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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities and Exchange Act of 1934
(Amendment No 2)
AMERICAN GOVERNMENT INCOME PORTFOLIO, INC.
(AAF)
(Name of Issuer)
Common Stock
(Title of Class of Securities)
025919101
(CUSIP Number)
George W. Karpus, President
Karpus Management, Inc. d/b/a
Karpus Investment Management
14 Tobey Village Office Park
Pittsford, New York 14534
(716) 586-4680
(Name, Address, and Telephone Number of Person Authorized to
Receive Notices and Communications)
April 7, 1998
(Date of Event which Requires Filing of this Statement)
If the person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule
13D, and is filing this schedule because of
Rule 13d-1 (b) (3) or (4), check the following box. [x]
(Page 1 of 6 pages)
There are no exhibits.
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SCHEDULE 13D
CUSIP No. 025919101 Page 2 of 6 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Karpus Management, Inc. d/b/a Karpus Investment Management
I.D. # 16-1290558
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / X /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
NEW YORK
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7 SOLE VOTING POWER
NUMBER OF 753,399 Shares
SHARES ------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 753,399 Shares
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICALLY OWNED BY EACH REPORTING PERSON
753,399 Shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/__/
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.01%
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14 TYPE OF REPORTING PERSON*
IA
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 2 of 7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
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ITEM 1 Security and Issuer
Common Stock
American Government Income Portfolio, Inc.
Piper Capital Management, Inc.
222 South Ninth Street
Minneapolis, Minnesota 55402-3804
ITEM 2 Identity and Background
a) Karpus Management, Inc. d/b/a Karpus Investment Management
("KIM")
George W. Karpus, President, Director and Controlling Stockholder
JoAnn VanDegriff, Vice President and Director
Sophie Karpus, Director
b) 14 Tobey Village Office park
Pittsford, New York 14534
c) Principal business and occupation - Investment Management for
individuals, pension and profit sharing plans, corporations,
endowments, trust and others, specializing in conservative asset
management (i.e. fixed income investments).
d) None of George W. Karpus, JoAnn VanDegriff, or Sophie
Karpus ("the Principals") or KIM has been convicted in the
past five years of any criminal proceeding (excluding
traffic violations).
e) During the last five years none of the principals or KIM has been a
party to a civil proceeding as a result of which any of them is
subject to a judgment, decree or final order enjoining future
violations of or prohibiting or mandating activities subject to,
federal or state securities laws or finding any violation with
respect to such laws.
f) Each of the Principals is a United States citizen. KIM is a
New York corporation.
ITEM 3 Source and Amount of Funds or Other Considerations
KIM, an independent investment advisor, has accumulated shares
of AAF on behalf of accounts that are managed by KIM ("the
Accounts") under limited powers of attorney. All funds that
have been utilized in making such purchases are from such
Accounts.
ITEM 4 Purpose of Transaction
KIM has purchased Shares for investment purposes. Being primarily a
fixed income manager, with a specialty focus in the closed end fund
sector, the profile of AAF fit the investment guidelines for various
Accounts. Shares have been acquired since March 8, 1996. KIM intends to
influence management and the Board of Directors to represent
shareholder interest and to take steps to close the discount to
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net asset at which the fund currently trades. This may include a
proposal at the next shareholder meeting. Initially KIM submitted a
formal proposal to management to add to the proxy a vote on appointing
KIM as the investment advisor. Subsequently KIM had made a proposal to
open-end the fund to management. On March 6, 1998 KIM formally
announced that it was withdrawing any proposal regarding the fund and
would no longer be seeking a shareholder list. KIM's proposal came on
the heels of Piper Capital's announcement on February 19, 1998 that it
" intends to recommend to the board of directors that several of the
funds be converted to an open-end format". In a letter dated February
25, 1998 to Karpus, the Piper Capital Management's general counsel and
senior vice president affirmed her firms position and added that
management does not intend to recommend that a redemption fee be
imposed in connection with the proposed open ending of the fund.
Karpus hailed the decision by Piper Capital Management as a
significant breakthrough for the benefit of the shareholders. He
praised the responsiveness of the Piper Capital Management team for
its willingness to communicate freely regarding these matters. A
shareholder vote regarding open ending of the fund is expected at the
annual meeting in late July or early August.
ITEM 5 Interest in Securities of the Issuer
a) As of the date of this Report, KIM owns 753,399 shares, which
represents 4.01% of the outstanding Shares. None of the Principals
presently own shares. However Karpus Investment Management Profit
Sharing Plan purchased 1,200 shares on March 8, 1996 at a price per
share of $5.75 (424 shares of which were tendered to the Fund).
b) KIM has the sole power to dispose of and to vote all of such Shares
under limited powers of attorney.
c) Open market purchases since March 6, 1996 for the Accounts. There
have been no dispositions and no acquisitions, other than by such
open market purchases, during such period unless indicated.
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Purchase Shares Price Per Purchase Shares Price Per
Date Purchased Share Date Purchased Share
3/8/96 27,500 5.75 6/30/97 -2,200 6.25
3/11/96 8,700 5.75 7/1/97 -9,100 6.25
4/10/96 2,000 5.625 7/2/97 -700 6.25
9/13/96 80,000 6 7/3/97 8,000 6.25
12/3/96 25,100 6.125 7/28/97 5,000 6.3125
12/5/96 15,000 6.125 8/25/97 3,000 6.3125
12/9/96 75,000 6.125 8/27/97 22,100 6.375
12/11/96 2,000 6 8/28/97 19,000 6.375
12/19/96 7,200 6 8/29/97 6,400 6.375
12/31/96 4,700 6.125 11/21/97 10,000 6.3125
1/8/97 1,500 6.125 11/25/97 2,500 6.3125
1/9/97 1,500 6.125 12/1/97 -41,078 6.91
1/10/97 6,300 6.125 12/3/97 20,000 6.25
1/13/97 1,500 6.125 12/5/97 11,500 6.25
1/14/97 1,500 6.125 12/8/97 -81,711 6.91
1/15/97 1,500 6 12/8/97 46,000 6.25
1/16/97 1,500 6.125 1/8/98 14,800 6.375
1/17/97 1,500 6.125 1/9/98 17,100 6.375
1/20/97 1,500 6 1/12/98 1,100 6.375
1/21/97 1,500 6 1/14/98 9,300 6.375
1/22/97 1,500 6.125 1/15/98 13,900 6.375
1/23/97 1,500 6.125 1/16/98 1,300 6.375
1/24/97 1,000 6.125 1/20/98 6,100 6.375
1/27/97 1,000 6.125 1/21/98 25,100 6.375
1/28/97 1,000 6.125 1/22/98 52,700 6.375
1/31/97 1,000 6.125 1/23/98 113,600 6.375
2/3/97 1,000 6 1/26/98 98,400 6.4375
2/19/97 1,000 6.125 1/27/98 17,600 6.4375
2/19/97 1,000 6.25 1/29/98 3,500 6.4375
2/20/97 1,000 6.125 1/30/98 8,500 6.5
2/21/97 1,000 6.125 2/6/98 3,724 6.4375
3/19/97 5,000 6.125 2/20/98 -8,000 6.8125
3/27/97 1,200 6 3/9/98 20,000 6.6875
4/29/97 4,000 6.125 3/10/98 6,517 6.6875
5/1/97 2,000 6.125 3/11/98 1,800 6.6875
6/18/97 1,400 6.125 3/12/98 16,147 6.6875
6/19/97 8,400 6.125 3/13/98 7,000 6.6875
6/20/97 1,200 6.125 3/16/98 2,200 6.6875
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The above listed transactions have totaled 753,399 shares Sale
transactions of December 1, 1997 and December 8, 1997 represent shares
that had been tendered to the Fund per tender offer. The Accounts have
the right to receive all dividends from, any proceeds from the sale of
the Shares. None of the Accounts has an interest in shares
constituting more than 5% of the Shares outstanding.
ITEM 6 Contracts, Arrangements, Understandings, or Relationships
with Respect to Securities of the Issuer.
Except as described above, there are no contracts, arrangements,
understandings or relationships of any kind among the Principals and
KIM and between any of them and any other person with respect to any
of AAF securities.
ITEM 7 Materials to be Filed as Exhibits
Not applicable.
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Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete, and
correct.
Karpus Management, Inc.
April 7, 1998 By: /s/ George W. Karpus Pres
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Date Signature
George W. Karpus, President
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Name / Title
