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 the 12-month period ended March 31, 1998. Your Fund produced a total
return for this period, including share price changes and interest income
generated, of 12.20% .* This compares to a total return of 12.05% for the
Merrill Lynch Domestic Master Index during the same period.** Income
dividends of $.885 per share were declared to shareholders. This is
equivalent to a distribution rate per share of 5.93%.***
The Economy
The United States economy is well on the track to its eighth consecutive
year of expansion. Low interest rates, restrained inflation and plentiful
jobs have driven measures of consumer confidence to record levels. Personal
income has grown strongly over the reporting period and consumer spending,
after a sluggish holiday season, has picked up sharply this year. The
production side of the economy has remained strong as well, although signs of
leveling off were seen early in the year, perhaps due to the economic
problems in Asia. The first effects of the Asian economic crisis were felt at
the end of last year when after-tax corporate profits fell in the fourth
quarter, the first decline since the third quarter of 1996. Balance of Trade
figures for January (the latest data available) provided additional evidence
that the economic difficulties in Asia may be affecting the U.S. economy.
The Federal Reserve Board expects that a reduction in demand for U.S.
exports will result from turmoil in Asia and dampen our domestic economic
growth as a result. Currency devaluations throughout Asia, in turn, have made
imports into the United States less expensive. Cheaper imports and waning
demand for U.S. exports should place additional downward pressure on domestic
prices, helping further to control inflation. The year-long decline in oil
prices has also helped. A restrained rate of inflation, in turn, would ease
some of the strains on the labor market, and help keep labor costs under
control. The upward pressure on wages has been a paramount concern of the Fed
because of the risk it poses for rekindling inflation. Wage costs have been
rising at about 4% over the reporting period, a rate that has significantly
outpaced inflation. New job creation has been strong over the reporting
period with the unemployment rate remaining at or near 25-year lows. Yet
inflation has stayed tame. The Consumer Price Index has risen 1.6% over the
past 12 months and a broader measure of the cost of living, the Gross
Domestic Product Price Deflator, has grown at the 1.4% level for the last two
quarters of last year. The Producer Price Index was in outright decline over
the reporting period.
Restrained inflation has kept the Fed from increasing interest rates. The
last increase in short-term rates came in March 1997 when the Federal Open
Market Committee (the policy-making arm of the Federal Reserve), hiked the
Federal Funds rate by one quarter of a percent to 5.5%. (The Federal Funds
rate is the rate of interest that banks charge one another for overnight
loans.)
Low interest rates have provided a strong fundamental underpinning for
interest rate-sensitive sectors of the economy such as housing. In this case,
the Asian crisis has actually proven a stimulus to consumer spending since
international bond investors have sought the safety of U.S. Government
securities, causing interest rates to fall. This reduction in borrowing costs
has spurred mortgage refinancing, thus giving consumers additional spending
power. Mortgage rates have been at levels not seen since the 1960s. The
housing market, a critical segment of the economy, has responded accordingly.
New housing starts rose to their highest annual level in over ten years,
while resale rates of existing homes set records during the reporting period.
Overall spending on construction, both residential and commercial, has been
solid.
So far, the economy has remained remarkably robust and inflation-free. We
are sensitive to the longevity of this extraordinary economic advance and are
alert to evidence of a potential reversal in direction or an upsurge in
inflation.
The Market
One year ago, 10-year U.S. Treasury rates were nearly 7.00% as a strong
economy was fueling fears of inflation and imminent Fed tightening of
monetary policy. Since that time, rates have fallen precipitously to a low
yield on the 10-year Treasury of 5.36% in January 1998 and 5.65% currently.
This declining-rate environment was brought on by a number of very powerful
forces that peaked this January. Stock markets around the world were showing
significant volatility and, along with the strengthening dollar, creating a
flight to quality. Investors around the world viewed U.S. Treasuries as a
safe-haven investment. The Asian crisis spread and fears of a South Korean
default peaked in January and have since subsided for a time. And finally,
commodity prices have plunged across the board due to slower demand, excess
capacity and inventory liquidation. All of these events have created good
buying demand for U.S. Treasuries at a time when the supply is shrinking due
to a budget surplus for the first time in many years.
Yield spreads to Treasuries on both corporates and mortgage-backed have
widened during the past year. Imbedded call options in both of these sectors
caused them to underperform as rates fell. Additionally, huge supply and
credit quality fears due to the aforementioned factors caused spreads to
widen on corporates.
Portfolio Overview
The portfolio was positioned with a longer duration than its benchmark,
the Merrill Lynch Domestic Master Index, during most of the year. Thus the
Fund has benefited from the falling interest rate environment. Additionally,
the Fund has benefited from being underweight in government mortgage-backed
securities which have been hurt by increasing prepayment rates on the
underlying home mortgages. Instead we have owned commercial mortgage-backed
securities which have been helped by improving fundamentals of commercial
real estate and generally have much better protection against early
prepayments than government mortgage-backeds. While the Fund has benefited
from many individual credit holdings in the corporate area, being
overweighted in this area has hurt performance since corporate spreads to
Treasuries are now wider than at this time last year. Specific names that
have been added to the portfolio over the past year are: Rockwell
International, Bayer, American General Institutional Capital B, and Bankers
Trust.
As always, we will be monitoring all areas of the fixed-income markets
for superior risk/reward relationships to capitalize on in the Fund. It is
both an honor and a pleasure to be managing your investments.
Very truly yours,
[signature logo Kevin McClintock]
Kevin McClintock
Head of Taxable Fixed Income
April 17, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. - Unlike the Fund, the
Merrill Lynch Domestic Master Index is an unmanaged performance benchmark for
portfolios that include U.S. Government, mortgage and BBB or higher-rated
corporate securities with maturities greater than or equal to one year.
*** 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.
<TABLE>
Dreyfus A Bonds Plus, Inc. March 31, 1998
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS A BONDS PLUS,
INC. AND THE MERRILL LYNCH DOMESTIC MASTER INDEX
Dollars
$23,754
Dreyfus A Bonds Plus, Inc.
$23,629
Merrill Lynch Domestic
Master Index*
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
Average Annual Total Returns
One Year Ended Five Years Ended Ten Years Ended
March 31, 1998 March 31, 1998 March 31, 1998
____________________ ____________________ ____________________
<S> <C> <C> <C>
12.20% 6.77% 9.04%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus A Bonds Plus,
Inc. on 3/31/88 to a $10,000 investment made in the Merrill Lynch Domestic
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. Unlike the Fund, the Merrill Lynch Domestic
Master Index is an unmanaged performance benchmark for portfolios that
include U.S. Government, mortgage and BBB or higher-rated corporate
securities with maturities greater than or equal to one year; corporate and
Treasury securities in the Index must have par amounts outstanding greater
than or equal to $25 million and generic mortgage-backed securities, $200
million per coupon. 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>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1998
Principal
Bonds and Notes-92.9% Amount Value
______________ ______________
<S> <C> <C>
Airlines-2.2% Continental Airlines,
Pass-Through Ctfs.,
Ser. 97-4A, 6.90%, 2018............. $ 14,000,000 $ 14,289,520
______________
Asset-Backed-6.0% BTC Mortgage Investors Trust,
Motgage Pass-Through Ctfs.,
Ser. 1997-S1, Cl. B, 6.445%, 2009... 13,000,000 (a) 13,081,250
Bosque Asset,
Asset-Backed Notes,
7.66%, 2002......................... 5,073,851 (a) 5,096,842
California Infrastructure and Economic
Development Bank:
Special Purpose Trust PG & E-1,
Rate Reduction Ctfs.,
Ser. 1997-1, Cl. A-6, 6.32%, 2005... 5,160,000 5,212,406
Special Purpose Trust SCE-1,
Rate Reduction Ctfs.,
Ser. 1997-1, Cl. A-5, 6.28%, 2005... 5,250,000 5,298,982
Special Purpose Trust SDG & E-1,
Rate Reduction Ctfs.,
Ser. 1997-1, Cl. A-5, 6.19%, 2005... 4,300,000 4,320,156
The Money Store Trust,
Asset-Backed Ctfs.,
Ser. 1996-D, Cl. A-16, 7.11%, 2028.. 5,602,527 5,648,048
______________
38,657,684
______________
Banking-1.1% Bankers Trust (New York),
Sub. Notes, Ser. A, 6.70%, 2007..... 7,200,000 7,260,386
______________
Commercial Mortgage-16.1% 277 Park Avenue Finance,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1997-C1, Cl. A-2, 7.68%, 2007.. 14,750,000 (a) 15,736,406
DLJ Mortgage Acceptance,
Commercial Mortgage Pass-Through Ctfs.:
Ser. 1996-CF2, Cl. A-3, 7.38%, 2021. 3,000,000 (a) 3,122,813
Ser. 1997-CF1, Cl. A-3, 7.76%, 2007. 6,600,000 (a) 7,049,625
Ser. 1997-CF2, Cl. B-3, 6.99%, 2009. 8,500,000 (a) 8,255,625
GMAC Commercial Mortgage Securities,
Mortgage Pass-Through Ctfs.,
Ser. 1996-C1, Cl. E, 7.86%, 2006.... 3,105,000 3,158,852
GS Mortgage Securities II,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1997-GL1, Cl. G, 7.822%, 2030.. 9,820,000 (b) 10,154,494
Merrill Lynch Mortgage Investors,
Mortgage Pass-Through Ctfs.,
Ser. 1995-C3, Cl. C, 7.342%, 2025... 4,980,000 (b) 5,135,625
Nomura Asset Securities,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1998-D6, Cl. A-3, 6.979%, 2028. 22,000,000 22,333,438
Dreyfus A Bonds Plus, Inc.
Statement of Investments (continued) March 31, 1998
Principal
Bonds and Notes (continued) Amount Value
______________ ______________
Commercial Mortgage (continued) Nomura Depositor Trust ST I,
Mortgage Pass-Through Ctfs.,
Ser. 1998 ST 1, Cl. A-3, 6.268%, 2003 $....5,000,000 (a,b) $ 5,125,000
Resolution Trust,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1994-C2, Cl. D, 8%, 2025....... 9,950,412 10,179,272
Structured Asset Securities:
Mortgage Pass-Through Ctfs.,
Ser. 1996-C3, Cl. B, 7.125%, 2030... 7,000,000 (a) 7,075,469
Multiclass Pass-Through Ctfs., REMIC,
Ser. 1996-CFL, Cl. C, 6.525%, 2028.. 7,192,927 (a) 7,152,467
______________
104,479,086
______________
Energy-1.6% Tosco,
Notes, 7.25%, 2007.................. 10,000,000 10,432,010
______________
Financial-3.0% Fuji Finance,
Gtd. Floating Rate Notes, 6.425%, 2049 21,000,000 19,162,500
______________
Food & Tobacco-1.4% Philip Morris Cos.,
Notes, 6.95%, 2001.................. 9,000,000 (c) 9,273,159
______________
Foreign-2.0% Province of Quebec,
Deb., 6.50%, 2006................... 5,300,000 5,346,640
Republic of Colombia,
Bonds, 8.70%, 2016.................. 8,000,000 7,835,728
______________
13,182,368
______________
Industrial-3.6% Rockwell International, Deb.:
6.70%, 2028......................... 12,000,000 12,011,964
5.20%, 2098......................... 15,000,000 11,268,750
______________
23,280,714
______________
Insurance-5.1% AFC Capital Trust I,
Gtd. Capital Securities, 8.207%, 2027 15,000,000 16,743,270
American General Institutional Capital B,
Gtd. Capital Securities, Ser. B, 8.125%, 2046 10,000,000 (a) 11,020,660
NAC Re,
Notes, 8%, 1999..................... 5,000,000 5,101,340
______________
32,865,270
______________
Pharmaceutical-3.4% Bayer,
Notes, 6.65%, 2028.................. 22,000,000 (a) 21,912,726
______________
Publishing-Newspapers-2.2% A.H. Belo,
Sr. Notes, 6.875%, 2002............. 14,000,000 14,243,628
______________
Real Estate Investment Trust-2.2% Crescent Real Estate Equities, L.P.,
Notes, 6.625%, 2002................. 6,000,000 (a) 5,914,020
Dreyfus A Bonds Plus, Inc.
Statement of Investments (continued) March 31, 1998
Principal
Bonds and Notes (continued) Amount Value
______________ ______________
Real Estate Investment Trust
(continued) Tanger Properties, L.P.,
Notes (Gtd. by Tanger Factory Outlet Centers),
7.875%, 2004........................ $....8,500,000 $ 8,657,743
______________
14,571,763
______________
Residential Mortgage-4.6% Norwest Asset Securities,
Mortgage Pass-Through Ctfs.:
Ser. 1997-6, Cl. B-1, 7.50%, 2027... 7,227,706 7,354,192
Ser. 1997-8, Cl. B-1, 7.50%, 2027... 3,951,226 4,008,025
Ser. 1997-10, Cl. B-2, 7.625%, 2027. 1,963,314 2,015,431
Ser. 1997-15, Cl. B-1, 6.75%, 2012.. 1,085,405 1,088,797
Ser. 1997-16, Cl. B-1, 6.75%, 2027.. 2,193,479 2,174,287
Ser. 1997-16, Cl. B-2, 6.75%, 2027.. 698,287 687,595
Ser. 1997-16, Cl. M, 6.75%, 2027.... 899,505 903,441
Ser. 1998-2, Cl. M, 6.50%, 2028..... 2,878,335 2,835,160
Ser. 1998-11, Cl. B-2, 6.50%, 2025.. 2,550,000 2,502,953
Residential Funding Mortgage Securities I,
Ser. 1996-S10, Cl. M-3, 7.50%, 2026. 5,779,886 5,810,592
______________
29,380,473
______________
Utilities-3.0% Cleveland Electric Illuminating,
Ser. A, Secured Notes, 7.19%, 2000.. 7,000,000 7,140,000
National Rural Utilities Cooperative Finance,
Collateral Trust Bonds, 7.30%, 2006. 5,000,000 5,303,040
Western Resources,
First Mortgage Bonds, 6.875%, 2004.. 7,000,000 7,151,291
______________
19,594,331
______________
U.S. Government Agency/
Mortgage Backed-16.3% Collateralized Mortgage Obligation Trust 9,
Cl.C (Collateralized by GNMA Pass-Through Ctfs.),
7.75%, 2012......................... 16,854 16,907
Federal Home Loan Mortgage,
REMIC, Multiclass Mortgage Participation Ctfs.
(Interest Only Obligation):
Ser. 1552, Cl. JD, 7%, 8/15/2023.... 40,418,426 (d) 15,034,038
Ser. 1978, Cl. PH, 7%, 1/15/2024.... 5,878,907 (d) 1,055,617
Ser. 1995, Cl. PY, 7%, 10/15/2027... 10,124,292 (d) 4,423,050
Federal National Mortgage Association:
6.88%, 2/1/2028..................... 4,296,763 4,359,872
REMIC Trust, Gtd. Pass-Through Ctfs.:
Ser. 1992-103, Cl. G, 7.50%, 8/25/2018 8,157,099 8,212,812
Ser. 1996-64, Cl. PM, 7%, 1/18/2012
(Interest Only Obligation).......... 8,557,426 (d) 1,864,321
Ser. 1996-70, Cl. PL, 7%, 2/25/2026
(Interest Only Obligation).......... 16,484,363 (d) 3,907,783
Ser. 1997-24, Cl. IA, 7%, 1/18/2026
(Interest Only Obligation).......... 18,000,000 (d) 7,614,720
Dreyfus A Bonds Plus, Inc.
Statement of Investments (continued) March 31, 1998
Principal
Bonds and Notes (continued) Amount Value
______________ ______________
U.S. Government Agency/
Mortgage Backed (continued) FHA Project Loan Ctfs., Ser. Pool No. 6
(Reilly Mortgage Group), 7.43%, 2022 $....5,906,479 $ 6,137,202
Government National Mortgage Association I:
7%, 6/15/2008....................... 134,610 138,395
9.50%, 11/15/2017................... 7,212,273 7,937,972
Project Loan,
7.50%, 4/15/2037.................... 6,648,687 6,609,990
Government National Mortgage Association II,
Adjustable Rate Mortgage,
5.50%, 5/20/2028.................... 15,000,000 (e) 15,028,050
Government National Mortgage Association,
REMIC Trust, Gtd. Pass-Through Securities:
Ser. 1997-2, Cl. K, 7.50%, 1/20/2024 11,259,000 11,522,911
Ser. 1997-4, Cl. G, 7.50%, 11/16/2024 11,500,000 11,830,165
______________
105,693,805
______________
U.S. Government-19.1% U.S. Treasury Bonds:
5.50%, 2/15/2008.................... 10,000,000 9,879,500
6.125%, 11/15/2027.................. 42,900,000 43,996,524
U.S. Treasury Notes:
5.50%, 2/28/2003.................... 58,000,000 57,637,558
6.125%, 8/15/2007................... 12,000,000 12,339,000
______________
123,852,582
______________
TOTAL BONDS AND NOTES
(cost $594,279,032)................. $602,132,005
==============
Short-Term Investments-7.9%
U.S. Government Agency; Federal Home Loan Banks,
5.90%, 4/1/1998
(cost $51,321,000).................. $..51,321,000 $ 51,321,000
==============
TOTAL INVESTMENTS (cost $645,600,032).................................... 100.8% 653,453,005
======= ==============
LIABILITIES, LESS CASH AND RECEIVABLES................................... (.8%) $ (5,081,149)
======= ==============
NET ASSETS............................................................... 100.0% $648,371,856
======= ==============
Notes to Statement of Investments:
(a) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31, 1998
these securities amounted to $110,542,903 or 17.0% of net assets.
(b) Variable rate security-interest rate subject to periodic change.
(c) Reflects date security can be redeemed at holders' option; the stated
maturity is 6/1/2006.
(d) Notional face amount shown.
(e) Purchased on a forward commitment basis.
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998
Cost Value
______________ ______________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $645,600,032 $653,453,005
Cash....................................... 4,598,309
Receivable for investment securities sold.. 34,581,119
Receivable for shares of Common Stock subscribed 663,626
Interest receivable........................ 6,248,564
______________
699,544,623
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 458,035
Payable for investment securities purchased 49,574,468
Payable for shares of Common Stock redeemed 1,020,565
Accrued expenses and other liabilities..... 119,699
______________
51,172,767
______________
NET ASSETS.................................................................. $648,371,856
==============
REPRESENTED BY: Paid-in capital............................ $625,303,837
Accumulated undistributed investment income-net6,665,006
Accumulated net realized gain (loss) on investments 8,550,040
Accumulated net unrealized appreciation (depreciation)
....on investments-Note 4 7,852,973
______________
NET ASSETS.................................................................. $648,371,856
==============
SHARES OUTSTANDING
(100 million shares of $.01 par value Common Stock authorized).............. 43,958,383
NET ASSET VALUE, offering and redemption price per share.................... $14.75
======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income...................... $42,238,984
EXPENSES: Management fee-Note 3(a)............. $ 3,914,925
Shareholder servicing costs-Note 3(b) 1,472,095
Prospectus and shareholders' reports. 85,040
Custodian fees-Note 3(b)............. 60,552
Professional fees.................... 59,777
Directors' fees and expenses-Note 3(c) 53,157
Registration fees.................... 43,260
Miscellaneous........................ 5,227
____________
Total Expenses................. 5,694,033
____________
INVESTMENT INCOME-NET................................................. 36,544,951
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments $11,729,977
Net unrealized appreciation (depreciation)
on investments................... 19,700,076
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 31,430,053
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $67,975,004
============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS A BONDS PLUS, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1998 March 31, 1997
_______________ ______________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................... $ 36,544,951 $ 36,566,343
Net realized gain (loss) on investments.................................. 11,729,977 8,631,964
Net unrealized appreciation (depreciation) on investments................ 19,700,076 (22,130,009)
_______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations........ 67,975,004 23,068,298
_______________ ______________
NETEQUALIZATION CREDITS (DEBITS)-Note 1(e)................................. 330,950 (142,308)
_______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................... (36,337,978) (36,573,464)
Net realized gain on investments......................................... (6,661,447) --
_______________ ______________
Total Dividends........................................................ (42,999,425) (36,573,464)
_______________ ______________
CAPITALSTOCK TRANSACTIONS:
Net proceeds from shares sold............................................ 306,802,891 188,296,554
Dividends reinvested..................................................... 37,642,192 31,341,242
Cost of shares redeemed.................................................. (292,960,035) (232,961,296)
_______________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions...... 51,485,048 (13,323,500)
_______________ ______________
Total Increase (Decrease) in Net Assets.............................. 76,791,577 (26,970,974)
NET ASSETS:
Beginning of Period...................................................... 571,580,279 598,551,253
_______________ ______________
End of Period............................................................ $ 648,371,856 $ 571,580,279
=============== ==============
Undistributed investment income-net........................................ $ 6,665,006 $ 6,127,083
_______________ ______________
Shares Shares
_______________ ______________
CAPITAL SHARE TRANSACTIONS:
Shares sold ............................................................. 21,161,431 13,245,473
Shares issued for dividends reinvested................................... 2,609,422 2,202,148
Shares redeemed.......................................................... (20,252,009) (16,381,726)
_______________ ______________
Net Increase (Decrease) in Shares Outstanding.......................... 3,518,844 (934,105)
=============== ==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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.
Year Ended March 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $14.13 $14.47 $13.75 $14.38 $15.43
______ ______ ______ ______ ______
Investment Operations:
Investment income-net........................ .89 .88 .92 .94 .98
Net realized and unrealized gain (loss)
on investments............................. .79 (.34) .73 (.56) (.46)
______ ______ ______ ______ ______
Total from Investment Operations............. 1.68 .54 1.65 .38 .52
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net......... (.89) (.88) (.93) (.94) (.99)
Dividends from net realized gain on investments (.17) - - (.07) (.58)
______ ______ ______ ______ ______
Total Distributions.......................... (1.06) (.88) (.93) (1.01) (1.57)
______ ______ ______ ______ ______
Net asset value, end of period .............. $14.75 $14.13 $14.47 $13.75 $14.38
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 12.20% 3.88% 12.12% 3.01% 3.09%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .95% .96% .93% .99% .90%
Ratio of net investment income
to average net assets...................... 6.07% 6.12% 6.32% 6.89% 6.30%
Portfolio Turnover Rate ..................... 374.30% 415.69% 165.50% 172.60% 93.67%
Net Assets, end of period (000's Omitted) ... $648,372 $571,580 $598,551 $539,140 $593,615
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. ("Mellon"). Premier Mutual Fund
Services, Inc. is 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: Investments in securities (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. Investments denominated in foreign currencies are translated to
U.S. dollars at the prevailing rates of exchange. Short-term investments,
excluding U.S. Treasury Bills, are carried at amortized cost, which
approximates value.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
On March 31, 1998, the Board of Directors declared a cash dividend of
$.075 per share from undistributed investment income-net, payable on April 1,
1998 (ex-dividend date), to shareholders of record as of the close of
business on March 31, 1998.
(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.
(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.
Dreyfus A Bonds Plus, Inc.
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 2-Bank Line of Credit:
The Fund may borrow up to $20 million for leveraging purposes under a
short-term unsecured line of credit and 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. During the
period ended March 31, 1998, the Fund did not borrow under either 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 payments to be made to the Manager, or
the Manager will bear, the amount of such excess expenses. There was no
expense reimbursement for the period ended March 31, 1998.
(B) Under the 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 period ended March 31, 1998, the Fund was charged $1,005,032
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. During the
period ended March 31, 1998, the Fund was charged $257,559 pursuant to the
transfer agency agreement.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended March 31, 1998, the
Fund was charged $60,552 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.
NOTE 4-Securities Transactions:
The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities, during the period
ended March 31, 1998, amounted to $2,220,580,010 and $2,202,550,901,
respectively.
At March 31, 1998, accumulated net unrealized appreciation on investments
was $7,852,973, consisting of $10,256,231 gross unrealized appreciation and
$2,403,258 gross unrealized depreciation.
At March 31, 1998, 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, 1998, 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 and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of March
31, 1998 and confirmation of securities not held by the custodian by
correspondence with others. 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, 1998, 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.
New York, New York
May 11, 1998
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates $.165 per share as a
long-term capital gain distribution (of which 12.24% is subject to the 20%
maximum Federal tax rate) of the $.2390 per share paid on December 1, 1997.
Registration Mark
[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. 084AR983
Registration Mark
[Dreyfus logo]
ABonds Plus
Annual Report
March 31, 1998
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS A BONDS PLUS, INC. AND THE MERRILL LYNCH
DOMESTIC MASTER INDEX
EXHIBIT A:
MERRILL
LYNCH DREYFUS
PERIOD DOMESTIC A BONDS
MASTER INDEX * PLUS, INC.
3/31/88 10,000 10,000 327.601
3/31/89 10,517 10,502 344.549
3/31/90 11,784 11,621 386.045
3/31/91 13,300 12,853 435.718
3/31/92 14,825 14,620 485.675
3/31/93 16,827 17,119 551.269
3/31/94 17,282 17,648 566.148
3/31/95 18,134 18,179 594.081
3/31/96 20,109 20,382 658.763
3/31/97 21,087 21,172 690.815
3/31/98 23,629 23,754 774.081
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
