<PAGE>
Dreyfus
A Bonds Plus
Annual Report
March 31, 1994
Dreyfus A Bonds Plus, Inc. March 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS A
BONDS PLUS
AND THE MERRILL LYNCH CORPORATE MASTER INDEX (COAO)
[Exhibit A]
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment in Dreyfus A Bonds
Plus on 3/31/84 to a $10,000 investment made in the Merrill Lynch
Corporate Master Index (COAO) on that date. All dividends and capital gain
distributions are reinvested.
The Fund's performance takes into account all applicable fees and
expenses. The Merrill Lynch Corporate Master Index (COAO) is frequently
used as a performance benchmark for portfolios that include fixed-rate,
coupon bearing investment-grade corporate securities rated BBB/Baa3 and
above. The securities included in the Index have maturities greater than or
equal to one year and must have par amounts outstanding greater than or
equal to $25 million. The Index does not take into account charges, fees
and other expenses. Further information relating to Fund performance
including expense reimbursements, if any, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this
report.
* Source: Merrill Lynch
President's Letter
Dear Shareholder:
For the 12-month period ended March 31, 1994, Dreyfus A Bonds Plus
provided you with a distribution rate per share of 6.55%.* As always, the
prices of the securities held in your portfolio are subject to change. The
total return for your portfolio, which includes that change as well as
reinvestment of income dividends and capital gain distributions, was
3.09% for the 12-month period.**
Treasury bond market yields reached a low of 5.77% on October 15,
1993. Yields on the long bond began to gradually rise until the Federal
Reserve Board's first move of a 25 basis point tightening in the Federal
Funds rate occurred on February 4, 1994. This move set off a much sharper
sell-off in the market. Clearly, part of this sell-off was triggered by
sales from funds such as yours in an effort to shorten average maturities
of the funds' holdings. The resulting price decline in fixed-income
securities was exacerbated by the unwinding of many large, leveraged
trades outstanding in the marketplace, especially in hedge fund portfolios.
While the average maturity of your portfolio was being shortened
during the fourth quarter of 1993, we still believed that longer-maturity
securities would outperform intermediate to short-intermediate ones.
Thus, we wanted to hold on to our attractive longer-term holdings which
had helped performance earlier in the year. However, to offset those
holdings, we put more into cash-equivalent holdings. While the longer-
maturity instruments did outperform the shorter securities during the
period, your portfolio performance would have been enhanced had the cash
holdings been even higher.
Performance in calendar 1993 was also helped by the portfolio
holdings in the telecommunications area and small positions in Mexican
and Argentinian credits. However, these areas underperformed the market
in the first quarter of 1994. Our positions have been lightened _ but not
eliminated _ leading to some underperformance for the quarter.
Looking ahead in 1994, it is clear that the U.S. economy is picking up
steam. While we are seeing some signs of price increases in certain areas
such as automobiles, inflationary data is not yet evident in the
marketplace. With long bond yields touching a 7.50% level as this letter is
being written, it appears that much of the bond market sell-off may have
already been experienced. In general, many forecasters are still cautious
to bearish on the bond market outlook. Cash positions in accounts are high
and there are still many outstanding short positions. Thus, we believe the
stage is being set for an attractive rally. A flattening or weakening in
economic growth would clearly be the catalyst for such a move. The
market would also be more comfortable with some indication from the
Federal Reserve Board that they have reached a policy level which is
neutral _ i.e., no more tightening moves for the current environment.
We are always reviewing the economy and the marketplace in order
to find attractive opportunities for your portfolio. We hope to see some
attractive opportunities for the use of your portfolio's cash positions in
the not too distant future.
Very truly yours,
(Barbara L. Kenworthy Signature Logo)
Barbara L. Kenworthy
President
May 6, 1994
New York, N.Y.
* 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, adjusted for capital gain
distributions.
** Total return represents the change during the period in a hypothetical
account with dividends reinvested.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1994
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------ PRINCIPAL
BONDS AND NOTES--93.9% AMOUNT VALUE
------------ ------------
<C> <S> <C> <C>
BANKING--5.1% Barclays North American Capital, Capital Notes
(Gtd. by Barclays Bank PLC),
10 1/2%, 2017.................................... $ 2,000,000 $ 2,319,000
First Chicago, Sub. Notes,
8 1/4%, 2002..................................... 8,500,000 8,877,987
Fleet/Norstar Financial Group, Sub. Notes,
9.90%, 2001...................................... 4,000,000 4,515,660
KeyCorp, Sub. Notes,
8%, 2004......................................... 5,000,000 5,176,825
NationsBank, Sub. Medium-Term Notes,
6.20%, 2003...................................... 10,000,000 9,183,420
------------
30,072,892
------------
CHEMICALS--1.2% E.I. du Pont de Nemours and Co., Deb.,
8 1/4%, 2022..................................... 5,000,000 5,126,455
Hoechst Celanese, Notes,
9 5/8%, 1999..................................... 2,000,000 2,192,060
------------
7,318,515
------------
CONSUMER--8.7% MCI Communications, Sr. Deb.,
8 1/4%, 2023..................................... 3,000,000 3,057,924
McCormick & Co., Notes,
8.95%, 2001...................................... 2,000,000 2,196,644
News America Holdings (Gtd. by News),
Sr. Deb.,
9 1/4%, 2013..................................... 5,000,000 5,246,505
Philip Morris Cos., Notes,
9 1/4%, 1997..................................... 5,000,000 5,425,340
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 3,517,314
Rite Aid, Sr. Deb.,
6 7/8%, 2013..................................... 10,000,000 8,927,320
Rogers Cablesystems,
Sr. Secured Second Priority Notes,
9 5/8%, 2002..................................... 5,000,000 5,100,000
Tele-Communications, Sr. Deb.,
9 1/4%, 2023..................................... 5,000,000 5,180,820
Time Warner, Deb.,
9.15%, 2023...................................... 8,000,000 7,910,576
Wal-Mart Stores, Deb.,
7 1/4%, 2013..................................... 5,000,000 4,797,245
------------
51,359,688
------------
FINANCE--10.3% Chrysler Financial:
Floating Rate Notes,
3 15/16%, 1996................................. 5,000,000(a) 4,996,850
Notes,
6 5/8%, 2000................................... 10,000,000 9,673,330
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
<TABLE>
<C> <S> <C> <C>
FINANCE (CONTINUED) Commercial Credit, Notes,
10%, 2008........................................ $ 2,000,000 $ 2,384,298
Greyhound Financial, Floating Rate Notes,
4.273%, 1995..................................... 5,000,000(a) 5,003,100
KfW International Finance, Notes (Gtd. by KfW),
7%, 2013......................................... 8,000,000 7,532,952
Merrill Lynch & Co.:
Medium-Term Floating Rate Notes,
4.83%, 1997.................................... 14,000,000(a) 13,997,200
Notes,
8.30%, 2002.................................... 15,000,000 15,739,350
PaineWebber Group, Sub. Notes,
7 3/4%, 2002..................................... 2,000,000 1,968,966
------------
61,296,046
------------
INDUSTRIAL--8.3% Anheuser-Busch Cos., Deb.,
7 3/8%, 2023..................................... 5,000,000 4,678,940
Archer-Daniels-Midland,
Deb.:
8 1/8%, 2012................................... 5,000,000 5,214,300
8 3/8%, 2017................................... 5,000,000 5,371,205
Boeing, Deb.,
7 1/4%, 2025..................................... 5,000,000 4,637,915
Bowater, Deb.,
9 1/2%, 2012..................................... 5,000,000 5,428,545
General Electric Capital, Sub. Notes
(Gtd. by General Electric),
8 1/8%, 2012..................................... 3,000,000 3,135,834
Harnischfeger Industries, Deb.,
8.90%, 2022...................................... 5,000,000 5,379,170
Lockheed, Notes,
7 7/8%, 2023..................................... 5,000,000 4,747,075
McDonnell Douglas:
Deb.,
9 3/4%, 2012................................... 5,000,000 5,545,980
Notes,
8 1/4%, 2000................................... 5,000,000 5,153,010
------------
49,291,974
------------
INSURANCE--1.8% NAC Re, Notes,
8%, 1999......................................... 5,000,000 5,129,110
SunAmerica, Notes,
9%, 1999......................................... 5,000,000 5,400,350
------------
10,529,460
------------
OIL AND GAS--3.8% Atlantic Richfield, Deb.:
9 7/8%, 2016..................................... 2,000,000 2,425,156
9%, 2021......................................... 5,000,000 5,581,930
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
<TABLE>
<C> <S> <C> <C>
OIL AND GAS (CONTINUED) Chevron Profit Sharing/Savings Plan
Trust Fund, Notes (Gtd. by Chevron),
8.11%, 2004...................................... $ 5,000,000 $ 5,261,440
Maxus Energy, Sinking Fund Deb.,
11 1/4%, 2013.................................... 184,000 188,600
Occidental Petroleum, Sr. Deb.,
11 3/4%, 2011.................................... 5,000,000 5,635,320
Parker-Hannifin, Deb.,
9 3/4%, 2021..................................... 2,000,000 2,272,612
TransCanada Pipelines, Deb.,
9 7/8%, 2021..................................... 1,000,000 1,213,060
------------
22,578,118
------------
TELEPHONE--5.6% Bell Telephone of Pennsylvania, Deb.,
8 3/4%, 2031..................................... 5,000,000 5,599,405
GTE, Deb.,
10 1/4%, 2020.................................... 10,000,000 11,873,280
Mountain States Telephone and Telegraph, Deb.,
9 5/8%, 2030..................................... 1,000,000 1,118,844
New Jersey Bell Telephone, Deb.,
8%, 2022......................................... 5,000,000 5,181,185
Pacific Bell, Deb.,
7 1/2%, 2033..................................... 10,000,000 9,337,060
------------
33,109,774
------------
TRANSPORTATION--1.7% CSX, Deb.,
8.10%, 2022...................................... 5,000,000 4,987,435
Delta Air Lines, Deb.,
10 3/8%, 2022.................................... 5,000,000 5,268,060
------------
10,255,495
------------
UTILITIES--8.6% Consolidated Edison of New York, Deb.,
Ser. 1994 A, 7 1/8%, 2029........................ 5,000,000 4,519,465
Detroit Edison, Secured Medium-Term Notes,
Ser. G, 6.56%, 2001.............................. 5,000,000 4,807,425
El Paso Natural Gas, Deb.,
8 5/8%, 2022..................................... 2,000,000 2,112,118
Idaho Power, First Mortgage,
8 3/4%, 2027..................................... 7,000,000 7,490,455
Metropolitan Edison, Secured Medium-Term Notes,
Ser. B, 8.15%, 2023.............................. 5,000,000 5,032,360
Midwest Power Systems, General Mortgage,
8 1/8%, 2023..................................... 5,000,000 4,941,375
Niagara Mohawk Power, Secured Facility Bonds,
8.77%, 2018...................................... 2,963,000 2,831,952
ONEOK, Deb.,
9 3/4%, 2020..................................... 3,000,000 3,443,439
Pennsylvania Power & Light,
First Mortgage:
9 3/8%, 2021..................................... 5,000,000 5,581,565
7 7/8%, 2023..................................... 3,000,000 2,932,107
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
<TABLE>
<C> <S> <C> <C>
UTILITIES (CONTINUED) South Carolina Electric & Gas,
First and Refunding Mortgage,
8 7/8%, 2021..................................... $ 7,000,000 $ 7,635,810
------------
51,328,071
------------
FOREIGN--9.6% Banco Nacional de Comercio Exterior,
S.N.C., Notes,
7 1/4%, 2004..................................... 5,000,000 4,342,640
Hydro-Quebec, Deb.
(Gtd. by the Province of Quebec):
Ser. HS, 9.40%, 2021........................... 5,000,000 5,712,000
Ser. GQ, 8 1/4%, 2027.......................... 4,000,000 4,109,920
Nacional Financiera, S.N.C., Notes,
5 7/8%, 1998..................................... 5,000,000 4,662,500
Petro-Canada, Deb.
(Gtd. by the Government of Canada),
8 1/4%, 2016..................................... 2,000,000 2,180,520
Province of Manitoba, Deb.,
Ser. CD, 9 1/4%, 2020............................ 5,000,000 5,795,750
Province of Nova Scotia, Deb.,
8 3/4%, 2022..................................... 5,000,000 5,351,750
Republic of Argentina, Bonds,
8 3/8%, 2003..................................... 7,000,000 6,254,507
Republic of Finland, Deb.,
9 5/8%, 2028..................................... 4,000,000 4,613,408
Swedish Export Credit, Deb.,
9 7/8%, 2038..................................... 8,000,000 9,252,480
United Mexican States, Notes,
8 1/2%, 2002..................................... 5,000,000 4,808,440
------------
57,083,915
------------
OTHER--4.4% Collateralized Mortgage Obligation Trust 9, Cl. C
(Collateralized by GNMA Pass-Through Ctfs.),
7 3/4%, 2012..................................... 2,054,369 2,097,203
County of Contra Costa, California,
Taxable Pension Obligation Bonds,
1994 Ser. A, 6.85%, 2011......................... 5,000,000 4,484,450
DL J 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........................................ 494,496 537,463
FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group),
7.43%, 2022...................................... 6,251,939 6,208,958
Rural Electric Cooperative Grantor Trust Ctfs.:
(Soyland),
9.70%, 2017.................................... 5,000,000 5,379,020
(Tex-La),
9.58%, 2019.................................... 4,000,000 4,276,244
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
<TABLE>
<C> <S> <C> <C>
OTHER (CONTINUED) Ryland Acceptance Corp. Four,
Collateralized Mortgage Obligation
(Collateralized by GNMA Pass-Through Ctfs.),
Ser. 37-B,
8.35%, 2012...................................... $ 2,815,998 $ 2,879,950
------------
25,863,288
------------
U.S. GOVERNMENT AND
AGENCIES--24.8% FICO:
Deb.,
Ser. E, 9.65%, 2018............................ 5,000,000 6,131,250
Principal Strips:
Ser. 11, Zero Coupon, 2/8/2018................. 15,000,000 2,324,985
Ser. 1, Zero Coupon, 5/11/2018................. 20,000,000 3,038,460
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation Ctfs.:
Ser. 1322, Cl. 1322-F,
7 1/2%, 2005................................. 15,000,000 14,990,625
Ser. 1271, Cl. 1271-G,
7%, 2006..................................... 10,478,000 10,193,129
Ser. 1195, Cl. 1195-F,
7 1/2%, 2006................................. 6,000,000 6,146,250
Ser. 1202, Cl. 1202-F,
7%, 2007..................................... 5,000,000 4,948,438
Ser. 1184, Cl. 1184-E,
7.80%, 2016.................................. 10,000,000 10,083,800
Ser. 1354, Cl. 1354-PF,
7%, 2017..................................... 5,000,000 4,933,594
Ser. 1175, Cl. 1175-C,
8%, 2021..................................... 9,654,000 9,862,164
Federal National Mortgage Association,
Real Estate Mortgage Investment Conduit Trust
(Collateralized by FNMA Pass-Through Ctfs.):
Ser. 1992-136, Cl. 136-PD,
6%, 2016..................................... 11,000,000 10,463,970
Ser. 1992-118, Cl. 118-PG,
7%, 2018..................................... 5,000,000 4,981,250
Ser. 1991-176, Cl. 176-PJ,
7%, 2020..................................... 5,000,000 4,956,250
Ser. 1992-118, Cl. 118-PJ,
7 1/2%, 2021................................. 12,235,000 12,192,942
Synthetic Treasury Receipts,
Ser. l, 6%, 2006................................. 10,000,000 9,120,700
U.S. Treasury Bonds:
7 1/8%, 2/15/2023................................ 5,000,000 4,950,780
6 1/4%, 8/15/2023................................ 25,000,000 22,406,250
U.S. Treasury Notes,
8 1/2%, 11/15/2000............................... 5,000,000 5,525,000
------------
147,249,837
------------
TOTAL BONDS AND NOTES
(cost $558,312,885).............................. $557,337,073
------------
------------
<PAGE>
</TABLE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------ PRINCIPAL
SHORT-TERM INVESTMENTS--4.3% AMOUNT VALUE
------------ ------------
<C> <S> <C> <C>
TIME DEPOSIT; Republic National Bank of New York (London),
3 1/2%, 4/4/1994
(cost $25,700,000)............................... $ 25,700,000 $ 25,700,000
------------
------------
98.2% $583,037,073
------ ------------
------ ------------
TOTAL INVESTMENTS (cost $584,012,885)...............................................
1.8% $ 10,577,549
------ ------------
------ ------------
CASH AND RECEIVABLES (NET)..........................................................
100.0% $593,614,622
------ ------------
------ ------------
NET ASSETS..........................................................................
</TABLE>
- --------------------------------------------------------------------------------
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable rate security-interest rate subject to periodic change.
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $584,012,885)--see statement................................................... $583,037,073
Cash................................................................................... 1,005,910
Receivable for investment securities sold.............................................. 17,257,532
Interest receivable.................................................................... 8,570,520
Receivable for subscriptions to Common Stock........................................... 13,176
Prepaid expenses....................................................................... 65,680
------------
609,949,891
LIABILITIES:
Due to The Dreyfus Corporation......................................................... $ 337,166
Payable for investment securities purchased............................................ 14,000,000
Payable for Common Stock redeemed...................................................... 1,850,037
Accrued expenses....................................................................... 148,066 16,335,269
----------- ------------
NET ASSETS............................................................................... $593,614,622
------------
------------
REPRESENTED BY:
Paid-in capital........................................................................ $585,297,973
Accumulated undistributed investment income--net....................................... 6,727,259
Accumulated undistributed net realized gain on investments............................. 2,565,202
Accumulated net unrealized (depreciation) on investments--Note 3....................... (975,812)
------------
NET ASSETS at value applicable to 41,294,759 shares outstanding
(100 million shares of $.01 par value Common Stock authorized)........................... $593,614,622
------------
------------
NET ASSET VALUE, offering and redemption price per share
($593,614,622 / 41,294,759 shares)....................................................... $14.38
------
------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME........................................................................ $ 45,134,991
EXPENSES:
Management fee--Note 2(a)............................................................ $ 4,075,164
Shareholder servicing costs--Note 2(b)............................................... 1,335,316
Custodian fees....................................................................... 75,811
Professional fees.................................................................... 46,974
Registration fees.................................................................... 40,651
Prospectus and shareholders' reports................................................. 34,133
Directors' fees and expenses--Note 2(c).............................................. 33,953
Miscellaneous........................................................................ 10,107
-----------
TOTAL EXPENSES................................................................... 5,652,109
------------
INVESTMENT INCOME--NET........................................................... 39,482,882
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3............................................... $13,334,527
Net unrealized (depreciation) on investments........................................... (34,122,473)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................................ (20,787,946)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ 18,694,936
------------
------------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
---------------------------------
1993 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................................. $ 36,567,291 $ 39,482,882
Net realized gain on investments................................................... 21,241,710 13,334,527
Net unrealized appreciation (depreciation) on investments for the year............. 23,597,549 (34,122,473)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. 81,406,550 18,694,936
------------ ------------
NET EQUALIZATION CREDITS--Note 1(e).................................................. 570,527 380,820
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................................. (36,132,010) (39,448,092)
Net realized gain on investments................................................... (7,322,450) (23,253,146)
------------ ------------
TOTAL DIVIDENDS.................................................................. (43,454,460) (62,701,238)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold...................................................... 288,950,527 311,162,989
Dividends reinvested............................................................... 36,229,458 53,245,642
Cost of shares redeemed............................................................ (236,140,815) (301,599,810)
------------ ------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........................... 89,039,170 62,808,821
------------ ------------
TOTAL INCREASE IN NET ASSETS................................................. 127,561,787 19,183,339
NET ASSETS:
Beginning of year.................................................................. 446,869,496 574,431,283
------------ ------------
End of year (including undistributed investment income--net:
$6,311,649 in 1993 and $6,727,259 in 1994)....................................... $574,431,283 $593,614,622
------------ ------------
------------ ------------
<CAPTION>
SHARES SHARES
<S> <C> <C>
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................................ 19,568,536 20,190,752
Shares issued for dividends reinvested............................................. 2,471,603 3,477,064
Shares redeemed.................................................................... (15,953,360) (19,598,158)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING............................................... 6,086,779 4,069,658
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
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 year indicated. This information has been
derived from information provided in the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
- ------------------------------------------------- --------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............. $13.24 $13.45 $13.65 $14.35 $15.43
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net......................... 1.18 1.15 1.11 1.05 .98
Net realized and unrealized gain (loss) on
investments.................................... .21 .20 .70 1.29 (.46)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS............. 1.39 1.35 1.81 2.34 .52
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net.......... (1.18) (1.15) (1.11) (1.05) (.99)
Dividends from net realized gain on
investments.................................... -- -- -- (.21) (.58)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS.......................... (1.18) (1.15) (1.11) (1.26) (1.57)
------ ------ ------ ------ ------
Net asset value, end of year................... $13.45 $13.65 $14.35 $15.43 $14.38
------ ------ ------ ------ ------
------ ------ ------ ------ ------
10.66% 10.60% 13.75% 17.09% 3.09%
- -------------------------------------------------
TOTAL INVESTMENT RETURN
- -------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........ .86% .85% .88% .93% .90%
Ratio of net investment income to average net
assets......................................... 8.52% 8.59% 7.88% 7.07% 6.30%
Portfolio Turnover Rate........................ 39.77% 25.90% 66.82% 81.15% 93.67%
Net Assets, end of year (000's Omitted)........ $299,783 $339,935 $446,869 $574,431 $593,615
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 ("Distributor") acts as the exclusive distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor is
a wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
(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 in the judgment of the Service are readily available and are
representative of the bid side of the market 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 March 31, 1994, the Board of Directors declared a cash dividend of $.082
per share from undistributed investment income-net, payable on April 4, 1994
(ex-dividend date), to shareholders of record as of the close of business on
March 31 , 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 provisions available to
certain investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of taxable income sufficient to relieve
it from all, or substantially all, Federal income taxes.
(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
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
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 year ended March 31, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
the Distributor 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 year ended March 31, 1994, the Fund was
charged an aggregate of $774,184 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons," as
defined in the Act, of the Manager and/or the Distributor. Each director who is
not an "affiliated person" receives an annual fee of $2,500 and an attendance
fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan of
Merger (the "Merger Agreement") providing for the merger of the Manager with a
subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number of
contingencies, including receipt of certain regulatory approvals and approvals
of the stockholders of the Manager and of Mellon. The merger is expected to
occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board and
shareholders before completion of the merger. Shareholder approval will be
solicited by a proxy statement.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities, other
than short-term securities, during the year ended March 31, 1994, amounted to
$586,516,364 and $559,545,823, respectively.
At March 31, 1994, accumulated net unrealized depreciation on investments
was $975,812, consisting of $15,833,254 gross unrealized appreciation and
$16,809,066 gross unrealized depreciation.
At March 31, 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).
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS A BONDS PLUS, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus A Bonds Plus, Inc., including the statement of investments, as of March
31, 1994, 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 generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1994 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Dreyfus A Bonds Plus, Inc. at March 31, 1994, 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 generally accepted accounting principles.
Ernst & Young
New York, New York
April 29, 1994
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS A BONDS PLUS, INC.
- --------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal Tax purposes the Fund hereby designates $.2583 per share as a
long-term capital gain distribution of the $.5840 per share paid on December 1,
1993.
<PAGE>
[Logo]
DREYFUS A BONDS PLUS, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 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. 084AR943
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS A BONDS PLUS AND THE MERRILL
LYNCH CORPORATE MASTER INDEX (COAO)
EXHIBIT A:
_____________________________________________
| | | |
| | MERRILL | DREYFUS |
| PERIOD |LYNCH CORPORATE| A BONDS |
| | MASTER INDEX* | PLUS |
|--------------|---------------|-------------|
| 3/31/84 | 10,000 | 10,000 |
| 6/30/84 | 9,741 | 9,619 |
| 9/30/84 | 10,761 | 10,538 |
| 12/31/84 | 11,626 | 11,249 |
| 3/31/85 | 11,861 | 11,507 |
| 6/30/85 | 13,024 | 12,511 |
| 9/30/85 | 13,314 | 12,783 |
| 12/31/85 | 14,575 | 13,871 |
| 3/31/86 | 15,787 | 14,894 |
| 6/30/86 | 15,934 | 14,938 |
| 9/30/86 | 16,221 | 15,181 |
| 12/31/86 | 16,950 | 15,828 |
| 3/31/87 | 17,257 | 16,285 |
| 6/30/87 | 16,879 | 15,609 |
| 9/30/87 | 16,253 | 14,821 |
| 12/31/87 | 17,262 | 15,773 |
| 3/31/88 | 18,017 | 16,485 |
| 6/30/88 | 18,179 | 16,613 |
| 9/30/88 | 18,701 | 16,942 |
| 12/31/88 | 18,946 | 17,196 |
| 3/31/89 | 19,191 | 17,314 |
| 6/30/89 | 20,762 | 19,007 |
| 9/30/89 | 20,990 | 19,040 |
| 12/31/89 | 21,621 | 19,641 |
| 3/31/90 | 21,470 | 19,159 |
| 6/30/90 | 22,181 | 19,819 |
| 9/30/90 | 22,164 | 19,507 |
| 12/31/90 | 23,215 | 20,583 |
| 3/31/91 | 24,084 | 21,189 |
| 6/30/91 | 24,611 | 21,566 |
| 9/30/91 | 26,065 | 23,021 |
| 12/31/91 | 27,449 | 24,445 |
| 3/31/92 | 27,279 | 24,102 |
| 6/30/92 | 28,475 | 25,057 |
| 9/30/92 | 29,876 | 26,548 |
| 12/31/92 | 29,952 | 26,451 |
| 3/31/93 | 31,482 | 28,222 |
| 6/30/93 | 32,457 | 29,079 |
| 9/30/93 | 33,709 | 30,637 |
| 12/31/93 | 33,674 | 30,406 |
| 3/31/94 | 32,635 | 29,094 |
|____________________________________________|
__________________________________________________
| DREYFUS A BONDS PLUS |
|--------------------------------------------------|
| AVERAGE ANNUAL TOTAL RETURNS |
| ENDED ON 3/31/94 |
|--------------------------------------------------|
| | | |
| 1 YEAR | 5 YEAR | 10 YEAR |
| | | |
|--------------|---------------|-------------------|
| 3.09%| 10.94%| 11.27% |
--------------------------------------------------
