LETTER TO SHAREHOLDERS
Dear Shareholder:
For the year ended March 31, 1995, Dreyfus A Bonds Plus, Inc. provided
shareholders with a distribution rate per share of 6.84%.* The total return
of the Fund for the year was 3.01%.** Dividends declared from net investment
income amounted to $.945 per share. Capital gain distributions for the year
amounted to $.072 per share.
The calendar year 1994 was one of the worst years for the bond market in
nearly 70 years. Since November, however, the picture has brightened
considerably. During 1994, the Federal Reserve Board tightened short-term
interest rates six different times. Then on February 1, 1995 the Federal
Reserve tightened them yet again. The Federal Funds rate went from 3% in
early February 1994 to 6% at the end of March 1995.
With the national elections last November behind us, the bond markets
began a substantial rally. On November 11, 1994, the 30-year Treasury bond
was yielding 8.16% and on March 31, 1995, the same bond was yielding 7.43%.
In years such as 1994 with periods of high volatility and Federal Reserve
tightening, bond returns have often been negative and the Fund's performance
lagged accordingly. We have been doing better since December of 1994. For the
three months ended March 31, 1995, the Fund had a 5.03% return. Over these
last three months, the Fund's performance ranked in the top quarter among
similar type funds in the Lipper Corporate Debt A Rated Funds Category. The
Fund ranked 26 out of 114 funds based on total return.*** For the one-year
period ended March 31, 1995, the Fund had a total return of 3.01%. Of course,
past performance is no guarantee of future results.
The Fund's duration is approximately 1 year longer than our benchmark.
This has enabled us to have a better market performance in a declining rate
environment. The derivatives we have used in this Fund are plain vanilla
CMOs, which in our opinion are corporate bond substitutes with AAA credit
ratings, more yield and no event risk.
Without question, one investment decision above all others affected your
Fund in a very positive manner during the last year. We turned quite negative
on the foreign bond markets last October and November. During the year ended
March 31, 1995, we sold approximately $40 million worth of these bonds. After
we completed our sales in an orderly manner, the foreign markets, especially
Latin America, sold off dramatically, nearly halving their actual worth in
many instances. As an example, we sold United Mexican States notes 8.5%, 2002
at a price of $91.50. They traded at a dollar price below $50 not too long
after our sales.
Going forward, we continue to anticipate some additional volatility in
the market. Our durations are currently longer than the Merrill Lynch
Corporate Master Index.
There is still a possibility of one more Federal Reserve tightening. We
do believe that the stringent Federal Reserve policies will be effective in
curbing domestic inflation. In our opinion, the dollar's
weakness still remains a problem, and both the Treasury Department and the
Federal Reserve are currently reviewing their options.
Very truly yours,
(Garitt A. Kono Signature Logo)
Garitt A. Kono
Portfolio Manager
April 18, 1995
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.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC. Average annual total
return for all funds in the Corporate Debt A Rated Funds Category
reflects reinvestment of distributions. For the one-year period ended
March 31, 1995, the Fund ranked 75 out of 99 funds. The Fund's share
price and yield fluctuate.
The Merrill Lynch Corporate Master Index is 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.
DREYFUS A BONDS PLUS, INC.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS A BONDS PLUS,
INC. AND THE MERRILL LYNCH CORPORATE MASTER INDEX
Dollars
(EXHIBIT A)
$28,966
Merrill Lynch Corporate
Master Index*
$26,044
Dreyfus A Bonds Plus
*Source: Merrill Lynch Pierce, Fenner and Smith Inc.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
MARCH 31, 1995 MARCH 31, 1995 MARCH 31, 1995
----------------- ------------------ ------------------
<S> <C> <C> <C>
3.01% 9.36% 10.04%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment in Dreyfus A Bonds Plus on
3/31/85 to a $10,000 investment made in the Merrill Lynch Corporate Master
Index 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 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.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1995
PRINCIPAL
BONDS AND NOTES-97.2% AMOUNT VALUE
-------------- --------------
<S> <C> <C> <C>
BANKING-6.9% Bank of New York,
Sub. Notes, 8 1/2%, 2004............ $ 5,000,000 $ 5,170,875
Chemical Banking,
Sub. Deb., 7 7/8%, 2006.............. 5,000,000 4,911,540
Citicorp,
Global Medium-Term Sr. Notes,
Ser. C, 8 5/8%, 2004................. 5,000,000 5,181,000
First Chicago,
Sub. Notes, 8 1/4%, 2002............ 8,500,000 8,612,625
Fleet/Norstar Financial Group,
Sub. Notes, 9.90%, 2001.............. 4,000,000 4,356,396
NationsBank,
Sub. Medium-Term Notes, 6.20%, 2003. 10,000,000 8,891,210
--------------
37,123,646
--------------
CHEMICALS-.4% Hoechst Celanese,
Notes, 9 5/8%, 1999.................. 2,000,000 2,094,254
------------
CONSUMER-5.7% Federated Department Stores,
Sr. Notes, 10%, 2001................. 3,000,000 3,150,000
McCormick & Co.,
Notes, 8.95%, 2001................... 2,000,000 2,118,578
News America Holdings (Gtd. by News),
Sr. Deb., 9 1/4%, 2013............... 5,000,000 5,146,350
Paramount Communications,
Sr. Notes, 7 1/2%, 2002.............. 2,500,000 2,366,948
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 3,377,118
Rogers Cablesystems,
Sr. Secured Second Priority Notes,
9 5/8%, 2002......................... 5,000,000 4,975,000
Tele-Communications,
Sr. Deb., 9 1/4%, 2023............... 5,000,000 4,813,370
Wal-Mart Stores,
Deb., 7 1/4%, 2013................... 5,000,000 4,628,255
------------
30,575,619
----------
FINANCE-13.7% Associates Corp. of North America:
Medium-Term Sr. Notes, Ser. G., 8 1/4%, 2004 5,000,000 5,107,400
Sr. Notes, 7 7/8%, 2001.............. 5,000,000 5,055,350
CIT Group Holdings,
Medium-Term Notes, 8%, 1997.......... 5,000,000 5,073,150
Commercial Credit,
Notes, 10%, 2008..................... 2,000,000 2,324,236
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
FINANCE (CONTINUED) Dean Witter, Discover & Co.,
Floating Rate Notes, 6 5/8%, 2000.... $ 3,000,000 (a) $ 3,001,860
Ford Motor Credit:
Medium-Term Notes, 9.03%, 2009....... 9,000,000 9,732,690
Notes:
8.20%, 2002...................... 8,000,000 8,170,432
7 3/4%, 2005..................... 5,000,000 4,965,250
General Motors Acceptance,
Medium-Term Notes:
8 1/2%, 1999..................... 5,000,000 5,141,750
7 1/2%, 2000..................... 5,000,000 4,926,695
Heller Financial,
Floating Rate Notes, 6 5/8%, 1999.... 8,000,000 (a) 7,971,112
Household Finance,
Notes, 8 1/4%, 2005.................. 5,000,000 5,137,640
KfW International Finance,
Notes (Gtd. by KfW), 7%, 2013........ 8,000,000 7,168,032
--------------
73,775,597
--------------
INDUSTRIAL-14.5% American Home Products,
Notes, 7.90%, 2005................... 6,000,000 6,062,526
Archer-Daniels-Midland, Deb.:
10 1/4%, 2006........................ 3,000,000 3,558,900
8 1/8%, 2012......................... 10,000,000 10,107,610
8 3/8%, 2017......................... 5,000,000 5,174,370
Browning-Ferris Industries,
Sr. Notes, 7 7/8%, 2005.............. 3,500,000 3,532,753
Cincinnati Milacron,
Notes, 8 3/8%, 2004.................. 5,000,000 4,806,250
GATX Capital,
Medium-Term Notes, Ser. B, 9 1/2%, 2002 5,000,000 5,379,205
General Electric Capital:
Global Medium-Term Notes, Ser. A,
7.84%, 1997...................... 7,000,000 7,095,620
Sub. Notes (Gtd. by General Electric),
8 1/8%, 2012..................... 3,000,000 3,052,458
Harnischfeger Industries,
Deb., 8.90%, 2022.................... 5,000,000 5,202,865
McDonnell Douglas:
Deb., 9 3/4%, 2012................... 5,000,000 5,480,475
Notes, 8 1/4%, 2000.................. 5,000,000 5,086,020
Northrop Grumman,
Notes, 8 5/8%, 2004.................. 5,000,000 5,196,965
Time Warner Entertainment, L.P.,
Notes, 10.15%, 2012.................. 5,000,000 5,340,070
Union Carbide,
Deb., 8 3/4%, 2022................... 3,000,000 3,055,092
--------------
78,131,179
--------------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
INSURANCE-4.5% NAC Re,
Notes, 8%, 1999...................... $ 5,000,000 $ 4,991,600
Orion Capital,
Sr. Notes, 9 1/8%, 2002.............. 5,000,000 5,200,000
SunAmerica,
Notes, 9%, 1999...................... 5,000,000 5,203,340
USF&G,
Sr. Notes, 8 3/8%, 2001.............. 9,000,000 8,985,609
--------------
24,380,549
--------------
OIL AND GAS-2.4% Chevron Profit Sharing/Savings Plan Trust Fund,
Notes (Gtd. by Chevron), 8.11%, 2004 5,000,000 5,137,275
Maxus Energy,
Sinking Fund Deb., 11 1/4%, 2013..... 184,000 153,640
Occidental Petroleum,
Sr. Deb., 11 3/4%, 2011.............. 5,000,000 5,433,410
Parker-Hannifin,
Deb., 9 3/4%, 2021................... 2,000,000 2,222,016
--------------
12,946,341
--------------
TELEPHONE-.9% AT&T,
Deb., 8.35%, 2025.................... 5,000,000 5,055,580
--------------
TRANSPORTATION-1.1% Consolidated Rail,
Deb., 9 3/4%, 2020................... 5,000,000 5,765,540
--------------
UTILITIES-6.5% El Paso Natural Gas,
Deb., 8 5/8%, 2022................... 2,000,000 2,062,620
Idaho Power,
First Mortgage, 8 3/4%, 2027......... 7,000,000 7,070,980
Metropolitan Edison, Secured Medium-Term Notes,
Ser. B, 8.15%, 2023.................. 5,000,000 4,767,575
National Rural Utilities Cooperative Finance,
Collateral Trust Bonds, Ser. V, 9%, 2021 5,000,000 5,262,685
ONEOK,
Deb., 9 3/4%, 2020................... 3,000,000 3,335,847
South Carolina Electric & Gas,
First and Refunding Mortgage, 8 7/8%, 2021 7,000,000 7,273,581
Union Electric,
First Mortgage Bonds, 8 3/4%, 2021... 5,000,000 5,193,665
--------------
34,966,953
--------------
FOREIGN-6.0% Hydro-Quebec,
Deb (Gtd. by the Province of Quebec):
Ser. HS, 9.40%, 2021............. 5,000,000 5,408,400
Ser. GF, 8 7/8%, 2026............ 5,000,000 5,128,150
Ser. GQ, 8 1/4%, 2027............ 4,000,000 3,837,720
Midland Bank plc,
Sub. Notes, 8 5/8%, 2004............. 5,000,000 5,199,145
Province of Manitoba,
Deb., Ser CD, 9 1/4%, 2020........... 5,000,000 5,533,650
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
FOREIGN (CONTINUED) Province of Quebec,
Deb., 11%, 2015...................... $ 2,000,000 $ 2,276,580
Province of Saskatchewan,
Notes, 8%, 2004...................... 5,000,000 5,045,900
--------------
32,429,545
--------------
OTHER-8.1% Chevy Chase Master Credit Card Trust,
Floating Rate Asset Backed Ctfs.,
Ser. 1994-5, Cl. A, 6.335%, 2001..... 10,000,000 (a) 10,000,000
Collateralized Mortgage Obligation Trust 9,
Cl. C.........(Collateralized by
GNMA Pass-Through Ctfs.),
7 3/4%, 2012......................... 1,008,309 1,009,015
County of Contra Costa, California,
Taxable Pension Obligation Bonds,
1994 Ser. A, 6.85%, 2011............. 5,000,000 4,329,000
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 347,012 360,677
FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022. 6,175,006 6,047,646
P-B CMO Trust 89,
Collateralized Mortgage Obligation
(Collateralized by GNMA Pass-Through Ctfs.),
Ser. 10, Cl. 10-E, 10%, 2017......... 10,000,000 10,414,063
Rural Electric Cooperative Grantor Trust Ctfs.:
(Soyland), 9.70%, 2017............... 5,000,000 5,460,610
(Tex-La), 9.58%, 2019................ 4,000,000 4,375,216
Ryland Acceptance Corp. Four,
Collateralized Mortgage Obligation
(Collateralized by GNMA Pass-Through Ctfs.),
Ser. 37-B, 8.35%, 2012............... 1,914,836 1,927,033
--------------
43,923,260
--------------
U.S. GOVERNMENT AND
AGENCIES-26.5% FICO,
Deb., Ser. E, 9.65%, 2018............ 5,000,000 5,942,970
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation Ctfs.:
Ser. 1271, Cl. 1271-G, 7%, 2006.. 10,478,000 9,751,089
Ser. 1184, Cl. 1184-E, 7.80%, 2016 6,648,286 6,669,893
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 10,155,750
Ser. 1992-118, Cl. 118-PG, 7%, 2018 5,000,000 4,640,625
Ser. G94-2, Cl.B, 6%, 2020....... 16,000,000 14,145,000
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
-------------- --------------
U.S. GOVERNMENT AND
AGENCIES (CONTINUED) Government National Mortgage Association 1:
7%, 6/30/2006........................ $ 9,884,954 $ 9,257,853
8%, 8/15/2023........................ 16,812,468 16,665,360
7 1/2%, 10/15/2023................... 15,218,939 14,710,018
8 1/2%, 9/15/2024.................... 6,095,506 6,184,988
U.S. Treasury Bonds:
7 1/8%, 2/15/2023.................... 4,000,000 3,815,624
7 5/8%, 2/15/2025.................... 12,000,000 12,270,000
U.S. Treasury Notes,
7 1/2%, 2/15/2005.................... 28,000,000 28,586,264
--------------
142,795,434
--------------
TOTAL BONDS AND NOTES
(cost $523,453,759).................. $523,963,497
==============
SHORT-TERM INVESTMENT-1.5%
U.S. GOVERNMENT AGENCY; Federal Home Loan Bank,
6 1/4%, 4/3/1995
(cost $8,307,115).................... $ 8,310,000 $ 8,307,115
=============
TOTAL INVESTMENTS (cost $531,760,874)....................................... 98.7% $532,270,612
======== =============
CASH AND RECEIVABLES (NET).................................................. 1.3% $ 6,869,758
======== =============
NET ASSETS.................................................................. 100.0% $539,140,370
========= =============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable rate security-interest rate subject to periodic change.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1995
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $531,760,874)-see statement..................................... $532,270,612
Cash.................................................................... 1,061,359
Receivable for investment securities sold............................... 19,880,992
Interest receivable..................................................... 7,951,082
Receivable for subscriptions to Common Stock............................ 1,000
Prepaid expenses........................................................ 44,673
--------------
561,209,718
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 297,933
Payable for investment securities purchased............................. 19,881,288
Payable for Common Stock redeemed....................................... 1,747,670
Accrued expenses........................................................ 142,457 22,069,348
------------- --------------
NET ASSETS ................................................................ $539,140,370
==============
REPRESENTED BY:
Paid-in capital......................................................... $556,140,355
Accumulated undistributed investment income--net........................ 6,327,168
Accumulated net realized (loss) on investments.......................... (23,836,891)
Accumulated net unrealized appreciation on investments-Note 3........... 509,738
--------------
NET ASSETS at value applicable to 39,211,997 shares outstanding
(100 million shares of $.01 par value Common Stock authorized).......... $539,140,370
===============
NET ASSET VALUE, offering and redemption price per share
($539,140,370 / 39,211,997 shares)...................................... $13.75
========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1995
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $ 41,487,790
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,422,106
Shareholder servicing costs-Note 2(b)................................. 1,533,640
Custodian fees........................................................ 66,494
Prospectus and shareholders' reports.................................. 53,951
Professional fees..................................................... 47,232
Directors' fees and expenses-Note 2(c)................................ 38,258
Registration fees..................................................... 34,802
Miscellaneous......................................................... 11,657
--------------
TOTAL EXPENSES.................................................... 5,208,140
--------------
INVESTMENT INCOME-NET............................................. 36,279,650
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................. $(23,773,183)
Net unrealized appreciation on investments............................ 1,485,550
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (22,287,633)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 13,992,017
==============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
-----------------------------
1994 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 39,482,882 $ 36,279,650
Net realized gain (loss) on investments................................. 13,334,527 (23,773,183)
Net unrealized appreciation (depreciation) on investments for the year.. (34,122,473) 1,485,550
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 18,694,936 13,992,017
-------------- --------------
NET EQUALIZATION CREDITS (DEBITS)-Note 1(e)................................. 380,820 (278,844)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (39,448,092) (36,400,897)
Net realized gain on investments........................................ (23,253,146) (2,628,910)
-------------- --------------
TOTAL DIVIDENDS....................................................... (62,701,238) (39,029,807)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 311,162,989 183,480,472
Dividends reinvested.................................................... 53,245,642 32,865,953
Cost of shares redeemed................................................. (301,599,810) (245,504,043)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 62,808,821 (29,157,618)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 19,183,339 (54,474,252)
NET ASSETS:
Beginning of year....................................................... 574,431,283 593,614,622
-------------- --------------
End of year (including undistributed investment income-net:
$6,727,259 in 1994 and $6,327,168 in 1995)............................ $593,614,622 $539,140,370
============ ==============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 20,190,752 13,563,457
Shares issued for dividends reinvested.................................. 3,477,064 2,427,899
Shares redeemed......................................................... (19,598,158) (18,074,118)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 4,069,658 (2,082,762)
============ ===============
</TABLE>
See notes to financial statements.
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 the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
------------------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $13.45 $13.65 $14.35 $15.43 $14.38
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net....................... 1.15 1.11 1.05 .98 .94
Net realized and unrealized gain (loss) on investments .20 .70 1.29 (.46) (.56)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... 1.35 1.81 2.34 .52 .38
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net........ (1.15) (1.11) (1.05) (.99) (.94)
Dividends from net realized gain on investments -- -- (.21) (.58) (.07)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (1.15) (1.11) (1.26) (1.57) (1.01)
------- ------- ------- ------- -------
Net asset value, end of year................. $13.65 $14.35 $15.43 $14.38 $13.75
======= ======= ======== ========- =======
TOTAL INVESTMENT RETURN.......................... 10.60% 13.75% 17.09% 3.09% 3.01%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .85% .88% .93% .90% .99%
Ratio of net investment income to average net assets 8.59% 7.88% 7.07% 6.30% 6.89%
Portfolio Turnover Rate...................... 25.90% 66.82% 81.15% 93.67% 172.60%
Net Assets, end of year (000's Omitted)...... $339,935 $446,869 $574,431 $593,615 $539,140
</TABLE>
See notes to financial statements.
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, 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, it is the policy of the Fund not to distribute such gain.
On March 31, 1995, the Board of Directors declared a cash dividend of
$.083 per share from undistributed investment income-net, payable on April 3,
1995 (ex-dividend date), to shareholders of record as of the close of
business on March 31, 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.
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.
DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (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 year ended March 31, 1995.
(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 year ended
March 31, 1995, the Fund was charged an aggregate of $923,907 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.
The Chairman of the Board receives an additional 25% of such compensation.
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, 1995,
amounted to $858,237,984 and $869,672,697, respectively.
At March 31, 1995, accumulated net unrealized appreciation on investments
was $509,738, consisting of $9,538,597 gross unrealized appreciation and
$9,028,859 gross unrealized depreciation.
At March 31, 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.
REPORT OF ERNST & YOUNG LLP, 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, 1995, 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, 1995 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, 1995, 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 and Young Signature Logo)
New York, New York
May 1, 1995
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal Tax purposes the Fund hereby designates $.059 per share as a
long-term capital gain distribution of the $.149 per share paid on December
1, 1994.
(Dreyfus Lion 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. 084AR953
(Dreyfus Logo)
A Bonds Plus
Annual Report
March 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS A BONDS PLUS, INC. AND THE MERRILL
LYNCH CORPORATE MASTER INDEX (COAO)
EXHIBIT A:
__________________________________________________________
| | | |
| | MERRILL | DREYFUS |
| PERIOD | LYNCH CORPORATE | A BONDS |
| | MASTER INDEX (COAO)* | PLUS |
|-------------- | ----------------------|----------------|
| 3/31/85 | 10,000 | 10,000 |
| 3/31/86 | 13,310 | 12,943 |
| 3/31/87 | 14,549 | 14,152 |
| 3/31/88 | 15,190 | 14,327 |
| 3/31/89 | 16,180 | 15,046 |
| 3/31/90 | 18,101 | 16,650 |
| 3/31/91 | 20,305 | 18,414 |
| 3/31/92 | 22,999 | 20,945 |
| 3/31/93 | 26,542 | 24,526 |
| 3/31/94 | 27,514 | 25,284 |
| 3/31/95 | 28,966 | 26,044 |
|---------------------------------------------------------|
*Source: Merrill Lynch Pierce, Fenner and Smith Inc.
