<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities and Exchange Act of 1934
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)
January 22, 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 5 pages)
There are no exhibits.
<PAGE>
SCHEDULE 13D
CUSIP No. 025919101 Page 2 of 5 Pages
--- ---
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |__|
(b) |__|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |__|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
NEW YORK
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 320,911 Shares
SHARES ------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 320,911 Shares
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICALLY OWNED BY EACH REPORTING PERSON
320,911 Shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
|__|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.31%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA
- --------------------------------------------------------------------------------
*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.
<PAGE>
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 non 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 Unites 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 net asset at which
the fund currently trades which may include a proposal
<PAGE>
at the next shareholder meeting.
ITEM 5 Interest in Securities of the Issuer
------------------------------------
a) As of the date of this Report, KIM owns 320,911 shares, which
represents 1.31% 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.
Purchase Shares Price Per Purchase Shares Price Per
Date Purchased Share Date Purchased Share
3/8/96 27,500 5.75 1/28/97 1,000 6.125
3/11/96 8,700 5.75 1/31/97 1,000 6.125
4/10/96 2,000 5.625 2/3/97 1,000 6
9/13/96 80,000 6 2/19/97 1,000 6.125
12/3/96 25,100 6.125 2/19/97 1,000 6.25
12/5/96 15,000 6.125 2/20/97 1,000 6.125
12/9/96 75,000 6.125 2/21/97 1,000 6.125
12/11/96 2,000 6 3/19/97 5,000 6.125
12/19/96 7,200 6 3/27/97 1,200 6
12/31/96 4,700 6.125 4/29/97 4,000 6.125
1/8/97 1,500 6.125 5/1/97 2,000 6.125
1/9/97 1,500 6.125 6/18/97 1,400 6.125
1/10/97 6,300 6.125 6/19/97 8,400 6.125
1/13/97 1,500 6.125 6/20/97 1,200 6.125
1/14/97 1,500 6.125 6/30/97 -2,200 6.25
1/15/97 1,500 6 7/1/97 -9,100 6.25
1/16/97 1,500 6.125 7/2/97 -700 6.25
1/17/97 1,500 6.125 7/3/97 8,000 6.25
1/20/97 1,500 6 7/28/97 5,000 6.3125
1/21/97 1,500 6 8/25/97 3,000 6.3125
1/22/97 1,500 6.125 8/27/97 22,100 6.375
1/23/97 1,500 6.125 8/28/97 19,000 6.375
1/24/97 1,000 6.125 8/29/97 6,400 6.375
1/27/97 1,000 6.125 11/21/97 10,000 6.3125
<PAGE>
11/25/97 2,500 6.3125
12/1/97 -41,078 6.91
12/3/97 20,000 6.25
12/5/97 11,500 6.25
12/8/97 -81,711 6.91
12/8/97 46,000 6.25
The above listed transactions have totaled 320,911 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.
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.
January 22, 1998 By: /s/ George W. Karpus Pres
- ---------------- ------------------------------
Date Signature
George W. Karpus, President
---------------------------
Name / Title
