DREYFUS A BONDS PLUS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus A Bonds Plus,
Inc. For its semi-annual reporting period ended September 30, 1995, your Fund
produced a total return, including bond price changes and interest income, of
9.44%.* Dividends declared from net investment income during the last six
months amounted to $.47 per share. The annualized distribution rate per share
for this period was 6.44%.**
The Federal Reserve Board relaxed its policy of monetary restraint in
July of 1995 when it lowered the Fed Funds rate on July 6th. This reduction
ended the upward pressure on short-term rates which had prevailed since the
beginning of the reporting period. Despite the monetary restraint that
existed, long-term rates began their decline early in the year. The Fed's
policy of restraint was based on concern about inflation given the strong
economic news then prevailing. But in July these same reports indicated a
significant weakening trend in the economy. The July decline in the Fed Funds
rate signaled that economic growth issues outweighed, for a time, Fed fears
of a resurgence of inflation.
THE ECONOMY
Economic reports indicated lagging home and auto sales and a decline in
new home construction from earlier this year. Furthermore, rising business
inventories (a frequent harbinger of a business slowdown) and weakening
retail sales lent additional credibility to the case for easier credit
conditions. By midyear, jobless claims were also on the rise and the trend of
corporate cost reduction programs (particularly the impact on layoffs)
continued. Since the early summer easing, economic signals have remained
mixed and inflationary expectations remained subdued. Accordingly, interest
rates have stabilized.
More recently, however, economic strength has been reflected in some of
the indicators released. Inflation is moderate, but various sectors of the
economy such as consumer spending and housing appear to be picking up. The
stronger numbers may forestall any immediate easing by the Federal Reserve
Board.
A word about inflation: despite strong economic growth at the beginning
of the reporting period, inflation remained in check. We believe a
continuation of this moderating trend for prices appears likely, particularly
if the economy remains sluggish. This could be good news for bond investors
since easing inflation often results in falling interest rates. Declining
interest rates, often a corollary to slow business conditions, cause bond
prices to rise.
MARKET ENVIRONMENT
The bond market, buffeted by six interest rate hikes by the Federal
Reserve Board in 1994, recovered strongly in 1995. Using the 30-year Treasury
bond as a benchmark, over the past six months, yields have declined by almost
a full percentage point (from a 7.4% level to about 6.45% at the end of the
reporting period). Weaker than expected December 1994 sales figures tumbled
rates and this decline persisted throughout the remainder of the reporting
period. Last summer's rate cut confirmed what declining long-term interest
rates had indicated all year . . . that business conditions were weaker than
monetary policymakers thought. We believe this indicates a rather favorable
outlook for bond markets in general. We are certainly pleased and encouraged
by the good performance of late in the bond market and by the Fund. However,
we are wary that this bond market strength may be counting too much on
continued low inflation. Thus, while we remain fully invested in this
improving market, we are alert to the stimulatory effects of easing monetary
policy and are watchful for any signs of rekindling inflation.
THE PORTFOLIO
The Fund was well-structured to take advantage of the decline in interest
rates. The dollar-weighted average duration of the securities in the Fund was
5.6 years. For the 6-month period ended September 30, 1995, the Fund's 9.44%
total return ranked 18 out of 124 in the Corporate Debt A Rated category as
reported by Lipper Analytical Services, Inc.+ Of course, share price and
investment return do fluctuate and past performance is no guarantee of future
results.
As of September 30, 1995, the average credit quality rating of the
securities in the Fund as measured by Standard & Poor's was AA-.++ Some
significant transactions occurred in the portfolio. We eliminated a 7%
position in collateralized mortgage obligations (CMOs) since we believed that
these securities were becoming less liquid because of the withdrawal of many
dealers from the market. We increased holdings in the industrial sector,
purchasing bonds of such high quality companies as Eli Lily, Motorola and
Raytheon.
Finally, the high level of volatility exhibited by the market in recent
years underscores the need to maintain a disciplined and long-term focus.
Solid market performance thus far in 1995 has rewarded the patient investor.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope they are informative. Please
know that we appreciate greatly your continued confidence in the Fund and in
The Dreyfus Corporation.
Sincerely,
[Garitt A. Kono signature logo]
Garitt A. Kono
Portfolio Manager
October 15, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**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.
+ SOURCE: Lipper Analytical Services, Inc.
++ S&P ratings are based on an analysis of several factors, including, but
not limited to, the credit quality of the investments within the portfolio,
diversification of assets, management, liquidity and investment practices.
S&P ratings are subject to change.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-92.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
BANKING-12.8%............ ABN AMRO Bank N.V.,
Sub. Notes, 7 1/4%, 2005................... $ 6,000,000 $ 6,166,560
Bank of New York,
Sub. Notes, 8 1/2%, 2004................... 5,000,000 5,568,920
BankAmerica,
Sub. Notes, 6 3/4%, 2005................... 10,000,000 9,892,590
Chemical Banking,
Sub. Deb., 7 7/8%, 2006.................... 5,000,000 5,339,070
Citicorp,
Global Medium-Term Sr. Note,
Ser. C, 8 5/8%, 2004 5,000,000 5,317,770
Sub. Notes, 7 1/8%, 2005................... 10,000,000 10,182,000
Dresdner Bank,
Sub. Notes, 6 5/8%, 2005................... 7,000,000 6,966,841
First Chicago,
Sub. Notes, 8 1/4%, 2002................... 8,500,000 9,204,574
Fleet/Norstar Financial Group,
Sub. Notes, 9.90%, 2001.................... 4,000,000 4,579,428
Manufacturers & Traders,
Sub. Notes, 7%, 2005....................... 5,000,000 5,008,295
NCNB,
Sub. Notes, 9 3/8%, 2009................... 5,000,000 5,952,435
-------------
74,178,483
-------------
CHEMICALS-.4% Hoechst Celanese,
Notes, 9 5/8%, 1999........................ 2,000,000 2,121,750
-------------
CONSUMER-3.5%. Federated Department Stores,
Sr. Notes, 10%, 2001....................... 3,000,000 3,247,500
McCormick & Co.,
Notes, 8.95%, 2001......................... 2,000,000 2,239,196
News America Holdings (Gtd. by News):
Sr. Deb., 9 1/4%, 2013..................... 5,000,000 5,691,710
Sr. Notes, 8 1/2%, 2005.................... 5,000,000 5,426,715
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 3,706,707
-------------
20,311,828
-------------
FINANCE-14.7% Associates Corp. of North America:
Medium-Term Sr. Notes, Ser. G, 8 1/4%, 2004 5,000,000 5,476,425
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
FINANCE (CONTINUED) Associates Corp. of North America (continued):
Sr. Notes:
6 3/8%, 1998 $ 5,000,000 $ 5,020,015
7 7/8%, 2001 5,000,000 5,330,575
Avco Financial Services,
Sr. Notes, 6.35%, 2000..................... 6,000,000 5,954,520
Commercial Credit, Notes:
7 3/4%, 2005............................... 7,000,000 7,449,253
10%, 2008.................................. 2,000,000 2,509,588
Ford Holdings,
Gtd. Deb., 9 3/8%, 2020.................... 5,000,000 5,989,985
Ford Motor Credit:
Medium-Term Notes, 9.03%, 2009............. 9,000,000 10,645,245
Notes, 7 3/4%, 2005........................ 13,000,000 13,799,370
General Motors Acceptance,
Medium-Term Notes:
8 1/2%, 1999 5,000,000 5,354,135
7 1/2%, 2000 5,000,000 5,189,935
Notes, 8 3/4%, 1997........................ 6,000,000(a) 6,788,160
Household Finance,
Notes, 7.65%, 2007......................... 5,000,000 5,292,640
-------------
84,799,846
-------------
FINANCE/ Chevy Chase Master Credit Card Trust,
FLOATING RATE-7.4% Floating Rate Asset Backed Ctfs.:
Ser. 1994-5, Cl. A, 6.085%, 2001.......... 10,000,000(b) 10,001,000
Ser. 1995-1, Cl. A, 6 1/8%, 2002.......... 5,000,000(b) 5,000,000
Dean Witter, Discover & Co.,
Floating Rate Notes, 6 1/4%, 2000.......... 3,000,000(b) 3,030,297
People's Bank Credit Card Master Trust,
Floating Rate Notes,
Ser. 1994-2, Cl. A, 6.025%, 2001........... 25,000,000(b) 25,007,500
-------------
43,038,797
-------------
INDUSTRIAL-18.4% Anheuser Busch Cos.,
Notes, 6 3/4%, 2005........................ 10,000,000 10,070,890
Archer-Daniels-Midland,
Deb., 10 1/4%, 2006........................ 3,000,000 3,772,161
Browning-Ferris Industries,
Sr. Notes, 7 7/8%, 2005.................... 3,500,000 3,775,817
Cincinnati Milacron,
Notes, 8 3/8%, 2004........................ 5,000,000 5,162,500
GATX Capital,
Medium-Term Notes, Ser. B, 9 1/2%, 2002.... 5,000,000 5,686,285
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
INDUSTRIAL (CONTINUED) General Electric Capital:
Global Medium-Term Notes, Ser. A,
7.84%, 1997............................. $ 7,000,000 $ 7,162,645
Sub. Notes (Gtd. by General Electric):
8 1/8%, 2012............................ 3,000,000 3,338,886
Notes, 8 1/2%, 2008........................ 6,000,000 6,861,894
Harnischfeger Industries,
Deb., 8.90%, 2022.......................... 5,000,000 5,732,695
Lilly (Eli) & Co.,
Notes, 7 1/8%, 2025........................ 6,000,000 6,003,810
McDonnell Douglas,
Deb., 9 3/4%, 2012......................... 5,000,000 6,069,055
Motorola,
Deb., 7 1/2%, 2025......................... 10,000,000 10,423,080
Northrop Grumman,
Notes, 8 5/8%, 2004........................ 5,000,000 5,536,955
Raytheon,
Notes, 6 1/2%, 2005........................ 6,000,000 5,924,304
Time Warner Entertainment, L.P.,
Notes, 10.15%, 2012........................ 5,000,000 5,855,925
Sr. Debt, 8 3/8%, 2023..................... 12,000,000 12,118,500
Union Carbide,
Deb., 8 3/4%, 2022......................... 3,000,000 3,266,400
-------------
106,761,802
-------------
INSURANCE-2.8% NAC Re,
Notes, 8%, 1999............................ 5,000,000 5,188,930
Orion Capital,
Sr. Notes, 9 1/8%, 2002.................... 5,000,000 5,425,000
SunAmerica,
Notes, 9%, 1999............................ 5,000,000 5,335,145
-------------
15,949,075
-------------
OIL AND GAS-3.3% Chevron Profit Sharing/Savings Plan Trust Fund,
Notes (Gtd. by Chevron), 8.11%, 2004....... 5,000,000 5,393,165
Maxus Energy,
Sinking Fund Deb., 11 1/4%, 2013........... 184,000 183,080
Occidental Petroleum,
Sr. Deb., 11 3/4%, 2011.................... 5,000,000 5,356,685
Parker-Hannifin,
Deb., 9 3/4%, 2021......................... 2,000,000 2,287,378
Phillips Petroleum,
Notes, 9 3/8%, 2011........................ 5,000,000 6,022,205
-------------
19,242,513
-------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
TELEPHONE-.9% AT&T,
Deb., 8.35%, 2025.......................... $ 5,000,000 $ 5,418,805
-------------
UTILITIES-5.6% El Paso Natural Gas,
Deb., 8 5/8%, 2022......................... 2,000,000 2,259,568
Idaho Power,
First Mortgage, 8 3/4%, 2027............... 7,000,000 7,642,390
National Rural Utilities Cooperative Finance,
Collateral Trust Bonds, Ser. V, 9%, 2021... 5,000,000 5,658,990
ONEOK,
Deb., 9 3/4%, 2020......................... 3,000,000 3,428,064
South Carolina Electric & Gas,
First and Refunding Mortgage, 8 7/8%, 2021. 7,000,000 7,844,081
Union Electric,
First Mortgage Bonds, 8 3/4%, 2021......... 5,000,000 5,585,860
-------------
32,418,953
-------------
FOREIGN-5.5% Hydro-Quebec,
Deb. (Gtd. by the Province of Quebec):
Ser. HS, 9.40%, 2021..................... 5,000,000 5,955,900
Ser. GF, 8 7/8%, 2026.................... 5,000,000 5,688,650
Midland Bank plc,
Sub. Notes, 8 5/8%, 2004................... 5,000,000 5,546,495
New Zealand,
Notes, 8 3/4%, 2016........................ 5,000,000 5,950,875
Province of Manitoba,
Deb., Ser CD, 9 1/4%, 2020................. 5,000,000 6,120,900
Province of Quebec,
Deb., 11%, 2015............................ 2,000,000 2,355,040
-------------
31,617,860
-------------
OTHER-3.3% Collateralized Mortgage Obligation Trust 9,
Cl. C (Collateralized by
GNMA Pass-Through Ctfs.),
7 3/4%, 2012............................... 851,212 862,686
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.... 308,055 329,577
FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022....... 6,134,328 6,199,505
Rural Electric Cooperative Grantor Trust Ctfs.:
(Soyland), 9.70%, 2017..................... 5,000,000 5,459,145
(Tex-La), 9.58%, 2019...................... 4,000,000 4,391,116
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
OTHER (CONTINUED) Ryland Acceptance Corp. Four,
Collateralized Mortgage Obligation
(Collateralized by GNMA Pass-Through Ctfs.),
Ser. 37-B, 8.35%, 2012..................... $ 1,588,460 $ 1,615,766
-------------
18,857,795
-------------
U.S. GOVERNMENT AND
AGENCIES-13.4% FICO,
Deb., Ser. E, 9.65%, 2018.................. 5,000,000 6,496,875
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation Ctfs.,
Ser. 1184, Cl. 1184-E, 7.80%, 2016......... 4,509,460 4,507,476
Government National Mortgage Association 1:
7%, 7/15/2023.............................. 9,561,583 9,459,944
8%, 8/15/2023.............................. 15,811,355 16,275,735
7 1/2%, 10/15/2023......................... 14,597,733 14,757,287
7 1/2%, 5/15/2024.......................... 11,156,903 11,278,849
8 1/2%, 9/15/2024.......................... 5,815,135 6,065,884
U.S. Treasury Bonds,
8 7/8%, 2/15/2019.......................... 7,000,000 8,818,908
-------------
77,660,958
-------------
TOTAL BONDS AND NOTES
(cost $505,324,352)........................ $532,378,465
=============
SHORT-TERM INVESTMENT-7.7%
U.S. GOVERNMENT AGENCY; Federal Home Loan Bank,
6.30%, 10/2/1995
(cost $44,512,209)......................... $ 44,520,000 $ 44,512,209
=============
TOTAL INVESTMENTS (cost $549,836,561)............................................. 99.7% $576,890,674
===== =============
CASH AND RECEIVABLES (NET)........................................................ .3% $ 1,651,124
===== =============
NET ASSETS........................................................................ 100.0% $578,541,798
===== =============
NOTE TO STATEMENT OF INVESTMENTS:
(a) Reflects date security can be redeemed at holder's option; the
actual maturity date is 7/15/2005.
(b) Variable rate security-interest rate subject to periodic change.
See independent accountants' review report and notes to financial statements.
DREYFUS A BONDS PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1995 (UNAUDITED)
ASSETS:
Investments in securities, at value
(cost $549,836,561)-see statement........................................... $576,890,674
Cash.......................................................................... 1,254,823
Interest receivable........................................................... 7,765,234
Receivable for investment securities sold..................................... 7,269,589
Receivable for subscriptions to Common Stock.................................. 604,185
Prepaid expenses.............................................................. 68,074
-------------
593,852,579
LIABILITIES:
Due to The Dreyfus Corporation................................................ $ 306,186
Payable for investment securities purchased................................... 14,309,215
Payable for Common Stock redeemed............................................. 470,675
Accrued expenses.............................................................. 224,705 15,310,781
------------ -------------
NET ASSETS ...................................................................... $578,541,798
=============
REPRESENTED BY:
Paid-in capital............................................................... $563,666,977
Accumulated undistributed investment income-net............................... 6,102,243
Accumulated net realized (loss) on investments................................ (18,281,535)
Accumulated net unrealized appreciation on investments-Note 3................. 27,054,113
-------------
NET ASSETS at value applicable to 39,764,584 outstanding shares of Common
Stock, equivalent to $14.55 per share (100 million shares of $.01 par
value authorized)............................................................. $578,541,798
=============
See independent accountants' review report and notes to financial statements.
DREYFUS A BONDS PLUS, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME............................................................... $21,366,324
EXPENSES:
Management fee-Note 2(a).................................................... $ 1,848,047
Shareholder servicing costs-Note 2(b)....................................... 694,038
Custodian fees.............................................................. 33,695
Professional fees........................................................... 25,341
Directors' fees and expenses-Note 2(c)...................................... 24,443
Prospectus and shareholders' reports........................................ 21,316
Registration fees........................................................... 19,496
Miscellaneous............................................................... 3,416
------------
TOTAL EXPENSES.......................................................... 2,669,792
------------
INVESTMENT INCOME-NET................................................... 18,696,532
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3....................................... $ 5,555,356
Net unrealized appreciation on investments.................................... 26,544,375
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS......................... 32,099,731
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $50,796,263
=============
See independent accountants' review report and notes to financial statements.
DREYFUS A BONDS PLUS, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1995
1995 (UNAUDITED)
--------------- ---------------
OPERATIONS:
Investment income-net......................................................... $ 36,279,650 $ 18,696,532
Net realized gain (loss) on investments....................................... (23,773,183) 5,555,356
Net unrealized appreciation on investments for the period..................... 1,485,550 26,544,375
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ 13,992,017 50,796,263
------------- -------------
NET EQUALIZATION CREDITS (DEBITS)-Note 1(e)....................................... (278,844) 19,254
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net......................................................... (36,400,897) (18,940,711)
Net realized gain on investments.............................................. (2,628,910) ---
------------- -------------
TOTAL DIVIDENDS............................................................. (39,029,807) (18,940,711)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold................................................. 183,480,472 91,583,493
Dividends reinvested.......................................................... 32,865,953 16,399,856
Cost of shares redeemed....................................................... (245,504,043) (100,456,727)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS (29,157,618) 7,526,622
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS................................. (54,474,252) 39,401,428
NET ASSETS:
Beginning of period........................................................... 593,614,622 539,140,370
------------- -------------
End of period (including undistributed investment income-net:
$6,327,168 and $6,102,243, respectively).................................... $ 539,140,370 $ 578,541,798
============= =============
SHARES SHARES
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................... 13,563,457 6,456,629
Shares issued for dividends reinvested........................................ 2,427,899 1,162,930
Shares redeemed............................................................... (18,074,118) (7,066,972)
------------- -------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING............................... (2,082,762) 552,587
============= =============
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, 1995
--------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
------- ------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.45 $13.65 $14.35 $15.43 $14.38 $13.75
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................. 1.15 1.11 1.05 .98 .94 .47
Net realized and unrealized gain (loss)
on investments...................... .20 .70 1.29 (.46) (.56) .81
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.... 1.35 1.81 2.34 .52 .38 1.28
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.. (1.15) (1.11) (1.05) (.99) (.94) (.48)
Dividends from net realized gain
on investments...................... - - (.21) (.58) (.07) -
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................... (1.15) (1.11) (1.26) (1.57) (1.01) (.48)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $13.65 $14.35 $15.43 $14.38 $13.75 $14.55
====== ====== ====== ===== ===== =====
TOTAL INVESTMENT RETURN................... 10.60% 13.75% 17.09% 3.09% 3.01% 18.83%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .85% .88% .93% .90% .99% .94%(1)
Ratio of net investment income to average
net assets.......................... 8.59% 7.88% 7.07% 6.30% 6.89% 6.56%(1)
Portfolio Turnover Rate............... 25.90% 66.82% 81.15% 93.67% 172.60% 78.96%(2)
Net Assets, end of period (000's Omitted) $339,935 $446,869 $574,431 $593,615 $539,140 $578,542
_____________________
(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. Premier Mutual Fund
Services, Inc. (the "Distributor") is engaged as the Fund's distributor. The
Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a
wholly-owned subsidiary of FDI Distribution Services, Inc., a provider of
mutual fund administration services, which in turn is a wholly-owned
subsidiary of FDI Holdings, Inc., the parent company of which is Boston
Institutional Group, Inc. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding short-term
investments and U.S. Government obligations) 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. Investments in U.S. Government obligations are
valued at the mean between quoted bid and asked prices. Investments
denominated in foreign currencies are translated to U.S. dollars at the
prevailing rates of exchange. 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, it is the policy of the Fund not to distribute such gain.
On September 29, 1995, the Board of Directors declared a cash dividend of
$.075 per share from undistributed investment income-net, payable on October
2, 1995 (ex-dividend date), to shareholders of record as of the close of
business on September 29, 1995.
(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)
The Fund has an unused capital loss carryover of approximately $17,550,000
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
March 31, 1995. The carryover does not include net realized securities losses
from November 1, 1994 through March 31, 1995 which are treated, for Federal
income tax purposes, as arising in fiscal 1996. If not applied, the carryover
expires in fiscal 2003.
(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 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, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining 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, 1995, the Fund was charged an
aggregate of $399,501 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales (including paydowns) of
investment securities, other than short-term securities, during the six
months ended September 30, 1995, amounted to $421,676,101 and $445,475,150,
respectively.
At September 30, 1995, accumulated net unrealized appreciation on
investments was $27,054,113, consisting of $27,632,247 gross unrealized
appreciation and $578,134 gross unrealized depreciation.
At September 30, 1995, 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, 1995, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended September
30, 1995. 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, 1995 and financial highlights for each of the five years in the
period ended March 31, 1995 and in our report dated May 1, 1995, we expressed
an unqualified opinion on such statement of changes in net assets and
financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
November 1, 1995
[Dreyfus lion "d" logo]
DREYFUS A BONDS PLUS, INC.
200 Park Avenue
New York, NY 10166
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. 084SA959
[Dreyfus logo]
A Bonds Plus
Semi-Annual
Report
September 30, 1995
