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, 1996, your Fund
earned a total return, including bond price changes and interest income, of
1.83% .* Income dividends of $.438 per share were declared to shareholders.
This is equivalent to an annualized distribution rate per share of 6.12%. **
THE ECONOMY
Low inflation in the face of ongoing strong growth in new jobs and low
unemployment remained the big economic story over the reporting period. On
September 24, the Federal Reserve Board's Open Market Committee ("the Fed")
again decided against raising interest rates. Despite what appeared to be a
sharp split within the Fed, the Central Bank kept the Fed Funds rate at
5.25%. (A news leak reported that eight of the 12 presidents of the regional
Federal Reserve Banks were concerned about inflation and leaning toward an
increase in rates.)
The potential resurgence in inflation has been a primary concern of the
Fed as the economic expansion continues. Yet inflation has remained subdued.
The Consumer Price Index has risen just 2.9% over the past twelve months.
Furthermore, indications of inflation at crude, intermediate and finished
goods levels, as measured by the Producer Price Index, remained well-behaved.
There appear to be few signs of inflation in the production pipeline.
The past inverse relationship between unemployment and inflation has so
far not prevailed during this economic expansion. Most recently, the
unemployment rate fell to 5.1%, its lowest level in seven years. Job growth
has continued to be robust. Yet despite signs of a tightening labor market,
wage gains, considered by many economists to be a harbinger of future
inflation, remained modest, as have virtually all measures of inflation.
Buoyed by such good news, consumers remained confident. The Conference
Board's Consumer Confidence Index has risen since the beginning of the year
and was near a six-year high by the end of the reporting period. Yet, there
were some signs that consumer spending was moderating from its strong pace in
the first half of the year. Retail sales remained subdued all summer.
Consumer borrowing rose over the reporting period, continuing the three-year
trend of steady increases in credit.
Industrial production has risen consistently since February and
businesses showed some signs of inventory accumulation by late summer.
Corporate pricing power still seems to be in check. In a survey of member
corporations released in mid-September, the National Federation of
Independent Business reported that only 20% of its respondents planned to
increase prices in coming months.
Despite all these favorable developments, we are alert for signs of
potential economic excess that could result in a resurgence in inflation.
THE MARKET AND THE PORTFOLIO
In the corporate bond market, spreads have continued to narrow. Simply
stated, the yield differential between corporate bond securities and Treasury
securities is less now than six months ago. Another interesting occurrence is
the fact that lower-rated corporate debt yields have compressed compared to
higher quality yields. This narrowing of the quality spread makes it the
narrowest it has been since 1989. Yet another interesting aspect of the
corporate bond market is that nearly all newly issued securities, whether
they are of high, medium or low quality, are in extremely good demand by
investment managers.
As a result of the above considerations, we are continuing to maintain a
neutral to slightly defensive posture in the portfolio. Our durations are
currently two-tenths of a year shorter than the Salomon Brothers Broad
Investment Grade Index. The Portfolio continues to be of high quality with an
average rating of AA.
During the last six months, we sold our entertainment holdings, which
represented 3.6% of the Portfolio, along with most of our Ford Motor Credit
holdings, which respresented about a 5% position. Those assets were
redeployed in names such as the Canada Government, Union Bank of Switzerland
and ANZ Banking Group, along with a floating rate issue for United Mexican
States.
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 greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Garitt A. Kono signature logo]
Garitt A. Kono
Portfolio Manager
October 18, 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.
<TABLE>
<CAPTION>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-91.3% AMOUNT VALUE
------- -------
<S> <C> <C>
BANKING-13.8% ABN AMRO Bank N.V.,
Sub. Notes, 7.55%, 2006............. $ 10,000,000 $ 10,175,380
ANZ Banking Group Ltd.,
Sub. Notes, 7.55%, 2006............. 9,000,000 9,156,654
BankAmerica,
Sub. Notes, 6.20%, 2006............. 10,000,000 9,217,620
Chase Manhattan,
Sub. Deb., 7 1/8%, 2005............. 5,000,000 4,937,255
Citicorp:
Global Medium-Term Sr. Notes,
. Ser. C, 8 5/8%, 2004 5,000,000 5,241,875
Sub. Notes, 7 1/8%, 2005............ 10,000,000 9,862,030
First Chicago,
Sub. Notes, 8 1/4%, 2002............ 8,500,000 8,995,270
Midland Bank plc,
Sub. Notes:
8 5/8%, 2004........................ 5,000,000 5,411,625
7 5/8%, 2006........................ 5,000,000 5,088,820
NCNB, Sub. Notes, 9 3/8%, 2009...... 5,000,000 5,756,315
Union Bank of Switzerland,
Sub. Notes, 7 1/4%, 2006............ 10,000,000 10,043,020
-------
83,885,864
-------
CHEMICALS-.3% Hoechst Celanese,
Notes, 9 5/8%, 1999................. 2,000,000 2,057,328
-------
CONSUMER-.9% McCormick & Co.,
Notes, 8.95%, 2001.................. 2,000,000 2,161,462
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 3,573,333
-------
5,734,795
-------
FINANCE-9.1% Associates Corp. of North America:
Medium-Term Sr. Notes, Ser. G., 8 1/4%, 2004 5,000,000 5,319,080
Sr. Notes, 6 7/8%, 2003............. 9,000,000 8,937,252
Avco Financial Services,
Sr. Notes, 6.35%, 2000.............. 6,000,000 5,914,896
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
------- -------
FINANCE (CONTINUED) Commercial Credit:
Deb., 10%, 2008..................... $ 2,000,000 $ 2,400,816
Notes, 7 3/4%, 2005................. 7,000,000 7,225,295
Ford Motor Credit,
Medium-Term Notes, 6.56%, 2001...... 5,000,000 4,925,600
General Motors Acceptance:
Medium-Term Notes:
7.85%, 1997...................... 4,000,000 4,074,460
8 1/2%, 1999...................... 5,000,000 5,258,270
6.80%, 2001...................... 5,000,000 4,978,895
Notes, 8 3/4%, 1997................. 6,000,000 (a) 6,503,142
-------
55,537,706
-------
FINANCE/ASSET BACKED-5.7% AT&T Universal Card Master Trust,
Floating Rate Asset Backed Ctfs.,
Ser. 1996-2, Cl. A, 5.633%, 2001.... 10,000,000 (b) 10,000,000
Chase Manhattan Credit Card Master Trust,
Floating Rate Asset Backed Ctfs.,
Ser. 1996-1, Cl. A, 5.614%, 2002.... 15,000,000 (b) 15,000,000
MMCA Auto Owner Trust 1995-1,
Asset Backed Notes, 5.70%, 2000..... 9,734,173 9,703,219
-------
34,703,219
-------
INDUSTRIAL-8.3% Archer-Daniels-Midland,
Deb., 10 1/4%, 2006................. 3,000,000 3,641,448
GATX Capital,
Medium-Term Notes, Ser. B, 9 1/2%,
2002.............................. 5,000,000 5,522,965
General Electric Capital:
Deb., 8 1/2%, 2008................ 6,000,000 6,624,822
Gtd. Sub. Notes:
7 7/8%, 2006...................... 6,000,000 6,315,108
8 1/8%, 2012...................... 3,000,000 3,223,527
Lockheed Martin,
Notes (Gtd. by Lockheed Martin
Tactical Systems):
6.55%, 1999...................... 10,000,000 10,006,110
6.85%, 2001...................... 10,000,000 9,984,420
Parker-Hannifin,
Deb., 9 3/4%, 2021.................. 2,000,000 2,216,790
Union Carbide,
Deb., 8 3/4%, 2022.................. 3,000,000 3,127,569
-------
50,662,759
-------
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
------- -------
INSURANCE-3.2% GEICO,
Notes, 7 1/2%, 2005................. $ 3,500,000 $ 3,568,089
NAC Re,
Notes, 8%, 1999..................... 5,000,000 5,160,060
Orion Capital,
Sr. Notes, 9 1/8%, 2002............. 5,000,000 5,440,570
SunAmerica,
Notes, 9%, 1999..................... 5,000,000 5,233,385
-------
19,402,104
-------
OIL AND GAS-1.9% Chevron Profit Sharing/Savings Plan Trust Fund,
Notes (Gtd. by Chevron), 8.11%,
2004.............................. 5,000,000 5,288,585
Maxus Energy, Sinking Fund Deb.,
11 1/4%, 2013..................... 184,000 189,520
Phillips Petroleum,
Notes, 9 3/8%, 2011................. 5,000,000 5,839,510
-------
11,317,615
-------
TECHNOLOGY-1.7% Lucent Technologies,
Notes, 6.90%, 2001.................. 10,000,000 10,048,000
-------
TELEPHONE-.8% BellSouth Telecommunications,
Deb., 7 5/8%, 2035.................. 5,000,000 4,898,070
-------
UTILITIES-4.2% Idaho Power,
First Mortgage, 8 3/4%, 2027........ 7,000,000 7,393,008
ONEOK,
Deb., 9 3/4%, 2020.................. 3,000,000 3,306,747
Rural Electric Cooperative Grantor Trust Ctfs.,
(Tex-La), 9.58%, 2019............... 4,000,000 4,333,052
National Rural Utilities Cooperative Finance,
Collateral Trust Bonds, 7.30%, 2006. 5,000,000 5,039,705
Union Electric,
First Mortgage Bonds, 8 3/4%, 2021.. 5,000,000 5,424,660
-------
25,497,172
-------
FOREIGN-5.8% Canada Government
Bonds, 6 3/4%, 2006................. 10,000,000 9,856,300
New Zealand Government
Notes, 10 5/8%, 2005................ 5,000,000 6,217,160
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
------- -------
FOREIGN (CONTINUED) Province of Manitoba,
Deb., Ser CD, 9 1/4%, 2020.......... $ 5,000,000 $ 5,962,950
United Mexican States,
Floating Rate Notes, 7 11/16%, 2001. 13,000,000(b,c) 13,054,600
-------
35,091,010
-------
MORTGAGE OBLIGATIONS-3.3% Collateralized Mortgage Obligation Trust 9,
Cl. C (Collateralized by
GNMA Pass-Through Ctfs.),
7 3/4%, 2012........................ 488,173 494,554
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 235,126 248,709
FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022 6,055,684 6,038,653
Resolution Trust,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1995-C1, 6.55%, 2027........... 12,371,261 12,290,075
Ryland Acceptance Corp. Four,
Collateralized Mortgage Obligation
(Collateralized by GNMA Pass-Through Ctfs.),
Ser. 37-B, 8.35%, 2012.............. 985,403 1,001,653
-------
20,073,644
-------
U.S. GOVERNMENT
AND AGENCIES-32.3% U.S. Treasury Notes:
6 1/2%, 8/31/2001................... 5,000,000 5,003,907
7%, 7/15/2006....................... 15,000,000 15,314,063
Government National Mortgage Association I:
6 1/2%, 4/15/2009................... 31,934,421 31,275,614
7%, 6/15/2008 - 7/15/2023........... 21,400,223 21,104,185
7 1/2%, 3/15/2007 - 12/15/2029...... 110,226,470 109,674,995
8%, 8/15/2023....................... 13,787,957 13,999,051
-------
196,371,815
-------
TOTAL BONDS AND NOTES
(cost $551,687,936)................. $555,281,101
=======
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-6.9% AMOUNT VALUE
------- -------
U.S. GOVERNMENT AGENCY; Federal Home Loan Banks,
5.70%, 10/1/1996
(cost $42,320,000).................. $ 42,320,000 $ 42,320,000
=======
TOTAL INVESTMENTS (cost $594,007,936) ................................ 98.2% $597,601,101
====== ============
CASH AND RECEIVABLES (NET) ........................................ 1.8% $ 10,742,838
====== ============
NET ASSETS................................................................. 100.0% $608,343,939
====== ============
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.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September
30, 1996, this security amounted to $13,054,600 or 2.1% of net assets.
See independent accountants' review report and notes to financial statements.
DREYFUS A BONDS PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996 (UNAUDITED)
ASSETS:
Investments in securities, at value
(cost $594,007,936)-see statement..................................... $597,601,101
Cash.................................................................... 4,810,421
Interest receivable..................................................... 6,907,040
Receivable for subscriptions to Common Stock............................ 187,052
Prepaid expenses........................................................ 22,920
-------
609,528,534
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $361,145
Payable for Common Stock redeemed....................................... 715,683
Accrued expenses ....................................................... 107,767 1,184,595
------- -------
NET ASSETS.................................................................. $608,343,939
=======
REPRESENTED BY:
Paid-in capital......................................................... $604,331,687
Accumulated undistributed investment income-net......................... 6,497,089
Accumulated net realized (loss) on investments.......................... (6,078,002)
Accumulated net unrealized appreciation on investments-Note 4........... 3,593,165
-------
NET ASSETS at value applicable to 42,587,188 shares outstanding
(100 million shares of $.01 par value Common Stock authorized).......... $608,343,939
=======
NET ASSET VALUE, offering and redemption price per share
($608,343,939 / 42,587,188 shares)...................................... $14.28
===
See independent accountants' review report and notes to financial statements.
DREYFUS A BONDS PLUS, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $21,095,504
EXPENSES:
Management fee-Note 3(a).............................................. $ 1,937,139
Shareholder servicing costs-Note 3(b)................................. 735,814
Custodian fees-Note 3(b).............................................. 28,188
Professional fees..................................................... 26,319
Directors' fees and expenses-Note 3(c)................................ 23,159
Registration fees..................................................... 21,886
Prospectus and shareholders' reports.................................. 10,759
Miscellaneous......................................................... 3,689
------
TOTAL EXPENSES.................................................... 2,786,953
------
INVESTMENT INCOME-NET............................................. 18,308,551
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS-Note 4:
Net realized (loss) on investments...................................... $ (927,548)
Net unrealized (depreciation) on investments............................ (6,689,741)
------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (7,617,289)
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $10,691,262
======
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, 1996
1996 (UNAUDITED)
-------- -----------
OPERATIONS:
Investment income-net.............................................. $ 36,916,840 $ 18,308,551
Net realized gain (loss) on investments............................ 18,686,437 (927,548)
Net unrealized appreciation (depreciation) on investments for the period 9,773,168 (6,689,741)
------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. 65,376,445 10,691,262
------- -------
NET EQUALIZATION CREDITS-Note 1(e)..................................... 164,551 124,639
------- -------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.............................................. (37,132,047) (18,212,613)
------- -------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold...................................... 194,660,390 94,495,056
Dividends reinvested............................................... 31,821,743 15,547,455
Cost of shares redeemed............................................ (195,480,199) (92,853,113)
------- -------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........... 31,001,934 17,189,398
------- -------
TOTAL INCREASE IN NET ASSETS................................. 59,410,883 9,792,686
NET ASSETS:
Beginning of period................................................ 539,140,370 598,551,253
------- -------
End of period (including undistributed investment income-net:
$6,276,512 and $6,497,089, respectively)......................... $ 598,551,253 $ 608,343,939
======= =======
SHARES SHARES
------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................ 13,495,937 6,695,875
Shares issued for dividends reinvested............................. 2,215,494 1,100,785
Shares redeemed.................................................... (13,549,784) (6,583,116)
------- -------
NET INCREASE IN SHARES OUTSTANDING............................... 2,161,647 1,213,544
======= =======
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, 1996
--------------------------------------------------
PER SHARE DATA: 1992 1993 1994 1995 1996 (UNAUDITED)
---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.65 $14.35 $15.43 $14.38 $13.75 $14.47
---- ---- ---- ---- ---- ----
INVESTMENT OPERATIONS:
Investment income-net.............. 1.11 1.05 .98 .94 .92 .44
Net realized and unrealized gain (loss)
on investments................... .70 1.29 (.46) (.56) .73 (.19)
---- ---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS. 1.81 2.34 .52 .38 1.65 .25
---- ---- ---- ---- ---- ----
DISTRIBUTIONS:
Dividends from investment income-net (1.11) (1.05) (.99) (.94) (.93) (.44)
Dividends from net realized gain
on investments................... - (.21) (.58) (.07) - -
---- ---- ---- ---- ---- ----
TOTAL DISTRIBUTIONS.............. (1.11) (1.26) (1.57) (1.01) (.93) (.44)
---- ---- ---- ---- ---- ----
Net asset value, end of period..... $14.35 $15.43 $14.38 $13.75 $14.47 $14.28
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................ 13.75% 17.09% 3.09% 3.01% 12.12% 3.65%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .88% .93% .90% .99% .93% .94%(1)
Ratio of net investment income to
average net assets............... 7.88% 7.07% 6.30% 6.89% 6.32% 6.14%(1)
Portfolio Turnover Rate............ 66.82% 81.15% 93.67% 172.60% 165.50% 64.52%(2)
Net Assets, end of period (000's Omitted) $446,869 $574,431 $593,615 $539,140 $598,551 $608,344
________________________
(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:
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. ("Mellon"). Premier Mutual Fund
Services, Inc. acts as the distributor of the Fund's shares, which are sold
to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(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 30, 1996, the Board of Directors declared a cash dividend of
$.074 per share from undistributed investment income-net, payable on October
1, 1996 (ex-dividend date), to shareholders of record as of the close of
business on September 30, 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.
DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
(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-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed Funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the
time of borrowings. For the period ended September 30, 1996, the Fund did not
borrow under the line of credit.
NOTE 3-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 that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, interest on borrowings, brokerage commissions and
extraordinary expenses, exceed 11\2% of the value of the Fund's average net
assets, the Fund may deduct from the fees to be paid to the Manager, or the
Manager will bear such excess expenses. There was no expense reimbursement
for the six months ended September 30, 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 six months ended September 30, 1996, the Fund was charged an
aggregate of $505,000 pursuant to the Shareholder Services Plan.
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 $137,258 during the six months ended September 30,
1996.
Effective May 10, 1996, the Fund entered into a custody agreement with
Mellon to provide custodial services for the Fund. During the period ended
September 30, 1996, $22,316 was paid to Mellon pursuant to the custody
agreement.
(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.
DREYFUS A BONDS PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities, during the six months
ended September 30, 1996, amounted to $379,514,362 and $354,680,811,
respectively.
At September 30, 1996, accumulated net unrealized appreciation on
investments was $3,593,165, consisting of $9,566,351 gross unrealized
appreciation and $5,973,186 gross unrealized depreciation.
At September 30, 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.
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, 1996, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended September
30, 1996. 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, 1996 and financial highlights for each of the five years in the
period ended March 31, 1996 and in our report dated May 1, 1996, 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 5, 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
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 084SA969
[Dreyfus logo]
A Bonds Plus
Semi-Annual
Report
September 30, 1996
