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 annual reporting period ended March 31, 1996, your portfolio
earned a total return, including bond price changes and interest income, of
12.12%.* The Fund's total return of 12.12% for the last fiscal year ranked
number 11 out of 112 funds in the Corporate Debt A Rated category according
to Lipper Analytical Services, Inc. Income dividends of $.917 per share were
paid to shareholders. This is equivalent to an annualized distribution rate
per share of 6.32%.**
ECONOMIC REVIEW
In April, the U.S. economy embarked on its sixth year of expansion for
this business cycle. However, the previous year was one of slow economic
expansion with the picture remaining sluggish in the past six months. This
kept inflation moderate, but it also began to erode corporate profitability.
The combination of slow economic growth and low inflation helped pull
interest rates down sharply in 1995. While short-term interest rates remained
quite low until very recently, long-term rates have risen substantially since
January. Higher long-term rates reflect a shift in the market's view about
the direction of the economy. Long-term rates that rise above short-term
rates indicate a steep yield curve, which is favorable for sustained economic
growth. Hence, we believe that this business cycle could last still longer.
Although the economy surged 3.6% in the third quarter of 1995, it then
slowed to only 0.5% in the fourth quarter, and remains below trend in early
1996. Sequential events have made the economy volatile in the last six
months: the Boeing and GM strikes, the Federal shutdown and the severe winter
weather. These shocks created caution in key economic sectors. Since the
third quarter, real consumer spending has increased only 1.9%. Capital
spending slowed from its previously strong pace. And weak overseas economies
may now be curbing exports. On the plus side, job growth has been steady,
boosting real disposable income by 3.6% - almost double the rise in consumer
spending. New orders for capital goods are robust. Housing construction and
sales are at high levels. The uncertainty of demand nevertheless kept
producers cautious, leaving inventories quite lean in many economic sectors.
Low inventories relative to demand provide a force for sustained economic
growth and could spur the economy to somewhat faster growth in coming months.
Consumer price inflation held near its 3% trend in the last six months.
But evidence of pricing power is already emerging: lean inventories mean that
retailers needn't discount as much; tight housing markets have boosted
housing prices in some regions; consumer spending strength has bolstered
prices at hotels, airlines and cruise ships; high crude oil prices are
forcing gasoline prices upwards; and there is early evidence of rising real
wages. The market has only recently begun to focus on the potential for
rising price inflation if economic growth accelerates. Reported higher
inflation could justify a Federal Reserve Board policy switch towards
tightening.
Corporate profits fared well in the low inflation, slow growth
environment of 1995. Operating profits on S&P 500 companies rose an estimated
17% above 1994 levels, helped by the weak dollar and more corporate
restructuring. However, slower economic growth at home and declining growth
abroad began to take their toll on profits toward year-end. Current market
expectations are that profits will grow only 4.2% in 1996, tempered by a slow
economy and by the ending of this cycle's phase of corporate restructuring.
Key determinants of this year's ultimate profit growth will be whether the
U.S. economy can grow faster than the 2% expected by the market, how soon
foreign economies recover and whether domestic companies will be able to raise
prices.
Interest rates fell considerably in 1995, but have moved upwards since
January. Short-term rates have risen marginally, from 4.76% to 5.00%, as
expectations for further easing by the Federal Reserve are now disappearing.
Long-term bond yields have risen more substantially, from a low of 5.96% to
near 6.90%. There are two key reasons for higher long-term rates. First, the
economy is proving fundamentally strong enough to survive the shocks of
recent months. And second, hopes for a balanced budget agreement this year
are dampened, making this a contentious political issue not likely to be
resolved until election time.
We believe that the steeper yield curve that has developed in recent
months bodes well for sustained economic growth. In addition, the situation
of low inventories could spur a period of faster economic growth in coming
months. This raises a key concern of whether faster economic growth would
ignite inflation this time around.
THE MARKET AND THE PORTFOLIO
During the last fiscal year we have continued to adjust the portfolio in
an attempt to find value on a relative basis in those sectors that are cheap.
In doing so, we eliminated most of our holdings in the collateralized
mortgage obligation (CMO) market, which represented 11% of our holdings. We
further eliminated our longer-term Treasury notes and bonds, also
representing approximately 8% of our holdings. With much of the proceeds from
our CMO sales and Treasury sales, we increased our holdings in GNMAs. These
holdings now represent 24% of the Fund's total holdings. Our GNMA coupon
holdings are in the 6 1/2% coupon area to the 8 1/2% coupon area. The
maturities in GNMAs are15 years and 30 years, with average lives of these
securities ranging from 6 years to 10 years. It is the high yield and
intermediate maturities of these securities that we find extremely
attractive. In addition, we increased holdings by about 2% in various General
Electric and General Motors securities. We continue to like the Finance and
Banking sectors. Currently, the portfolio holds 10% in Banking and nearly 15%
in Finance.
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.
Very truly yours,
[Garitt A. Kono signature logo]
Garitt A. Kono
Portfolio Manager
April 17, 1996
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
paid from net investment income during the period, divided by the net asset
value per share at the end of the period.
DREYFUS A BONDS PLUS, INC. MARCH 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS A BONDS PLUS,
INC. AND
THE MERRILL LYNCH CORPORATE MASTER INDEX
[Exhibit A:
Dollars
$24,441
Merrill Lynch Corporate
Master Index*
$22,560
Dreyfus
A Bonds Plus, Inc.
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
MARCH 31, 1996 MARCH 31, 1996 MARCH 31, 1996
_________ _________ _________
12.12% 9.66% 8.48%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus A Bonds Plus,
Inc. on 3/31/86 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 shown in the line graph takes into account all
applicable fees and expenses. The Merrill Lynch Corporate Master Index is an
unmanaged 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 applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1996
PRINCIPAL
BONDS AND NOTES-89.9% AMOUNT VALUE
_______ _______
<S> <C> <C>
BANKING-10.1%............ ABN AMRO Bank N.V.,
Sub. Notes, 7%, 2008................. $ 10,000,000 $ 9,955,660
Bank of New York,
Sub. Notes, 8 1/2%, 2004............. 5,000,000 5,514,590
BankAmerica,
Sub. Notes, 6.20%, 2006.............. 10,000,000 9,439,370
Chemical Banking,
Sub. Deb., 7 7/8%, 2006.............. 5,000,000 5,315,815
Citicorp:
Global Medium-Term Sr. Notes,
Ser. C, 8 5/8%, 2004 5,000,000 5,300,300
Sub. Notes, 7 1/8%, 2005............. 10,000,000 10,106,480
First Chicago,
Sub. Notes, 8 1/4%, 2002............. 8,500,000 9,139,770
NCNB,
Sub. Notes, 9 3/8%, 2009............. 5,000,000 5,922,565
_______
60,694,550
_______
CHEMICALS-.4%............. Hoechst Celanese,
Notes, 9 5/8%, 1999.................. 2,000,000 2,097,920
_______
CONSUMER-1.0%............... McCormick & Co.,
Notes, 8.95%, 2001................... 2,000,000 2,197,238
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 3,662,121
_______
5,859,359
_______
ENTERTAINMENT-3.6% News America Holdings (Gtd. by News),
Sr. Notes, 8 1/2%, 2005.............. 5,000,000 5,386,480
Time Warner Entertainment, L.P.,
Notes, 10.15%, 2012.................. 5,000,000 5,945,595
Walt Disney,
Sr. Notes, 6 3/8%, 2001.............. 10,000,000 9,976,480
_______
21,308,555
_______
FINANCE-15.4% Associates Corp. of North America:
Medium-Term Sr. Notes,
Ser. G., 8 1/4%, 2004 5,000,000 5,390,950
Sr. Notes, 6%, 2002.................. 5,000,000 4,806,015
Avco Financial Services,
Sr. Notes, 6.35%, 2000............... 6,000,000 5,953,452
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_______ _______
FINANCE (CONTINUED) Commercial Credit, Notes:
5 7/8%, 2003......................... $ 10,000,000 $ 9,551,900
7 3/4%, 2005......................... 7,000,000 7,374,815
10%, 2008............................ 2,000,000 2,461,138
Ford Motor Credit:
Medium-Term Notes:
6.56%, 2001 5,000,000 5,006,250
9.03%, 2009 9,000,000 10,053,846
Notes:
6.80%, 1997 7,000,000 7,077,875
6 1/4%, 2005 13,000,000 12,301,250
General Motors Acceptance:
Medium-Term Notes:
8 1/2%, 1999 5,000,000 5,324,030
7 1/2%, 2000 5,000,000 5,172,915
Notes, 8 3/4%, 1997.................. 6,000,000 (a) 6,680,916
Household Finance,
Notes, 7.65%, 2007................... 5,000,000 5,237,170
_______
92,392,522
_______
FINANCE/ASSET BACKED-7.2% Chase Manhattan Credit Card Master Trust,
Floating Rate Asset Backed Ctfs.,
Ser. 1996-1, Cl. A, 5.485%, 2002.............. 25,000,000 (b) 24,992,187
Chevy Chase Master Credit Card Trust II,
Floating Rate Asset Backed Ctfs.,
Ser. 1995-A, Cl. A, 5 5/8%, 2005.............. 5,000,000 (b) 5,000,000
MMCA Auto Owner Trust 1995-1,
Asset Backed Notes, 5.70%, 2000............... 13,383,198 13,263,821
_______
43,256,008
_______
INDUSTRIAL-6.5%...... Archer-Daniels-Midland,
Deb., 10 1/4%, 2006.................. 3,000,000 3,754,740
Emerson Electric,
Notes, 6.30%, 2005................... 4,000,000 3,895,924
GATX Capital,
Medium-Term Notes, Ser. B, 9 1/2%, 2002....... 5,000,000 5,618,775
General Electric Capital:
7 7/8%, 2006......................... 6,000,000 6,476,292
8 1/8%, 2012......................... 3,000,000 3,253,998
Notes, 8 1/2%, 2008.................. 6,000,000 6,759,936
McDonnell Douglas,
Deb., 9 3/4%, 2012................... 5,000,000 6,054,315
Union Carbide,
Deb., 8 3/4%, 2022................... 3,000,000 3,140,808
_______
38,954,788
_______
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_______ _______
INSURANCE-3.3% GEICO,
Notes, 7 1/2%, 2005.................. $ 3,500,000 $ 3,652,453
NAC Re,
Notes, 8%, 1999...................... 5,000,000 5,176,190
Orion Capital,
Sr. Notes, 9 1/8%, 2002.............. 5,000,000 5,463,020
SunAmerica,
Notes, 9%, 1999...................... 5,000,000 5,310,190
_______
19,601,853
_______
OIL AND GAS-2.3% Chevron Profit Sharing/Savings Plan Trust Fund,
Notes (Gtd. by Chevron), 8.11%, 2004.......... 5,000,000 5,325,610
Maxus Energy,
Sinking Fund Deb., 11 1/4%, 2013.............. 184,000 191,360
Parker-Hannifin,
Deb., 9 3/4%, 2021................... 2,000,000 2,305,112
Phillips Petroleum,
Notes, 9 3/8%, 2011.................. 5,000,000 5,920,390
_______
13,742,472
_______
TELEPHONE-.9% AT&T,
Deb., 8.35%, 2025.................... 5,000,000 5,316,730
_______
UTILITIES-5.6% Idaho Power,
First Mortgage, 8 3/4%, 2027.................. 7,000,000 7,408,940
ONEOK,
Deb., 9 3/4%, 2020................... 3,000,000 3,421,386
Rural Electric Cooperative Grantor Trust Ctfs.:
(Soyland), 9.70%, 2017............... 5,000,000 5,450,430
(Tex-La), 9.58%, 2019................ 4,000,000 4,396,656
South Carolina Electric & Gas,
First and Refunding Mortgage, 8 7/8%, 2021 7,000,000 7,583,457
Union Electric,
First Mortgage Bonds, 8 3/4%, 2021............ 5,000,000 5,454,985
_______
33,715,854
_______
FOREIGN-5.6% Amoco Argentina Oil,
Gtd. Negotiable Obligations, 6 5/8% 2005...... 5,000,000 4,973,810
BCH Cayman Islands Ltd.,
Sub. Notes (Gtd. by Banco Central
Hispanoamericano S.A., New York Branch),
6 1/2%, 2006......................... 5,000,000 4,731,640
Midland Bank plc,
Sub. Notes, 8 5/8%, 2004............. 5,000,000 5,514,025
New Zealand, Notes:
10 5/8%, 2005........................ 5,000,000 6,374,155
8 3/4%, 2016......................... 5,000,000 5,820,565
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_______ _______
FOREIGN (CONTINUED) Province of Manitoba,
Deb., Ser CD, 9 1/4%, 2020........... $ 5,000,000 $ 6,043,200
_______
33,457,395
_______
MORTGAGE OBLIGATIONS-3.8% Collateralized Mortgage Obligation Trust 9,
Cl. C (Collateralized by
GNMA Pass-Through Ctfs.),
7 3/4%, 2012......................... 681,060 691,875
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....... 266,501 284,954
FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022.......... 6,092,100 6,148,208
Nomura Asset Securities,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1996-MD V, Cl. A-1B, 7.12%, 2036.......... 9,000,000 8,997,188
Ryland Acceptance Corp. Four,
Collateralized Mortgage Obligation
(Collateralized by GNMA Pass-Through Ctfs.),
Ser. 37-B, 8.35%, 2012............... 1,275,786 1,294,311
Structured Asset Securities,
Multiclass Pass-Through Ctfs.,
Ser. 1996-CLF, Cl. A-1C, 5.944%, 2028......... 5,680,000 5,530,900
_______
22,947,436
_______
U.S. GOVERNMENT
AND AGENCIES-24.2% Federal Home Loan Mortgage Corp.,
Multiclass Mortgage Participation Ctfs.,
Ser. 1184, Cl. 1184-E, 7.80%, 2016............ 1,427,479 1,426,580
Government National Mortgage Association I:
6 1/2%, 4/15/2009.................... 34,643,779 34,210,732
7%, 6/15/2008 - 7/15/2023............ 22,977,898 22,875,553
7 1/2%, 3/15/2007 - 5/15/2024................. 60,885,375 61,477,607
8%, 8/15/2023........................ 14,440,160 14,805,641
8 1/2%, 9/15/2024.................... 4,980,049 5,199,471
Government National Mortgage Association II,
7 1/2%, 12/15/2029................... 4,708,937 4,719,202
_______
144,714,786
_______
TOTAL BONDS AND NOTES
(cost $527,777,322).................. $538,060,228
=======
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
SHORT-TERM INVESTMENT-9.2% AMOUNT VALUE
_______ _______
U.S. GOVERNMENT AGENCY; Federal Home Loan Bank,
5.30%, 4/1/1996
(cost $54,940,000)................... $ 54,940,000 $ 54,940,000
=======
TOTAL INVESTMENTS (cost $582,717,322) ............................... 99.1% $593,000,228
======= =======
CASH AND RECEIVABLES (NET)................................................. .9% $ 5,551,025
======= =======
NET ASSETS.................................................................. 100.0% $598,551,253
======= =======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Reflects date security can be redeemed at holder's option; the stated
maturity date is 7/15/2005.
(b) Variable rate security-interest subject to periodic change.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $582,717,322)-see statement..................................... $593,000,228
Cash.................................................................... 1,715,509
Receivable for investment securities sold............................... 12,175,363
Interest receivable..................................................... 7,006,846
Receivable for subscriptions to Common Stock............................ 207,689
Prepaid expenses........................................................ 50,324
_______
614,155,959
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 339,459
Payable for investment securities purchased............................. 14,029,905
Payable for Common Stock redeemed....................................... 1,062,194
Accrued expenses........................................................ 173,148 15,604,706
______ ______
NET ASSETS.................................................................. $598,551,253
=======
REPRESENTED BY:
Paid-in capital......................................................... $587,142,289
Accumulated undistributed investment income-net......................... 6,276,512
Accumulated net realized (loss) on investments.......................... (5,150,454)
Accumulated net unrealized appreciation on investments-Note 3........... 10,282,906
_______
NET ASSETS at value applicable to 41,373,644 shares outstanding
(100 million shares of $.01 par value Common Stock authorized).......... $598,551,253
=======
NET ASSET VALUE, offering and redemption price per share
($598,551,253 / 41,373,644 shares)...................................... $14.47
=======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $42,349,172
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,798,630
Shareholder servicing costs-Note 2(b)................................. 1,373,129
Custodian fees........................................................ 67,917
Directors' fees and expenses-Note 2(c)................................ 53,095
Professional fees..................................................... 52,017
Prospectus and shareholders' reports.................................. 47,191
Registration fees..................................................... 31,089
Miscellaneous......................................................... 9,264
_______
TOTAL EXPENSES.................................................. 5,432,332
_______
INVESTMENT INCOME-NET........................................... 36,916,840
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $18,686,437
Net unrealized appreciation on investments.............................. 9,773,168
_______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 28,459,605
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $65,376,445
=======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
__________________________________
1995 1996
________ ________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 36,279,650 $ 36,916,840
Net realized gain (loss) on investments................................. (23,773,183) 18,686,437
Net unrealized appreciation on investments for the year................. 1,485,550 9,773,168
________ ________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 13,992,017 65,376,445
________ ________
NET EQUALIZATION CREDITS (DEBITS)-Note 1(e)................................. (278,844) 164,551
________ ________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (36,400,897) (37,132,047)
Net realized gain on investments........................................ (2,628,910) _
________ ________
TOTAL DIVIDENDS....................................................... (39,029,807) (37,132,047)
________ ________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 183,480,472 194,660,390
Dividends reinvested.................................................... 32,865,953 31,821,743
Cost of shares redeemed................................................. (245,504,043) (195,480,199)
________ ________
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... (29,157,618) 31,001,934
________ ________
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... (54,474,252) 59,410,883
NET ASSETS:
Beginning of year....................................................... 593,614,622 539,140,370
________ ________
End of year (including undistributed investment income-net:
$6,327,168 in 1995 and $6,276,512 in 1996)............................ $ 539,140,370 $ 598,551,253
======== ========
SHARES SHARES
________ ________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 13,563,457 13,495,937
Shares issued for dividends reinvested.................................. 2,427,899 2,215,494
Shares redeemed......................................................... (18,074,118) (13,549,784)
________ ________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... (2,082,762) 2,161,647
======== ========
See 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 year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED MARCH 31,
___________________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $13.65 $14.35 $15.43 $14.38 $13.75
____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net........................ 1.11 1.05 .98 .94 .92
Net realized and unrealized gain (loss)
on investments............................. .70 1.29 (.46) (.56) .73
____ ____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS........... 1.81 2.34 .52 .38 1.65
____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net......... (1.11) (1.05) (.99) (.94) (.93)
Dividends from net realized gain on investments - (.21) (.58) (.07) -
____ ____ ____ ____ ____
TOTAL DISTRIBUTIONS........................ (1.11) (1.26) (1.57) (1.01) (.93)
____ ____ ____ ____ ____
Net asset value, end of year................. $14.35 $15.43 $14.38 $13.75 $14.47
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 13.75% 17.09% 3.09% 3.01% 12.12%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .88% .93% .90% .99% .93%
Ratio of net investment income to average net assets 7.88% 7.07% 6.30% 6.89% 6.32%
Portfolio Turnover Rate...................... 66.82% 81.15% 93.67% 172.60% 165.50%
Net Assets, end of year (000's Omitted)...... $446,869 $574,431 $593,615 $539,140 $598,551
See notes to financial statements.
</TABLE>
DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus A Bonds Plus, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. The Fund's investment objective is to provide investors
with the maximum amount of current income to the extent consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. (the "Distributor") acts as the distributor of the Fund's shares, which
are sold to the public without a sales charge.
(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 March 29, 1996, the Board of Directors declared a cash dividend of
$.073 per share from undistributed investment income-net, payable on April 1,
1996 (ex-dividend date), to shareholders of record as of the close of
business on March 29, 1996.
(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 $5,092,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 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 of 1% of the value
of the Fund's average daily 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 11\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, 1996.
(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 year ended March 31, 1996, the Fund was charged an aggregate of
$803,911 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $90,704 for the period from
December 1, 1995 through March 31, 1996.
(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, excluding short-term securities, during the year ended
March 31, 1996, amounted to $894,966,203 and $909,455,575, respectively.
At March 31, 1996, accumulated net unrealized appreciation on investments
was $10,282,906, consisting of $15,650,145 gross unrealized appreciation and
$5,367,239 gross unrealized depreciation.
At March 31, 1996, 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, 1996, 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, 1996 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, 1996, 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 LLP signature logo]
New York, New York
May 1, 1996
[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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 084AR963
[Dreyfus logo]
A Bonds Plus
Annual Report
March 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS A BONDS PLUS, INC. AND THE MERRILL
LYNCH CORPORATE MASTER INDEX
EXHIBIT A:
__________________________________________________________
| | | |
| | MERRILL | DREYFUS |
| PERIOD | LYNCH CORPORATE | A BONDS |
| | MASTER INDEX * | PLUS, INC. |
|-------------- | ----------------------|----------------|
| 3/31/86 | 10,000 | 10,000 |
| 3/31/87 | 10,931 | 10,934 |
| 3/31/88 | 11,413 | 11,069 |
| 3/31/89 | 12,156 | 11,625 |
| 3/31/90 | 13,600 | 12,864 |
| 3/31/91 | 15,255 | 14,227 |
| 3/31/92 | 17,280 | 16,182 |
| 3/31/93 | 19,942 | 18,949 |
| 3/31/94 | 20,672 | 19,534 |
| 3/31/95 | 21,763 | 20,122 |
| 3/31/96 | 24,441 | 22,560 |
|---------------------------------------------------------|
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
