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, 2006
Date of reporting period: March 31, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
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SEMI-ANNUAL REPORT
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ACM Managed Dollar Income Fund
Semi-Annual Report
March 31, 2006
[LOGO]
ALLIANCEBERNSTEIN
INVESTMENTS
Investment Products Offered
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
The Fund's Board of Directors approved amended and restated by-laws for the
Fund effective April 1, 2006. The by-laws are an exhibit to the Fund's most
recently filed report on Form N-SAR, which is on file with the SEC and may be
accessed via the SEC's website which is at www.sec.gov. A copy is also
available upon written request to the Secretary of the Fund.
You may obtain a description of the Fund's proxy voting policies and
procedures, and information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30,
without charge. Simply visit AllianceBernstein's web site at
www.alliancebernstein.com, or go to the Securities and Exchange Commission's
(the "Commission") web site at www.sec.gov, or call AllianceBernstein(R) at
(800) 227-4618.
The Fund files its complete schedule of portfolio holdings with the Commission
for the first and third quarters of each fiscal year on Form N-Q. The Fund's
Forms N-Q are available on the Commission's web site at www.sec.gov. The Fund's
Forms N-Q may also be reviewed and copied at the Commission's Public Reference
Room in Washington, DC; information on the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330.
AllianceBernstein Investments, Inc. is an affiliate of AllianceBernstein L.P.,
the manager of the funds, and is a member of the NASD.
AllianceBernstein(R) and the AB Logo are registered trademarks and service
marks used by permission of the owner, AllianceBernstein L.P.
May 22, 2006
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, 2006. The Fund is a closed-end fund that trades under the New
York Stock Exchange symbol "ADF".
Investment Objective and Policies
This closed-end fund is designed for investors who seek high current income and
capital appreciation over a period of years. The Fund normally invests at least
35% of its assets in U.S. corporate fixed-income securities. The balance of the
Fund's investment portfolio will be invested in fixed-income securities issued
or guaranteed by foreign governments and non-U.S. corporate fixed-income
securities. Substantially all of the Fund's assets will be invested in
high-yield, high-risk securities rated below investment-grade and considered to
be predominantly speculative. For more information regarding the Fund's risks,
please see "A Word About Risk" on pages 4-5 and "Note E--Risks Involved in
Investing in the Fund" of the Notes to Financial Statements on page 35.
Investment Results
The table on page 6 shows the Fund's performance compared to its composite
benchmark, a 65%/35% blend of the J.P. Morgan Emerging Markets Bond Index Plus
(JPM EMBI+) and the Credit Suisse First Boston High Yield (CSFBHY) Index,
respectively, for the six- and 12-month periods ended March 31, 2006. The JPM
EMBI+ is a standard measure of the performance of a basket of unmanaged
emerging market debt securities. The CSFBHY Index is a standard measure of the
performance of a basket of unmanaged U.S. high yield debt securities. The
Fund's performance is compared to a composite benchmark of both indices because
this composite more closely resembles the composition of the Fund's portfolio.
The Fund underperformed its composite benchmark for the six-month period ended
March 31, 2006, but outperformed for the 12-month period.
For the six-month period, the Fund's high yield security selection,
particularly within the cable, paper/packaging, financial and health care
industries, detracted from relative performance. The Fund's security selection
within the cable industry detracted from the Fund's performance. Weakness in
the cable sector negatively impacted some of the more highly leveraged
companies. The paper/packaging industry was also hurt by higher costs and an
inability to pass those costs along to consumers with higher pricing which
negatively impacted a few high profile names. Additionally, the Fund's
underweighted position in lower-quality high yield debt detracted from its
performance. The lower-rated tiers within the high yield universe (B and
CCC-rated securities) outperformed as lower-rated debt is less sensitive to
rising interest rates.
The Fund's emerging market allocation contributed positively to relative
performance for both the six- and 12-month periods under review. Overweight
positions in Latin America, particularly Brazil and Argentina,
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ACM MANAGED DOLLAR INCOME FUND o 1
boosted the Fund's returns for both time periods. Brazil's stable growth,
central bank easing and debt buy backs helped support its bond prices,
particularly towards the end of the year when the Fund's exposure was
increased. Argentina benefited during the year from the completion of its debt
restructuring and very strong economic growth. Both Brazil and Argentina were
top performers during the reporting period.
Detracting from performance within the Fund's emerging market allocation was
security selection in Argentina. Although the Fund's country selection of
Argentina contributed positively to performance, its shorter-maturity bond
selection in the country dampened performance as Argentina's longer-duration
bonds outperformed.
The Fund's use of leverage had a neutral effect on performance during the
reporting period.
Market Review and Investment Strategy
U.S. fixed-income returns were generally weak during the semi-annual reporting
period, reflecting higher U.S. interest rates. Yields rose across the maturity
spectrum as the U.S. Federal Reserve (the "Fed") continued to increase official
rates another 100 basis points in quarter point increments during the period
under review. The Treasury yield curve finished the period almost perfectly
flat, with most rates within a few basis points of 4.8%. At the end of the
period, the Fed funds rate stood at 4.75%, 375 basis points higher than when
the Fed started tightening in June of 2004.
The emerging market debt class posted the strongest returns within fixed-income
sectors for the semi-annual period, returning 3.85% according to the JPM EMBI+.
The emerging markets continued to enjoy strong investor demand, a favorable low
global interest rate environment and strong global liquidity throughout the
period. Strong capital inflows caused currencies to appreciate which allowed
central banks in almost every emerging country to accumulate reserves--one of
the most important technical drivers supporting the sector. Improved export
demand and strong commodity prices, particularly oil, also helped select
emerging market countries. Emerging market spreads tightened to end the period
at a near record low of 192 basis points over Treasuries, representing an
overall tightening of 52 basis points during the reporting period.
Countries favored within the Fund during the period included Brazil, Venezuela,
Argentina, Peru and Panama. Brazil benefited from low inflation, a stronger
currency and aggressive interest rate cuts. Brazil's debt-to-gross domestic
product (GDP) ratio declined significantly as it began a schedule of $20
billion in debt buy backs. Venezuela benefited from continued strong oil
revenues and the potential of debt buy backs. Argentina continued to be helped
by both strong growth (9.1% in 2005) and reserve accumulation ($8.4 billion in
2005).
The Fund's exposure to Peru was increased based on strong economic growth and
strong demand for its exports. Political uncertainty in Peru un-
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2 o ACM MANAGED DOLLAR INCOME FUND
expectedly increased late in the period, however. Ollanta Humala, the
Nationalist candidate for president, rose in the polls against the more
business-friendly candidate, Lourdes Flores. Despite the uncertainty, Peru was
still favored due to its strong long-term fundamentals and indications that
Humala, if elected, would maintain current monetary and fiscal policies.
Furthermore, there are institutional limitations in place that limit Humala's
ability to change economic policies, even if he wanted to.
The high yield market, as represented by the CSFBHY Index, posted a return of
3.68% for the semi-annual period under review. High yield significantly
outperformed both investment-grade corporates and U.S. Treasuries, both of
which were hurt by rising interest rates. High yield was helped by a generally
benign environment, sound technicals and strong corporate profits. By quality,
lower-rated debt outperformed higher-rated BB-debt. Lower-rated debt, such as
B-rated and CCC-rated securities, returned 4.16% and 4.14%, respectively, while
higher-rated debt, such as BB-rated securities, returned 2.44%. On an industry
level, all major industry sectors posted positive returns.
Outperforming industries for the semi-annual period included airlines and
packaging, which returned 29.27% and 9.15%, respectively. Airlines were
supported by a more positive tone as American Airlines posted
better-than-expected fourth quarter numbers. Airlines also gained as fare
prices increased while capacity was reduced. Underperforming industries for the
period included acute care at -0.11%, the financial sector at 0.38% and the
cable/wireless industry at 0.71%. The acute care industry was negatively
impacted by a new government proposal that would reduce the amount of Medicare
reimbursements for shorter-term hospital stays. The cable/wireless industry
suffered due to increased competition, proposed regulatory legislation and a
planned merger between AT&T and BellSouth.
Although high yield credit fundamentals remained strong, high yield spreads
were at historically tight levels, while risks in the marketplace
increased--leaving little margin for error. Consequently, the Fund's risk
profile was lowered by reducing the Fund's higher-beta credit exposure.
Quantitative and fundamental research suggested that the market was not
compensating investors for taking added risk in this environment. While
industry spreads remained relatively narrow, security selection was more of a
focus in the quest to add value, with an emphasis on avoiding problem credits.
Given increased risks and a general lack of compelling opportunities, a
well-diversified portfolio was maintained with the Fund's tracking error at the
lower-end of its range. By industry, the cable, financial and wireline
industries were overweighted. Industries underweighted for the period included
paper/packaging, energy and the automotive industry.
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ACM MANAGED DOLLAR INCOME FUND o 3
HISTORICAL PERFORMANCE
An Important Note About the Value of Historical Performance
The performance on the following page represents past performance and does not
guarantee future results. Current performance may be lower or higher than the
performance information shown. Returns are annualized for periods longer than
one year. All fees and expenses related to the operation of the Fund have been
deducted. Performance assumes reinvestment of distributions and does not
account for taxes.
ACM Managed Dollar Income Fund 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 Inc., Morningstar, Inc. and Bloomberg. For additional
shareholder information regarding this Fund, please see page 47.
Benchmark Disclosure
The unmanaged J.P. Morgan Emerging Markets Bond Index Plus (JPM EMBI+) and the
unmanaged Credit Suisse First Boston High Yield (CSFBHY) Index do not reflect
fees and expenses associated with the active management of a mutual fund
portfolio. The JPM EMBI+ is comprised of dollar-denominated restructured
sovereign bonds; a large percentage of the index is made up of Brady bonds. The
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. An
investor cannot invest directly in an index, and its results are not indicative
of the performance for any specific investment, including the Fund.
A Word About Risk
The Fund may utilize additional leverage through the investment techniques of
reverse repurchase agreements and dollar rolls. Repurchase agreements involve
sales by the Fund of portfolio assets concurrently with an agreement by the
Fund to repurchase the same assets at a later date at a fixed price. Generally,
the effect of such a transaction is that the Fund can recover all or most of
the cash invested in the portfolio securities involved during the term of the
reverse repurchase agreement, while it will be able to keep the interest income
associated with those portfolio securities. Such transactions are only
advantageous if the interest cost to the Fund of the reverse repurchase
agreement transaction is less than the cost of otherwise obtaining the cash.
The Fund may enter into dollar rolls in which the Fund sells securities for
delivery in the current month and simultaneously contracts to repurchase
substantially similar (same type and coupon) securities on a specified future
date. During the roll period, the Fund forgoes principal and interest paid on
the securities. The Fund is compensated by the difference between the current
sales price and the lower forward price for the future purchase (often referred
to as the "drop") as well as by the interest earned on the cash proceeds of the
initial sale.
Reverse repurchase agreements and dollar rolls are speculative techniques and
are considered borrowings by the Fund. The effect of leverage can realize
shareholders higher returns than if the Fund were not leveraged and the use of
leverage techniques can add to net asset value (NAV). However, the risks of
such techniques are potentially a higher volatility of the NAV of the Common
Stock, potentially more volatility in the market value of the Common Stock and
the relatively greater effect on the NAV of the Common Stock caused by
favorable or adverse changes in the currency exchange rates. In addition,
changes in the interest rate environment can increase or decrease shareholder
returns. The Fund maintains coverage of at least 300%.
(Historical Performance continued on next page)
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4 o ACM MANAGED DOLLAR INCOME FUND
HISTORICAL PERFORMANCE
(continued from previous page)
To the extent that the current interest rate on the Fund's indebtedness
approaches the net return on the leveraged portion of the Fund's investment
portfolio, then the benefit to the shareholders will be reduced. If the rate on
indebtedness were to exceed the net return on the same portion of the
portfolio, then this would result in a lower rate of return for the
shareholders. Similarly, the use of leverage in a declining market can advance
the decrease of the Fund's NAV more so than if the Fund were not leveraged,
which would likely be reflected in a greater decline in the market price for
shares of Common Stock than if the Fund were not leveraged. In extreme cases,
if the Fund's current investment income were not sufficient to meet interest
payments on indebtedness or if the Fund failed to maintain the asset coverage
required by the 1940 Act, then it could be necessary for the Fund to liquidate
certain investments at a time when it may be disadvantageous to do so, thereby
reducing its NAV.
Part of the Fund's assets will be invested in foreign and emerging markets
fixed-income securities which may magnify asset value fluctuations due to
changes in foreign exchange rates and the possibility of substantial volatility
due to political and economic uncertainties in foreign countries. This may have
a significant effect on the Fund's asset value. Price fluctuations may be
caused by changes in the general level of interest rates or changes in bond
credit quality ratings. Please note, as interest rates rise, existing bond
prices fall and can cause the value of an investment in the Fund to decline.
Changes in interest rates have a greater effect on bonds with longer maturities
than on those with shorter maturities. High yield bonds, otherwise known as
"junk bonds," involve a greater risk of default and price volatility than other
bonds. Investing in non-investment grade securities presents special risks,
including credit risk. While the Fund invests principally in fixed-income
securities, in order to achieve its investment objectives, the Fund may at
times use certain types of investment derivatives, such as options, forwards
and swaps. These instruments involve risks different from, and in certain
cases, greater than, the risks presented by more traditional investments.
(Historical Performance continued on next page)
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ACM MANAGED DOLLAR INCOME FUND o 5
HISTORICAL PERFORMANCE
(continued from previous page)
THE FUND VS. ITS BENCHMARK
PERIODS ENDED MARCH 31, 2006
Returns
----------------------
6 Months 12 Months
----------------------
ACM Managed Dollar Income Fund (NAV) 3.31% 12.96%
Composite: 65% JPM EMBI+ / 35% CSFBHY Index 3.79% 12.17%
JPM EMBI+ 3.85% 15.17%
CSFBHY Index 3.68% 6.60%
The Fund's Market Price per share on March 31, 2006 was $7.40. The Fund's Net
Asset Value Price per share on March 31, 2006 was $8.21. For additional
Financial Highlights, please see page 42.
See Historical Performance and Benchmark disclosures on pages 4-5.
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6 o ACM MANAGED DOLLAR INCOME FUND
PORTFOLIO SUMMARY
March 31, 2006 (unaudited)
PORTFOLIO STATISTICS
Net Assets ($mil): $177.0
SECURITY TYPE BREAKDOWN*
[ ] 46.0% Sovereign Debt Obligations [PIE CHART OMITTED]
[ ] 47.8% Corporate Debt Obligations
[ ] 0.7% Preferred Stock
[ ] 5.5% Short-Term
* All data are as of March 31, 2006. 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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ACM MANAGED DOLLAR INCOME FUND o 7
PORTFOLIO OF INVESTMENTS
March 31, 2006 (unaudited)
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS-52.5%
Argentina-3.0%
Republic of Argentina
Zero Coupon, 12/15/35 $ 2,445 $ 220,008
8.28%, 12/31/33 337 331,501
Republic of Argentina FRN
4.889%, 8/03/12(a) 5,188 4,813,949
------------
5,365,458
Brazil-10.7%
Republic of Brazil
7.125%, 1/20/37(b) 3,776 3,700,480
8.00%, 1/15/18 2,099 2,275,316
8.25%, 1/20/34 3,469 3,821,103
8.875%, 10/14/19 555 641,857
10.50%, 7/14/14 1,238 1,541,310
12.00%, 4/15/10(b) 1,150 1,403,000
12.75%, 1/15/20(b) 2,377 3,535,787
Republic of Brazil-DCB FRN
Series L
5.25%, 4/15/12(a) 1,933 1,933,212
------------
18,852,065
Bulgaria-0.2%
Republic of Bulgaria
8.25%, 1/15/15 355 414,995
Colombia-1.4%
Republic of Colombia
10.75%, 1/15/13 237 293,643
11.75%, 2/25/20(b) 1,547 2,200,607
------------
2,494,250
Costa Rica-0.2%
Republic of Costa Rica
8.05%, 1/31/13(c) 157 169,167
8.11%, 2/01/12 212 227,900
------------
397,067
Dominican Republic-0.1%
Dominican Republic
9.50%, 9/27/11(c)* 190 204,046
Ecuador-0.6%
Republic of Ecuador
9.00%, 8/15/30(a)(c) 920 926,900
9.375%, 12/15/15(c) 201 211,050
------------
1,137,950
El Salvador-0.6%
Republic of El Salvador
7.625%, 9/21/34(c) 150 163,125
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8 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
7.65%, 6/15/35(c) $ 441 $ 461,947
8.50%, 7/25/11(c) 400 444,200
------------
1,069,272
Indonesia-1.0%
Republic of Indonesia
6.75%, 3/10/14(c) 945 940,275
6.875%, 3/09/17(c) 378 372,330
7.25%, 4/20/15(c) 376 385,024
------------
1,697,629
Lebanon-0.7%
Lebanese Republic
7.875%, 5/20/11 325 338,000
10.125%, 8/06/08 556 597,422
11.625%, 5/11/16 146 184,763
------------
1,120,185
Mexico-7.8%
United Mexican States
7.50%, 1/14/12 875 945,000
8.00%, 9/24/22 4,472 5,227,768
8.125%, 12/30/19(b) 5,135 6,033,625
11.375%, 9/15/16(b) 1,296 1,826,064
------------
14,032,457
Nigeria-0.9%
Central Bank of Nigeria
6.25%, 11/15/20 1,500 1,492,500
Panama-1.5%
Republic of Panama
6.70%, 1/26/36 597 595,806
7.125%, 1/29/26 677 693,925
7.25%, 3/15/15 50 53,000
8.875%, 9/30/27 559 679,185
9.375%, 7/23/12-4/01/29 411 509,349
9.625%, 2/08/11 135 155,250
------------
2,686,515
Peru-1.6%
Republic of Peru
7.35%, 7/21/25 411 403,602
8.375%, 5/03/16 246 266,295
8.75%, 11/21/33(b) 1,907 2,126,305
9.875%, 2/06/15 23 27,025
------------
2,823,227
Philippines-3.5%
Republic of Philippines
7.75%, 1/14/31 340 342,125
8.375%, 2/15/11 31 33,595
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ACM MANAGED DOLLAR INCOME FUND o 9
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
8.875%, 3/17/15(b) $ 1,888 $ 2,122,112
9.00%, 2/15/13 75 81,188
9.50%, 2/02/30 281 333,688
9.875%, 1/15/19(b) 2,600 3,126,500
10.625%, 3/16/25 130 168,675
------------
6,207,883
Russia-10.4%
Ministry Finance of Russia
Series V
3.00%, 5/14/08 5,795 5,483,808
Series VII
3.00%, 5/14/11 380 334,894
Russian Federation
5.00%, 3/31/30(a)(c) 10,891 11,914,754
11.00%, 7/24/18 435 623,790
------------
18,357,246
Turkey-3.2%
Republic of Turkey
6.875%, 3/17/36 1,161 1,120,365
7.375%, 2/05/25 440 456,060
11.00%, 1/14/13 610 764,940
11.50%, 1/23/12(b) 1,447 1,808,750
11.75%, 6/15/10 883 1,061,808
11.875%, 1/15/30 254 392,430
------------
5,604,353
Ukraine-0.6%
Government of Ukraine
6.875%, 3/04/11(c) 526 529,945
7.65%, 6/11/13 21 22,029
11.00%, 3/15/07 439 454,296
------------
1,006,270
Uruguay-1.0%
Republic of Uruguay
7.50%, 3/15/15 93 96,953
7.875%, 1/15/33(d) 1,062 1,101,495
9.25%, 5/17/17 505 587,063
------------
1,785,511
Venezuela-3.5%
Republic of Venezuela
5.61375%, 4/20/11 FRN(a) 120 120,348
8.50%, 10/08/14 102 114,240
9.25%, 9/15/27(b) 3,048 3,870,960
10.75%, 9/19/13 1,659 2,067,944
13.625%, 8/15/18 35 53,813
------------
6,227,305
Total Sovereign Debt Obligations
(cost $80,291,513) 92,976,184
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10 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
CORPORATE DEBT OBLIGATIONS-48.4%
Aerospace & Defense-1.2%
Alliant Techsystems, Inc.
6.75%, 4/01/16 $ 230 $ 232,875
DRS Technologies, Inc.
6.875%, 11/01/13 380 380,000
L-3 Communications Corp.
5.875%, 1/15/15 345 328,612
L-3 Financing Inc.
12.25%, 3/15/13(c) 581 601,335
Sequa Corp.
9.00%, 8/01/09 235 252,625
TD Funding Corp.
8.375%, 7/15/11 410 428,450
------------
2,223,897
Automotive-2.4%
Asbury Automotive Group, Inc.
8.00%, 3/15/14 211 211,527
Ford Motor Co.
7.45%, 7/16/31 561 416,542
Ford Motor Credit Co.
4.95%, 1/15/08 380 354,114
7.00%, 10/01/13 253 226,285
General Motors Acceptence Corp.
6.875%, 9/15/11 460 428,756
8.00%, 11/01/31 270 255,178
Hertz Corp.
8.875%, 1/01/14(c) 410 425,375
10.50%, 1/01/16(c)* 235 254,975
HLI Operating, Inc.
10.50%, 6/15/10* 306 248,625
Keystone Automotive Operations, Inc.
9.75%, 11/01/13 310 271,250
Lear Corp.
8.11%, 5/15/09* 205 190,650
TRW Automotive, Inc.
9.375%, 2/15/13 186 201,113
11.00%, 2/15/13 176 196,680
United Auto Group, Inc.
9.625%, 3/15/12 290 307,038
Visteon Corp.
7.00%, 3/10/14* 220 169,400
------------
4,157,508
Broadcasting & Media-0.8%
Albritton Communications Co.
7.75%, 12/15/12 375 376,875
Lamar Media Corp.
6.625%, 8/15/15 230 228,850
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ACM MANAGED DOLLAR INCOME FUND o 11
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Liberty Media Corp.
5.70%, 5/15/13 $ 150 $ 139,486
7.875%, 7/15/09 120 126,272
8.25%, 2/01/30 150 144,951
LIN Television Corp.
6.50%, 5/15/13 290 272,600
Sirius Satellite Radio, Inc.
9.625%, 8/01/13 190 185,250
------------
1,474,284
Building & Real Estate-2.0%
Associated Materials, Inc.
11.25%, 3/01/14(e) 650 373,750
D.R. Horton, Inc.
6.875%, 5/01/13 345 351,399
K. Hovnanian Enterprises, Inc.
7.50%, 5/15/16 185 182,385
KB HOME
7.75%, 2/01/10 480 496,126
Meritage Homes Corp.
6.25%, 3/15/15 470 415,950
M/I Homes, Inc.
6.875%, 4/01/12 470 434,750
Schuler Homes, Inc.
10.50%, 7/15/11 360 382,500
WCI Communities, Inc.
6.625%, 3/15/15 425 376,125
William Lyon Homes, Inc.
10.75%, 4/01/13 525 528,938
------------
3,541,923
Cable-3.2%
Cablevision Systems Corp.
8.00%, 4/15/12* 435 424,125
Charter Communications Operating LLC
8.00%, 4/30/12(c) 890 885,550
CSC Holdings, Inc.
7.25%, 4/15/12(c) 325 317,687
7.625%, 7/15/18 410 405,387
DirectTV Holdings LLC
6.375%, 6/15/15 480 474,000
Echostar DBS Corp.
6.375%, 10/01/11 325 317,687
Inmarsat Finance PLC (United Kingdom)
7.625%, 6/30/12 372 381,300
Insight Midwest LP
9.75%, 10/01/09 385 396,550
Intelsat Bermuda, Ltd. (Bermuda)
8.625%, 1/15/15 385 397,512
9.61375%, 1/15/12 FRN(a) 115 116,869
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12 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
PanAmSat Corp.
9.00%, 8/15/14 $ 313 $ 329,433
10.375%, 11/01/14(e) 665 478,800
Rogers Cable, Inc. (Canada)
6.75%, 3/15/15 620 632,400
------------
5,557,300
Chemicals-1.7%
Equistar Chemical Funding LP
10.125%, 9/01/08 480 510,000
10.625%, 5/01/11 145 156,963
Huntsman International LLC
9.875%, 3/01/09 330 344,850
Ineos Group Holdings PLC (United Kingdom)
8.50%, 2/15/16(c) 460 437,000
Nell AF S.a.r.l. (Luxembourg)
8.375%, 8/15/15(c)* 729 723,533
Rhodia S.A.
8.875%, 6/01/11 625 643,750
Tronox Worldwide LLC
9.50%, 12/01/12(c) 160 168,000
------------
2,984,096
Communications - Fixed-2.7%
Citizens Communications Co.
6.25%, 1/15/13 490 476,525
Eircom Funding (Ireland)
8.25%, 8/15/13 430 462,787
Hawaiian Telecom Communications, Inc.
9.75%, 5/01/13(c)* 345 346,725
Qwest Corp.
6.875%, 9/15/33 530 508,800
8.875%, 3/15/12 1,685 1,882,988
VALOR Telecom Enterprise
7.75%, 2/15/15 430 450,425
Verizon New York, Inc.
7.375%, 4/01/32 685 694,784
------------
4,823,034
Communications - Mobile-1.2%
American Tower Corp.
7.125%, 10/15/12 35 36,400
Cincinnati Bell, Inc.
7.00%, 2/15/15 180 178,200
Digicel, Ltd. (Bermuda)
9.25%, 9/01/12(c) 349 369,067
Dobson Communications Corp.
8.875%, 10/01/13 185 185,925
Nextel Communications, Inc.
5.95%, 3/15/14 240 237,606
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 13
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Rogers Wireless Communications, Inc. (Canada)
7.25%, 12/15/12 $ 335 $ 353,006
7.50%, 3/15/15 368 394,680
Rural Cellular Corp.
8.25%, 3/15/12 255 265,200
------------
2,020,084
Consumer Manufacturing-1.6%
ACCO Brands Corp.
7.625%, 8/15/15 470 446,500
Broder Brothers Co.
11.25%, 10/15/10 347 345,265
Covalence Specialty Materials Corp.
10.25%, 3/01/16(c) 130 136,500
Crown Americas, Inc.
7.625%, 11/15/13(c) 375 388,125
Jostens, Inc.
7.625%, 10/01/12 210 207,375
Levi Strauss & Co.
8.875%, 4/01/16(c) 225 225,562
Playtex Products, Inc.
8.00%, 3/01/11 320 338,400
Quicksilver, Inc.
6.875%, 4/15/15 220 213,950
Quicksilver Resources, Inc.
7.125%, 4/01/16 420 414,750
Spectrum Brands, Inc.
7.375%, 2/01/15 173 150,510
------------
2,866,937
Diversified Media-1.0%
Dex Media, Inc.
8.00%, 11/15/13 250 257,500
Dex Media East LLC
9.875%, 11/15/09 125 133,437
12.125%, 11/15/12 220 251,350
Dex Media West LLC
8.50%, 8/15/10 180 190,350
Rainbow National Services LLC
8.75%, 9/01/12(c) 205 218,325
R.H. Donnelley Corp.
6.875%, 1/15/13(c) 387 361,845
8.875%, 1/15/16(c) 380 395,200
------------
1,808,007
Energy-2.4%
Amerada Hess Corp.
7.30%, 8/15/31 225 250,516
Chesapeake Energy Corp.
7.75%, 1/15/15 485 506,825
El Paso Corp.
7.75%, 1/15/32 571 575,282
Grant Prideco, Inc.
6.125%, 8/15/15 245 238,875
-------------------------------------------------------------------------------
14 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Hilcorp Energy
10.50%, 9/01/10(c) $ 341 $ 375,526
Kerr-McGee Corp.
6.875%, 9/15/11 160 167,273
Kinder Morgan Finance Co.
5.70%, 1/05/16 175 170,494
Massey Energy Co.
6.875%, 12/15/13(c) 280 274,400
NRG Energy, Inc.
7.25%, 2/01/14 85 86,381
7.375%, 2/01/16 475 485,094
Premco Refining Group, Inc.
9.50%, 2/01/13 280 310,332
Pride International, Inc.
7.375%, 7/15/14 400 420,000
Tesoro Corp.
6.25%, 11/01/12(c) 400 393,000
------------
4,253,998
Entertainment & Leisure-1.2%
Gaylord Entertainment Co.
8.00%, 11/15/13 350 364,875
Intrawest Corp. (Canada)
7.50%, 10/15/13 195 197,681
NCL Corp. (Bermuda)
10.625%, 7/15/14 250 258,750
Quebecor Media (Canada)
7.75%, 3/15/16(c) 105 107,888
Royal Caribbean Cruises (Liberia)
8.00%, 5/15/10 635 679,033
Universal City Development
11.75%, 4/01/10 430 474,075
------------
2,082,302
Financial-2.1%
C&M Finance Ltd. (Cayman Islands)
8.10%, 2/01/16(c) 250 250,088
Crum & Foster Holdings Corp.
10.375%, 6/15/13 220 225,500
E*Trade Financial Corp.
7.875%, 12/01/15 643 678,365
Fairfax Financial Holdings (Canada)
7.375%, 4/15/18* 465 362,700
7.75%, 4/26/12* 550 484,000
Hexion Nova Scotia Finance, ULC
9.00%, 7/15/14 445 458,350
Markel Capital Trust I
Series B
8.71%, 1/01/46 615 642,206
TRAINS HY-2005-1
7.651%, 6/15/15(a)(c) 598 604,291
------------
3,705,500
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 15
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Food & Beverage-0.8%
Altria Group, Inc.
7.75%, 1/15/27 $ 150 $ 171,639
Delhaize America, Inc.
8.125%, 4/15/11 260 280,680
Del Monte Food Co.
8.625%, 12/15/12 125 132,031
Dole Food Company, Inc.
8.625%, 5/01/09 180 180,900
8.875%, 3/15/11 92 91,080
RJ Reynolds Tobacco Holdings
7.25%, 6/01/12 440 454,300
------------
1,310,630
Gaming-3.5%
Boyd Gaming Corp.
7.75%, 12/15/12 255 267,112
Greektown Holdings LLC
10.75%, 12/01/13(c) 240 247,200
Kerzner International Ltd. (Bahamas)
6.75%, 10/01/15 405 426,263
Mandalay Resort Group
10.25%, 8/01/07 535 563,088
MGM Mirage, Inc.
6.625%, 7/15/15 455 447,606
8.375%, 2/01/11 620 654,100
Mohegan Tribal Gaming Authority
6.375%, 7/15/09 155 154,225
7.125%, 8/15/14 700 705,250
Park Place Entertainment
7.00%, 4/15/13 305 317,674
7.875%, 3/15/10 150 159,375
9.375%, 2/15/07 255 263,606
Penn National Gaming, Inc.
6.875%, 12/01/11 430 437,525
Riviera Holdings Corp.
11.00%, 6/15/10 385 409,063
Seneca Gaming Corp.
7.25%, 5/01/12 540 545,400
Station Casinos, Inc.
6.625%, 3/15/18(c) 235 229,713
Turning Stone Casino Resort Enterprise
9.125%, 12/15/10(c) 300 312,000
------------
6,139,200
Health Care-2.9%
Concentra Operating Corp.
9.125%, 6/01/12 195 204,262
9.50%, 8/15/10 280 294,000
Coventry Health Care, Inc.
5.875%, 1/15/12 160 158,400
6.125%, 1/15/15 170 169,104
-------------------------------------------------------------------------------
16 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
DaVita, Inc.
7.25%, 3/15/15 $ 350 $ 351,750
Extendicare Health Services
9.50%, 7/01/10 160 169,000
Genesis HealthCare Corp.
8.00%, 10/15/13 155 163,912
HCA, Inc.
6.375%, 1/15/15 905 880,814
6.75%, 7/15/13 10 9,963
7.875%, 2/01/11 415 436,737
IASIS Healthcare/CAP CRP Healthcare
8.75%, 6/15/14 495 495,000
Omnicare, Inc.
6.875%, 12/15/15 540 538,650
Select Medical Corp.
7.625%, 2/01/15 485 437,713
Triad Hospitals, Inc.
7.00%, 11/15/13 405 398,925
Universal City Florida Holding, Co.
8.375%, 5/01/10 110 110,825
Universal Hospital Services, Inc.
10.125%, 11/01/11 260 269,750
------------
5,088,805
Hotels & Lodging-0.8%
Host Marriott LP
6.75%, 6/01/16(c) 225 224,719
9.25%, 10/01/07 110 115,225
9.50%, 1/15/07 310 318,525
Starwood Hotels & Resorts Worldwide, Inc.
7.875%, 5/01/12 405 440,438
Vail Resorts, Inc.
6.75%, 2/15/14 360 355,500
------------
1,454,407
Index-2.2%
Dow Jones CDX HY
8.25%, 6/29/10(c)* 965 978,421
8.75%, 12/29/10(c)* 2,876 2,969,780
------------
3,948,201
Industrial-1.8%
AMSTED Industries, Inc.
10.25%, 10/15/11(c) 465 512,662
Case New Holland, Inc.
9.25%, 8/01/11 315 336,262
FastenTech, Inc.
11.50%, 5/01/11 170 170,000
Goodman Global Holdings Company, Inc.
7.875%, 12/15/12 280 276,500
Invensys PLC (United Kingdom)
9.875%, 3/15/11(c) 340 361,250
NMHG Holding Co.
10.00%, 5/15/09 220 231,000
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 17
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Terex Corp.
10.375%, 4/01/11 $ 380 $ 400,900
Trinity Industries, Inc.
6.50%, 3/15/14 535 535,000
Tyco International Group S.A. (Luxembourg)
6.00%, 11/15/13 330 331,499
------------
3,155,073
Insurance-0.4%
Liberty Mutual Group
5.75%, 3/15/14(c) 475 461,741
Royal & Sun Alliance Insurance Group PLC
(United Kingdom)
8.95%, 10/15/29 235 297,168
------------
758,909
Metals & Mining-1.4%
AK Steel Corp.
7.875%, 2/15/09 430 432,150
Chesapeake Energy Corp.
6.625%, 1/15/16 655 653,362
International Steel Group, Inc.
6.50%, 4/15/14 272 270,640
Ispat Inland ULC (Canada)
9.75%, 4/01/14 239 270,369
Peabody Energy Corp.
6.875%, 3/15/13* 385 390,775
Southern Peru Copper Corp.
6.375%, 7/27/15 542 527,977
------------
2,545,273
Paper & Packaging-2.0%
Ball Corp.
6.625%, 3/15/18 255 253,725
6.875%, 12/15/12 450 460,125
Berry Plastics Corp.
10.75%, 7/15/12 355 390,500
Graphic Packaging International Corp.
9.50%, 8/15/13 270 252,450
Jefferson Smurfit Corp.
8.25%, 10/01/12 8 7,850
Newpage Corp.
10.00%, 5/01/12 285 299,250
Owens-Brockway Glass Container, Inc.
8.875%, 2/15/09 745 775,731
Plastipak Holdings, Inc.
8.50%, 12/15/15(c) 135 137,700
Russell-Stanley Holdings, Inc.
9.00%, 11/30/08(c)(d)(f) 913 456,739
Stone Container Corp.
9.25%, 2/01/08 540 564,975
9.75%, 2/01/11 12 12,330
------------
3,611,375
-------------------------------------------------------------------------------
18 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Petroleum Products-0.1%
Newfield Exploration Co.
6.625%, 4/15/16 $ 265 $ 264,669
Restaurants-0.2%
Domino's, Inc.
8.25%, 7/01/11 262 268,550
Retail-0.7%
GSC Holdings Corp.
8.00%, 10/01/12(c) 610 605,425
J.C. Penney Corporation, Inc.
7.625%, 3/01/97 205 206,957
8.00%, 3/01/10 420 452,164
------------
1,264,546
Service-1.6%
Allied Waste North America
6.375%, 4/15/11* 610 597,037
8.875%, 4/01/08 305 320,250
H & E Equipment/Finance
11.125%, 6/15/12 265 293,487
Iron Mountain Inc.
6.625%, 1/01/16 335 314,900
Service Corp. International
6.50%, 3/15/08 605 608,025
7.70%, 4/15/09 270 278,775
United Rentals North America, Inc.
6.50%, 2/15/12 454 444,920
7.75%, 11/15/13 8 8,000
------------
2,865,394
Supermarket & Drugstore-0.3%
Couche-Tard, Inc.
7.50%, 12/15/13 333 341,325
Stater Bros. Holdings, Inc.
8.125%, 6/15/12 165 164,794
------------
506,119
Technology-1.1%
Lucent Technologies
6.45%, 3/15/29 145 130,862
6.50%, 1/15/28 350 312,375
Nortel Networks Corp. (Canada)
6.875%, 9/01/23 280 256,200
Serena Software, Inc.
10.375%, 3/15/16(c) 270 283,500
SunGard Data Systems, Inc.
9.125%, 8/15/13(c) 735 777,263
Unisys Corp.
7.875%, 4/01/08 205 204,744
------------
1,964,944
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 19
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Transportation-0.1%
AMR Corp.
9.00%, 8/01/12 $ 232 $ 227,940
Utilities- Electric & Gas-5.0%
AES Corporation
8.75%, 5/15/13(c) 75 81,000
9.00%, 5/15/15(c) 115 124,775
Aquila, Inc.
14.875%, 7/01/12 260 351,650
CMS Energy Corp.
6.875%, 12/15/15 175 176,969
8.50%, 4/15/11 215 232,200
DPL, Inc.
6.875%, 9/01/11 162 168,934
Dynegy Holdings, Inc.
10.125%, 7/15/13(c) 230 263,511
Edison Mission Energy
9.875%, 4/15/11 1,000 1,130,000
Enterprise Products Operating L.P.
5.60%, 10/15/14 220 213,332
FirstEnergy Corp.
6.45%, 11/15/11 205 212,121
Nevada Power Co.
6.65%, 4/01/36(c) 200 199,484
Northwest Pipeline Corp.
8.125%, 3/01/10 315 332,325
Reliant Energy, Inc.
6.75%, 12/15/14 65 57,363
9.50%, 7/15/13 390 390,488
Sanmina-Sci Corp.
8.125%, 3/01/16 295 297,950
Sierra Pacific Power Co.
6.00%, 5/15/16(c) 175 172,618
Sierra Pacific Resources
8.625%, 3/15/14 260 282,211
Southern Natural Gas Co.
7.35%, 2/15/31 405 416,596
8.875%, 3/15/10 325 345,719
TECO Energy, Inc.
6.75%, 5/01/15 445 457,238
7.00%, 5/01/12 425 439,344
The Williams Companies, Inc.
7.625%, 7/15/19 1,365 1,453,725
TXU Corp.
5.55%, 11/15/14 360 336,743
6.50%, 11/15/24 764 696,324
------------
8,832,620
Total U.S. Corporate Debt Obligations
(cost $89,058,640) 85,705,525
-------------------------------------------------------------------------------
20 o ACM MANAGED DOLLAR INCOME FUND
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
NON-U.S. CORPORATE DEBT OBLIGATIONS-6.2%
Brazil-0.8%
Banco BMG SA
9.15%, 1/15/16(c) $ 350 $ 358,750
PF Export Receivables Master Trust
6.436%, 6/01/15(c) 1,120 1,097,222
------------
1,455,972
China-0.3%
Chaoda Modern Agriculture
7.75%, 2/08/10(c) 519 519,000
El Salvador-0.2%
AES El Salvador Trust
6.75%, 2/01/16(c) 270 262,398
Hong Kong-0.2%
Noble Group, Ltd.
6.625%, 3/17/15(c) 401 354,466
Kazakhstan-0.2%
Kazkommerts International BV
8.50%, 4/16/13(c) 350 373,625
Mexico-1.9%
America Movil S.A. de C.V.
6.375%, 3/01/35 116 109,067
Innova S. de R.L.
9.375%, 9/19/13 2,865 3,208,800
------------
3,317,867
Romania-0.3%
Mobifon Holdings BV
12.50%, 7/31/10 425 485,563
Russia-1.8%
Citigroup (JSC Severstal)
9.25%, 4/19/14 464 500,053
Evraz Group SA
8.25%, 11/10/15(c) 665 671,650
Gazprom OAO
9.625%, 3/01/13(c) 890 1,052,499
Mobile Telesystems Finance S.A.
9.75%, 1/30/08(c) 625 656,638
Russian Standard Finance SA
7.50%, 10/07/10(c) 270 264,263
Tyumen Oil Co.
11.00%, 11/06/07(c) 70 75,075
------------
3,220,178
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 21
Shares or
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
Singapore-0.4%
Avago Technologies Finance
10.125%, 12/01/13(c) $ 230 $ 246,962
Flextronics International, Ltd.
6.50%, 5/15/13 535 530,987
------------
777,949
Ukraine-0.1%
Dresdner Bank AG (Kyivstar)
7.75%, 4/27/12(c) 100 100,375
Total Non-U.S. Corporate Debt Obligations
(cost $10,312,624) 10,867,393
NON-CONVERTIBLE PREFERRED STOCK-0.8%
Sovereign Real Estate Investment Trust
12.00%(c) (cost $973,435) 978 1,427,880
WARRANTS-0.0%
Central Bank of Nigeria
Warrants, expiring 11/15/20 1,000 22,000
Republic of Venezuela
Warrants, expiring 4/15/20(g) 7,140 --
Total Warrants
(cost $0) 22,000
SHORT-TERM INVESTMENT-6.2%
Time Deposit-6.2%
Societe Generale
4.190%, 4/03/06
(cost $11,000,000) 11,000 11,000,000
Total Investments Before Security
Lending Collateral-114.1%
(cost $191,636,212) 201,998,982
INVESTMENT OF CASH COLLATERAL FOR
SECURITIES LOANED-3.2%
Short-Term Investment
UBS Private Money Market Fund, LLC
4.67%
(cost $5,697,420) 5,697,420 5,697,420
Total Investments-117.3%
(cost $197,333,632) 207,696,402
Other assets less liabilities-(17.3)% (30,668,557)
Net Assets-100.0% $ 177,027,845
-------------------------------------------------------------------------------
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:
--------------
Citigroup Global Markets, Inc.
Republic of Hungary
4.50%, 2/06/13 350 0.50% 11/26/13 $ 120
Citigroup Global Markets, Inc.
Republic of Philippines
10.625%, 3/16/25 510 5.60 3/20/14 (90,901)
JP Morgan Chase
Republic of Hungary
4.75%, 2/03/15 1,380 0.30 10/20/15 29,314
Sale Contracts:
---------------
Citigroup Global Markets, Inc.
Republic of Brazil
12.25%, 3/06/30 2,562 1.98 4/20/07 67,150
Citigroup Global Markets, Inc.
Republic of Brazil
12.25%, 3/06/30 900 4.40 5/20/06 19,720
Citigroup Global Markets, Inc.
Republic of Philippines
10.625%, 3/16/25 510 4.95 3/20/09 52,555
Credit Suisse First Boston
Republic of Brazil
12.25%, 3/06/30 750 6.90 6/20/07 72,788
Credit Suisse First Boston
Republic of Venezuela
9.25%, 9/15/27 730 3.17 10/20/15 66,192
Deutsche Bank AG
Republic of Brazil
12.25%, 3/06/30 2,562 1.90 4/20/07 64,178
JP Morgan Chase
Gazprom OAO
10.50%, 10/21/09 1,490 1.04 10/20/10 10,217
Morgan Stanley
Republic of Brazil
12.25%, 3/06/30 680 3.80 8/20/06 12,183
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 23
REVERSE REPURCHASE AGREEMENTS (see Note C)
Broker Interest Rate Maturity Amount
-------------------------------------------------------------------------------
Barclays Securites 3.75% 12/29/06 $ 1,990,073
Barclays Securites 4.45 12/29/06 4,931,430
Chase Manhattan Bank 4.70 12/29/06 2,965,387
Chase Manhattan Bank 4.70 12/29/06 1,248,663
Chase Manhattan Bank 4.70 12/29/06 1,776,280
Chase Manhattan Bank 4.70 12/29/06 1,413,684
Chase Manhattan Bank 4.70 12/29/06 1,173,653
Chase Manhattan Bank 4.70 12/29/06 2,044,772
Chase Manhattan Bank 4.70 12/29/06 2,996,641
Chase Manhattan Bank 4.70 12/29/06 1,748,128
Merrill Lynch 4.40 12/29/06 3,822,453
Santander Investment Securities 4.25 12/29/06 1,511,754
$ 27,622,918
* Represents entire or partial securities out on loan.
(a) Coupon changes periodically based upon a predetermined schedule. Stated
interest rate in effect at March 31, 2006.
(b) Positions, or portions thereof, with an aggregate market value of
$31,754,190 have been segregated to collateralize reverse repurchase agreements.
(c) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities are considered liquid and may be resold in
transactions exempt from registration, normally to qualified institutional
buyers. At March 31, 2006, the aggregate market value of these securities
amounted to $41,843,064 or 23.6% of net assets.
(d) Payment in kind (PIK) quarterly coupon payment.
(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 exempt from registration under Rule 144A of the Securites Act of
1933. This security, which represents 0.26% of net assets as of March 31, 2006,
is considered illiquid and restricted.
Acquisition Acquisition Market Percentage of
Restricted Security Date Cost Value Net Assets
--------------------------------------------------------------------------------------------
Russell-Stanley Holdings, Inc. 2/26/99- $5,111,352 $456,739 0.26%
9.00%, 11/30/08 3/31/06
(g) Non-income producing security.
Glossary of Terms:
DCB - Debt Conversion Bond
FRN - Floating Rate Note
Please note: The sector classifications presented herein are based on the
sector categorization methodology of the Adviser.
See notes to financial statements.
-------------------------------------------------------------------------------
24 o ACM MANAGED DOLLAR INCOME FUND
STATEMENT OF ASSETS & LIABILITIES
March 31, 2006 (unaudited)
Assets
Investments in securities, at value
(cost $197,333,632--including investment of cash
collateral for securities loaned of $5,697,420) $ 207,696,402(a)
Cash 73,593
Interest receivable 3,300,346
Receivable for investment securities sold 500,151
Unrealized appreciation on credit default swap contracts 394,417
Total assets 211,964,909
Liabilities
Reverse repurchase agreements 27,622,918
Payable for collateral received on securities loaned 5,697,420
Payable for investment securities purchased 1,208,042
Unrealized depreciation on credit default swap contracts 90,901
Advisory fee payable 128,296
Tender fees payable 37,743
Administrative fee payable 20,531
Accrued expenses and other liabilities 131,213
Total liabilities 34,937,064
Net Assets $ 177,027,845
Composition of Net Assets
Common stock, at par $ 215,723
Additional paid-in capital 286,936,045
Distributions in excess of net investment income (574,246)
Accumulated net realized loss on investment transactions (120,215,963)
Net unrealized appreciation of investments 10,666,286
$ 177,027,845
Net Asset Value Per Share - 300 million shares of
common stock authorized, $.01 par value
(based on 21,572,318 shares outstanding) $8.21
(a) Includes securities on loan with a value of $5,411,523 (see Note F).
See notes to financial statements.
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 25
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2006 (unaudited)
Investment Income
Interest $ 7,711,807
Dividends 95,850 $ 7,807,657
Expenses
Advisory fee 660,828
Administrative fee 105,735
Legal 48,485
Custodian 44,805
Printing 41,087
Audit 37,113
Directors' fees 19,197
Transfer agency 6,666
Miscellaneous 31,926
Total expenses before interest 995,842
Interest expense 534,589
Total expenses 1,530,431
Net investment income 6,277,226
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized gain (loss) on:
Investment transactions 9,349,006
Swap contracts (168,921)
Written options 10,802
Net change in unrealized
appreciation/depreciation of:
Investments (10,577,292)
Swap contracts 242,206
Net loss on investment transactions (1,144,199)
Net Increase in Net Assets from
Operations $ 5,133,027
See notes to financial statements.
-------------------------------------------------------------------------------
26 o ACM MANAGED DOLLAR INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months
Ended
March 31, Year Ended
2006 September 30,
(unaudited) 2005
------------ -------------
Increase (Decrease) in Net Assets
Resulting from Operations
Net investment income $ 6,277,226 $ 14,589,844
Net realized gain (loss) on investment
transactions 9,190,887 3,564,731
Net change in unrealized
appreciation/depreciation
of investments (10,335,086) 6,022,473
Net increase in net assets from
operations 5,133,027 24,177,048
Dividends and Distributions to
Shareholders from
Net investment income (6,665,382) (15,094,355)
Common Stock Transactions
Reinvestment of dividends resulting in
the issuance of Common Stock -- 79,572
Tender offer (resulting in the redemption
of 0 and 1,135,385 shares of common
stock, respectively) -- (9,162,557)
Tender offer costs -- (175,000)
Total decrease (1,532,355) (175,292)
Net Assets
Beginning of period 178,560,200 178,735,492
End of period (including distributions
in excess of net investment income
of $574,246 and $186,090
respectively) $177,027,845 $178,560,200
See notes to financial statements.
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ACM MANAGED DOLLAR INCOME FUND o 27
STATEMENT OF CASH FLOWS
Six Months Ended March 31, 2006 (unaudited)
Increase (Decrease) in Cash from
Operation Activities:
Interest and dividends received $ 7,293,944
Interest expense paid (611,536)
Operating expenses paid (979,189)
Net increase in cash from operating
activities $ 5,703,219
Investing Activities:
Purchases of long-term investments (64,227,762)
Proceeds from disposition of long-term
investments 73,232,274
Purchases of short-term investments, net (8,600,000)
Cash collateral received on securities
loaned 5,697,420
Net premium received on option
transactions 10,802
Proceeds received on swap transactions (239,031)
Net increase in cash from investing
activities 5,873,703
Financing Activities: *
Cash dividends paid (6,665,382)
Proceeds from reverse repurchase
agreements (5,754,359)
Tender offer (24,238)
Net decrease in cash from financing
activities (12,443,979)
Net decrease in cash (867,057)
Cash at beginning of period 940,650
Cash at end of period $ 73,593
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Reconciliation of Net Increase in
Net Assets from Operations to Net
Increase in Cash from Operating
Activities:
Net increase in net assets from
operations $ 5,133,027
Adjustments:
Increase in dividends and interest
receivable $ (132,675)
Accretion of bond discount and
amortization of bond premium (381,038)
Increase in accrued expenses and
other assets 16,653
Decrease in interest payable (76,947)
Net realized gain on investment
transactions (9,190,887)
Net change in unrealized
appreciation/depreciation
of investments 10,335,086
Total adjustments 570,192
Net Increase in Cash from
Operating Activities $ 5,703,219
* Non-cash financing activities not included herein consist of reinvestment
of dividends and distributions.
See notes to financial statements.
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28 o ACM MANAGED DOLLAR INCOME FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2006 (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 U.S. generally accepted accounting principles, 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 are valued at their current market value determined on the
basis of market quotations or, if market quotations are not readily available
or are deemed unreliable, at "fair value" as determined in accordance with
procedures established by and under the general supervision of the Fund's Board
of Directors.
In general, the market value of securities which are readily available and
deemed reliable are 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. 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 valuation, the last available closing settlement price is used;
securities traded in the over-the-counter market, (OTC) (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 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, AllianceBernstein L.P. (prior to February
24, 2006 known
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ACM MANAGED DOLLAR INCOME FUND o 29
as Alliance Capital Management L.P.) (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 (including
restricted securities) or are deemed unreliable are valued at fair value.
Factors considered in making this determination may include, but are not
limited to, information obtained by contacting the issuer, analysts, analysis
of the issuer's financial statements or other available documents. In addition,
the Fund may use fair value pricing for securities primarily traded in non-U.S.
markets because, most foreign markets close well before the Fund values its
securities at 4:00 p.m., Eastern Time. The earlier close of these foreign
markets gives rise to the possibility that significant events, including broad
market moves, may have occurred in the interim and may materially affect the
value of those securities.
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. The Fund may be subject to taxes imposed by countries in which it
invests. Such taxes are generally based on income and/or capital gains earned
or required. Taxes are accrued and applied to net investment income, net
realized gains and net unrealized appreciation/depreciation as such income
and/or gains are earned.
3. Investment Income and Investment Transactions
Interest income is accrued daily. Dividend income is recorded on the
ex-dividend date or as soon as the Fund is informed of the dividend. 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 and amortizes premiums as adjustments to interest
income.
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
U.S. generally accepted accounting principles. 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.
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30 o ACM MANAGED DOLLAR INCOME FUND
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, Administrative Fees and Other Transactions with Affiliates
Under the terms of an Investment Advisory Agreement, the Fund pays
AllianceBernstein, L.P. 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
AllianceBernstein Investor Services, Inc. (prior to February 24, 2006 known as
Alliance Global Investor Services, Inc.) ("ABIS"), a wholly-owned subsidiary of
the Adviser, the Fund reimburses ABIS for costs relating to servicing phone
inquiries on behalf of the Fund. During the six months ended March 31, 2006,
the Fund reimbursed $335 to ABIS.
Under the terms of an Administration Agreement, the Fund pays Princeton
Administrators, L.P. (the "Administrator") a fee at an annual rate of .12 of 1%
of the average adjusted weekly net assets of the Fund but in no event less than
$12,500 per month. 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, 2006, were as follows:
Purchases Sales
------------- -------------
Investment securities (excluding
U.S. government securities) $56,863,704 $72,552,857
U.S. government securities -0- -0-
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ACM MANAGED DOLLAR INCOME FUND o 31
At March 31, 2006, the cost of investments for federal income tax purposes,
gross unrealized appreciation and gross unrealized depreciation (excluding
written options and swap contracts) are as follows:
Cost $197,333,632
Gross unrealized appreciation $ 16,589,442
Gross unrealized depreciation (6,226,672)
Net unrealized appreciation $ 10,362,770
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.
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.
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32 o ACM MANAGED DOLLAR INCOME FUND
Transactions in written options for the six months ended March 31, 2006 were as
follows:
Number of
Contracts Premiums
(000) Received
---------- ----------
Options outstanding at
September 30, 2005 -0- $ -0-
Options written 950 10,802
Options exercised -0- -0-
Options terminated in closing purchase
transactions (360) (4,280)
Options expired (590) (6,522)
Options outstanding at
March 31, 2006 -0- $ -0-
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.
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 accrues for the interim payments on swap contracts on a daily basis,
with the net amount recorded within unrealized appreciation/depreciation of
swap contracts on the statement of assets and liabilities. Once the interim
payments are settled in cash, the net amount is recorded as realized gain/loss
on swaps, in addition to realized gain/loss recorded upon the termination of
swaps contracts on the statements of operations. Fluctuations in the value of
swap contracts are recorded as a component of net change in unrealized
appreciation/depreciation of investments.
The Fund may enter into credit default swaps. The Fund may purchase credit
protection on the referenced obligation of the credit default swap ("Buy
Contract") or provide credit protection on the referenced obligation of the
credit default swap ("Sale Contract"). A sale/(buy) in a credit default swap
pro-
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 33
vides upon the occurrence of a credit event, as defined in the swap agreement,
for the Fund to buy/(sell) from/(to) the counterparty at the notional amount
(the "Notional Amount") and receive/(deliver) the principal amount of the
referenced obligation. If a credit event occurs, the maximum payout amount for
a Sale Contract is limited to the Notional Amount of the swap contract
("Maximum Payout Amount"). During the term of the swap agreement, the Fund
receives/(pays) interim fixed payments from/(to) the respective counterparty,
calculated at the agreed upon interest rate applied to the Notional Amount.
These interim payments are recorded within unrealized appreciation/depreciation
of swap contracts on the statement of assets and liabilities.
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, counterparty risk and credit risk. If the Fund is
a buyer and no credit event occurs, it will lose its investment. In addition,
if the Fund is a seller and a credit event occurs, the value of the referenced
obligation received by the Fund coupled with the periodic payments previously
received, may be less than the Maximum Payout Amount it pays to the buyer,
resulting in a loss to the Fund.
At March 31, 2006, the Fund had Sale Contracts outstanding with Maximum Payout
Amounts aggregating $10,184,000, with net unrealized appreciation of $364,983
and terms ranging from 1 year to 10 years, as reflected in the portfolio of
investments.
In certain circumstances, the Fund may hold Sale Contracts on the same
referenced obligation and with the same counterparty it has purchased credit
protection, which may reduce its obligation to make payments on Sale Contracts,
if a credit event occurs. The Fund had Buy Contracts outstanding with a
Notional Amount of $510,000 with respect to the same referenced obligation and
same counterparty of certain Sale Contracts outstanding, which reduced its
obligation to make payments on Sale Contracts to $9,674,000 as of March 31,
2006.
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, 2006, the average amount of reverse
repurchase agreements outstanding was $29,963,365 and the daily weighted
average annual interest rate was 3.53%.
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34 o ACM MANAGED DOLLAR INCOME FUND
NOTE D
Capital Stock
During the six months ended March 31, 2006, the Fund did not issue any shares
in connection with the Fund's dividend reinvestment plan. During the year ended
September 30, 2005, the Fund issued 9,984 shares in connection with the Fund's
dividend reinvestment plan.
On June 10, 2005, the Fund purchased and retired 1,135,385 shares of its
outstanding common stock for $8.07 per share pursuant to a tender offer. The
fund incurred costs of $175,000, which were charged to additional paid in
capital. At June 10, 2005, 21,572,318 shares of common stock were outstanding.
The purpose of the tender offer was to fulfill an undertaking made in
connection with the initial public offering price of the Fund's shares.
NOTE E
Risks Involved in Investing in the Fund
Interest Rate Risk and Credit 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. Credit risk is
the risk that the issuer or guarantor of a debt security, or the counterparty
to a derivative contract, will be unable or unwilling to make timely principal
and/or interest payments, or to otherwise honor its obligations. The degree of
risk for a particular security may be reflected in its credit risk rating.
Credit risk is greater for medium quality and lower-rated securities.
Lower-rated debt securities and similar unrated securities (commonly known as
"junk bonds") have speculative elements or are predominantly speculative risks.
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 U.S. 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.
Leverage Risk--The Fund may utilize leverage through the investment techniques
of reverse repurchase agreements and dollar rolls. Reverse repurchase
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 35
agreements and dollar rolls are speculative techniques and are considered
borrowings by the Fund.
The effect of leverage can realize shareholders higher returns than if the Fund
were not leveraged, and the use of leverage techniques can add to net asset
value (NAV). However, the risks of such techniques are potentially a higher
volatility of the NAV of the Common Stock, potentially more volatility in the
market value of the Common Stock and the relatively greater effect on the NAV
of the Common Stock caused by favorable or adverse changes in the currency
exchange rates. In addition, changes in the interest rate environment can
increase or decrease shareholder returns. The Fund maintains asset coverage of
at least 300%.
To the extent that the current interest rate on the Fund's indebtedness
approaches the net return on the leveraged portion of the Fund's investment
portfolio, then the benefit to the shareholders will be reduced. If the rate on
indebtedness were to exceed the net return on the same portion of the
portfolio, then this would result in a lower rate of return for the
shareholders. Similarly, the use of leverage in a declining market can advance
the decrease of the Fund's NAV more so than if the Fund were not leveraged,
which would likely be reflected in a greater decline in the market price for
shares of Common Stock than if the Fund were not leveraged. In extreme cases,
if the Fund's current investment income were not sufficient to meet interest
payments on indebtedness or if the Fund failed to maintain the asset coverage
required by the 1940 Act, then it could be necessary for the Fund to liquidate
certain investments at a time when it may be disadvantageous to do so, thereby
reducing its NAV.
Indemnification Risk--In the ordinary course of business, the Fund enters into
contracts that contain a variety of indemnifications. The Fund's maximum
exposure under these arrangements is unknown. However, theFund has not had
prior claims or losses pursuant to these indemnification provisions and expects
the risk of loss thereunder to be remote.
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
-------------------------------------------------------------------------------
36 o ACM MANAGED DOLLAR INCOME FUND
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,
2006, the Fund had loaned securities with a value of $5,411,523 and received
cash collateral of $5,697,420, which was invested in a money market fund as
included in the portfolio of investments. For the six months ended March 31,
2006, the Fund earned fee income of $21,250, which is included in interest
income in the accompanying statement of operations.
NOTE G
Distributions to Shareholders
The tax character of the distributions paid to shareholders during the fiscal
years ended September 30, 2005 and September 30, 2004 were as follows:
2005 2004
-------------- --------------
Distributions paid from:
Ordinary income $ 15,094,355 $ 18,071,829
Total taxable distributions 15,094,355 18,071,829
Tax return of capital -0- -0-
Total distributions paid $ 15,094,355 $ 18,071,829
As of September 30, 2005, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses $ (129,072,933)(a)
Unrealized appreciation/(depreciation) 20,481,365(b)
Total accumulated earnings/(deficit) $ (108,591,568)
(a) On September 30, 2005, the Fund had a net capital loss carryforward of
$129,072,933 of which $40,065,073 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. During the fiscal year, the Fund utilized capital loss
carryforwards of $2,967,645.
(b) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax deferral of
losses on wash sales, the difference between book and tax amortization methods
for premium and the difference between book and tax treatment of swap income.
During the current fiscal year, permanent differences, primarily due to
distributions in excess of net investment income, the tax character of paydown
gains/losses, tax treatment of swap income and the tax treatment of bond
premium, resulted in a net decrease in distributions in excess of net
investment income, a net increase in accumulated net realized loss on
investments and a
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 37
decrease in additional paid-in capital. This reclassification had no effect on
net assets.
NOTE H
Legal Proceedings
As has been previously reported, 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 the Adviser provide
information to them. The Adviser 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 the Adviser and the SEC
and NYAG in connection with the investigations mentioned above.
Numerous lawsuits have been filed against the Adviser 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. The
lawsuits are now pending in the United States District Court for the District
of Maryland pursuant to a ruling by the Judicial Panel on Multidistrict
Litigation transferring and centralizing all of the mutual funds involving
market and late trading in the District of Maryland (the "Mutual Fund MDL").
Management of the 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, the Adviser 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 memorialized in an
Assurance of Discontinuation dated September 1, 2004 ("NYAGOrder"). Among the
key provisions of these agreements are the following:
(i) The Adviser 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
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38 o ACM MANAGED DOLLAR INCOME FUND
share of advisory fees paid by such fund during the period of such market
timing;
(ii) The Adviser 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) The Adviser agreed to implement changes to its governance and compliance
procedures. Additionally, the SEC Order contemplates that the Adviser'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.
On February 10, 2004, the Adviser received (i) a subpoena duces tecum from the
Office of the Attorney General of the State of West Virginia and (ii) a request
for information from West Virginia's Office of the State Auditor, Securities
Commission (the "West Virginia Securities Commission") (together, the
"Information Requests"). Both Information Requests require the Adviser to
produce documents concerning, among other things, any market timing or late
trading in the Adviser's sponsored mutual funds. The Adviser responded to the
Information Requests and has been cooperating fully with the investigation.
On April 11, 2005, a complaint entitled The Attorney General of the State of
West Virginia v. AIM Advisors, Inc., et al. ("WVAG Complaint") was filed
against the Adviser, Alliance Capital Management Holding L.P. ("Alliance
Holding"), and various other defendants not affiliated with the Adviser. The
WVAG Complaint was filed in the Circuit Court of Marshall County, West Virginia
by the Attorney General of the State of West Virginia. The WVAG Complaint makes
factual allegations generally similar to those in certain of the complaints
related to the lawsuits discussed above. On May 31, 2005, defendants removed
the WVAG Complaint to the United States District Court for the Northern
District of West Virginia. On July 12, 2005, plaintiff moved to remand. On
October 19, 2005, the WVAG Complaint was transferred to the Mutual fund MDL.
On August 30, 2005, the deputy commissioner of securities of the West Virginia
Securities Commission signed a "Summary Order to Cease and Desist, and Notice
of Right to Hearing" addressed to the Adviser and Alliance Holding. The Summary
Order claims that the Adviser and Alliance Holding violated the West Virginia
Uniform Securities Act, and makes factual allegations generally similar
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ACM MANAGED DOLLAR INCOME FUND o 39
to those in the SEC Order and the NYAG Order. On January 26, 2006, the Adviser,
Alliance Holding, and various unaffiliated defendants filed a Petition for Writ
of Prohibition and Order Suspending Proceedings in West Virginia state court
seeking to vacate the Summary Order and for other relief. On April 11, 2006,
the Court dismissed the Writ and later granted defendants a 30-day stay to file
an appeal. The Adviser intends to vigorously defend against the allegations in
the WVAG Complaint.
On June 22, 2004, a purported class action complaint entitled Aucoin, et al. v.
Alliance Capital Management L.P., et al. ("Aucoin Complaint") was filed against
the Adviser, Alliance Capital Management Holding L.P., Alliance Capital
Management Corporation, AXA Financial, Inc., AllianceBernstein Investment
Research & Management, Inc., certain current and former directors of the
AllianceBernstein Mutual Funds, and unnamed Doe defendants. The Aucoin
Complaint names certain of the AllianceBernstein mutual funds as nominal
defendants. The Fund was not named as a defendant in the Aucion Compliant. The
Aucoin Complaint was filed in the United States District Court for the Southern
District of New York by an alleged shareholder of an AllianceBernstein mutual
fund. The Aucoin Complaint alleges, among other things, (i) that certain of the
defendants improperly authorized the payment of excessive commissions and other
fees from fund assets to broker-dealers in exchange for preferential marketing
services, (ii) that certain of the defendants misrepresented and omitted from
registration statements and other reports material facts concerning such
payments, and (iii) that certain defendants caused such conduct as control
persons of other defendants. The Aucoin Complaint asserts claims for violation
of Sections 34(b), 36(b) and 48(a) of the Investment Company Act, Sections 206
and 215 of the Advisers Act, breach of common law fiduciary duties, and aiding
and abetting breaches of common law fiduciary duties. Plaintiffs seek an
unspecified amount of compensatory damages and punitive damages, rescission of
their contracts with the Adviser, including recovery of all fees paid to the
Adviser pursuant to such contracts, an accounting of all fund-related fees,
commissions and soft dollar payments, and restitution of all unlawfully or
discriminatorily obtained fees and expenses.
Since June 22, 2004, nine additional lawsuits making factual allegations
substantially similar to those in the Aucoin Complaint were filed against the
Adviser and certain other defendants. All nine of the lawsuits (i) were brought
as class actions filed in the United States District Court for the Southern
District of New York, (ii) assert claims substantially identical to the Aucoin
Complaint, and (iii) are brought on behalf of shareholders of the Funds.
On February 2, 2005, plaintiffs filed a consolidated amended class action
complaint ("Aucoin Consolidated Amended Complaint") that asserts claims
substantially similar to the Aucoin Complaint and the nine additional lawsuits
referenced above. On October 19, 2005, the District Court dismissed each of the
claims set
-------------------------------------------------------------------------------
40 o ACM MANAGED DOLLAR INCOME FUND
forth in the Aucoin Consolidated Amended Complaint, except for plaintiff's
claim under Section 36(b) of the Investment Company Act. On January 11, 2006,
the District Court granted defendants' motion for reconsideration and dismissed
the remaining Section 36(b) claim. Plaintiffs have moved for leave to amend
their consolidated complaint.
The Adviser believes that these matters are not likely to have a material
adverse effect on the Fund or the Adviser's ability to perform advisory
services relating to the Fund.
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 41
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Common Stock Outstanding Throughout Each Period
Six Months
Ended
March 31, Year Ended September 30,
2006 ---------------------------------------------------------------
(unaudited) 2005 2004(a) 2003 2002(b) 2001
----------- ----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $ 8.28 $ 7.87 $ 7.68 $ 5.58 $ 6.33 $ 8.09
Income From Investment Operations
Net investment income(c) 0.29 0.65 0.76 0.81 0.84 0.98
Net realized and unrealized
gain (loss) on investment
transactions (0.05) 0.43 0.23 2.10 (0.71) (1.72)
Net increase (decrease) in net
asset value from operations 0.24 1.08 0.99 2.91 0.13 (0.74)
Less: Dividends and Distributions
Dividends from net investment
income (0.31) (0.67) (0.80) (0.81) (0.85) (0.95)
Tax return of capital -0- -0- -0- -0- (0.03) (0.07)
Total dividends and
distributions (0.31) (0.67) (0.80) (0.81) (0.88) (1.02)
Net asset value, end of period $ 8.21 $ 8.28 $ 7.87 $ 7.68 $ 5.58 $ 6.33
Market value, end of period $ 7.40 $ 7.74 $ 7.87 $ 8.15 $ 6.29 $ 7.62
Premium/(Discount) (9.87%) (6.52%) 0.00% 6.12% 12.72% 20.38%
Total Return
Total investment return based on:(d)
Market value (0.39)% 7.10% 6.91% 45.71% (6.14)% 3.02%
Net asset value 3.31% 14.57% 13.45% 54.77% .23% (10.08)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $177,028 $178,560 $178,735 $173,182 $124,834 $140,110
Ratios to average net assets of:
Expenses 1.74%(f) 1.49% 1.44% 1.72% 2.12% 2.75%
Expenses, excluding
interest expense(e) 1.13%(f) 1.13% 1.15% 1.21% 1.15% 1.13%
Net investment income 7.12%(f) 8.06% 9.76% 11.88% 10.81% 9.90%
Portfolio turnover rate 28% 63% 95% 80% 63% 129%
See footnote summary on page 43.
-------------------------------------------------------------------------------
42 o ACM MANAGED DOLLAR INCOME FUND
(a) As of October 1, 2003, the Fund has adopted the method of accounting for
interim payments on swap contracts in accordance with Financial Accounting
Standards Board Statement No. 133. These interim payments are reflected within
net realized and unrealized gain (loss) on swap contracts, however, prior to
October 1, 2003, these interim payments were reflected within interest
income/expense on the statement of operations. The effect of this change for
the fiscal year ended September 30, 2005, was to decrease net investment income
per share by $0.01 and increase net realized and unrealized gain (loss) on
investment transactions per share by $0.01 and decrease the ratio of net
investment income to average net assets by 0.14%.
(b) 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 end
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.
(c) Based on average shares outstanding.
(d) 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.
(e) Excludes net interest expense of .61%, .36%, .29%, .51%, .97% and 1.62%,
respectively, on borrowings.
(f) Annualized.
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 43
ADDITIONAL INFORMATION
(unaudited)
Supplemental Proxy Information
The Annual Meeting of Stockholders of the ACM Managed Dollar Income Fund, Inc.
was held on March 29, 2006.
A description of each proposal and number of shares voted at the meeting are as
follows:
Abstain/
Authority
Voted for Withheld
------------------------------------------------------------------------------------------
1. To elect a Class Two director:
(term expires in 2008) D. James Guzy 17,553,391 623,736
2. To elect Class Three directors:
(terms expire in 2009) Marc O. Mayer 17,608,967 568,159
Marshall C. Turner, Jr. 17,612,999 564,127
-------------------------------------------------------------------------------
44 o ACM MANAGED DOLLAR INCOME FUND
BOARD OF DIRECTORS
William H.Foulk, Jr.,(1) Chairman
Marc O.Mayer, President
David H. Dievler(1)
John H. Dobkin(1)
Michael J. Downey(1)
D. James Guzy(1)
Marshall C. Turner, Jr.(1)
OFFICERS
Philip L. Kirstein, Senior Vice President & Independent Compliance Officer
Paul J. DeNoon(2), Vice President
Gershon Distenfeld(2), Vice President
Mark A. Hamilton(2), Vice President
Emilie D. Wrapp, Secretary
Mark D. Gersten, Treasurer and 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
One Lincoln Street
Boston, MA 02111
Dividend Paying Agent, Transfer Agent and Registrar
ComputerShare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
Independent Registered Public Accounting Firm
Ernst& Young LLP
5 Times Square
New York,NY 10036
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee, Governance and Nominating Committee, and
the Independent Directors Committee.
(2) The day-to-day management of, and investment decisions for, the Fund's
portfolio are made by the Global Fixed Income Team. While all members of the
team work jointly to determine the majority of the investment stategy including
stock selection for the Fund, Messrs. Paul J. DeNoon, Gershon M. Distenfeld and
Mark A. Hamilton, members of the Global Fixed Income Emerging Market Investment
Team, are primarily responsible for the day-to-day management of the Fund's
portfolio.
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 ACMManaged Dollar Income Fund for their information. The
financial information included herein is taken from the records of the Fund.
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.
Annual Certifications - As required, on April 20, 2006, the Fund submitted
to the New York Stock Exchange ("NYSE") the annual certification of the Fund's
Chief Executive Officer certifying that he is not aware of any violation of the
NYSE's Corporate Governance listing standards. The Fund also has included the
certifications of the Fund's Chief Executive Officer and Chief Financial
Officer required by Section 302 of the Sarbanes-Oxley Act of 2002 as exhibits
to the Fund's Form N-CSR filed with the Securities and Exchange Commission for
the annual period.
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 45
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
Mid-Cap Growth Fund
Large Cap Growth Fund
Small Cap Growth Portfolio
Global & International
Global Health Care Fund
Global Research Growth Fund
Global Technology Fund
Greater China '97 Fund
International Growth Fund*
International Research Growth Fund*
------------------------------------------------------------
Value Funds
------------------------------------------------------------
Domestic
Balanced Shares
Focused Growth & Income Fund
Growth & Income Fund
Real Estate Investment Fund
Small/Mid-Cap Value Fund
Utility Income Fund
Value Fund
Global & International
Global Value Fund
International Value Fund
------------------------------------------------------------
Taxable Bond Funds
------------------------------------------------------------
Global Government Income Trust*
Corporate Bond Portfolio
Emerging Market Debt Fund
Global Strategic Income Trust
High Yield Fund
Multi-Market Strategy Trust
Intermediate 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
------------------------------------------------------------
Retirement Strategies Funds
------------------------------------------------------------
2000 Retirement Strategy
2005 Retirement Strategy
2010 Retirement Strategy
2015 Retirement Strategy
2020 Retirement Strategy
2025 Retirement Strategy
2030 Retirement Strategy
2035 Retirement Strategy
2040 Retirement Strategy
2045 Retirement Strategy
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. You should read the prospectus carefully before you invest.
* Prior to May 16, 2005, International Growth Fund was named Worldwide
Privatization Fund and International Research Growth Fund was named
International Premier Growth Fund. On June 24, 2005, All-Asia Investment Fund
merged into International Research GrowthFund. On July 8, 2005, New Europe Fund
merged into International Research Growth Fund. Prior to February 1, 2006,
Global Government Income Trust was named Americas Government Income Trust and
Intermediate Bond Portfolio was named Quality Bond Portfolio.
** 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.
-------------------------------------------------------------------------------
46 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, 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 ComputerShare 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
paid by check mailed directly to the record holder by or under the direction of
ComputerShare Trust Company, N.A. For questions concerning Shareholder account
information, or if you would like a brochure describing the Dividend
Reinvestment Plan, please call ComputerShare Trust Company, N.A. at (800)
219-4218.
-------------------------------------------------------------------------------
ACM MANAGED DOLLAR INCOME FUND o 47
NOTES
-------------------------------------------------------------------------------
48 o ACM MANAGED DOLLAR INCOME FUND
Privacy Notice
Alliance, the AllianceBernstein Family of Funds and AllianceBernstein
Investment Research and Management, Inc. (collectively, "Alliance" or "we")
understand the importance of maintaining the confidentiality of our customers'
nonpublic personal information. In order to provide financial products and
services to our customers efficiently and accurately, we may collect nonpublic
personal information about our customers from the following sources: (1)
information we receive from account documentation, including applications or
other forms (which may include information such as a customer's name, address,
social security number, assets and income) and (2) information about our
customers' transactions with us, our affiliates and others (including
information such as a customer's account balances and account activity).
It is our policy not to disclose nonpublic personal information about our
customers (or former customers) except to our affiliates, or to others as
permitted or required by law. From time to time, Alliance may disclose
nonpublic personal information that we collect about our customers (or former
customers), as described above, to non-affiliated third party providers,
including those that perform processing or servicing functions and those that
provide marketing services for us or on our behalf pursuant to a joint
marketing agreement that requires the third party provider to adhere to
Alliance's privacy policy. We have policies and procedures to safeguard
nonpublic personal information about our customers (or former customers) which
include: (1) restricting access to such nonpublic personal information and (2)
maintaining physical, electronic and procedural safeguards that comply with
federal standards to safeguard such nonpublic personal information.
ACM MANAGED DOLLAR INCOME FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
[LOGO]
ALLIANCEBERNSTEIN
INVESTMENTS
ACMV-0152-0306
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.
Please see Schedule of Investments contained in the Report to Shareholders
included under Item 1 of this Form N-CSR.
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable when filing a semi-annual report to shareholders.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
There have been no purchases of equity securities by the Fund or by affiliated
parties for the reporting period.
ITEM 10. 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 this item.
ITEM 11. 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 changes in the registrant's internal controls over financial
reporting that occurred during the second fiscal quarter of the period that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
----------- ----------------------
12 (b) (1) Certification of Principal Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
12 (b) (2) Certification of Principal Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
12 (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: May 29, 2006
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: May 29, 2006
By: /s/ Mark D. Gersten
-------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: May 29, 2006