<TABLE>
DREYFUS HIGH YIELD SECURITIES FUND
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-79.3% AMOUNT VALUE
______ _______
<S>
AIRCRAFT & AEROSPACE-4.5%..........USAir, <C> <C>
Pass-Through Ctfs.,
Ser. 1993-A3, 10 3/8%, 2013........ $ 500,000 $ 488,750
______
BUILDING &
CONSTRUCTION-3.7%............. G-I Holdings,
Sr. Notes, Ser. B, Zero Coupon, 1998. 500,000 399,375
______
CHEMICALS-4.3%.............. UCC Investors,
Sr. Notes, 10 1/2%, 2002........... 450,000 471,375
______
COMPUTER-4.6%.............. Unisys,
Sr. Notes, 12%, 2003.............. 500,000 (a) 501,250
______
CONSUMER-4.2%............... Remington Arms,
Sr. Sub. Notes, 10%, 2003.......... 500,000 (a) 452,500
______
ENERGY-10.0%......... DeepTech International,
Sr. Secured Notes, 12%, 2000....... 500,000 478,750
Global Marine,
Sr. Secured Notes, 12 3/4%, 1999... 440,000 480,700
Mesa Capital,
Discount Notes, 12 3/4% 1996...... 119,000 119,000
______
1,078,450
______
ENTERTAINMENT/MEDIA-4.5% Chancellor Broadcasting,
Sr. Sub. Notes, 9 3/8%, 2004...... 500,000 486,250
______
HEALTHCARE RELATED-4.6%....... Dynacare,
Sr. Notes, 10 3/4%, 2006........... 500,000 501,250
______
INDUSTRIAL-9.3%.............. Owens-Illinois,
Sr. Deb. 11%, 2003................. 500,000 547,500
Republic Engineered Steels,
First Mortgage Notes, 9 7/8%, 2001. 500,000 456,250
______
1,003,750
______
REAL ESTATE RELATED-4.5%..... HMH Properties,
Sr. Secured Notes, 9 1/2%, 2005.... 500,000 488,125
______
RESIDENTIAL
MORTGAGE BACKED-8.4%. Chase Mortgage Finance,
Multi-Class Mortgage Pass-Through Ctfs.,
Ser. 1994-E, Cl.B6, 6 1/4%, 4/25/2010 461,361 (a) 113,033
General Electric Capital Mortgage Services,
Multi-Class Mortgage Participation Ctfs.:
Ser. 1994-21, Cl.B5, 6 1/2%, 8/25/2009 1,087,557 (a) 261,014
Ser. 1996-10, Cl.B4, 6 3/4%, 4/30/2011 375,000 (a) 252,891
DREYFUS HIGH YIELD SECURITIES FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_______ ______
RESIDENTIAL MORTGAGE
BACKED (CONTINUED) Prudential Home Mortgage Securities,
Mortgage Pass-Through Ctfs.,
Ser. 1996-7, Cl. B5, 6 3/4%, 2011.. $ 930,000 (a) $ 277,547
______
904,485
______
SHIPPING-7.6%.......... Moran Transportation,
First Preferred Ship Mortgage Notes,
11 3/4%, 2004...................... 450,000 447,750
OMI,
Sr. Notes, 10 1/4%, 2003........... 400,000 377,000
______
824,750
______
TELECOMMUNICATIONS-4.6% Shared Technologies Fairchild Communications,
Sr. Sub. Notes, Zero Coupon, 1999.. 700,000 (a,b) 504,000
______
FOREIGN-4.5%............... Eletson Holdings,
First Preferred Ship Mortgage Notes,
9 1/4%, 2003....................... 500,000 482,500
______
TOTAL BONDS AND NOTES
(cost $8,589,825).................... $ 8,586,810
======
CONVERTIBLE SECURITIES-10.1%
PREFERRED STOCKS-9.2% SHARES
_______
Cable-4.6% Cablevision Systems, Depositary Shares, Ser. L,
Cum., $11.125...................... 5,000 (a) $ 497,500
Entertainment/Media-4.6% Time Warner, Ser. K,
Cum., $102.50...................... 500 (a) 500,000
______
TOTAL PREFERRED STOCKS................. 997,500
______
PRINCIPAL
SUBORDINATED DEBENTURES-.9% AMOUNT
_______
Consumer; Outboard Marine,
7%, 2002........................... $ 100,000 102,000
______
TOTAL CONVERTIBLE SECURITIES
(cost $1,102,125).................... $ 1,099,500
======
SHORT-TERM INVESTMENTS-14.2%
U.S. GOVERNMENT AGENCY; Federal Home Loan Mortgage,
5.30%, 5/1/1996
(cost $1,538,000).................... $ 1,538,000 $ 1,538,000
======
DREYFUS HIGH YIELD SECURITIES FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
TOTAL INVESTMENTS (cost $11,229,950) ............................. 103.6% $11,224,310
===== ======
LIABILITIES, LESS CASH AND RECEIVABLES (3.6%) $ (393,446)
===== ======
NET ASSETS.................................................................. 100.0% $10,830,864
===== ======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Security 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 April 30,
1996, these securities amounted to $3,359,735 or 31.0% of net assets.
(b) Zero coupon until 3/1/1999, date on which a stated coupon rate of 12
1/4% becomes effective, the stated maturity date is 3/1/2006.
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS HIGH YIELD SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $11,229,950)-see statement...................................... $11,224,310
Cash.................................................................... 105,044
Receivable for investment securities sold............................... 980,625
Interest receivable..................................................... 262,339
Due from The Dreyfus Corporation and subsidiaries....................... 2,692
______
12,575,010
LIABILITIES:
Payable for investment securities purchased............................. $1,742,289
Accrued expenses........................................................ 1,857 1,744,146
------ ---------
NET ASSETS ................................................................ $10,830,864
======
REPRESENTED BY:
Paid-in capital......................................................... $10,744,605
Accumulated undistributed investment income-net......................... 89,183
Accumulated undistributed net realized gain on investments.............. 2,716
Accumulated net unrealized (depreciation) on investments-Note 3......... (5,640)
______
NET ASSETS at value applicable to 859,453 outstanding shares of
Beneficial Interest, equivalent to $12.60 per share
(unlimited number of $.001 par value shares authorized)................. $10,830,864
======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS HIGH YIELD SECURITIES FUND
STATEMENT OF OPERATIONS
FROM MARCH 25, 1996 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $89,183
EXPENSES:
Management fee-Note 2(a).............................................. $ 6,635
Shareholder servicing costs-Note 2(b)................................. 2,601
Auditing fees......................................................... 2,000
Trustees' fees and expenses-Note 2(c)................................. 130
Custodian fees-Note 2(b).............................................. 100
____
TOTAL EXPENSES.................................................. 11,466
Less-expense reimbursement from the Manager due to
undertaking-Note 2(a)............................................. 11,466
____
NET EXPENSES.................................................... _
____
INVESTMENT INCOME-NET........................................... 89,183
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS-Note 3:
Net realized gain on investments........................................ $ 2,716
Net unrealized (depreciation) on investments............................ (5,640)
____
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (2,924)
____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $86,259
====
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS HIGH YIELD SECURITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
FROM MARCH 25, 1996 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................................... $ 89,183
Net realized gain on investments......................................................... 2,716
Net unrealized (depreciation) on investments for the period.............................. (5,640)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... 86,259
______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold............................................................ 10,745,600
Cost of shares redeemed.................................................................. (995)
______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........................... 10,744,605
______
TOTAL INCREASE IN NET ASSETS....................................................... 10,830,864
NET ASSETS:
Beginning of period...................................................................... __
______
End of period (including undistributed investment income-net of
$89,183 on April 30, 1996)............................................................. $10,830,864
======
SHARES
______
CAPITAL SHARE TRANSACTIONS:
Shares sold.............................................................................. 859,533
Shares redeemed.......................................................................... (80)
______
NET INCREASE IN SHARES OUTSTANDING..................................................... 859,453
======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS HIGH YIELD SECURITIES FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for the period from March 25, 1996
(commencement of operations) to April 30, 1996. This information has been
derived from the Fund's financial statements.
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period..................................................... $12.50
___
INVESTMENT OPERATIONS;
Investment income-net.................................................................... .10
___
Net asset value, end of period........................................................... $12.60
===
TOTAL INVESTMENT RETURN...................................................................... 7.89%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................................. _
Ratio of net investment income to average
net assets............................................................................. 8.74%(1)
Decrease reflected in above expense ratio due to
undertaking by the Manager............................................................. 1.12%(1)
Portfolio Turnover Rate.................................................................. 32.11%(2)
Net Assets, end of period (000's Omitted)................................................ $10,831
________________________
(1) Annualized.
(2) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS HIGH YIELD SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Income Funds (the "Company") is registered under the Investment
Company Act of 1940 ("Act") as a diversified open-end management investment
company and operates as a series company currently offering three series,
including the Dreyfus High Yield Securities Fund (the "Fund"). The Fund's
investment objective is to maximize total return, consisting of capital
appreciation and current income. 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. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold
to the public without a sales charge.
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
As of April 30, 1996, Allomon Corporation, a subsidiary of Mellon Bank
Investments Corporation, the parent company of which is Mellon Bank, held
800,000 shares of the Fund.
(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 Trustees.
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. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Trustees. Investments in U.S. Government obligations
are valued at the mean between quoted bid and asked prices. Short-term
investments are carried at amortized cost, which approximates value.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(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: It is the policy of the Fund to declare
and pay dividends quarterly from investment income-net. 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.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund 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 HIGH YIELD SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund. The most stringent state expense limitation
applicable to the Fund presently requires reimbursement of expenses in any
full fiscal year that such expenses (exclusive of certain expenses as
described above) exceed 2 1\2% of the first $30 million, 2% of the next $70
million and 1 1\2% of the excess over $100 million of the average value of the
Fund's net assets in accordance with California "blue sky" regulations.
However, the Manager has undertaken from March 25, 1996 (commencement of
operations) through June 30, 1996 to reimburse all fees and expenses of the
Fund (exclusive of certain expenses as described above). The expense
reimbursement, pursuant to the undertaking, amounted to $11,466 for the
period ended April 30, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund pays the
Distributor at an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for the provision of certain services. 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. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended April 30, 1996, $2,552 was charged to the
Fund by the Distributor 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 $52 for the period from March 25, 1996 through April
30, 1996.
The Fund compensates Mellon under a Custody Agreement for providing
custodial services to the Fund. Such compensation for the period ended April
30, 1996 amounted to $100.
(C) Each trustee 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.
(D) A .75 of 1% redemption fee is charged on certain redemptions of Fund
shares (including redemptions through the Exchange Privilege) where the
redemption or exchange occurs within a nine-month period following the date
of issuance. During the period ended April 30, 1996, no redemption fees were
charged by the Fund.
DREYFUS HIGH YIELD SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1996,
amounted to $11,517,926 and $1,959,375, respectively.
At April 30, 1996, accumulated net unrealized depreciation on investments
was $5,640, consisting of $47,397 gross unrealized appreciation and $53,037
gross unrealized depreciation.
At April 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 lion "d" logo]
DREYFUS HIGH YIELD SECURITIES FUND
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.
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. 043SA964
[Dreyfus logo]
High Yield
Securities Fund
Semi-Annual
Report
April 30, 1996
