LETTER TO SHAREHOLDERS
Dear Shareholder:
For the six-month period ended September 30, 1994, the total return of
your Fund was -2.42%.* Dividends declared from net investment income during
the last six months amounted to $.473 per share. The annualized distribution
rate per share for the Fund's semi-annual period was 6.96%.**
To view the events of the bond market properly, we have to go back to
February 4, 1994, when the Federal Reserve Board first increased the Federal
Funds rate by 25 basis points. This was the first time the Federal Reserve
had increased rates in five years. Since this original increase, there have
been four more increases. Up to this point, the Federal Reserve has initiated
rate increases totalling 175 basis points. As a result of this tightening
move, the 30-year Treasury bond went from a yield of 6.36% on February 4 to a
7.81% yield on September 30. That is a 145-basis point increase in long-term
yields. Also during this period, interest rates on the 10-year Treasury note
increased nearly 180 basis points and almost 200 basis points on the
five-year Treasury note. As one can see, this certainly has been a period of
high volatility and great uncertainty. It's times such as these that bond
returns are often slightly negative. Such was the case for the six-month
period under review. Just as an example, the Merrill Lynch Corporate Master
Index had a negative return of nearly 1 percent over the same period.
We anticipated a market rally in August or September at which time we
planned to shorten the maturity of the portfolio. While the rally has not
really occurred, we have nevertheless started this shortening process. This
will give the Fund a more conservative approach; furthermore, it is expected
to lower the Fund's volatility.
Over the last three months, the Fund has been involved in some very
interesting transactions. A large position in brokerage house bonds was sold.
These securities have tended to underperform the market since our sale date.
The Fund sold its holdings of Niagara Mohawk bonds and Con Edison bonds.
These securities have also performed poorly since our sale. The Fund also
purchased Eastman Kodak bonds which were subsequently "tendered" for by the
Company. This tender resulted in an attractive return for the Fund.
Going forward, our intention is to continue to shorten the Fund's average
maturity so that the fluctuations of the market will not result in large
fluctuations in the relative performance of the Fund. There always exists the
possibility that a substantial rally will occur even if it is in the
framework of a declining market. The Fund is still positioned to take
advantage of that event.
We will continue to pursue attractive opportunities in the marketplace
and we look forward to continuing to serve your investment needs.
Very truly yours,
(Garitt A. Kono Signature Logo)
Garitt A. Kono
Portfolio Manager
October 18, 1994
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Annualized distribution rate per share is based upon dividends per
share declared from net investment income during the period divided by
the net asset value per share at the end of the period.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES--96.4% AMOUNT VALUE
-------------- --------------
<S> <C> <C> <C>
BANKING--5.2% First Chicago,
Sub. Notes, 8 1/4%, 2002............. $ 8,500,000 $ 8,508,483
Fleet/Norstar Financial Group,
Sub. Notes, 9.90%, 2001.............. 4,000,000 4,372,472
NationsBank:
Sub. Medium-Term Notes, 6.20%, 2003.. 10,000,000 8,698,080
Sub. Notes, 7 3/4%, 2004............. 5,000,000 4,800,000
--------------
26,379,035
--------------
CHEMICALS--.4% Hoechst Celanese,
Notes, 9 5/8%, 1999.................. 2,000,000 2,111,900
--------------
CONSUMER--8.1% MCI Communications,
Sr. Deb., 8 1/4%, 2023............... 3,000,000 2,850,507
McCormick & Co.,
Notes, 8.95%, 2001................... 2,000,000 2,098,602
News America Holdings (Gtd. by News),
Sr. Deb., 9 1/4%, 2013............... 5,000,000 4,912,445
Philip Morris Cos.,
Notes, 9 1/4%, 1997.................. 5,000,000 5,216,935
The Employee Stock
Ownership Trust of The Procter & Gamble
Profit Sharing Trust and Employee Stock
Ownership Plan, Deb.
(Gtd. by Procter & Gamble),
Ser. A, 9.36%, 2021.................. 3,000,000 3,249,534
Rite Aid,
Sr. Deb., 6 7/8%, 2013............... 10,000,000 8,074,910
Rogers Cablesystems,
Sr. Secured Second Priority Notes,
9 5/8%, 2002......................... 5,000,000 4,875,000
Tele-Communications,
Sr. Deb., 9 1/4%, 2023............... 5,000,000 4,794,230
Wal-Mart Stores,
Deb., 7 1/4%, 2013................... 5,000,000 4,498,890
--------------
40,571,053
--------------
FINANCE--9.7% Chrysler Financial:
Floating Rate Notes, 5 1/4%, 1996.... 5,000,000 (a) 5,013,100
Notes, 6 5/8%, 2000.................. 5,000,000 4,682,495
Commercial Credit,
Notes, 10%, 2008..................... 2,000,000 2,241,728
General Motors Acceptance,
Medium-Term Notes, 7 1/2%, 2000...... 5,000,000 4,865,770
Heller Financial,
Floating Rate Notes, 5 1/16%, 1999... 8,000,000 (a) 7,971,112
KfW International Finance,
Notes (Gtd. by KfW), 7%, 2013........ 8,000,000 7,006,312
McDonnell Douglas Finance,
Medium-Term Floating Rate Notes,
5 5/8%, 1998......................... 5,000,000 (a) 5,021,850
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
FINANCE (CONTINUED) Merrill Lynch & Co.,
Medium-Term Floating Rate Notes,
5.79%, 1997........................ $ 12,000,000 (a) $ 12,009,648
--------------
48,812,015
--------------
INDUSTRIAL--10.3% Archer-Daniels-Midland, Deb.:
8 1/8%, 2012......................... 5,000,000 4,870,380
8 3/8%, 2017......................... 5,000,000 4,974,065
Bowater,
Deb., 9 1/2%, 2012................... 5,000,000 5,152,645
Eastman Kodak,
Deb., 9.95%, 2018.................... 4,000,000 4,532,844
GATX Capital,
Medium-Term Notes, Ser. B, 9 1/2%, 2002 5,000,000 5,260,010
General Electric Capital,
Sub. Notes (Gtd. by General Electric),
8 1/8%, 2012......................... 3,000,000 2,926,455
Harnischfeger Industries,
Deb., 8.90%, 2022.................... 5,000,000 5,009,630
International Paper,
Notes, 7 5/8%, 2004.................. 5,000,000 4,833,280
McDonnell Douglas:
Deb., 9 3/4%, 2012................... 5,000,000 5,219,540
Notes, 8 1/4%, 2000.................. 5,000,000 5,006,755
Time Warner Entertainment, L.P.,
Sr. Deb., 7 1/4%, 2008............... 5,000,000 4,220,065
--------------
52,005,669
--------------
INSURANCE--3.9% NAC Re,
Notes, 8%, 1999...................... 5,000,000 4,945,280
SunAmerica,
Notes, 9%, 1999...................... 5,000,000 5,190,920
USF&G,
Sr. Notes, 8 3/8%, 2001.............. 5,000,000 4,870,215
Western National,
Sr. Notes, 7 1/8%, 2004.............. 5,000,000 4,361,105
--------------
19,367,520
--------------
OIL AND GAS--4.0% Atlantic Richfield, Deb.:
9 7/8%, 2016......................... 2,000,000 2,243,606
9%, 2021............................. 5,000,000 5,162,625
Chevron Profit Sharing/Savings Plan Trust Fund,
Notes (Gtd. by Chevron), 8.11%, 2004. 5,000,000 5,042,165
Maxus Energy,
Sinking Fund Deb., 11 1/4%, 2013..... 184,000 184,920
Occidental Petroleum,
Sr. Deb., 11 3/4%, 2011.............. 5,000,000 5,464,110
Parker-Hannifin,
Deb., 9 3/4%, 2021................... 2,000,000 2,126,238
--------------
20,223,664
--------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
TELEPHONE--5.9% Bell Telephone of Pennsylvania,
Deb., 8 3/4%, 2031................... $ 5,000,000 $ 5,112,950
GTE,
Deb., 10 1/4%, 2020.................. 10,000,000 10,999,530
New Jersey Bell Telephone,
Deb., 8%, 2022....................... 5,000,000 4,805,570
Pacific Bell,
Deb., 7 1/2%, 2033................... 10,000,000 8,660,860
--------------
29,578,910
--------------
TRANSPORTATION--2.1% Consolidated Rail,
Deb., 9 3/4%, 2020................... 5,000,000 5,555,650
Delta Air Lines,
Deb., 10 3/8%, 2022.................. 5,000,000 4,898,065
--------------
10,453,715
--------------
UTILITIES--6.6% Detroit Edison, Secured Medium-Term Notes,
Ser. G, 6.56%, 2001.................. 5,000,000 4,569,575
El Paso Natural Gas,
Deb., 8 5/8%, 2022................... 2,000,000 1,977,020
Idaho Power,
First Mortgage, 8 3/4%, 2027......... 7,000,000 6,865,754
Metropolitan Edison, Secured Medium-Term Notes,
Ser. B, 8.15%, 2023.................. 5,000,000 4,570,510
ONEOK,
Deb., 9 3/4%, 2020................... 3,000,000 3,225,828
South Carolina Electric & Gas,
First and Refunding Mortgage, 8 7/8%, 2021 7,000,000 6,984,670
Union Electric,
First Mortgage Bonds, 8 3/4%, 2021... 5,000,000 4,982,175
--------------
33,175,532
--------------
FOREIGN--10.8% Banco Nacional de Comercio Exterior, S.N.C.,
Notes, 7 1/4%, 2004.................. 5,000,000 4,193,775
Hydro-Quebec,
Deb. (Gtd. by the Province of Quebec):
Ser. HS, 9.40%, 2021............. 5,000,000 5,213,650
Ser. GQ, 8 1/4%, 2027............ 4,000,000 3,688,960
Province of Manitoba,
Deb., Ser. CD, 9 1/4%, 2020.......... 5,000,000 5,262,650
Province of Nova Scotia,
Deb., 8 3/4%, 2022................... 5,000,000 4,984,300
Province of Quebec,
Deb., 11%, 2015...................... 2,000,000 2,296,380
Province of Saskatchewan,
Notes, 8%, 2004...................... 10,000,000 9,828,130
Republic of Argentina,
Bonds, 8 3/8%, 2003.................. 7,000,000 5,834,521
Swedish Export Credit,
Deb., 9 7/8%, 2038................... 8,000,000 8,448,592
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
FOREIGN (CONTINUED) United Mexican States,
Notes, 8 1/2%, 2002.................. $ 5,000,000 $ 4,662,095
--------------
54,413,053
--------------
OTHER--4.7% Collateralized Mortgage Obligation Trust 9,
Cl. C (Collateralized by
GNMA Pass-Through Ctfs.),
7 3/4%, 2012......................... 1,177,408 1,180,376
County of Contra Costa, California,
Taxable Pension Obligation Bonds,
1994 Ser. A, 6.85%, 2011............. 5,000,000 4,113,950
DLJ Acceptance Trust 1,
Collateralized Mortgage Obligation,
Ser. 1989-1, Cl. 1-F (Collateralized by
GNMA Pass-Through Ctfs. and the
Collateral Proceeds Account), 11%, 2019 385,398 410,664
FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022. 6,214,193 5,928,728
Rural Electric Cooperative Grantor Trust Ctfs.:
(Soyland), 9.70%, 2017............... 5,000,000 5,509,995
(Tex-La), 9.58%, 2019................ 4,000,000 4,400,360
Ryland Acceptance Corp. Four,
Collateralized Mortgage Obligation
(Collateralized by GNMA Pass-Through Ctfs.),
Ser. 37-B, 8.35%, 2012............... 2,184,249 2,206,310
--------------
23,750,383
--------------
U.S. GOVERNMENT AND
AGENCIES--24.7% FICO,
Deb., Ser. E, 9.65%, 2018............ 5,000,000 5,737,500
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation Ctfs.:
Ser. 1271, Cl. 1271-G, 7%, 2006.. 10,478,000 9,436,749
Ser. 1202, Cl. 1202-F, 7%, 2007.. 5,000,000 4,450,000
Ser. 1184, Cl. 1184-E, 7.80%, 2016 8,823,412 8,895,146
Federal National Mortgage Association:
Medium-Term Notes, 8.37%, 2024....... 5,000,000 4,957,815
Real Estate Mortgage Investment Conduit Trust
(Collateralized by FNMA Pass-Through Ctfs.):
Ser. 1993-192, Cl. 192-K, 6 1/2%, 2008 14,086,473 13,192,863
Ser. 1992-136, Cl. 136-PD, 6%, 2016 11,000,000 9,984,040
Ser. 1992-118, Cl. 118-PG, 7%, 2018 5,000,000 4,543,750
Government National Mortgage Association 1:
8%, 8/15/2023........................ 17,203,271 16,719,343
8 1/2%, 9/15/2024.................... 6,120,000 6,125,692
U.S. Treasury Bonds:
7 1/8%, 2/15/2023.................... 10,000,000 9,090,630
6 1/4%, 8/15/2023.................... 12,000,000 9,742,500
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
U.S. GOVERNMENT AND
AGENCIES (CONTINUED) U.S. Treasury Notes:
6 3/4%, 5/31/1999.................... $ 8,000,000 $ 7,842,504
7 1/4%, 5/15/2004.................... 14,000,000 13,645,632
--------------
124,364,164
--------------
TOTAL BONDS AND NOTES
(cost $507,564,648).................. $485,206,613
==============
SHORT-TERM INVESTMENTS--.2%
TIME DEPOSIT; Chemical Bank (London),
4 3/4%, 10/3/1994
(cost $1,071,000).................... $ 1,071,000 $ 1,071,000
==============
TOTAL INVESTMENTS (cost $508,635,648) ................................. 96.6% $486,277,613
====== ==============
CASH AND RECEIVABLES (NET).................................................. 3.4% $ 16,876,855
====== ==============
NET ASSETS.................................................................. 100.0% $503,154,468
====== ==============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable rate security-interest rate subject to periodic change.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $508,635,648)-see statement..................................... $486,277,613
Cash.................................................................... 574,588
Receivable for investment securities sold............................... 14,182,822
Interest receivable..................................................... 8,428,215
Receivable for subscriptions to Common Stock............................ 1,263
Prepaid expenses........................................................ 106,127
--------------
509,570,628
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 273,155
Payable for investment securities purchased............................. 4,996,480
Payable for Common Stock redeemed....................................... 1,011,257
Accrued expenses........................................................ 135,268 6,416,160
------------ --------------
NET ASSETS ................................................................ $503,154,468
==============
REPRESENTED BY:
Paid-in capital......................................................... $528,028,034
Accumulated undistributed investment income-net......................... 5,690,898
Accumulated net realized (loss) on investments.......................... (8,206,429)
Accumulated net unrealized (depreciation) on investments-Note 3......... (22,358,035)
--------------
NET ASSETS at value applicable to 37,106,919 outstanding shares of
Common Stock, equivalent to $13.56 per share
(100 million shares of $.01 par value authorized)....................... $503,154,468
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 21,203,765
EXPENSES:
Management fee-Note 2(a).............................................. $ 1,786,578
Shareholder servicing costs-Note 2(b)................................. 848,347
Custodian fees........................................................ 33,015
Professional fees..................................................... 25,124
Directors' fees and expenses-Note 2(c)................................ 18,196
Registration fees..................................................... 16,586
Prospectus and shareholders' reports.................................. 14,700
Miscellaneous......................................................... 5,703
--------------
TOTAL EXPENSES.................................................... 2,748,249
--------------
INVESTMENT INCOME--NET............................................ 18,455,516
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(10,771,631)
Net unrealized (depreciation) on investments............................ (21,382,223)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (32,153,854)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(13,698,338)
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1994
1994 (UNAUDITED)
--------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 39,482,882 $ 18,455,516
Net realized gain (loss) on investments.............................. 13,334,527 (10,771,631)
Net unrealized (depreciation) on investments for the period.......... (34,122,473) (21,382,223)
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... 18,694,936 (13,698,338)
--------------- ---------------
NET EQUALIZATION CREDITS (DEBITS)--Note 1(e)............................. 380,820 (502,276)
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ (39,448,092) (18,989,601)
Net realized gain on investments..................................... (23,253,146) ---
--------------- ---------------
TOTAL DIVIDENDS.................................................... (62,701,238) (18,989,601)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 311,162,989 76,379,063
Dividends reinvested................................................. 53,245,642 16,086,965
Cost of shares redeemed.............................................. (301,599,810) (149,735,967)
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.. 62,808,821 (57,269,939)
--------------- ---------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 19,183,339 (90,460,154)
NET ASSETS:
Beginning of period.................................................. 574,431,283 593,614,622
--------------- ---------------
End of period (including undistributed investment income-net:
$6,727,259 and $5,690,898, respectively)........................... $ 593,614,622 $ 503,154,468
============== ===============
SHARES SHARES
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 20,190,752 5,522,200
Shares issued for dividends reinvested............................... 3,477,064 1,162,498
Shares redeemed...................................................... (19,598,158) (10,872,538)
--------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... 4,069,658 (4,187,840)
============== ===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1994
------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.24 $13.45 $13.65 $14.35 $15.43 $14.38
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................. 1.18 1.15 1.11 1.05 .98 .47
Net realized and unrealized gain
(loss) on investments............... .21 .20 .70 1.29 (.46) (.81)
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.... 1.39 1.35 1.81 2.34 .52 (.34)
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.. (1.18) (1.15) (1.11) (1.05) (.99) (.48)
Dividends from net realized gain on investments -- -- -- (.21) (.58) --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................. (1.18) (1.15) (1.11) (1.26) (1.57) (.48)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $13.45 $13.65 $14.35 $15.43 $14.38 $13.56
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 10.66% 10.60% 13.75% 17.09% 3.09% (4.83%)(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .86% .85% .88% .93% .90% 1.00%(1)
Ratio of net investment income to average
net assets.......................... 8.52% 8.59% 7.88% 7.07% 6.30% 6.71%(1)
Portfolio Turnover Rate............... 39.77% 25.90% 66.82% 81.15% 93.67% 61.71%(2)
Net Assets, end of period (000's Omitted) $299,783 $339,935 $446,869 $574,431 $593,615 $503,154
- --------------------
(1) Annualized.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding short-term
investments) are valued each business day by an independent pricing service
("Service") approved by the Board of Directors. Investments for which quoted
bid prices are readily available and are representative of the bid side of
the market in the judgment of the Service are valued at the mean between the
quoted bid prices (as obtained by the Service from dealers in such
securities) and asked prices (as calculated by the Service based upon its
evaluation of the market for such securities). Other investments (which
constitute a majority of the portfolio securities) are carried at fair value
as determined by the Service, based on methods which include consideration
of: yields or prices of securities of comparable quality, coupon, maturity
and type; indications as to values from dealers; and general market
conditions. Short-term investments are carried at amortized cost, which
approximates value.
(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. Interest
income including, where applicable, amortization of discount on investments
is recognized on the accrual basis.
(C) 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 are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
On September 30, 1994, the Board of Directors declared a cash dividend of
$.077 per share from undistributed investment income-net, payable on October
3, 1994 (ex-dividend date), to shareholders of record as of the close of
business on September 30, 1994.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) EQUALIZATION: The Fund follows the accounting practice known as
"equalization" by which a portion of the amounts received on issuances and
the amounts paid on redemptions of Fund shares (equivalent, on a per share
basis, to the amount of distributable investment income-net on the date of
the transaction) is allocated to undistributed investment income-net so that
undistributed investment income-net per share is unaffected by Fund shares
issued or redeemed.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of 65/100ths of 1% of the
average daily value of the Fund's net assets and is payable monthly. The
Agreement provides for an expense reimbursement from the Manager should the
Fund's aggregate expenses, exclusive of taxes, interest on borrowings,
brokerage commissions and extraordinary expenses, exceed 1 1/2% of the
average value of the Fund's net assets for any full fiscal year. There was no
expense reimbursement for the six months ended September 30, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the six months
ended September 30, 1994, the Fund was charged an aggregate of $538,299
pursuant to the Shareholder Services Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $2,500 and an attendance fee of $500 per meeting.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the six months ended September 30,
1994, amounted to $320,604,702 and $360,759,693, respectively.
At September 30, 1994, accumulated net unrealized depreciation on
investments was $22,358,035, consisting of $3,469,701 gross unrealized
appreciation and $25,827,736 gross unrealized depreciation.
At September 30, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS A BONDS PLUS, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS A BONDS PLUS, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus A Bonds Plus, Inc., including the statement of investments, as of
September 30, 1994, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended September
30, 1994. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
March 31, 1994 and financial highlights for each of the five years in the
period ended March 31, 1994 and in our report dated April 29, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young Signature Logo)
New York, New York
October 31, 1994
(Dreyfus "D" Logo)
DREYFUS A BONDS PLUS, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 084SA949
(Dreyfus Logo)
A Bonds Plus
Semi-Annual
Report
September 30, 1994
(Dreyfus Lion Logo)
