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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities and Exchange Act of 1934
(Amendment No 3)
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)
May 5, 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.
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SCHEDULE 13D
CUSIP No. 025919101 Page 2 of 5 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 823,448 Shares
SHARES ------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 823,448 Shares
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICALLY OWNED BY EACH REPORTING PERSON
823,448 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)
4.48%
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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 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
(Page 3 of 5 pages)
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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 823,448 shares, which
represents 4.48% 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 January 8, 1998 for the Accounts.
There have been no dispositions and no acquisitions, other than
by such open market purchases, during such period unless
indicated.
PRICE PER PRICE PER
DATE SHARES SHARE DATE SHARES SHARE
1/8/98 14,800 6.375 3/9/98 20,000 6.6875
1/9/98 17,100 6.375 3/10/98 6,517 6.6875
1/12/98 1,100 6.375 3/11/98 1,800 6.6875
1/14/98 9,300 6.375 3/12/98 16,147 6.6875
1/15/98 13,900 6.375 3/13/98 7,000 6.6875
1/16/98 1,300 6.375 3/16/98 2,200 6.6875
1/20/98 6,100 6.375 4/3/98 6,500 6.6875
1/21/98 25,100 6.375 4/6/98 3,800 6.6875
1/22/98 52,700 6.375 4/7/98 2,200 6.6875
1/23/98 113,600 6.375 4/24/98 10,098 6.6875
1/26/98 98,400 6.4375 4/27/98 45,551 6.6875
1/27/98 17,600 6.4375 4/29/98 1,900 6.625
1/29/98 3,500 6.4375
1/30/98 8,500 6.5
2/6/98 3,724 6.4375
2/20/98 -8,000 6.8125
(Page 4 of 5 pages)
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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.
May 5, 1998 By:/s/George W. Karpus, President
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Date Signature
George W. Karpus, President
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Name / Title
(Page 5 of 5)
