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CLOSED END
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ACM Managed Dollar Income Fund
Semi-Annual Report
March 31, 2003
[LOGO] ALLIANCEBERNSTEIN(SM)
Investment Research and Management
Investment Products Offered
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
AllianceBernstein Investment Research and Management, Inc., the principal
underwriter of the AllianceBernstein mutual funds and an affiliate of Alliance
Capital Management L.P., the manager of the funds, is a member of the NASD.
LETTER TO SHAREHOLDERS
May 20, 2003
Dear Shareholder:
This report provides investment results, performance information and market
outlook for ACM Managed Dollar Income Fund (the "Fund") for the semi-annual
reporting period ended March 31, 2003.
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, 2003. 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, 2003
Returns
-----------------------------
6 Months 12 Months
---------------------------------------------------------------------
ACM Managed Dollar Income
Fund (NAV) 31.45% 10.22%
---------------------------------------------------------------------
J.P. Morgan Emerging Markets Bond
Index Plus 23.26% 15.35%
---------------------------------------------------------------------
Credit Suisse First Boston High Yield
Index 13.23% 7.52%
---------------------------------------------------------------------
Composite: 65%/35% (65% JPM EMBI+/35%
CSFBHY) 19.75% 12.61%
---------------------------------------------------------------------
* 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, 2003. All fees and
expenses related to the operation of the Fund have been deducted. Returns for
the Fund include the reinvestment of any distributions paid during each period.
Past performance is no guarantee of future results.
The unmanaged J.P. Morgan Emerging Markets Bond Index Plus is comprised of
dollar-denominated restructured sovereign bonds; a large percentage of the
index is made up of Brady bonds. The unmanaged Credit Suisse First Boston High
Yield Index is a measure of lower-rated, fixed income, non-convertible U.S.
dollar-denominated securities
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 1
meeting certain criteria developed by Credit Suisse designed to enable the
index to reflect the high yield market. The composite is from the inception of
the JPM EMBI+, which was 12/31/93. The indices are unmanaged and reflect no
fees or expenses. An investor cannot invest directly in an index, and its
results are not indicative of any specific investment, including ACM Managed
Dollar Income Fund.
Additional investment results appear on pages 6-8.
The Fund significantly outperformed its composite benchmark for the six-month
period ended March 31, 2003. This was due to both the Fund's emerging market
and high yield holdings. The Fund's use of leverage within these sectors
further contributed to its outperformance. Within the Fund's emerging market
securities, its country allocation and security selection in Brazilian and
Russian debt were the primary reasons for outperformance. In addition, security
selection within the Fund's Mexican position and the Fund's underweight
position in Turkey also contributed positively to performance.
Brazil, the top performer for the period within the index, benefited from
market friendly policies and a groundswell of support for the newly elected
Lula administration. A deceleration in inflation and stabilizing currency have
also helped support Brazilian debt. Additionally, the new administration has
committed to both tax and social security reforms. Tax reform is needed to
ensure that Brazil does not have to rely on distorting transaction taxes.
Social security reform is also crucial, as it will allow the new
administration, in the medium term, fiscal room to pursue its social aims. We
actively traded Brazil during the period, and we currently have an optimistic
outlook.
In Russia, strong consumer spending, corporate investments, credit rating
upgrades and rising financial reserves reinforced stability and growth,
providing positive returns for the Fund. In addition, rising oil prices and
export tariffs assured the country's good fiscal results. Booming retail sales,
which were a result of strong growth in incomes, also contributed to the health
of Russia's economy. Fiscal surplus is being used to build up financial
reserves intended for budgetary expenditure to cushion periods of low energy
prices. Most importantly, the latest Standard & Poor's credit rating upgrade
from BB- to BB occurred on December 5, 2002, highlighting the Russian
government's commitment to prudent fiscal policies and improved economic
management.
Within the Fund's high yield industry allocation, the primary positive
contributors to performance were its holdings in the cable and wireless
telecommunications sectors. Both of these sectors were poor performers in the
first half of the year, prior to rallying in the second half. The Fund was
overweight in both of these sectors. Cablevision and Nextel Communications,
Inc., cable and wireless telecommunication issuers, respectively, were among
the Fund's largest holdings and strongest performers during the period under
review.
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2 o ACM MANAGED DOLLAR INCOME FUND
Additionally, the Fund benefited from its underweight position in the airline
sector, which underperformed dramatically due to the bankruptcy filings by
United Airlines and U.S. Airlines.
Market Overview
The U.S. recovery stalled during the semi-annual period as hopes of a more
robust recovery faded due to economic and geopolitical uncertainty. Growth in
the fourth quarter of 2002 slowed dramatically to 1.4%, despite the U.S.
Federal Reserve's accommodative monetary policy. The initial estimate of growth
for the first quarter of 2003, which was plagued with bad weather and market
paralysis due to the war with Iraq, was a modest 1.6%. Consumer confidence
dropped during the period, and energy prices rose, both of which have
subsequently reversed since the end of the military conflict. Unemployment, a
lagging indicator, remained weak as businesses postponed new hiring, awaiting
clearer signals that the economy is recovering.
During the semi-annual period, both emerging market debt and high yield
securities outperformed other sectors within the fixed income market.
Significant inflows from investors into both emerging market debt and high
yield derived from an aversion to equity securities as well as a desire for
yield. Yields on government bonds reached record lows, driven downward by the
U.S. Federal Reserve's accommodative monetary policy and recent geopolitical
and economic uncertainty.
The emerging market debt sector, as measured by the JPM EMBI+, posted a
positive return of 23.26% for the semi-annual period under review. The sector
weathered a global economic slowdown as well as war without evidence of
contagion. Any negative impact on the asset class from the Iraq conflict was
localized to bordering Turkey. The Latin component within the index rebounded
sharply on positive economic and political developments within that region.
Latin countries outperformed non-Latin countries, returning 29.81% and 14.90%,
respectively.
Brazil (68.88%), Ecuador (51.81%) and Colombia (31.36%) posted the best returns
within the index. Ecuador has been helped by President Lucio Gutierrez's
pledges to fight corruption, honor the country's debt commitments and seek new
measures to alleviate the country's debt burden. A potential International
Monetary Fund (IMF) agreement also boosted returns in Ecuador. In the non-Latin
countries, Russia continued to post strong positive returns at 22.65%. Turkey
posted a modest 6.98%, as geopolitical concerns and the war in bordering Iraq
dampened returns. Turkey had initially failed to secure a multi-year support
package from the U.S. after the Turkish parliament voted against a resolution
allowing U.S. troops an access route to northern Iraq. Venezuela was the only
country to post negative returns (-2.36%), which was due to the economic impact
of recent strikes against President Chavez, weakness in the Bolivar and
subsequent credit rating downgrades.
The high yield market, as represented by the CSFBHY Index, returned
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 3
13.23% for the semi-annual period. High yield securities rebounded strongly as
risk aversions to that sector moderated and spreads narrowed. Investors seeking
higher yielding securities but averse to the slumping equity markets provided
significant inflows of new cash into the high yield market. Key risks that
paralyzed market activity had begun to diminish during the period. The U.S.
Federal Reserve's November rate cut and the likelihood of further fiscal
stimulus alleviated fears of a renewed recession. With the corporate governance
crisis working its way through the financial, legislative and judicial systems,
corporate managers were more focused on balance-sheet repair and improving
profitability. Defaults in high yield began to decline, and the direction of
the high yield market de-coupled from the equity market. During the period
under review, telecommunications and utilities rallied, while the airline
industry continued to fall victim to a downturn in the travel industry.
Outlook
The U.S. economy is in a transition phase given the recent end to the conflict
in Iraq. Uncertainty, which existed in the marketplace due to the Iraq
conflict, has abated, and investors are now more focused on economic
fundamentals. The economic hangover from the conflict in Iraq and continued
weak labor markets prompted us to lower our U.S. 2003 gross domestic product
(GDP) growth outlook to 2.5%. The U.S. economy still lacks solid and
broad-based growth. Although recent data releases have been somewhat
contradictory, we believe the dissipation of geopolitical uncertainties will
most likely result in the gradual strengthening of the U.S. economy as the year
progresses. We expect both the high yield and emerging market sectors to
benefit from an improving economy. Declining default rates, positive supply
technicals and significant demand are all positive indicators for the high
yield sector. Diversification of the Fund's high yield securities coupled with
selective, well-researched holdings will be key.
Within the emerging market sector, the combination of accelerating demand and
limited new supply of emerging market issuers will most likely support a
broader rally. In the near-term, however, we expect emerging markets to
experience continued volatility due to global political tensions.
In Russia, we continue to maintain the Fund's overweight position. Signs of
strong consumer and corporate spending suggest a very strong growth in incomes.
We believe that retail sales will continue to grow and remain strong as public
salaries and pensions are due to be raised by 20% in March. Exports continue to
be strong even though import growth is contained by the appreciating euro. We
believe the credit quality rating of Russia should increase in the near-term,
and if that is possible, Russia will be upgraded to an investment grade rating
within the next two years. Currently, we believe that Russia is capable of
handling the decline in oil prices as crude oil and oil product exports
continue to expand. Finally, strong foreign reserves will bode well for Russia
as the economy continues to improve.
The integration of the U.S. and Mexican economies suggest that an im-
-------------------------------------------------------------------------------
4 o ACM MANAGED DOLLAR INCOME FUND
provement in the U.S. economy would bode well for Mexico since it would
increase demand for Mexican imports.
The current economic and financial landscape remains mixed. Therefore, we will
continue to evaluate the Fund's position in Mexico.
Events in Brazil, especially the direction of policy initiatives set forth by
newly elected President da Silva, will have a significant influence on market
sentiment in 2003. We believe President da Silva will make significant strides
toward economic reform, and we remain optimistic on the country's U.S. dollar
denominated debt.
Thank you for your continued interest and investment in ACM Managed Dollar
Income Fund. We look forward to reporting to you on market activity and the
Fund's investment results in the coming periods.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Paul J. DeNoon
Paul J. DeNoon
Vice President
/s/ George D. Caffrey
George D. Caffrey
Vice President
[PHOTO] John D. Carifa
[PHOTO] Paul J. DeNoon
[PHOTO] George D. Caffrey
Paul J. DeNoon and George D. Caffrey, Portfolio Managers, have over 42 years of
combined investment experience.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 5
PERFORMANCE UPDATE
ACM MANAGED DOLLAR INCOME FUND (NAV)
GROWTH OF A $10,000 INVESTMENT
10/31/93* TO 3/31/03
ACM Managed Dollar Income Fund (NAV): $17,269
Composite: $23,611
ACM Managed Dollar
Income Fund (NAV) Composite**
-------------------------------------------------------------------------------
10/31/93* $10,000 $10,000
3/31/94 $ 9,493 $ 9,109
3/31/95 $ 8,526 $ 8,757
3/31/96 $11,966 $11,948
3/31/97 $15,963 $15,156
3/31/98 $19,379 $17,687
3/31/99 $13,866 $15,977
3/31/00 $19,972 $19,010
3/31/01 $21,517 $20,253
3/31/02 $25,007 $20,968
3/31/03 $17,269 $23,611
This chart illustrates the total value of an assumed $10,000 investment in ACM
Managed Dollar Income Fund at net asset value (NAV) (from 10/31/93* to 3/31/03)
as compared to the performance of an appropriate composite. The composite
represents 65% of the J.P. Morgan Emerging Markets Bond Index Plus (JPM EMBI+)
and 35% of the Credit Suisse First Boston High Yield (CSFBHY) Index. The
composite is from the inception of the JPM EMBI+, which was 12/31/93. For the
period 10/31/93 through 3/31/94, the J.P. Morgan Emerging Markets Bond Index
was used in place of the JPM EMBI+. All other periods used the composite
benchmark. The chart assumes the reinvestment of dividends and capital gains.
Past performance is not indicative of future results, and is not representative
of future gain or loss in capital value or dividend income.
** The unmanaged JPM EMBI+ is comprised of dollar-denominated restructured
sovereign bonds; a large percentage of the index is made up of Brady bonds. The
unmanaged 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. The indices are unmanaged and reflect no fees or expenses. When
comparing ACM Managed Dollar Income Fund to the composite shown above, you
should note that no charges or expenses are reflected in the performance of the
composite. An investor cannot invest directly in an index, and its results are
not indicative of any specific investment, including ACM Managed Dollar Income
Fund.
* Closest month-end after Fund's inception date of 10/22/93.
-------------------------------------------------------------------------------
6 o ACM MANAGED DOLLAR INCOME FUND
PERFORMANCE UPDATE
ACM MANAGED DOLLAR INCOME FUND (NAV)
HISTORY OF RETURNS
YEARLY PERIODS ENDED 3/31
ACM Managed Dollar Income Fund (NAV)
Composite*
ACM Managed Dollar Income Fund (NAV)--Yearly Periods Ended 3/31
-------------------------------------------------------------------------------
ACM Managed Dollar
Income Fund (NAV) Composite*
-------------------------------------------------------------------------------
3/31/94** -16.76% N/A
3/31/95 -14.95% -3.86%
3/31/96 49.08% 36.44%
3/31/97 35.04% 26.84%
3/31/98 26.28% 16.74%
3/31/99 -29.73% -9.67%
3/31/00 20.25% 18.99%
3/31/01 -7.24% 6.54%
3/31/02 11.05% 3.53%
3/31/03 10.22% 12.61%
Past performance is no guarantee of future results. The Fund's investment
results represent average annual returns and are based on the net asset value
(NAV). All fees and expenses related to the operation of the Fund have been
deducted. Returns for the Fund include the reinvestment of any distributions
paid during each period.
* The composite represents 65% of the J.P. Morgan Emerging Markets Bond
Index Plus (JPM EMBI+) and 35% of the Credit Suisse First Boston High Yield
(CSFBHY) Index. The composite is from the inception of the JPM EMBI+, which was
12/31/93. The unmanaged JPM EMBI+ is comprised of dollar-denominated
restructured sovereign bonds; a large percentage of the index is made up of
Brady bonds. The unmanaged 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. The indices are unmanaged and reflect no fees or
expenses. An investor cannot invest directly in an index, and its results are
not indicative of any specific investment, including ACM Managed Dollar Income
Fund.
** The Fund's return for the period ended 3/31/94 is from the Fund's
inception date of 10/22/93 through 3/31/94. The J.P. Morgan Emerging Markets
Bond Index Plus was not available until 12/31/93. Therefore, returns for the
benchmark are not available for the period ended 3/31/94.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 7
PORTFOLIO SUMMARY
March 31, 2003 (unaudited)
INCEPTION DATE
10/22/93
PORTFOLIO STATISTICS
Net Assets ($mil): $154.3
SECURITY TYPE
52.1% Sovereign
35.7% Corporate
5.5% Yankee Bonds [PIE CHART OMITTED]
4.2% Brady Bonds
1.4% Preferred Stock
1.1% Short-Term
COUNTRY BREAKDOWN
38.2% United States
22.1% Russia
13.3% Brazil [PIE CHART OMITTED]
10.5% Mexico
2.4% Philippines
2.2% Colombia
1.7% Venezuela
1.4% Peru
1.3% Luxembourg
1.3% Panama
1.0% Malaysia
4.6% Other
All data as of March 31, 2003. The Fund's security type and country breakdowns
are expressed as a percentage of total investments and may vary over time.
"Other" represents less than 1.0% weightings in each of the following
countries: Ecuador, Ukraine, Bulgaria, Turkey, Argentina, Bahamas, Belize,
Costa Rica, El Salvador, France, the Netherlands and Singapore.
-------------------------------------------------------------------------------
8 o ACM MANAGED DOLLAR INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 2003 (unaudited)
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS-76.5%
Sovereign Debt Securities-70.8%
Belize-0.6%
Government of Belize
9.50%, 8/15/12 $ 850 $ 859,506
------------
Brazil-16.0%
Banco Nacional de Desenvolvimento
6.50%, 6/15/06(a) 875 844,375
Republic of Brazil
8.875%, 4/15/24 3,550 2,319,037
11.00%, 8/17/40(b) 17,500 13,168,750
11.50%, 3/12/08 450 414,675
12.00%, 4/15/10 2,050 1,858,325
12.75%, 1/15/20 2,500 2,186,250
14.50%, 10/15/09 3,900 3,948,750
------------
24,740,162
------------
Bulgaria-0.7%
Republic of Bulgaria
8.25%, 1/15/15(a) 994 1,123,220
------------
Colombia-3.0%
Republic of Colombia
8.375%, 2/15/27 625 515,625
9.75%, 4/23/09 350 374,500
10.00%, 1/23/12 1,075 1,104,563
10.50%, 7/09/10 150 158,250
11.75%, 2/25/20 2,335 2,550,987
------------
4,703,925
------------
Costa Rica-0.3%
Republic of Costa Rica
8.05%, 1/13/13(a) 375 389,531
------------
Ecuador-1.1%
Republic of Ecuador
6.00%, 8/15/30(a)(c) 100 52,400
6.00%, 8/15/30(c) 2,625 1,375,500
12.00%, 11/15/12 275 199,787
------------
1,627,687
------------
El Salvador-0.6%
Republic of El Salvador
7.75%, 1/24/23(a) 450 475,875
8.50%, 7/25/11(a) 400 443,400
------------
919,275
------------
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 9
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Mexico-11.9%
United Mexican States
11.375%, 9/15/16(b) $13,375 $ 18,343,812
------------
Panama-0.7%
Republic of Panama
10.75%, 5/15/20 1,000 1,146,500
------------
Peru-1.6%
Republic of Peru
9.125%, 1/15/08 875 946,094
9.125%, 2/21/12 1,400 1,477,000
------------
2,423,094
------------
Philippines-3.3%
Republic of Philippines
9.875%, 1/15/19(b) 2,300 2,219,500
10.625%, 3/16/25 2,950 2,942,625
------------
5,162,125
------------
Russia-29.3%
Ministry Finance of Russia
Series V
3.00%, 5/14/08 650 555,750
Series VI
3.00%, 5/14/06 3,600 3,357,000
Russian Federation
5.00%, 3/31/30(a)(b)(c) 47,500 41,375,587
------------
45,288,337
------------
Turkey-0.7%
Republic of Turkey
11.75%, 6/15/10 1,175 1,057,500
------------
Ukraine-1.0%
Ukraine Government
11.00%, 3/15/07 1,419 1,547,772
------------
Total Sovereign Debt Securities
(cost $81,115,691) 109,332,446
------------
Non-Collateralized Brady Bonds-5.7%
Brazil-2.0%
Republic of Brazil-DCB FRN
2.625%, 4/15/12(c) 625 414,062
8.00%, 4/15/14(d) 3,386 2,683,704
------------
3,097,766
------------
Panama-1.0%
Republic of Panama PDI FRN
2.25%, 7/17/16(c) 1,833 1,502,804
------------
-------------------------------------------------------------------------------
10 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Peru-0.3%
Republic of Peru FLIRB VRN
4.50%, 3/07/17(c) $ 650 $ 517,595
------------
Venezuela-2.4%
Republic of Venezuela DCB FRN
Series DL
2.3125%, 12/18/07(c) 5,238 3,640,476
------------
Total Non-Collateralized Brady Bonds
(cost $8,231,391) 8,758,641
------------
Total Sovereign Debt Obligations
(cost $89,347,082) 118,091,087
------------
U.S. CORPORATE DEBT OBLIGATIONS-48.6%
Aerospace/Defense-0.6%
K&F Industries, Inc.
Series B
9.625%, 12/15/10 190 202,350
Hexcel Corp.
9.875%, 10/01/08(a) 95 99,512
Sequa Corp.
9.00%, 8/01/09 210 208,425
Transdigm, Inc.
10.375%, 12/01/08 360 380,700
------------
890,987
------------
Automotive-2.4%
ArvinMeritor, Inc.
8.75%, 3/01/12 325 333,125
AutoNation, Inc.
9.00%, 8/01/08 615 651,900
Collins & Aikman Products Co.
10.75%, 12/31/11 260 252,408
Cummins, Inc.
9.50%, 12/01/10(a) 190 196,650
Dana Corp.
10.125%, 3/15/10 575 590,812
Dura Operating Corp.
Series D
9.00%, 5/01/09 422 346,040
Lear Corp.
Series B
8.11%, 5/15/09 275 299,063
Stoneridge, Inc.
11.50%, 5/01/12 40 40,800
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 11
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
TRW Automotive, Inc.
9.375%, 2/15/13(a) $ 410 $ 412,050
11.00%, 2/15/13(a) 255 255,637
United Auto Group, Inc.
9.625%, 3/15/12 280 274,400
------------
3,652,885
------------
Broadcasting & Media-1.7%
Albritton Communications Co.
7.75%, 12/15/12 415 424,337
Emmis Communications Corp.
12.25%, 3/15/11(e) 285 245,100
Paxson Communications Corp.
10.75%, 7/15/08 400 436,000
12.25%, 1/15/09(e) 215 173,075
PRIMEDIA, Inc.
8.875%, 5/15/11 235 237,938
Radio One, Inc.
8.875%, 7/01/11 260 284,050
Sinclair Broadcast Group, Inc.
8.00%, 3/15/12 210 217,875
8.00%, 3/15/12(a) 60 62,250
8.75%, 12/15/11 285 304,237
Young Broadcasting, Inc.
8.50%, 12/15/08 195 207,187
10.00%, 3/01/11 90 95,850
------------
2,687,899
------------
Building & Real Estate-2.1%
Associated Materials, Inc.
9.75%, 4/15/12 205 220,375
Beazer Homes USA, Inc.
8.375%, 4/15/12 195 205,237
KB HOME
7.75%, 2/01/10 410 420,250
LNR Property Corp.
10.50%, 1/15/09 725 763,062
M.D.C Holdings, Inc.
7.00%, 12/01/12 200 209,500
Meritage Corp.
9.75%, 6/01/11 470 498,200
Schuler Homes, Inc.
10.50%, 7/15/11 385 421,575
The Ryland Group, Inc.
9.75%, 9/01/10 50 56,250
Werner Holdings Co., Inc.
Series A
10.00%, 11/15/07 200 203,000
William Lyon Homes, Inc.
10.75%, 4/01/13 285 282,862
------------
3,280,311
------------
-------------------------------------------------------------------------------
12 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Cable-2.6%
CSC Holdings, Inc.
7.625%, 7/15/18 $ 425 $ 413,312
Coaxial Communications of Central Ohio, Inc.
10.00%, 8/15/06 210 210,787
DirecTV Holdings LLC
8.375%, 3/15/13(a) 305 337,787
Echostar DBS Corp.
9.375%, 2/01/09 785 839,950
Insight Midwest LP
9.75%, 10/01/09(a) 620 643,250
Mediacom Broadband LLC
11.00%, 7/15/13 650 729,625
PanAmSat Corp.
8.50%, 2/01/12 835 864,225
------------
4,038,936
------------
Chemicals-2.3%
Airgas, Inc.
9.125%, 10/01/11 275 304,562
Equistar Chemical Funding LP
10.125%, 9/01/08 670 649,900
FMC Corp.
10.25%, 11/01/09(a) 270 298,350
Georgia Gulf Corp.
10.375%, 11/01/07 500 542,500
Lyondell Chemical Co.
Series A
9.625%, 5/01/07 640 643,200
Series B
10.875%, 5/01/09 475 444,125
Millennium America, Inc.
9.25%, 6/15/08 120 130,200
Resolution Performance Products
13.50%, 11/15/10 470 498,200
------------
3,511,037
------------
Communications - Fixed-1.2%
Alaska Communications Systems Holdings, Inc.
9.375%, 5/15/09 35 30,975
FairPoint Communications, Inc.
11.875%, 3/01/10(a) 165 174,075
Qwest Corp.
8.875%, 3/15/12(a) 1,475 1,578,250
------------
1,783,300
------------
Communications - Mobile-2.0%
Dobson/Sygnet Communications
12.25%, 12/15/08 675 644,625
Iridium LLC Capital Corp.
Series B
14.00%, 7/15/05(f) 5,000 362,500
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 13
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Nextel Communications, Inc.
9.95%, 2/15/08 $ 810 $ 848,475
TeleCorp PCS, Inc.
10.625%, 7/15/10 203 233,957
Tritel PCS, Inc.
10.375%, 1/15/11 234 270,855
Triton PCS, Inc.
8.75%, 11/15/11 205 174,250
11.00%, 5/01/08(e) 535 492,200
------------
3,026,862
------------
Consumer Manufacturing-1.7%
Applica, Inc.
10.00%, 7/31/08 210 220,500
Central Garden & Pet Company
9.125%, 2/01/13(a) 195 204,750
Collins & Aikman Floorcoverings, Inc.
9.75%, 2/15/10 260 252,200
Jostens, Inc.
12.75%, 5/01/10 650 745,875
Playtex Products, Inc.
9.375%, 6/01/11 265 288,850
Salton, Inc.
12.25%, 4/15/08 285 287,850
Sealy Mattress Co.
9.875%, 12/15/07 360 372,600
St. John Knits International, Inc.
12.50%, 7/01/09 200 207,000
------------
2,579,625
------------
Energy-4.6%
Allegheny Energy, Inc.
7.75%, 8/01/05 425 416,500
Chesapeake Energy Corp.
7.75%, 1/15/15 310 320,850
9.00%, 8/15/12 210 228,900
CITGO Petroleum Corp.
11.375%, 2/01/11(a) 1,630 1,715,575
Forest Oil Corp.
8.00%, 12/15/11 250 261,250
Frontier Oil Corp.
11.75%, 11/15/09 260 287,300
Grant Prideco, Inc.
9.00%, 12/15/09(a) 600 643,500
Grey Wolf, Inc.
8.875%, 7/01/07 265 274,937
Lomak Petroleum
8.75%, 1/15/07 295 300,162
Northwest Pipelines Corp.
8.125%, 3/01/10(a) 145 152,250
Pioneer Natural Resources Co.
8.875%, 4/15/05 395 420,405
-------------------------------------------------------------------------------
14 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Premco Refining Group, Inc.
9.50%, 2/01/13(a) $ 270 $ 291,600
Pride International, Inc.
9.375%, 5/01/07 270 281,475
Southern Natural Gas Co.
7.35%, 2/15/31 365 337,625
8.875%, 3/15/10(a) 290 307,400
Stone Energy Corp.
8.25%, 12/15/11 350 364,000
Westport Resources Corp.
8.25%, 11/01/11(a) 80 85,400
8.25%, 11/01/11 190 203,775
XTO Energy, Inc.
7.50%, 4/15/12 250 270,000
------------
7,162,904
------------
Entertainment & Leisure-0.9%
Cinemark USA, Inc.
9.00%, 2/01/13(a) 265 282,887
Premier Parks
9.75%, 6/15/07 165 160,875
10.00%, 4/01/08(e) 85 83,194
Six Flags, Inc.
9.50%, 2/01/09 600 573,000
Universal City Development Partners
11.75%, 4/01/10(a) 335 338,769
------------
1,438,725
------------
Financial-2.2%
iStar Financial, Inc.
8.75%, 8/15/08 550 590,996
Markel Capital Trust I
Series B
8.71%, 1/01/46(g) 660 560,520
Nationwide CSN Trust
9.875%, 2/15/25(a) 1,000 1,076,985
PXRE Capital Trust I
8.185%, 2/01/27 510 408,000
Western Financial Bank
9.625%, 5/15/12 420 421,050
Williams Scotsman, Inc.
9.875%, 6/01/07 340 332,350
------------
3,389,901
------------
Food/Beverage-1.2%
B&G Foods, Inc.
9.625%, 8/01/07 180 186,300
Dean Foods Co.
8.15%, 8/01/07 200 214,235
Del Monte Food Co.
8.625%, 12/15/12(a) 235 250,275
9.25%, 5/15/11 255 273,169
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 15
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
DIMON, Inc.
Series B
9.625%, 10/15/11 $175 $ 192,500
Dole Food Company, Inc.
7.25%, 5/01/09 255 266,475
8.875%, 3/15/11(a) 145 151,525
Swift & Co.
10.125%, 10/01/09(a) 255 253,725
------------
1,788,204
------------
Gaming-3.2%
Ameristar Casinos, Inc.
10.75%, 2/15/09 230 250,700
Argosy Gaming Co.
9.00%, 9/01/11 235 250,863
Boyd Gaming Corp.
7.75%, 12/15/12(a) 255 258,188
Harrah's Operating Company, Inc.
7.875%, 12/15/05 230 246,675
Horseshoe Gaming Holding Corp.
Series B
8.625%, 5/15/09 195 206,700
MGM Mirage, Inc.
8.375%, 2/01/11 575 618,125
Mandalay Resort Group
10.25%, 8/01/07 570 619,163
Mohegan Tribal Gaming
8.375%, 7/01/11 220 230,725
8.75%, 1/01/09 140 148,050
Park Place Entertainment
7.875%, 3/15/10 295 301,638
9.375%, 2/15/07 430 461,175
Riviera Holdings Corp.
11.00%, 6/15/10 210 182,175
Station Casinos, Inc.
8.375%, 2/15/08 235 252,038
Trump Holdings, Inc.
11.625%, 3/15/10(a) 310 298,375
Turning Stone Casino Resort Enterprise
9.125%, 12/15/10(a) 200 210,000
Venetian Casino Resort, LLC
11.00%, 6/15/10 360 378,450
------------
4,913,040
------------
Healthcare-3.7%
Advanced Medical Optics, Inc.
9.25%, 7/15/10 260 271,700
Alliance Imaging, Inc.
10.375%, 4/15/11 425 408,000
AmerisourceBergen Corp.
8.125%, 9/01/08 190 206,150
-------------------------------------------------------------------------------
16 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Concentra Operating Corp.
13.00%, 8/15/09 $ 430 $ 466,550
Extendicare Health Services
9.50%, 7/01/10 340 338,300
HCA, Inc.
7.875%, 2/01/11 1,655 1,855,465
Hanger Orthopedic Group, Inc.
10.375%, 2/15/09 350 376,250
Omnicare, Inc.
8.125%, 3/15/11 250 270,000
PacifiCare Health Systems, Inc.
10.75%, 06/01/09 455 495,950
Triad Hospitals, Inc.
Series B
8.75%, 5/01/09 455 493,675
11.00%, 5/15/09 245 271,950
Ventas Realty LP
9.00%, 5/01/12 235 252,625
------------
5,706,615
------------
Hotels & Lodging-1.9%
Extended Stay America, Inc.
9.875%, 6/15/11 425 419,688
Felcor Lodging LP
8.50%, 6/01/11 145 127,238
9.50%, 9/15/08 195 179,400
Host Marriott LP
9.25%, 10/01/07 315 315,000
9.50%, 1/15/07 435 435,544
La Quinta Corp.
8.875%, 3/15/11(a) 285 287,494
MeriStar Hospitality Corp.
9.125%, 1/15/11 100 84,500
MeriStar Hospitality Operating Partnership, LP
10.50%, 6/15/09 155 139,500
Starwood Hotels & Resorts Worldwide, Inc.
7.875%, 5/01/12(a) 695 695,869
Vail Resorts, Inc.
8.75%, 5/15/09 280 289,800
------------
2,974,033
------------
Industrial-1.4%
Flowserve Corp.
12.25%, 8/15/10 370 412,550
H&E Equipment/Finance
11.125%, 6/15/12 260 199,550
NMHG Holding Co.
10.00%, 5/15/09 220 235,400
Rexnord Corp.
10.125%, 12/15/12(a) 195 208,163
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 17
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
SPX Corp.
7.50%, 1/01/13 $ 395 $ 421,663
Terex Corp.
10.375%, 4/01/11 390 405,600
TriMas Corp.
9.875%, 6/15/12(a) 105 106,575
9.875%, 6/15/12 255 258,825
------------
2,248,326
------------
Metals/Mining-1.1%
Earle M. Jorgenson Company
9.75%, 6/01/12 230 238,050
Peabody Energy Corp.
6.875%, 3/15/13(a) 410 417,175
Steel Dynamics, Inc.
9.50%, 3/15/09 225 230,625
United States Steel LLC
10.75%, 8/01/08 770 754,600
------------
1,640,450
------------
Paper & Packaging-3.9%
Anchor Glass Container Corp.
11.00%, 2/15/13(a) 330 343,200
Ball Corp.
6.875%, 12/15/12(a) 1,000 1,036,250
Berry Plastics Corp.
10.75%, 7/15/12 310 328,600
Crown Paper Co.
11.00%, 9/01/05(f) 5,000 0
Georgia-Pacific Corp.
9.375%, 2/01/13(a) 820 869,200
Graphic Packaging Corp.
8.625%, 2/15/12 190 194,750
Greif Bros. Corp.
8.875%, 8/01/12 270 282,825
Huntsman Packaging Corp.
13.00%, 6/01/10 195 178,425
Owens-Brockway Glass Container, Inc.
8.875%, 2/15/09 815 845,563
Plastipak Holdings, Inc.
10.75%, 9/01/11 285 296,400
Pliant Corp.
13.00%, 6/01/10 215 196,725
Russell-Stanley Holdings, Inc.
9.00%, 11/30/08(a)(g)(h) 748 560,780
Silgan Holdings, Inc.
9.00%, 6/01/09 200 208,000
Stone Container Corp.
9.25%, 2/01/08 535 588,500
9.75%, 2/01/11 42 46,725
------------
5,975,943
------------
-------------------------------------------------------------------------------
18 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Publishing-1.8%
American Media, Inc.
8.875%, 1/15/11(a) $105 $ 113,925
10.25%, 5/01/09 500 542,500
Dex Media East LLC
9.875%, 11/15/09(a) 110 124,575
12.125%, 11/15/12(a) 320 374,400
Hollinger International Publishing, Inc.
9.00%, 12/15/10(a) 530 563,125
Houghton Mifflin Co.
8.25%, 2/01/11(a) 280 301,000
9.875%, 2/01/13(a) 100 108,500
PEI Holdings, Inc.
11.00%, 3/15/10(a) 205 215,763
RH Donnelley, Inc.
8.875%, 12/15/10(a) 135 149,513
10.875%, 12/15/12(a) 255 292,613
------------
2,785,914
------------
Retail-0.3%
J.C. Penney Corporation, Inc.
8.00%, 3/01/10 490 509,600
------------
Service-2.8%
Allied Waste North America
8.50%, 12/01/08 150 158,438
8.875%, 4/01/08 645 686,119
10.00%, 8/01/09 815 849,638
Coinmach Corp.
9.00%, 2/01/10 250 265,313
Corrections Corp. of America
9.875%, 5/1/09 310 335,575
Iron Mountain, Inc.
8.625%, 4/01/13 350 379,750
National Waterworks, Inc.
10.50%, 12/01/12(a) 220 238,700
Service Corporation International
6.50%, 3/15/08 240 231,000
7.70%, 4/15/09 650 641,875
Stewart Enterprises, Inc.
10.75%, 7/01/08 310 341,387
United Rentals, Inc.
10.75%, 4/15/08 205 213,200
------------
4,340,995
------------
Supermarket & Drugstore-1.0%
Pathmark Stores, Inc.
8.75%, 2/01/12 310 299,150
Rite Aid Corp.
11.25%, 7/01/08 815 810,925
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 19
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Roundy's, Inc.
Series B
8.875%, 6/15/12 $ 270 $ 270,000
Stater Bros. Holdings, Inc.
10.75%, 8/15/06 150 153,750
------------
1,533,825
------------
Technology-1.6%
Fairchild Semiconductor
10.50%, 2/01/09 505 568,125
ON Semiconductor Corp.
12.00%, 3/15/10(a) 635 673,100
Sanmina-SCI Corp.
10.375%, 1/15/10(a) 80 86,800
Unisys Corp.
6.875%, 3/15/10 1,000 1,015,000
7.875%, 4/01/08 185 193,325
------------
2,536,350
------------
Utilities - Electric & Gas-0.4%
AES Corporation
10.00%, 7/15/05(a) 290 295,800
Xcel Energy, Inc.
7.00%, 12/01/10 305 326,350
------------
622,150
------------
Total U.S. Corporate Debt Obligations
(cost $84,909,956) 75,018,817
------------
NON-U.S. CORPORATE DEBT OBLIGATIONS-7.5%
Argentina-0.3%
Supercanal Holdings, SA
10.75%, 11/07/02(f)(g) 3,478 417,315
------------
Bahamas-0.2%
Sun International Hotels, Ltd.
8.875%, 8/15/11 245 252,963
------------
France-0.3%
Crown Euro Holdings
9.50%, 3/01/11(a) 430 431,613
------------
Luxembourg-1.7%
Mobile Telesystems Finance S.A.
10.95%, 12/21/04 2,130 2,244,488
Tyco Int'l Group S.A.
6.75%, 2/15/11 435 417,600
------------
2,662,088
------------
Malaysia-1.3%
Petronas Capital, Ltd.
7.875%, 5/22/22(a) 1,925 2,066,942
------------
-------------------------------------------------------------------------------
20 o ACM MANAGED DOLLAR INCOME FUND
Shares or
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Mexico-2.4%
Innova S. de R.L.
12.875%, 4/01/07 $ 4,275 $ 3,787,650
------------
Netherlands-0.3%
Hurricane Finance BV
9.625%, 2/12/10(a) 400 414,500
------------
Russia-0.8%
AO Siberian Oil Company
11.50%, 2/13/07 300 334,800
Gazprom OAO
9.625%, 3/01/13(a) 500 516,250
Tyumen Oil Company
11.00%, 11/06/07(a) 300 338,625
------------
1,189,675
------------
Singapore-0.2%
Flextronics International, Ltd.
9.875%, 7/01/10 265 295,144
------------
Total Non-U.S. Corporate Debt Obligations
(cost $14,246,815) 11,517,890
------------
CONVERTIBLE PREFERRED STOCK-0.0%
PSINet, Inc.
7.00%(a)(f) 15,000 1,050
United States Steel Corp.
7.00% 2,300 95,864
------------
Total Convertible Preferred Stock
(cost $715,000) 96,914
------------
NON-CONVERTIBLE PREFERRED STOCK-1.8%
Broadwing Communications, Inc.
Series B
12.50% 880 81,400
CSC Holdings, Inc.
Series M
11.125% 14,400 1,476,000
Nextel Communications
Series E
11.125%(i) 2 2,120
Sinclair Capital
11.625% 850 90,313
Sovereign Real Estate Investment Trust
12.00%(a) 870 1,148,400
------------
Total Non-Convertible Preferred Stock
(cost $2,862,058) 2,798,233
------------
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 21
Shares or
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
COMMON STOCK, WARRANTS & RIGHTS-0.0%
Jostens, Inc. Cl. E
Warrants, expiring 5/01/10(j)(k) 655 $ 21,124
Republic of Venezuela
Warrants, expiring 4/15/20(j) 7,140 0
Russell-Stanley Holdings, Inc.
Common Stock(j)(l) 100,000 0
United Mexican States Recovery Rights(j) 3,538,000 15,921
------------
Total Common Stock, Warrants & Rights
(cost $13,100) 37,045
------------
SHORT-TERM INVESTMENT-1.6%
Time Deposit-1.6%
Societe Generale
1.38%, 4/01/03
(cost $2,400,000) $ 2,400 2,400,000
------------
Total Investments-136.0%
(cost $194,494,011) 209,959,986
Other assets less liabilities*-(36.0)% (55,613,389)
-------------
Net Assets-100.0% $154,346,597
-------------
*SECURITY LENDING INFORMATION
Includes cash collateral received of $2,838,330 for securities on loan as of
March 31, 2003 (see Note G). The lending agent invested the cash collateral in
a short-term investment as follows:
Percent
Current U.S. $ of Net
Yield Shares Value Assets
------- --------- ---------- -------
UBS Private Money
Market Fund LLC 1.29% 2,838,330 $2,838,330 1.8%
CALL OPTIONS WRITTEN(j) (See Note C) Contracts(m)
(000) U.S. $ Value
------------ -------------
Federal Republic of Brazil
C-Bonds
8.00%, 4/15/14
Expiring April '03 @ $76.87 13,545 $ (35,218)
Expiring April '03 @ $77.68 11,083 (19,949)
------------
(premiums received $29,492) $ (55,167)
------------
-------------------------------------------------------------------------------
22 o ACM MANAGED DOLLAR INCOME FUND
CREDIT DEFAULT SWAP CONTRACTS (See Note C)
Notional Unrealized
Swap Counterparty & Amount Interest Termination Appreciation/
Referenced Obligation (000) Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------
Buy Contracts:
Deutsche Bank A.G London
Federal Republic of Brazil
12.25%, 3/06/30 $ 600 17.00% 2/06/05 $(65,460)
Salomon Brothers
International Limited
Republic of Venezuela
2.3125%, 12/18/07 60 21.00 2/11/04 443
Salomon Brothers
International Limited
Republic of Venezuela
2.3125%, 12/18/07 60 21.25 2/11/05 678
Salomon Brothers
International Limited
Republic of Venezuela
2.3125%, 12/18/07 60 20.50 2/11/06 1,304
Salomon Brothers
International Limited
Republic of Venezuela
2.3125%, 12/18/07 60 20.00 2/11/07 1,272
Salomon Brothers
International Limited
Republic of Venezuela
2.3125%, 12/18/07 60 19.25 2/11/08 1,393
Sale Contracts:
Deutsche Bank A.G London
Federal Republic of Brazil
12.25%, 3/06/30 600 17.85 2/06/08 83,760
Deutsche Bank A.G London
Federal Republic of Brazil
12.25%, 3/06/30 1,500 14.50 3/08/08 46,950
---------
$ 70,340
---------
REVERSE REPURCHASE AGREEMENTS (See Note C)
Broker Interest Rate Maturity Amount
--------------- ------------- -------- -------------
Deutsche Banc 1.35% 12/31/03 $ 35,281,643
JP Morgan Chase 0.75 12/31/03 1,982,516
JP Morgan Chase 1.30 12/31/03 13,015,002
Lehman Brothers 1.30 12/31/03 10,738,764
--------------
$ 61,017,925
--------------
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 23
(a) Securities are 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, 2003,
the market value of these securities aggregated $68,263,303 or 44.2% of net
assets.
(b) Positions, or portions thereof, with an aggregate market value of
$66,138,750 have been segregated to collateralize reverse repurchase agreements.
(c) Coupon changes periodically based upon a predetermined schedule. Stated
interest rate in effect at March 31, 2003.
(d) Position, or portion thereof, with an aggregate market value of $2,683,704
has been segregated to collateralize the call options written.
(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) Coupon is paid-in-kind.
(i) Paid-in-kind preferred stock payments.
(j) Non-income producing security.
(k) Each warrant entitles the holder to purchase 1.889 shares of common stock
at $.01 per share. The warrants are exercisable until May 1, 2010.
(l) Common stock, par value is $0.01 per share.
(m) One contract relates to principal amount of $1.
Glossary of Terms:
DCB - Debt Conversion Bond
FLIRB - Front Loaded Interest Reduction Bond
FRN - Floating Rate Note
PDI - Past Due Interest
VRN - Variable Rate Note
See notes to financial statements.
-------------------------------------------------------------------------------
24 o ACM MANAGED DOLLAR INCOME FUND
STATEMENT OF ASSETS & LIABILITIES
March 31, 2003 (unaudited)
Assets
Investments in securities, at value (cost $194,494,011) $209,959,986(a)
Interest receivable 4,783,087
Collateral held for securities loaned 2,838,330
Receivable for investment securities sold 1,280,912
Net unrealized appreciation on credit default
swap contracts 70,340
Dividend receivable 40,050
Other assets 10,573
------------
Total assets 218,983,278
------------
Liabilities
Outstanding options written, at value
(premiums received $29,492) 55,167
Due to custodian 57,521
Reverse repurchase agreements 61,017,925
Payable for collateral received on securities loaned 2,838,330
Payable for investment securities purchased 390,837
Advisory fee payable 96,398
Administrative fee payable 19,278
Accrued expenses and other liabilities 161,225
------------
Total liabilities 64,636,681
------------
Net Assets $154,346,597
------------
Composition of Net Assets
Common stock, at par $ 224,498
Additional paid-in capital 295,418,146
Undistributed net investment income 15,937
Accumulated net realized loss on investment transactions (156,822,624)
Net unrealized appreciation of investments 15,510,640
------------
$154,346,597
------------
Net Asset Value Per Share
(based on 22,449,815 shares outstanding) $6.88
-----
(a) Includes securities on loan with a value of $2,712,930 (See Note G).
See notes to financial statements.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 25
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2003 (unaudited)
Investment Income
Interest $10,397,786
Dividends 150,335 $10,548,121
-----------
Expenses
Advisory fee 524,980
Administrative fee 104,998
Printing 61,240
Audit and legal 50,044
Custodian 42,570
Transfer agency 24,425
Directors' fees 15,981
Registration fees 12,201
Miscellaneous 20,289
-----------
Total expenses before interest expense 856,728
Interest expense 408,877
-----------
Total expenses 1,265,605
-----------
Net investment income 9,282,516
-----------
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized gain (loss) on:
Investment transactions (6,603,194)
Written options 20,952
Net change in unrealized
appreciation/depreciation of:
Investments 35,328,155
Written options (25,675)
-----------
Net gain on investment transactions 28,720,238
-----------
Net Increase in Net Assets from
Operations $38,002,754
-----------
See notes to financial statements.
-------------------------------------------------------------------------------
26 o ACM MANAGED DOLLAR INCOME FUND
STATEMENT OF CHANGES
IN NET ASSETS
Six Months
Ended Year Ended
March 31, 2003 September 30,
(unaudited) 2002
-------------- -------------
Increase (Decrease) in Net Assets
from Operations
Net investment income $ 9,282,516 $ 18,676,310
Net realized loss on investment transactions (6,582,242) (30,457,612)
Net change in unrealized
appeciation/depreciation
of investments 35,302,480 14,551,799
------------ -----------
Net increase in net assets from operations 38,002,754 2,770,497
Dividends and Distributions
to Shareholders from
Net investment income (9,070,304) (18,835,190)
Tax return of capital -0- (730,704)
Common Stock Transactions
Reinvestment of dividends resulting in
the issuance of Common Stock 579,661 1,520,333
------------ -----------
Total increase (decrease) 29,512,111 (15,275,064)
Net Assets
Beginning of period 124,834,486 140,109,550
------------ -----------
End of period $154,346,597 $124,834,486
------------ -----------
See notes to financial statements.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 27
STATEMENT OF CASH FLOWS
Six Months Ended March 31, 2003 (unaudited)
Increase (Decrease) in Cash from
Operating Activities:
Interest and dividends received $ 8,990,835
Interest expense paid (433,065)
Operating expenses paid (850,624)
------------
Net increase in cash from operating
activities $ 7,707,146
Investing Activities:
Purchases of long-term investments (76,342,381)
Proceeds from disposition of
long-term investments 70,529,005
Purchases of short-term investments, net (1,396,330)
Cash collateral received on
securities loaned 2,838,330
Net premium received on
option transactions 50,444
------------
Net decrease in cash from
investing activities (4,320,932)
Financing Activities:*
Cash dividends paid (8,490,643)
Due to custodian 57,521
Proceeds from reverse repurchase
agreements 5,046,667
------------
Net decrease in cash from financing
activities (3,386,455)
------------
Net decrease in cash (241)
Cash at beginning of period 241
------------
Cash at end of period $ -0-
------------
-------------------------------------------------------------------------------
Reconciliation of Net Increase in Net
Assets from Operations to Net Increase
in Cash from Operating Activities:
Net increase in net assets from operations $ 38,002,754
Adjustments:
Increase in dividends and interest
receivable $ (287,199)
Accretion of bond discount and
amortization of bond premium (1,270,087)
Increase in accrued expenses
and other liabilities 6,104
Decrease in interest payable (24,188)
Net realized loss on investment transactions 6,582,242
Net change in unrealized appreciation/
depreciation of investments (35,302,480)
------------
Total adjustments (30,295,608)
------------
Net Increase in Cash from
Operating Activities $ 7,707,146
------------
* Non-cash financing activities not included herein consist of reinvestment
of dividends and distributions.
See notes to financial statements.
-------------------------------------------------------------------------------
28 o ACM MANAGED DOLLAR INCOME FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2003 (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
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are
generally valued at the last reported sale price or, if there was no sale on
such day, the last bid price quoted on such day. If no bid prices are quoted,
then the security is valued at the mean of the bid and asked prices as obtained
on that day from one or more dealers regularly making a market in that
security. Securities traded on the over-the-counter market, and securities
listed on a foreign securities exchange whose operations are similar to the
United States over-the-counter market and securities listed on a national
securities exchange whose primary market is believed to be over-the-counter are
valued at the mean of the closing bid and asked price provided by two or more
dealers regularly making a market in such securities. U.S. government
securities and other debt securities which mature in 60 days or less are valued
at amortized cost unless this method does not represent fair value. Securities
for which market quotations are not readily available are valued at fair value
as determined in good faith by, or in accordance with procedures approved by,
the Board of Directors. Fixed income securities may be valued on the basis of
prices provided by a pricing service when such prices are believed to reflect
the fair market value of such securities. Listed put and call options purchased
by the Fund 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.
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
applicable, 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
investments are
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 29
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 premium on debt securities as adjustments to
interest income 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 agreements. 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 and Administrative Fees
Under the terms of the Investment Advisory Agreement, the Fund pays Alliance
Capital Management, L.P. (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), an affiliate of the Adviser, the Fund
reimburses AGIS for costs relating to servicing phone inquiries for the Fund.
The Fund reimbursed AGIS $1,130 during the six months ended March 31, 2003.
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 Fund's average adjusted weekly net assets of the Fund. Such fee is
accrued daily and paid monthly. The Administrator prepares financial and
regulatory reports for the Fund and provides clerical and other services.
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30 o ACM MANAGED DOLLAR INCOME FUND
NOTE C
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments,
U.S. government and government agency obligations) aggregated $74,620,513 and
$69,326,042, respectively, for the six months ended March 31, 2003. There were
no purchases or sales of U.S. government or government agency obligations for
the six months ended March 31, 2003.
At March 31, 2003, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $33,817,084 and
gross unrealized depreciation of investments was $18,351,109, resulting in net
unrealized appreciation of $15,465,975, excluding swap contracts and written
options.
1. Options Transactions
For hedging and investment purposes, the Fund purchases and writes (sells) put
and call options on U.S. and foreign government securities that are traded on
U.S. and foreign securities exchanges and over-the-counter markets.
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 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 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 writing 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 is added to the proceeds from the sale of the
underlying security 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 purchased by the Fund. In writing an option, the Fund bears the
market risk of an unfavorable change in the price of the security underlying
the written option. Exercise of an option written by the Fund could result in
the Fund selling or buying a security at a price different from the current
market value.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 31
Transactions in call options written for the six months ended March 31, 2003
are as follows:
Number of Premiums
Contracts Received
------------ ----------
Options outstanding at
September 30, 2002 -0- $ -0-
Options written 31,628,000 41,392
Options terminated in closing purchase
transactions (7,000,000) (11,900)
----------- --------
Options outstanding at
March 31, 2003 24,628,000 $ 29,492
----------- --------
2. Swap Agreements
The Fund may enter into swaps on sovereign debt obligations to hedge its
exposure to interest rate 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.
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.
The Fund may enter into credit default swaps. A sell/(buy) contract in a credit
default swap provides upon the occurrence of a credit event, as defined in the
swap agreement, the Fund will 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.
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32 o ACM MANAGED DOLLAR INCOME FUND
Credit default swaps may involve greater risks than if a Fund had invested in
the reference 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
reference 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, 2003, the average amount of reverse
repurchase agreements outstanding was $59,629,759 and the daily weighted
average interest rate was 1.36%.
NOTE D
Distributions To Common Shareholders
The tax character of distributions to be paid for the year ending September 30,
2003 will be determined at the end of the current fiscal year. The tax
character of the distributions paid during the fiscal years ended September 30,
2002 and September 30, 2001 were as follows:
2002 2001
------------- -------------
Distributions paid from:
Ordinary income $(18,835,190) $(21,047,520)
------------ ------------
Total taxable distributions (18,835,190) (21,047,520)
Tax return of capital (730,704) (1,562,731)
------------ ------------
Total distributions paid $(19,565,894) $(22,610,251)
------------ ------------
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 33
As of September 30, 2002, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses $(148,948,995)(a)
Unrealized appreciation/(depreciation) (21,279,502)(b)
-------------
Total accumulated earnings/(deficit) $(170,228,497)
=============
(a) On September 30, 2002, the Fund had a net capital loss carryforward of
$126,240,223 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 and $33,249,705 expires
in 2010. To the extent future capital gains are offset by capital loss
carryforward, such gains will not be distributed. Net capital losses incurred
after October 31, and within the taxable year are deemed to arise on the first
business day of the Fund's next taxable year. For the year ended September 30,
2002, the Fund deferred to October 1, 2002, post October capital losses of
$22,708,772.
(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 and market discount.
NOTE E
Common Stock
There are 300,000,000 shares of $.01 par value capital stock authorized, of
which 22,449,815 shares were outstanding at March 31, 2003. During the six
months ended March 31, 2003 and the year ended September 30, 2002, the Fund
issued 92,008 and 223,517 shares, respectively, in connection with the Fund's
dividend reinvestment plan.
NOTE F
Concentration of Risk
Investing in securities of foreign companies and foreign governments involves
special risks, which include the possibility of future political and economic
development, 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 economies 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 G
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 re-
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34 o ACM MANAGED DOLLAR INCOME FUND
ceived 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 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,
2003, the Fund had loaned securities with a value of $2,712,930 and received
cash collateral of $2,838,330, which was invested in a money market fund as
included in the footnotes to the accompanying portfolio of investments. For the
period ended March 31, 2003, the Fund earned fee income of $4,350 which is
included in interest income in the accompanying statement of operations.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 35
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Common Stock Outstanding Throughout Each Period
Six Months
Ended
March 31, Year Ended September 30,
2003 --------------------------------------------------------------
(unaudited) 2002(a) 2001 2000 1999 1998
--------------------------------------------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 5.58 $ 6.33 $ 8.09 $ 8.39 $ 8.18 $15.84
----- ------ ------ ------ ------ ------
Income From Investment
Operations
Net investment income(b) .41 .84 .98 1.08 1.25 1.41
Net realized and unrealized
gain (loss) on investment
transactions 1.29 (.71) (1.72) (.22) .34 (6.30)
----- ------ ------ ------ ------ ------
Net increase (decrease) in net
asset value from operations 1.70 .13 (.74) .86 1.59 (4.89)
----- ------ ------ ------ ------ ------
Less: Dividends and
Distributions
Dividends from net investment
income (.40) (.85) (.95) (1.02) (1.25) (1.56)
Distributions in excess of
net investment income -0- -0- -0- -0- (.13) -0-
Distribution in excess of
net realized gain on
investments -0- -0- -0- -0- -0- (1.21)
Tax return of capital -0- (.03) (.07) (.14) -0- -0-
----- ------ ------ ------ ------ ------
Total dividends and
distributions (.40) (.88) (1.02) (1.16) (1.38) (2.77)
----- ------ ------ ------ ------ ------
Net asset value, end of period $ 6.88 $ 5.58 $ 6.33 $ 8.09 $ 8.39 $ 8.18
----- ------ ------ ------ ------ ------
Market value, end of period $ 7.60 $ 6.29 $ 7.62 $ 8.50 $10.25 $ 9.31
----- ------ ------ ------ ------ ------
Total Return
Total investment return
based on:(c)
Market value 28.82% (6.14)% 3.02% (5.41)% 27.06% (23.44)%
Net asset value 31.45% .23% (10.08)% 9.99% 18.69% (36.22)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $154,347 $124,834 $140,110 $179,653 $184,618 $176,920
Ratios to average net assets of:
Expenses 1.81%(d) 2.12% 2.75% 2.70% 2.46% 2.56%
Expenses, excluding interest
expense(e) 1.23%(d) 1.15% 1.13% 1.09% 1.11% 1.03%
Net investment income 13.30%(d) 10.81% 9.90% 9.55% 11.27% 8.19%
Portfolio turnover rate 36% 63% 129% 134% 223% 208%
See footnote summary on page 37.
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36 o ACM MANAGED DOLLAR INCOME FUND
(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 interest expense of .58%, .97%, 1.62%, 1.61%, 1.35% and 1.53%,
respectively, on borrowings.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 37
ADDITIONAL INFORMATION
(unaudited)
Supplemental Proxy Information
A special meeting of Shareholders of ACM Managed Dollar Income Fund, Inc. was
held on March 20, 2003. A description of the proposal and number of shares
voted at the meeting are as follows:
Abstain/
Authority
Voted For Withheld
-------------------------------------------------------------------------------
1. To elect Class Two
directors: (term expires
in 2006) John D. Carifa 18,265,386 481,181
Ruth Block 18,258,148 488,419
-------------------------------------------------------------------------------
38 o ACM MANAGED DOLLAR INCOME FUND
GLOSSARY OF INVESTMENT TERMS
benchmark
A standard by which a fund's performance can be measured. A benchmark is
usually an unmanaged index, such as the Standard & Poor's 500 Stock Index or
the Lehman Brothers Aggregate Bond Index.
bond
Bonds are issued by governments or corporations when they need to raise cash.
Bonds are sold, or issued, to investors and have a maturity date, which is the
date the issuer is obligated to repay the investor for the principal, or face
amount, of the bond. Bonds also pay interest until maturity. Bonds are also
called fixed-income securities.
credit rating
Credit ratings are issued by independent organizations, such as the Standard &
Poor's Ratings group or Moody's Investors Service. These groups attempt to
assess the likelihood that the issuer of the bond will be able to make timely
payments of principal and interest on the bond, based on such factors as the
issuer's financial condition and any collateral securing these obligations.
Ratings typically range from AAA, which is the highest rating, to D, which is
the lowest rating.
index
A compilation of securities of similar types of companies that is used to
measure the investment performance of securities within that specific market.
An index is often used as a benchmark for a mutual fund. An investor cannot
invest directly in an index.
sector
A group of securities that are similar with respect to maturity, type, rating,
industry and/or coupon. Refers to a distinct part of the economy, for example,
the technology sector.
yield
The rate of return on an asset, usually referring to dividend or interest
payments, expressed as a percentage of current market price.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 39
ALLIANCE CAPITAL MANAGEMENT L.P.
Alliance Capital Management L.P. is a leading global investment management firm
with approximately $386 billion in assets under management. In recognition of
our far-reaching investment capabilities, Alliance Capital Management L.P. has
been selected by employee benefit plans for 43 of the FORTUNE 100 companies and
public retirement funds in 42 states as well as by hundreds of foundations,
endowments and foreign institutions. By sharing this institutional money
management experience with millions of mutual fund investors as well, Alliance
Capital Management L.P. stands out as a "manager of choice" for thousands of
investment professionals around the world.
At Alliance Capital Management L.P., we place a premium on investment research.
We carefully select securities based on our proprietary research, conducted by
over 570 investment professionals in 36 cities and 19 countries. Our commitment
to this process means that our mutual fund shareholders have their portfolios
managed by the same experienced analysts and portfolio managers who manage the
pension funds of some of America's largest institutional investors.
All information on Alliance Capital is as of 3/31/03.
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40 o ACM MANAGED DOLLAR INCOME FUND
BOARD OF DIRECTORS
John D. Carifa, Chairman and President
Ruth Block(1)
David H. Dievler(1)
John H. Dobkin(1)
William H. Foulk, Jr.(1)
Dr. James M. Hester(1)
Clifford L. Michel(1)
Donald J. Robinson(1)
OFFICERS
Kathleen A. Corbet, Senior Vice President
Paul J. DeNoon, Vice President
George D. Caffrey, Vice President
Edmund P. Bergan, Jr., 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.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 41
ALLIANCEBERNSTEIN FAMILY OF FUNDS
U.S. Growth Funds
Growth Fund
Growth & Income Fund
Health Care Fund
Mid-Cap Growth Fund
Premier Growth Fund
Quasar Fund
Technology Fund
Value Funds
Disciplined Value Fund
Global Value Fund
International Value Fund
Real Estate Investment Fund
Small CapValue Fund
Utility Income Fund
Value Fund
Blended Style Series
U.S. Large Cap Portfolio
Global & International Stock Funds
All-Asia Investment 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
Small Cap Growth Portfolio
Technology Portfolio
Taxable Bond Funds
Americas Government Income Trust
Corporate Bond Portfolio
Emerging Market Debt Fund
Global Strategic Income Trust
High Yield Fund
Taxable Bond Funds (continued)
Multi-Market Strategy Trust
Quality Bond Portfolio
U.S. Government Portfolio
Tax-Exempt Bond Funds
National
Intermediate Diversified
Insured National
Arizona
California
Intermediate California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Intermediate New York
Ohio
Pennsylvania
Virginia
Asset Allocation Funds
Balanced Shares
Conservative Investors Fund
Growth Investors Fund
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
AllianceBernstein also offers AllianceBernstein Exchange Reserves, which serves
as the money market fund exchange vehicle for the AllianceBernstein mutual
funds.
To obtain a prospectus for any AllianceBernstein fund, call your investment
professional, or call AllianceBernstein at (800) 227-4618 or visit our web site
at www.alliancebernstein.com.
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42 o ACM MANAGED DOLLAR INCOME FUND
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.
--------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 43
NOTES
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44 o ACM Managed Dollar Income Fund
ACM Managed Dollar Income Fund
1345 Avenue of the Americas
New York, NY 10105
[LOGO] ALLIANCEBERNSTEIN(SM)
Investment Research and Management
R These registered service marks used under
license from the owner, Alliance Capital
Management L.P.
MDISR0303