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: 811-07964
ACM Managed Dollar Income Fund, Inc.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
Mark R. Manley
Alliance Capital Management, L.P.
1345 Avenue of the Americas
New York, New York 10105
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 221-5672
Date of fiscal year end: September 30, 2004
Date of reporting period: March 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
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Closed End
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AllianceBernstein [LOGO](SM)
Investment Research and Management
ACM Managed Dollar Income Fund
Semi-Annual Report--March 31, 2004
Investment Products Offered
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o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
- ---------------------------
You may obtain a description of the Fund's proxy voting policies and
procedures, without charge, upon request by visiting Alliance Capital's web
site at www.alliancebernstein.com (click on Investors, then the "proxy voting
policies and procedures" link on the left side of the page), or by going to the
Securities and Exchange Commission's web site at www.sec.gov, or by calling
Alliance Capital at (800) 227-4618.
AllianceBernstein Investment Research and Management, Inc., is an affiliate of
Alliance Capital Management L.P., the manager of the funds, and is a member of
the NASD.
May 15, 2004
Semi-Annual Report
This report provides management's discussion of fund performance for ACM
Managed Dollar Income Fund (the "Fund") for the semi-annual reporting period
ended March 31, 2004.
Investment Objective and Policies
This closed-end fund is designed for investors who seek high current income and
capital appreciation. To achieve this objective, it invests primarily in
high-yielding, U.S. and non-U.S. fixed income securities, denominated in U.S.
dollars, that we expect to benefit from improving economic and credit
fundamentals.
Investment Results
The following table shows how the Fund performed over the past six- and
12-month periods ended March 31, 2004. For comparison, we have included a
composite benchmark consisting of 65% of the J.P. Morgan Emerging Markets Bond
Index Plus (JPM EMBI+), a standard measure of the performance of a basket of
unmanaged emerging market debt securities, and 35% of the Credit Suisse First
Boston High Yield (CSFBHY) Index, a standard measure of the performance of a
basket of unmanaged U.S. high yield debt securities. We compare the Fund's
performance to this composite benchmark because it more closely resembles the
composition of the Fund's portfolio.
INVESTMENT RESULTS*
Periods Ended March 31, 2004
---------------------------------
Returns
---------------------------------
6 Months 12 Months
-------------- --------------
ACM Managed
Dollar Income Fund (NAV) 11.85% 31.72%
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J.P. Morgan Emerging
Markets Bond Index Plus 8.71% 23.64%
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Credit Suisse First Boston
High Yield Index 8.65% 22.86%
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Composite: 65%/35%
(65% JPM EBMI+/35%
CSFBHY Index) 8.69% 23.37%
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* The Fund's investment results are for the periods shown and are based on the
net asset value (NAV) of the Fund as of March 31, 2004. Performance assumes
reinvestment of distributions and does not account for taxes. All fees and
expenses related to the operation of the Fund have been deducted. Past
performance is no guarantee of future results.
The indices do not reflect fees and expenses associated with the active
management of a mutual fund portfolio. The unmanaged J.P. Morgan Emerging
Markets Bond Index Plus (JPM EMBI+) is comprised of dollar-denominated
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 1
restructured sovereign bonds; a large percentage of the index is made up of
Brady bonds. The unmanaged Credit Suisse First Boston High Yield (CSFBHY) Index
is a measure of lower-rated, fixed income, non-convertible U.S.
dollar-denominated securities meeting certain criteria developed by Credit
Suisse designed to enable the index to reflect the high yield market. Investors
cannot invest directly in an index, and its results are not indicative of any
specific investment, including ACM Managed Dollar Income Fund.
For the six-month period ended March 31, 2004, the Fund outperformed its
composite benchmark. During this time, the Fund benefited primarily from its
emerging market debt holdings, individual security selection and its ability to
leverage. The Fund's holdings in Brazil and Turkey, as well as its overweight
position in Ecuador and underweight position in Mexico, contributed positively
to performance. Contributing positively within the Fund's high yield sector was
its overweight position in finance as well as the Fund's security investments
in metals, gaming/leisure, airlines and the health care industries. The Fund
was also aided by avoiding negative credit issues during the period under
review.
Detracting from the Fund's performance during the six-month period ended March
31, 2004 was the Fund's overweight position in Russia, which did not perform as
well as the JPM EMBI+. Also detracting modestly from performance, relative to
the CSFBHY Index, were the Fund's high yield holdings. Media wireless and media
cable securities, as well as the Fund's underweight position in utilities,
which performed well during the period, dampened performance. In addition, the
Fund's underweight position in higher risk CCC high yield holdings, which
outperformed during the period, also detracted from relative performance.
Market Review and Investment Strategy
During the semi-annual reporting period, both emerging market debt and high
yield securities posted strong returns, albeit moderated from the unsustainable
pace of the previous six-month period. High yield corporate securities
continued to benefit from a stronger economy and improving credit fundamentals.
The decline in the ratio of downgrades to upgrades in the past year reflected
the improvement in credit fundamentals. Additionally, yield-seeking investors
in a low-rate environment helped to drive high yield prices higher, despite
strong issuance. For the six-month period ended March 31, 2004, the CSFBHY
Index posted a 8.65% return, as spreads compressed 104 basis points to 495
basis points over comparable duration Treasuries. Furthermore, the lower
quality sectors of the high yield market outperformed the higher quality tiers,
although that trend began to reverse late in the period. Nominal returns in
high yield were stronger in the third quarter of 2003 than the first quarter of
2004 however, as escalating geopolitical tensions and concerns about the
sustainability of the U.S. economic recovery due to a weak job market began to
surface. By industry, finance, metals/minerals, cable, utilities and automotive
outperformed. Underperforming sectors included the airline industry,
telecommunications, wireless communications, broadcasting and the food & drug
sector.
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2 o ACM MANAGED DOLLAR INCOME FUND
The emerging debt market, as measured by the JPM EMBI+, posted a solid 8.71%
return for the six-month period ended March 31, 2004. This market benefited
from ample global liquidity and a low interest rate environment. Additionally,
supply was very limited, while investor demand remained strong. The Latin
countries outpaced non-Latin countries, posting returns of 10.00% versus 6.93%,
respectively. Individual countries outperforming within the emerging market
debt class included Ecuador at 40.05%, Turkey at 16.50%, Venezuela at 14.07%
and Brazil at 12.39%.
Within the high yield sector, as spread dispersion among industries narrowed
during the period under review, our strategy turned more toward specific issuer
selection and diversifying the Fund's holdings across industry sectors. One of
the Fund's largest industry overweight positions continued to be wireless
communications. Within the wireless sector, we were focused on rural providers
with the following characteristics: those that have less competition, those
that are less affected by the implementation of number portability and those
that have improved balance sheets as a result of recent capital-market
transactions. We continued to underweight the utilities industry due to
anticipated low demand growth, forecasted high gas prices and continued
capacity additions. Although some individual utility issuers represented a
substantial weighting in the index, we have taken a conservative approach,
investing only in issues that we believed have good asset protection and
sufficient financial liquidity.
Within the Fund's emerging market debt allocation, we maintained an overweight
position in Russia as credit statistics continued to improve. Russia, which was
recently upgraded by Standard & Poor's (S&P) to BB+ and is rated Baa3 by
Moody's Investors Service, has strong gross domestic product momentum and
little need to issue new debt. The country is also benefiting from high oil
prices and President Putin's appointment of a pro-reform government.
Additionally, we increased the Fund's holdings in Ecuador and Turkey. Ecuador
benefited from higher oil prices and greater output, significant structural
reforms and engagement with the International Monetary Fund (IMF). S&P raised
Turkey's rating to B+ from B during the reporting period, crediting the
government's efforts to comply with targets set by the IMF and its resolve to
implement reforms. As a result, we added to the Fund's position in Turkey. We
also decreased the Fund's holdings in Mexico as a result of stalled growth due
to poor external demand, mainly from the U.S., and loss of competitiveness in
Mexico's manufacturing sector. Lastly, we reduced the Fund's duration exposure
in Brazil due to concerns over fundamentals, inflation worries and Brazil's
Central Bank's possible inability to continue reducing interest rates.
Political scandal and subsequent missteps have caused the Lula administration
to lose much of the political goodwill it had in 2003. In addition, we have
reduced the Fund's leverage and scaled back the interest rate duration of the
Fund due to the prospect of tighter monetary policy in the U.S.
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ACM MANAGED DOLLAR INCOME FUND o 3
Portfolio Summary
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PORTFOLIO SUMMARY
March 31, 2004 (unaudited)
INCEPTION DATE
10/22/93
PORTFOLIO STATISTICS
Net Assets ($mil): $183.3
SECURITY TYPE
54.4% Sovereign Debt Obligations
42.9% Corporate Debt Obligations [PIE CHART OMITTED]
0.6% Preferred Stock
2.1% Short-Term
All data as of March 31, 2004. The Fund's security type breakdown is expressed
as a percentage of total investments (excluding security lending collateral)
and may vary over time.
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4 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
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PORTFOLIO OF INVESTMENTS
March 31, 2004 (unaudited)
Principal
Amount
(000) U.S. $ Value
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SOVEREIGN DEBT OBLIGATIONS-71.9%
Argentina-0.5%
Republic of Argentina FRN
1.234%, 8/03/12(a) $ 1,475 $ 984,562
-------------
Belize-0.4%
Government of Belize
9.50%, 8/15/12 700 731,500
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Brazil-11.1%
Republic of Brazil
11.00%, 8/17/40(b) 3,556 3,797,808
12.75%, 1/15/20 1,550 1,890,225
14.50%, 10/15/09 230 293,365
Republic of Brazil-DCB FRN
Series L
2.0625%, 4/15/12(a) 3,400 2,975,000
C-Bonds
8.00%, 4/15/14(c) 11,686 11,393,929
-------------
20,350,327
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Bulgaria-1.1%
Republic of Bulgaria
8.25%, 1/15/15(d) 1,624 1,981,280
-------------
Colombia-3.1%
Republic of Colombia
10.75%, 1/15/13 720 863,640
11.75%, 2/25/20(c) 3,790 4,843,620
-------------
5,707,260
-------------
Ecuador-2.8%
Republic of Ecuador
7.00%, 8/15/30(a)(c)(d) 5,070 4,476,810
12.00%, 11/15/12 700 716,450
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5,193,260
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El Salvador-0.3%
Republic of El Salvador
8.50%, 7/25/11(d) 400 461,000
-------------
Indonesia-0.5%
Republic of Indonesia
6.75%, 3/10/14(d) 820 811,800
-------------
Jamaica-0.4%
Government of Jamaica
11.75%, 5/15/11(d) 565 651,163
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_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 5
Portfolio of Investments
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Principal
Amount
(000) U.S. $ Value
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Mexico-9.2%
United Mexican States
8.125%, 12/30/19(c) $8,331 $ 9,872,235
11.375%, 9/15/16(c) 4,650 7,040,100
-------------
16,912,335
-------------
Panama-1.6%
Republic of Panama
8.875%, 9/30/27 200 217,000
9.375%, 4/01/29 1,275 1,453,500
10.75%, 5/15/20 1,050 1,319,325
-------------
2,989,825
-------------
Peru-2.7%
Republic of Peru
8.75%, 11/21/33 1,125 1,132,313
9.125%, 2/21/12(c) 1,500 1,698,750
9.875%, 2/06/15(c) 1,325 1,556,213
Republic of Peru FLIRB VRN
4.50%, 3/07/17(a) 650 565,500
-------------
4,952,776
-------------
Philippines-2.0%
Republic of Philippines
8.25%, 1/15/14 25 24,500
9.00%, 2/15/13 100 102,650
9.875%, 1/15/19(c) 2,600 2,691,000
10.625%, 3/16/25 775 842,812
-------------
3,660,962
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Russia-27.1%
Ministry Finance of Russia
Series V
3.00%, 5/14/08 900 825,750
Series VI
3.00%, 5/14/06 2,620 2,584,106
Series VII
3.00%, 5/14/11 1,940 1,600,500
Russian Federation
5.00%, 3/31/30(a)(c)(d) 41,865 41,943,497
5.00%, 3/31/30(a)(b) 2,800 2,801,400
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49,755,253
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6 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
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Principal
Amount
(000) U.S. $ Value
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Turkey-3.1%
Republic of Turkey
9.875%, 3/19/08 $ 400 $ 463,600
11.50%, 1/23/12 1,325 1,704,613
11.75%, 6/15/10 750 956,625
11.875%, 1/15/30 425 608,813
12.375%, 6/15/09 1,500 1,929,750
-------------
5,663,401
-------------
Ukraine-2.5%
Ukraine Government
6.875%, 3/04/11(d) 500 515,000
7.65%, 6/11/13 (d) 1,965 2,049,495
11.00%, 3/15/07 1,834 2,054,117
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4,618,612
-------------
Uruguay-0.4%
Republic of Uruguay
7.875%, 1/15/33 1,069 801,940
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Venezuela-3.1%
Republic of Venezuela
5.375%, 8/07/10 1,200 996,000
9.25%, 9/15/27(c) 4,215 3,747,135
Republic of Venezuela DCB FRN
Series DL
2.125%, 12/18/07(a) 952 895,209
-------------
5,638,344
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Total Sovereign Debt Securities
(cost $99,216,208) 131,865,600
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U.S. CORPORATE DEBT OBLIGATIONS-47.2%
Aerospace/Defense-0.7%
DRS Technologies, Inc.
6.875%, 11/01/13 325 339,625
K&F Industries, Inc.
Series B
9.625%, 12/15/10 190 213,750
Sequa Corp.
9.00%, 8/01/09 210 237,300
TD Funding Corp.
8.375%, 7/15/11 450 479,250
-------------
1,269,925
-------------
Air Transportation-0.5%
American Trans Air, Inc.
6.99%, 4/15/16(d) 490 416,191
Continental Airlines, Inc.
Series A
7.875%, 7/02/18 480 478,351
-------------
894,542
-------------
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 7
Portfolio of Investments
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Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Automotive-1.7%
Dana Corp.
10.125%, 3/15/10 $ 575 $ 667,000
Dura Operating Corp.
Series D
9.00%, 5/01/09(c)* 422 429,385
HLI Operating, Inc.
10.50%, 6/15/10 286 326,755
Keystone Automotive Operations, Inc.
9.75%, 11/01/13(d) 390 429,000
Sonic Automotive, Inc.
Series B
8.625%, 8/15/13 370 403,300
TRW Automotive, Inc.
9.375, 2/15/13 366 422,730
11.00%, 2/15/13 166 199,200
United Auto Group, Inc.
9.625%, 3/15/12 280 313,600
-------------
3,190,970
-------------
Broadcasting & Media-1.4%
Albritton Communications Co.
7.75%, 12/15/12 415 432,637
Emmis Communications Corp.
12.50%, 3/15/11(e) 350 336,875
PRIMEDIA, Inc.
8.00%, 5/15/13(d) 80 80,400
8.875%, 5/15/11 325 334,750
Radio One, Inc.
8.875%, 7/01/11 415 462,725
Sinclair Broadcast Group, Inc.
8.00%, 3/15/12 270 293,963
8.75%, 12/15/11 285 317,062
Young Broadcasting, Inc.
8.50%, 12/15/08 195 211,575
-------------
2,469,987
-------------
Building & Real Estate-1.6%
D.R. Horton, Inc.
6.875%, 5/01/13 340 379,100
KB HOME
7.75%, 2/01/10 560 609,000
LNR Property Corp.
7.25%, 10/15/13(d) 500 530,000
7.625%, 7/15/13 125 133,125
Meritage Corp.
9.75%, 6/01/11 470 535,800
Schuler Homes, Inc.
10.50%, 7/15/11 385 456,225
William Lyon Homes, Inc.
10.75%, 4/01/13 285 338,437
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2,981,687
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8 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Cable-2.1%
Cablevision Systems Corp.
8.00%, 4/15/12(d) $ 950 $ 950,000
CSC Holdings, Inc.
6.75%, 4/15/12(d) 935 935,000
7.625%, 7/15/18 405 429,300
DirectTV Holdings LLC
8.375%, 3/15/13 305 349,225
Echostar DBS Corp.
6.375%, 10/01/11(d) 690 736,575
Insight Midwest LP
9.75%, 10/01/09 405 424,238
-------------
3,824,338
-------------
Chemicals-1.6%
Equistar Chemical Funding LP
10.125%, 9/01/08 555 599,400
10.625%, 5/01/11 130 140,725
Huntsman Advanced Materials LLC
11.00%, 7/15/10(d) 295 334,825
Huntsman International LLC
9.875%, 3/01/09 780 861,900
Resolution Performance Products LLC
9.50%, 4/15/10 560 574,000
Westlake Chemical Corp.
8.75%, 7/15/11 445 493,950
-------------
3,004,800
-------------
Communications - Fixed-1.8%
FairPoint Communications, Inc.
11.875%, 3/01/10 300 361,500
Qwest Communications International, Inc.
7.50%, 2/15/14(d) 205 194,238
Qwest Corp.
9.125%, 3/15/12(d) 1,525 1,738,500
Time Warner Telecom, Inc.
9.25%, 2/15/14(d)* 940 954,100
-------------
3,248,338
-------------
Communications - Mobile-2.4%
ACC Escrow Corp.
10.00%, 8/01/11 660 636,900
Dobson Communications Corp.
8.875%, 10/01/13 345 272,550
Iridium LLC Capital Corp.
Series B
14.00%, 7/15/05(f) 5,000 500,000
Nextel Communications, Inc.
6.875%, 10/31/13 515 549,762
7.375%, 8/01/15 460 500,250
9.50%, 2/01/11 500 572,500
Rural Cellular Corp.
8.25%, 3/15/12(d) 240 246,600
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 9
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
TeleCorp PCS, Inc.
10.625%, 7/15/10 $ 203 $ 236,241
Tritel PCS, Inc.
10.375%, 1/15/11 234 278,657
Triton PCS, Inc.
8.75%, 11/15/11* 440 418,000
9.375%, 2/01/11* 225 218,250
-------------
4,429,710
-------------
Consumer Manufacturing-1.5%
Broder Brothers Co.
11.25%, 10/15/10(d) 500 502,500
Collins & Aikman Floorcoverings, Inc.
9.75%, 2/15/10 260 279,500
Hines Nurseries, Inc.
10.25%, 10/01/11 235 262,025
Jostens, Inc.
12.75%, 5/01/10 650 737,750
Playtex Products, Inc.
8.00%, 3/01/11(d) 340 355,300
Solo Cup Co.
8.50%, 2/15/14(d) 425 442,531
St. John Knits International, Inc.
12.50%, 7/01/09 200 217,000
-------------
2,796,606
-------------
Energy-3.3%
Chesapeake Energy Corp.
7.75%, 1/15/15 855 951,188
CITGO Petroleum Corp.
11.375%, 2/01/11 150 175,875
Frontier Oil Corp.
11.75%, 11/15/09 260 289,900
Grant Prideco, Inc.
9.00%, 12/15/09 600 679,500
Hilcorp Energy
10.50%, 9/01/10(d) 825 919,875
Northwest Pipelines Corp.
8.125%, 3/01/10 330 366,300
Pioneer Natural Resources Co.
8.875%, 4/15/05 395 419,912
Premco Refining Group, Inc.
9.50%, 2/01/13 270 315,900
Pride International, Inc.
9.375%, 5/01/07 145 147,900
Southern Natural Gas Co.
7.35%, 2/15/31 365 352,225
8.875%, 3/15/10 290 323,350
Universal Compression, Inc.
7.25%, 5/15/10 220 237,050
Westport Resources Corp.
8.25%, 11/01/11 270 301,725
_______________________________________________________________________________
10 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
XTO Energy, Inc.
6.25%, 4/15/13 $ 215 $ 238,533
7.50%, 4/15/12 250 297,739
-------------
6,016,972
-------------
Entertainment & Leisure-1.2%
Gaylord Entertainment Co.
8.00%, 11/15/13(d) 340 364,225
Six Flags, Inc.
9.50%, 2/01/09 1,050 1,113,000
9.625%, 6/01/14(d) 165 176,138
9.75%, 4/15/13 85 90,738
Universal City Development Partners
11.75%, 4/01/10 455 531,781
-------------
2,275,882
-------------
Financial-2.1%
Crum & Foster Holdings Corp.
10.375%, 6/15/13(d) 210 238,350
iStar Financial, Inc.
7.00%, 3/15/08 85 92,862
8.75%, 8/15/08 240 279,600
Markel Capital Trust I
Series B
8.71%, 1/01/46(g) 660 699,600
Nationwide CSN Trust
9.875%, 2/15/25(d) 1,000 1,105,825
PXRE Capital Trust I
8.85%, 2/01/27 510 515,100
Western Financial Bank
9.625%, 5/15/12 420 480,900
Williams Scotsman, Inc.
9.875%, 6/01/07 520 522,600
-------------
3,934,837
-------------
Food/Beverage-1.4%
Del Monte Food Co.
8.625%, 12/15/12 145 163,850
9.25%, 5/15/11 255 288,150
DIMON, Inc.
7.75%, 6/01/13 110 110,000
Series B
9.625%, 10/15/11 425 461,125
Dole Food Company, Inc.
8.625%, 5/01/09 (a) 255 280,500
8.875%, 3/15/11 145 158,775
Merisant Co.
9.50%, 7/15/13(d) 300 297,000
North Atlantic Trading Co.
9.25%, 3/01/12(d) 340 341,700
Swift & Co.
10.125%, 10/01/09 345 374,325
-------------
2,475,425
-------------
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 11
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Gaming-2.9%
Ameristar Casinos, Inc.
10.75%, 2/15/09 $ 230 $ 267,088
Argosy Gaming Co.
9.00%, 9/01/11 235 265,550
Boyd Gaming Corp.
7.75%, 12/15/12 255 274,125
Harrah's Operating Company, Inc.
7.875%, 12/15/05 230 249,550
Horseshoe Gaming Holding Corp.
Series B
8.625%, 5/15/09 195 205,237
MGM Mirage, Inc.
8.375%, 2/01/11 575 667,000
Mandalay Resort Group
10.25%, 8/01/07 570 674,025
Mohegan Tribal Gaming
6.375%, 7/15/09 140 147,700
8.375%, 7/01/11 220 244,200
Park Place Entertainment
7.00%, 4/15/13 305 333,975
7.875%, 3/15/10 295 330,400
9.375%, 2/15/07 230 259,900
Riviera Holdings Corp.
11.00%, 6/15/10 320 338,000
Turning Stone Casino Resort Enterprise
9.125%, 12/15/10(d) 290 315,375
Venetian Casino Resort, LLC
11.00%, 6/15/10 610 704,550
-------------
5,276,675
-------------
Healthcare-3.3%
Alliance Imaging, Inc.
10.375%, 4/15/11* 425 426,063
AmerisourceBergen Corp.
8.125%, 9/01/08 190 212,800
Concentra Operating Corp.
9.50%, 8/15/10(c) 200 223,000
13.00%, 8/15/09 430 475,150
Extendicare Health Services
9.50%, 7/01/10 340 381,650
Genesis HealthCare Corp.
8.00%, 10/15/13(d) 330 353,100
HCA, Inc.
7.875%, 2/01/11 655 755,230
Hanger Orthopedic Group, Inc.
10.375%, 2/15/09 380 429,400
PacifiCare Health Systems, Inc.
10.75%, 6/01/09 380 448,400
Select Medical Corp.
7.50%, 8/01/13 390 422,175
Tenet Healthcare Corp.
7.375%, 2/01/13* 330 299,475
_______________________________________________________________________________
12 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Triad Hospitals, Inc.
7.00%, 11/15/13 $ 580 $ 597,400
Series B
8.75%, 5/01/09 455 498,225
Universal Hospital Services, Inc.
10.125%, 11/01/11(d) 470 509,950
-------------
6,032,018
-------------
Hotels & Lodging-1.7%
Corrections Corp. of America
7.50%, 5/01/11 40 42,350
9.875%, 5/1/09 280 316,400
Extended Stay America, Inc.
9.875%, 6/15/11 405 477,900
Felcor Lodging LP
9.00%, 6/01/11 145 156,237
10.00%, 9/15/08 200 214,000
Host Marriott LP
9.25%, 10/01/07 105 118,125
9.50%, 1/15/07 330 371,250
La Quinta Corp.
8.875%, 3/15/11 400 454,000
Starwood Hotels & Resorts Worldwide, Inc.
7.875%, 5/01/12 430 488,050
Vail Resorts, Inc.
6.75%, 2/15/14(d) 380 382,850
-------------
3,021,162
-------------
Industrial-2.6%
AMSTED Industries, Inc.
10.25%, 10/15/11(d) 465 527,775
Case New Holland, Inc.
9.25%, 8/01/11(d) 685 777,475
Dayton Superior Corp.
10.75%, 9/15/08 245 253,575
FastenTech, Inc.
11.50%, 5/01/11(d) 350 393,750
Flowserve Corp.
12.25%, 8/15/10 370 428,275
H & E Equipment/Finance
11.125%, 6/15/12 260 271,700
NMHG Holding Co.
10.00%, 5/15/09 220 243,100
SPX Corp.
7.50%, 1/01/13 205 222,425
Terex Corp.
10.375%, 4/01/11 400 458,000
Trinity Industries, Inc.
6.50%, 3/15/14(d) 570 570,000
TriMas Corp.
9.875, 6/15/12 505 552,975
-------------
4,699,050
-------------
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 13
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Metals/Mining-0.4%
AK Steel Corp.
7.875%, 2/15/09* $ 355 $ 326,600
Peabody Energy Corp.
6.875%, 3/15/13 410 444,850
-------------
771,450
-------------
Paper & Packaging-3.3%
Anchor Glass Container Corp.
11.00%, 2/15/13 440 513,700
Ball Corp.
6.875%, 12/15/12 1,000 1,086,250
Berry Plastics Corp.
10.75%, 7/15/12 390 443,625
Crown Paper Co.
11.00%, 9/01/05(f) 5,000 1
Georgia-Pacific Corp.
9.375%, 2/01/13 765 904,612
Graphic Packaging Int'l Corp.
9.50%, 8/15/13 655 743,425
Greif Bros. Corp.
8.875%, 8/01/12 280 306,600
Owens-Brockway Glass Container, Inc.
8.875%, 2/15/09 795 862,575
Pliant Corp.
11.125%, 9/01/09 385 404,250
Russell-Stanley Holdings, Inc.
9.00%, 11/30/08(d)(g) 817 245,191
Stone Container Corp.
9.25%, 2/01/08 535 599,200
9.75%, 2/01/11 12 13,470
-------------
6,122,899
-------------
Publishing-1.9%
American Media, Inc.
8.875%, 1/15/11 105 104,738
10.25%, 5/01/09 500 526,250
Dex Media East LLC
9.875%, 11/15/09 110 124,300
12.125%, 11/15/12 320 375,200
Dex Media West LLC
8.50%, 8/15/10(d) 160 177,200
9.875%, 8/15/13(d) 625 696,875
Hollinger International Publishing, Inc.
9.00%, 12/15/10 530 585,650
Houghton Mifflin Co.
8.25%, 2/01/11 280 289,450
PEI Holdings, Inc.
11.00%, 3/15/10 205 237,800
RH Donnelley, Inc.
10.875%, 12/15/12(d) 255 305,362
-------------
3,422,825
-------------
_______________________________________________________________________________
14 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Restaurants-0.2%
Domino's, Inc.
8.25%, 7/01/11 $ 350 $ 378,875
-------------
Retail-0.5%
J.C. Penney Corporation, Inc.
8.00%, 3/01/10 490 576,975
Petro Stopping Centers LP
9.00%, 2/15/12(d) 395 408,825
-------------
985,800
-------------
Service-2.3%
Allied Waste North America
8.50%, 12/01/08 85 95,625
8.875%, 4/01/08 645 727,237
10.00%, 8/01/09 1,230 1,325,325
Coinmach Corp.
9.00%, 2/01/10 250 267,500
Iron Mountain, Inc.
7.75%, 1/15/15 115 121,325
8.625%, 4/01/13 350 383,250
National Waterworks, Inc.
10.50%, 12/01/12 235 266,725
Service Corp. International
6.50%, 3/15/08 240 250,200
7.70%, 4/15/09 240 258,600
United Rentals North America, Inc.
6.50%, 2/15/12(d) 494 494,000
-------------
4,189,787
-------------
Supermarket & Drugstore-1.2%
Couche-Tard, Inc.
7.50%, 12/15/13(d) 298 320,350
Pathmark Stores, Inc.
8.75%, 2/01/12 655 687,750
Rite Aid Corp.
9.25%, 6/01/13 75 79,875
9.50%, 2/15/11 660 735,900
Roundy's, Inc.
Series B
8.875%, 6/15/12 270 298,350
Stater Bros. Holdings, Inc.
10.75%, 8/15/06 150 158,250
-------------
2,280,475
-------------
Technology-1.3%
Fairchild Semiconductor
10.50%, 2/01/09 505 559,919
ON Semiconductor Corp.
12.00%, 3/15/10 465 576,600
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 15
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Unisys Corp.
6.875%, 3/15/10 $ 1,000 $ 1,105,000
7.875%, 4/01/08 185 191,244
-------------
2,432,763
-------------
Utilities - Electric & Gas-2.3%
AES Corporation
8.75%, 5/15/13(d) 65 71,825
9.00%, 5/15/15(d) 105 116,419
10.00%, 7/15/05(d) 175 180,370
Calpine Corp.
8.50%, 7/15/10(d) 1,215 1,123,875
NRG Energy, Inc.
8.00%, 12/15/13(d) 525 544,687
Ormat Funding Corp.
8.25%, 12/30/20(d) 395 396,975
PG&E Corp.
6.875%, 7/15/08(d) 395 433,019
SEMCO Energy, Inc.
7.125%, 5/15/08 125 131,875
7.75%, 5/15/13 235 251,450
Sierra Pacific Resources
8.625%, 3/15/14(d) 335 341,700
The Williams Companies, Inc.
8.625%, 6/01/10 485 535,925
-------------
4,128,120
-------------
Total U.S. Corporate Debt Obligations
(cost $93,221,551) 86,555,918
-------------
NON-U.S. CORPORATE DEBT
OBLIGATIONS-9.4%
Bahamas-0.1%
Sun International Hotels, Ltd.
8.875%, 8/15/11 245 273,175
-------------
Brazil-0.8%
PF Export Receivables Master Trust
6.436%, 6/01/15(d) 1,386 1,426,319
-------------
Canada-0.9%
Fairfax Financial Holdings
7.375%, 4/15/18 250 238,750
Intrawest Corp.
7.50%, 10/15/13 195 202,312
10.50%, 2/01/10 150 165,188
Norske Skog Canada, Ltd.
Series D
8.625%, 6/15/11 335 361,800
North American Energy Partners, Inc.
8.75%, 12/01/11(d)* 285 286,425
_______________________________________________________________________________
16 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Russel Metals, Inc.
6.375%, 3/01/14(d) $ 345 $ 355,350
-------------
1,609,825
-------------
France-0.3%
Crown Euro Holdings S.A.
9.50%, 3/01/11 405 456,637
-------------
Great Britian-0.6%
Dunlop Standard Aerospace Holdings PLC
11.875%, 5/15/09(d) 275 294,250
Inmarsat Finance PLC
7.625%, 6/30/12(d) 395 413,763
Royal & Sun Alliance Insurance Group PLC
8.95%, 10/15/29 450 478,059
-------------
1,186,072
-------------
Ireland-0.4%
Eircom Funding
8.25%, 8/15/13 245 274,400
MDP Acquisitions PLC
9.625%, 10/01/12 390 442,650
-------------
717,050
-------------
Kazakhstan-0.4%
Hurricane Finance BV
9.625%, 2/12/10(d) 400 446,000
Kazkommerts International BV
8.50%, 4/16/13(d) 350 372,750
-------------
818,750
-------------
Liberia-0.4%
Royal Caribbean Cruises, Ltd.
8.00%, 5/15/10 625 709,375
-------------
Mexico-2.3%
Innova S. de R.L.
9.375%, 9/19/13 2,865 3,122,850
12.875%, 4/01/07 1,003 1,008,216
-------------
4,131,066
-------------
Romania-0.3%
Mobifon Holdings BV
12.50%, 7/31/10 425 490,875
-------------
Russia-2.7%
Gazprom OAO
9.625%, 3/01/13(d) 1,220 1,407,300
Mobile Telesystems Finance S.A.
9.75%, 1/30/08(d) 150 165,750
10.95%, 12/21/04 2,130 2,247,150
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 17
Portfolio of Investments
- -------------------------------------------------------------------------------
Contracts(h),
Shares or
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Tyumen Oil Company
11.00%, 11/06/07 $ 675 $ 784,688
11.00%, 11/06/07(d) 300 351,750
-------------
4,956,638
-------------
Singapore-0.2%
Flextronics International, Ltd.
6.50%, 5/15/13 425 449,437
-------------
Total Non-U.S. Corporate Debt Obligations
(cost $15,934,356) 17,225,219
-------------
NON-CONVERTIBLE PREFERRED STOCK-0.8%
Sovereign Real Estate Investment Trust
12.00%(d) 870 1,350,675
-------------
Total Non-Convertible Preferred Stock
(cost $818,725) 1,350,675
-------------
WARRANTS-0.0%
Central Bank of Nigeria
Warrants, expiring 11/15/20(i) 1,000 0
Republic of Venezuela
Warrants, expiring 4/15/20(i) 7,140 0
-------------
Total Warrants
(cost $0) 0
-------------
CALL OPTIONS PURCHASED(i)-0.0%
Republic of Brazil C-Bonds
Expiring Apr '04 @ 105.65 1,140,000 18,240
Expiring Apr '04 @ 110.75 380,000 38
Expiring Apr '04 @ 110.80 380,000 38
-------------
Total Call Options Purchased
(cost $34,808) 18,316
-------------
PUT OPTIONS PURCHASED(i)-0.0%
Republic of Brazil C-Bonds
Expiring Apr '04 @ 105.30 760,000 3,800
Russian Federation
Expiring Apr '04 @ 97.662 760,000 76
-------------
Total Put Options Purchased
(cost $26,980) 3,876
-------------
_______________________________________________________________________________
18 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-2.8%
Repurchase Agreement-2.8%
Greenwich Capital Markets Inc.
1.03%, dated 3/31/04, due 4/01/04
in the amount of $5,100,146
(collaterized by $5,225,000 Freddie Mac
0% due 7/19/04,value-$5,235,294)
(cost $5,100,000) $ 5,100 $ 5,100,000
-------------
Total Investments Before Security
Lending Collateral-132.1%
(cost $214,352,628) 242,119,604
-------------
Investments of Cash Collateral for
Securites Loaned + -1.1%
Short-Term Investment
UBS Private Money Market Fund, LLC
1.00%
(cost $2,084,190) 2,084 2,084,190
-------------
Total Investments-133.2%
(cost $216,436,818) 244,203,794
Other assets less liabilities-(33.2)% (60,854,161)
-------------
Net Assets-100.0% $ 183,349,633
=============
CALL OPTIONS WRITTEN (see Note C)
Exercise Expiration
Description Contracts(h) Price Month U.S. $ Value
- -------------------------------------------------------------------------------
Federal Republic
of Brazil
11.00%, 8/17/40 760,000 $107.00 Apr. '04 $ (6,080)
Russian Federation
5.00%, 3/31/30 760,000 98.30 Apr. '04 (13,680)
----------
(premiums received
$26,980) $ (19,760)
==========
CREDIT DEFAULT SWAP CONTRACTS (see Note C)
Notional Unrealized
Swap Counterparty & Amount Interest Termination Appreciation/
Referenced Obligation (000) Rate Date (Depreciation)
- -------------------------------------------------------------------------------
Buy Contracts:
- --------------
Citigroup Global
Markets, Inc.
Federal Republic
of Brazil
12.25%, 3/06/30 1,150 5.85% 2/20/14 $34,040
Citigroup Global
Markets, Inc.
Federal Republic
of Hungary
4.50%, 2/06/13 350 0.50 11/26/13 (3,350)
Citigroup Global
Markets, Inc.
Federal Republic
of Philippines
10.625%, 3/16/25 510 5.60 3/20/14 5,462
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 19
Portfolio of Investments
- -------------------------------------------------------------------------------
CREDIT DEFAULT SWAP CONTRACTS (see Note C) continued
Notional Unrealized
Swap Counterparty & Amount Interest Termination Appreciation/
Referenced Obligation (000) Rate Date (Depreciation)
- -------------------------------------------------------------------------------
Buy Contracts: (continued)
Citigroup Global
Markets, Inc.
Federal Republic
of Turkey
11.875%, 1/15/30 505 3.85% 1/31/09 $ (6,201)
Deutsche Bank A.G.
Federal Republic
of Peru
9.875%, 2/06/15 700 3.90 9/20/08 (3,920)
Deutsche Bank A.G.
Federal Republic
of Turkey
11.875%, 1/15/30 1,010 3.25 1/24/09 12,756
Deutsche Bank A.G.
Federal Republic of
Venezuela
9.25%, 9/15/27 600 3.65 1/20/06 11,124
Sale Contracts:
Citigroup Global
Markets, Inc.
Federal Republic
of Brazil
12.25%, 3/06/30 1,000 6.35 8/20/05 54,600
Citigroup Global
Markets, Inc.
Federal Republic
of Brazil
12.25%, 3/06/30 1,150 5.26 2/20/09 (21,505)
Citigroup Global
Markets, Inc.
Federal Republic
of Philippines
10.625%, 3/16/25 510 4.95 3/20/09 (4,167)
Deutsche Bank A.G.
Federal Republic
of Turkey
11.875%, 1/15/30 1,262 1.50 1/24/05 3,597
Deutsche Bank A.G.
Federal Republic
of Turkey
11.875%, 1/15/30 833 1.80 7/24/05 2,083
REVERSE REPURCHASE AGREEMENTS (see Note C)
Interest
Broker Rate Maturity Amount
- -------------------------------------------------------------------------------
Deutsche Bank 1.10% 5/11/04 $ 22,000,861
JP Morgan Chase 0.80 12/31/04 5,882,222
JP Morgan Chase 0.85 4/8/04 2,399,210
JP Morgan Chase 0.00 5/6/04 6,013,280
Lehman Brothers 0.90 12/31/04 2,376,850
Merrill Lynch 0.70 12/31/04 1,213,700
Merrill Lynch 0.70 5/11/04 3,588,259
Merrill Lynch 0.75 5/11/04 1,721,554
Merrill Lynch 0.90 5/5/04 7,198,684
Merrill Lynch 0.90 5/4/04 2,970,065
Merrill Lynch 0.90 12/31/04 3,227,242
Merrill Lynch 1.10 12/31/04 6,843,059
------------
$ 65,434,986
============
_______________________________________________________________________________
20 o ACM MANAGED DOLLAR INCOME FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
* Represents entire or partial securities out on loan.
+ See Note F for securities lending information.
(a) Coupon changes periodically based upon a predetermined schedule. Stated
interest rate in effect at March 31, 2004.
(b) A position, or portion of the underlying securities has been segregated by
the Fund for the written call options outstanding at March 31, 2004. The value
of these securities amounted to $1,572,060 at March 31, 2004.
(c) Positions, or portions thereof, with an aggregate market value of
$66,732,041 have been segregated to collateralize reverse repurchase agreements.
(d) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31, 2004,
the aggregate market value of these securities amounted to $81,736,198 or 44.6%
of net assets.
(e) Indicates a security that has a zero coupon that remains in effect until a
predetermined date at which time the stated coupon rate becomes effective until
final maturity.
(f) Security is in default and is non-income producing.
(g) Illiquid security, valued at fair market value (see Note A).
(h) One contract relates to principal amount of $1.00.
(i) Non-income producing security.
Glossary of Terms:
DCB - Debt Conversion Bond
FLIRB - Front Loaded Interest Reduction Bond
FRN - Floating Rate Note
VRN - Variable Rate Note
See notes to financial statements.
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 21
Statement of Assets & Liabilities
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
March 31, 2004 (unaudited)
ASSETS
Investments in securities, at value (cost $216,436,818
-- including investment of cash collateral for securities
loaned of $2,084,190) $ 244,203,794(a)
Cash 2,121,014
Unrealized appreciation on credit default swap contracts 123,662
Interest and dividends receivable 5,293,367
Receivable for investment securities sold 2,992,720
Receivable for credit default swap contracts 1,079,645
Paydown receivable 382,269
Prepaid expenses 14,010
-------------
Total assets 256,210,481
-------------
LIABILITIES
Outstanding options written, at value (premiums
received $26,980) 19,760
Reverse repurchase agreements 65,434,986
Unrealized depreciation on credit default swap contracts 39,143
Payable for investment securities purchased 3,401,378
Payable for collateral received on securities loaned 2,084,190
Dividends to shareholders 1,527,224
Advisory fee payable 123,947
Administrative fee payable 24,789
Accrued expenses and other liabilities 205,431
-------------
Total liabilities 72,860,848
-------------
NET ASSETS $ 183,349,633
=============
COMPOSITION OF NET ASSETS
Common stock, at par $ 226,255
Additional paid-in capital 296,789,531
Distributions in excess of net investment income (1,686,596)
Accumulated net realized loss on investment transactions (139,838,272)
Net unrealized appreciation of investments 27,858,715
-------------
$ 183,349,633
=============
NET ASSET VALUE PER SHARE
(based on 22,625,536 shares outstanding) $8.10
=====
(a) Includes securities on loan with a value of $2,006,678 (see Note F).
See notes to financial statements.
_______________________________________________________________________________
22 o ACM MANAGED DOLLAR INCOME FUND
Statement of Operations
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2004 (unaudited)
INVESTMENT INCOME
Interest $ 10,332,375
Dividends 119,990 $ 10,452,365
------------
EXPENSES
Advisory fee 673,335
Administrative fee 134,671
Audit and legal 54,610
Custodian 51,366
Printing 48,541
Transfer agency 24,048
Directors' fees 21,046
Registration 16,836
Miscellaneous 24,491
------------
Total expenses before interest 1,048,944
Interest expense 295,954
------------
Total expenses 1,344,898
------------
Net investment income 9,107,467
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT TRANSACTIONS
Net realized gain on:
Investment transactions 5,168,966
Swap contracts 1,875,338
Written options 129,918
Net change in unrealized
appreciation/depreciation of:
Investments 4,756,381
Swap contracts (885,781)
Written options 7,220
------------
Net gain on investment transactions 11,052,042
------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 20,159,509
============
See notes to financial statements.
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 23
Statement of Changes in Net Assets
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Six Months
Ended Year Ended
March 31, 2004 September 30,
(unaudited) 2003
============= =============
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income $ 9,107,467 $ 18,293,615
Net realized gain on investment
transactions 7,174,222 3,184,282
Net change in unrealized
appeciation/depreciation
of investments 3,877,820 43,772,735
------------- -------------
Net increase in net assets
from operations 20,159,509 65,250,632
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income (10,670,656) (18,177,141)
COMMON STOCK TRANSACTIONS
Reinvestment of dividends resulting in
the issuance of Common Stock 679,113 1,273,690
------------- -------------
Total increase 10,167,966 48,347,181
NET ASSETS
Beginning of period 173,181,667 124,834,486
------------- -------------
End of period (including distributions in
excess of net investment income
of ($1,686,596) and ($123,407),
respectively) $ 183,349,633 $ 173,181,667
============= =============
See notes to financial statements.
_______________________________________________________________________________
24 o ACM MANAGED DOLLAR INCOME FUND
Statement of Cash Flows
- -------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
Six Months Ended March 31, 2004 (unaudited)
INCREASE (DECREASE) IN CASH FROM
OPERATION ACTIVITIES:
Interest and dividends received $ 9,774,819
Interest expense paid (249,237)
Operating expenses paid (986,348)
------------
Net increase in cash from
operating activities $ 8,539,234
INVESTING ACTIVITIES:
Purchases of long-term investments (105,136,851)
Proceeds from disposition of long-term
investments 107,169,671
Proceeds from disposition of short-term
investments, net (7,184,190)
Cash collateral received on securities
loaned 2,084,190
Net premium received on option
transactions 31,155
Net premium received on swaps
transactions 795,693
Net decrease in cash from investing
activities (2,240,332)
FINANCING ACTIVITIES: *
Cash dividends paid (8,464,319)
Proceeds from reverse repurchase
agreements 3,593,648
Net decrease in cash from financing
activities (4,870,671)
------------
Net increase in cash 1,428,231
Cash at beginning of period 692,783
------------
Cash at end of period $ 2,121,014
============
_______________________________________________________________________________
RECONCILIATION OF NET INCREASE IN NET
ASSETS FROM OPERATIONS TO NET INCREASE
IN CASH FROM OPERATING ACTIVITIES:
Net increase in net assets from
operations $ 20,159,509
ADJUSTMENTS:
Decrease in dividends and interest
receivable $ 274,023
Accretion of bond discount and amortization
of bond premium (951,569)
Increase in accrued expenses and
other assets 62,596
Increase in interest payable 46,717
Net realized gain on investment
transactions (7,174,222)
Net change in unrealized appreciation/
depreciation of investments (3,877,820)
------------
Total adjustments (11,620,275)
------------
NET INCREASE IN CASH FROM
OPERATING ACTIVITIES $ 8,539,234
============
* Non-cash financing activities not included herein consist of reinvestment of
dividends and distributions.
See notes to financial statements.
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 25
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2004 (unaudited)
NOTE A
Significant Accounting Policies
ACM Managed Dollar Income Fund, Inc. (the "Fund") was incorporated under the
laws of the State of Maryland on August 10, 1993 and is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end management
investment company. The financial statements have been prepared in conformity
with accounting principles generally accepted in the United States, which
requires management to make certain estimates and assumptions that affect the
reported amounts of assets and liabilities in the financial statements and
amounts of income and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to Alliance Capital Management, L.P. (the "Adviser"), subject to the
Board's continuing oversight, certain responsibilities with respect to the
implementation of the Pricing Policies. Pursuant to the Pricing Policies,
securities for which market quotations are readily available are valued at
their current market value. In general, the market value of these securities is
determined as follows:
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked prices on such
day. If no bid or asked prices are quoted on such day, then the security is
valued in good faith at fair value in accordance with the Pricing Policies.
Securities listed on more than one exchange are valued by reference to the
principal exchange on which the securities are traded; securities not listed on
an exchange but traded on The Nasdaq Stock Market, Inc. ("NASDAQ") are valued
in accordance with the NASDAQ Official Closing Price; listed put or call
options are valued at the last sale price. If there has been no sale on that
day, such securities will be valued at the closing bid prices on that day; open
futures contracts and options thereon are valued using the closing settlement
price or, in the absence of such a price, the most recent quoted bid price. If
there are no quotations available for the day of valuations, the last available
closing settlement price is used; securities traded in the over-the-counter
market, (but excluding securities traded on NASDAQ) are valued at the mean of
the current bid and asked prices as reported by the National Quotation Bureau
or other comparable sources; U.S. Government securities and other debt
instruments having 60 days or less remaining until maturity are valued at
amortized cost if their original maturity was 60 days or less, or by amortizing
their fair value as of the 61st day prior to maturity if their original term to
maturity exceeded 60 days; fixed-income securities, including
_______________________________________________________________________________
26 o ACM MANAGED DOLLAR INCOME FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
mortgage backed and asset backed securities, may be valued on the basis of
prices provided by a pricing service or at a price obtained from one or more of
the major broker/dealers. In cases where broker/dealer quotes are obtained, the
Pricing Policies provide that the Adviser may establish procedures whereby
changes in market yields or spreads are used to adjust, on a daily basis, a
recently obtained quoted price on a security; and OTC and other derivatives are
valued on the basis of a quoted bid price or spread from a major broker/dealer
in such security.
Securities for which market quotations are not readily available are valued at
fair value in accordance with the Pricing Policies. The Fund fair values a
security that it holds when a significant event (e.g., an earthquake or a
major terrorist attack) occurs after the time that the latest market quotation
was established, and, as a result, such market quotation cannot be said to
represent the current market value of the security as of the time the Fund
prices its shares. Fair valuing securities is imprecise, and there is no
assurance that the Fund could dispose of the security at the price used for
determining the Fund's net asset value.
2. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially
all of its investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. Investment Income and Investment Transactions
Interest income is accrued daily. Dividend income is recorded on the
ex-dividend date. Investment transactions are accounted for on the date the
securities are purchased or sold. Investment gains and losses are determined on
the identified cost basis. The Fund accretes discounts as adjustments to
interest income. Additionally, the Fund amortizes premiums on debt securities
for financial statement reporting purposes only.
4. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in conformity with
accounting principles generally accepted in the United States. To the extent
these differences are permanent, such amounts are reclassified within the
capital accounts based on their federal tax basis treatment; temporary
differences do not require such reclassification.
5. Repurchase Agreements
The Fund's custodian or designated subcustodian will take control of securities
as collateral under repurchase agreements and determine on a daily basis that
the value of such securities are sufficient to cover the value of the
repurchase agree-
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 27
Notes to Financial Statements
- -------------------------------------------------------------------------------
ments. If the seller defaults and the value of collateral declines, or if
bankruptcy proceedings are commenced with respect to the seller of the
security, realization of collateral by the Fund may be delayed or limited.
NOTE B
Advisory, Administrative Fees and Other Transactions with Affiliates
Under the terms of an Investment Advisory Agreement, the Fund pays the Adviser
an advisory fee at an annual rate of .75 of 1% of the average adjusted weekly
net assets of the Fund. Such fee is accrued daily and paid monthly.
Under the terms of a Shareholder Inquiry Agency Agreement with Alliance Global
Investor Services, Inc. (AGIS), a wholly-owned subsidiary of the Adviser, the
Fund reimburses AGIS for costs relating to servicing phone inquiries on behalf
of the Fund. During the six months ended March 31, 2004, the Fund reimbursed to
AGIS $265.
Under the terms of an Administration Agreement, the Fund pays Princeton
Administrators, L.P. (the "Administrator") a fee at an annual rate of .15 of 1%
of the average adjusted weekly net assets of the Fund. Such fee is accrued
daily and paid monthly. The Administrator prepares certain financial and
regulatory reports for the Fund and provides clerical and other services.
NOTE C
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the six months ended March 31, 2004, were as follows:
Purchases Sales
============= =============
Investment securities (excluding
U.S. government securities) $ 105,489,923 $ 105,496,524
U.S. government securities -0- -0-
At March 31, 2004, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation and gross unrealized depreciation
(excluding written options and swap contracts) are as follows:
Gross unrealized appreciation $ 42,004,342
Gross unrealized depreciation (14,237,366)
-------------
Net unrealized appreciation $ 27,766,976
=============
1. Option Transactions
For hedging and investment purposes, the Fund may purchase and write (sell) put
and call options on U.S. and foreign government securities and foreign
currencies that are traded on U.S. and foreign securities exchanges and
over-the- counter markets.
_______________________________________________________________________________
28 o ACM MANAGED DOLLAR INCOME FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk
of loss of the premium and a change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by the premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from written options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from options
written. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium received is less than the
amount paid for the closing purchase transaction, as a realized loss. If a call
option is exercised, the premium received is added to the proceeds from the
sale of the underlying security or currency in determining whether the Fund has
realized a gain or loss. If a put option is exercised, the premium received
reduces the cost basis of the security or currency purchased by the Fund. In
writing an option, the Fund bears the market risk of an unfavorable change in
the price of the security or currency underlying the written option. Exercise
of an option written by the Fund could result in the Fund selling or buying a
security or currency at a price different from the current market value.
Transactions in written options for the six months ended March 31, 2004 were as
follows:
Number of
Contracts Premiums
(000) Received
============= =============
OPTIONS OUTSTANDING AT
SEPTEMBER 30, 2003 -0- $ -0-
Options written 8,588 156,898
Options terminated in closing purchase
transactions -0- -0-
Options expired (7,068) (129,918)
------------- -------------
OPTIONS OUTSTANDING AT
MARCH 31, 2004 1,520 $ 26,980
============= =============
2. Swap Agreements
The Fund may enter into swaps on sovereign debt obligations to hedge its
exposure to interest rates and credit risk or for investment purposes. A swap
is an agreement that obligates two parties to exchange a series of cash flows
at specified intervals based upon or calculated by reference to changes in
specified prices or rates for a specified amount of an underlying asset. The
payment flows are usually netted against each other, with the difference being
paid by one party to the other.
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 29
Notes to Financial Statements
- -------------------------------------------------------------------------------
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the swap contract. The loss incurred by
the failure of a counterparty is generally limited to the net interest payment
to be received by the Fund, and/or the termination value at the end of the
contract. Therefore the Fund considers the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the underlying securities.
The Fund records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as
interest income (or as an offset to interest income). Fluctuations in the value
of swap contracts are recorded for financial statement purposes as a component
of net change in unrealized appreciation/depreciation of investments. Realized
gains and/or losses from terminated swap contracts are included in net realized
gain or loss on investment transactions.
The Fund may enter into credit default swaps. A sell/(buy) in a credit default
swap provides, upon the occurrence of a credit event, as defined in the swap
agreement, for the Fund to buy/(sell) from/(to) the counterparty at par and
take/(deliver) the principal amount (the "Notional Amount") of the referenced
obligation. During the term of the swap agreement, the Fund receives/(pays)
semi-annual fixed interest payments from/(to) the respective counterparty,
calculated at the agreed upon interest rate applied to the Notional Amount.
Credit default swaps may involve greater risks than if a Fund had invested in
the referenced obligation directly. Credit default swaps are subject to general
market risk, liquidity risk and credit risk. If the Fund is a buyer and no
credit event occurs, it will lose its investment. In addition, the value of the
referenced obligation received by the Fund as a seller if a credit event
occurs, coupled with the periodic payments previously received, may be less
than the full notional value it pays to the buyer, resulting in a loss of value
to the Fund.
3. Reverse Repurchase Agreements
Under a reverse repurchase agreement, the Fund sells securities and agrees to
repurchase them at a mutually agreed upon date and price. At the time the Fund
enters into a reverse repurchase agreement, it will establish a segregated
account with the custodian containing liquid assets having a value at least
equal to the repurchase price.
For the six months ended March 31, 2004, the average amount of reverse
repurchase agreements outstanding was $62,862,826 and the daily weighted
average annual interest rate was 0.9310%.
_______________________________________________________________________________
30 o ACM MANAGED DOLLAR INCOME FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTE D
Capital Stock
There are 300,000,000 shares of $.01 par value common stock authorized of which
22,625,536 shares were issued and outstanding at March 31, 2004. During the six
months ended March 31, 2004 and the year ended September 30, 2003, the Fund
issued 84,915 and 182,814 shares, respectively, in connection with the Fund's
dividend reinvestment plan.
NOTE E
Risks Involved in Investing in the Fund
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will affect the
value of the Fund's investments in fixed-income debt securities such as bonds
or notes. Increases in interest rates may cause the value of the Fund's
investments to decline.
Concentration of Risk
Investing in securities of foreign companies and foreign governments involves
special risks which include the possibility of future political and economic
developments which could adversely affect the value of such securities.
Moreover, securities of many foreign companies and foreign governments and
their markets may be less liquid and their prices more volatile than those of
comparable U.S. companies and the United States government.
The Fund invests in the Sovereign Debt Obligations of countries that are
considered emerging market countries at the time of purchase. Therefore, the
Fund is susceptible to governmental factors and economic and debt restructuring
developments adversely affecting the economics of these emerging market
countries. In addition, these debt obligations may be less liquid and subject
to greater volatility than debt obligations of more developed countries.
NOTE F
Securities Lending
The Fund has entered into a securities lending agreement with AG Edwards &
Sons, Inc. (the "Lending Agent"). Under the terms of the agreement, the Lending
Agent, on behalf of the Fund, administers the lending of portfolio securities
to certain broker-dealers. In return, the Fund receives fee income from the
lending transactions or it retains a portion of interest on the investment of
any cash received as collateral. The Fund also continues to receive dividends
or interest on the securities loaned. Unrealized gain or loss on the value of
the securities loaned that may occur during the term of the loan will be
reflected in the accounts of the Fund. All loans are continuously secured by
collateral exceeding the value of the securities loaned. All collateral
consists of either cash or U.S. Government securities. The Lending Agent may
invest the cash collateral received in accordance with the investment
restrictions of the Fund in one or
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 31
Notes to Financial Statements
- -------------------------------------------------------------------------------
more of the following investments: U.S. Government or U.S. Government agency
obligations, bank obligations, corporate debt obligations, asset-backed
securities, structured products, repurchase agreements and an eligible money
market fund. The Lending Agent will indemnify the Fund for any loss resulting
from a borrower's failure to return a loaned security when due. As of March 31,
2004, the Fund had loaned securities with a value of $2,006,678 and received
cash collateral of $2,084,190, which was invested in a money market fund as
included in the portfolio of investments. For the six months ended March 31,
2004, the Fund earned fee income of $8,530, which is included in interest
income in the accompanying statement of operations.
NOTE G
Distributions to Shareholders
The tax character of distributions to be paid for the year ended September 30,
2004 will be determined at the end of the current fiscal year. The tax
character of distributions paid to shareholders during the fiscal years ended
September 30, 2003 and September 30, 2002 were as follows:
2003 2002
============= =============
Distributions paid from:
Ordinary income $ (18,177,141) $ (18,835,190)
------------- -------------
Total taxable distributions (18,177,141) (18,835,190)
Tax return of capital -0- (730,704)
------------- -------------
Total distributions paid $ (18,177,141) $ (19,565,894)
============= =============
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Undistributed ordinary income $ 124,846
Accumulated capital and other losses (146,463,599)(a)
Unrealized appreciation/(depreciation) 23,183,747(b)
-------------
Total accumulated earnings/(deficit) $(123,155,006)
=============
(a) On September 30, 2003, the Fund had a net capital loss carryforward of
$146,463,599 of which $57,455,739 expires in the year 2007, $24,635,181 expires
in the year 2008, $10,899,598 expires in the year 2009, $33,249,705 expires in
2010 and $20,223,376 expires in the year 2011. To the extent future capital
gains are offset by capital loss carryforwards, such gains will not be
distributed.
(b) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax deferral of
losses on wash sales and the difference between book and tax amortization
methods for premium.
_______________________________________________________________________________
32 o ACM MANAGED DOLLAR INCOME FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTE H
Legal Proceedings
As has been previously reported in the press, the Staff of the U.S. Securities
and Exchange Commission ("SEC") and the Office of the New York Attorney General
("NYAG") have been investigating practices in the mutual fund industry
identified as "market timing" and "late trading" of mutual fund shares. Certain
other regulatory authorities have also been conducting investigations into
these practices within the industry and have requested that Alliance Capital
Management L.P. ("Alliance Capital"), the Fund's Adviser, provide information
to them. Alliance Capital has been cooperating and will continue to cooperate
with all of these authorities. The shares of the Fund are not redeemable by the
Fund, but are traded on an exchange at prices established by the market.
Accordingly, the Fund and its shareholders are not subject to the market timing
and late trading practices that are the subject of the investigations mentioned
above or the lawsuits described below. Please see below for a description of
the agreements reached by Alliance Capital and the SEC and NYAG in connection
with the investigations mentioned above.
In addition, numerous lawsuits have been filed against Alliance Capital and
certain other defendants in which plaintiffs make claims purportedly based on
or related to the same practices that are the subject of the SEC and NYAG
investigations referred to above. Some of these lawsuits name the Fund as a
party. Management of the Fund's Adviser believes that these private lawsuits
are not likely to have a material adverse effect on the results of operations
or financial condition of the Fund.
On December 18, 2003, Alliance Capital confirmed that it had reached terms with
the SEC and the NYAG for the resolution of regulatory claims relating to the
practice of "market timing" mutual fund shares in some of the AllianceBernstein
Mutual Funds. The agreement with the SEC is reflected in an Order of the
Commission ("SEC Order"). The agreement with the NYAG is subject to final,
definitive documentation. Among the key provisions of these agreements are the
following:
(i) Alliance Capital agreed to establish a $250 million fund (the
"Reimbursement Fund") to compensate mutual fund shareholders for the adverse
effects of market timing attributable to market timing relationships described
in the SEC Order. According to the SEC Order, the Reimbursement Fund is to be
paid, in order of priority, to fund investors based on (i) their aliquot share
of losses suffered by the fund due to market timing, and (ii) a proportionate
share of advisory fees paid by such fund during the period of such market
timing;
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 33
Notes to Financial Statements
- -------------------------------------------------------------------------------
(ii) Alliance Capital agreed to reduce the advisory fees it receives from some
of the AllianceBernstein long-term, open-end retail funds, commencing January
1, 2004, for a period of at least five years; and
(iii) Alliance Capital agreed to implement changes to its governance and
compliance procedures. Additionally, the SEC Order contemplates that Alliance
Capital's registered investment company clients, including the Fund, will
introduce governance and compliance changes.
The shares of the Fund are not redeemable by the Fund, but are traded on an
exchange at prices established by the market. Accordingly, the Fund and its
shareholders are not subject to the market timing practices described in the
SEC Order and are not expected to participate in the Reimbursement Fund. Since
the Fund is a closed-end fund, it will not have its advisory fee reduced
pursuant to the terms of the agreements mentioned above.
_______________________________________________________________________________
34 o ACM MANAGED DOLLAR INCOME FUND
Financial Highlights
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Common Stock Outstanding Throughout Each Period
Six Months
Ended
March 31, Year Ended September 30,
2004 ---------------------------------------------------------------
(unaudited) 2003 2002(a) 2001 2000 1999
----------- ----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $7.68 $5.58 $6.33 $8.09 $8.39 $8.18
INCOME FROM INVESTMENT
OPERATIONS
Net investment income(b) .39 .81 .84 .98 1.08 1.25
Net realized and unrealized
gain (loss) on investment
transactions .50 2.10 (.71) (1.72) (.22) .34
Net increase (decrease)
in net asset value from
operations .89 2.91 .13 (.74) .86 1.59
LESS: DIVIDENDS AND
DISTRIBUTIONS
Dividends from net investment
income (.47) (.81) (.85) (.95) (1.02) (1.25)
Distributions in excess of
net investment income -0- -0- -0- -0- -0- (.13)
Tax return of capital -0- -0- (.03) (.07) (.14) -0-
Total dividends and
distributions (.47) (.81) (.88) (1.02) (1.16) (1.38)
Net asset value,
end of period $8.10 $7.68 $5.58 $6.33 $8.09 $8.39
Market value, end of period $8.58 $8.15 $6.29 $7.62 $8.50 $10.25
Premium/(Discount) 5.93% 6.12% 12.72% 20.38% 5.07% 22.17%
TOTAL RETURN
Total investment return
based on:(c)
Market value 11.59% 45.71% (6.14)% 3.02% (5.41)% 27.06%
Net asset value 11.85% 54.77% .23% (10.08)% 9.99% 18.69%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $183,350 $173,182 $124,834 $140,110 $179,653 $184,618
Ratios to average net assets of:
Expenses 1.50%(d) 1.72% 2.12% 2.75% 2.70% 2.46%
Expenses, excluding
interest expense(e) 1.17%(d) 1.21% 1.15% 1.13% 1.09% 1.11%
Net investment income 10.14%(d) 11.88% 10.81% 9.90% 9.55% 11.27%
Portfolio turnover rate 46% 80% 63% 129% 134% 223%
See footnote summary on page 36.
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 35
Financial Highlights
- -------------------------------------------------------------------------------
(a) As required, effective October 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year ended
September 30, 2002 was to decrease net investment income per share by $0.01,
decrease net realized and unrealized loss on investment by $0.01 and decrease
the ratio of net investment income to average net assets from 10.91% to 10.81%.
Per share, ratios and supplemental data for periods prior to October 1, 2001
have not been restated to reflect this change in presentation.
(b) Based on average shares outstanding.
(c) Total investment return is calculated assuming a purchase of common stock
on the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed for
purposes of this calculation, to be reinvested at prices obtained under the
Fund's dividend reinvestment plan. Generally, total investment return based on
net asset value will be higher than total investment return based on market
value in periods where there is an increase in the discount or a decrease in
the premium of the market value to the net asset value from the beginning to
the end of such periods. Conversely, total investment return based on net asset
value will be lower than total investment return based on market value in
periods where there is a decrease in the discount or an increase in the premium
of the market value to the net asset value from the beginning to the end of
such periods. Total investment return calculated for a period of less than one
year is not annualized.
(d) Annualized.
(e) Net of interest expense of .33%, .51%, .97%, 1.62%, 1.61%, and 1.35%,
respectively, on borrowings.
_______________________________________________________________________________
36 o ACM MANAGED DOLLAR INCOME FUND
Supplemental Proxy Information
- -------------------------------------------------------------------------------
SUPPLEMENTAL PROXY INFORMATION
(unaudited)
A Special Meeting of Shareholders of ACM Managed Dollar Income Fund, Inc. ("ACM
VIII") was held on March 25, 2004. The description of each proposal and number
of shares voted at the meeting are as follows:
Authority
Voted For Withheld
- -------------------------------------------------------------------------------
1. To elect directors Class One Nominees
(terms expire in 2007)
David H. Dievler 18,321,442 411,125
Clifford L. Michel 18,334,026 398,541
Donald J. Robinson 18,332,780 399,787
Class Three Nominee
(terms expire in 2006)
Marc O. Mayer 18,318,189 414,378
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 37
Board of Directors
- -------------------------------------------------------------------------------
BOARD OF DIRECTORS
William H. Foulk, Jr.,(1) Chairman
Marc O.Mayer, President
Ruth Block(1)
David H. Dievler(1)
John H. Dobkin(1)
Dr. James M. Hester(1)
Clifford L. Michel(1)
Donald J. Robinson(1)
OFFICERS
Paul J. DeNoon(2), Vice President
James E. Kennedy, Jr.(2), Vice President
Mark R. Manley, Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Administrator
Princeton Administrators, L.P.
P.O.Box 9095
Princeton, NJ 08543-9095
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
Dividend Paying Agent, Transfer Agent And Registrar
Equiserve Trust Company, N.A.
P.O. Box 43011
Providence, RI 02940-3011
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
Independent Auditors
Ernst & Young LLP
5 Times Square
New York,NY 10036
(1) Member of the Audit Committee.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase at market prices from time to
time shares of its Common Stock in the open market.
This report, including the financial statements therein, is transmitted to the
shareholders of ACM Managed Dollar Income Fund for their information. This is
not a prospectus, circular or representation intended for use in the purchase
of shares of the Fund or any securities mentioned in this report.
(2) Messrs. DeNoon and Kennedy are the persons responsible for the day-to-day
management of the Fund's investment portfolio.
_______________________________________________________________________________
38 o ACM MANAGED DOLLAR INCOME FUND
Alliancebernstein Family of Funds
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN FAMILY OF FUNDS
- --------------------------------------------
Wealth Strategies Funds
- --------------------------------------------
Balanced Wealth Strategy
Wealth Appreciation Strategy
Wealth Preservation Strategy
Tax-Managed Balanced Wealth Strategy*
Tax-Managed Wealth Appreciation Strategy
Tax-Managed Wealth Preservation Strategy**
- --------------------------------------------
Blended Style Funds
- --------------------------------------------
U.S. Large Cap Portfolio
International Portfolio
Tax-Managed International Portfolio
- --------------------------------------------
Growth Funds
- --------------------------------------------
Domestic
Growth Fund
Health Care Fund
Mid-Cap Growth Fund
Premier Growth Fund
Small Cap Growth Fund
Technology Fund
Global & International
All-Asia Investment Fund
Global Research Growth Fund
Global Small Cap Fund
Greater China '97 Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Biotechnology Portfolio
Premier Portfolio
Technology Portfolio
- --------------------------------------------
Value Funds
- --------------------------------------------
Domestic
Balanced Shares
Disciplined Value Fund
Growth & Income Fund
Real Estate Investment Fund
Small Cap Value Fund
Utility Income Fund
Value Fund
Global & International
Global Value Fund
International Value Fund
- --------------------------------------------
Taxable Bond Funds
- --------------------------------------------
Americas Government Income Trust
Corporate Bond Portfolio
Emerging Market Debt Fund
Global Strategic Income Trust
High Yield Fund
Multi-Market Strategy Trust
Quality Bond Portfolio
Short Duration Portfolio
U.S. Government Portfolio
- --------------------------------------------
Municipal Bond Funds
- --------------------------------------------
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
- --------------------------------------------
Intermediate Municipal Bond Funds
- --------------------------------------------
Intermediate California
Intermediate Diversified
Intermediate New York
- --------------------------------------------
Closed-End Funds
- --------------------------------------------
All-Market Advantage Fund
ACM Income Fund
ACM Government Opportunity Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
California Municipal Income Fund
National Municipal Income Fund
New York Municipal Income Fund
The Spain Fund
World Dollar Government Fund
World Dollar Government Fund II
We also offer Exchange Reserves,+ which serves as the money market fund
exchange vehicle for the AllianceBernstein mutual funds.
For more complete information on any AllianceBernstein mutual fund, including
investment objectives and policies, sales charges, expenses, risks and other
matters of importance to prospective investors, visit our web site at
www.alliancebernstein.com or call us at (800) 227-4618 for a current
prospectus. Please read the prospectus carefully before you invest or send
money.
* Formerly Growth Investors Fund.
** Formerly Conservative Investors Fund.
+ An investment in the Fund is not a deposit in a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the Fund.
_______________________________________________________________________________
ACM MANAGED DOLLAR INCOME FUND o 39
Summary of General Information
- -------------------------------------------------------------------------------
SUMMARY OF GENERAL INFORMATION
Shareholder Information
The daily net asset value of the Fund's shares is available from the Fund's
Transfer Agent by calling (800) 426-5523. The Fund also distributes its daily
net asset value to various financial publications or independent organizations
such as Lipper Analytical Services, Inc., Morningstar, Inc. and Bloomberg.
Daily market prices for the Fund's shares are published in the New York Stock
Exchange Composite Transaction section of newspapers each day. The Fund's NYSE
trading symbol is "ADF." Weekly comparative net asset value (NAV) and market
price information about the Fund is published each Monday in The Wall Street
Journal, each Sunday in The New York Times and each Saturday in Barron's and
other newspapers in a table called "Closed-End Funds."
Dividend Reinvestment Plan
Pursuant to the Fund's Dividend Reinvestment Plan shareholders whose shares are
registered in their own names may elect to have all distributions reinvested
automatically in additional shares of the Fund by Equiserve Trust Company,
N.A., as agent under the Plan. Shareholders whose shares are held in the name
of a broker or nominee should contact the broker or nominee for details. All
distributions to investors who elect not to participate in the Plan will be aid
by check mailed directly to the record holder by or under the direction of
Equiserve Trust Company, N.A. For questions concerning Shareholder account
information, or if you would like a brochure describing the Dividend
Reinvestment Plan, please call Equiserve Trust Company, N.A. at (800) 219-4218.
_______________________________________________________________________________
40 o ACM MANAGED DOLLAR INCOME FUND
ACM MANAGED DOLLAR INCOME FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
AllianceBernstein [LOGO](SM)
Investment Research and Management
(SM) This service mark used under license from
the owner, Alliance Capital Management L.P.
MDISR0304
ITEM 2. CODE OF ETHICS.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 6. SCHEDULE OF INVESTMENTS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Fund's Board of Directors since the Fund last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule
14A in its proxy statement filed with the Commission on February 23, 2004.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended)
are effective at the
reasonable assurance level based on their evaluation of
these controls and procedures as of a date within 90 days of the filing date of
this document.
(b) There were no significant changes in the registrant's internal controls that
could significantly affect these controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
ITEM 11. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
Exhibit No. DESCRIPTION OF EXHIBIT
----------- ----------------------
11 (b) (1) Certification of Principal Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
11 (b) (2) Certification of Principal Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
11 (c) Certification of Principal Executive Officer and Principal
Financial Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
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.
(Registrant): ACM Managed Dollar Income Fund, Inc.
By: /s/Marc O. Mayer
--------------------------------
Marc O. Mayer
President
Date: June 7, 2004
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/Marc O. Mayer
--------------------------------
Marc O. Mayer
President
Date: June 7, 2004
By: /s/Mark D. Gersten
-------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: June 7, 2004