<PAGE>
LETTER TO SHAREHOLDERS ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
April 11, 1995
Dear Shareholder:
The past few months can be divided into two distinct periods. From September
through December, the U.S. bond markets continued to be negatively affected
by higher interest rates. Though the impact of stricter monetary policy was
less dramatic in the last four months of 1994 than earlier in the year,
prices for most domestic fixed income sectors continued to suffer during this
period. Moreover, high yield securities, which are generally less sensitive
to changes in interest rates than other fixed income securities, also
declined. Beginning in January, however, the bond markets rebounded, staging
an impressive rally across nearly all domestic fixed income sectors. This
recent rally was sparked, in part, by the belief of many market participants
that the Federal Reserve may be at, or near, the end of its tightening cycle.
ACM Managed Income Fund benefited from the recent bond market gains. In
particular, the Fund's Treasury and mortgage holdings performed very well.
However, these gains have not been enough to offset earlier price declines.
For the six months ended February 28, 1995, ACM Managed Income Fund had a
total return of -0.22% based on the net asset value, and paid dividends
totaling $0.54 per share, or $0.09 per month. This represents a dividend
distribution rate of 13.71% based on the February 28 market price of $7.875.
From inception in November of 1988 through February 28, 1995, your Fund has
achieved an average annual total return of +10.99% based on the net asset value.
A SOFT LANDING FOR THE ECONOMY?
By increasing short-term interest rates, the Federal Reserve is attempting to
slow gross domestic product (GDP) growth to 2.5% or lower, which should
provide the foundation for continued favorable inflation performance. Indeed,
while the U.S. economy continued its impressive expansion in the second half
of 1994, initial signs of a slowdown have begun to appear. Recently released
U.S. economic data have shown smaller than expected rises in retail sales and
manufacturing output with continued weakness in the automobile and housing
sectors. However, the U.S. economy remains fundamentally strong and despite
recent signs of moderation, the economy should continue to expand in 1995,
albeit at a slower pace. Supporting U.S. economic growth will likely be
continued high levels of consumer (excluding automobiles and housing) and
business spending. Real gains in personal income, strong corporate earnings and
easier access to credit are expected to keep aggregate U.S. consumption at solid
levels in the months ahead.
While an increase in overall price levels is expected this year, the
inflation outlook appears generally favorable. Broad price indices such as
the Consumer Price Index (CPI) and Producer Price Index (PPI) have shown few
signs of acceleration and labor costs remain under control. However, with the
U.S. economy believed to be at or near full capacity utilization, concern
regarding inflation is still warranted. Commodity prices and core
intermediate goods in the PPI have risen sharply over the past 12 months and
recent economic data indicate an increase in service sector prices. If the
economy slows, the upward pressure on prices should ease somewhat due to less
demand for resources. If the economy reaccelerates in the second half of
1995, then concern over inflation would likely lead to additional interest
rate increases by the Federal Reserve.
BOND MARKET OUTLOOK
We have revised our investment outlook to reflect the growing evidence that
higher interest rates have begun to slow the U.S. economy, reducing the
likelihood of significant short-term interest rate increases by the Federal
Reserve. We believe the
1
<PAGE>
ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
economic expansion should continue throughout 1995 with GDP moderating to 2.5%
for the year. While inflation momentum may be building, it is our view that
prices will not spiral ahead dramatically. We expect CPI inflation to crest
around 3.5% in the second half of 1995. If inflation or inflationary
expectations exceed 3.5%, we expect the Federal Reserve to raise the Federal
Funds rate an additional 50 basis points, to 6.50%, by midsummer.
Thirty-year Treasury yields have fallen from a high of 8.16% in 1994 to 7.39%
at the time of this writing. These yields suggest that market participants
expect a "soft landing" for the U.S. economy with limited additional
tightening by the Federal Reserve. While several factors could cause yields
to rise (and therefore prices to decline), support at these levels is
expected to remain firm over the near term. Investors' "flight to quality"
that has resulted from problems in Mexico, combined with other favorable
technical factors, are expected to keep investor demand for Treasurys high
for the remainder of the year.
Similarly, strong investor confidence and a favorable U.S. economic outlook
have fueled demand for corporate and high yield securities. New corporate
issuance is expected to remain modest over the near term due to lower debt
restructuring activity and improved access to alternate means of financing.
The relative lack of corporate and high yield supply should support current
price levels over the next several months.
We appreciate your investment in ACM Managed Income Fund and look forward to
reporting its progress to you in the coming period.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Wayne D. Lyski
Wayne D. Lyski
Senior Vice President
2
<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S PRINCIPAL
INVESTOR AMOUNT
RATINGS (000) VALUE
- - - - ------------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS--62.6%
U.S. TREASURY
SECURITIES--33.1%
U.S. Treasury Bonds
7.50%, 11/15/24....................... $11,500 $ 11,471,250
8.125%, 8/15/19....................... 12,500 13,214,838
12.375%, 5/15/04...................... 13,100 17,521,250
U.S. Treasury Notes
9.25%, 8/15/98........................ 19,600 20,965,865
U.S. Treasury Strips
Zero coupon, 2/15/15.................. 43,470 9,401,213
Zero coupon, 8/15/20.................. 70,200 10,104,167
------------
Total U.S. Treasury Securities
(cost $83,633,008).................... 82,678,583
------------
FEDERAL AGENCY
SECURITIES--29.5%
Federal National Mortgage
Association,
Zero coupon, 10/09/19................. 24,000 3,401,376
Government National
Mortgage Association
7.00%, 1/15/24........................ 16,422 15,293,594
7.50%, 10/15-12/15/23................. 37,746 36,394,688
8.00%, 1/15-4/15/24................... 18,704 18,500,139
------------
Total Federal Agency Securities
(cost $77,781,152).................... 73,589,797
------------
Total U.S. Government and
Agency Obligations
(cost $161,414,160)................... 156,268,380
------------
CORPORATE OBLIGATIONS--35.8%
AEROSPACE & DEFENSE --1.0%
Ba3 Rohr, Inc.
11.625%, 5/15/03...................... 2,500 2,562,500
------------
BASIC INDUSTRIES--4.1%
NR MDC Holdings Corp.
8.75%, 12/15/05....................... 5,000 4,250,000
Series B
11.125%, 12/15/03..................... 7,000 5,932,500
------------
10,182,500
------------
BROADCASTING & CABLE--2.3%
B3 Marcus Cable Operating Co.
13.50%, 8/01/04(a).................... 9,600 5,760,000
------------
CHEMICALS--1.9%
B1 Rexene Corp.
11.75%, 12/01/04...................... $ 4,500 $ 4,702,500
------------
CONSUMER PRODUCTS
& SERVICES--1.2%
B2 Sweetheart Cup Co.
10.50%, 9/01/03....................... 3,000 2,891,250
------------
FINANCIAL--3.1%
B2 Great Bay Property Funding
Corp.
10.875%, 1/15/04...................... 6,500 5,622,500
B3 PRT Funding Corp.
11.625%, 4/15/04...................... 2,500 2,100,000
------------
7,722,500
------------
LEISURE &
ENTERTAINMENT--5.5%
B1 Casino Magic Financial
Corp.
11.50%, 10/15/01...................... 5,000 3,837,500
B3 Diamond Cable
Communication Co.
13.25%, 9/30/04....................... 2,500 1,453,125
Ba2 Gearbulk Holding Ltd.
11.25%, 12/01/04...................... 5,000 5,250,000
NR Hemmeter Enterprises, Inc.
12.00%, 12/15/00 PIK.................. 5,000 3,251,667
------------
13,792,292
------------
METALS--3.7%
B2 Union Carbide Global
Enterprises, Inc.
12.00%, 1/15/05(b).................... 8,750 9,198,438
------------
OIL & GAS--2.6%
Caa Transamerica Refining Corp.
16.50%, 2/15/02....................... 6,000 6,180,000
warrants.............................. 101,012 265,157
------------
6,445,157
------------
RETAILING--3.4%
B3 Star Markets Co.
13.00%, 11/01/04(b)................... 8,000 8,360,000
------------
TECHNOLOGY--1.1%
B2 Computervision Corp.
10.875%, 8/15/97...................... 2,700 2,632,500
------------
</TABLE>
3
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED) ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
MOODY'S PRINCIPAL
INVESTOR AMOUNT
RATINGS (000) VALUE
- - - - -------------------------------------------------------------------------------------
<C> <S> <C> <C>
TELECOMMUNICATIONS--5.9%
B3 Anacomp, Inc.
15.00%, 11/01/00...................... $ 3,000 $ 3,015,000
B2 Mobile Telecommunications
Technology, Inc.
13.50%, 12/15/02...................... 7,300 7,610,250
B3 USA Mobile
Communications, Inc.
14.00%, 11/01/04...................... 4,000 4,260,000
------------
14,885,250
------------
Total Corporate Obligations
(cost $88,201,390)................... 89,134,887
------------
YANKEE OBLIGATIONS--8.4%
B1 Banco Rio De La Plata S.A.
8.75%, 12/15/03....................... 15,000 8,700,000
NR Compania Brasileira
De Projertos
12.50%, 12/22/97(b)................... 7,000 6,702,500
NR Tribasa Toll Road Trust 1
10.50%, 12/01/11 (b).................. 11,000 5,500,000
------------
Total Yankee Obligations
(cost $29,600,980).................... 20,902,500
------------
NON-CONVERTIBLE
PREFERRED STOCK--2.0%
NR Prime Retail, Inc.
10.50%, Series A
(cost $6,125,000)..................... 245,000 4,900,000
------------
CERTIFICATES
OF DEPOSIT--0.8%
Bayerische Landesbank
Spread Notes -- U.S.
Treasury Bond 6.25%,
8/15/23 vs Brazil Par
Bonds 4.00%, 4/15/24 (c)
9.125%, 9/28/95....................... $ 2,000 $ 943,800
9.125%, 10/13/95...................... 2,000 947,400
------------
Total Certificates of Deposit
(cost $4,000,000)..................... 1,891,200
------------
PUT OPTION PURCHASED--0.0%
U.S.Treasury Bond,
7.875%, 11/15/04;
expiring April '95 @100
(cost $53,390).......................... 67 1,570
------------
REPURCHASE AGREEMENT--3.0%
Repurchase Agreement dated
2/28/95 with Citibank N.A.,
Inc., 6.00%, 3/01/95,
collateralized by $7,470,000
U.S. Treasury Notes,
7.50%, 1/15/01, value:
$7,722,113, proceeds:
$7,570,262
(cost $7,569,000)..................... 7,569,000
------------
TOTAL INVESTMENTS--112.6%
(cost $296,963,920)................... 280,667,537
Other assets less liabilities-- (12.6%). (31,223,653)
------------
NET ASSETS--100%........................ $249,443,884
============
</TABLE>
- - - - --------------------------------------------------------------------------------
(a) 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.
(b) Restricted security (see Note A). These securities are exempt from
registration under Rule 144A of the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers. At February 28, 1995, the market value
of these securities aggregated $29,760,938 or 11.9% of net assets.
(c) The redemption value of these securities is indexed to the spread
between the referenced treasury yield and the referenced emerging market
debt yield.
Glossary of Terms:
NR-Not Rated.
PIK-Payment in Kind.
See notes to financial statements.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1995 (UNAUDITED) ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (cost $296,963,920).................................................... $280,667,537
Cash....................................................................................................... 90,947
Receivable for investment securities sold.................................................................. 15,022,134
Interest receivable........................................................................................ 4,372,966
Other assets............................................................................................... 124,830
------------
Total assets............................................................................................... 300,278,414
------------
LIABILITIES
Payable for investment securities purchased................................................................ 48,554,874
Dividend payable........................................................................................... 1,867,945
Advisory fee payable....................................................................................... 134,321
Administrative fee payable................................................................................. 41,329
Accrued expenses and other liabilities..................................................................... 236,061
------------
Total liabilities.......................................................................................... 50,834,530
------------
NET ASSETS.................................................................................................... $249,443,884
============
COMPOSITION OF NET ASSETS
Preferred Stock, $.01 par value per share; 1,900 shares Remarketed Preferred Stock authorized,
950 shares issued and outstanding at $100,000 per share liquidation
preference............................................................................................... $ 95,000,000
Common Stock, $.01 par value per share; 299,998,100 shares authorized, 20,754,944 shares issued
and outstanding.......................................................................................... 207,549
Additional paid-in capital................................................................................. 190,304,233
Distributions in excess of net investment income........................................................... (3,384,652)
Accumulated net realized loss.............................................................................. (16,386,863)
Net unrealized depreciation of investments................................................................. (16,296,383)
------------
$249,443,884
============
NET ASSET VALUE PER SHARE OF COMMON STOCK
($249,443,884 less Remarketed Preferred Stock at liquidation value of $95,000,000 divided by
20,754,944 shares of Common Stock outstanding)........................................................... $7.44
=====
- - - - -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
5
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 28, 1995 (UNAUDITED) ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest................................................................... $12,397,651
Dividends.................................................................. 1,054,820 $13,452,471
-----------
EXPENSES
Advisory fee............................................................... 810,442
Administrative fee......................................................... 249,366
Remarketed preferred stock-remarketing agent's fees........................ 129,042
Transfer agency............................................................ 42,676
Audit and legal............................................................ 40,738
Custodian.................................................................. 21,792
Directors' fees............................................................ 15,931
Reports and notices to shareholders........................................ 11,565
Taxes...................................................................... 10,228
Miscellaneous.............................................................. 24,770
-----------
Total expenses............................................................. 1,356,550
-----------
Net investment income...................................................... 12,095,921
-----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND OPTIONS
Net realized loss on investment transactions............................... (693,339)
Net realized loss on option transactions................................... (171,876)
Net change in unrealized depreciation of investments....................... (8,942,267)
-----------
Net loss on investments.................................................... (9,807,482)
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS....................................... $ 2,288,439
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1995 AUGUST 31,
(UNAUDITED) 1994
----------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income......................................................... $ 12,095,921 $ 23,122,493
Net realized loss on investment and option transactions....................... (865,215) (11,647,115)
Net change in unrealized appreciation (depreciation) of investments........... (8,942,267) (11,313,222)
------------ ------------
Net increase in net assets from operations.................................... 2,288,439 162,156
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
COMMON STOCK:
Dividends from net investment income.......................................... (9,579,266) (21,574,282)
Distributions from net realized gains......................................... -0- (28,389,569)
Distributions in excess of net investment income.............................. (1,548,215) (1,836,437)
Tax return of capital distribution............................................ -0- (926,028)
REMARKETED PREFERRED STOCK:
Dividends from net investment income.......................................... (2,516,655) (3,880,646)
COMMON STOCK TRANSACTIONS
Reinvestment of dividends resulting in the issuance of common stock........... 2,781,178 13,084,186
------------ ------------
Total decrease ............................................................... (8,574,519) (43,360,620)
NET ASSETS
Beginning of year............................................................. 258,018,403 301,379,023
------------ ------------
End of period................................................................. $249,443,884 $258,018,403
============ ============
- - - - ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1995 (UNAUDITED) ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
ACM Managed Income Fund, Inc., (the "Fund") is registered under the Investment
Company Act of 1940 as a non-diversified, closed-end management investment
company. The following is a summary of significant accounting policies followed
by the Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange are valued at the
last sale price on such exchange on the day of valuation or, if there was no
sale on such day, the last bid price quoted on such day. Listed securities not
traded and securities traded in the over-the-counter market, including listed
debt securities whose primary market is believed to be over-the-counter, are
valued at the mean between the most recently quoted bid and asked price provided
by the principal market makers. Options are valued at market value or fair value
using methods determined by the Board of Directors. Securities for which market
quotations are not readily available and restricted securities which are subject
to limitations as to their resale are valued in good faith at fair value using
methods determined by the Board of Directors. Readily marketable fixed-income
securities are valued on the basis of prices provided by a pricing service when
such prices are believed by the Adviser to reflect the fair value of such
securities. Securities which mature in 60 days or less are valued at amortized
cost, which approximates market value, unless this method does not represent
fair value.
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 all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Interest income is accrued daily. Dividend income is recorded on the ex-dividend
date. Security transactions are accounted for on the date the securities are
purchased or sold. Security gains and losses are determined on the identified
cost basis. The Fund accretes discounts as adjustments to interest income.
4. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gains distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles.
- - - - --------------------------------------------------------------------------------
NOTE B: ADVISORY AND ADMINISTRATIVE FEES
Under the terms of an Investment Advisory Agreement, the Fund pays Alliance
Capital Management L.P., (the "Adviser") an advisory fee equal to an annualized
rate of .65 of 1% of the average adjusted weekly net assets of the Fund during
the month.
Under the terms of an Administrative Agreement, the Fund pays Princeton
Administrators, L.P. (the "Administrator") a monthly fee equal to an annualized
rate of .20 of 1% of the Fund's average adjusted weekly net assets. The
Administrator prepares financial and regulatory reports for the Fund and
provides other clerical services.
- - - - --------------------------------------------------------------------------------
NOTE C: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding U.S. government
securities, short term investments and options) aggregated $195,648,428 and
$206,708,343, respectively, for the six months ended February 28, 1995. At
February 28, 1995 the cost of investments for federal income tax purposes was
$296,963,920. Accordingly, gross unrealized appreciation of investments was
$4,359,463 and gross unrealized depreciation of investments was $20,655,846,
resulting in net unrealized depreciation of $16,296,383.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
NOTE D: CAPITAL STOCK
There are 300,000,000 shares of $.01 par value capital stock authorized.
COMMON STOCK
Of the 20,754,944 shares of Common Stock outstanding at February 28, 1995,
the Advisor owned 10,753 shares. During the six months ended February 28,
1995 and the year ended August 31, 1994 the Fund issued 350,084 and 1,282,267
shares, respectively, in connection with the Fund's dividend reinvestment plan.
PREFERRED STOCK
The Fund has issued and outstanding 950 shares of Remarketed Preferred Stock
each at a liquidation value of $100,000 per share. The dividend rate on the
Remarketed Preferred Stock may change every 28 days as set by the remarketing
agent. Commencing on February 23, 1995, the Remarketed Preferred Stock had a
rate of 6.50% set for a special dividend period of 182 days.
- - - - --------------------------------------------------------------------------------
NOTE E: QUARTERLY RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
NET INCREASE
NET REALIZED (DECREASE)
AND UNREALIZED IN NET ASSETS
NET INVESTMENT GAIN (LOSS) RESULTING FROM MARKET PRICE
INCOME ON INVESTMENTS OPERATIONS ON NYSE
------------------ -------------------- ------------------- -------------------
PER PER PER
TOTAL COMMON TOTAL COMMON TOTAL COMMON
QUARTER ENDED (000) SHARE (000) SHARE (000) SHARE HIGH LOW
- - - - ------------- ------- ------ -------- ------ ------- ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
February 28, 1995...... $ 6,062 $ .29 $ 1,543 $ .08 $ 7,605 $ .37 $ 8.625 $ 7.625
November 30, 1994...... 6,034 .29 (11,351) (.55) (5,317) (.26) $ 9.000 $ 7.375
------- ----- -------- ------ ------- ------
$12,096 $ .58 $ (9,808) $ (.47) $ 2,288 $ .11
======= ===== ======== ====== ======= ======
August 31, 1994........ $ 5,576 $ .27 $ (591) $ (.02) $ 4,985 $ .25 $10.000 $ 8.375
May 31, 1994........... 5,839 .29 (19,631) (.97) (13,792) (.68) $11.125 $ 8.750
February 28, 1994...... 5,601 .28 (5,175) (.21) 426 .07 $12.250 $10.625
November 30, 1993...... 6,106 .32 2,437 .13 8,543 .45 $11.875 $11.250
------- ----- -------- ------ ------- ------
$23,122 $1.16 $(22,960) $(1.07) $ 162 $ .09
======= ===== ======== ====== ======= ======
</TABLE>
8
<PAGE>
FINANCIAL HIGHLIGHTS ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 28, 1995 ---------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year......... $7.99 $10.79 $9.32 $8.39 $7.93 $9.40
------ ------ ------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS
- - - - ---------------------------------
Net investment income...................... .58 1.16 1.18 1.33 1.45 1.29
Net realized and unrealized gain (loss)
on investments and option
transactions............................. (.47) (1.07) 1.63 .83 .38 (1.21)
------ ------ ------- ------- ------ ------
Net increase in net asset value from
operations............................... .11 .09 2.81 2.16 1.83 .08
------ ------ ------- ------- ------ ------
LESS: DISTRIBUTIONS
- - - - -------------------
Distributions to common shareholders:
Dividends from net investment income..... (.46) (1.09) (1.08) (.98) (1.01) (1.01)
Distributions from net realized gain..... -0- (1.48) (.09) -0- -0- (.13)
Dividends in excess of net investment
income................................. (.08) (.09) -0- -0- -0- -0-
Tax return of capital distribution....... -0- (.04) -0- -0- -0- -0-
Distributions to preferred shareholders:
Common Stock equivalent of
dividends paid to Remarketed
Preferred shareholders............... (.12) (.19) (.17) (.24) (.36) (.30)
------ ------ ------- ------- ------ ------
Total dividends and distributions.......... (.66) (2.89) (1.34) (1.22) (1.37) (1.44)
------ ------ ------- ------- ------ ------
Offering costs and Remarketed
Preferred Stock underwriting
discounts............................ -0- -0- -0- -0- -0- (.11)
Tender offer costs......................... -0- -0- -0- (.01) -0- -0-
------ ------ ------- ------- ------ ------
Net asset value, end of period............. $ 7.44 $ 7.99 $ 10.79 $ 9.32 $ 8.39 $ 7.93
====== ====== ======= ======= ====== ======
Market value, end of period................ $7.875 $8.875 $11.375 $10.250 $8.375 $7.250
====== ====== ======= ======= ====== ======
TOTAL RETURN
- - - - ------------
Total investment return based on: (a)
Market value............................. (4.92)% .66% 24.82% 36.73% 31.02% (10.20)%
Net asset value.......................... (.22)% (4.42)% 30.22% 24.10% 19.99% (3.35)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted).. $249,444 $258,018 $301,379 $267,580 $257,905 $248,597
Ratio of expenses to average net
assets (c)............................... 1.10%(b) 1.14% 1.05% 1.09% 1.11% 1.09%
Ratio of net investment income to
average net assets (c)................... 9.78%(b) 8.32% 8.06% 9.54% 11.20% 10.68%
Portfolio turnover rate.................... 119% 366% 490% 630% 293% 310%
</TABLE>
- - - - --------------------------------------------------------------------------------
(a) 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 period. 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.
(b) Annualized.
(c) The expense ratio and net investment income ratio do not reflect the
effect of dividend payments to preferred shareholders.
9
<PAGE>
ACM MANAGED INCOME FUND, INC.
- - - - --------------------------------------------------------------------------------
BOARD OF DIRECTORS
JOHN D. CARIFA, Chairman and President
RUTH BLOCK
DAVID H. DIEVLER
JAMES R. GREENE
DR. JAMES M. HESTER
HON. JAMES D. HODGSON
CLIFFORD L. MICHEL
ROBERT C. WHITE
OFFICERS
WAYNE D. LYSKI, Senior Vice President
PAUL J. DENOON, Vice President
EDMUND P. BERGAN, JR., Secretary
MARK D. GERSTEN, Treasurer & Chief Financial Officer
JOSEPH J. MANTINEO, Controller
ADMINISTRATOR
PRINCETON ADMINISTRATORS, L.P.
P.O. Box 9011
Princeton, NJ 08543-9011
PREFERRED STOCK:
DIVIDEND PAYING AGENT, TRANSFER AGENT AND REGISTRAR
IBJ SCHRODER BANK & TRUST CO.
1 State Street
New York, NY 10004
COMMON STOCK:
CUSTODIAN, DIVIDEND PAYING AGENT, TRANSFER AGENT AND REGISTRAR
STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, MA 02110
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
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 herein, is transmitted to the
shareholders of ACM Managed Income Fund, Inc. for their information. This is not
a prospectus, circular or representation intended for use in the purchase of
shares of the Fund or any securities mentioned in this report.
10
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<PAGE>
ACM
- - - - --------------------------------------------------------------------------------
Managed
- - - - --------------------------------------------------------------------------------
Income Fund
- - - - --------------------------------------------------------------------------------
Semi-Annual
Report
February 28, 1995
Alliance/(R)/
Mutual funds without the Mystery./SM/
ACM MANAGED INCOME FUND, INC.
Summary of General Information
THE FUND
ACM Managed Income Fund, Inc. is a closed-end investment company whose shares
trade on the New York Stock Exchange. The Fund seeks to provide investors with a
high level of total return by seeking both high current income and capital
appreciation. In seeking this objective the Fund will invest primarily in U.S.
Government securities and corporate fixed income securities. In addition, the
Fund may utilize certain other investment techniques, including options and
futures contracts.
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares are published in the New York Stock
Exchange Composite Transaction section of newspapers. The Fund's NYSE trading
symbol is "AMF". Weekly comparative net asset value (NAV) and market price
information about the Fund is published each Monday in The Wall Street Journal
and each Saturday in The New York Times and other newspapers in a table called
"Closed-End Bond Funds".
DIVIDEND REINVESTMENT PLAN
A Dividend Reinvestment Plan provides automatic reinvestment of dividends and
capital gains distributions in additional Fund shares. A brochure describing the
Plan is available from the Plan Agent, State Street Bank and Trust Company, by
calling 1-800-219-4218.
ACM MANAGED INCOME FUND, INC.
1345 Avenue of the Americas
New York, New York 10105
Alliance Capital [LOGO APPEARS HERE]
/(R)/ These registered service marks used under license from the owner,
Alliance Capital Management L.P.
MIFSR
