 2005.
  • The Board concluded that the fee paid to the Manager by the port- folio was reasonable in light of comparative performance and expense and advisory fee information, including the Manager’s cur- rent undertaking to limit the portfolio’s expense ratio, 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 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.

The Portfolio 51

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (62) 
Chairman of the Board (1998) 

Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 

  Other Board Memberships and Affiliations:
  • The Muscular Dystrophy Association, Director
  • Levcor International, Inc., an apparel fabric processor, Director
  • Century Business Services, Inc., a provider of outsourcing functions for small and medium size companies, Director
  • The Newark Group, a provider of a national market of paper recovery facilities, paperboard mills and paperboard converting plants, Director
  • Sunair Services Corporation, engages in the design, manufacture and sale of high frequency systems for long-range voice and data communications, as well as providing certain outdoor- related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 193

———————

Clifford L. Alexander, Jr. (72) 
Board Member (1998) 

  Principal Occupation During Past 5 Years:
  • President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present)
  • Chairman of the Board of Moody’s Corporation (October 2000-October 2003)
  • Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation (October 1999-September 2000)

Other Board Memberships and Affiliations:

• Mutual of America Life Insurance Company, Director

  No. of Portfolios for which Board Member Serves: 66

———————

Lucy Wilson Benson (78) 
Board Member (1998) 

Principal Occupation During Past 5 Years:

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

  Other Board Memberships and Affiliations:
  • The International Executive Services Corps., Director Emeritus
  • Citizens Network for Foreign Affairs,Vice Chairperson
  • Council on Foreign Relations, Member
  • Lafayette College Board of Trustees,Trustee Emeritus
  • Atlantic Council of the U.S., Director
  No. of Portfolios for which Board Member Serves: 40
52
David W. Burke (69) 
Board Member (2003) 

Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 

Other Board Memberships and Affiliations:
  • John F. Kennedy Library Foundation, Director
  • U.S.S. Constitution Museum, Director
No. of Portfolios for which Board Member Serves: 84

———————

Whitney I. Gerard (71) 
Board Member (2003) 

Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 

No. of Portfolios for which Board Member Serves: 38
———————
Arthur A. Hartman (79) 
Board Member (2003) 

Principal Occupation During Past 5 Years:
  • Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund
  • Advisory Council Member to Barings-Vostok
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 

No. of Portfolios for which Board Member Serves: 38

———————

George L. Perry (71) 
Board Member (2003) 

Principal Occupation During Past 5 Years:

• Economist and Senior Fellow at Brookings Institution

No. of Portfolios for which Board Member Serves: 38

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

The Portfolio 53

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since 
March 2000. 

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since 
March 2000. 

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President 
and Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and 
Assistant Secretary since August 2005. 

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice 
President and Assistant Secretary 
since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and 
Assistant Secretary since August 2005. 

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice 
President and Assistant Secretary 
since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

54

ROBERT R. MULLERY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990

JAMES WINDELS, Treasurer since 
November 2001. 

Director-Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer 
since December 2002. 

Senior Accounting Manager - Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager — Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer 
since December 2002. 

Senior Accounting Manager - Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer 
since December 2005. 

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance 
Officer since October 2004. 

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

The Portfolio 55

NOTES

For More    Information 
 
Dreyfus    Transfer Agent & 
Investment Portfolios,    Dividend Disbursing Agent 
Core Bond Portfolio     
    Dreyfus Transfer, Inc. 
200 Park Avenue     
    200 Park Avenue 
New York, NY 10166     
    New York, NY 10166 
 
Investment Adviser    Distributor 
The Dreyfus Corporation     
    Dreyfus Service Corporation 
200 Park Avenue     
    200 Park Avenue 
New York, NY 10166     
    New York, NY 10166 
Custodian     
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    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    Report of Independent Registered 
    Public Accounting Firm 
26    Important Tax Information 
27    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
33    Board Members Information 
35    Officers of the Fund 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios,

Core Value Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Core Value Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with Brian Ferguson, portfolio manager and member of the Large Cap Value Team of The Boston Company Asset Management.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation
January 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 12-month period ended December 31, 2005, Dreyfus Investment Portfolios, Core Value Portfolio produced total returns of 5.42% for its Initial Shares and 5.25% for its Service Shares.1 In comparison, the portfolio’s benchmark, the S&P 500/BARRA Value Index, produced a total return of 6.33% for the same period.2

High energy prices and rising interest rates loomed over the U.S. equities markets in 2005, but steady economic growth and solid corporate earnings helped keep stock prices in positive territory for the year. The portfolio’s returns were roughly in line with the S&P 500/BARRA Value Index, as relatively strong performance in the consumer discretionary, consumer staples and financials sectors was offset by disappointments in the materials and health care areas.

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?

Despite steady economic growth and rising corporate earnings, returns from the U.S. stock market were limited during much of 2005 by investors’ concerns regarding rising interest rates and volatile energy prices.The Federal Reserve Board (the “Fed”) raised short-term interest rates at each of eight scheduled meetings during the year, driving the overnight federal funds rate from 2.25% to 4.25% . Contrary to

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

historical norms, however, these moves did not cause longer-term bond yields to rise significantly, helping to contain corporate borrowing costs and support profit margins.While sharply higher energy costs threatened to erode earnings of industrial companies that use oil and gas in their manufacturing processes, other market sectors — most notably energy and utilities — benefited from higher commodity prices. Toward the end of the year, energy prices moderated and investors began to look forward to the possibility of an end to the Fed’s rate hikes, resulting in a modest market rally.

In this environment, our stock selection strategy in the consumer discretionary sector helped drive the portfolio’s performance. The portfolio did not own U.S. auto manufacturers, such as General Motors and Ford, which struggled due to high labor costs and greater foreign competition. The portfolio also benefited from its relatively light exposure to newspaper publishers, many of which were weakened by competition from online media. The relatively defensive consumer staples sector performed well for the portfolio, as food and tobacco giant Altria Group’s stock price rose in an improved litigation environment for the company. Another consumer staples holding, Colgate-Palmolive, gained ground on prospects of better earnings growth.

The portfolio’s performance also was bolstered by our stock selection strategy in the financials sector. Property and casualty insurance companies, such as Chubb and ACE, performed well as pricing power improved in the wake of Hurricane Katrina.The portfolio also benefited from its relatively light exposure to regional banks, which were weighed down by rising interest rates and a slowdown in mortgage originations. The telecommunications sector represented another positive contributor to the portfolio’s performance, primarily due to our emphasis on wireless companies and relatively light exposure to regional land-line providers.

Disappointments in other sectors, however, detracted from the portfolio’s relative performance. In the health care sector, medical supplies maker Boston Scientific saw its stock price decline in the aftermath of a safety-related recall of its surgical stents.The materials sector also was a laggard, as the portfolio held a number of paper manufacturers that were pressured by lower pricing dynamics.

4

As energy prices surged, the portfolio’s relatively heavy exposure to the energy sector contributed to overall returns, but the portfolio’s energy gains trailed the benchmark’s as a result of the portfolio’s greater emphasis on integrated oil companies, such as Exxon Mobil. Oil and gas refiners, as well as exploration and production companies, produced higher returns for the benchmark.

What is the portfolio’s current strategy?

We remain committed to our “bottom-up” stock selection process, believing it to be an effective method to identify attractively valued stocks under a variety of market conditions.We have found a number of attractive opportunities in the energy sector, which we believe may continue to benefit from high commodity prices. We also have emphasized relatively defensive consumer staples stocks over the more economically sensitive consumer discretionary sector. In the financials area, we favor insurers, which historically have been relatively insensitive to rising interest rates, over regional banks.We also are optimistic about a rebound in capital spending among businesses, which could benefit business conditions in the industrials and technology sectors.

January 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. 
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

  PORTFOLIO PERFORMANCE
Average Annual Total Returns as of 12/31/05         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    5/1/98    5.42%    2.56%    4.85% 
Service shares    5/1/98    5.25%    2.45%    4.77% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
† Source: Lipper Inc. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in 
connection with investing in variable insurance contracts which will reduce returns. 
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, 
Core Value Portfolio on 5/1/98 (inception date of Initial shares) to a $10,000 investment made in the Standard & 
Poor’s 500/BARRA Value Index (the “Index”) on that date. 

  6

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

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

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.47    $ 5.19 
Ending value (after expenses)    $1,059.90    $1,059.10 

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 December 31, 2005

    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.38    $ 5.09 
Ending value (after expenses)    $1,020.87    $1,020.16 

† Expenses are equal to the portfolio’s annualized expense ratio of .86% for Initial shares and 1.00% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8
STATEMENT OF INVESTMENTS 
D e c e m b e r 3 1 , 2 0 0 5 

Common Stocks—99.3%    Shares    Value ($) 
Banking—4.4%         
Citigroup    65,600    3,183,568 
Basic Industries—2.0%         
Bowater    10,000    307,200 
Dow Chemical    6,800    297,976 
E I Du Pont de Nemours & Co.    9,200    391,000 
Rohm & Haas    8,700    421,254 
        1,417,430 
Beverages & Tobacco—2.5%         
Altria Group    23,800    1,778,336 
Broadcasting & Publishing—.9%         
Time Warner    38,800    676,672 
Capital Goods—8.5%         
Boeing    6,700    470,608 
Cooper Industries, Cl. A    5,300    386,900 
Eaton    8,100    543,429 
Emerson Electric    11,500    859,050 
General Electric    31,100    1,090,055 
Tyco International    46,000    1,327,560 
United Technologies    25,000    1,397,750 
        6,075,352 
Consumer Cyclical—1.0%         
Johnson Controls    9,900    721,809 
Consumer Non-Durables—3.5%         
Cadbury Schweppes, ADR    13,500    516,915 
Campbell Soup    15,700    467,389 
Colgate-Palmolive    21,300    1,168,305 
General Mills    7,100    350,172 
        2,502,781 
Consumer Services—7.3%         
CCE Spinco    225 a    2,948 
Clear Channel Communications    37,000    1,163,650 
Comcast, Cl. A    10,500 a    272,580 
CVS    18,500    488,770 
Kohl’s    5,100 a    247,860 
McDonald’s    22,600    762,072 

The Portfolio 9

  S TAT E M E N T O F I N V E S T M E N T S (continued)
Common Stocks (continued)    Shares    Value ($) 
Consumer Services (continued)         
News, Cl. A    43,600    677,980 
Omnicom Group    11,100    944,943 
Walt Disney    29,300    702,321 
        5,263,124 
Energy—13.1%         
Apache    4,500    308,340 
BP, ADR    9,700    622,934 
Chevron    20,800    1,180,816 
ConocoPhillips    27,400    1,594,132 
Devon Energy    8,100    506,574 
Exxon Mobil    53,804    3,022,170 
Halliburton    5,500    340,780 
Marathon Oil    11,600    707,252 
NRG Energy    9,100 a    428,792 
Schlumberger    7,300    709,195 
        9,420,985 
Financial Services—22.1%         
Bank of America    53,110    2,451,026 
Capital One Financial    8,700    751,680 
Countrywide Financial    12,700    434,213 
Freddie Mac    15,900    1,039,065 
Goldman Sachs Group    5,600    715,176 
JPMorgan Chase & Co.    60,800    2,413,152 
Merrill Lynch & Co.    26,000    1,760,980 
Morgan Stanley    6,200    351,788 
PNC Financial Services Group    6,200    383,346 
St. Paul Travelers Cos.    24,900    1,112,283 
SunTrust Banks    6,700    487,492 
Wachovia    23,400    1,236,924 
Washington Mutual    18,300    796,050 
Wells Fargo & Co.    23,000    1,445,090 
XL Capital, Cl. A    7,620    513,436 
        15,891,701 
Health Care—6.2%         
Abbott Laboratories    19,000    749,170 
Boston Scientific    13,400 a    328,166 

10

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Medco Health Solutions    7,100 a    396,180 
Pfizer    55,500    1,294,260 
WellPoint    11,000 a    877,690 
Wyeth    18,300    843,081 
        4,488,547 
Insurance—8.8%         
ACE    7,800    416,832 
Allstate    5,800    313,606 
American International Group    20,896    1,425,734 
AON    12,200    438,590 
Chubb    8,500    830,025 
Genworth Financial, Cl. A    38,600    1,334,788 
PMI Group    19,500    800,865 
Prudential Financial    10,200    746,538 
        6,306,978 
Merchandising—.6%         
Estee Lauder Cos., Cl. A    12,000    401,760 
Retail Trade—.5%         
TJX Cos.    16,000    371,680 
Technology—8.0%         
Accenture, Cl. A    25,700    741,959 
Automatic Data Processing    27,300    1,252,797 
Fairchild Semiconductor International    20,100 a    339,891 
Hewlett-Packard    43,400    1,242,542 
International Business Machines    10,400    854,880 
Microsoft    38,000    993,700 
Motorola    13,100    295,929 
        5,721,698 
Transportation—1.5%         
Union Pacific    13,400    1,078,834 
Utilities—8.4%         
Alltel    7,700    485,870 
AT&T    73,900    1,809,811 
Constellation Energy Group    8,100    466,560 
Edison International    8,900    388,129 
Entergy    4,700    322,655 

The Portfolio 11

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Utilities (continued)             
Exelon        10,300    547,342 
FPL Group        7,900    328,324 
PG & E        18,000    668,160 
Sprint Nextel        26,200    612,032 
Vodafone Group, ADR        17,300    371,431 
            6,000,314 
Total Common Stocks             
(cost $60,403,749)            71,301,569 
        Principal     
Short-Term Investment—.7%    Amount ($)    Value ($) 
Agency Discount Note;             
Federal Home Loan Bank,             
3.40%, 1/3/2006             
(cost $508,904)        509,000    508,904 
 
Total Investments (cost $60,912,653)    100.0%    71,810,473 
Cash and Receivables (Net)    .0%    24,908 
Net Assets        100.0%    71,835,381 
 
ADR—American Depository Receipts.         
a Non-income producing.             
 
 
 
Portfolio Summary †             
    Value (%)        Value (%) 
Financial Services    22.1    Consumer Services    7.3 
Energy    13.1    Health Care    6.2 
Insurance    8.8    Banking    4.4 
Capital Goods    8.5    Other    13.2 
Utilities    8.4         
Technology    8.0        100.0 
 
† Based on net assets.             
See notes to financial statements.         

  12
STATEMENT OF ASSETS AND LIABILITIES     
D e c e m b e r 3 1 , 2 0 0 5         
 
 
 
 
    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments    60,912,653    71,810,473 
Dividends receivable        106,440 
Receivable for investment securities sold        57,522 
Receivable for shares of Beneficial Interest subscribed        274 
Prepaid expenses        637 
        71,975,346 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)        57,349 
Cash overdraft due to Custodian        586 
Payable for investment securities purchased        26,771 
Payable for shares of Beneficial Interest redeemed        10,074 
Accrued expenses        45,185 
        139,965 
Net Assets ($)        71,835,381 
Composition of Net Assets ($):         
Paid-in capital        60,503,006 
Accumulated undistributed investment income—net        890,106 
Accumulated net realized gain (loss) on investments        (455,551) 
Accumulated net unrealized appreciation         
(depreciation) on investments        10,897,820 
Net Assets ($)        71,835,381 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    32,189,029    39,646,352 
Shares Outstanding    1,976,394    2,431,070 
Net Asset Value Per Share ($)    16.29    16.31 

See notes to financial statements.

The Portfolio 13

STATEMENT OF OPERATIONS     
Year Ended December 31, 2005     
 
 
 
 
Investment Income ($):     
Income:     
Cash dividends (net of $4,762 foreign taxes withheld at source)    1,567,758 
Interest    18,590 
Income from securities lending    2,391 
Total Income    1,588,739 
Expenses:     
Investment advisory fee—Note 3(a)    556,502 
Distribution fees—Note 3(b)    101,472 
Professional fees    34,951 
Custodian fees—Note 3(b)    16,675 
Prospectus and shareholders’ reports    16,009 
Trustees’ fees and expenses—Note 3(c)    5,975 
Shareholder servicing costs—Note 3(b)    2,389 
Interest expense—Note 2    359 
Miscellaneous    6,716 
Total Expenses    741,048 
Less—waiver of fees due to undertaking—Note 3(a)    (45,726) 
Less—reduction in custody fees due to earnings credits—Note 1(b)    (1,499) 
Net Expenses    693,823 
Investment Income—Net    894,916 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    5,393,343 
Net unrealized appreciation (depreciation) on investments    (2,534,124) 
Net Realized and Unrealized Gain (Loss) on Investments    2,859,219 
Net Increase in Net Assets Resulting from Operations    3,754,135 

See notes to financial statements.
14

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment income—net    894,916    810,606 
Net realized gain (loss) on investments    5,393,343    6,547,710 
Net unrealized appreciation         
(depreciation) on investments    (2,534,124)    908,824 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    3,754,135    8,267,140 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (147,061)    (425,460) 
Service shares    (117,909)    (416,619) 
Total Dividends    (264,970)    (842,079) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    2,006,235    4,722,103 
Service shares    1,399,677    2,485,948 
Dividends reinvested:         
Initial shares    147,061    425,460 
Service shares    117,909    416,619 
Cost of shares redeemed:         
Initial shares    (7,405,008)    (4,410,004) 
Service shares    (6,825,256)    (7,450,421) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (10,559,382)    (3,810,295) 
Total Increase (Decrease) in Net Assets    (7,070,217)    3,614,766 
Net Assets ($):         
Beginning of Period    78,905,598    75,290,832 
End of Period    71,835,381    78,905,598 
Undistributed investment income—net    890,106    260,160 

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS (continued)

    Year Ended December 31, 
    2005    2004 
Capital Share Transactions:         
Initial Shares         
Shares sold    130,688    329,304 
Shares issued for dividends reinvested    9,624    28,343 
Shares redeemed    (473,451)    (307,176) 
Net Increase (Decrease) in Shares Outstanding    (333,139)    50,471 
Service Shares         
Shares sold    90,077    172,487 
Shares issued for dividends reinvested    7,696    27,718 
Shares redeemed    (437,238)    (516,874) 
Net Increase (Decrease) in Shares Outstanding    (339,465)    (316,669) 

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.

        Year Ended December 31,     
Initial Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    15.52    14.08    11.06    14.54    15.10 
Investment Operations:                     
Investment income—net a    .20    .17    .12    .09    .12 
Net realized and unrealized                     
gain (loss) on investments    .64    1.46    3.01    (3.46)    (.45) 
Total from Investment Operations    .84    1.63    3.13    (3.37)    (.33) 
Distributions:                     
Dividends from investment income—net    (.07)    (.19)    (.11)    (.11)    (.01) 
Dividends from net realized                     
gain on investments    —    —    —    —    (.22) 
Total Distributions    (.07)    (.19)    (.11)    (.11)    (.23) 
Net asset value, end of period    16.29    15.52    14.08    11.06    14.54 
Total Return (%)    5.42    11.60    28.42    (23.29)    (2.08) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .86    .85    .85    .88    .98 
Ratio of net expenses                     
to average net assets    .86    .85    .85    .88    .96 
Ratio of net investment income                     
to average net assets    1.28    1.16    .99    .69    .83 
Portfolio Turnover Rate    55.38    76.19    55.90    65.72    65.13 
Net Assets, end of period ($ x 1,000)    32,189    35,847    31,812    27,354    37,595 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

The Portfolio 17

FINANCIAL HIGHLIGHTS (continued)
        Year Ended December 31,     
Service Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    15.54    14.08    11.07    14.54    15.09 
Investment Operations:                     
Investment income—net a    .18    .14    .10    .08    .08 
Net realized and unrealized                     
gain (loss) on investments    .63    1.47    3.00    (3.45)    (.40) 
Total from Investment Operations    .81    1.61    3.10    (3.37)    (.32) 
Distributions:                     
Dividends from investment income—net    (.04)    (.15)    (.09)    (.10)    (.01) 
Dividends from net realized                     
gain on investments    —    —    —    —    (.22) 
Total Distributions    (.04)    (.15)    (.09)    (.10)    (.23) 
Net asset value, end of period    16.31    15.54    14.08    11.07    14.54 
Total Return (%)    5.25    11.44    28.14    (23.31)    (2.08) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.11    1.10    1.10    1.13    1.27 
Ratio of net expenses                     
to average net assets    1.00    1.00    1.00    1.00    1.00 
Ratio of net investment income                     
to average net assets    1.14    .99    .84    .62    .61 
Portfolio Turnover Rate    55.38    76.19    55.90    65.72    65.13 
Net Assets, end of period ($ x 1,000)    39,646    43,059    43,478    33,426    21,469 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

18

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company operating as a series company currently offering nine series, including the Core Value Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series.The portfolio’s investment objective is to provide long-term capital growth. The Dreyfus Corporation (the “Manager” 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 (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 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.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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The portfolio will be 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 would bear 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

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (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.

(e) Federal income taxes: It is the policy of the portfolio to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $890,106, accumulated capital losses $254,596 and unrealized appreciation $10,696,865.

The accumulated capital loss carryover is available 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 periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $264,970 and $842,079, respectively.

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 December 31, 2005, was approximately $10,700, with a related weighted average annualized interest rate of 3.36% .

22

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, 2005 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 December 31, 2005, the Manager waived receipt of fees of $45,726, 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 December 31, 2005, Service shares were charged $101,472 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $81 pursuant to the transfer agency agreement.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (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 December 31, 2005, the portfolio was charged $16,675 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $46,354, Rule 12b-1 distribution plan fees $8,504, custodian fees $3,889, chief compliance officer fees $1,858 and transfer agency per account fees $20, which are offset against an expense reimbursement currently in effect in the amount of $3,276.

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

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $40,765,758 and $50,452,208, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $61,113,608; accordingly, accumulated net unrealized appreciation on investments was $10,696,865, consisting of $12,342,960 gross unrealized appreciation and $1,646,095 gross unrealized depreciation.

24

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Core Value Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, Core Value Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights,assessing the accounting principles used and significant estimates made by management,and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with oth-ers.We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Core Value Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U. S. generally accepted accounting principles.

  New York, New York
February 6, 2006

The Portfolio 25

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates 100% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

26
INFORMATION ABOUT THE REVIEW 
AND APPROVAL OF THE PORTFOLIO’S 
INVESTMENT ADVISORY AGREEMENT (Unaudited) 

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one-year term, pursuant to which 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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and 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 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 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.

The Portfolio 27

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

Comparative Analysis of the Portfolio’s Performance, Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and 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.The Board

28

members also noted that the portfolio’s performance was showing a trend of improvement.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 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, 2005.

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 Similar Accounts as compared to managing and providing services to the portfolio; it was noted that the Similar Funds were mutual funds included in the “large-cap value” funds category by Lipper.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 port-

The Portfolio 29

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

folio 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 received and considered information 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 Manager’s representatives stated that the methodology had also 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 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,

30

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 showing a trend of improvement.

• The Board concluded that the fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, including the Manager’s current undertaking to limit the portfolio’s expense ratio, 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 Portfolio 31

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

• 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 until February 28, 2006, prior to which the Board will re-consider the renewal for the remainder of the annual period (through August 31, 2006).

32
BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

The Portfolio 33

B O A R D M E M B E R S    I N F O R M AT I O N ( U n a u d i t e d ) (continued) 
 
 
 
David W. Burke    (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution    Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
    ——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
    ——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
    ——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
    ——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

34

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

The Portfolio 35

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

36

For More    Information 
 
Dreyfus    Transfer Agent & 
Investment Portfolios,    Dividend Disbursing Agent 
Core Value Portfolio     
    Dreyfus Transfer, Inc. 
200 Park Avenue     
    200 Park Avenue 
New York, NY 10166     
    New York, NY 10166 
 
Investment Adviser    Distributor 
The Dreyfus Corporation     
    Dreyfus Service Corporation 
200 Park Avenue     
    200 Park Avenue 
New York, NY 10166     
    New York, NY 10166 
Custodian     
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
16    Statement of Assets and Liabilities 
17    Statement of Operations 
18    Statement of Changes in Net Assets 
19    Financial Highlights 
21    Notes to Financial Statements 
27    Report of Independent Registered 
    Public Accounting Firm 
28    Important Tax Information 
29    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
35    Board Members Information 
37    Officers of the Fund 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios, 
Emerging Leaders Portfolio 

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Emerging Leaders Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio managers, John S. Cone, Oliver Buckley, Langton C. Garvin and Kristin Crawford, each of whom is a member of the Smallcap Team of Franklin Portfolio Associates, LLC.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

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 12-month period ended December 31, 2005, the portfolio produced total returns of 5.07% for its Initial shares and 4.75% for its Service shares.1 In comparison,the Russell 2000 Index (the “Index”),the portfolio’s benchmark, produced a total return of 4.55% for the same period.2

We attribute the market’s rise to sustained U.S. economic growth. Although rising interest rates held back the stock market over the first half of 2005, positive corporate financial results enabled the market to post significant gains during the second half. Energy stocks led the market’s rise, buoyed by higher oil and gas prices. In addition, investors tended to reward companies that met or exceeded earnings and revenue expectations, while punishing those reporting disappointing financial results.The portfolio delivered slightly higher returns than its benchmark on the strength of its holdings in the producer durables, health care and energy sectors during the first half of the year, and good individual stock selections in energy and other sectors during the second half of the year.

What is the portfolio’s investment approach?

With the appointment of the current management team on June 30, 2005, the portfolio employed 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 earnings 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;

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

  • long-term growth, based on measures that reflect the changes in estimated long-term earnings growth over multiple horizons; and
  • additional factors, such as technical factors, trading by company insiders or share issuance/buy-back data.

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?

During the first six months of 2005, the portfolio achieved relatively strong returns in the producer durables sector, primarily due to investments in aerospace contractors, such as United Defense Industries. Investments in health care services providers, such as Genesis HealthCare, Apria Healthcare Group and LifePoint Hospitals, which were later sold, also boosted returns as labor markets strengthened and benefit-plan enrollments increased. Overweighted exposure to energy stocks and good individual energy stock selections within the sector — such as Cabot Oil & Gas, which was sold during the reporting period, and TODCO — enhanced the portfolio’s performance relative to the benchmark. On the other hand, disappointing stock selections in the technology area offset a portion of these gains.

During the second half of the reporting period, the investment approach of the new portfolio managers caused the impact of sector and industry weightings to diminish. Instead, to a larger extent, returns relative to the benchmark were determined by the performance of individual stocks identified using value and earnings/momentum computer models. During these months, the portfolio’s earnings/momentum-based models proved more effective than its value-based metrics in identifying strong performing stocks. Consequently, relatively strong gains in several of the portfolio’s holdings were offset by disappointing results from others. Many of the portfolio’s better performers included energy companies, including Veritas DGC, Comstock Resources and

4

Unit Corp. Other strong contributors to the portfolio’s relative performance included Hologic, a provider of imaging systems focused on women’s health care, aerospace contractor AAR and consumer goods manufacturer Playtex Products. Notably weak performers included Petco Animal Supplies, generic drug maker Andrx, radio broadcaster Spanish Broadcasting System, and semiconductor maker SigmaTel.

What is the portfolio’s current strategy?

We remain committed to adding value through our quantitative, “bottom-up” investment approach. As of the end of the reporting period, the portfolio’s exposures to various sectors and industries fell within 2% of the Index’s weightings. Holdings within each sector have been diversified across stocks that exhibit the value, growth and other characteristics favored by our disciplined process. Currently, various value-based metrics account for roughly a 45% weighting in our process, earnings/momentum-based metrics account for approximately 45%, and additional factors account for about 10%.Together, these factors comprise a stock selection process that provides investors with diversified exposure to the small-cap equities market.

January 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. 
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 managers are dual employees of Franklin 
    Portfolio Associates and Dreyfus. 

The Portfolio 5

PORTFOLIO PERFORMANCE 

Average Annual Total Returns as of 12/31/05         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    12/15/99    5.07%    9.11%    13.86% 
Service shares    12/15/99    4.75%    8.86%    13.64% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
† Source: Lipper Inc. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
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 portfolio’s asset base grows. 
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. 

6

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

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Index is an unmanaged index of small-cap stock market performance and is composed of the 2,000 smallest companies in the Russell 3000 Index.The Russell 3000 Index is composed of the 3,000 largest U.S. companies based on total market capitalization.The Index does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.37    $ 6.67 
Ending value (after expenses)    $1,068.00    $1,065.90 

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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.24    $ 6.51 
Ending value (after expenses)    $1,020.01    $1,018.75 
 
† Expenses are equal to the portfolio’s annualized expense ratio of 1.03% for Initial shares and 1.28% for Service shares, 
multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 

8
STATEMENT OF INVESTMENTS 
December 31, 2005 

Common Stocks—99.6%    Shares    Value ($) 
Advertising—.7%         
Arbitron    6,400    243,072 
Aerospace & Defense—3.5%         
AAR    23,900 a    572,405 
Armor Holdings    9,000 a    383,850 
DRS Technologies    6,100    313,662 
        1,269,917 
Air Freight—.1%         
ABX Air    4,000 a    31,320 
Apparel—4.2%         
Aeropostale    20,000 a    526,000 
Pacific Sunwear of California    22,500 a    560,700 
Quiksilver    17,700 a    244,968 
Talbots    6,200    172,484 
        1,504,152 
Automotive—.3%         
Barnes Group    2,800    92,400 
Basic Industries—1.1%         
Reliance Steel & Aluminum    6,800    415,616 
Biotechnology—2.2%         
Geron    28,400 a    244,524 
Introgen Therapeutics    28,600 a,b    150,722 
Lifecell    14,800 a    282,236 
Orchid Cellmark    16,400 a    124,640 
        802,122 
Broadcasting—.9%         
Sinclair Broadcast Group, Cl. A    10,200    93,840 
Spanish Broadcasting System, Cl. A    48,200 a    246,302 
        340,142 
Casinos & Gaming—.5%         
Shuffle Master    7,100 a    178,494 
Chemicals/Fibers & Diversified—.5%     
Pioneer Cos.    6,100 a    182,817 
Commercial & Professional Services—.0%     
Geo Group    700 a    16,051 

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Computers—3.0%         
Digi International    5,200 a    54,548 
Komag    12,900 a    447,114 
Netgear    30,800 a    592,900 
        1,094,562 
Consumer Cyclical—.5%         
CKE Restaurants    13,500    182,385 
Consumer Services—1.5%         
Charles & Colvard    3,800 b    76,760 
Fossil    17,100 a    367,821 
Sotheby's Holdings, Cl. A    5,400 a    99,144 
        543,725 
Electronics—1.1%         
American Superconductor    6,500 a    51,155 
ATMI    9,900 a    276,903 
Conn's    2,000 a    73,740 
        401,798 
Engineering & Construction—.7%         
Washington Group International    4,600 a    243,662 
Environmental Services—.1%         
American Ecology    2,200    31,746 
Financial Services—17.2%         
Accredited Home Lenders Holding    9,500 a    471,010 
Columbia Banking System    7,500    214,125 
Corus Bankshares    6,400    360,128 
First Busey    3,800    79,382 
FirstFed Financial    2,800 a    152,656 
GATX    13,000    469,040 
Independent Bank/MI    6,825    185,845 
MAF Bancorp    10,000    413,800 
MainSource Financial Group    5,100    91,035 
Mercantile Bank    4,115    158,428 
National Financial Partners    8,900    467,695 
Nelnet, Cl. A    9,700 a    394,596 
Partners Trust Financial Group    44,030    530,561 
Portfolio Recovery Associates    9,600 a    445,824 

10
Common Stocks (continued)    Shares    Value ($) 
Financial Services (continued)         
Prosperity Bancshares    12,800    367,872 
Provident New York Bancorp    41,000    451,410 
R-G Financial, Cl. B    23,100    304,920 
Renasant    2,800    88,564 
Rent-Way    20,400 a    130,356 
Texas Regional Bancshares, Cl. A    16,000    452,800 
        6,230,047 
Foods—1.5%         
Ralcorp Holdings    13,500 a    538,785 
Forest & Paper Products—.2%         
Greif, Cl. A    1,200    79,536 
Health Care—7.2%         
Albany Molecular Research    22,100 a    268,515 
Aspect Medical Systems    3,300 a    113,355 
Chemed    6,700    332,856 
Computer Programs and Systems    1,100    45,573 
Hologic    8,800 a    333,696 
Meridian Bioscience    3,150    63,441 
Nektar Therapeutics    6,300 a    103,698 
Neurometrix    11,100 a    302,808 
OraSure Technologies    33,900 a    298,998 
Per-Se Technologies    4,700 a    109,792 
Rotech Healthcare    13,600 a    227,936 
Trizetto Group    24,000 a    407,760 
        2,608,428 
Homebuilding—1.5%         
Brookfield Homes    2,196    109,207 
WCI Communities    11,500 a    308,775 
William Lyon Homes    1,100 a    110,990 
        528,972 
Hotels, Resorts & Cruise Lines—1.4%     
Intrawest    9,900    286,605 
La Quinta    19,800 a    220,572 
        507,177 

The Portfolio 11

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Household & Personal Products—1.0%     
Playtex Products    27,600 a    377,292 
Industrial—3.2%         
Bucyrus International, Cl. A    7,000    368,900 
EnPro Industries    2,300 a    61,985 
HB Fuller    9,700    311,079 
Headwaters    11,600 a    411,104 
        1,153,068 
Information Technology—8.0%         
Anteon International    9,400 a    510,890 
Intergraph    8,300 a    413,423 
Mantech International, Cl. A    9,200 a    256,312 
Mapinfo    40,000 a    504,400 
Perot Systems, Cl. A    21,300 a    301,182 
SYKES Enterprises    25,000 a    334,250 
Wind River Systems    37,500 a    553,875 
        2,874,332 
Insurance/Multiline—.8%         
Max Re Capital    11,600    301,252 
Internet Software—1.4%         
InfoSpace    15,100 a    389,882 
Internet Capital Group    13,000 a    106,860 
        496,742 
Machinery/Agricultural/Trucks—4.1%     
AGCO    26,900 a    445,733 
Gardner Denver    3,900 a    192,270 
Manitowoc    6,300    316,386 
Wabtec    19,800    532,620 
        1,487,009 
Metals—2.2%         
Agnico-Eagle Mines    24,100    476,216 
Minefinders    30,000 a    154,200 
NS Group    1,400 a    58,534 
Steel Technologies    4,400    123,156 
        812,106 
Oil & Gas—7.2%         
Comstock Resources    14,300    436,293 

12

Common Stocks (continued)    Shares    Value ($) 
Oil & Gas (continued)         
Remington Oil & Gas    17,500 a    638,750 
Todco, Cl. A    14,100    536,646 
Unit    6,900 a    379,707 
Veritas DGC    16,800 a    596,232 
        2,587,628 
Personnel Services—.9%         
Gentiva Health Services    3,600 a    53,064 
Hudson Highland Group    5,000 a    86,800 
Kforce    3,700 a    41,292 
Spherion    13,800 a    138,138 
        319,294 
Pharmaceutical—4.3%         
Andrx    25,000 a    411,750 
First Horizon Pharmaceutical    25,900 a    446,775 
United Therapeutics    10,200 a    705,024 
        1,563,549 
Publishing/Newspapers—.2%         
Journal Register    4,700    70,265 
Real Estate—4.7%         
Arbor Realty Trust    9,400    243,648 
Boykin Lodging    13,400 a    163,748 
Equity Inns    19,800    268,290 
FelCor Lodging Trust    17,900    308,059 
Getty Realty    3,900    102,531 
Gramercy Capital/New York    4,100    93,398 
HomeBanc/Atlanta, GA    21,200    158,576 
LTC Properties    7,900    166,137 
National Health Investors    5,500    142,780 
Universal Health Realty Income Trust    1,100    34,474 
        1,681,641 
Recreational Products/Toys—.9%         
Jakks Pacific    7,000 a    146,580 
WMS Industries    7,800 a    195,702 
        342,282 
Retail—2.6%         
Asbury Automotive Group    2,800 a    46,088 

The Portfolio 13

STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Retail (continued)         
Hibbett Sporting Goods    4,050 a    115,344 
Petco Animal Supplies    17,000 a    373,150 
Sonic Automotive    17,800    396,584 
        931,166 
Semiconductors—1.7%         
Power Integrations    19,000 a    452,390 
Sigmatel    11,000 a    144,100 
        596,490 
Telecommunications—4.7%         
Alaska Communications Systems Group    6,600    67,056 
Atheros Communications    42,500 a    552,500 
CommScope    12,400 a    249,612 
Comtech Telecommunications    11,700 a    357,318 
EndWave    12,000 a    141,360 
Spectralink    13,700    162,619 
Symmetricom    19,500 a    165,165 
        1,695,630 
Utilities—1.0%         
Avista    3,900    69,069 
El Paso Electric    13,500 a    284,040 
        353,109 
Wholesale—.8%         
Hughes Supply    8,500    304,725 
Total Common Stocks         
(cost $32,401,607)        36,014,506 

14
Other Investment—.5%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $189,000)    189,000 c    189,000 
 
Investment of Cash Collateral         
for Securities Loaned—.5%         
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $170,208)    170,208 c    170,208 
Total Investments (cost $32,760,815)    100.6%    36,373,714 
Liabilities, Less Cash and Receivables    (.6%)    (210,658) 
Net Assets    100.0%    36,163,056 

a Non-income producing. 
b All or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio's 
securities on loan is $149,549 and the total market value of the collateral held by the portfolio is $170,208. 
c Investment in affiliated money market mutual fund. 

Portfolio Summary†             
 
    Value (%)        Value (%) 
Financial Services    17.2    Pharmaceutical    4.3 
Information Technology    8.0    Apparel    4.2 
Oil & Gas    7.2    Machinery/Agricultural/Trucks    4.1 
Health Care    7.2    Other    39.0 
Telecommunications    4.7         
Real Estate    4.7        100.6 
 
† Based on net assets.             
See notes to financial statements.             

The Portfolio 15

STATEMENT OF ASSETS AND LIABILITIES 
December 31, 2005 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments     
(including securities on loan, valued at $149,549)—Note 1(b):     
Unaffiliated issuers    32,401,607    36,014,506 
Affiliated issuers    359,208    359,208 
Cash        2,588 
Dividends and interest receivable        35,577 
Receivable for shares of Beneficial Interest subscribed    6,669 
Prepaid expenses        610 
        36,419,158 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    35,556 
Liability for securities on loan—Note 1(b)    170,208 
Payable for shares of Beneficial Interest redeemed    12,936 
Accrued expenses        37,402 
        256,102 
Net Assets ($)        36,163,056 
Composition of Net Assets ($):         
Paid-in capital        27,388,794 
Accumulated undistributed investment income—net    5,312 
Accumulated net realized gain (loss) on investments    5,156,051 
Accumulated net unrealized appreciation     
(depreciation) on investments        3,612,899 
Net Assets ($)        36,163,056 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    20,677,224    15,485,832 
Shares Outstanding    901,423    683,661 
Net Asset Value Per Share ($)    22.94    22.65 

See notes to financial statements.
16
STATEMENT OF OPERATIONS 
Year Ended December 31, 2005 

Investment Income ($):     
Income:     
Cash dividends (net of $1,213 foreign taxes withheld at source):     
Unaffiliated issuers    316,701 
Affiliated issuers    21,375 
Income from securities lending    50,092 
Total Income    388,168 
Expenses:     
Investment advisory fee—Note 3(a)    329,259 
Distribution fees—Note 3(b)    39,175 
Auditing fees    26,699 
Custodian fees—Note 3(b)    6,369 
Trustees' fees and expenses—Note 3(c)    4,134 
Prospectus and shareholders' reports    2,473 
Shareholder servicing costs—Note 3(b)    1,488 
Legal fees    901 
Interest expense—Note 2    237 
Miscellaneous    5,560 
Total Expenses    416,295 
Investment (Loss)—Net    (28,127) 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    5,238,844 
Net unrealized appreciation (depreciation) on investments    (3,586,099) 
Net Realized and Unrealized Gain (Loss) on Investments    1,652,745 
Net Increase in Net Assets Resulting from Operations    1,624,618 

See notes to financial statements.

The Portfolio 17

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment (loss)—net    (28,127)    (164,684) 
Net realized gain (loss) on investments    5,238,844    6,072,733 
Net unrealized appreciation         
(depreciation) on investments    (3,586,099)    (1,211,407) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    1,624,618    4,696,642 
Dividends to Shareholders from ($):         
Net realized gain on investments:         
Initial shares    (1,097,280)    (1,740,420) 
Service shares    (882,945)    (1,373,278) 
Total Dividends    (1,980,225)    (3,113,698) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    4,091,471    3,844,429 
Service shares    1,040,178    1,766,673 
Dividends reinvested:         
Initial shares    1,097,280    1,740,420 
Service shares    882,945    1,373,278 
Cost of shares redeemed:         
Initial shares    (6,009,294)    (3,985,659) 
Service shares    (3,050,618)    (3,354,594) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (1,948,038)    1,384,547 
Total Increase (Decrease) in Net Assets    (2,303,645)    2,967,491 
Net Assets ($):         
Beginning of Period    38,466,701    35,499,210 
End of Period    36,163,056    38,466,701 
Undistributed (distributions in excess of)         
investment income—net    5,312    (17,894) 
Capital Share Transactions (Shares):         
Initial Shares         
Shares sold    185,857    167,440 
Shares issued for dividends reinvested    50,871    75,375 
Shares redeemed    (271,360)    (178,179) 
Net Increase (Decrease) in Shares Outstanding    (34,632)    64,636 
Service Shares         
Shares sold    47,206    77,490 
Shares issued for dividends reinvested    41,356    60,047 
Shares redeemed    (143,572)    (151,655) 
Net Increase (Decrease) in Shares Outstanding    (55,010)    (14,118) 

See notes to financial statements.
18
FINANCIAL HIGHLIGHTS 

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

        Year Ended December 31,     
Initial Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    23.06    21.92    14.85    18.53    17.05 
Investment Operations:                     
Investment income (loss)—net a    .01    (.08)    (.12)    (.09)    (.08) 
Net realized and unrealized gain                     
(loss) on investments    1.08    3.24    7.19    (3.59)    1.57 
Total from Investment Operations    1.09    3.16    7.07    (3.68)    1.49 
Distributions:                     
Dividends from net realized gain                     
on investments    (1.21)    (2.02)    —    —    (.01) 
Net asset value, end of period    22.94    23.06    21.92    14.85    18.53 
Total Return (%)    5.07    14.42    47.61    (19.86)    8.74 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.03    1.13    1.15    1.17    1.62 
Ratio of net expenses                     
to average net assets    1.03    1.09    1.15    1.17    1.46 
Ratio of net investment income                     
(loss) to average net assets    .03    (.35)    (.67)    (.51)    (.44) 
Portfolio Turnover Rate    68.78    88.95    111.28    127.24    175.21 
Net Assets, end of period ($ x 1,000)    20,677    21,590    19,102    11,777    13,308 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

The Portfolio 19

FINANCIAL HIGHLIGHTS (continued)
        Year Ended December 31,     
Service Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    22.85    21.78    14.79    18.51    17.05 
Investment Operations:                     
Investment (loss)—net a    (.05)    (.13)    (.16)    (.13)    (.08) 
Net realized and unrealized gain                     
(loss) on investments    1.06    3.22    7.15    (3.59)    1.55 
Total from Investment Operations    1.01    3.09    6.99    (3.72)    1.47 
Distributions:                     
Dividends from net realized gain                     
on investments    (1.21)    (2.02)    —    —    (.01) 
Net asset value, end of period    22.65    22.85    21.78    14.79    18.51 
Total Return (%)    4.75    14.19    47.16    (20.04)    8.62 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.28    1.38    1.41    1.43    1.80 
Ratio of net expenses                     
to average net assets    1.28    1.32    1.41    1.43    1.50 
Ratio of net investment (loss)                     
to average net assets    (.22)    (.59)    (.92)    (.79)    (.49) 
Portfolio Turnover Rate    68.78    88.95    111.28    127.24    175.21 
Net Assets, end of period ($ x 1,000)    15,486    16,877    16,397    9,631    4,730 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

20

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

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

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

(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. Investments in registered investment companies are valued at their net asset value. Bid price is used when no asked price is available. 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.

22

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.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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The portfolio will be 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 would bear 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, 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 23

NOTES TO FINANCIAL STATEMENTS (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.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $810,610, undistributed capital gains $4,357,516 and unrealized appreciation $3,606,136.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004, were as follows: ordinary income $601,753 and $0 and long-term capital gains $1,378,472 and $3,113,698, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences primarily due to the tax treatment for net operating losses and real estate investment trusts, the portfolio increased accumulated undistributed investment income-net by $51,333 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

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

The average daily amount of borrowings outstanding under the line of credit during the period ended December 31, 2005, was $4,900, with a related weighted average annualized interest rate of 4.81% .

24

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, 2005 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 1.50% of the value of the average daily net assets of their class. During the period ended December 31, 2005, 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 December 31, 2005, Service shares were charged $39,175 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $145 pursuant to the transfer agency agreement.

The Portfolio 25

NOTES TO FINANCIAL STATEMENTS (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 December 31, 2005, the portfolio was charged $6,369 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $28,532, Rule 12b-1 distribution plan fees $3,337, custodian fees $1,800, chief compliance officer fees $1,858 and transfer agency per account fees $29.

(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 December 31, 2005, amounted to $24,750,226 and $27,637,781, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $32,767,578; accordingly, accumulated net unrealized appreciation on investments was $3,606,136, consisting of $5,714,751 gross unrealized appreciation and $2,108,615 gross unrealized depreciation.

26
REPORT OF INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM 

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Emerging Leaders Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, Emerging Leaders Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Emerging Leaders Portfolio at December 31,2005,the results of its operations for the year then ended,the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York 
February 6, 2006 

The Portfolio 27

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates $.8430 per share as a long-term capital gain distribution of the $1.2110 per share paid on March 31, 2005 and also the portfolio hereby designates 33.72% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

28
INFORMATION ABOUT THE REVIEW 
AND APPROVAL OF THE PORTFOLIO’S 
INVESTMENT ADVISORY AGREEMENT (Unaudited) 

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one year term, pursuant to which 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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and 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 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 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.

The Portfolio 29

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

Comparative Analysis of the Portfolio’s Performance and Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and 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 average of Comparison Group I for the one-year period and was above the averages of Comparison Group I for the 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 average of Comparison Group II for the one-year period and was above the averages of Comparison Group II for the three- and five-year periods. 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.

30

The Board noted that the total return performance of the portfolio’s Initial shares was below the Comparison Group I Lipper category average for the one-year period and was above the Comparison Group I Lipper category averages for the three- and five-year periods, and that the total return performance of the portfolio’s Service shares was below the Comparison Group II Lipper category average for the one-year period and was above the Comparison Group II Lipper category averages for the three- and five-year periods. The Board members noted that the comparison groups include funds that held more micro-cap stocks, which had outperformed small-cap stocks during the past year, than did the portfolio.

The Board members also discussed the portfolio’s expense ratios, noting that the expense ratio of the portfolio’s Initial shares was higher than the average expense ratio of Comparison Group I, and that the expense ratio of the portfolio’s Service shares was higher 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 bottom half (i.e., higher than a majority of other funds) in each comparison group.The Board members also considered the Manager’s contractual undertaking for the portfolio in effect through December 31, 2005.

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 noted that there were no other accounts managed or sub-advised by the Manager or its affiliates with similar investment objectives, policies and strategies as the portfolio. The Similar Funds were mutual funds included in the “small-cap core” and “small-cap core-variable insurance products” funds categories by Lipper.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 the same as or lower than the fee borne by

The Portfolio 31

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

the portfolio, except for one fund that had a higher total management and administration fee than did the portfolio. The Board members considered the relevance of the fee information provided for the Similar Funds managed by the Manager to evaluate the appropriateness and reasonableness of the portfolio’s advisory fees. The Board acknowledged that differences paid by the Similar Funds 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 received and considered information 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 Manager’s representatives stated that the methodology had also 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 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

32

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 noted the portfolio’s one-year total return performance, it was satisfied with the portfolio’s overall performance.

• The Board concluded that the fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, including the Manager’s current undertaking to limit the portfolio’s expense ratio, 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 Portfolio 33

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

• 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.

34
BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

The Portfolio 35

BOARD MEMBERS INFORMATION (Unaudited) (continued) 
 
 
 
David W. Burke (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

36

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since 
March 2000. 

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since 
March 2000. 

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President 
and Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and 
Assistant Secretary since August 2005. 

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice 
President and Assistant Secretary 
since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and 
Assistant Secretary since August 2005. 

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice 
President and Assistant Secretary 
since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

The Portfolio 37

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT R. MULLERY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since 
November 2001. 

Director-Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer 
since December 2002. 

Senior Accounting Manager - Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager — Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer 
since December 2002. 

Senior Accounting Manager - Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer 
since December 2005. 

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance 
Officer since October 2004. 

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

38

NOTES

For More Information

Dreyfus Investment Portfolios,    Transfer Agent & 
Emerging Leaders Portfolio    Dividend Disbursing Agent 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
Investment Adviser    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue     
    Dreyfus Service Corporation 
New York, NY 10166     
    200 Park Avenue 
Custodian    New York, NY 10166 
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
13    Statement of Assets and Liabilities 
14    Statement of Operations 
15    Statement of Changes in Net Assets 
16    Financial Highlights 
18    Notes to Financial Statements 
24    Report of Independent Registered 
    Public Accounting Firm 
25    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
31    Board Members Information 
33    Officers of the Fund 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios,

Founders Discovery Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Founders Discovery Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio managers, James Padgett and Brad Orr, of Founders Asset Management LLC, the portfolio’s sub-investment adviser.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation
January 17, 2006
2

DISCUSSION OF PERFORMANCE

James Padgett and Brad Orr, Portfolio Managers

Founders Asset Management LLC, Sub-Investment Adviser

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

For the 12-month period ended December 31, 2005, the portfolio produced total returns of –0.10% for its Initial shares and –0.31% for its Service shares.1 In comparison, the Russell 2000 Growth Index, the portfolio’s benchmark, produced a total return of 4.15% for the reporting period.2 The portfolio’s former benchmark, the Russell 2000 Index, produced a total return of 4.55% for the same period.3

Although the U.S. economy expanded at a steady and moderate pace during 2005, investors were concerned for much of the year about the potential impact of rising interest rates and higher energy prices on small companies’ earnings.As a result, the market languished for much of the year before rallying modestly in the fourth quarter. Despite improved relative performance during the market rally late in the year, the portfolio’s overall performance lagged its benchmark, primarily due to declines experienced by a handful of individual holdings.

On July 13, 2005, the portfolio’s benchmark was changed to the Russell 2000 Growth Index from the Russell 2000 Index because the Russell 2000 Growth Index is expected to better reflect the characteristics of the portfolio’s securities.

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,

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

with particular emphasis on companies that we believe are well-managed and well-positioned within their industries.

What other factors influenced the portfolio’s performance?

Stocks were influenced in 2005 by concerns regarding the potential impact of soaring energy prices and rising short-term interest rates on future economic growth. Consequently, investors remained relatively risk averse, generally preferring value-oriented stocks over their growth-oriented counterparts. Investor sentiment began to improve late in the year, however, as oil and gas prices retreated from their previous highs and the Federal Reserve Board signaled that its interest-rate hikes might be coming to an end. Stocks rallied modestly as a result, enabling the portfolio’s benchmark to post positive returns for 2005.

Soaring oil and gas prices helped drive energy stocks sharply higher, accounting for a substantial portion of the benchmark’s gain.The portfolio participated in the energy sector’s advance, benefiting from successful individual stock selections, such as drill pipe supplier Grant Prideco and onshore contract driller Patterson-UTI Energy. Holdings in the industrials group also fared relatively well on the strength of favorable stock selections, including Hughes Supply, a wholesale distributor of industrial and construction materials that was acquired by Home Depot shortly after the reporting period ended. Finally, the portfolio benefited from its relatively light exposure to the lagging health care sector as well as positive contributions from individual health care investments. For example, biotechnology firm Alkermes achieved sales gains for existing products and moved closer to FDA approval for a new treatment for alcohol dependency.

Strength in these areas was offset by weakness among a number of individual holdings, however. Despite an attractive valuation and high levels of revenue growth, mattress manufacturer Tempur-Pedic International reported third-quarter earnings that were slightly below analysts’ forecasts, and the company reduced future earnings guidance. Investors reacted negatively to this news, and we sold the portfolio’s position in Tempur-Pedic.WMS Gaming, a leading maker of video slot machines, also disappointed when it did not meet analysts’ ambitious earnings expectations due to product-specific issues and lackluster conditions in the gaming industry. However, we believe that the company’s product problems are resolved and business prospects should improve as new casinos are built in U.S. and overseas markets.

Among consumer discretionary stocks, retailer PETCO Animal Supplies was hurt by merchandising issues, and we sold the stock after a modest rebound. Finally, the financials sector detracted from the

4

portfolio’s performance when institutional education loan provider First Marblehead lost a key customer. However, the company continues to wield competitive advantages in its industry, which we believe position it well for the future.

What is the portfolio’s current strategy?

Using our longstanding “bottom-up” investment process, we have continued to find what we believe are attractive opportunities among small companies. In addition, changes in the growth prospects and valuations of individual companies have created some shifts in the portfolio’s composition. For instance, after maintaining relatively heavy exposure to consumer discretionary stocks for much of 2005, we recently redeployed some assets to opportunities in other areas, including the health care and technology sectors. Despite a disappointing year in 2005, we believe that our focus on seeking well-managed, well-positioned small-cap companies has the potential to help the portfolio achieve better results over the longer term.

January 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. 
3    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 market performance 
    and is composed of the 2,000 smallest companies in the Russell 3000 Index.The Russell 3000 
    Index is composed of the 3,000 largest U.S. companies based on total market capitalization. 

The Portfolio 5

PORTFOLIO PERFORMANCE

Average Annual Total Returns as of 12/31/05         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    12/15/99    (0.10)%    (4.05)%    (3.91)% 
Service shares    12/15/99    (0.31)%    (4.21)%    (4.04)% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
† Source: Lipper Inc. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
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. 
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. 

6

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, Founders Discovery Portfolio on 12/15/99 (inception date of Initial shares) to a $10,000 investment made in each of the Russell 2000 Growth Index and the Russell 2000 Index on that date. For comparative purposes, the value of the Russell 2000 Growth Index and the Russell 2000 Index on 11/30/99 is used as the beginning value on 12/15/99. On July 13, 2005, the portfolio’s benchmark changed to the Russell 2000 Growth Index from the Russell 2000 Index because the Russell 2000 Growth Index is expected to better reflect the characteristics of the portfolio’s securities. The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The 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 Russell 2000 Index is an unmanaged index of small-cap stock market performance and is composed of the 2,000 smallest companies in the Russell 3000 Index.The Russell 3000 Index is composed of the 3,000 largest U.S. companies based on total market capitalization.The indices do not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.61    $ 6.59 
Ending value (after expenses)    $1,025.10    $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 December 31, 2005

    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.60    $ 6.56 
Ending value (after expenses)    $1,019.66    $1,018.70 

† Expenses are equal to the portfolio’s annualized expense ratio of 1.10% for Initial shares and 1.29% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8
  STATEMENT OF INVESTMENTS
December 31, 2005
Common Stocks—94.9%    Shares    Value ($) 
Airlines—.7%         
JetBlue Airways    12,785 a,b    196,633 
Application Software—5.8%         
Epicor Software    45,212 a    638,845 
Kronos/MA    13,421 a    561,803 
Witness Systems    17,499 a    344,205 
        1,544,853 
Banking & Finance—4.4%         
Affiliated Managers Group    8,994 a    721,769 
NewAlliance Bancshares    31,644    460,104 
        1,181,873 
Building Products—1.9%         
NCI Building Systems    11,659 a    495,274 
Casinos & Gaming—3.2%         
WMS Industries    34,220 a    858,580 
Construction & Engineering—3.6%     
Foster Wheeler    14,555 a    535,333 
Perini    17,187 a    415,066 
        950,399 
Distribution—1.7%         
Central European Distribution    11,265 a    452,177 
Diversified Metals & Mining—1.4%     
Alpha Natural Resources    7,003 a    134,528 
Glamis Gold    8,668 a    238,197 
        372,725 
Electronic Equipment Manufacturers—3.3%     
Aeroflex    57,635 a    619,576 
Plexus    10,752 a    244,500 
        864,076 
Health Care—15.0%         
Arthrocare    12,263 a    516,763 
Centene    16,245 a    427,081 
ev3    33,110 a    488,041 
Gen-Probe    10,110 a    493,267 
I-Flow    37,884 a    553,864 
Integra LifeSciences Holdings    11,935 a    423,215 
Kyphon    8,607 a    351,424 

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
LCA-Vision    6,588    312,996 
PSS World Medical    2,557 a    37,946 
United Surgical Partners International    12,091 a    388,726 
        3,993,323 
Homebuilding—.8%         
Levitt, Cl. A    9,227    209,822 
Hotels, Resorts & Cruise Lines—3.4%         
Gaylord Entertainment    11,947 a    520,770 
Kerzner International    5,700 a    391,875 
        912,645 
Human Resources—1.4%         
Resources Connection    13,809 a    359,863 
Insurance—2.8%         
American Equity Investment Life Holding    29,155    380,473 
HCC Insurance Holdings    12,393    367,824 
        748,297 
Internet Software—8.1%         
Digital River    18,816 a,b    559,588 
Digitas    49,549 a    620,353 
Earthlink    23,882 a    265,329 
Openwave Systems    20,347 a    355,462 
Redback Networks    25,727 a    361,722 
        2,162,454 
Leisure Facilities—1.4%         
Life Time Fitness    9,545 a    363,569 
Machinery/Construction & Mining—.7%         
Bucyrus International, Cl. A    3,413    179,865 
Medical Services—2.3%         
Aveta    28,795 a,c    388,733 
Option Care    16,725    223,446 
        612,179 
Oil & Gas—7.7%         
Grant Prideco    12,062 a    532,175 
KFX    30,485 a,b    521,598 

10
Common Stocks (continued)    Shares        Value ($) 
Oil & Gas (continued)             
Quicksilver Resources    15,296    a    642,585 
Superior Energy Services    17,108    a    360,123 
            2,056,481 
Pharmaceuticals—4.2%             
Alkermes    14,598    a    279,114 
MGI Pharma    32,343    a    555,006 
Salix Pharmaceuticals    16,290    a    286,378 
            1,120,498 
Retail—3.5%             
Pacific Sunwear of California    17,793    a    443,402 
Red Robin Gourmet Burgers    9,763    a    497,522 
            940,924 
Semiconductors—5.8%             
Entegris    49,583    a    467,072 
Microsemi    11,304    a    312,669 
RF Micro Devices    59,037    a    319,390 
Trident Microsystems    25,266    a    454,788 
            1,553,919 
Specialty Retail/Stores—4.1%             
Aaron Rents    21,925        462,179 
Guitar Center    12,450    a    622,625 
            1,084,804 
Trading Companies & Distributors—2.1%         
Hughes Supply    15,797        566,322 
Transportation—4.5%             
Diana Shipping    19,500    b    250,770 
Dryships    20,041    b    244,899 
HUB Group, Cl. A    9,619    a    340,032 
Old Dominion Freight Line    13,161    a    355,084 
            1,190,785 
Wireless Telecommunications—1.1%         
InPhonic    32,692    a,b    284,093 
Total Common Stocks             
(cost $23,575,326)            25,256,433 

The Portfolio 11

  STATEMENT OF INVESTMENTS (continued)
    Principal     
Short-Term Investments—7.5%    Amount ($)    Value ($) 
Commercial Paper;         
CAFCO LLC,         
4.12%, 1/3/2006         
(cost $1,989,545)    1,990,000 c    1,989,545 
 
Investment of Cash Collateral         
for Securities Loaned—6.7%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $1,789,279)    1,789,279 d    1,789,279 
Total Investments (cost $27,354,150)    109.1%    29,035,257 
Liabilities, Less Cash and Receivables    (9.1%)    (2,430,752) 
Net Assets    100.0%    26,604,505 

a    Non-income producing.             
b    All or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio’s 
    securities on loan is $1,747,070 and the total market value of the collateral held by the portfolio is $1,789,279. 
c    Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in 
    transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2005, these 
    securities amounted to $2,378,278 or 8.9% of net assets.     
d    Investment in affiliated money market mutual fund.         
 
 
 
 
Portfolio Summary †             
 
        Value (%)        Value (%) 
Health Care    15.0    Application Software    5.8 
Short-Term/        Transportation    4.5 
Money Market Investments    14.2    Banking & Finance    4.4 
Internet Software    8.1    Pharmaceuticals    4.2 
Oil & Gas    7.7    Other    39.4 
Semiconductors    5.8        109.1 
 
†    Based on net assets.             
See notes to financial statements.             

  12

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

    Cost    Value 
Assets ($):         
Investments in securities—         
See Statement of Investments (including securities     
on loan, valued at $1,747,070)—Note 1(b):     
Unaffiliated issuers    25,564,871    27,245,978 
Affiliated issuers    1,789,279    1,789,279 
Cash        42,196 
Receivable for investment securities sold    857,009 
Receivable for shares of Beneficial Interest subscribed    5,809 
Dividends receivable        4,476 
Prepaid expenses        684 
        29,945,431 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    30,330 
Liability for securities on loan—Note 1(b)    1,789,279 
Payable for investment securities purchased    1,481,035 
Payable for shares of Beneficial Interest redeemed    3,266 
Accrued expenses        37,016 
        3,340,926 
Net Assets ($)        26,604,505 
Composition of Net Assets ($):         
Paid-in capital        30,744,127 
Accumulated net realized gain (loss) on investments    (5,820,729) 
Accumulated net unrealized appreciation     
(depreciation) on investments        1,681,107 
Net Assets ($)        26,604,505 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    23,891,064    2,713,441 
Shares Outstanding    2,439,962    279,601 
Net Asset Value Per Share ($)    9.79    9.70 

See notes to financial statements.

The Portfolio 13

STATEMENT OF OPERATIONS
Year Ended December 31, 2005
Investment Income ($):     
Income:     
Cash dividends    74,200 
Interest    40,707 
Income on securities lending    17,020 
Total Income    131,927 
Expenses:     
Investment advisory fee—Note 3(a)    228,424 
Auditing fees    33,237 
Custodian fees—Note 3(b)    19,376 
Prospectus and shareholders’ reports    17,134 
Distribution fees—Note 3(b)    6,908 
Legal fees    1,270 
Trustees’ fees and expenses—Note 3(c)    1,019 
Shareholder servicing costs—Note 3(b)    825 
Loan commitment fees—Note 2    110 
Miscellaneous    4,697 
Total Expenses    313,000 
Less—waiver of fees due to     
undertaking—Note 3(a)    (11,603) 
Less—reduction in custody fees     
due to earnings credits—Note 1(b)    (1,184) 
Net Expenses    300,213 
Investment (Loss)—Net    (168,286) 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    3,515,976 
Net unrealized appreciation (depreciation) on investments    (3,350,978) 
Net Realized and Unrealized Gain (Loss) on Investments    164,998 
Net (Decrease) in Net Assets Resulting from Operations    (3,288) 

See notes to financial statements.
14

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment (loss)—net    (168,286)    (212,233) 
Net realized gain (loss) on investments    3,515,976    949,027 
Net unrealized appreciation         
(depreciation) on investments    (3,350,978)    1,528,166 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    (3,288)    2,264,960 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    3,683,886    6,618,699 
Service shares    145,106    153,634 
Cost of shares redeemed:         
Initial shares    (2,839,882)    (1,506,121) 
Service shares    (455,122)    (492,068) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    533,988    4,774,144 
Total Increase (Decrease) in Net Assets    530,700    7,039,104 
Net Assets ($):         
Beginning of Period    26,073,805    19,034,701 
End of Period    26,604,505    26,073,805 
Capital Share Transactions (Shares):         
Initial Shares         
Shares sold    391,230    730,566 
Shares redeemed    (300,019)    (166,869) 
Net Increase (Decrease) in Shares Outstanding    91,211    563,697 
Service Shares         
Shares sold    15,646    16,942 
Shares redeemed    (48,933)    (54,949) 
Net Increase (Decrease) in Shares Outstanding    (33,287)    (38,007) 

See notes to financial statements.

The Portfolio 15

FINANCIAL HIGHLIGHTS

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

        Year Ended December 31,     
Initial Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    9.80    8.92    6.55    9.81    12.04 
Investment Operations:                     
Investment (loss)—net a    (.06)    (.08)    (.09)    (.08)    (.08) 
Net realized and unrealized                     
gain (loss) on investments    .05    .96    2.46    (3.18)    (2.15) 
Total from Investment Operations    (.01)    .88    2.37    (3.26)    (2.23) 
Net asset value, end of period    9.79    9.80    8.92    6.55    9.81 
Total Return (%)    (.10)    9.87    36.18    (33.23)    (18.52) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.21    1.26    1.41    1.39    1.50 
Ratio of net expenses                     
to average net assets    1.16    1.26    1.41    1.34    1.39 
Ratio of net investment                     
(loss) to average net assets    (.64)    (.94)    (1.15)    (1.06)    (.77) 
Portfolio Turnover Rate    199.86    113.02    120.85    132.08    106.00 
Net Assets, end of period ($ x 1,000)    23,891    23,027    15,918    8,881    14,755 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

16
        Year Ended December 31,     
Service Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    9.74    8.88    6.53    9.78    12.04 
Investment Operations:                     
Investment (loss)—net a    (.08)    (.11)    (.09)    (.09)    (.09) 
Net realized and unrealized                     
gain (loss) on investments    .04    .97    2.44    (3.16)    (2.17) 
Total from Investment Operations    (.04)    .86    2.35    (3.25)    (2.26) 
Net asset value, end of period    9.70    9.74    8.88    6.53    9.78 
Total Return (%)    (.31)    9.68    35.99    (33.23)    (18.77) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.46    1.50    1.69    1.64    1.77 
Ratio of net expenses                     
to average net assets    1.39    1.50    1.50    1.46    1.49 
Ratio of net investment (loss)                     
to average net assets    (.87)    (1.19)    (1.23)    (1.17)    (1.02) 
Portfolio Turnover Rate    199.86    113.02    120.85    132.08    106.00 
Net Assets, end of period ($ x 1,000)    2,713    3,047    3,117    2,369    2,599 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering nine series, including the 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.

18

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

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (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 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.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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by Dreyfus. The portfolio will be 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 would bear 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

20

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.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: accumulated capital losses $5,573,497 and unrealized appreciation $1,433,875.

The accumulated capital loss carryover is available 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.

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for net operating losses, the portfolio increased accumulated undistributed investment income-net by $168,286 and decreased paid-in capital by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $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 December 31, 2005, the portfolio did not borrow under the Facility.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

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 had agreed, from January 1, 2005 to July 31, 2005, 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. Dreyfus has currently agreed from August 1, 2005 through July 31, 2006 to waive receipt of its fees and/or assume the expenses of the portfolio so that expenses, (exclusive of certain expenses described above) do not exceed 1.08% for its Initial Shares and 1.26% for its Service Shares. During the period ended December 31, 2005, Dreyfus waived receipt of fees of $11,603, 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% 
$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

22

products.The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $6,908 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 December 31, 2005, the portfolio was charged $138 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 December 31, 2005, the portfolio was charged $19,376 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $22,775, Rule 12b-1 distribution plan fees $584, custodian fees $5,088, chief compliance officer fees $1,858 and transfer agency per account fees $25.

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

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $48,468,614 and $48,543,421, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $27,601,382; accordingly, accumulated net unrealized appreciation on investments was $1,433,875, consisting of $2,493,600 gross unrealized appreciation and $1,059,725 gross unrealized depreciation.

The Portfolio 23

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Founders Discovery Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, Founders Discovery Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Founders Discovery Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006
24

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO’S

INVESTMENT ADVISORY AGREEMENT (Unaudited)

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one year term, pursuant to which the Manager provides the portfolio with investment advisory and administrative services, and of the Sub-Investment Advisory Agreement between the Manager and Founders Asset Management LLC (“Founders”), an affiliate of the Manager, pursuant to which Founders provides day-to-day management of the portfolio’s portfolio.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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and discussed the nature, extent and quality of the services provided to the portfolio pursuant to the portfolio’s Investment Advisory Agreement, and by Founders pursuant to the Sub-Investment Advisory Agreement.The Manager’s representatives reviewed the portfolio’s distribution of accounts and 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 Board members also considered the Manager’s and Founder’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day portfolio operations, including

The Portfolio 25

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE

PORTFOLIO’S INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

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, as well as the Manager’s supervisory activities over Founders.

Comparative Analysis of the Portfolio’s Performance and Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and noted that the total return performance of the portfolio’s Initial shares (which are not subject to a Rule 12b-1 plan) and Service shares (which are subject to a Rule 12b-1 plan) was below the averages of Comparison Group I and Comparison Group II, respectively, for the one-, three- and five-year periods. 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

26

shares) and reflects the performance of the portfolio’s Service shares thereafter. The Board members noted that the portfolio’s performance was showing a trend of improvement, and also noted management’s efforts to improve performance by hiring two analysts to cover the energy and financial services sectors. 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 higher than the average expense ratio of Comparison Group I, and that the expense ratio of the portfolio’s Service shares was higher 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 bottom half (i.e., higher than a majority of other funds) in each comparison group. The Board also noted the Manager’s current contractual fee waiver and expense reimbursement arrangement in effect, and considered that, effective July 1, 2005, the Manager has agreed through July 31, 2006 to reduce the total expense ratio of the portfolio’s Initial shares to 1.08% and to reduce the total expense ratio of the portfolio’s Service shares to 1.26%, excluding taxes, brokerage commissions, extraordinary expenses, interest expenses and commitment fees.

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 Similar Accounts as compared to managing and providing services to the port-

The Portfolio 27

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE

PORTFOLIO’S INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

folio; it was noted that the Similar Funds were mutual funds included in the “small-cap growth” funds category by Lipper.The Manager’s representatives also reviewed the costs associated with distribution through intermediaries. The Board analyzed the differences in fees paid to the Manager or Founders and discussed the relationship of the advisory fees paid in light of the Manager’s or Founder’s performance and the services provided; it was noted that the Similar Funds had management fees that were higher, lower and comparable to the fee borne by the portfolio or reflected the pricing of a “performance 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 received and considered information 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 Manager’s representatives stated that the methodology had also been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reason-able.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 Board members also considered potential benefits to the

28

Manager and Founders from acting as investment adviser and sub-investment adviser, respectively, to the portfolio, including soft dollar arrangements with respect to trading of 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 and the Sub-Investment Advisory Agreement bears a reasonable relationship to the mix of services provided by the Manager and Founders, 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. Since the Manager, and not the portfolio, pays Founders pursuant to the Sub-Investment Advisory Agreement, the Board did not consider Founders’ profitability to be relevant to their deliberations.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 and Sub-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 and Founders to the portfolio are adequate and appropriate.

The Portfolio 29

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE

PORTFOLIO’S INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

• While the Board was concerned with the portfolio’s total return performance, the Board members noted that the portfolio’s short-term performance is showing a trend of improvement and noted management’s efforts to improve performance by hiring two analysts to cover the energy and financial services sectors.

• The Board concluded that the advisory fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, including the Manager’s current undertaking to limit the portfolio’s expense ratio, 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 and Sub-Investment Advisory Agreement were in the best interests of the portfolio and its shareholders.

30
BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm (January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

The Portfolio 31

BOARD MEMBERS INFORMATION (Unaudited) (continued) 
 
 
 
David W. Burke (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

32

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

The Portfolio 33

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

34

NOTES

For More Information

Dreyfus Investment Portfolios,    Custodian 
 
Founders Discovery Portfolio     
    Mellon Bank, N.A. 
200 Park Avenue     
    One Mellon Bank Center 
New York, NY 10166     
    Pittsburgh, PA 15258 
 
 
Investment Adviser    Transfer Agent & 
 
The Dreyfus Corporation    Dividend Disbursing Agent 
 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
 
Sub-Investment Adviser    New York, NY 10166 
 
Founders Asset Management LLC    Distributor 
 
210 University Boulevard     
    Dreyfus Service Corporation 
Suite 800     
    200 Park Avenue 
Denver, CO 80206     
    New York, NY 10166 

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
14    Statement of Assets and Liabilities 
15    Statement of Operations 
16    Statement of Changes in Net Assets 
18    Financial Highlights 
20    Notes to Financial Statements 
26    Report of Independent Registered 
    Public Accounting Firm 
27    Important Tax Information 
28    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
34    Board Members Information 
36    Officers of the Fund 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios,

Founders Growth Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Founders Growth Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, John Jares, CFA, of Founders Asset Management, LLC, the portfolio’s sub-investment adviser.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation
January 17, 2006
2

DISCUSSION OF PERFORMANCE

John Jares, CFA, Portfolio Manager

Founders Asset Management LLC, Sub-Investment Adviser

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

For the 12-month period ended December 31, 2005, the portfolio produced total returns of 4.61% for its Initial Shares and 4.63% for its Service shares.1 In comparison, the Russell 1000 Growth Index, the portfolio’s benchmark, produced a total return of 5.26% for the same period.2 The portfolio’s former benchmark, the Standard & Poor’s 500/BARRA Growth Index, produced a total return of 3.46% for the same period.3

Powered by a growing U.S. economy, stocks overcame rising short-term interest rates, volatile energy prices and the Gulf Coast hurricanes to post modest gains in 2005. The portfolio’s relatively light exposure to energy stocks caused the portfolio’s performance to lag its benchmark.

On July 13, 2005, the portfolio’s benchmark was changed to the Russell 1000 Growth Index from the S&P 500/BARRA Growth Index because the Russell 1000 Growth Index is expected to better reflect the characteristics of the portfolio’s securities.

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

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

portfolio may invest up to 30% of its assets in foreign securities, and up to 25% of its assets in any one foreign country.

What other factors influenced the portfolio’s performance?

The U.S. economy grew moderately during 2005, while corporate profits rose more substantially. However, these positive market forces were partially offset by higher short-term interest rates from the Federal Reserve Board (the “Fed”), which raised the overnight federal funds rate from 2.25% to 4.25% during the year. In addition, investors worried about the potentially eroding effects of soaring energy prices, further limiting the stock market’s gains.

Not surprisingly, higher commodity prices helped the energy sector post some of the market’s higher returns in 2005. Early in the year, however, we began to see signs that crude oil inventories were increasing, suggesting to us that oil prices might fall and leading us to allocate a relatively small percentage of the portfolio’s assets to energy producers. As a result, the portfolio failed to participate fully in the gains in the energy sector. However, because energy companies traditionally are considered value-oriented stocks, they have less representation in the portfolio’s growth-oriented benchmark than in broader market indices, and the adverse impact of the portfolio’s relatively light exposure to energy stocks was muted.

While the economically sensitive transportation sector also tends to have relatively little representation in growth-oriented market indices, the portfolio’s holdings in the sector contributed positively to its relative performance. Airline holdings, such as AMR (parent of American Airlines) and U.S. Airways, advanced when several competitors declared bankruptcy later in the year, thereby reducing industry capacity and allowing surviving carriers to raise ticket prices. Among railroads, Union Pacific benefited from rising demand for rail service in the growing economy. Because railroads’ costs tend to be fixed, revenue gains fall directly to the bottom line.

Conversely, the technology sector is to be a major component of most growth indices, but technology stocks have not enjoyed particularly strong results over the past five years.While the technology sector produced mixed returns in 2005, the portfolio received a substantial contribution to its performance from computer and electronics maker

4

Apple Computer.The company’s iPod digital music player has been a spectacular success, garnering the attention of consumers worldwide and boosting Apple’s market share in personal computers. The stock also benefited from a recent announcement that Apple will soon incorporate Intel processors in its products.

What is the portfolio’s current strategy?

We recently have seen evidence that higher short-term interest rates and the Fed’s credit-tightening campaign may be dampening the pace of U.S. economic growth. Accordingly, we have begun to focus more intently on traditional growth companies that historically have achieved consistent earnings gains in slower-growth environments. For example, we regard some technology companies as relatively insensitive to the economy’s fluctuations, and these businesses are positioned to benefit from the upgrade cycle that we believe is likely to emerge as companies replace outmoded equipment. The last major upgrade occurred six years ago, and we believe a new round of corporate investment in technology may be due.

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

The Portfolio 5

Average Annual Total Returns as of 12/31/05         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    9/30/98    4.61%    (3.29)%    1.53% 
Service shares    9/30/98    4.63%    (3.33)%    1.49% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
† Source: Lipper Inc. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in 
connection with investing in variable insurance contracts which will reduce returns. 
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, 
Founders Growth Portfolio on 9/30/98 (inception date of Initial shares) to a $10,000 investment made in each of the 
Russell 1000 Growth Index and the Standard & Poor’s 500/BARRA Growth Index (the “S&P 500/BARRA 
Index”) on that date. 

  6

On July 13, 2005, the portfolio’s benchmark was changed to the Russell 1000 Growth Index from the S&P 500/BARRA Index because the Russell 1000 Growth Index is expected to better reflect the characteristics of the portfolio’s securities.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

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

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.24    $ 5.24 
Ending value (after expenses)    $1,079.60    $1,078.70 

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 December 31, 2005

    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 5.09    $ 5.09 
Ending value (after expenses)    $1,020.16    $1,020.16 

† Expenses are equal to the portfolio’s annualized expense ratio of 1.00% for Initial shares and 1.00% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8
  STATEMENT OF INVESTMENTS
December 31, 2005
Common Stocks—100.1%    Shares        Value ($) 
Airlines—2.2%             
AMR    12,458    a,b    276,941 
US Airways Group    3,776    a    140,241 
            417,182 
Asset Management & Custody Banks—1.8%         
Northern Trust    4,483        232,309 
State Street    1,804        100,014 
            332,323 
Auto Parts—1.2%             
Advance Auto Parts    4,982    a    216,518 
Biotechnology—2.8%             
Amgen    1,883    a    148,493 
Genentech    3,044    a    281,570 
Genzyme    1,391    a    98,455 
            528,518 
Broadcasting & Cable TV—2.2%             
Comcast, Cl. A (Special)    13,700    a    351,953 
XM Satellite Radio Holdings, Cl. A    1,856    a    50,632 
            402,585 
Casinos & Gaming—1.0%             
Harrah's Entertainment    1,561        111,284 
International Game Technology    2,225        68,486 
            179,770 
Chemicals—1.0%             
Sigma-Aldrich    2,988        189,111 
Computers—4.4%             
Apple Computer    4,923    a    353,914 
EMC/Massachusetts    19,026    a    259,134 
Hewlett-Packard    7,075        202,557 
            815,605 
Consumer Non-Durables—1.5%             
PepsiCo    4,734        279,685 
Department Stores—1.8%             
JC Penney    1,778        98,857 
Kohl's    3,463    a    168,302 
Nordstrom    1,799        67,283 
            334,442 

The Portfolio 9

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares        Value ($) 
Electrical Components & Equipment—1.6%             
Emerson Electric    3,892        290,732 
Electronic Equipment Manufacturers—.9%             
Agilent Technologies    4,920    a    163,787 
Entertainment/Media—4.9%             
DreamWorks Animation SKG, Cl. A    3,611    a    88,686 
Pixar    5,393    a    284,319 
Time Warner    18,868        329,058 
Viacom, Cl. B    6,156    a    200,686 
            902,749 
Exchange Traded—3.1%             
iShares Russell 1000 Growth Index Fund    6,029    b    307,539 
Nasdaq-100 Index Tracking Stock    3,208        129,667 
Standard & Poor's Depository Receipts (Trust Series 1)    1,121        139,576 
            576,782 
Financial—3.9%             
Charles Schwab    17,146        251,532 
JPMorgan Chase & Co.    5,205        206,586 
SLM    4,693        258,537 
            716,655 
Health Care—2.6%             
Aetna    1,264        119,208 
Dentsply International    1,836        98,575 
Medtronic    2,591        149,164 
Omnicare    2,210        126,456 
            493,403 
Home Improvement—2.1%             
Harman International Industries    1,021        99,905 
Home Depot    7,076        286,436 
            386,341 
Hotels, Resorts & Cruise Lines—2.6%             
Carnival    2,698        144,262 
Royal Caribbean Cruises    7,432    b    334,886 
            479,148 
Household Products—6.2%             
Clorox    4,070        231,542 
Colgate-Palmolive    8,532        467,980 
Estee Lauder Cos., Cl. A    3,191        106,835 

10

Common Stocks (continued)    Shares    Value ($) 
Household Products (continued)         
Procter & Gamble    5,990    346,701 
        1,153,058 
Industrial Conglomerates—3.3%         
General Electric    17,555    615,303 
Information Technology—2.1%         
Accenture, Cl. A    13,800    398,406 
Insurance—2.6%         
Allstate    4,070    220,065 
American International Group    1,333    90,951 
PMI Group    4,315    177,217 
        488,233 
Internet Software—5.0%         
Google, Cl. A    1,452 a    602,377 
Yahoo!    8,203 a    321,394 
        923,771 
Investment Bankers/Brokers—1.5%     
Goldman Sachs Group    1,495    190,926 
Morgan Stanley    1,622    92,032 
        282,958 
Oil & Gas—1.3%         
ConocoPhillips    954    55,504 
Schlumberger    1,914    185,945 
        241,449 
Packaged Foods & Meats—.8%         
Hershey    2,524    139,451 
Pharmaceutical—7.1%         
Covance    2,542 a    123,414 
Eli Lilly & Co.    1,422    80,471 
ImClone Systems    5,433 a    186,026 
Johnson & Johnson    6,284    377,668 
MGI Pharma    9,278 a    159,210 
Pfizer    3,920    91,414 
Wyeth    6,668    307,195 
        1,325,398 
Railroads—1.8%         
Union Pacific    4,147    333,875 

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Retail Trade—4.7%         
Best Buy    4,301    187,007 
Family Dollar Stores    8,139    201,766 
Office Depot    3,610 a    113,354 
Target    1,758    96,637 
Tiffany & Co.    4,530    173,454 
Wal-Mart Stores    2,092    97,906 
        870,124 
Semiconductors—6.6%         
ASML Holding (New York Reg. Shares)    11,980 a    240,558 
ATI Technologies    8,806 a    149,614 
Intel    9,260    231,130 
Linear Technology    10,513    379,204 
Maxim Integrated Products    6,300    228,312 
        1,228,818 
Software—11.2%         
Adobe Systems    8,950    330,792 
Autodesk    5,335    229,138 
Automatic Data Processing    3,290    150,978 
Electronic Arts    3,007 a    157,296 
Microsoft    35,522    928,900 
Oracle    5,725 a    69,902 
SAP, ADR    2,060    92,844 
Symantec    6,627 a    115,973 
        2,075,823 
Steel—.6%         
Nucor    1,721    114,825 
Telecommunications—2.6%         
Alltel    1,788    112,823 
Motorola    7,976    180,178 
Sprint Nextel    8,449    197,369 
        490,370 
Trading Companies & Distributors—1.1%     
WW Grainger    2,943    209,247 
Total Common Stocks         
(cost $16,707,393)        18,596,445 

12
    Principal     
Short-Term Investment—1.2%    Amount ($)    Value ($) 
Commercial Paper;         
Minnesota Mining & Mfg.         
4.12%, 1/3/2006         
(cost $229,947)    230,000    229,947 
 
Investment of Cash Collateral         
for Securities Loaned—.7%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $129,470)    129,470 c    129,470 
Total Investments (cost $17,066,810)    102.0%    18,955,862 
Liabilities, Less Cash and Receivables    (2.0%)    (366,221) 
Net Assets    100.0%    18,589,641 

ADR-American Depository Receipts. 
a Non-income producing. 
b All or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio's 
securities on loan is $124,229 and the total market value of the collateral held by the portfolio is $129,470. 
c Investment in affiliated money market mutual fund. 

Portfolio Summary †             
 
    Value (%)        Value (%) 
Software    11.2    Retail Trade    4.7 
Pharmaceutical    7.1    Computers    4.4 
Semiconductors    6.6    Financial    3.9 
Household Products    6.2    Other    48.0 
Internet Software    5.0         
Entertainment/Media    4.9        102.0 
 
† Based on net assets.             
See notes to financial statements.             

The Portfolio 13

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

    Cost    Value 
Assets ($):         
Investments in securities—         
See Statement of Investments (including securities     
on loan, valued at $124,229)—Note 1(b):     
Unaffiliated issuers    16,937,340    18,826,392 
Affiliated issuers    129,470    129,470 
Cash        31,135 
Receivable for investment securities sold    1,839,338 
Dividends and interest receivable        20,053 
Prepaid expenses        3,002 
        20,849,390 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    19,822 
Liability for securities on loan—Note 1(b)    129,470 
Payable for investment securities purchased    2,068,141 
Payable for shares of Beneficial Interest redeemed    2,082 
Accrued expenses        40,234 
        2,259,749 
Net Assets ($)        18,589,641 
Composition of Net Assets ($):         
Paid-in capital        32,143,416 
Accumulated undistibuted investment income—net    51,208 
Accumulated net realized gain (loss) on investments    (15,494,035) 
Accumulated net unrealized appreciation     
(depreciation) on investments        1,889,052 
Net Assets ($)        18,589,641 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    13,645,736    4,943,905 
Shares Outstanding    1,105,359    400,887 
Net Asset Value Per Share ($)    12.35    12.33 

See notes to financial statements.
14
STATEMENT OF OPERATIONS
Year Ended December 31, 2005
Investment Income ($):     
Income:     
Cash dividends (net of $145 foreign taxes withheld at source)    209,095 
Interest    32,046 
Income from securities lending    2,745 
Total Income    243,886 
Expenses:     
Investment advisory fee—Note 3(a)    145,368 
Auditing fees    34,509 
Prospectus and shareholders’ reports    15,421 
Custodian fees—Note 3(b)    12,644 
Distribution fees—Note 3(b)    12,517 
Shareholder servicing costs—Note 3(b)    1,846 
Trustees’ fees and expenses—Note 3(c)    853 
Legal fees    363 
Loan commitment fees—Note 2    87 
Miscellaneous    4,758 
Total Expenses    228,366 
Less—waiver of fees due to undertaking—Note 3(a)    (34,454) 
Less—reduction in custody fees due to     
earnings credits—Note 1(b)    (1,367) 
Net Expenses    192,545 
Investment Income—Net    51,341 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    2,333,582 
Net unrealized appreciation (depreciation) on investments    (1,580,457) 
Net Realized and Unrealized Gain (Loss) on Investments    753,125 
Net Increase in Net Assets Resulting from Operations    804,466 

See notes to financial statements.

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment income—net    51,341    138,653 
Net realized gain (loss) on investments    2,333,582    1,618,779 
Net unrealized appreciation         
(depreciation) on investments    (1,580,457)    (221,738) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    804,466    1,535,694 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (42,733)    (76,466) 
Service shares    (10,865)    (25,522) 
Total Dividends    (53,598)    (101,988) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    333,541    757,535 
Service shares    336,390    642,509 
Dividends reinvested:         
Initial shares    42,733    76,466 
Service shares    10,865    25,522 
Cost of shares redeemed:         
Initial shares    (3,313,092)    (2,584,979) 
Service shares    (986,967)    (1,380,155) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (3,576,530)    (2,463,102) 
Total Increase (Decrease) in Net Assets    (2,825,662)    (1,029,396) 
Net Assets ($):         
Beginning of Period    21,415,303    22,444,699 
End of Period    18,589,641    21,415,303 
Undistributed investment income—net    51,208    53,465 

16
    Year Ended December 31, 
    2005    2004 
Capital Share Transactions:         
Initial Shares         
Shares sold    28,560    67,535 
Shares issued for dividends reinvested    3,722    6,529 
Shares redeemed    (282,116)    (234,961) 
Net Increase (Decrease) in Shares Outstanding    (249,834)    (160,897) 
Service Shares         
Shares sold    29,299    57,327 
Shares issued for dividends reinvested    947    2,183 
Shares redeemed    (83,728)    (124,322) 
Net Increase (Decrease) in Shares Outstanding    (53,482)    (64,812) 

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.

        Year Ended December 31,     
Initial Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    11.84    11.03    8.44    11.77    14.73 
Investment Operations:                     
Investment income (loss)—net a    .03    .07    .01    (.01)    .01 
Net realized and unrealized                     
gain (loss) on investments    .51    .80    2.58    (3.31)    (2.96) 
Total from Investment Operations    .54    .87    2.59    (3.32)    (2.95) 
Distributions:                     
Dividends from investment income—net    (.03)    (.06)    —    (.01)    (.01) 
Net asset value, end of period    12.35    11.84    11.03    8.44    11.77 
Total Return (%)    4.61    7.86    30.69    (28.25)    (20.03) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.11    1.00    1.09    1.09    1.09 
Ratio of net expenses                     
to average net assets    1.00    .97    1.00    1.00    .99 
Ratio of net investment income                     
(loss) to average net assets    .26    .65    .08    (.08)    .08 
Portfolio Turnover Rate    125.05    114.49    126.24    165.08    180.84 
Net Assets, end of period ($ x 1,000)    13,646    16,045    16,725    14,442    25,607 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

18
            Year Ended December 31,     
Service Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    11.82    11.02    8.43    11.76    14.73 
Investment Operations:                     
Investment income (loss)—net a    .03    .07    .01    (.01)    (.00)b 
Net realized and unrealized                     
gain (loss) on investments    .51    .79    2.58    (3.31)    (2.96) 
Total from Investment Operations    .54    .86    2.59    (3.32)    (2.96) 
Distributions:                     
Dividends from investment income—net    (.03)    (.06)    —    (.01)    (.01) 
Net asset value, end of period    12.33    11.82    11.02    8.43    11.76 
Total Return (%)    4.63    7.68    30.72    (28.21)    (20.16) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.36    1.25    1.35    1.34    1.40 
Ratio of net expenses                     
to average net assets    1.00    1.00    1.00    1.00    1.00 
Ratio of net investment income                     
(loss) to average net assets    .26    .63    .09    (.06)    (.01) 
Portfolio Turnover Rate    125.05    114.49    126.24    165.08    180.84 
Net Assets, end of period ($ x 1,000)    4,944    5,370    5,719    4,333    4,147 
 
a    Based on average shares outstanding at each month end.                 
b    Amount represents less than $.01 per share.                 
See notes to financial statements.                     

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering nine series, including the 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.

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.

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

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (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 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.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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by Dreyfus. The portfolio will be 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 would bear 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.

22

(e) Federal income taxes: It is the policy of the portfolio to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $51,208, accumulated capital losses $15,164,476 and unrealized appreciation $1,559,493.

The accumulated capital loss carryover is available 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 periods ended December 31, 2005 and December 31, 2004, were as follows: ordinary income $53,598 and $101,988, respectively.

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 December 31, 2005, 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.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

Dreyfus has agreed, from January 1, 2005 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% of the value of the average daily net assets of their class. During the period ended December 31, 2005, Dreyfus waived receipt of fees of $34,454, 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 December 31, 2005, Service shares were charged $12,517 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 December 31, 2005, the portfolio was charged $60 pursuant to the transfer agency agreement.

24

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 December 31, 2005, the portfolio was charged $12,644 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $14,762, Rule 12b-1 distribution plan fees $1,075, custodian fees $2,117, chief compliance officer fees $1,858 and transfer agency per account fees $10.

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

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $23,150,956 and $26,158,297, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $17,396,369; accordingly, accumulated net unrealized appreciation on investments was $1,559,493, consisting of $2,089,939 gross unrealized appreciation and $530,446 gross unrealized depreciation.

The Portfolio 25

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Founders Growth Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, Founders Growth Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Founders Growth Portfolio at December 31,2005,the results of its operations for the year then ended,the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006
26

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates 100% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

The Portfolio 27

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO’S

INVESTMENT ADVISORY AGREEMENT (Unaudited)

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one year term, pursuant to which the Manager provides the portfolio with investment advisory and administrative services, and of the Sub-Investment Advisory Agreement between the Manager and Founders Asset Management LLC (“Founders”), an affiliate of the Manager, pursuant to which Founders provides day-to-day management of the portfolio’s portfolio.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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and discussed the nature, extent and quality of the services provided to the portfolio pursuant to the portfolio’s Investment Advisory Agreement, and by Founders pursuant to the Sub-Investment Advisory Agreement.The Manager’s representatives reviewed the portfolio’s distribution of accounts and 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 Board members also considered the Manager’s and Founder’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day portfolio operations, including

28

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, as well as the Manager’s supervisory activities over Founders.

Comparative Analysis of the Portfolio’s Performance and Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and noted that the total return performance of the portfolio’s Initial shares (which are not subject to a Rule 12b-1 plan) and Service shares (which are subject to a Rule 12b-1 plan) was above the averages of Comparison Group I and Comparison Group II, respectively, for the one-, three- and five-year periods. 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

The Portfolio 29

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE

PORTFOLIO’S INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

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 also noted that Lipper had reclassified the portfolio into the “large-cap core-variable insurance products” funds category from the “large-cap growth-variable insurance products” funds category after the Board had selected the comparison groups, and that performance information was given for both Lipper categories. 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 large-cap growth category averages, respectively, for the one-year period, was below the Comparison Group I and Comparison Group II Lipper large-cap growth funds category averages, respectively, for the three- and five-year periods, and was below the Comparison Group I and Comparison Group II Lipper large-cap core category averages, respectively, for the one-, three- and five-year periods.

The Board members also discussed the portfolio’s expense ratios, noting that the current fee waiver and expense reimbursement arrangement undertaken by the Manager had caused the expense ratio of the portfolio’s Initial shares to be comparable to the average expense ratio of Comparison Group I and had caused the expense ratio of the portfolio’s Service shares to be lower than the 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 top half (i.e., lower than a majority of other funds) in each comparison group. The Board members also considered the Manager’s contractual undertaking for the portfolio in effect through December 31, 2005.

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 another account managed or sub-advised by an affiliate of the Manager with a similar investment objective, policies and strategies as the portfolio (collectively with the Similar Funds, the “Similar Accounts”). The

30

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; it was noted that the Similar Funds were mutual funds included in the “large-cap core” and “large-cap core-variable insurance products” funds categories by Lipper.The Manager’s representatives also reviewed the costs associated with distribution through intermediaries. The Board analyzed the differences in fees paid to the Manager or Founders and discussed the relationship of the advisory fees paid in light of the Manager’s or Founder’s performance and the services provided; it was noted that the Similar Funds had management fees that were higher, lower or the same as the fee borne by the portfolio or reflected the pricing of “unitary fee” funds and a fund that imposes a separate administration fee. The Board members considered the relevance of the fee information provided for the Similar Account 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 received and considered information 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 Manager’s representatives stated that the methodology had also 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 real-

The Portfolio 31

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE

PORTFOLIO’S INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

ized 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 Board members also considered potential benefits to the Manager and Founders from acting as investment adviser and sub-investment adviser, respectively, to the portfolio, including soft dollar arrangements with respect to trading of 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 and the Sub-Investment Advisory Agreement bears a reasonable relationship to the mix of services provided by the Manager and Founders, 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. Since the Manager, and not the portfolio, pays Founders pursuant to the Sub-Investment Advisory Agreement, the Board did not consider Founders’ profitability to be relevant to their deliberations.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 and Sub-Investment

32

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 and Founders to the portfolio are adequate and appropriate.

• The Board was satisfied with the portfolio’s total return performance.

• The Board concluded that the advisory fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, including the Manager’s current undertaking to limit the portfolio’s expense ratio, 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 and Sub-Investment Advisory Agreement were in the best interests of the portfolio and its shareholders.

The Portfolio 33

BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

34

David W. Burke (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

The Portfolio 35

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

36

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director-Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager - Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager — Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager - Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

The Portfolio 37

For More Information

Dreyfus Investment Portfolios,    Custodian 
 
Founders Growth Portfolio     
    Mellon Bank, N.A. 
200 Park Avenue     
    One Mellon Bank Center 
New York, NY 10166     
    Pittsburgh, PA 15258 
 
 
Investment Adviser    Transfer Agent & 
 
The Dreyfus Corporation    Dividend Disbursing Agent 
 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
 
Sub-Investment Adviser    New York, NY 10166 
 
 
Founders Asset Management LLC    Distributor 
 
Founders Financial Center     
    Dreyfus Service Corporation 
2930 East Third Avenue     
    200 Park Avenue 
Denver, CO 80206     
    New York, NY 10166 

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
14    Statement of Assets and Liabilities 
15    Statement of Operations 
16    Statement of Changes in Net Assets 
18    Financial Highlights 
20    Notes to Financial Statements 
26    Report of Independent Registered 
    Public Accounting Firm 
27    Important Tax Information 
28    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
33    Board Members Information 
35    Officers of the Fund 
 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios,

Founders International

Equity Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Founders International Equity Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio managers, Remi J. Browne, CFA, and Daniel B. LeVan, CFA, of Founders Asset Management LLC, the portfolio’s sub-investment adviser.

International stocks generally produced higher returns than their U.S. counterparts in 2005. Low interest rates and corporate restructuring in Europe and Japan helped buoy stock prices in the developed markets, and rising global demand for natural resources supported returns in the emerging markets. However, a strengthening U.S. dollar relative to most major foreign currencies eroded some of these gains for U.S. investors.

We expect the global economy to continue its expansion in 2006. Low real interest rates in Asia should support regional growth, while Japan appears to be emerging from its long recession. Europe seems poised for better economic times after several years of sluggish growth, and emerging markets in Eastern Europe and Latin America may continue to benefit from greater fiscal stability. Risks in the new year include the possibility of a slowdown in China, where a robust economy has fueled demand for exports from other nations.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

2

DISCUSSION OF PERFORMANCE

Remi J. Browne, CFA, and Daniel B. LeVan, CFA, Portfolio Managers Founders Asset Management LLC, Sub-Investment Adviser

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

For the 12-month period ended December 31, 2005, the portfolio produced total returns of 13.80% for its Initial shares and 13.87% for its Service shares.1 In comparison, the portfolio’s benchmarks, the Morgan Stanley Capital International World ex U.S. Index and the MSCI World ex U.S. Growth Index, produced total returns of 14.47% and 14.77%, respectively, for the same period.2,3

We attribute the international stock market’s overall performance in 2005 to an economic recovery in Japan, rising exports from natural resource-rich nations and corporate reorganizations in Europe, all of which helped support global economic growth and drove corporate earnings and international stock prices higher.The portfolio’s returns trailed those of its benchmarks, primarily due to its relative heavy exposure to the telecommunications services and technology sectors, both of which had disappointing results during the reporting period, more than offsetting above-average results in the energy, industrials and consumer discretionary sectors.

On April 21, 2005, the MSCI World ex U.S. Growth Index was added as a secondary benchmark to reflect the type of growth companies in which the portfolio may invest.

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

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

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 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.

The portfolio is broadly invested across countries and industries, representing what we believe to be the best growth investment ideas in the world.We generally sell a stock when we determine that circumstances have changed and it will not achieve the growth in earnings we had anticipated, or when valuation becomes stretched.

What other factors influenced the portfolio’s performance?

Although rising energy prices and higher interest rates in some regions of the world caused international investors to worry that global economic growth might slow, productivity gains among corporations, improved earnings, robust employment trends and low inflation and interest rates helped most international stock markets post positive returns for the reporting period. Despite generally lackluster economic conditions in Europe, corporate restructuring efforts helped bolster investor sentiment in the region’s developed nations, such as Germany, France and Italy. Japan’s economy, which has long been mired in recession, rebounded sharply during the second half of the reporting period when domestic consumption, exports and private investment began to recover.

The Japanese market was one of the best performers in the world during 2005. The portfolio’s holdings in Japan experienced strong gains, but failed to match the benchmark’s overall return. Exposure to a couple underperforming technology names had the biggest impact on the portfolio’s relative performance in Japan.

On a more positive note, most commodity-rich countries performed particularly well during the reporting period due to rising oil and gas prices as well as robust industrial demand from China and India.

4

Accordingly, the portfolio’s holdings of exporters and mining companies in Australia, Norway and Canada made a significant positive contribution to the portfolio’s relative performance. The continued global economic expansion also helped many of the portfolio’s industrial stocks advance during the reporting period, including construction firms and other companies that buy, sell and trade raw materials. Several consumer discretionary stocks also boosted the portfolio’s performance, most of which were based in Germany and Switzerland. Finally, the fund benefited from its holdings in a Hong Kong-based mobile telephone company, which rallied on the strength of a growing customer base.

What is the portfolio’s current strategy?

First, we seek to manage risk tightly at both the country and sector level relative to the MSCI World ex U.S. Growth benchmark. As always, we continue to look for stocks with improving business momentum, strong growth rates and reasonable valuations.

January 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

  PORTFOLIO PERFORMANCE
Average Annual Total Returns as of 12/31/05         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    9/30/98    13.80%    (0.52)%    5.61% 
Service shares    9/30/98    13.87%    (0.51)%    5.62% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
†    Source: Lipper Inc. 
††    Source: Morgan Stanley Capital International Inc. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 

  6

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

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, Founders International Equity Portfolio on 9/30/98 (inception date of Initial shares) to a $10,000 investment made in each of the Morgan Stanley Capital International World ex U.S. Index (the “Index”) and the MSCI World (ex U.S.) Growth Index on that date.

On April 2005, the MSCI World (ex U.S.) Growth Index was added as a secondary benchmark to reflect the type of growth companies in which the portfolio may invest.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Index is an unmanaged index of global stock market performance, excluding the U.S., consisting solely of equity securities and includes net dividends reinvested.The MSCI World (ex U.S.) Growth Index measures global developed market equity performance of growth securities outside of the U.S.The indices do not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 8.07    $ 8.08 
Ending value (after expenses)    $1,149.70    $1,150.40 

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 December 31, 2005

    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 7.58    $ 7.58 
Ending value (after expenses)    $1,017.69    $1,017.69 

† 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 184/365 (to reflect the one-half year period).

8
STATEMENT OF INVESTMENTS
December 31, 2005
Common Stocks—96.3%    Shares    Value ($) 
Australia—4.1%         
BHP Billiton    8,120    135,592 
Foster’s Group    18,200    74,542 
Macquarie Bank    1,000    50,022 
Oil Search    16,480    44,635 
Rinker Group    10,050    121,347 
        426,138 
Belgium—1.4%         
InBev    3,360    146,132 
Canada—5.6%         
Canadian National Railway    1,440    115,334 
Gildan Activewear    2,300 a    98,891 
Husky Energy    1,900    96,397 
Sun Life Financial    1,650    66,304 
Teck Cominco, Cl. B    1,900    101,380 
TELUS    2,500    102,889 
        581,195 
Denmark—2.3%         
AP Moller—Maersk    10    103,367 
Novo-Nordisk, Cl. B    2,390    134,323 
        237,690 
Finland—1.4%         
Nokia    7,600    138,884 
France—8.2%         
BNP Paribas    1,406    113,667 
Bouygues    1,830    89,395 
Sanofi-Aventis    1,910    167,177 
Schneider Electric    640    57,039 
Societe Generale    1,000    122,893 
Total    581    145,825 
Vivendi Universal    4,740    148,347 
        844,343 

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Germany—6.9%         
BASF    2,000    153,078 
Continental    1,630    144,405 
DaimlerChrysler    1,000    51,026 
E.ON    1,330    137,585 
SAP    360    65,217 
Schering    1,580    105,682 
ThyssenKrupp    2,930    61,064 
        718,057 
Greece—.9%         
Coca-Cola Hellenic Bottling    3,300    97,113 
Hong Kong—1.4%         
China Mobile (Hong Kong)    30,800    145,588 
Italy—2.4%         
Banca Intesa    20,660    109,354 
Capitalia    8,600    49,741 
ENI    3,010    83,416 
        242,511 
Japan—23.8%         
Astellas Pharma    2,100    81,847 
Canon    3,000    175,387 
Daiwa Securities Group    6,000    67,969 
Denso    2,000    68,968 
Eisai    2,800    117,433 
Fujitsu    12,000    91,303 
Honda Motor    2,800    159,661 
Hoya    4,000    143,698 
JFE Holdings    3,900    130,855 
Matsushita Electric Industrial    6,000    115,653 
Mitsubishi    12,000    265,368 
Mitsubishi Electric    7,000    49,523 
Mitsui & Co.    7,000    89,854 
Santen Pharmaceutical    2,300    62,165 
Sanyo Shinpan Finance    900    64,512 

10
Common Stocks (continued)    Shares    Value ($) 
Japan (continued)         
Sumitomo Electric Industries    10,600    160,852 
Sumitomo Rubber Industries    5,000    71,171 
Takeda Pharmaceutical    2,600    140,546 
Tokyo Electron    1,000    62,783 
Toshiba    13,000    77,543 
TV Asahi    26    64,546 
Yamada Denki    1,600    200,093 
        2,461,730 
Netherlands—2.6%         
ING Groep    6,220    215,561 
Royal Dutch Shell, Cl. A    1,750    53,362 
        268,923 
Norway—1.8%         
Norsk Hydro    540    55,418 
Orkla    2,000    82,782 
Telenor    5,300    51,998 
        190,198 
Spain—3.5%         
ACS    2,800    90,115 
Banco Santander Central Hispano    3,880    51,170 
Gestevision Telecinco    3,820    96,330 
Repsol YPF    4,310    125,764 
        363,379 
Sweden—2.6%         
Telefonaktiebolaget LM Ericsson, Cl. B    28,900    99,234 
Volvo, Cl. B    3,700    174,282 
        273,516 
Switzerland—7.8%         
Baloise Holding    990    57,773 
Compagnie Financiere Richemont, Cl. A    2,330    101,335 
Credit Suisse Group    3,360    171,168 
Logitech International    1,160 a    54,463 
Nestle    270    80,680 

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Switzerland (continued)         
Novartis    2,930    153,829 
Roche Holding    460    69,007 
UBS    628    59,734 
Zurich Financial Services    290    61,740 
        809,729 
United Kingdom—19.6%         
AstraZeneca    5,250    255,474 
Aviva    3,900    47,294 
BAE Systems    11,830    77,681 
Barclays    4,759    50,016 
BP    23,923    254,718 
British American Tobacco    7,690    171,958 
BT Group    25,040    95,941 
Diageo    8,500    123,181 
GlaxoSmithKline    3,900    98,546 
HBOS    4,650    79,425 
International Power    19,160    78,932 
Old Mutual    22,050    62,487 
Rolls-Royce Group    12,300    90,448 
Royal Bank of Scotland Group    1,800    54,338 
Sage Group    13,230    58,713 
Schroders    3,100    50,657 
Tesco    9,910    56,508 
Vodafone Group    66,520    143,598 
Xstrata    7,600    177,790 
        2,027,705 
Total Common Stocks         
(cost $7,388,065)        9,972,831 
 
Preferred Stocks—.5%         
Germany;         
Fresenius         
(cost $49,246)    390    52,772 

12
    Principal     
Short-Term Investments—4.5%    Amount ($)    Value ($) 
Commercial Paper;         
Cafco LLC         
4.12%, 1/3/2006         
(cost $468,893)    469,000    468,893 
Total Investments (cost $7,906,204)    101.3%    10,494,496 
Liabilities, Less Cash and Receivables    (1.3%)    (133,800) 
Net Assets    100.0%    10,360,696 

a Non-income producing.
Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Health Care    11.5    Automobiles    5.1 
Energy    8.4    Electrical and Electronics    4.8 
Miscellaneous    7.8    Short-Term Investments    4.5 
Financial Services    6.9    Misc. Materials and Commodities    3.2 
Telecommunications    6.2    Other    31.1 
Banking    5.9         
Beverages and Tobacco    5.9        101.3 
 
† Based on net assets.             
See notes to financial statements.             

The Portfolio 13

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments    7,906,204    10,494,496 
Cash        2,327 
Dividends receivable        13,919 
Prepaid expenses        268 
        10,511,010 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)        9,102 
Payable for investment securities purchased        79,931 
Payable for shares of Beneficial Interest redeemed        21,840 
Accrued expenses        39,441 
        150,314 
Net Assets ($)        10,360,696 
Composition of Net Assets ($):         
Paid-in capital        12,659,425 
Accumulated undistributed investment income—net        73,133 
Accumulated net realized gain (loss) on investments        (4,959,932) 
Accumulated net unrealized appreciation (depreciation)         
on investments and foreign currency transactions        2,588,070 
Net Assets ($)        10,360,696 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    8,096,373    2,264,323 
Shares Outstanding    494,926    138,360 
Net Asset Value Per Share ($)    16.36    16.37 

See notes to financial statements.
14
STATEMENT OF OPERATIONS
Year Ended December 31, 2005
Investment Income ($):     
Income:     
Cash dividends (net of $23,743 foreign taxes withheld at source)    211,852 
Interest    8,049 
Total Income    219,901 
Expenses:     
Investment advisory fee—Note 3(a)    96,732 
Custodian fees    34,051 
Auditing fees    26,435 
Distribution fees—Note 3(b)    5,033 
Prospectus and shareholders’ reports    4,430 
Shareholder servicing costs—Note 3(b)    1,541 
Trustees’ fees and expenses—Note 3(c)    622 
Legal fees    256 
Loan commitment fees—Note 2    42 
Miscellaneous    11,315 
Total Expenses    180,457 
Less—waiver of fees     
due to undertaking—Note 3(a)    (35,358) 
Less—reduction in custody fees due to     
earnings credits—Note 1(c)    (993) 
Net Expenses    144,106 
Investment Income—Net    75,795 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    878,688 
Net unrealized appreciation (depreciation)     
on investments and foreign currency transactions    332,455 
Net Realized and Unrealized Gain (Loss) on Investments    1,211,143 
Net Increase in Net Assets Resulting from Operations    1,286,938 

See notes to financial statements.

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment income—net    75,795    56,173 
Net realized gain (loss) on investments    878,688    1,696,837 
Net unrealized appreciation         
(depreciation) on investments    332,455    79,487 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    1,286,938    1,832,497 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (44,227)    (34,898) 
Service shares    (11,460)    (10,268) 
Total Dividends    (55,687)    (45,166) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    1,728,396    1,325,511 
Service shares    371,568    580,082 
Dividends reinvested:         
Initial shares    44,227    34,898 
Service shares    11,460    10,268 
Cost of shares redeemed:         
Initial shares    (1,988,891)    (1,871,288) 
Service shares    (765,231)    (706,880) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (598,471)    (627,409) 
Total Increase (Decrease) in Net Assets    632,780    1,159,922 
Net Assets ($):         
Beginning of Period    9,727,916    8,567,994 
End of Period    10,360,696    9,727,916 
Undistributed investment income—net    73,133    55,554 

16
    Year Ended December 31, 
    2005    2004 
Capital Share Transactions:         
Initial Shares         
Shares sold    117,732    105,180 
Shares issued for dividends reinvested    3,090    2,807 
Shares redeemed    (132,803)    (148,927) 
Net Increase (Decrease) in Shares Outstanding    (11,981)    (40,940) 
Service Shares         
Shares sold    24,455    45,252 
Shares issued for dividends reinvested    801    825 
Shares redeemed    (52,793)    (56,272) 
Net Increase (Decrease) in Shares Outstanding    (27,537)    (10,195) 

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.

        Year Ended December 31,     
Initial Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    14.46    11.83    8.72    11.97    17.00 
Investment Operations:                     
Investment income (loss)—net a    .12    .08    .06    .01    (.02) 
Net realized and unrealized                     
gain (loss) on investments    1.86    2.61    3.06    (3.26)    (5.00) 
Total from Investment Operations    1.98    2.69    3.12    (3.25)    (5.02) 
Distributions:                     
Dividends from investment income—net    (.08)    (.06)    (.01)    —    (.01) 
Net asset value, end of period    16.36    14.46    11.83    8.72    11.97 
Total Return (%)    13.80    22.85    35.81    (27.15)    (29.56) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.82    2.11    2.41    2.01    2.22 
Ratio of net expenses                     
to average net assets    1.49    1.49    1.50    1.50    1.50 
Ratio of net investment income                     
(loss) to average net assets    .79    .64    .66    .06    (.13) 
Portfolio Turnover Rate    62.51    90.61    145.42    226.63    201.61 
Net Assets, end of period ($ x 1,000)    8,096    7,329    6,483    5,103    9,099 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

18
        Year Ended December 31,     
Service Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    14.46    11.84    8.72    11.98    17.00 
Investment Operations:                     
Investment income (loss)—net a    .11    .08    .06    .01    (.06) 
Net realized and unrealized                     
gain (loss) on investments    1.88    2.60    3.07    (3.27)    (4.95) 
Total from Investment Operations    1.99    2.68    3.13    (3.26)    (5.01) 
Distributions:                     
Dividends from investment income—net    (.08)    (.06)    (.01)    —    (.01) 
Net asset value, end of period    16.37    14.46    11.84    8.72    11.98 
Total Return (%)    13.87    22.74    35.92    (27.21)    (29.50) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    2.05    2.36    2.66    2.26    2.55 
Ratio of net expenses                     
to average net assets    1.49    1.49    1.50    1.50    1.50 
Ratio of net investment income                     
(loss) to average net assets    .75    .61    .64    .05    (.46) 
Portfolio Turnover Rate    62.51    90.61    145.42    226.63    201.61 
Net Assets, end of period ($ x 1,000)    2,264    2,399    2,085    1,602    1,504 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering nine series, including the 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.

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 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.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

(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) 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

22

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.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $73,133, accumulated capital losses $4,949,713 and unrealized appreciation $2,577,851.

The accumulated capital loss carryover is available 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 periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $55,687 and $45,166, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for foreign currency transactions, the portfolio decreased accumulated undistributed investment income-net by $2,529 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $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

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended December 31, 2005, 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.

Dreyfus has agreed, from January 1, 2005 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 December 31, 2005, Dreyfus waived receipt of fees and assumed expenses of the portfolio of $35,358, 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

24

and to brokers and dealers acting as principal underwriter for their variable insurance products. The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $5,033 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 December 31, 2005, the portfolio was charged $51 pursuant to the transfer agency agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $8,786, chief compliance officer fees $1,858, Rule 12b-1 distribution plan fees $481 and transfer agency per account fees $9, which are offset against an expense reimbursement currently in effect in the amount of $2,032.

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

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $5,889,414 and $6,564,402, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $7,916,423 accordingly, accumulated net unrealized appreciation on investments was $2,578,073, consisting of $2,597,471 gross unrealized appreciation and $19,398 gross unrealized depreciation.

The Portfolio 25

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees
Dreyfus Investment Portfolios, Founders International Equity Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, Founders International Equity Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended,and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2005 by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Founders International Equity Portfolio at December 31, 2005, the results of its operations for the year then ended,the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006
26

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the portfolio elects to provide each shareholder with their portion of the portfolio’s foreign taxes paid and the income sourced from foreign countries.Accordingly, the portfolio hereby makes the following designations regarding its fiscal year ended December 31, 2005:

—the total amount of taxes paid to foreign countries was $23,541.

—the total amount of income sourced from foreign countries was $94,789.

As required by federal tax law rules, shareholders will receive notification of their proportionate share of foreign taxes paid and foreign source income for the 2005 calendar year with Form 1099-DIV which will be mailed by January 31, 2006.

The Portfolio 27

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO’S

INVESTMENT ADVISORY AGREEMENT (Unaudited)

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one year term, pursuant to which the Manager provides the portfolio with investment advisory and administrative services, and of the Sub-Investment Advisory Agreement between the Manager and Founders Asset Management LLC (“Founders”), an affiliate of the Manager, pursuant to which Founders provides day-to-day management of the portfolio’s portfolio.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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and discussed the nature, extent and quality of the services provided to the portfolio pursuant to the portfolio’s Investment Advisory Agreement, and by Founders pursuant to the Sub-Investment Advisory Agreement.The Manager’s representatives reviewed the portfolio’s distribution of accounts and 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 Board members also considered the Manager’s and Founder’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

28

and regulatory requirements.The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure, as well as the Manager’s supervisory activities over Founders.

Comparative Analysis of the Portfolio’s Performance and Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and noted that the total return performance of the portfolio’s Initial shares (which are not subject to a Rule 12b-1 plan) was above the average of Comparison Group I for the one-year period and was below the averages of Comparison Group I for the 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 above the Comparison Group II averages for the one-and three-year periods and was below the Comparison Group II average for the five-year period. It was noted that the five-year total return

The Portfolio 29

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

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 also noted that Lipper had reclassified the portfolio into the “international core-variable insurance products” funds category from the “international growth-variable insurance products” funds category after the Board had selected the comparison groups, and that performance information was given for both Lipper categories.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 averages of both Lipper categories for the one-year period, and was below the Comparison Group I and Comparison Group II averages for both Lipper categories for the 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 higher than the average expense ratio of Comparison Group I, and that the expense ratio of the portfolio’s Service shares was higher 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 bottom half (i.e., higher than or the same as a majority of other funds) in each comparison group.The Board members also considered the Manager’s contractual undertaking for the portfolio in effect through December 31, 2005.

Representatives of the Manager noted that the Manager or its affiliates do not manage other mutual funds or accounts with similar investment objectives, policies and strategies as the portfolio.

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 received and considered information 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 Manager’s

30

representatives stated that the methodology had also 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 Board members also considered potential benefits to the Manager and Founders from acting as investment adviser and sub-investment adviser, respectively, to the portfolio, including soft dollar arrangements with respect to trading of 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 and the Sub-Investment Advisory Agreement bears a reasonable relationship to the mix of services provided by the Manager and Founders, 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. Since the Manager, and not the portfolio, pays Founders pursuant to the Sub-Investment Advisory Agreement, the Board did not consider Founders’ profitability to be relevant to their deliberations.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.

The Portfolio 31

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

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 and Sub-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 and Founders to the portfolio are adequate and appropriate.

• The Board was satisfied with the portfolio’s overall total return performance.

• The Board concluded that the advisory fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, including the Manager’s current undertaking to limit the portfolio’s expense ratio, 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 and Sub-Investment Advisory Agreement were in the best interests of the portfolio and its shareholders.

32
BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

The Portfolio 33

BOARD MEMBERS INFORMATION (Unaudited) (continued) 
 
 
 
David W. Burke (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

34

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

The Portfolio 35

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director-Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager - Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager — Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager - Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

36

For More    Information 
 
 
 
Dreyfus    Custodian 
 
Investment Portfolios,     
    The Bank of New York 
Founders International     
    One Wall Street 
Equity Portfolio     
    New York, NY 10286 
200 Park Avenue     
 
New York, NY 10166    Transfer Agent & 
 
    Dividend Disbursing Agent 
Investment Adviser     
 
    Dreyfus Transfer, Inc. 
The Dreyfus Corporation     
    200 Park Avenue 
200 Park Avenue     
    New York, NY 10166 
New York, NY 10166     
 
    Distributor 
Sub-Investment Adviser     
 
    Dreyfus Service Corporation 
Founders Asset Management LLC 
    200 Park Avenue 
210 University Boulevard     
    New York, NY 10166 
Suite 800     
 
Denver, CO 80206     

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
15    Statement of Assets and Liabilities 
16    Statement of Operations 
17    Statement of Changes in Net Assets 
19    Financial Highlights 
21    Notes to Financial Statements 
28    Report of Independent Registered 
    Public Accounting Firm 
29    Important Tax Information 
30    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
36    Board Members Information 
38    Officers of the Fund 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios,

MidCap Stock Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, MidCap Stock Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, John O’Toole.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation
January 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 12-month period ended December 31, 2005, the portfolio’s Initial shares produced a total return of 9.17%, and its Service shares produced a total return of 8.93% .1 This compares with the total return of 12.56% provided by the portfolio’s benchmark, the Standard & Poor’s MidCap 400 Index (the “S&P 400), for the same period.2

We attribute the market’s rise primarily to sustained U.S. economic growth and better-than-expected corporate earnings reports.The stock market responded favorably to these conditions, with midcap stocks outperforming their small- and large-cap counterparts. The portfolio benefited from the trend in favor of midcap stocks, capturing particularly strong gains in the energy and technology sectors. However, the portfolio’s performance was hindered by relatively light exposure to high-flying coal stocks, the purchase of a few producer goods holdings and by declines in some interest-rate-sensitive financial investments. As a result, the portfolio delivered more modest returns than its benchmark.

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. 

We then use fundamental analysis to select the most attractive of the higher ranked securities, drawing on a variety of sources, including

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

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?

Higher oil and gas prices amid robust industrial demand for energy fueled record profits for many energy-related companies during 2005. As a result, energy stocks generated greater gains than other market sectors within the portfolio’s benchmark.What’s more, the portfolio’s energy-related results exceeded those of the benchmark’s energy components due to favorable individual stock selections, such as refinery operator Tesoro and diversified oil and gas company Energen.

Our security selection strategy also enabled the portfolio to outperform its benchmark in the technology sector. Top technology performers in 2005 included computer disk drive maker Western Digital, communication product developer Harris, and digital storage system maker Storage Technology, which benefited from a buyout offer from Sun Microsystems. Other holdings that notably contributed to the portfolio’s gains included medical services provider Coventry Health Care and natural foods supermarket chain Whole Foods Market, which rose on the strength of its successful program of geographic expansion. Both of these issues were sold during the reporting period.

On the negative side, the portfolio limited its exposure to the coal industry where certain individual stock prices failed to meet the portfolio’s disciplined, valuation-conscious investment criteria. However, coal stocks continued to rise as energy users looked for alternatives to high oil and gas prices. As a result, the portfolio’s performance in the producer goods sector suffered relative to the benchmark.Among other producer goods companies, purchase of shares in two residential construction firms,Toll Brothers and Standard-Pacific, which was sold after the reporting period, proved disappointing. Finally, in the financials sector, a few holdings further detracted from relative performance.

4

These included mortgage lender New Century Financial, which was undermined by rising short-term interest rates; and Puerto Rican-based savings and loan Doral Financial, which declined in response to accounting issues. Both of these issues were sold during the reporting period.

What is the portfolio’s current strategy?

The U.S. economy recently has shown signs of shifting from the early, recovery part of its cycle to a slower, steadier growth phase. In light of this development, the stock market currently appears to be favoring companies that historically have provided clear earnings visibility and the ability to deliver consistently positive financial results over the long term. We believe that this environment favors the portfolio’s disciplined investment approach. Specifically, we have continued to maintain a highly diversified and sector-neutral portfolio that seeks to invest in companies with consistent earnings histories and solid business prospects. At the same time, we also have remained fully committed to the portfolio’s midcap investment focus, where we have continued to find attractive investment opportunities among companies offering the high growth potential of smaller enterprises with the track record and management expertise of larger, better-established firms.

January 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 January 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

  PORTFOLIO PERFORMANCE
Average Annual Total Returns as of 12/31/05         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    5/1/98    9.17%    6.86%    6.58% 
Service shares    5/1/98    8.93%    6.67%    6.45% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
† Source: Lipper Inc. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in 
connection with investing in variable insurance contracts which will reduce returns. 
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, 
MidCap Stock Portfolio on 5/1/98 (inception date of Initial shares) to a $10,000 investment made in the Standard & 
Poor’s MidCap 400 Index (the “Index”) on that date. 

  6
The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% 
annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares 
from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from 
December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The 
performance figures for each share class reflect certain expense reimbursements, without which the performance of each 
share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the 
higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would 
have been lower. All dividends and capital gain distributions are reinvested. 
The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any 
expense reimbursements).The Index is a widely accepted, unmanaged total return index measuring the performance of the 
midsize company segment of the U.S. stock market and does not take into account charges, fees and other expenses. 
Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the 
Financial Highlights section of the prospectus and elsewhere in this report. 

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.12    $ 5.21 
Ending value (after expenses)    $1,069.80    $1,068.40 

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 December 31, 2005

    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.02    $ 5.09 
Ending value (after expenses)    $1,021.22    $1,020.16 

† Expenses are equal to the portfolio’s annualized expense ratio of .79% for Initial shares and 1.00% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8
STATEMENT OF INVESTMENTS
December 31, 2005
Common Stocks—97.7%    Shares    Value ($) 
Consumer Cyclical—13.9%         
Abercrombie & Fitch, Cl. A    66,200    4,314,916 
Aeropostale    77,500 a    2,038,250 
American Eagle Outfitters    155,900    3,582,582 
Applebee’s International    105,800    2,390,022 
Autoliv    47,400    2,152,908 
Barnes & Noble    69,800    2,978,366 
BorgWarner    35,800    2,170,554 
CDW    83,500    4,807,095 
Chico’s FAS    77,700 a    3,413,361 
Choice Hotels International    70,400 b    2,939,904 
Claire’s Stores    116,800    3,412,896 
Domino’s Pizza    81,100    1,962,620 
Genuine Parts    37,300    1,638,216 
Guitar Center    43,900 a    2,195,439 
Harman International Industries    36,600    3,581,310 
Hibbett Sporting Goods    57,650 a    1,641,872 
HNI    42,200    2,318,046 
K-Swiss, Cl. A    52,700    1,709,588 
Michaels Stores    112,600    3,982,662 
Pacific Sunwear of California    79,300 a    1,976,156 
Penn National Gaming    78,400 a    2,583,280 
Polaris Industries    34,800 b    1,746,960 
Sonic    54,200 a    1,598,900 
Toro    43,600    1,908,372 
        63,044,275 
Consumer Staples—2.0%         
Gold Kist    158,000 a    2,362,100 
Hormel Foods    141,900    4,637,292 
Pilgrim’s Pride    62,000 b    2,055,920 
        9,055,312 
Energy—10.0%         
Energen    46,400    1,685,248 
Hydril    45,200 a    2,829,520 
Lone Star Technologies    46,900 a    2,422,854 
Newfield Exploration    83,300 a    4,170,831 
NiSource    97,900    2,042,194 
Noble Energy    80,900    3,260,270 

The Portfolio 9

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Energy (continued)         
Oneok    74,100    1,973,283 
Pioneer Natural Resources    66,400 b    3,404,328 
Plains Exploration & Production    82,000 a    3,257,860 
Pride International    174,000 a    5,350,500 
Questar    48,700    3,686,590 
Southwestern Energy    67,100 a    2,411,574 
Tesoro    45,000    2,769,750 
UGI    109,400    2,253,640 
Unit    18,700 a    1,029,061 
Veritas DGC    77,700 a    2,757,573 
        45,305,076 
Health Care—11.4%         
Alkermes    124,500 a    2,380,440 
Apria Healthcare Group    29,300 a    706,423 
Barr Pharmaceuticals    77,400 a    4,821,246 
Covance    51,400 a    2,495,470 
Dade Behring Holdings    54,400    2,224,416 
Edwards Lifesciences    54,800 a    2,280,228 
Endo Pharmaceuticals Holdings    59,500 a    1,800,470 
Hospira    68,900 a    2,947,542 
Humana    53,500 a    2,906,655 
Invitrogen    55,100 a,b    3,671,864 
Kindred Healthcare    47,700 a    1,228,752 
King Pharmaceuticals    68,300 a    1,155,636 
Laboratory Corp. of America Holdings    61,100 a    3,290,235 
Magellan Health Services    97,500 a    3,066,375 
Sepracor    70,400 a,b    3,632,640 
Sybron Dental Specialties    56,300 a    2,241,303 
Thermo Electron    89,400 a    2,693,622 
United Therapeutics    25,500 a,b    1,762,560 
Varian Medical Systems    87,100 a    4,384,614 
WellCare Health Plans    46,400 a    1,895,440 
        51,585,931 
Interest Sensitive—18.6%         
AG Edwards    70,800    3,317,688 
AMB Property    50,800    2,497,836 

10

Common Stocks (continued)    Shares    Value ($) 
Interest Sensitive (continued)         
American Capital Strategies    54,500    1,973,445 
American Financial Group/OH    116,000    4,443,960 
AmeriCredit    154,800 a,b    3,967,524 
Bank of Hawaii    75,000    3,865,500 
CBL & Associates Properties    76,900    3,038,319 
City National/Beverly Hills, CA    24,900    1,803,756 
Colonial BancGroup    144,900    3,451,518 
Colonial Properties Trust    23,300    978,134 
Dime Bancorp (Warrants)    19,900 a    2,587 
Downey Financial    32,200 b    2,202,158 
Essex Property Trust    23,000    2,120,600 
Federated Investors, Cl. B    71,000    2,629,840 
First Marblehead    25,700 b    844,502 
FirstFed Financial    57,500 a    3,134,900 
Hanover Insurance Group    89,300    3,730,061 
IndyMac Bancorp    64,900    2,532,398 
Janus Capital Group    117,000    2,179,710 
Kimco Realty    50,500    1,620,040 
Legg Mason    18,000    2,154,420 
Lincoln National    60,400    3,203,012 
Mercury General    35,000    2,037,700 
Pennsylvania Real Estate Investment Trust    66,600    2,488,176 
Philadelphia Consolidated Holding    26,000 a,b    2,513,940 
Selective Insurance Group    42,200    2,240,820 
State Auto Financial    66,400    2,420,944 
SVB Financial Group    57,200 a    2,679,248 
Synovus Financial    121,600    3,284,416 
Unitrin    55,400    2,495,770 
Weingarten Realty Investors    108,500 b    4,102,385 
Wilmington Trust    101,500    3,949,365 
        83,904,672 
Producer Goods—15.4%         
Brady, Cl. A    56,500    2,044,170 
CH Robinson Worldwide    132,400 b    4,902,772 
Commercial Metals    40,900    1,535,386 
Eagle Materials    20,900 b    2,557,324 

The Portfolio 11

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares        Value ($) 
Producer Goods (continued)             
Energizer Holdings    49,300    a    2,454,647 
Florida Rock Industries    37,650        1,847,109 
FMC    63,000    a    3,349,710 
Graco    52,300        1,907,904 
Joy Global    74,550        2,982,000 
Kennametal    36,300        1,852,752 
Landstar System    51,900        2,166,306 
Lennar, Cl. A    51,000        3,112,020 
Overseas Shipholding Group    58,300        2,937,737 
Packaging Corp. of America    89,800        2,060,910 
Peabody Energy    65,000        5,357,300 
Quanex    36,300        1,813,911 
Scotts Miracle-Gro, Cl. A    60,900        2,755,116 
Sherwin-Williams    42,600        1,934,892 
Sigma-Aldrich    36,400        2,303,756 
Silgan Holdings    53,100        1,917,972 
Standard-Pacific    65,400        2,406,720 
Stanley Works    57,800        2,776,712 
Teledyne Technologies    58,800    a    1,711,080 
Teleflex    32,800        2,131,344 
Temple-Inland    33,300        1,493,505 
Toll Brothers    54,800    a    1,898,272 
Watsco    37,500        2,242,875 
Yellow Roadway    69,000    a    3,078,090 
            69,532,292 
Services—8.9%             
Bright Horizons Family Solutions    39,600    a    1,467,180 
Catalina Marketing    69,000        1,749,150 
Cognizant Technology Solutions, Cl. A    98,200    a    4,944,370 
Copart    125,200    a    2,887,112 
Corporate Executive Board    30,900        2,771,730 
Education Management    65,600    a    2,198,256 
Equifax    70,500        2,680,410 
Getty Images    31,200    a    2,785,224 
Global Payments    69,700        3,248,717 
ITT Educational Services    53,800    a    3,180,118 
John H. Harland    43,600        1,639,360 

12

Common Stocks (continued)    Shares    Value ($) 
Services (continued)         
NAVTEQ    28,200 a    1,237,134 
Republic Services    95,100    3,571,005 
Rollins    66,600    1,312,686 
Washington Post, Cl. B    5,900    4,513,500 
        40,185,952 
Technology—12.3%         
Adtran    37,100    1,103,354 
Amphenol, Cl. A    82,100    3,633,746 
Arrow Electronics    159,600 a    5,111,988 
Avnet    124,000 a    2,968,560 
Cadence Design Systems    188,500 a    3,189,420 
Cymer    56,800 a    2,016,968 
Harris    147,300    6,335,373 
Imation    55,200    2,543,064 
Lam Research    71,000 a    2,533,280 
MEMC Electronic Materials    114,500 a    2,538,465 
Microchip Technology    68,000    2,186,200 
Novell    290,100 a    2,561,583 
SanDisk    72,600 a    4,560,732 
Silicon Laboratories    75,700 a    2,775,162 
Sybase    156,800 a    3,427,648 
Tech Data    66,200 a    2,626,816 
Transaction Systems Architects    88,300 a    2,542,157 
Western Digital    153,400 a    2,854,774 
        55,509,290 
Utilities—5.2%         
Black Hills    83,400    2,886,474 
CenturyTel    83,800    2,778,808 
Great Plains Energy    105,800    2,958,168 
NRG Energy    63,600 a,b    2,996,832 
Pinnacle West Capital    54,100    2,237,035 
SCANA    101,400    3,993,132 
TECO Energy    117,600    2,020,368 
WPS Resources    69,900 b    3,866,169 
        23,736,986 
Total Common Stocks         
(cost $394,306,310)        441,859,786 

The Portfolio 13

  STATEMENT OF INVESTMENTS (continued)
    Principal     
Short-Term Investment—1.2%    Amount ($)    Value ($) 
Repurchase Agreement;         
Greenwich Capital Markets,         
3.45%, dated 12/30/2005, due 1/3/2006     
in the amount of $5,452,089 (fully collateralized     
by $4,355,000 Federal Home Loan Mortgage Corp.,     
Bonds, 6.75%, due 3/15/2031, value $5,559,452)     
(cost $5,450,000)    5,450,000    5,450,000 
 
Investment of Cash Collateral         
for Securities Loaned—3.6%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Fund         
(cost $16,235,817)    16,235,817 c    16,235,817 
 
Total Investments (cost $415,992,127)    102.5%    463,545,603 
Liabilities, Less Cash and Receivables    (2.5%)    (11,492,241) 
Net Assets    100.0%    452,053,362 

a Non-income producing. 
b All or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio’s 
securities on loan is $18,295,067 and the total market value of the collateral held by the portfolio is $18,915,106, 
consisting of cash collateral of $16,235,817 and U.S. Government and agency securities valued at $2,679,289. 
c Investment in affiliated money market mutual fund. 

Portfolio Summary †             
 
    Value (%)        Value (%) 
Interest Sensitive    18.6    Services    8.9 
Producer Goods    15.4    Utilities    5.2 
Consumer Cyclical    13.9    Short-Term/Money     
Technology    12.3    Market Investments    4.8 
Health Care    11.4    Consumer Staples    2.0 
Energy    10.0        102.5 
 
† Based on net assets.             
See notes to financial statements.             

  14

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

    Cost    Value 
Assets ($):         
Investments in securities—See Statement         
of Investments (including securities on loan,     
valued at $18,295,067)—Note 1(b):         
Unaffiliated issuers    399,756,310    447,309,786 
Affiliated issuers    16,235,817    16,235,817 
Cash        51,303 
Receivable for investment securities sold        9,251,946 
Dividends and interest receivable        406,734 
Receivable for shares of Beneficial Interest subscribed    14,438 
Prepaid expenses        10,124 
        473,280,148 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    318,535 
Liability for securities on loan—Note 1(b)        16,235,817 
Payable for investment securities purchased    4,125,975 
Payable for shares of Beneficial Interest redeemed    488,125 
Accrued expenses        58,334 
        21,226,786 
Net Assets ($)        452,053,362 
Composition of Net Assets ($):         
Paid-in capital        330,370,552 
Accumulated undistributed investment income—net    1,562,813 
Accumulated net realized gain (loss) on investments    72,566,521 
Accumulated net unrealized appreciation         
(depreciation) on investments        47,553,476 
Net Assets ($)        452,053,362 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    362,789,279    89,264,083 
Shares Outstanding    18,940,176    4,682,700 
Net Asset Value Per Share ($)    19.15    19.06 

See notes to financial statements.

The Portfolio 15

STATEMENT OF OPERATIONS
Year Ended December 31, 2005
Investment Income ($):     
Income:     
Cash dividends (net of $1,051 foreign taxes withheld at source)    5,107,193 
Interest    146,339 
Income from securities lending    28,108 
Total Income    5,281,640 
Expenses:     
Investment advisory fee—Note 3(a)    3,246,675 
Distribution fees—Note 3(b)    210,152 
Prospectus and shareholders’ reports    63,003 
Professional fees    51,150 
Custodian fees—Note 3(b)    40,549 
Trustees’ fees and expenses—Note 3(c)    10,069 
Shareholder servicing costs—Note 3(b)    3,997 
Registration fees    1,930 
Miscellaneous    13,659 
Total Expenses    3,641,184 
Less—waiver of fees     
due to undertaking—Note 3(a)    (37,454) 
Less—reduction in custody fees due     
to earnings credits—Note 1(b)    (1,063) 
Net Expenses    3,602,667 
Investment Income—Net    1,678,973 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    72,458,985 
Net unrealized appreciation (depreciation) on investments    (35,672,859) 
Net Realized and Unrealized Gain (Loss) on Investments    36,786,126 
Net Increase in Net Assets Resulting from Operations    38,465,099 

See notes to financial statements.
16

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment income—net    1,678,973    1,483,312 
Net realized gain (loss) on investments    72,458,985    35,312,341 
Net unrealized appreciation         
(depreciation) on investments    (35,672,859)    16,976,570 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    38,465,099    53,772,223 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial shares    (105,741)    (1,247,333) 
Service shares    —    (140,525) 
Net realized gain on investments:         
Initial shares    (1,407,926)    (8,014,833) 
Service shares    (339,127)    (1,899,359) 
Total Dividends    (1,852,794)    (11,302,050) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    33,046,475    38,662,714 
Service shares    11,856,989    26,036,803 
Dividends reinvested:         
Initial shares    1,513,667    9,262,166 
Service shares    339,127    2,039,884 
Cost of shares redeemed:         
Initial shares    (46,371,291)    (39,708,550) 
Service shares    (11,602,504)    (12,581,127) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (11,217,537)    23,711,890 
Total Increase (Decrease) in Net Assets    25,394,768    66,182,063 
Net Assets ($):         
Beginning of Period    426,658,594    360,476,531 
End of Period    452,053,362    426,658,594 
Undistributed investment income—net    1,562,813    117,705 

The Portfolio 17

STATEMENT OF CHANGES IN NET ASSETS (continued)
    Year Ended December 31, 
    2005    2004 
Capital Share Transactions:         
Initial Shares         
Shares sold    1,864,146    2,387,774 
Shares issued for dividends reinvested    87,850    531,785 
Shares redeemed    (2,589,219)    (2,450,805) 
Net Increase (Decrease) in Shares Outstanding    (637,223)    468,754 
Service Shares         
Shares sold    668,722    1,619,530 
Shares issued for dividends reinvested    19,751    117,505 
Shares redeemed    (655,124)    (778,615) 
Net Increase (Decrease) in Shares Outstanding    33,349    958,420 

See notes to financial statements.
18
  FINANCIAL HIGHLIGHTS

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

        Year Ended December 31,     
Initial Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    17.62    15.82    12.04    13.80    14.29 
Investment Operations:                     
Investment income—net a    .08    .07    .04    .04    .03 
Net realized and unrealized                     
gain (loss) on investments    1.53    2.22    3.78    (1.76)    (.50) 
Total from Investment Operations    1.61    2.29    3.82    (1.72)    (.47) 
Distributions:                     
Dividends from investment income—net    (.01)    (.07)    (.04)    (.04)    (.02) 
Dividends from net realized                     
gain on investments    (.07)    (.42)    —    —    — 
Total Distributions    (.08)    (.49)    (.04)    (.04)    (.02) 
Net asset value, end of period    19.15    17.62    15.82    12.04    13.80 
Total Return (%)    9.17    14.48    31.72    (12.49)    (3.26) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .79    .78    .82    .85    .89 
Ratio of net expenses                     
to average net assets    .79    .78    .82    .85    .89 
Ratio of net investment income                     
to average net assets    .43    .43    .32    .32    .24 
Portfolio Turnover Rate    99.27    79.75    74.15    69.15    76.37 
Net Assets, end of period ($ x 1,000)    362,789    344,979    302,253    218,387    181,028 

  a Based on average shares outstanding at each month end.
See notes to financial statements.

The Portfolio 19

FINANCIAL HIGHLIGHTS (continued)
        Year Ended December 31,     
Service Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    17.57    15.77    12.02    13.78    14.29 
Investment Operations:                     
Investment income—net a    .04    .04    .02    .02    .01 
Net realized and unrealized                     
gain (loss) on investments    1.52    2.21    3.75    (1.75)    (.50) 
Total from Investment Operations    1.56    2.25    3.77    (1.73)    (.49) 
Distributions:                     
Dividends from investment income—net    —    (.03)    (.02)    (.03)    (.02) 
Dividends from net realized                     
gain on investments    (.07)    (.42)    —    —    — 
Total Distributions    (.07)    (.45)    (.02)    (.03)    (.02) 
Net asset value, end of period    19.06    17.57    15.77    12.02    13.78 
Total Return (%)    8.93    14.23    31.48    (12.64)    (3.36) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.04    1.03    1.06    1.10    1.17 
Ratio of net expenses                     
to average net assets    1.00    1.00    1.00    1.00    1.00 
Ratio of net investment income                     
to average net assets    .22    .22    .12    .15    .07 
Portfolio Turnover Rate    99.27    79.75    74.15    69.15    76.37 
Net Assets, end of period ($ x 1,000)    89,264    81,680    58,224    18,320    9,764 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

20

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering nine series, including the 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 21

NOTES TO FINANCIAL STATEMENTS (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.

22

(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.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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The portfolio will be 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 would bear 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

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

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 portfolio 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, 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.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $25,722,338, undistributed capital gains $48,384,854 and unrealized appreciation $47,575,618.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $105,741 and $1,387,858 and long-term capital gains $1,747,053 and $9,914,192, respectively.

24

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for real estate investment trusts, the portfolio decreased accumulated undistributed investment income-net by $128,124 and increased accumulated net realized gain (loss) on investments by the same amount.

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 December 31, 2005, 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.

The Manager had agreed, from January 1, 2005 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 December 31, 2005, the Manager waived receipt of fees of $37,454, 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

The Portfolio 25

NOTES TO FINANCIAL STATEMENTS (continued)

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 December 31, 2005, Service shares were charged $210,152 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $787 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 December 31, 2005, the portfolio was charged $40,549 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $291,065, Rule 12b-1 distribution plan fees $19,113, custodian fees $9,697, chief compliance officer fees $1,858 and transfer agency per account fees $137, which are offset against an expense reimbursement currently in effect in the amount of $3,335.

(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.

26

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $425,370,349 and $439,998,988, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $415,969,985; accordingly, accumulated net unrealized appreciation on investments was $47,575,618, consisting of $61,990,492 gross unrealized appreciation and $14,414,874 gross unrealized depreciation.

The Portfolio 27

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, MidCap Stock Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios, MidCap Stock Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, MidCap Stock Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U. S. generally accepted accounting principles.

New York, New York
February 6, 2006
28

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates $.0719 per share as a long-term capital gain distribution paid on March 31, 2005 and also the portfolio hereby designates 98.62% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

The Portfolio 29

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO’S

INVESTMENT ADVISORY AGREEMENT (Unaudited)

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one-year term, pursuant to which 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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and 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 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 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.

30

Comparative Analysis of the Portfolio’s Performance, Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and 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 above the averages of Comparison Group II for the one- and five-year periods and was below the average of Comparison Group II for the three-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 Portfolio 31

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

the performance of the portfolio’s Service shares thereafter.The Board members noted that the portfolio’s performance was showing a trend of improvement, and also noted management’s efforts to improve performance by reassessing 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 that the portfolio’s advisory fee ranked in the middle in each comparison group, 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, 2005.

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 Similar Accounts as compared to managing and providing services to the portfolio; it was noted that the Similar Funds were mutual funds included in the “mid-cap core” funds category by Lipper. The Manager’s representatives also reviewed the costs associated with distribution through intermediaries. The Board analyzed the differences

32

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 and 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 received and considered information 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 Manager’s representatives stated that the methodology had also 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 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.

The Portfolio 33

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

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 ser vices 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 showing a trend of improvement, the underperfor-mance of the portfolio’s total return versus its comparison groups may be attributable, in part, to the outperformance of lower-quality holdings of some funds in the comparison groups, and management is reassessing the factors included in the model used for selecting stocks for the portfolio.

34

• The Board concluded that the fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, including the Manager’s current undertaking to limit the portfolio’s expense ratio, 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 until February 28, 2006, prior to which the Board will reconsider the renewal for the remainder of the annual period (through August 31, 2006).

The Portfolio 35

BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

36

David W. Burke (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

The Portfolio 37

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

38

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

The Portfolio 39

NOTES

For More    Information 
 
Dreyfus    Transfer Agent & 
Investment Portfolios,    Dividend Disbursing Agent 
MidCap Stock Portfolio     
    Dreyfus Transfer, Inc. 
200 Park Avenue     
    200 Park Avenue 
New York, NY 10166     
    New York, NY 10166 
 
Investment Adviser    Distributor 
The Dreyfus Corporation     
    Dreyfus Service Corporation 
200 Park Avenue     
    200 Park Avenue 
New York, NY 10166     
    New York, NY 10166 
Custodian     
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
7    Understanding Your Portfolio’s Expenses 
7    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
8    Statement of Investments 
26    Statement of Financial Futures 
27    Statement of Assets and Liabilities 
28    Statement of Operations 
29    Statement of Changes in Net Assets 
30    Financial Highlights 
31    Notes to Financial Statements 
37    Report of Independent Registered 
    Public Accounting Firm 
38    Important Tax Information 
39    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
44    Board Members Information 
46    Officers of the Fund 
 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios, 
Small Cap Stock Index Portfolio 

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Small Cap Stock Index Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager,Thomas Durante, CFA.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation
January 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 12-month period ended December 31, 2005, the portfolio’s Service shares produced a total return of 7.23% .1 In comparison, the Standard & Poor’s SmallCap 600 Index (“S&P 600 Index”), the portfolio’s benchmark, produced a 7.68% return for the same period.2,3

While an expanding economy and higher corporate profits supported prices of small-cap stocks in 2005, returns on these stocks were tempered by concerns regarding rising short-term interest rates and volatile energy prices.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?

Despite healthy corporate profits and evidence of solid economic growth, investors became concerned soon after 2005 began that sharply higher energy prices might rekindle long-dormant inflationary pressures, potentially prompting the Federal Reserve Board (the “Fed”) to raise short-term interest rates more than previously expected. In fact, the Fed raised the overnight federal funds rate eight times in 2005, driving short-term interest rates from 2.25% at the start of the year to 4.25% at the end. Energy prices remained volatile, soaring in the weeks following hurricanes Katrina and Rita before moderating late in the year. In addition, investors began to look forward to the end of the Fed’s credit tightening campaign, sparking a modest stock market rally during the final months of the year.

As they have for the past several years, small-cap stocks generally continued to generate higher returns than large-cap stocks in 2005. A growing economy, low inflation and relatively low long-term borrowing rates apparently made investors comfortable with the risks associated with potentially more volatile equity investments. In addition, smaller companies generally were unaffected by the legal, regulatory and product-safety issues facing some very large companies in the financials and health care areas.

In this environment, energy stocks posted some of the S&P 600 Index’s stronger gains for the reporting period, as rising global demand for crude oil drove energy-related commodity prices to record levels. What’s more, many small-cap energy companies benefited from increased business to repair damage to oil production and refining facilities in the aftermath of the Gulf Coast hurricanes and mergers or acquisitions by large-cap energy companies which needed to integrate and expand their operations.

Industry consolidation also helped bolster stock prices in the health care sector, where HMOs fared especially well due to greater pricing power and lower costs.The medical products area also posted favorable returns because of rising demand for testing products designed for the Baby Boomer generation, which begins to turn 60 in 2006.

4

A number of companies in the home construction, mining, industrial parts and heavy machinery industries posted attractive results, primarily due to rising demand for these companies’ goods and services in an expanding economy. For example, steel producers benefited from oil and gas companies’ need for the construction materials used to build drilling platforms.

On the other hand, some bank stocks in the financial sector posted negative absolute returns, largely due to a slowdown in the housing market stemming from rising interest rates. In addition, a handful of consumer discretionary stocks disappointed, including manufacturers of all-terrain vehicles (ATVs), snowmobiles and jet skis, which experienced slower sales due to high fuel costs.

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.

January 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

  PORTFOLIO PERFORMANCE
Average Annual Total Returns    as of 12/31/05         
    Inception        From 
    Date    1 Year    Inception 
Portfolio    5/1/02    7.23%    9.22% 

† Source: Lipper Inc. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in 
connection with investing in variable insurance contracts which will reduce returns. 
The above graph compares a $10,000 investment made in Dreyfus Investment Portfolios, Small Cap Stock Index 
Portfolio on 5/1/02 (inception date) to a $10,000 investment made in the Standard & Poor’s SmallCap 600 Index 
(the “Index”) on that date.The portfolio is subject to a 0.25% annual Rule 12b-1 fee. All dividends and capital gain 
distributions are reinvested. 
The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses.The 
Index is a broad-based index and a widely accepted, unmanaged index of overall small-cap stock market performance 
The Index reflects the reinvestment of dividends and, where applicable, capital gain distributions.The Index does not 
take into account charges, fees and other expenses. Further information relating to portfolio performance, including 
expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere 
in this report. 

6

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005

Expenses paid per $1,000 †    $ 3.11 
Ending value (after expenses)    $1,055.10 

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 December 31, 2005

Expenses paid per $1,000 †    $ 3.06 
Ending value (after expenses)    $1,022.18 

† Expenses are equal to the portfolio’s annualized expense ratio of .60%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

The Portfolio 7

  STATEMENT OF INVESTMENTS
December 31, 2005
Common Stocks—99.9%    Shares    Value ($) 
Consumer Cyclical—14.9%         
Aaron Rents    33,000    695,640 
Albany International, Cl. A    25,500    922,080 
Angelica    6,800    112,472 
Arctic Cat    14,100    282,846 
Ashworth    6,900 a    58,305 
Audiovox, Cl. A    15,100 a    209,286 
Aztar    26,900 a    817,491 
Bally Total Fitness Holding    17,900 a,b    112,412 
Bassett Furniture Industries    8,900    164,650 
Brown Shoe    15,800    670,394 
Burlington Coat Factory Warehouse    12,100    486,541 
Casey’s General Stores    41,900    1,039,120 
Cato, Cl. A    28,550    612,397 
CEC Entertainment    27,650 a    941,206 
Children’s Place Retail Stores    18,700 a    924,154 
Christopher & Banks    27,550    517,389 
Coachmen Industries    12,100    142,901 
Cost Plus    13,700 a    234,955 
CPI    5,900    110,389 
Dress Barn    17,400 a    671,814 
Ethan Allen Interiors    28,500    1,041,105 
Finish Line, Cl. A    36,900    642,798 
Fleetwood Enterprises    47,500 a    586,625 
Fossil    36,300 a    780,813 
Fred’s    31,300    509,251 
Frontier Airlines    23,200 a,b    214,368 
Genesco    20,600 a    799,074 
Great Atlantic & Pacific Tea    11,400 a    362,292 
Group 1 Automotive    17,700 a    556,311 
Guitar Center    22,000 a    1,100,220 
Gymboree    24,500 a    573,300 
Hancock Fabrics/DE    6,100 b    24,827 
Haverty Furniture Cos.    17,100    220,419 
Hibbett Sporting Goods    31,800 a    905,664 
HOT Topic    32,470 a    462,697 
Ihop    16,400    769,324 
Insight Enterprises    38,000 a    745,180 

8

Common Stocks (continued)    Shares    Value ($) 
Consumer Cyclical (continued)         
Interface, Cl. A    32,300 a    265,506 
J Jill Group    12,000 a    228,360 
Jack in the Box    29,300 a    1,023,449 
Jakks Pacific    23,400 a,b    489,996 
Jo-Ann Stores    16,925 a    199,715 
JOS A Bank Clothiers    9,400 a    408,054 
K-Swiss, Cl. A    23,900    775,316 
K2    32,800 a    331,608 
Kellwood    21,800    520,584 
La-Z-Boy    37,900 b    513,924 
Landry’s Restaurants    12,500    333,875 
Lenox Group    14,400 a    190,656 
Linens ‘n Things    34,300 a    912,380 
Lone Star Steakhouse & Saloon    15,500    367,970 
Longs Drug Stores    23,400    851,526 
Marcus    16,300    383,050 
MarineMax    10,200 a    322,014 
Men’s Wearhouse    42,200 a    1,242,368 
Mesa Air Group    26,000 a    271,960 
Midas    10,100 a    185,436 
Monaco Coach    20,200    268,660 
Movie Gallery    16,000 b    89,760 
Multimedia Games    22,100 a,b    204,425 
National Presto Industries    3,100    137,485 
Nautilus    26,900 b    501,954 
O’Charleys    17,200 a    266,772 
Oshkosh Truck    57,800    2,577,302 
Oxford Industries    10,600    579,820 
Panera Bread, Cl. A    24,300 a    1,596,024 
Papa John’s International    11,400 a    676,134 
PEP Boys-Manny Moe & Jack    35,800    533,062 
PF Chang’s China Bistro    19,600 a,b    972,748 
Phillips-Van Heusen    28,400    920,160 
Pinnacle Entertainment    28,700 a    709,177 
Polaris Industries    34,900 b    1,751,980 
Quiksilver    91,800 a    1,270,512 
Rare Hospitality International    26,450 a    803,816 

The Portfolio 9

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Consumer Cyclical (continued)         
Red Robin Gourmet Burgers    11,400 a,b    580,944 
Russ Berrie & Co.    8,100    92,502 
Russell    24,500    329,770 
Ryan’s Restaurant Group    32,100 a    387,126 
School Specialty    17,900 a    652,276 
SCP Pool    42,525    1,582,781 
Select Comfort    30,700 a    839,645 
Shuffle Master    27,950 a,b    702,663 
Skywest    44,800    1,203,328 
Sonic    47,250 a    1,393,875 
Sonic Automotive    27,500    612,700 
Stage Stores    20,600 b    613,468 
Standard Motor Products    7,000    64,610 
Steak N Shake    21,800 a    369,510 
Stein Mart    25,300    459,195 
Stride Rite    29,800    404,088 
Sturm Ruger & Co.    16,000 b    112,160 
Superior Industries International    18,000 b    400,680 
Too    26,200 a    739,102 
Toro    35,500    1,553,835 
Tractor Supply    25,400 a    1,344,676 
Triarc Cos., Cl. B    38,700 b    574,695 
Wabash National    25,200 b    480,060 
Winnebago Industries    27,700 b    921,856 
WMS Industries    16,200 a    406,458 
Wolverine World Wide    46,000    1,033,160 
Zale    40,900 a    1,028,635 
        62,582,046 
Consumer Staples—2.6%         
Alliance One International    63,000    245,700 
American Italian Pasta, Cl. A    18,000 b    122,400 
Corn Products International    58,500    1,397,565 
Delta & Pine Land    29,700    683,397 
Flowers Foods    40,400    1,113,424 
Hain Celestial Group    27,800 a    588,248 
Hansen Natural    9,800 a,b    772,338 
J & J Snack Foods    6,600    392,106 

10

Common Stocks (continued)    Shares    Value ($) 
Consumer Staples (continued)         
Lance    25,400    473,202 
Libbey    10,100    103,222 
Nash Finch    11,700    298,116 
Peet’s Coffee & Tea    9,800 a    297,430 
Performance Food Group    31,000 a    879,470 
Playtex Products    44,800 a    612,416 
Ralcorp Holdings    24,200 a    965,822 
Sanderson Farms    12,100    369,413 
TreeHouse Foods    24,200 a    453,024 
United Natural Foods    29,300 a    773,520 
WD-40    14,200    372,892 
        10,913,705 
Energy—9.5%         
American States Water    11,650    358,820 
Atmos Energy    66,100    1,729,176 
Atwood Oceanics    9,800 a    764,694 
Cabot Oil & Gas    38,000    1,713,800 
Cal Dive International    60,000 a    2,153,400 
CARBO Ceramics    14,100    796,932 
Cascade Natural Gas    7,700    150,227 
Cimarex Energy    67,300    2,894,573 
Dril-Quip    5,500 a    259,600 
Energen    59,600    2,164,672 
Frontier Oil    46,700    1,752,651 
Hydril    15,800 a    989,080 
Laclede Group    17,200    502,412 
Lone Star Technologies    26,200 a    1,353,492 
New Jersey Resources    21,400    896,446 
Northwest Natural Gas    22,100    755,378 
Oceaneering International    21,400 a    1,065,292 
Penn Virginia    13,900    797,860 
Petroleum Development    14,700 a    490,098 
Piedmont Natural Gas    60,200 b    1,454,432 
Remington Oil & Gas    20,300 a    740,950 
South Jersey Industries    22,700    661,478 
Southern Union    77,543 a    1,832,341 
Southwest Gas    30,300    799,920 

The Portfolio 11

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Energy (continued)         
St. Mary Land & Exploration    43,600 b    1,604,916 
Stone Energy    22,400 a    1,019,872 
Swift Energy    22,700 a    1,023,089 
Tetra Technologies    25,700 a    784,364 
UGI    84,700    1,744,820 
Unit    37,000 a    2,036,110 
Veritas DGC    29,300 a    1,039,857 
Vintage Petroleum    42,500    2,266,525 
W-H Energy Services    21,100 a    697,988 
World Fuel Services    22,000    741,840 
        40,037,105 
Health Care—11.2%         
Alpharma, Cl. A    36,500    1,040,615 
Amedisys    12,000 a,b    506,880 
American Healthways    26,200 a    1,185,550 
American Medical Systems Holdings    56,100 a    1,000,263 
AMERIGROUP    40,400 a    786,184 
Amsurg    24,550 a    561,213 
Analogic    10,700    511,995 
Arqule    24,600 a    150,552 
Arthrocare    18,800 a    792,232 
Biolase Technology    8,800 b    70,312 
Biosite    13,500 a,b    759,915 
Bradley Pharmaceuticals    13,300 a,b    126,350 
Cambrex    21,100    396,047 
Chemed    20,500    1,018,440 
CNS    12,400    271,684 
Conmed    23,200 a    548,912 
Connetics    25,900 a    374,255 
Cooper Cos.    33,800    1,733,940 
Cyberonics    15,800 a    510,340 
Datascope    12,300    406,515 
Diagnostic Products    18,800    912,740 
DJ Orthopedics    18,000 a    496,440 
Enzo Biochem    22,866 a    283,996 
Haemonetics/Mass.    21,000 a    1,026,060 
Hologic    35,700 a    1,353,744 

12

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Hooper Holmes    53,500    136,425 
ICU Medical    12,000 a    470,520 
Idexx Laboratories    25,500 a    1,835,490 
Immucor    35,450 a    828,112 
Integra LifeSciences Holdings    15,200 a    538,992 
Intermagnetics General    18,600 a    593,340 
Invacare    24,800    780,952 
Kensey Nash    8,100 a,b    178,443 
Laserscope    15,100 a,b    339,146 
LCA-Vision    17,050    810,045 
Medicis Pharmaceutical, Cl. A    43,200 b    1,384,560 
Mentor    29,300    1,350,144 
Merit Medical Systems    18,400 a    223,376 
MGI Pharma    58,700 a    1,007,292 
Nature’s Sunshine Products    9,500    171,760 
NBTY    42,300 a    687,375 
Noven Pharmaceuticals    14,800 a    223,924 
Odyssey HealthCare    29,500 a    549,880 
Osteotech    11,400 a    56,658 
Owens & Minor    33,900    933,267 
Pediatrix Medical Group    20,400 a    1,806,828 
Pharmaceutical Product Development    40,200    2,490,390 
PolyMedica    19,000    635,930 
Possis Medical    12,900 a    128,355 
Regeneron Pharmaceuticals    34,200 a    545,490 
RehabCare Group    14,100 a    284,820 
Resmed    53,800 a    2,061,078 
Respironics    57,000 a    2,112,990 
Savient Pharmaceuticals    43,700 a    163,438 
SFBC International    14,700 a,b    235,347 
Sierra Health Services    20,700 a    1,655,172 
Sunrise Senior Living    26,900 a,b    906,799 
SurModics    13,000 a,b    480,870 
Sybron Dental Specialties    32,500 a    1,293,825 
Theragenics    25,000 a    75,500 
United Surgical Partners International    35,250 a    1,133,288 
USANA Health Sciences    8,500 a,b    326,060 

The Portfolio 13

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
Viasys Healthcare    24,100 a    619,370 
Vital Signs    5,900    252,638 
        47,133,063 
Interest Sensitive—15.3%         
Acadia Realty Trust    23,400    469,170 
Anchor Bancorp Wisconsin    13,800    418,692 
BankAtlantic Bancorp, Cl. A    38,800    543,200 
Bankunited Financial, Cl. A    23,700    629,709 
Boston Private Financial Holdings    26,400    803,088 
Brookline Bancorp    46,900    664,573 
Cash America International    23,700    549,603 
Centene    33,400    878,086 
Central Pacific Financial    25,000 a    898,000 
Chittenden    34,725    965,702 
Colonial Properties Trust    37,500    1,574,250 
Commercial Net Lease Realty    46,700    951,279 
Community Bank System    21,600    487,080 
Delphi Financial Group, Cl. A    24,200    1,113,442 
Dime Community Bancshares    19,500    284,895 
Downey Financial    16,400    1,121,596 
East West Bancorp    46,200    1,685,838 
EastGroup Properties    16,300    736,108 
Entertainment Properties Trust    23,000    937,250 
Essex Property Trust    18,700    1,724,140 
Fidelity Bankshares    15,100    493,770 
Financial Federal    13,500    600,075 
First Bancorp/Puerto Rico    69,700    864,977 
First Midwest Bancorp/IL    36,600    1,283,196 
First Republic Bank/San Francisco, CA    20,000    740,200 
FirstFed Financial    15,100 a    823,252 
Flagstar Bancorp    25,700 b    370,080 
Franklin Bank/Houston, TX    20,400 a    366,996 
Fremont General    55,200    1,282,296 
Glacier Bancorp    23,700    712,185 
Glenborough Realty Trust    27,600    499,560 
Gold Banc    28,600    521,092 
Hilb, Rogal & Hobbs    25,900    997,409 

14

Common Stocks (continued)    Shares    Value ($) 
Interest Sensitive (continued)         
Hudson United Bancorp    33,400    1,392,112 
Infinity Property & Casualty    16,300    606,523 
Investment Technology Group    33,400 a    1,183,696 
iPayment    11,400 a    473,328 
Irwin Financial    16,900    361,998 
Kilroy Realty    21,100    1,306,090 
LandAmerica Financial Group    14,600    911,040 
Lexington Corporate Properties Trust    43,600    928,680 
MAF Bancorp    21,100    873,118 
Nara Bancorp    18,000    320,040 
NCO Group    25,000 a    423,000 
New Century Financial    44,350 b    1,599,705 
Parkway Properties/MD    11,800    473,652 
Philadelphia Consolidated Holding    14,600 a    1,411,674 
Piper Jaffray Cos.    14,800 a    597,920 
Portfolio Recovery Associates    13,600 a    631,584 
Presidential Life    20,300    386,512 
PrivateBancorp    15,300    544,221 
ProAssurance    24,800 a,b    1,206,272 
Prosperity Bancshares    16,500    474,210 
Provident Bankshares    24,100    813,857 
Republic Bancorp/MI    54,803    652,156 
Rewards Network    10,000 a    64,000 
RLI    16,600    827,842 
Selective Insurance Group    22,400 b    1,189,440 
Shurgard Storage Centers, Cl. A    36,200    2,052,902 
South Financial Group    56,100    1,544,994 
Sovran Self Storage    13,600    638,792 
Sterling Bancshares/TX    39,900    616,056 
Sterling Financial/WA    26,780    668,964 
Stewart Information Services    15,600    759,252 
Susquehanna Bancshares    35,100    831,168 
SWS Group    11,900    249,186 
Town & Country Trust    12,300 b    415,863 
Trustco Bank NY    56,500    701,730 
UCBH Holdings    74,700    1,335,636 
UICI    27,500    976,525 

The Portfolio 15

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Interest Sensitive (continued)         
Umpqua Holdings    34,300    978,579 
United Bankshares    28,100    990,244 
United Fire & Casualty    14,900    602,407 
Whitney Holding    51,800    1,427,608 
Wintrust Financial    18,800    1,032,120 
World Acceptance    14,000 a    399,000 
Zenith National Insurance    29,300    1,351,316 
        64,215,801 
Producer Goods—22.4%         
AAR    25,900 a    620,305 
Acuity Brands    35,000    1,113,000 
Aleris International    24,065 a    775,856 
AM Castle & Co.    7,100 a    155,064 
AMCOL International    16,200    332,424 
AO Smith    18,500    649,350 
Apogee Enterprises    21,300    345,486 
Applied Industrial Technologies    22,200    747,918 
Aptargroup    28,000    1,461,600 
Arch Chemicals    19,200    574,080 
Arkansas Best    22,600    987,168 
Armor Holdings    23,800 a    1,015,070 
Astec Industries    12,300 a    401,718 
ASV    13,200 a,b    329,736 
Baldor Electric    22,200    569,430 
Barnes Group    16,400    541,200 
Belden CDT    33,300    813,519 
Brady, Cl. A    41,200    1,490,616 
Briggs & Stratton    40,100    1,555,479 
Brush Engineered Materials    15,500 a    246,450 
Buckeye Technologies    21,500 a    173,075 
Building Material Holding    12,500 b    852,625 
C&D Technologies    14,800    112,776 
Caraustar Industries    17,400 a    151,206 
Carpenter Technology    17,900    1,261,413 
Century Aluminum    17,600 a    461,296 
Champion Enterprises    58,600 a    798,132 
Chaparral Steel    16,000 a    484,000 

16

Common Stocks (continued)    Shares        Value ($) 
Producer Goods (continued)             
Chesapeake    18,700        317,526 
Clarcor    41,200        1,224,052 
Cleveland-Cliffs    18,000    b    1,594,260 
Commercial Metals    48,700        1,828,198 
Cubic    8,900    b    177,644 
Curtiss-Wright    17,000        928,200 
Deltic Timber    9,200        477,112 
Drew Industries    11,800    a    332,642 
DRS Technologies    22,700        1,167,234 
EDO    11,000        297,660 
EGL    25,800    a    969,306 
ElkCorp    13,800        464,508 
EMCOR Group    12,300    a    830,619 
Engineered Support Systems    33,037        1,375,661 
EnPro Industries    17,000    a    458,150 
Florida Rock Industries    37,600        1,844,656 
Forward Air    26,100        956,565 
Gardner Denver    20,500    a    1,010,650 
GenCorp    38,100    a    676,275 
Georgia Gulf    28,300        860,886 
Greatbatch    17,200    a    447,372 
Griffon    21,800    a,b    519,058 
HB Fuller    25,500        817,785 
Headwaters    34,500    a,b    1,222,680 
Heartland Express    37,100        752,759 
HUB Group, Cl. A    17,300    a    611,555 
Hughes Supply    52,900        1,896,465 
IDEX    40,400        1,660,844 
Insituform Technologies, Cl. A    17,500    a    338,975 
JLG Industries    41,900        1,913,154 
Kaman, Cl. A    19,300        380,017 
Kansas City Southern    56,300    a    1,375,409 
Kaydon    22,500        723,150 
Kirby    19,800    a    1,032,966 
Knight Transportation    42,675    b    884,653 
Landstar System    47,900        1,999,346 
Lawson Products    4,700        177,378 

The Portfolio 17

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Producer Goods (continued)         
Lennox International    42,300    1,192,860 
Lindsay Manufacturing    7,400    142,302 
Lufkin Industries    10,200    508,674 
Lydall    10,000 a    81,500 
M/I Homes    8,000    324,960 
MacDermid    19,600    546,840 
Manitowoc    24,000    1,205,280 
Massey Energy    58,700 b    2,222,969 
Maverick Tube    35,000 a    1,395,100 
MDC Holdings    24,649    1,527,745 
Meritage Homes    18,800 a    1,182,896 
Moog, Cl. A    30,250 a    858,495 
Mueller Industries    32,800    899,376 
Myers Industries    26,002    379,109 
NCI Building Systems    15,600 a    662,688 
Neenah Paper    11,600    324,800 
NS Group    17,000 a    710,770 
NVR    4,400 a    3,088,800 
Offshore Logistics    18,700 a    546,040 
Old Dominion Freight Line    22,250 a    600,305 
OM Group    18,700 a    350,812 
Omnova Solutions    15,800 a    75,840 
Penford    7,900    96,380 
PolyOne    64,100 a    412,163 
Pope & Talbot    9,700    80,801 
Quaker Chemical    5,900    113,457 
Quanex    22,000    1,099,340 
Regal-Beloit    23,300    824,820 
Reliance Steel & Aluminum    23,700    1,448,544 
Robbins & Myers    8,400    170,940 
Rock-Tenn, Cl. A    25,400    346,710 
Rogers    11,800 a    462,324 
RTI International Metals    17,300 a    656,535 
Ryerson Tull    16,300    396,416 
Schulman (A.)    24,800    533,696 
Schweitzer-Mauduit International    9,000    223,020 
SEACOR Holdings    14,700 a    1,001,070 

18

Common Stocks (continued)    Shares    Value ($) 
Producer Goods (continued)         
Simpson Manufacturing    28,600    1,039,610 
Skyline    6,000    218,400 
Spectrum Brands    28,000 a    568,680 
Standard-Pacific    53,000    1,950,400 
Standex International    9,500    263,720 
Steel Technologies    8,000    223,920 
Stewart & Stevenson Services    20,400    431,052 
Teledyne Technologies    28,600 a    832,260 
Texas Industries    19,600    976,864 
Tredegar    21,700    279,713 
Triumph Group    13,200 a    483,252 
United Stationers    27,800 a    1,348,300 
Universal Forest Products    13,900    767,975 
URS    33,700 a    1,267,457 
Valmont Industries    14,400    481,824 
Watsco    20,200    1,208,162 
Watts Water Technologies, Cl. A    19,500    590,655 
Wausau Paper    36,500    432,525 
Wellman    12,000    81,360 
Wolverine Tube    5,000 a    25,300 
Woodward Governor    8,500    731,085 
        94,462,253 
Services—7.9%         
ABM Industries    32,900    643,195 
Administaff    19,800    832,590 
Advo    25,250    711,545 
Arbitron    25,600    972,288 
Bowne & Co.    22,200    329,448 
Brightpoint    22,400 a    621,152 
CACI International, Cl. A    23,900 a    1,371,382 
CCE Spinco    46,000 a,b    602,600 
CDI    9,500    260,300 
Central Parking    13,800 b    189,336 
Cerner    24,800 a,b    2,254,568 
Ciber    41,200 a    271,920 
Consolidated Graphics    11,600 a    549,144 
Cross Country Healthcare    16,300 a    289,814 

The Portfolio 19

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Services (continued)         
Daktronics    11,600    343,012 
Digital Insight    26,700 a    854,934 
eFunds    36,300 a    850,872 
Factset Research Systems    28,100    1,156,596 
4Kids Entertainment    9,000 a    141,210 
G & K Services, Cl. A    17,400    682,950 
Gentiva Health Services    16,100 a    237,314 
Gevity HR    18,900    486,108 
Global Payments    52,800    2,461,008 
Healthcare Services Group    23,750    491,862 
Heidrick & Struggles International    14,400 a    461,520 
Intrado    14,900 a    342,998 
John H. Harland    23,700    891,120 
Keane    33,900 a    373,239 
Kronos/MA    25,300 a    1,059,058 
Labor Ready    45,200 a    941,064 
Mantech International, Cl. A    15,400 a    429,044 
MAXIMUS    17,400    638,406 
MIVA    15,000 a    74,250 
Mobile Mini    10,900 a    516,660 
NDCHealth    27,300    524,979 
Parexel International    19,700 a    399,122 
Paxar    27,300 a    535,899 
Pegasus Solutions    10,000 a    89,700 
Pre-Paid Legal Services    10,200 b    389,742 
Shaw Group    62,600 a    1,821,034 
Sourcecorp    12,900 a    309,342 
Spherion    48,400 a    484,484 
Standard Register    10,400    164,424 
Startek    9,600    172,800 
Talx    16,700    763,357 
Tetra Tech    45,300 a    709,851 
Thomas Nelson    9,700    239,105 
Vertrue    8,300 a,b    293,239 
Viad    17,400    510,342 
Volt Information Sciences    6,900 a    131,238 

20

Common Stocks (continued)    Shares    Value ($) 
Services (continued)         
Waste Connections    37,950 a    1,307,757 
Watson Wyatt & Co. Holdings    34,100    951,390 
        33,130,312 
Technology—14.6%         
Actel    16,300 a    207,499 
Adaptec    76,400 a    444,648 
Advanced Energy Industries    20,100 a    237,783 
Aeroflex    54,800 a    589,100 
Agilysys    28,600    521,092 
Altiris    20,000 a    337,800 
Anixter International    26,800    1,048,416 
Ansys    26,900 a    1,148,361 
Applied Signal Technology    8,000    181,600 
Artesyn Technologies    27,200 a,b    280,160 
ATMI    29,300 a    819,521 
Avid Technology    32,767 a    1,794,321 
Axcelis Technologies    77,100 a    367,767 
Bel Fuse, Cl. B    12,200    387,960 
Bell Microproducts    25,000 a    191,250 
Benchmark Electronics    32,300 a    1,086,249 
Black Box    13,800    653,844 
Blue Coat Systems    9,200 a    420,624 
Brooks Automation    54,212 a    679,276 
C-COR    29,200 a    141,912 
Captaris    20,000 a    73,800 
Carreker    15,900 a    79,341 
Catapult Communications    9,500 a    140,505 
Ceradyne    20,450 a    895,710 
Checkpoint Systems    30,200 a    744,430 
Cognex    37,200    1,119,348 
Coherent    25,200 a    747,936 
Cohu    17,600    402,512 
Coinstar    20,800 a,b    474,864 
Comtech Telecommunications    17,200 a    525,288 
CTS    27,800    307,468 
Cymer    30,800 a    1,093,708 

The Portfolio 21

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Dendrite International    33,000 a    475,530 
Digi International    16,400 a    172,036 
Dionex    17,800 a    873,624 
Ditech Communications    24,900 a    207,915 
DSP Group    24,200 a    606,452 
Electro Scientific Industries    25,700 a    620,655 
EPIQ Systems    13,400 a    248,436 
ESS Technology    25,500 a    87,465 
Esterline Technologies    20,600 a    766,114 
Exar    27,300 a    341,796 
FEI    18,000 a    345,060 
Filenet    32,700 a    845,295 
Flir Systems    54,800 a    1,223,684 
Gerber Scientific    22,200 a    212,454 
Global Imaging Systems    19,200 a    664,896 
Harmonic    48,500 a    235,225 
Hutchinson Technology    19,200 a    546,240 
Hyperion Solutions    48,200 a    1,726,524 
InfoSpace    21,300 a    549,966 
Input/Output    44,300 a,b    311,429 
Inter-Tel    20,800    407,056 
Internet Security Systems    32,500 a    680,875 
Itron    20,700 a    828,828 
j2 Global Communications    21,100 a,b    901,814 
JDA Software Group    20,700 a    352,107 
Keithley Instruments    12,800    178,944 
Komag    24,700 a    856,102 
Kopin    51,500 a    275,525 
Kulicke & Soffa Industries    36,700 a    324,428 
Littelfuse    17,300 a    471,425 
Manhattan Associates    23,700 a    485,376 
Mapinfo    15,100 a    190,411 
Meade Instruments    17,900 a    48,867 
Mercury Computer Systems    16,400 a    338,332 
Methode Electronics    31,000    309,070 
Micros Systems    31,000 a    1,497,920 
Microsemi    49,000 a    1,355,340 

22

Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
MRO Software    19,500 a    273,780 
MTS Systems    19,000    658,160 
Napster    28,000 a    98,560 
Netgear    27,000 a    519,750 
Network Equipment Technologies    11,000 a    48,400 
Novatel Wireless    20,200 a,b    244,622 
Open Solutions    13,900 a    318,588 
Park Electrochemical    18,200    472,836 
PC-Tel    9,800 a    85,848 
Pericom Semiconductor    16,200 a    129,114 
Phoenix Technologies    16,700 a    104,542 
Photon Dynamics    9,100 a    166,348 
Photronics    34,100 a    513,546 
Planar Systems    16,000 a,b    133,920 
Power Integrations    26,900 a    640,489 
Progress Software    32,700 a    928,026 
Quality Systems    7,100    544,996 
Radiant Systems    16,100 a    195,776 
Radisys    15,100 a    261,834 
Roper Industries    69,000    2,726,190 
Rudolph Technologies    8,600 a    110,768 
SBS Technologies    13,200 a    132,924 
Scansource    11,000 a    601,480 
Secure Computing    28,500 a    349,410 
Serena Software    24,800 a,b    581,312 
Skyworks Solutions    114,900 a    584,841 
Sonic Solutions    18,700 a,b    282,557 
SPSS    13,100 a    405,183 
Standard Microsystems    15,400 a    441,826 
Supertex    11,100 a    491,175 
Symmetricom    35,000 a    296,450 
Synaptics    19,000 a    469,680 
Take-Two Interactive Software    52,900 a,b    936,330 
Technitrol    32,600    557,460 
THQ    49,150 a,b    1,172,227 
Tollgrade Communications    9,600 a    104,928 
Trimble Navigation    42,800 a    1,518,972 

The Portfolio 23

  STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Technology (continued)         
Ultratech    12,900 a    211,818 
Varian Semiconductor Equipment Associates    29,300 a    1,287,149 
Veeco Instruments    18,000 a    311,940 
Viasat    17,800 a    475,794 
Vicor    12,100    191,301 
WebEx Communications    28,800 a    622,944 
Websense    20,000 a    1,312,800 
X-Rite    17,200    172,000 
        61,395,903 
Utilities—1.5%         
Allete    25,200    1,108,800 
Avista    37,900    671,209 
Central Vermont Public Service    10,100    181,901 
CH Energy Group    11,000    504,900 
Cleco    38,400    800,640 
Commonwealth Telephone Enterprises    19,000    641,630 
El Paso Electric    37,900 a    797,416 
General Communication, Cl. A    34,200 a    353,286 
Green Mountain Power    3,500    100,695 
UIL Holdings    11,100    510,489 
Unisource Energy    25,800    804,960 
        6,475,926 
Total Common Stocks         
(cost $323,608,105)        420,346,114 
    Principal     
Short-Term Investments—.1%    Amount ($)    Value ($) 
Repurchase Agreement—.1%         
Greenwich Capital Markets,         
3.45%, dated 12/30/2005, due 1/3/2006 in the     
amount of $390,150 (fully collateralized by $410,000     
Federal Farm Credit Bank, Bonds, 2%—2.25%,         
due 9/1/2006—9/17/2007, value $399,256)    390,000    390,000 

  24
    Principal     
Short-Term Investments (continued)    Amount ($)    Value ($) 
U.S. Treasury Bills—.0%         
3.53%, 1/5/2006    50,000 c    49,991 
3.84%, 2/23/2006    150,000 c    149,192 
        199,183 
Total Short-Term Investments         
(cost $589,132)        589,183 
 
Investment of Cash Collateral         
for Securities Loaned—6.7%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $28,126,614)    28,126,614 d    28,126,614 
Total Investments (cost $352,323,851)    106.7%    449,061,911 
Liabilities, Less Cash and Receivables    (6.7%)    (28,059,638) 
Net Assets    100.0%    421,002,273 

ADR—American Depository Receipts. 
a Non-income producing. 
b All or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio’s 
securities on loan is $30,940,191 and the total market value of the collateral held by the portfolio is $32,433,059 
consisting of cash collateral of $28,126,614 and U.S. Government and agency securities valued at $4,306,445. 
c Partially held by a broker in a segregated account as collateral for open financial futures positions. 
d Investment in affiliated money market mutual fund. 

Portfolio Summary †             
 
    Value (%)        Value (%) 
Producer Goods    22.4    Services    7.9 
Interest Sensitive    15.3    Short-Term/Money     
Consumer Cyclical    14.9    Market Investments    6.8 
Technology    14.6    Consumer Staples    2.6 
Health Care    11.2    Utilities    1.5 
Energy    9.5        106.7 
 
† Based on net assets.             
See notes to financial statements.             

The Portfolio 25

STATEMENT OF FINANCIAL FUTURES

December 31, 2005

        Market Value        Unrealized 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 12/31/2005 ($) 
 
Financial Futures Long                 
Russell 2000 E-mini    9    610,470    March 2006    (4,750) 

See notes to financial statements.
26

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

    Cost    Value 
Assets ($):         
Investments in securities—         
See Statement of Investments (including securities    324,197,237    420,935,297 
on loan, valued at $30,940,191)—Note 1(b):    28,126,614    28,126,614 
Cash        470,124 
Receivable for investment securities sold        1,442,831 
Dividends and interest receivable        450,536 
Receivable for shares of Beneficial Interest subscribed    37,380 
        451,462,782 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    218,834 
Liability for securities on loan—Note 1(b)        28,126,614 
Payable for investment securities purchased        1,636,910 
Payable for shares of Beneficial Interest redeemed        464,939 
Payable for futures variation margin—Note 4        13,212 
        30,460,509 
Net Assets ($)        421,002,273 
Composition of Net Assets ($):         
Paid-in capital        323,749,174 
Accumulated undistributed investment income—net        2,045,956 
Accumulated net realized gain (loss) on investments        (1,526,167) 
Accumulated net unrealized appreciation (depreciation)     
on investments [including ($4,750) net unrealized         
(depreciation) on financial futures]        96,733,310 
Net Assets ($)        421,002,273 
Shares Outstanding         
(unlimited number of $.001 par value shares of Beneficial Interest authorized)    25,262,847 
Net Asset Value, offering and redemption price per share ($)    16.66 

See notes to financial statements.

The Portfolio 27

STATEMENT OF OPERATIONS
Year Ended December 31, 2005
Investment Income ($):     
Income:     
Cash dividends (net of $1,708 foreign taxes withheld at source)    4,100,670 
Income from securities lending    179,668 
Interest    68,205 
Total Income    4,348,543 
Expenses:     
Investment advisory fee—Note 3(a)    1,316,618 
Distribution fees—Note 3(b)    940,442 
Interest expense—Note 2    11,936 
Loan commitment fees—Note 2    2,812 
Total Expenses    2,271,808 
Investment Income—Net    2,076,735 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    6,515,792 
Net realized gain (loss) on financial futures    77,109 
Net Realized Gain (Loss)    6,592,901 
Net unrealized appreciation (depreciation) on investments     
[including ($20,300) net unrealized (depreciation) on financial futures]    16,542,908 
Net Realized and Unrealized Gain (Loss) on Investments    23,135,809 
Net Increase in Net Assets Resulting from Operations    25,212,544 

See notes to financial statements.
28

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment income—net    2,076,735    1,361,938 
Net realized gain (loss) on investments    6,592,901    5,234,570 
Net unrealized appreciation         
(depreciation) on investments    16,542,908    45,925,100 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    25,212,544    52,521,608 
Dividends to Shareholders from ($):         
Investment income—net    —    (1,249,271) 
Net realized gain on investments    (997,515)    (7,019,384) 
Total Dividends    (997,515)    (8,268,655) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold    139,842,181    201,151,124 
Dividends reinvested    997,515    8,268,655 
Cost of shares redeemed    (99,227,774)    (77,951,241) 
Increase (Decrease) in Net Assets         
from Beneficial Interest Transactions    41,611,922    131,468,538 
Total Increase (Decrease) in Net Assets    65,826,951    175,721,491 
Net Assets ($):         
Beginning of Period    355,175,322    179,453,831 
End of Period    421,002,273    355,175,322 
Undistributed investment income—net    2,045,956    130,462 
Capital Share Transactions (Shares):         
Shares sold    8,833,017    14,321,753 
Shares issued for dividends reinvested    65,540    536,938 
Shares redeemed    (6,417,091)    (5,767,620) 
Net Increase (Decrease) in Shares Outstanding    2,481,466    9,091,071 

See notes to financial statements.

The Portfolio 29

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated.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 dis-tributions.These figures have been derived from the portfolio’s financial statements.

            Year Ended December 31, 
        2005    2004    2003    2002 a 
Per Share Data ($):                 
Net asset value, beginning of period    15.59    13.11    9.58    12.50 
Investment Operations:                 
Investment income—net b    .09    .08    .04    .03 
Net realized and unrealized                 
gain (loss) on investments    1.02    2.79    3.58    (2.94) 
Total from Investment Operations    1.11    2.87    3.62    (2.91) 
Distributions:                 
Dividends from investment income—net    —    (.06)    (.02)    (.01) 
Dividends from net realized                 
gain on investments    (.04)    (.33)    (.07)    — 
Total Distributions    (.04)    (.39)    (.09)    (.01) 
Net asset value, end of period    16.66    15.59    13.11    9.58 
Total Return (%)    7.23    21.89    37.78    (23.25)c 
Ratios/Supplemental Data (%):                 
Ratio of total expenses                 
to average net assets    .60    .60    .60    .40c 
Ratio of net investment income                 
to average net assets    .55    .57    .33    .27c 
Portfolio Turnover Rate    25.56    25.06    32.49    117.52c 
Net Assets, end of period ($ x 1,000)    421,002    355,175    179,454    42,094 
 
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.                 

30

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering nine series, including the 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 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 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

The Portfolio 31

NOTES TO FINANCIAL STATEMENTS (continued)

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.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 will be maintained at all times.

32

Cash collateral is invested in certain money market mutual funds managed by the Manager. The portfolio will be 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 would bear 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.

The Portfolio 33

NOTES TO FINANCIAL STATEMENTS (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.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $3,614,388, undistributed capital gains $8,410,145 and unrealized appreciation $85,228,566.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $101,131 and $4,419,498 and long-term capital gains $896,384 and $3,849,157, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for real estate investment trusts, the portfolio decreased accumulated undistributed investment income-net by $161,241, increased accumulated net realized gain (loss) on investments by $161,296 and decreased paid-in capital by $55. Net assets were not affected by this reclassification.

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.

The average daily amount of borrowings outstanding under the Facility during the period ended December 31, 2005 was approximately $360,500, with a related weighted average annualized interest rate of 3.31% .

34

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 expense, brokerage commissions, fees and expenses of independent counsel to the portfolio and the non-interested Board members, and 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 December 31, 2005, the portfolio was charged $940,442 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 $127,653 and Rule 12b-1 distribution plan fees $91,181.

(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.

The Portfolio 35

NOTES TO FINANCIAL STATEMENTS (continued)

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 December 31, 2005, amounted to $139,317,236 and $95,994,907, 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 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 December 31, 2005, are set forth in the Statement of Financial Futures.

At December 31, 2005, the cost of investments for federal income tax purposes was $363,833,345; accordingly, accumulated net unrealized appreciation on investments was $85,228,566, consisting of $108,613,527 gross unrealized appreciation and $23,384,961 gross unrealized depreciation.

36
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Small Cap Stock Index Portfolio

We have audited the accompanying statement of assets and liabilities, including the statements of investments and financial futures, of Dreyfus Investment Portfolios, Small Cap Stock Index Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period ended, and financial highlights for each of the periods indicated therein.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Small Cap Stock Index Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the indicated periods, in conformity with U.S. generally accepted accounting principles.

  New York, New York
February 6, 2006

The Portfolio 37

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates $.0390 per share as a long-term capital gain distribution of the $.0434 per share paid on March 31, 2005, and also hereby designates 57.13% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

38
INFORMATION ABOUT THE REVIEW
AND APPROVAL OF THE PORTFOLIO’S
INVESTMENT ADVISORY AGREEMENT (Unaudited)

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one year term, pursuant to which 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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and 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 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 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.

The Portfolio 39

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

Comparative Analysis of the Portfolio’s Performance and Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio and placed significant emphasis on comparisons to a group of comparable funds and to Lipper averages (with respect to performance only).The comparison group 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 noted that the comparison group consisted of only one other fund.The Board members did not rely on comparisons to Lipper averages with respect to the portfolio’s expense ratio 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 May 31, 2005, and noted that the portfolio’s one-year total return performance was higher than, and its three-year total return performance was comparable to, that of the other fund in the comparison group, and that the total return performance of the portfolio was above its Lipper category averages for the for the one- and three-year periods.The Board members also noted that the portfolio’s total return performance was below the averages of its benchmark, the S&P SmallCap 600 Index, for the one- and three-year periods. The Board members also discussed the portfolio’s expense ratio, noting that it was the same as the comparison group average.The Board reviewed the management fee of the comparison fund, noting that the portfolio’s advisory fee was lower than that of the comparison fund.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager by another mutual fund managed by the Manager with a similar investment objective, policies and strategies as the portfolio (the “Similar Fund”), and by another account managed by an affiliate of the Manager with a similar investment objective, policies

40

and strategies as the portfolio (collectively with the Similar Fund, 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; it was noted that the Similar Fund was a mutual fund included in the “small-cap core” funds category by Lipper. 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 Fund’s management fee was lower than the portfolio’s and 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 an affiliate of 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 received and considered information 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 Manager’s representatives stated that the methodology had also 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

The Portfolio 41

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

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.

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 ser vices provided by the Manager to the portfolio are adequate and appropriate.

• The Board was satisfied with the portfolio’s total return performance.

42

• The Board concluded that the fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, 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.

The Portfolio 43

BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

44

David W. Burke (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

The Portfolio 45

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

46

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager - Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

The Portfolio 47

NOTES

For More Information

Dreyfus Investment Portfolios,    Transfer Agent & 
Small Cap Stock Index Portfolio    Dividend Disbursing Agent 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
Investment Adviser    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue     
    Dreyfus Service Corporation 
New York, NY 10166     
    200 Park Avenue 
Custodian    New York, NY 10166 
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

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

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

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 1-800-SEC-0330.

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, 2005, 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.

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

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

    Contents 
 
    T H E P O R T F O L I O 
2    Letter from the Chairman 
3    Discussion of Performance 
6    Portfolio Performance 
8    Understanding Your Portfolio’s Expenses 
8    Comparing Your Portfolio’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
12    Statement of Assets and Liabilities 
13    Statement of Operations 
14    Statement of Changes in Net Assets 
15    Financial Highlights 
17    Notes to Financial Statements 
24    Report of Independent Registered 
    Public Accounting Firm 
25    Information About the Review 
and Approval of the Portfolio’s
Investment Advisory Agreement
30    Board Members Information 
32    Officers of the Fund 
    F O R M O R E I N F O R M AT I O N 
    Back Cover 

Dreyfus Investment Portfolios,

Technology Growth Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Investment Portfolios, Technology Growth Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, Mark Herskovitz.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments.

Thank you for your continued confidence and support.

The Dreyfus Corporation
January 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 12-month period ended December 31, 2005, the portfolio’s Initial shares produced a total return of 3.78%, and its Service shares produced a total return of 3.48% .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 3.37% and 4.91%, respectively, over the same period.2,3

Improving business fundamentals during the second half of 2005 more than offset lackluster conditions during the first half of the year, enabling technology stocks to post generally positive returns for the year overall.The portfolio outperformed the MS High Tech 35 Index, largely due to its focus on consumer-oriented technology companies, but fell short of the S&P 500 Index, which was driven higher by the positive effects of soaring oil and gas prices for energy providers.

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

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

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?

After concerns regarding rising short-term interest rates and soaring energy prices hindered the technology sector’s returns during the first half of 2005, business fundamentals appeared to improve over the second half of the year, driving technology stocks into positive territory for the reporting period overall. Consumer-oriented technology companies fared particularly well as several new technological trends boosted spending on electronics and other consumer products.

For example, longstanding portfolio holding Corning continued to advance on the strength of its leadership position in the manufacture of glass screens for flat-panel televisions, sales of which have soared.Apple Computer saw its stock price surge after the successful introduction of new products in its popular iPod music player line. Other holdings, such as on-demand application and content delivery company Akamai Technologies, benefited from the integration of computers and entertainment systems that has transformed the way Americans watch television. Finally, wireless “Bluetooth” technology appeared to gain traction, helping drive earnings higher for companies such as semiconductor manufacturer Broadcom.

Some non-consumer themes also helped support the portfolio’s 2005 results. Outsourcers Infosys Technologies and Cognizant Technology Solutions continued to benefit from the shift of certain business activities to overseas markets, especially India. The portfolio’s health care-related investments also fared relatively well, with gains posted by generic drug maker Teva Pharmaceutical Industries and biotechnology companies Amgen and Genentech.

Successes in these areas were partially offset by disappointments in others.Among software companies, Check Point Software Technologies

4

posted anemic growth in the maturing computer security market, while Symantec encountered heightened pricing and competitive pressures. Data storage provider Network Appliance also experienced slower growth, causing its stock to retreat from a relatively rich valuation. Finally, after posting robust, but volatile, returns over the past several years, investors reacted negatively to eBay’s acquisition of Internet telephony provider Skype.

What is the portfolio’s current strategy?

As of year-end, we are more optimistic than we have been in some time regarding business prospects for technology companies. In our view, the positive influences of some new technological trends are just beginning to be felt. However, improved outlooks for individual technology companies tend to be reflected quickly in their stock prices, requiring successful investors to be early in identifying new trends. Therefore, we have continued to emphasize industry leaders that we believe will have the potential to flourish over the long term, which we complement with shorter-term investments that we regard as poised for above-average gains.

January 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

  PORTFOLIO PERFORMANCE
Average Annual Total Returns as of 12/31/05         
    Inception            From 
    Date    1 Year    5 Years    Inception 
Initial shares    8/31/99    3.78%    (8.60)%    (4.96)% 
Service shares    8/31/99    3.48%    (8.87)%    (5.18)% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
†    Source: Lipper Inc. 
††    Source: Bloomberg L.P. 
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. 
The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in 
connection with investing in variable insurance contracts which will reduce returns. 
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Investment Portfolios, 
Technology Growth Portfolio on 8/31/99 (inception date of Initial shares) to a $10,000 investment made in the 
Morgan Stanley High Technology 35 Index (the “MS High Tech 35 Index”) and the Standard & Poor’s 500 
Composite Stock Price Index (the “S&P 500 Index”) on that date. 

6

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses.The MS High Tech 35 Index is an unmanaged, equal dollar-weighted index of 35 stocks from the electronics-based subsectors.The S&P 500 Index is a widely accepted, unmanaged index of U.S. stock market performance. Neither of the foregoing indices take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

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 July 1, 2005 to December 31, 2005. 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 December 31, 2005 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.30    $ 5.62 
Ending value (after expenses)    $1,106.40    $1,104.00 

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 December 31, 2005

    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 4.13    $ 5.40 
Ending value (after expenses)    $1,021.12    $1,019.86 

† Expenses are equal to the portfolio’s annualized expense ratio of .81% for Initial shares and 1.06% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8
STATEMENT OF INVESTMENTS
December 31, 2005
Common Stocks—92.1%    Shares    Value ($) 
Capital Goods—3.1%         
Corning    205,500 a    4,040,130 
Electronic Components & Instruments—6.4%     
Cognos    18,900 a    656,019 
EMC/Massachusetts    213,500 a    2,907,870 
Garmin    43,500 b    2,886,225 
Scientific-Atlanta    20,000    861,400 
Sirf Technology Holdings    22,000 a    655,600 
Trimble Navigation    10,000 a    354,900 
        8,322,014 
Health Care—7.1%         
Amgen    35,500 a    2,799,530 
Genentech    29,700 a    2,747,250 
Teva Pharmaceutical Industries, ADR    87,000    3,741,870 
        9,288,650 
Internet—11.3%         
Akamai Technologies    82,000 a    1,634,260 
Checkfree    53,300 a    2,446,470 
eBay    29,400 a    1,271,550 
Google, Cl. A    12,500 a    5,185,750 
Yahoo!    109,900 a    4,305,882 
        14,843,912 
Semiconductors—18.7%         
Applied Materials    112,000    2,009,280 
Broadcom, Cl. A    83,500 a    3,937,025 
Intel    61,000    1,522,560 
Kla-Tencor    50,500    2,491,165 
Linear Technology    54,000    1,947,780 
Marvell Technology Group    80,000 a    4,487,200 
National Semiconductor    86,000    2,234,280 
Taiwan Semiconductor Manufacturing    2,072,201    3,945,667 
Texas Instruments    59,500    1,908,165 
        24,483,122 

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)
Common Stocks (continued)    Shares    Value ($) 
Software & Services—12.9%         
Adobe Systems    131,600    4,863,936 
Automatic Data Processing    68,700    3,152,643 
Electronic Arts    55,000 a    2,877,050 
Microsoft    119,400    3,122,310 
Red Hat    12,000 a    326,880 
SAP, ADR    56,500    2,546,455 
        16,889,274 
Technology—23.8%         
Accenture, Cl. A    109,000    3,146,830 
Apple Computer    76,000 a    5,463,640 
Cognizant Technology Solutions, Cl. A    70,400 a    3,544,640 
Dell    84,500 a    2,534,155 
Hewlett-Packard    45,500    1,302,665 
Juniper Networks    117,000 a    2,609,100 
Motorola    182,000    4,111,380 
Network Appliance    93,700 a    2,529,900 
Qualcomm    82,500    3,554,100 
Xilinx    94,000    2,369,740 
        31,166,150 
Telecommunications—6.7%         
Amdocs    97,000 a    2,667,500 
Comverse Technology    132,700 a    3,528,493 
Cisco Systems    155,000 a    2,653,600 
        8,849,593 
Wholesale & International Trade—2.1%     
Infosys Technologies, ADR    35,000    2,830,100 
Total Common Stocks         
(cost $92,605,257)        120,712,945 

10
Other Investment—6.5%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $8,556,718)    8,556,718 c    8,556,718 
 
Investment of Cash Collateral         
for Securities Loaned—2.2%         
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Fund         
(cost $2,914,500)    2,914,500 c    2,914,500 
Total Investments (cost $104,076,475)    100.8%    132,184,163 
Liabilities, Less Cash and Receivables    (.8%)    (1,110,053) 
Net Assets    100.0%    131,074,110 

ADR—American Depository Receipts. 
a Non-income producing. 
b All or a portion of this security is on loan. At December 31, 2005, the total market value of the portfolio’s security 
on loan is $2,886,225 and the total market value of the collateral held by the portfolio is $2,914,500. 
c Investment in affiliated money market mutual fund. 

Portfolio Summary†             
 
    Value (%)        Value (%) 
Technology    23.8    Telecommunications    6.7 
Semiconductors    18.7    Electronic Components     
Software & Services    12.9    & Instruments    6.4 
Internet    11.3    Capital Goods    3.1 
Money Market Investments    8.7    Wholesale & International Trade    2.1 
Health Care    7.1        100.8 
 
† Based on net assets.             
See notes to financial statements.             

The Portfolio 11

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

    Cost    Value 
Assets ($):         
Investments in securities—         
See Statement of Investments:         
(including securities on loan,         
valued at $2,886,225)—Note 1(c):         
Unaffiliated issuers    92,605,257    120,712,945 
Affiliated issuers    11,471,218    11,471,218 
Cash        145,841 
Cash denominated in foreign currencies    1,102,625    1,083,880 
Receivable for investment securities sold        798,383 
Dividends receivable        64,809 
Receivable for shares of Beneficial Interest subscribed    1,407 
Prepaid expenses        421 
        134,278,904 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)    103,988 
Liabilities for securities on loan—Note 1(c)        2,914,500 
Payable for shares of Beneficial Interest redeemed    144,611 
Accrued expenses        41,695 
        3,204,794 
Net Assets ($)        131,074,110 
Composition of Net Assets ($):         
Paid-in capital        234,176,131 
Accumulated net realized gain (loss) on investments    (131,190,963) 
Accumulated net unrealized appreciation (depreciation)     
on investments and foreign currency transactions    28,088,942 
Net Assets ($)        131,074,110 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    78,752,632    52,321,478 
Shares Outstanding    8,705,877    5,865,324 
Net Asset Value Per Share ($)    9.05    8.92 

See notes to financial statements.
12
STATEMENT OF OPERATIONS
Year Ended December 31, 2005
Investment Income ($):     
Income:     
Cash dividends (net of $41,804 foreign taxes withheld at source):     
Unaffiliated issuers    517,349 
Affiliated issuers    190,846 
Income from securities lending    19,711 
Total Income    727,906 
Expenses:     
Investment advisory fee—Note 3(a)    914,818 
Distribution fees—Note 3(b)    103,384 
Professional fees    36,635 
Custodian fees—Note 3(b)    29,388 
Trustees’ fees and expenses—Note 3(c)    3,410 
Shareholder servicing costs—Note 3(b)    1,288 
Registration fees    448 
Miscellaneous    639 
Total Expenses    1,090,010 
Less—reduction in custody fees     
due to earnings credits—Note 1(c)    (368) 
Net Expenses    1,089,642 
Investment (Loss)—Net    (361,736) 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    1,070,675 
Net realized gain (loss) on forward currency exchange contracts    393 
Net Realized Gain (Loss)    1,071,068 
Net unrealized appreciation (depreciation)     
on investments and foreign currency transactions    3,580,187 
Net Realized and Unrealized Gain (Loss) on Investments    4,651,255 
Net Increase in Net Assets Resulting from Operations    4,289,519 

See notes to financial statements.

The Portfolio 13

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2005    2004 
Operations ($):         
Investment (loss)—net    (361,736)    (156,401) 
Net realized gain (loss) on investments    1,071,068    (2,551,482) 
Net unrealized appreciation         
(depreciation) on investments    3,580,187    2,727,790 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    4,289,519    19,907 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Initial shares    5,340,546    14,566,252 
Service shares    18,471,720    22,254,061 
Cost of shares redeemed:         
Initial shares    (23,038,519)    (22,008,917) 
Service shares    (4,433,718)    (4,181,087) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (3,659,971)    10,630,309 
Total Increase (Decrease) in Net Assets    629,548    10,650,216 
Net Assets ($):         
Beginning of Period    130,444,562    119,794,346 
End of Period    131,074,110    130,444,562 
Capital Share Transactions (Shares):         
Initial Shares         
Shares sold    631,081    1,684,279 
Shares redeemed    (2,756,505)    (2,654,202) 
Net Increase (Decrease) in Shares Outstanding    (2,125,424)    (969,923) 
Service Shares         
Shares sold    2,219,052    2,672,046 
Shares redeemed    (537,618)    (505,263) 
Net Increase (Decrease) in Shares Outstanding    1,681,434    2,166,783 

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.

        Year Ended December 31,     
Initial Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    8.72    8.68    5.75    9.49    14.19 
Investment Operations:                     
Investment (loss)—net a    (.02)    (.01)    (.03)    (.04)    (.02) 
Net realized and unrealized gain                     
(loss) on investments    .35    .05    2.96    (3.70)    (4.68) 
Total from Investment Operations    .33    .04    2.93    (3.74)    (4.70) 
Net asset value, end of period    9.05    8.72    8.68    5.75    9.49 
Total Return (%)    3.78    .46    50.96    (39.41)    (33.12) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .81    .85    .88    .89    .87 
Ratio of net expenses                     
to average net assets    .81    .85    .88    .89    .87 
Ratio of net investment                     
(loss) to average net assets    (.21)    (.10)    (.42)    (.53)    (.15) 
Portfolio Turnover Rate    49.08    62.50    38.22    91.47    86.25 
Net Assets, end of period ($ x 1,000)    78,753    94,397    102,441    52,786    94,992 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

The Portfolio 15

FINANCIAL HIGHLIGHTS (continued)
        Year Ended December 31,     
Service Shares    2005    2004    2003    2002    2001 
Per Share Data ($):                     
Net asset value, beginning of period    8.62    8.60    5.71    9.45    14.19 
Investment Operations:                     
Investment (loss)—net a    (.04)    (.02)    (.05)    (.05)    (.05) 
Net realized and unrealized gain                     
(loss) on investments    .34    .04    2.94    (3.69)    (4.69) 
Total from Investment Operations    .30    .02    2.89    (3.74)    (4.74) 
Net asset value, end of period    8.92    8.62    8.60    5.71    9.45 
Total Return (%)    3.48    .23    50.61    (39.58)    (33.40) 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.06    1.10    1.13    1.12    1.20 
Ratio of net expenses                     
to average net assets    1.06    1.10    1.13    1.12    1.20 
Ratio of net investment                     
(loss) to average net assets    (.46)    (.24)    (.70)    (.77)    (.60) 
Portfolio Turnover Rate    49.08    62.50    38.22    91.47    86.25 
Net Assets, end of period ($ x 1,000)    52,321    36,047    17,353    5,787    8,151 
 
a Based on average shares outstanding at each month end.                 
See notes to financial statements.                     

16

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Investment Portfolios (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company, currently offering nine series,including the 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 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.

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS (continued)

(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.

(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.

18

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. 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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The portfolio will be 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 would bear 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 19

NOTES TO FINANCIAL STATEMENTS (continued)

(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.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: accumulated capital losses $129,065,164 and unrealized appreciation $27,137,688. In addition, the fund had $1,174,545 of capital losses realized after October 31, 2005, which were deferred for tax purposes to the first day of the following fiscal year.

The accumulated capital loss carryover is available 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.

During the period ended December 31, 2005, as a result of permanent book to tax differences primarily due to the tax treatment for net operating losses and foreign currency exchange gains and losses, the portfolio increased accumulated undistributed investment

20

income-net by $361,736, increased net realized gain (loss) on investments by $554 and decreased paid-in capital by $362,290. Net assets were not affected by this reclassification

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended December 31, 2005, 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 December 31, 2005, Service shares were charged $103,384 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $318 pursuant to the transfer agency agreement.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (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 December 31, 2005, the portfolio was charged $29,388 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 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 $84,722, Rule 12b-1 distribution plan fees $11,077, custodian fees $6,276, chief compliance officer fees $1,858 and transfer agency per account fees $55.

(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 and forward currency exchange contracts, during the period ended December 31, 2005, amounted to $57,131,563 and $69,234,534, 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

22

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 counter party nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract. At December 31, 2005, there were no forward currency exchange contracts outstanding.

At December 31, 2005, the cost of investments for federal income tax purposes was $105,027,729; accordingly, accumulated net unrealized appreciation on investments was $27,156,434, consisting of $29,383,278 gross unrealized appreciation and $2,226,844 gross unrealized depreciation.

The Portfolio 23

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Investment Portfolios, Technology Growth Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Investment Portfolios,Technology Growth Portfolio (one of the funds comprising Dreyfus Investment Portfolios) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Investment Portfolios, Technology Growth Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the indicated years,in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006
24

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE PORTFOLIO’S

INVESTMENT ADVISORY AGREEMENT (Unaudited)

At separate meetings of the Board of Trustees of Dreyfus Investment Portfolios (the “Company”) held on July 12-13, 2005, the Board considered the re-approval of the portfolio’s Investment Advisory Agreement for another one year term, pursuant to which 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 received a presentation from representatives of the Manager regarding services provided to the portfolio and other funds in the Dreyfus fund complex, and 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 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 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.

The Portfolio 25

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

Comparative Analysis of the Portfolio’s Performance and Investment Advisory Fee and Expense Ratio. The Board members reviewed the portfolio’s performance, advisory fee and expense ratio 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 ratio 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 May 31, 2005, and 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 average of Comparison Group I for the one-year period and was above the averages of Comparison Group I for the 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 five-year periods and was above the average of Comparison Group II for the three-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

26

the performance of the portfolio’s Service shares thereafter.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 expense ratio of the portfolio’s Service shares was lower than the average expense ratio of Comparison Group II. The Board reviewed the range of investment advisory fees in each comparison group, noting that the portfolio’s advisory fee ranked in the top half (i.e., lower than or the same as a majority of other funds) in each comparison group.

Representatives of the Manager reviewed with the Board members the fee paid to the Manager by another mutual fund managed by the Manager with a similar investment objective, policies and strategies as the portfolio (the “Similar Fund”), and noted that there were no other accounts managed or sub-advised by the Manager or its affiliates with similar investment objectives, policies and strategies as the portfolio. The Similar Fund was a mutual fund included in the “specialty-miscellaneous” funds category by Lipper.The Board analyzed the fee 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 Fund had the same management fee as did the portfolio. Although another fund in the Dreyfus complex, Dreyfus Premier Technology Growth Fund (the “Fund”), is managed in a substantially similar manner as is the portfolio, the Fund is included in the Lipper “science and technology” funds category; it was noted that the Fund’s management fee is the same as the portfolio’s fee. The Board members considered the relevance of the fee information provided for the Similar Fund managed by the Manager to evaluate the appropriateness and reasonableness of the portfolio’s advisory fees.

The Portfolio 27

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

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 received and considered information 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 Manager’s representatives stated that the methodology had also 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 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

28

not unreasonable given the portfolio’s overall performance and generally superior service levels provided.

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 noted the portfolio’s one- and five-year total return performance, the Board members were satisfied with the portfolio’s overall performance.

• The Board concluded that the fee paid to the Manager by the portfolio was reasonable in light of comparative performance and expense and advisory fee information, 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.

The Portfolio 29

BOARD MEMBERS INFORMATION (Unaudited) 
 
 
 
Joseph S. DiMartino (62) 
Chairman of the Board (1998) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Levcor International, Inc., an apparel fabric processor, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency 
systems for long-range voice and data communications, as well as providing certain outdoor- 
related services to homes and businesses, Director 
No. of Portfolios for which Board Member Serves: 193 
——————— 
Clifford L. Alexander, Jr. (72) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
• Chairman of the Board and Chief Executive Officer of The Dun and Bradstreet Corporation 
(October 1999-September 2000) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 
No. of Portfolios for which Board Member Serves: 66 
——————— 
Lucy Wilson Benson (78) 
Board Member (1998) 
Principal Occupation During Past 5 Years: 
• President of Benson and Associates, consultants to business and government (1980-present) 
Other Board Memberships and Affiliations: 
• The International Executive Services Corps., Director Emeritus 
• Citizens Network for Foreign Affairs,Vice Chairperson 
• Council on Foreign Relations, Member 
• Lafayette College Board of Trustees,Trustee Emeritus 
• Atlantic Council of the U.S., Director 
No. of Portfolios for which Board Member Serves: 40 

30

David W. Burke (69) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 
• U.S.S. Constitution Museum, Director 
No. of Portfolios for which Board Member Serves: 84 
——————— 
Whitney I. Gerard (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Partner of Chadbourne & Parke LLP 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Arthur A. Hartman (79) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Chairman of First NIS Regional Fund (ING/Barings Management) and New Russia Fund 
• Advisory Council Member to Barings-Vostok 
Other Board Memberships and Affiliations: 
• APCO Associates Inc., Senior Consultant 
No. of Portfolios for which Board Member Serves: 38 
——————— 
George L. Perry (71) 
Board Member (2003) 
Principal Occupation During Past 5 Years: 
• Economist and Senior Fellow at Brookings Institution 
No. of Portfolios for which Board Member Serves: 38 
——————— 
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o 
The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board 
Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of 
charge by calling this toll free number: 1-800-554-4611. 

The Portfolio 31

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

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

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

32

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer since August 2005.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

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

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

The Portfolio 33

For More Information

Dreyfus Investment Portfolios,    Transfer Agent & 
Technology Growth Portfolio    Dividend Disbursing Agent 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
Investment Adviser    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue     
    Dreyfus Service Corporation 
New York, NY 10166     
    200 Park Avenue 
Custodian    New York, NY 10166 
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

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

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

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 1-800-SEC-0330.

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, 2005, 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.

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3. Audit Committee Financial Expert.

The Registrant's Board has determined that Mr. Joseph DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Mr. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $171,150 in 2004 and $185,529 in 2005.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $72,576 in 2004 and $70,389 in 2005. These services consisted of (i) agreed-upon procedures related to compliance with Internal Revenue Code section 817(h) and (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $-0- in 2004 and $-0- in 2005.

Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $30,528 in 2004 and $26,844 in 2005. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax

returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies (as applicable).

The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $-0- in 2004 and $-0- in 2005.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were less than $200 in 2004 and $4 in 2005. These services consisted of a review of the Registrant's anti-money laundering program.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee were $-0- in 2004 and $-0- in 2005.

Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $592,101 in 2004 and $758,091 in 2005.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.

Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. [CLOSED-END FUNDS ONLY, beginning with reports for periods ended 
    on and after December 31, 2005] 
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.

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)    Code of ethics referred to in Item 2. 
(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. 

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

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.

EXHIBIT INDEX

(a)(1)    Code of ethics referred to in Item 2. 
 
(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) 

Exhibit (a)(1)