lp1-430.htm - Generated by SEC Publisher for SEC Filing

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number

811-08703

 

 

 

Dreyfus High Yield Strategies Fund

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York  10166

 

 

(Address of principal executive offices)        (Zip code)

 

 

 

 

 

Bennett A. MacDougall, Esq.

200 Park Avenue

New York, New York  10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code: 

(212) 922-6400

 

 

Date of fiscal year end:

 

03/31

 

Date of reporting period:

09/30/16

 

             

 

 

 

 

 

 


 

FORM N-CSR

Item 1.       Reports to Stockholders.

 


 

Dreyfus High Yield Strategies Fund

     

 

SEMIANNUAL REPORT
September 30, 2016

   
 

 

 

Dreyfus High Yield Strategies Fund

Protecting Your Privacy
Our Pledge to You

THE FUND IS COMMITTED TO YOUR PRIVACY. On this page, you will find the Fund’s policies and practices for collecting, disclosing, and safeguarding “nonpublic personal information,” which may include financial or other customer information. These policies apply to individuals who purchase Fund shares for personal, family, or household purposes, or have done so in the past. This notification replaces all previous statements of the Fund’s consumer privacy policy, and may be amended at any time. We’ll keep you informed of changes as required by law.

YOUR ACCOUNT IS PROVIDED IN A SECURE ENVIRONMENT. The Fund maintains physical, electronic and procedural safeguards that comply with federal regulations to guard nonpublic personal information. The Fund’s agents and service providers have limited access to customer information based on their role in servicing your account.

THE FUND COLLECTS INFORMATION IN ORDER TO SERVICE AND ADMINISTER YOUR ACCOUNT. The Fund collects a variety of nonpublic personal information, which may include:

 Information we receive from you, such as your name, address, and social security number.

 Information about your transactions with us, such as the purchase or sale of Fund shares.

 Information we receive from agents and service providers, such as proxy voting information.

THE FUND DOES NOT SHARE NONPUBLIC PERSONAL INFORMATION WITH ANYONE, EXCEPT AS PERMITTED BY LAW.

Thank you for this opportunity to serve you.

 

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

 

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

 

Contents

THE FUND

   

A Letter from the

 

Chief Executive Officer

2

Discussion of Fund Performance

3

Statement of Investments

5

Statement of Assets and Liabilities

14

Statement of Operations

15

Statement of Cash Flows

16

Statement of Changes in Net Assets

17

Financial Highlights

18

Notes to Financial Statements

19

Additional Information

30

Proxy Results

31

Officers and Trustees

33

FOR MORE INFORMATION

 

Back Cover

 

       
 


Dreyfus High Yield Strategies Fund

 

The Fund

A LETTER FROM THE CHIEF EXECUTIVE OFFICER

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus High Yield Strategies Fund, covering the six-month period from April 1, 2016 through September 30, 2016. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Stocks and bonds generally produced strong returns over the reporting period despite ongoing concerns about global economic conditions. In the wake of sharp market declines earlier in 2016, investor sentiment improved dramatically in the spring when U.S. monetary policymakers held short-term interest rates steady, other central banks eased their monetary policies further, and commodity prices rebounded from depressed levels. A referendum in Great Britain to leave the European Union triggered brief bouts of market turbulence in June, but the market rally resumed and several broad measures of stock market performance set record highs in July and August. In the bond market, aggressively accommodative monetary policies and robust investor demand for current income generally continued to send yields of high-quality sovereign bonds lower and their prices higher.

Recently, we have seen evidence that investors may be shifting their focus away from macroeconomic influences and toward underlying company fundamentals. This development suggests that selectivity may be a more important determinant of investment success over the months ahead. As always, we encourage you to discuss the implications of our observations with your financial advisor.

Thank you for your continued confidence and support.

Sincerely,

Mark D. Santero
Chief Executive Officer
The Dreyfus Corporation

October 17, 2016

2

 

DISCUSSION OF FUND PERFORMANCE

For the period from April 1, 2016 through September 30, 2016, as provided by Chris Barris, Portfolio Manager

Fund and Market Performance Overview

For the six-month period ended September 30, 2016, Dreyfus High Yield Strategies Fund produced a total return of 12.40% (on a net asset value basis) and provided aggregate income dividends of $0.1640 per share.1 In comparison, the BofA Merrill Lynch U.S. High Yield Master II Constrained Index (the “Index”), the fund’s benchmark, achieved a total return of 11.69% for the same period.2

High yield bonds rallied over the reporting period as global economic concerns generally eased and investors reached for higher levels of current income. The fund produced higher returns than its benchmark, mainly due to strong credit selections across several industry groups.

The Fund’s Investment Approach

The fund primarily seeks high current income. The fund also seeks capital growth as a secondary objective, to the extent consistent with its objective of seeking high current income. The fund invests primarily in fixed-income securities of below-investment-grade credit quality. Issuers of below-investment-grade securities may include companies in early stages of development and companies with a highly leveraged financial structure. To compensate investors for taking on greater risk, such companies typically must offer higher yields than those offered by more established or conservatively financed companies.

Robust Investor Demand Supported Corporate Bond Prices

Investor sentiment had changed dramatically in the weeks prior to the reporting period, sparking a high yield market rally that persisted through September 2016. Investors’ previous worries were assuaged in the spring when central banks in Europe and Japan further eased their monetary policies, keeping sovereign bond yields low, and China adopted new measures to address its slowing economy. Meanwhile, U.S. monetary policymakers suggested that they would delay additional rate hikes due to the potentially adverse impact of global economic developments on the U.S. economy. In this environment, commodity prices rebounded from depressed levels. Higher commodity prices particularly improved the business prospects of high yield bond issuers in the energy and materials sectors.

Meanwhile, income-oriented investors increasingly turned to high yield bonds in an attempt to capture greater levels of current income than were available from investment-grade securities in the low-interest-rate environment. Yet, the supply of newly issued high yield bonds has so far declined in 2016 compared to issuance volumes in 2015. The resulting supply-and-demand dynamics put downward pressure on yield differences between high yield bonds and U.S. Treasury securities, and high yield bond prices climbed commensurately. The market rally was especially robust among bonds with ratings at the lower end of the credit-quality spectrum.

Although recovering oil prices have helped many energy companies return to profitability, the rebound came too late for some energy-related businesses, sending default rates higher over the reporting period.

Credit Selections Bolstered Fund Results

The fund’s performance compared to its benchmark was enhanced by underweighted exposure to some of the reporting period’s weaker industry groups, including retailers and leisure companies. In addition, the fund benefited from favorable credit selections in the information technology,

3

 

DISCUSSION OF FUND PERFORMANCE (continued)

paper-and-packaging, and wireless communications sectors. Among individual securities, casino supplier Scientific Games International posted strong gains after reporting better-than-expected operating results.

The fund’s leveraging strategy also helped support the fund’s relative performance. After reducing leverage in the midst of volatile markets during the first quarter of 2016, we returned the fund’s leverage to previous levels in the spring.

On a more negative note, some strategies dampened the fund’s relative results. Most notably, a relatively defensive investment posture in the energy and metals-and-mining industry groups prevented the fund from participating more fully in a rally that was led by distressed companies. Instead, in the energy sector, we focused on companies that, in our analysis, could withstand oil prices in the $30 to $40 range. Consequently, none of the fund’s energy holdings defaulted on their debt obligations during the reporting period. In addition, the health care sector weighed on relative performance when one issuer’s bonds repriced lower amid worries about industrywide pricing pressures.

We generally maintained the fund’s average duration in a range that was shorter than the benchmark, mainly due to seasoned holdings that were purchased at higher yields than are available today. However, the fund’s relatively short duration posture mildly reduced the benefits of declining long-term bond yields during the reporting period.

Maintaining a Constructive Investment Posture

As of the reporting period’s end, we have maintained a generally constructive investment posture. The choppy U.S. economic recovery seems likely to persist, commodity prices have stabilized, and the high yield market’s supply-and-demand dynamics remain positive. Therefore, we have gradually increased the fund’s exposure to energy and metals-and-mining companies, and we have maintained overweighted positions in the paper-and-packaging and cable television industry groups. We generally have favored B-rated and a select group of CCC-rated bonds over their higher-rated counterparts.

October 17, 2016

Bonds are subject generally to interest-rate, credit, liquidity, and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause price declines. High yield bonds are subject to increased credit risk and are considered speculative in terms of the issuer’s perceived ability to continue making interest payments on a timely basis and to repay principal upon maturity. The use of leverage may magnify the fund’s gains or losses. For derivatives with a leveraging component, adverse changes in the value or level of the underlying asset can result in a loss that is much greater than the original investment in the derivative.

1 Total return includes reinvestment of dividends and any capital gains paid, based upon net asset value per share. Past performance is no guarantee of future results. Share price, yield, and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost.
2 Source: FactSet — Reflects reinvestment of dividends and, where applicable, capital gain distributions. On September 25, 2009, the Merrill Lynch U.S. High Yield Master II Constrained Index was renamed the BofA Merrill Lynch U.S. High Yield Master II Constrained Index (the “Index”). The Index is an unmanaged performance benchmark composed of U.S. dollar-denominated domestic and Yankee bonds rated below investment grade with at least $100 million par amount outstanding and at least one year remaining to maturity. Bonds are capitalization-weighted. Total allocations to an issuer are capped at 2%. Investors cannot invest directly in any index.

4

 

STATEMENT OF INVESTMENTS
September 30, 2016 (Unaudited)

                     
 

Bonds and Notes - 140.8%

Coupon
Rate (%)

 

Maturity
Date

 

Principal
Amount ($)

a

Value ($)

 

Casinos - 6.4%

         

International Game Technology,
Sr. Scd. Notes

 

6.25

 

2/15/22

 

2,095,000

b,c

2,240,351

 

MGM Resorts International,
Gtd. Notes

 

11.38

 

3/1/18

 

6,310,000

c

7,114,525

 

MGM Resorts International,
Gtd. Notes

 

7.75

 

3/15/22

 

740,000

c

860,250

 

Scientific Games International,
Gtd. Notes

 

10.00

 

12/1/22

 

4,915,000

c

4,570,950

 

TVL Finance,
Sr. Scd. Notes

GBP

8.50

 

5/15/23

 

1,080,000

b

1,476,545

 
 

16,262,621

 

Consumer Discretionary - 19.8%

         

Beacon Roofing Supply,
Gtd. Notes

 

6.38

 

10/1/23

 

805,000

c

873,425

 

Beazer Homes USA,
Gtd. Notes

 

8.75

 

3/15/22

 

1,100,000

b,c

1,163,250

 

Cablevision Systems,
Sr. Unscd. Notes

 

8.63

 

9/15/17

 

2,675,000

c

2,813,766

 

CalAtlantic Group,
Gtd. Notes

 

8.38

 

5/15/18

 

2,025,000

c

2,224,969

 

CCO Holdings,
Sr. Unscd. Notes

 

6.63

 

1/31/22

 

2,180,000

c

2,289,000

 

Cequel Communications Holdings I,
Sr. Unscd. Notes

 

6.38

 

9/15/20

 

1,690,000

b,c

1,747,037

 

ClubCorp Club Operations,
Gtd. Notes

 

8.25

 

12/15/23

 

1,960,000

b,c

2,116,800

 

DriveTime Automotive Group,
Sr. Scd. Notes

 

8.00

 

6/1/21

 

2,285,000

b,c

2,222,162

 

Ferrellgas Partners,
Sr. Unscd. Notes

 

8.63

 

6/15/20

 

2,785,000

c

2,750,187

 

iHeartCommunications,
Sr. Scd. Notes

 

9.00

 

12/15/19

 

1,140,000

c

906,300

 

International Game Technology,
Sr. Scd. Notes

 

6.50

 

2/15/25

 

515,000

b

557,488

 

MGM Resorts International,
Gtd. Notes

 

6.00

 

3/15/23

 

485,000

 

527,438

 

Midcontinent Communications & Midcontinent Finance,
Gtd. Notes

 

6.88

 

8/15/23

 

1,155,000

b,c

1,235,850

 

MPG Holdco I,
Gtd. Notes

 

7.38

 

10/15/22

 

1,730,000

c

1,781,900

 

Nexstar Broadcasting,
Gtd. Notes

 

6.88

 

11/15/20

 

1,615,000

c

1,681,619

 

Prime Security Services Borrower,
Scd. Notes

 

9.25

 

5/15/23

 

2,850,000

b,c

3,113,625

 

RCN Telecom Services,
Sr. Unscd. Notes

 

8.50

 

8/15/20

 

2,805,000

b,c

2,994,337

 

Reliance Intermediate Holdings,
Sr. Scd. Notes

 

6.50

 

4/1/23

 

2,038,000

b,c

2,150,090

 

Rite Aid,
Gtd. Notes

 

6.75

 

6/15/21

 

1,860,000

c

1,962,648

 

Schaeffler Holding Finance,
Sr. Scd. Notes

 

6.75

 

11/15/22

 

209,519

b,c

240,423

 

5

 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

                     
 

Bonds and Notes - 140.8% (continued)

Coupon
Rate (%)

 

Maturity

Date

 

Principal
Amount ($)

a

Value ($)

 

Consumer Discretionary - 19.8% (continued)

         

SFR Group,
Sr. Scd. Notes

 

7.38

 

5/1/26

 

1,375,000

b,c

1,407,230

 

StoneMor Partners,
Gtd. Notes

 

7.88

 

6/1/21

 

1,295,000

c

1,314,425

 

TI Group Automotive Systems,
Sr. Unscd. Notes

 

8.75

 

7/15/23

 

2,050,000

b,c

2,239,625

 

Townsquare Media,
Gtd. Notes

 

6.50

 

4/1/23

 

1,285,000

b,c

1,309,094

 

United Group,
Sr. Scd. Notes

EUR

7.88

 

11/15/20

 

590,000

b

692,605

 

United Rentals North America,
Gtd. Notes

 

7.63

 

4/15/22

 

1,800,000

c

1,926,000

 

Univision Communications,
Gtd. Notes

 

8.50

 

5/15/21

 

1,000,000

b,c

1,035,296

 

Univision Communications,
Sr. Scd. Notes

 

6.75

 

9/15/22

 

1,020,000

b,c

1,086,300

 

Wave Holdco,
Sr. Unscd. Notes

 

8.25

 

7/15/19

 

1,228,528

b,c

1,240,813

 

William Lyon Homes,
Gtd. Notes

 

8.50

 

11/15/20

 

2,585,000

c

2,714,250

 
 

50,317,952

 

Consumer Staples - 4.0%

         

Albea Beauty Holdings,
Sr. Scd. Notes

 

8.38

 

11/1/19

 

3,040,000

b,c

3,180,600

 

Bakkavor Finance 2,
Sr. Scd. Notes

GBP

8.75

 

6/15/20

 

975,000

 

1,352,201

 

Kronos Acquistion Holdings,
Sr. Unscd. Notes

 

9.00

 

8/15/23

 

540,000

b,c

559,235

 

New Albertsons,
Sr. Unscd. Bonds

 

8.00

 

5/1/31

 

2,625,000

 

2,631,562

 

New Albertsons,
Sr. Unscd. Debs.

 

7.45

 

8/1/29

 

270,000

 

265,950

 

Pinnacle Operating,
Scd. Notes

 

9.00

 

11/15/20

 

905,000

b,c

633,500

 

Post Holdings,
Gtd. Notes

 

8.00

 

7/15/25

 

1,310,000

b,c

1,505,681

 
 

10,128,729

 

Energy - 13.1%

         

California Resources,
Scd. Notes

 

8.00

 

12/15/22

 

1,250,000

b,c

837,500

 

Callon Petroleum,
Sr. Unscd. Notes

 

6.13

 

10/1/24

 

730,000

b

757,375

 

Carrizo Oil & Gas,
Gtd. Notes

 

7.50

 

9/15/20

 

2,615,000

c

2,713,062

 

Cheniere Corpus Christi Holdings,
Sr. Scd. Notes

 

7.00

 

6/30/24

 

2,235,000

b,c

2,424,975

 

Crestwood Midstream Partners,
Gtd. Bonds

 

6.13

 

3/1/22

 

1,330,000

c

1,349,950

 

CVR Refining/Coffeyville Finance,
Gtd. Notes

 

6.50

 

11/1/22

 

1,290,000

c

1,173,900

 

Energy Transfer Equity,
Sr. Scd. Notes

 

7.50

 

10/15/20

 

2,500,000

c

2,756,250

 

Extraction Oil & Gas Holding,
Gtd. Notes

 

7.88

 

7/15/21

 

2,165,000

b,c

2,257,012

 

6

 

                     
 

Bonds and Notes - 140.8% (continued)

Coupon
Rate (%)

 

Maturity

Date

 

Principal
Amount ($)

a

Value ($)

 

Energy - 13.1% (continued)

         

Forum Energy Technologies,
Gtd. Notes

 

6.25

 

10/1/21

 

975,000

c

928,688

 

Genesis Energy,
Gtd. Notes

 

6.75

 

8/1/22

 

1,900,000

c

1,967,222

 

Laredo Petroleum,
Gtd. Notes

 

7.38

 

5/1/22

 

1,975,000

c

2,051,531

 

Matador Resources,
Gtd. Notes

 

6.88

 

4/15/23

 

1,050,000

c

1,092,000

 

Nabors Industries,
Gtd. Notes

 

9.25

 

1/15/19

 

1,700,000

c

1,869,743

 

Oasis Petroleum,
Gtd. Notes

 

6.50

 

11/1/21

 

355,000

c

340,800

 

Oasis Petroleum,
Gtd. Notes

 

6.88

 

3/15/22

 

1,200,000

c

1,155,000

 

PDC Energy,
Gtd. Notes

 

6.13

 

9/15/24

 

610,000

b,c

635,925

 

Rice Energy,
Gtd. Notes

 

6.25

 

5/1/22

 

1,155,000

c

1,198,313

 

RSP Permian,
Gtd. Notes

 

6.63

 

10/1/22

 

920,000

c

968,300

 

Sanchez Energy,
Gtd. Notes

 

7.75

 

6/15/21

 

935,000

c

827,475

 

SM Energy,
Sr. Unscd. Notes

 

6.75

 

9/15/26

 

635,000

c

642,541

 

Targa Resources Partners,
Gtd. Notes

 

6.88

 

2/1/21

 

1,005,000

c

1,042,688

 

Targa Resources Partners,
Gtd. Notes

 

6.38

 

8/1/22

 

755,000

c

785,200

 

Unit,
Gtd. Notes

 

6.63

 

5/15/21

 

1,235,000

c

1,055,925

 

Weatherford International,
Gtd. Notes

 

7.75

 

6/15/21

 

375,000

c

372,656

 

Weatherford International,
Gtd. Notes

 

8.25

 

6/15/23

 

380,000

c

377,150

 

Whiting Petroleum,
Gtd. Notes

 

5.00

 

3/15/19

 

410,000

c

398,725

 

Whiting Petroleum,
Gtd. Notes

 

5.75

 

3/15/21

 

955,000

c

897,700

 

Whiting Petroleum,
Gtd. Notes

 

6.25

 

4/1/23

 

540,000

c

496,800

 
 

33,374,406

 

Financials - 17.2%

         

Ally Financial,
Gtd. Notes

 

7.50

 

9/15/20

 

860,000

c

980,400

 

Ally Financial,
Gtd. Notes

 

8.00

 

11/1/31

 

3,045,000

c

3,768,187

 

Ashton Woods,
Sr. Unscd. Notes

 

6.88

 

2/15/21

 

1,050,000

b,c

1,023,750

 

Cabot Financial,
Sr. Scd. Notes

GBP

8.38

 

8/1/20

 

475,000

 

649,530

 

Cabot Financial,
Sr. Scd. Notes

GBP

7.50

 

10/1/23

 

600,000

b

769,427

 

Consolidated Energy Finance,
Gtd. Notes

 

6.75

 

10/15/19

 

1,081,000

b,c

1,072,893

 

FBM Finance,
Sr. Unscd. Notes

 

8.25

 

8/15/21

 

1,955,000

b,c

2,052,750

 

7

 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

                     
 

Bonds and Notes - 140.8% (continued)

Coupon
Rate (%)

 

Maturity

Date

 

Principal
Amount ($)

a

Value ($)

 

Financials - 17.2% (continued)

         

Garfunkelux Holdco 2,
Scd. Bonds

GBP

11.00

 

11/1/23

 

1,170,000

b

1,532,031

 

Hub Holdings,
Sr. Unscd. Notes

 

8.13

 

7/15/19

 

2,640,000

b,c

2,587,200

 

HUB International,
Sr. Unscd. Notes

 

7.88

 

10/1/21

 

1,175,000

b,c

1,201,438

 

International Lease Finance,
Sr. Unscd. Notes

 

8.88

 

9/1/17

 

1,675,000

c

1,777,594

 

International Lease Finance,
Sr. Unscd. Notes

 

8.25

 

12/15/20

 

3,195,000

c

3,802,050

 

International Lease Finance,
Sr. Unscd. Notes

 

8.63

 

1/15/22

 

1,255,000

c

1,546,787

 

KCG Holdings,
Sr. Scd. Notes

 

6.88

 

3/15/20

 

1,975,000

b,c

1,965,125

 

Ladder Capital Finance Holdings,
Gtd. Notes

 

7.38

 

10/1/17

 

1,100,000

c

1,112,375

 

Lloyds Bank,
Sub. Notes

GBP

10.75

 

12/16/21

 

2,385,000

d

3,153,154

 

Navient,
Sr. Unscd. Notes

 

8.45

 

6/15/18

 

2,675,000

c

2,882,312

 

PetSmart,
Sr. Unscd. Notes

 

7.13

 

3/15/23

 

2,645,000

b,c

2,783,862

 

Provident Funding Associates,
Gtd. Notes

 

6.75

 

6/15/21

 

1,105,000

b,c

1,120,194

 

Royal Bank of Scotland,
Sub. Notes

 

9.50

 

3/16/22

 

1,530,000

d

1,580,271

 

Solera Finance,
Sr. Unscd. Notes

 

10.50

 

3/1/24

 

2,225,000

b,c

2,492,000

 

USI,
Sr. Unscd. Notes

 

7.75

 

1/15/21

 

2,355,000

b,c

2,402,100

 

York Risk Services Holding,
Gtd. Notes

 

8.50

 

10/1/22

 

1,930,000

b,c

1,510,225

 
 

43,765,655

 

Health Care - 14.7%

         

Auris Luxembourg II,
Sr. Scd. Bonds

EUR

8.00

 

1/15/23

 

530,000

b

647,891

 

Auris Luxembourg II,
Sr. Scd. Bonds

EUR

8.00

 

1/15/23

 

1,165,000

 

1,424,138

 

Capsugel,
Sr. Unscd. Notes

 

7.00

 

5/15/19

 

1,353,000

b,c

1,357,231

 

CHS/Community Health Systems,
Gtd. Notes

 

8.00

 

11/15/19

 

1,900,000

c

1,871,500

 

CHS/Community Health Systems,
Gtd. Notes

 

6.88

 

2/1/22

 

235,000

c

203,275

 

ConvaTec Finance International,
Gtd. Notes

 

8.25

 

1/15/19

 

3,660,000

b,c

3,656,340

 

HCA,
Gtd. Notes

 

7.50

 

2/15/22

 

5,470,000

c

6,290,500

 

IASIS Healthcare,
Gtd. Notes

 

8.38

 

5/15/19

 

2,445,000

c

2,224,950

 

Jaguar Holding Co II,
Gtd. Notes

 

6.38

 

8/1/23

 

1,225,000

b,c

1,277,063

 

Kindred Healthcare,
Gtd. Notes

 

8.75

 

1/15/23

 

3,515,000

c

3,528,181

 

MPH Acquisition Holdings,
Sr. Unscd. Notes

 

7.13

 

6/1/24

 

1,795,000

b,c

1,934,112

 

8

 

                     
 

Bonds and Notes - 140.8% (continued)

Coupon
Rate (%)

 

Maturity
Date

 

Principal
Amount ($)

a

Value ($)

 

Health Care - 14.7% (continued)

         

Prestige Brands,
Gtd. Notes

 

6.38

 

3/1/24

 

890,000

b,c

950,075

 

Synlab Unsecured Bondco,
Sr. Unscd. Bonds

EUR

8.25

 

7/1/23

 

1,300,000

 

1,562,588

 

Tenet Healthcare,
Sr. Unscd. Notes

 

8.13

 

4/1/22

 

5,355,000

c

5,381,775

 

Valeant Pharmaceuticals International,
Gtd. Notes

 

7.50

 

7/15/21

 

4,190,000

b,c

4,069,537

 

Valeant Pharmaceuticals International,
Gtd. Notes

 

6.13

 

4/15/25

 

1,060,000

b,c

915,575

 
 

37,294,731

 

Industrials - 9.8%

         

Advanced Disposal Services,
Gtd. Notes

 

8.25

 

10/1/20

 

2,930,000

c

3,080,162

 

Ahern Rentals,
Scd. Notes

 

7.38

 

5/15/23

 

1,385,000

b,c

903,713

 

Bombardier,
Sr. Unscd. Notes

 

7.75

 

3/15/20

 

425,000

b,c

436,422

 

Bombardier,
Sr. Unscd. Notes

 

7.50

 

3/15/25

 

1,745,000

b,c

1,614,125

 

Cemex,
Sr. Scd. Notes

 

7.75

 

4/16/26

 

1,310,000

b

1,456,720

 

Cemex Finance,
Sr. Scd. Notes

 

9.38

 

10/12/22

 

1,736,000

b,c

1,913,940

 

DPx Holdings,
Sr. Unscd. Notes

 

7.50

 

2/1/22

 

1,990,000

b,c

2,111,887

 

Engility,
Gtd. Notes

 

8.88

 

9/1/24

 

730,000

b,c

741,863

 

Gardner Denver,
Sr. Unscd. Notes

 

6.88

 

8/15/21

 

1,095,000

b,c

1,032,038

 

Gates Global,
Gtd. Notes

 

6.00

 

7/15/22

 

2,175,000

b,c

2,077,125

 

GFL Environmental,
Sr. Unscd. Notes

 

9.88

 

2/1/21

 

2,030,000

b,c

2,233,000

 

H&E Equipment Services,
Gtd. Notes

 

7.00

 

9/1/22

 

750,000

c

795,000

 

Navios Maritime Acquisition,
Sr. Scd. Notes

 

8.13

 

11/15/21

 

475,000

b,c

351,500

 

RSI Home Products,
Scd. Notes

 

6.50

 

3/15/23

 

1,270,000

b,c

1,346,200

 

XPO Logistics,
Gtd. Notes

 

6.50

 

6/15/22

 

1,815,000

b,c

1,903,481

 

XPO Logistics,
Gtd. Notes

 

6.13

 

9/1/23

 

495,000

b,c

509,850

 

Zachry Holdings,
Sr. Unscd. Notes

 

7.50

 

2/1/20

 

2,300,000

b,c

2,300,000

 
 

24,807,026

 

Information Technology - 8.0%

         

Diamond 1 Finance,
Gtd. Notes

 

7.13

 

6/15/24

 

855,000

b,c

940,911

 

Diamond 1 Finance,
Sr. Scd. Notes

 

8.35

 

7/15/46

 

2,235,000

b,c

2,685,509

 

First Data,
Gtd. Notes

 

7.00

 

12/1/23

 

4,450,000

b,c

4,717,000

 

9

 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

                     
 

Bonds and Notes - 140.8% (continued)

Coupon
Rate (%)

 

Maturity

Date

 

Principal
Amount ($)

a

Value ($)

 

Information Technology - 8.0% (continued)

         

Infor Software Parent,
Gtd. Notes

 

7.13

 

5/1/21

 

2,410,000

b,c

2,349,750

 

Infor US,
Gtd. Notes

 

6.50

 

5/15/22

 

1,335,000

c

1,358,362

 

JDA Escrow,
Sr. Scd. Notes

 

7.38

 

10/15/24

 

1,385,000

b

1,426,550

 

Riverbed Technology,
Gtd. Notes

 

8.88

 

3/1/23

 

2,790,000

b,c

2,995,762

 

Sophia Finance,
Sr. Unscd. Notes

 

9.00

 

9/30/23

 

3,530,000

b,c

3,724,150

 
 

20,197,994

 

Materials - 20.4%

         

Alcoa Nederland Holding,
Gtd. Notes

 

6.75

 

9/30/24

 

245,000

b,c

255,106

 

Alcoa Nederland Holding,
Gtd. Notes

 

7.00

 

9/30/26

 

185,000

b,c

191,706

 

ArcelorMittal,
Sr. Unscd. Bonds

 

10.85

 

6/1/19

 

4,473,000

c,d

5,434,695

 

ARD Finance,
Sr. Scd. Notes

EUR

6.63

 

9/15/23

 

195,000

b

211,387

 

ARD Finance,
Sr. Scd. Notes

 

7.13

 

9/15/23

 

2,000,000

b,c

1,995,000

 

Ardagh Packaging Finance,
Gtd. Notes

 

7.25

 

5/15/24

 

3,490,000

b,c

3,743,025

 

Ashland,
Gtd. Notes

 

6.88

 

5/15/43

 

620,000

c

678,900

 

BWAY Holding,
Sr. Unscd. Notes

 

9.13

 

8/15/21

 

5,750,000

b,c

6,037,500

 

CVR Partners,
Scd. Notes

 

9.25

 

6/15/23

 

2,320,000

b,c

2,250,400

 

FMG Resources August 2006,
Sr. Scd. Notes

 

9.75

 

3/1/22

 

1,625,000

b,c

1,893,125

 

Freeport-McMoRan,
Gtd. Notes

 

3.55

 

3/1/22

 

1,340,000

c

1,226,100

 

Freeport-McMoRan,
Gtd. Notes

 

3.88

 

3/15/23

 

1,205,000

c

1,096,550

 

Freeport-McMoRan,
Gtd. Notes

 

5.45

 

3/15/43

 

1,400,000

c

1,141,000

 

Hexion,
Sr. Scd. Notes

 

8.88

 

2/1/18

 

220,000

c

211,200

 

Hexion,
Sr. Scd. Notes

 

10.00

 

4/15/20

 

1,125,000

c

1,112,344

 

Hillman Group,
Gtd. Notes

 

6.38

 

7/15/22

 

1,265,000

b,c

1,192,263

 

Horizon Holdings I,
Sr. Unscd. Notes

EUR

7.25

 

8/1/23

 

570,000

b

689,937

 

Lennar,
Gtd. Notes, Ser. B

 

12.25

 

6/1/17

 

1,045,000

c

1,119,456

 

Mercer International,
Gtd. Notes

 

7.75

 

12/1/22

 

2,620,000

c

2,787,025

 

Novelis,
Gtd. Notes

 

6.25

 

8/15/24

 

840,000

b,c

894,600

 

Novelis,
Gtd. Notes

 

5.88

 

9/30/26

 

665,000

b,c

682,456

 

Platform Specialty Products,
Sr. Unscd. Notes

 

10.38

 

5/1/21

 

2,020,000

b,c

2,186,650

 

10

 

                     
 

Bonds and Notes - 140.8% (continued)

Coupon
Rate (%)

 

Maturity

Date

 

Principal
Amount ($)

a

Value ($)

 

Materials - 20.4% (continued)

         

Ply Gem Industries,
Gtd. Notes

 

6.50

 

2/1/22

 

435,000

c

443,700

 

Reynolds Group,
Gtd. Notes

 

9.88

 

8/15/19

 

765,000

c

788,906

 

Reynolds Group,
Gtd. Notes

 

7.00

 

7/15/24

 

2,070,000

b,c

2,223,956

 

Sappi Papier Holding,
Sr. Scd. Notes

 

7.75

 

7/15/17

 

730,000

b,c

748,250

 

Signode Industrial Group,
Gtd. Notes

 

6.38

 

5/1/22

 

2,520,000

b,c

2,564,100

 

Summit Materials,
Gtd. Notes

 

8.50

 

4/15/22

 

2,030,000

b,c

2,222,850

 

Teck Resources,
Gtd. Notes

 

6.25

 

7/15/41

 

880,000

 

847,000

 

Trinseo Materials Operating,
Sr. Unscd. Notes

 

6.75

 

5/1/22

 

2,236,000

b,c

2,370,160

 

Tronox Finance,
Gtd. Notes

 

6.38

 

8/15/20

 

1,345,000

c

1,247,488

 

Univar,
Gtd. Notes

 

6.75

 

7/15/23

 

1,200,000

b,c

1,242,000

 
 

51,728,835

 

Real Estate - .8%

         

Communications Sales & Leasing,
Gtd. Notes

 

8.25

 

10/15/23

 

1,985,000

c

2,093,163

 

Telecommunications - 21.1%

         

Alcatel-Lucent USA,
Sr. Unscd. Notes

 

6.45

 

3/15/29

 

2,295,000

 

2,550,319

 

Altice,
Gtd. Notes

 

7.75

 

5/15/22

 

2,330,000

b,c

2,496,012

 

Altice,
Gtd. Notes

 

7.63

 

2/15/25

 

1,500,000

b,c

1,548,750

 

Altice Financing,
Sr. Scd. Bonds

 

7.50

 

5/15/26

 

790,000

b,c

824,563

 

Altice Finco,
Gtd. Notes

 

7.63

 

2/15/25

 

210,000

b,c

211,838

 

Altice Finco,
Scd. Notes

 

9.88

 

12/15/20

 

2,000,000

b,c

2,132,500

 

Altice Finco,
Scd. Notes

 

8.13

 

1/15/24

 

1,900,000

b,c

1,976,000

 

CenturyLink,
Sr. Unscd. Notes, Ser. W

 

6.75

 

12/1/23

 

2,915,000

c

3,042,531

 

Cincinnati Bell,
Gtd. Notes

 

7.00

 

7/15/24

 

985,000

b,c

1,012,088

 

Digicel,
Gtd. Notes

 

6.75

 

3/1/23

 

1,050,000

b

939,750

 

Digicel Group,
Sr. Unscd. Notes

 

8.25

 

9/30/20

 

3,175,000

b

2,774,156

 

Digicel Group,
Sr. Unscd. Notes

 

7.13

 

4/1/22

 

1,425,000

b

1,103,948

 

DISH DBS,
Gtd. Notes

 

7.75

 

7/1/26

 

4,320,000

b,c

4,600,800

 

Frontier Communications,
Sr. Unscd. Notes

 

10.50

 

9/15/22

 

1,225,000

c

1,303,094

 

Frontier Communications,
Sr. Unscd. Notes

 

11.00

 

9/15/25

 

3,190,000

c

3,337,537

 

11

 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

                     
 

Bonds and Notes - 140.8% (continued)

Coupon
Rate (%)

 

Maturity

Date

 

Principal
Amount ($)

a

Value ($)

 

Telecommunications - 21.1% (continued)

         

Hughes Satellite Systems,
Gtd. Notes

 

7.63

 

6/15/21

 

3,010,000

c

3,220,700

 

Neptune Finco,
Sr. Unscd. Notes

 

10.13

 

1/15/23

 

4,075,000

b,c

4,711,719

 

Sable International Finance,
Gtd. Notes

 

6.88

 

8/1/22

 

2,385,000

b,c

2,486,362

 

Sprint Capital,
Gtd. Notes

 

8.75

 

3/15/32

 

800,000

c

823,000

 

Sprint Communications,
Gtd. Notes

 

9.00

 

11/15/18

 

1,175,000

b,c

1,299,844

 

Sprint Communications,
Sr. Unscd. Notes

 

11.50

 

11/15/21

 

5,325,000

c

6,150,375

 

T-Mobile USA,
Gtd. Bonds

 

6.63

 

4/28/21

 

1,000,000

c

1,056,250

 

T-Mobile USA,
Gtd. Bonds

 

6.73

 

4/28/22

 

1,000,000

c

1,053,750

 

T-Mobile USA,
Gtd. Bonds

 

6.84

 

4/28/23

 

2,840,000

c

3,063,650

 
 

53,719,536

 

Utilities - 5.5%

         

Calpine,
Sr. Scd. Notes

 

7.88

 

1/15/23

 

1,719,000

b,c

1,817,842

 

Dynegy,
Gtd. Notes

 

7.38

 

11/1/22

 

850,000

c

843,625

 

Dynegy,
Gtd. Notes

 

7.63

 

11/1/24

 

3,745,000

c

3,696,315

 

NRG Energy,
Gtd. Notes

 

7.88

 

5/15/21

 

1,503,000

c

1,578,150

 

NRG Energy,
Gtd. Notes

 

6.63

 

1/15/27

 

950,000

b,c

932,188

 

Talen Energy Supply,
Sr. Unscd. Notes

 

6.50

 

6/1/25

 

2,500,000

c

2,018,750

 

The Williams Companies,
Sr. Unscd. Notes

 

7.88

 

9/1/21

 

1,335,000

c

1,551,937

 

Viridian Group Fundco II,
Sr. Scd. Notes

EUR

7.50

 

3/1/20

 

1,390,000

 

1,656,105

 
 

14,094,912

 

Total Bonds and Notes
(cost $349,354,682)

 

357,785,560

 

Preferred Stocks - .7%

               

Financials - .7%

         

GMAC Capital Trust I,
Ser. 2
(cost $1,795,257)

 

6.60

 

2/15/40

 

70,831

d

1,799,816

 

12

 

                     
 

Other Investment - 1.8%

       

Shares

 

Value ($)

 

Registered Investment Company;

         

Dreyfus Institutional Preferred Government Plus Money Market Fund
(cost $4,401,970)

         

4,401,970

e

4,401,970

 

Total Investments (cost $355,551,909)

 

143.3%

363,987,346

 

Liabilities, Less Cash and Receivables

 

(43.3%)

(109,905,466)

 

Net Assets

 

100.0%

254,081,880

 

a Principal amount stated in U.S. Dollars unless otherwise noted.

EUR—Euro
GBP—British Pound

 

b Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, these securities were valued at $184,615,870 or 72.66% of net assets.
c Security, or portion thereof, on collateral for Revolving Credit and Security Agreement.
d Variable rate security—rate shown is the interest rate in effect at period end.|
e Investment in affiliated money market mutual fund.

   

Portfolio Summary (Unaudited)

Value (%)

Corporate Bonds

140.8

Money Market Investment

1.8

Preferred Stocks

.7

 

143.3

 Based on net assets.

See notes to financial statements.

13

 

STATEMENT OF ASSETS AND LIABILITIES
September 30, 2016 (Unaudited)

                 

 

 

 

 

 

 

 

 

 

 

Cost

 

Value

 

Assets ($):

 

 

 

 

Investments in securities—See Statement of Investments:

 

 

 

 

Unaffiliated issuers

 

351,149,939

 

359,585,376

 

Affiliated issuers

 

4,401,970

 

4,401,970

 

Cash

 

 

 

 

158,850

 

Cash denominated in foreign currency

 

 

582,890

 

569,544

 

Dividends and interest receivable

 

 

 

 

7,318,172

 

Receivable for investment securities sold

 

 

 

 

2,301,250

 

Unrealized appreciation on forward foreign
currency exchange contracts—Note 4

 

 

 

 

80,691

 

Prepaid expenses

 

 

 

 

99,806

 

 

 

 

 

 

374,515,659

 

Liabilities ($):

 

 

 

 

Due to The Dreyfus Corporation and affiliates—Note 3(b)

 

 

 

 

250,522

 

Loan payable—Note 2

 

 

 

 

116,000,000

 

Payable for investment securities purchased

 

 

 

 

3,938,157

 

Interest and loan fees payable—Note 2

 

 

 

 

139,813

 

Unrealized depreciation on forward foreign
currency exchange contracts—Note 4

 

 

 

 

357

 

Accrued expenses

 

 

 

 

104,930

 

 

 

 

 

 

120,433,779

 

Net Assets ($)

 

 

254,081,880

 

Composition of Net Assets ($):

 

 

 

 

Paid-in capital

 

 

 

 

335,653,917

 

Accumulated distributions in excess of investment income—net

 

 

 

 

(1,325,469)

 

Accumulated net realized gain (loss) on investments

 

 

 

 

(88,725,436)

 

Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions

 

 

 

 

8,478,868

 

Net Assets ($)

 

 

254,081,880

 

Shares Outstanding

 

 

(unlimited number of $.001 par value shares of Beneficial Interest authorized)

 

72,707,688

 

Net Asset Value Per Share ($)

 

3.49

 

 

See notes to financial statements.

14

 

STATEMENT OF OPERATIONS
Six Months Ended September 30, 2016 (Unaudited)

             
             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income ($):

 

 

 

 

Income:

 

 

 

 

Interest

 

 

13,008,928

 

Dividends:

 

 

 

 

Unaffiliated issuers

 

 

68,645

 

Affiliated issuers

 

 

5,041

 

Total Income

 

 

13,082,614

 

Expenses:

 

 

 

 

Management fee—Note 3(a)

 

 

1,354,402

 

Interest expense—Note 2

 

 

970,533

 

Professional fees

 

 

80,498

 

Registration fees

 

 

35,367

 

Trustees’ fees and expenses—Note 3(c)

 

 

33,736

 

Shareholders’ reports

 

 

31,349

 

Custodian fees—Note 3(b)

 

 

12,502

 

Shareholder servicing costs

 

 

10,367

 

Miscellaneous

 

 

36,582

 

Total Expenses

 

 

2,565,336

 

Investment Income—Net

 

 

10,517,278

 

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):

 

 

Net realized gain (loss) on investments and foreign currency transactions

(1,829,596)

 

Net realized gain (loss) on forward foreign currency exchange contracts

740,250

 

Net Realized Gain (Loss)

 

 

(1,089,346)

 

Net unrealized appreciation (depreciation) on investments
and foreign currency transactions

 

 

18,966,941

 

Net unrealized appreciation (depreciation) on
forward foreign currency exchange contracts

 

 

435,752

 

Net Unrealized Appreciation (Depreciation)

 

 

19,402,693

 

Net Realized and Unrealized Gain (Loss) on Investments

 

 

18,313,347

 

Net Increase in Net Assets Resulting from Operations

 

28,830,625

 

             

See notes to financial statements.

15

 

STATEMENT OF CASH FLOWS
Six Months Ended September 30, 2016 (Unaudited)

     
     
     

Cash Flows from Operating Activities ($):

   

Purchases of portfolio securities

(117,436,353)

 

Net proceeds from sales of short-term securities

(616,189)

 

Proceeds from sales of portfolio securities

111,458,107

 

Interest received

13,984,127

 

Dividends received

74,084

 

Interest and loan fees paid

(937,138)

 

Operating expenses paid

(143,186)

 

Paid to The Dreyfus Corporation

(1,345,179)

 

Realized gain from forward foreign currency
exchange contracts transactions

740,250

 

Net Cash Provided by Operating Activities

 

5,778,523

Cash Flows from Financing Activities ($):

   

Dividends paid

(13,799,417)

 

Increase in loan outstanding

6,000,000

 

Net Cash Used in Financing Activities

 

(7,799,417)

Net decrease in cash

 

(2,020,894)

Cash at beginning of period

 

2,749,288

Cash and cash denominated in foreign currency at end of period

 

728,394

Reconciliation of Net Decrease in Net Assets Resulting from Operations to Net Cash Provided by Operating Activities ($):

   

Net Increase in Net Assets Resulting From Operations

 

28,830,625

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities ($):

   

Purchases of portfolio securities

 

(117,436,353)

Proceeds from sales of portfolio securities

 

111,458,107

Net proceeds from sales of short-term securities

 

(616,189)

Decrease in interest receivable

 

163,028

Decreased in dividends receivable

 

398

Increase in interest and loan fees payable

 

13,649

Decreased in accrued operating expenses

 

(59,208)

Increase in Due to The Dreyfus Corporation and affiliates

 

9,223

Decrease in prepaid expenses

 

176,169

Net realized gain (loss) on investment and foreign currency transactions

 

1,089,346

Net unrealized appreciation on investments and
foreign currency transactions

 

(19,402,693)

Net amortization on investments

 

812,171

Realized gain from forward foreign currency
exchange contracts transactions

 

740,250

Net Cash Provided By Operating Activities

 

5,778,523

See notes to financial statements.

16

 

STATEMENT OF CHANGES IN NET ASSETS

                   
                   

 

 

 

 

Six Months Ended
September 30, 2016 (Unaudited)

 

 

 

Year Ended
March 31, 2016

 

Operations ($):

 

 

 

 

 

 

 

 

Investment income—net

 

 

10,517,278

 

 

 

22,020,044

 

Net realized gain (loss) on investments

 

(1,089,346)

 

 

 

(22,886,312)

 

Net unrealized appreciation (depreciation)
on investments

 

19,402,693

 

 

 

(16,218,143)

 

Net Increase (Decrease) in Net Assets
Resulting from Operations

28,830,625

 

 

 

(17,084,411)

 

Dividends to Shareholders from ($):

 

 

 

 

 

 

 

 

Investment income—net

 

 

(11,916,854)

 

 

 

(25,279,502)

 

Beneficial Interest Transactions ($):

 

 

 

 

 

 

 

 

Dividends reinvested

 

 

224,061

 

 

 

-

 

Increase (Decrease) in Net Assets
from Beneficial Interest Transactions

224,061

 

 

 

-

 

Total Increase (Decrease) in Net Assets

17,137,832

 

 

 

(42,363,913)

 

Net Assets ($):

 

 

 

 

 

 

 

 

Beginning of Period

 

 

236,944,048

 

 

 

279,307,961

 

End of Period

 

 

254,081,880

 

 

 

236,944,048

 

Undistributed (distributions in excess of)
investment income—net

(1,325,469)

 

 

 

74,107

 

Capital Share Transactions (Shares):

 

 

 

 

 

 

 

 

Shares issued for dividends reinvested

 

 

65,443

 

 

 

 -

 

                   

See notes to financial statements.

17

 

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements and market price data for the fund’s shares.

             
 

Six Months Ended

 
 

September 30, 2016

Year Ended March 31,

 

(Unaudited)

2016

2015

2014

2013

2012

Per Share Data ($):

           

Net asset value,
beginning of period

3.26

3.84

4.11

4.10

3.90

4.25

Investment Operations:

           

Investment income—neta

.14

.30

.32

.36

.38

.41

Net realized and unrealized
gain (loss) on investments

.25

(.53)

(.23)

.05

.26

(.26)

Total from
Investment Operations

.39

(.23)

.09

.41

.64

.15

Distributions:

           

Dividends from
investment income—net

(.16)

(.35)

(.36)

(.40)

(.44)

(.50)

Net asset value, end of period

3.49

3.26

3.84

4.11

4.10

3.90

Market value, end of period

3.42

3.13

3.65

4.19

4.40

4.65

Total Return (%)b

14.72c

(4.44)

(4.51)

4.95

5.12

11.65

Ratios/
Supplemental Data (%):

           

Ratio of total expenses to
average net assets

2.08d

1.91

1.81

1.92

2.03e

2.11e

Ratio of net expenses to
average net assets

2.08d

1.91

1.74

1.71

1.82f

1.90f

Ratio of interest expense
to average net assets

.79d

.64

.52

.51

.57

.61

Ratio of net
investment income
to average net assets

8.51d

8.63

8.04

8.80

9.56

10.60

Portfolio Turnover Rate

32.19c

54.23

48.20

48.39

42.42

57.91

Net Assets,
end of period ($ x 1,000)

254,082

236,944

279,308

297,911

297,210

281,897

Average borrowings
outstanding ($ x 1,000)

113,770

116,593

120,000

120,000

120,000

120,000

Weighted average
number of fund shares
outstanding ($ x 1,000)

72,671

72,642

72,621

72,518

72,410

72,194

Average amount of
debt per share ($)

1.57

1.61

1.65

1.65

1.66

1.66

a Based on average shares outstanding.
b Calculated based on market value.
c Not annualized.
d Annualized.
e The presentation of total expense ratios has been changed to include interest expense. Total expenses excluding interest expense for the periods ended March 31, 2013 and 2012 were previously presented as 1.46% and 1.50%, respectively.
f The presentation of net expense ratios has been changed to include interest expense. Net expenses excluding interest expense for the periods ended March 31, 2013 and 2012 were previously presented as 1.25% and 1.29%, respectively.

See notes to financial statements.

18

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus High Yield Strategies Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified, closed-end management investment company. The fund’s primary investment objective is to seek high current income. Under normal market conditions, the fund invests at least 65% of its total assets in income securities of U.S. issuers rated below investment grade quality or unrated income securities that The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serving as the fund’s investment manager and administrator, determines to be of comparable quality. The fund’s Common Stock trades on the New York Stock Exchange (the “NYSE”) under the ticker symbol DHF.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

19

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Registered investment companies that are not traded on an exchange are valued at their net asset value and are generally categorized within Level 1 of the fair value hierarchy.

Investments in securities, excluding short-term investments (other than U.S. Treasury Bills), and forward foreign currency exchange contracts (“forward contracts”) are valued each business day by an independent pricing service (the “Service”) approved by the fund’s Board of Trustees (the “Board”). 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 valued as determined by the Service, based on methods which include consideration of the following: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. These securities are generally categorized within Level 2 of the fair value hierarchy.

The Service’s procedures are reviewed by Dreyfus under the general supervision of the Board.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair

20

 

valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.

Forward contracts are valued at the forward rate and are generally categorized within Level 2 of the fair value hierarchy.

The following is a summary of the inputs used as of September 30, 2016 in valuing the fund’s investments:

         
 

Level 1– Unadjusted Quoted Prices

Level 2–Other Significant Observable
Inputs

Level 3–Significant Unobservable Inputs

Total

Assets ($)

       

Investments in Securities:

 

 

 

 

Corporate Bonds

357,785,560

357,785,560

Mutual Funds

4,401,970

4,401,970

Preferred Stocks

1,799,816

1,799,816

Forward Foreign Currency Exchange Contracts††

80,691

80,691

Liabilities ($)

       

Other Financial Instruments:

       

Forward Foreign Currency Exchange Contracts††

(357)

(357)

 See Statement of Investments for additional detailed categorizations.
†† Amount shown represents unrealized appreciation (depreciation) at period end.

At September 30, 2016, there were no transfers between levels of the fair value hierarchy.

(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date, and the difference between the

21

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments resulting from changes in exchange rates. Foreign currency gains and losses on foreign currency transactions are also included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” under the Act. Investments in affiliated investment companies during the period ended September 30, 2016 were as follows:

           

Affiliated Investment Company

Value
3/31/2016($)

Purchases($)

Sales($)

Value
9/30/2016($)

Net
Assets(%)

Dreyfus Institutional
Preferred
Government
Plus Money
Market Fund

3,785,781

60,627,512

60,011,323

4,401,970

1.8

 Formerly Dreyfus Institutional Preferred Plus Money Market Fund.

(e) Risk: The fund invests primarily in debt securities. Failure of an issuer of the debt securities to make timely interest or principal payments, or a decline or the perception of a decline in the credit quality of a debt security, can cause the debt security’s price to fall, potentially lowering the fund’s share price. High yield (“junk”) bonds involve greater credit risk, including the risk of default, than investment grade bonds, and are considered predominantly speculative with respect to the issuer’s continuing ability to make principal and interest payments. In addition, the value of debt securities may decline due to general market conditions that are not specifically related to a particular issuer, such as real or perceived adverse economic conditions, changes in outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment. They may also decline because of factors that affect a particular industry.

22

 

The fund is permitted to invest up to 5% of its assets directly in the common stock of junk bond issuers. This percentage will be in addition to any other common stock holdings acquired as part of warrants or “units”, so that the fund’s total common stock holdings could exceed 5% at a particular time. However, the fund currently intends to invest directly in common stocks (including those offered in an initial public offering) to gain sector exposure and when suitable junk bonds are not available for sale. The fund expects to sell the common stock promptly when suitable junk bonds are subsequently acquired.

(f) Dividends to Shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are normally declared and paid monthly. Dividends from net realized capital gains, if any, 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 of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Shareholders will have their distributions reinvested in additional shares of the fund, unless such Shareholders elect to receive cash, at the lower of the market price or net asset value per share (but not less than 95% of the market price). If market price is equal to or exceeds net asset value, shares will be issued at net asset value. If net asset value exceeds market price, Computershare Inc., the transfer agent, will buy fund shares in the open market and reinvest those shares accordingly.

On September 29, 2016, the Board declared a cash dividend of $0.0265 per share from undistributed investment income-net, payable on October 28, 2016 to Shareholders of record as of the close of business on October 14, 2016. The ex-dividend date was October 12, 2016.

(g) 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 Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended September 30, 2016, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended September 30, 2016, the fund did not incur any interest or penalties.

23

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Each tax year in the three-year period ended March 31, 2016 remains subject to examination by the Internal Revenue Service and state taxing authorities.

Under the Regulated Investment Company Modernization Act of 2010 (the “2010 Act”), the fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) for an unlimited period. Furthermore, post-enactment capital loss carryovers retain their character as either short-term or long-term capital losses rather than short-term as they were under previous statute. The 2010 Act requires post-enactment losses to be utilized before the utilization of losses incurred in taxable years prior to the effective date of the 2010 Act (“pre-enactment losses”). As a result of this ordering rule, pre-enactment losses may be more likely to expire unused.

The fund has an unused capital loss carryover of $83,221,086 available for federal income tax purposes to be applied against future net realized capital gains, if any, realized subsequent to March 31, 2016. If not applied, $24,707,290 of the carryover expires in fiscal year 2017 and $33,464,139 expires in fiscal year 2018. The fund has $7,838,390 of post-enactment short-term capital losses and $17,211,267 of post enactment long-term capital losses which can be carried forward for an unlimited period

The tax character of distributions paid to shareholders during the fiscal year ended March 31, 2016 was as follows: ordinary income $25,279,502. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Borrowings:

The fund has a $125,000,000 Revolving Credit and Security Agreement (the “Agreement”), which was renewed until November 22, 2017, subject to certain amendments. Under the terms of the Agreement, the fund may borrow “Advances” (including Eurodollar Advances), on a collateralized basis with certain fund assets used as collateral, which amounted to $324,405,647 as of September 30, 2016. The interest to be paid by the fund on such Advances is determined with reference to the principal amount of each Advance (and/or Eurodollar Advance) outstanding from time to time. The fund also pays additional fees pursuant to the Agreement. During the period ended September 30, 2016, total expenses pursuant to the Agreement amounted to $970,533.

The average amount of borrowings outstanding under the Agreement during the period ended September 30, 2016 was $113,770,500, with a related weighted average annualized interest rate of 1.70% and is inclusive of all expenses related to the Agreement.

24

 

NOTE 3—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management and administration agreement with Dreyfus, the management and administration fee is computed at the annual rate of .75% of the value of the fund’s average weekly total assets minus the sum of accrued liabilities (other than the aggregate indebtedness constituting financial leverage) (the “Managed Assets”) and is payable monthly.

(b) The fund compensates The Bank of New York Mellon , a subsidiary of BNY Mellon and an affiliate of Dreyfus, under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets and transaction activity. During the period ended September 30, 2016, the fund was charged $12,502 pursuant to the custody agreement.

The fund has an arrangement with the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

During the period ended September 30, 2016, the fund was charged $2,887 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $227,292, custodian fees $18,900 and Chief Compliance Officer fees $4,330.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and forward contracts, during the period ended September 30, 2016, amounted to $117,920,354 and $112,828,328, respectively.

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. The fund enters into International Swaps and Derivatives Association, Inc. Master Agreements or similar agreements (collectively, “Master Agreements”) with its over-the-counter (“OTC”) derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. Master Agreements

25

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

include provisions for general obligations, representations, collateral and events of default or termination. Under a Master Agreement, the fund may offset with the counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment in the event of default or termination.

Each type of derivative instrument that was held by the fund during the period ended September 30, 2016 is discussed below.

Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strategy. When executing forward contracts, the fund is obligated to buy or sell a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward contracts, the fund incurs a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract decreases between those dates. With respect to purchases of forward contracts, the fund incurs a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract increases between those dates. Any realized or unrealized gains or losses which occurred during the period are reflected in the Statement of Operations. The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is generally limited to the unrealized gain on each open contract. This risk may be mitigated by Master Agreements, if any, between the fund and the counterparty and the posting of collateral, if any, by the counterparty to the fund to cover the fund’s exposure to the counterparty. The following summarizes open forward contracts at September 30, 2016:

         

Forward Foreign Currency Exchange Contracts

Foreign Currency
Amounts

Cost/
Proceeds ($)

Value ($)

Unrealized Appreciation (Depreciation)($)

Purchases:

     

Goldman Sachs International

     

British Pound,

       

Expiring

       

10/6/2016

371,250

481,550

481,193

(357)

26

 

         

Forward Foreign Currency Exchange Contracts

Foreign Currency
Amounts

Cost/
Proceeds ($)

Value ($)

Unrealized Appreciation (Depreciation)($)

Sales:

     

Barclays Bank

     

British Pound,

       

Expiring

       

10/28/2016

3,280,000

4,290,800

4,253,882

36,918

Commonwealth Bank of Australia

     

Euro,

       

Expiring

       

10/28/2016

2,535,000

2,852,889

2,851,529

1,360

Goldman Sachs International

     

British Pound,

       

Expiring

       

10/28/2016

3,605,000

4,712,829

4,675,379

37,450

Euro,

       

Expiring

       

10/28/2016

1,535,000

1,728,517

1,726,665

1,852

Morgan Stanley Capital Services

     

Euro,

       

Expiring

       

10/28/2016

2,490,000

2,804,021

2,800,910

3,111

Gross Unrealized Appreciation

   

80,691

Gross Unrealized Depreciation

   

(357)

The provisions of ASC Topic 210 “Disclosures about Offsetting Assets and Liabilities” require disclosure on the offsetting of financial assets and liabilities. These disclosures are required for certain investments, including derivative financial instruments subject to Master Agreements which are eligible for offsetting in the Statement of Assets and Liabilities and require the fund to disclose both gross and net information with respect to such investments. For financial reporting purposes, the fund does not offset derivative assets and derivative liabilities that are subject to Master Agreements in the Statement of Assets and Liabilities.

27

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

At September 30, 2016, derivative assets and liabilities (by type) on a gross basis are as follows:

           

Derivative Financial Instruments:

 

Assets ($)

 

Liabilities ($)

 

Forward contracts

 

80,691

 

(357)

 

Total gross amount of derivative

         

assets and liabilities in the

         

Statement of Assets and Liabilities

 

80,691

 

(357)

 

Derivatives not subject to

         

Master Agreements

 

-

 

-

 

Total gross amount of assets

         

and liabilities subject to

         

Master Agreements

 

80,691

 

(357)

 

The following tables present derivative assets and liabilities net of amounts available for offsetting under Master Agreements and net of related collateral received or pledged, if any, as of September 30, 2016:

             
     

Financial

     
     

Instruments

     
     

and Derivatives

     
 

Gross Amount of

 

Available

Collateral

 

Net Amount of

Counterparty

Assets ($)

1

for Offset ($)

Received ($)

 

Assets ($)

Barclays Bank

36,918

 

-

-

 

36,918

Commonwealth
Bank of Australia

1,360

 

-

-

 

1,360

Goldman Sachs
International

39,302

 

(357)

-

 

38,945

Morgan Stanley
Capital Services

3,111

 

-

-

 

3,111

Total

80,691

 

(357)

-

 

80,334

             
     

Financial

     
     

Instruments

     
     

and Derivatives

     
 

Gross Amount of

 

Available

Collateral

 

Net Amount of

Counterparty

Liabilities ($)

1

for Offset ($)

Pledged ($)

 

Liabilities ($)

Goldman Sachs
International

(357)

 

357

-

 

-

             

1 Absent a default event or early termination, OTC derivative assets and liabilities are presented at gross amounts
and are not offset in the Statement of Assets and Liabilities.

The following summarizes the average market value of derivatives outstanding during the period ended September 30, 2016:

     

 

 

Average Market Value ($)

Forward contracts

 

17,310,026

     

28

 

At September 30, 2016, accumulated net unrealized appreciation on investments was $8,435,437, consisting of 14,702,450 gross unrealized appreciation and $6,267,013 gross unrealized depreciation.

At September 30, 2016, 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).

29

 

ADDITIONAL INFORMATION (Unaudited)

Portfolio Holdings

The fund will disclose its complete schedule of portfolio holdings, as reported on a month-end basis, at www.dreyfus.com, under Products and Performance. The information will be posted with a one-month lag and will remain accessible until the fund files a report on Form N-Q or Form N-CSR for the period that includes the date as of which the information was current.

30

 

PROXY RESULTS (Unaudited)

Holders of Beneficial Interest voted on the following proposal presented at the annual shareholders’ meeting held on August 4, 2016.

         
 

Shares

 

For

 

Authority Withheld

To elect two Class II Trustees:

     
 

Roslyn M. Watson

59,764,138

 

3,834,892

 

Benaree Pratt Wiley

59,478,461

 

4,120,569

 The terms of these Class II Trustees expire in 2019.

31

 

NOTES

32

 

OFFICERS AND TRUSTEES
Dreyfus High Yield Strategies Fund

200 Park Avenue
New York, NY 10166

       

Trustees

 

Officers (continued)

 

Joseph S. DiMartino, Chairman

 

Chief Compliance Officer

 

Francine J. Bovich

 

Joseph W. Connolly

 

Kenneth A. Himmel

 

Portfolio Managers

 

Stephen J. Lockwood

 

Chris Barris

 

Roslyn M. Watson

 

Kevin Cronk

 

Benaree Pratt Wiley

 

Josephine Shin

 

Officers

 

Stephen Sylvester

 

President

 

Manager

 

Bradley J. Skapyak

 

The Dreyfus Corporation

 

Chief Legal Officer

 

Custodian

 

Bennett A. MacDougall

 

The Bank of New York Mellon

 

Vice President and Secretary

 

Counsel

 

Janette E. Farragher

 

K&L Gates LLP

 

Vice Presidents and Assistant Secretaries

 

Transfer Agent,

 

James Bitetto

 

Dividend Disbursing Agent

 

Joni Lacks Charatan

 

Computershare Inc.

 

Joseph M. Chioffi

 

Stock Exchange Listing

 

Maureen E. Kane

 

NYSE Symbol: DHF

 

Sarah S. Kelleher

 

Initial SEC Effective Date

 

Jeff Prusnofsky

 

4/23/98

 

Treasurer

     

James Windels

     

Assistant Treasurer

     

Richard Cassaro

     

Gavin C. Reilly

     

Robert S. Robol

     

Robert Salviolo

     

Robert Svagna

     

The fund’s net asset value per share appears in the following publications: Barron’s, Closed-End Bond Funds section under the heading “Bond Funds” every Monday; Wall Street Journal, Mutual Funds section under the heading “Closed-End Bond Funds” every Monday.

Notice is hereby given in accordance with Section 23(c) of the Act that the fund may purchase shares of its common stock in the open market when it can do so at prices below the then current net asset value per share.

33

 

For More Information

Dreyfus High Yield Strategies Fund

200 Park Avenue
New York, NY 10166

Manager

The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian

The Bank of New York Mellon
225 Liberty Street
New York, NY 10286

Transfer Agent &
Registrar

Computershare Inc.
480 Washington Boulevard
Jersey City, NJ 07310

Dividend Disbursing Agent

Computershare Inc.
P.O. Box 30170
College Station, TX 77842

   

Ticker Symbol:

DHF

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (phone 1-800-SEC-0330 for information).

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.

   

© 2016 MBSC Securities Corporation
0430SA0916

 


 

 

Item 2.       Code of Ethics.

                  Not applicable.

Item 3.       Audit Committee Financial Expert.

                  Not applicable.

Item 4.       Principal Accountant Fees and Services.

                  Not applicable.

Item 5.       Audit Committee of Listed Registrants.

                  Not applicable.

Item 6.       Investments.

(a)              Not applicable.

Item 7.       Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

                  Not applicable.

Item 8.       Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9.       Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

                  None

Item 10.     Submission of Matters to a Vote of Security Holders.

                  There have been no material changes to the procedures applicable to Item 10.

Item 11.     Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.


 

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12.     Exhibits.

(a)(1)   Not applicable.

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3)   Not applicable.

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus High Yield Strategies Fund

By:       /s/Bradley J. Skapyak

            Bradley J. Skapyak

            President

 

Date:    November 29, 2016

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:       /s/Bradley J. Skapyak

            Bradley J. Skapyak

            President

 

Date:    November 29, 2016

 

 

By:       /s/James Windels

            James Windels

            Treasurer

 

Date:    November 29, 2016

 

 

 


 

EXHIBIT INDEX

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.  (EX-99.906CERT)