<PAGE>
LETTER TO SHAREHOLDERS ACM Managed Dollar Income Fund
===============================================================================
November 10, 1999
Dear Shareholder:
We are pleased to report to you on the investment performance and outlook for
the ACM Managed Dollar Income Fund (the "Fund"), for the annual reporting period
ended September 30, 1999. The Fund is designed for investors who seek high
current income and capital appreciation. To achieve this objective, the Fund
invests primarily in high-yielding, high-risk, U.S. and non-U.S. fixed-income
securities, denominated in U.S. dollars, that we expect to benefit from
improving economic and credit fundamentals.
INVESTMENT RESULTS
The following table shows how the Fund performed over the past six- and twelve-
month periods ended September 30, 1999. For comparison we have included
corresponding information for the Fund's benchmark, which remains a blended
composite consisting of 65% the JP Morgan Emerging Markets Bond Index Plus (the
"JPM EMBI-Plus"), which is a standard measure of the performance of a basket of
unmanaged emerging market debt securities, and 35% the CS First Boston High
Yield Index, which is a standard measure of the performance of a basket of
unmanaged U.S. high-yield debt securities. We use such a blended composite
benchmark because it more closely resembles the composition of your Fund than
does either index separately.
We are pleased to report that your Fund outperformed its composite benchmark for
both the six- and twelve-month periods. The Fund's use of leverage (23.8%
leveraged as of September 30, 1999) and its emerging market debt holdings
enhanced the Fund's performance for both periods. In particular, the Fund's
holdings in Russia, Venezuela, Bulgaria and Mexico performed well during both
time periods as global growth improved.
INVESTMENT RESULTS(*)
Periods Ended September 30, 1999
Total Returns
6 Months 12 Months
-------- ---------
ACM Managed Dollar
Income Fund 5.69% 18.69%
JP Morgan Emerging
Markets Bond Index-Plus 6.51% 23.00%
CS First Boston High
Yield Index -0.47% 3.95%
65%/35% Composite: 4.07% 16.33%
(*) The Fund's investment results represent total returns and are based on the
net asset value as of September 30, 1999. All fees and expenses related to
the operation of the Fund have been deducted. Returns for the Fund include
the reinvestment of any distributions paid during the period. Past
performance is no guarantee of future results.
The JP Morgan Emerging Markets Bond Index-Plus is composed of dollar-
denominated restructured sovereign bonds; a large percentage of the index
is made up of Brady bonds. The CS First Boston High Yield Index is a
trader-priced portfolio representing 250 sectors and constructed to
mirror the high-yield debt market. The indices are unmanaged and reflect no
fees or expenses. An investor cannot invest directly in an index.
MARKET OVERVIEW
During the six-month period ended September 30, 1999, global economic growth
improved and continued to broaden as Europe, Japan and Asia showed further signs
of strengthening. U.S. economic growth downshifted but remained strong, while
inflation and unemployment stayed low.
With economic activity remaining strong and global liquidity concerns abating,
the U.S. Federal Reserve adopted a monetary policy tightening bias in May and
increased the Federal Funds rate by 25 basis points in June and then by another
25 basis points in August.
1
<PAGE>
LETTER TO SHAREHOLDERS (continued) ACM Managed Dollar Income Fund
================================================================================
(A third 25 basis point increase in interest rates was announced on November 15,
1999.)
Emerging market debt performed well over the period as global economic growth
improved and commodity prices firmed. The emerging market debt sector, as
represented by the JPM EMBI-Plus, outperformed all other bond market sectors
within the Fund's portfolio, posting a strong +6.51% return during the six-month
period ended September 30, 1999. Most individual country returns within the JPM
EMBI-Plus were positive during the period with Russia leading the way (+81%) and
Venezuela (+13%) and Bulgaria (+10%) also outperforming. Rising oil prices
helped the performance of Russian and Venezuelan debt as both countries are
heavily dependent on oil exports. Russian bond prices were also boosted by
indications that the government will restructure its Soviet Union-era debt.
Ecuador's debt posted the worst performance, declining by 26% after the
government delayed making interest payments on its debt.
The high-yield sector, as represented by the CS First Boston High Yield Index,
performed poorly during the six months ended September 30, 1999, declining by
0.47%. Rising interest rates, large corporate debt issuance and Y2K uncertainty
hurt the performance of all non-Treasury securities. The high-yield sector's
performance was also dampened by these factors as well as rising default rates
and mutual fund outflows. Within the high-yield sector, lower-quality, B-rated
securities underperformed higher-quality, BB-rated securities.
OUTLOOK
The global economy continues to gather momentum. We expect the U.S. economy to
remain strong through year-end and into the millennium. Growth estimates for
1999 and 2000 are close to 3.5%. Positive inflation fundamentals, however,
should keep long-term interest rates trading in a range of 6.0% - 6.5%. While we
believe there are structural forces in the marketplace rendering credit markets
less liquid, the passing of Y2K should alleviate some liquidity pressures,
causing non-Treasury spreads to narrow somewhat from current levels.
Stronger global growth coupled with the recent firming in commodity prices will
continue to provide the environment necessary for emerging countries to
gradually improve their credit profiles. In Latin America, Brazil continues to
exceed expectations for fiscal reform, while Mexico could move to investment-
grade status in the year 2000. In Asia, the macroeconomic picture continues to
surprise on the upside but progress on corporate restructuring remains slow.
We continue to view the high-yield sector favorably. Currently, the average
high-yield index is yielding about 6.0% over Treasuries, which offers
significant value. The combination of increased inflows, passing of Y2K, strong
growth and low inflation suggests high-yield spreads should contract, resulting
in rising bond prices.
Thank you for your continued interest and investment in ACM Managed Dollar
Income Fund. We look forward to reporting to you again on market activity and
the Fund's investment results in the coming periods.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman
/s/ Wayne D. Lyski
Wayne D. Lyski
President
2
<PAGE>
PORTFOLIO OF INVESTMENTS
September 30, 1999 ACM Managed Dollar Income Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS--60.5%
OTHER SOVEREIGN DEBT
OBLIGATIONS--40.4%
ARGENTINA--4.6%
Republic of Argentina
9.75%, 9/19/27 ............................ $ 3,000 $ 2,520,000
12.125%, 2/25/19 .......................... 6,000 6,000,000
-----------
8,520,000
-----------
COLOMBIA--4.5%
Republic of Colombia
8.625%, 4/01/08 ........................... 5,000 4,025,000
9.75%, 4/23/09 ............................ 5,000 4,287,500
-----------
8,312,500
-----------
KAZAKHSTAN--2.7%
Republic of Kazakhstan
13.625%, 10/18/04 (a) ..................... 5,000 4,975,000
-----------
LEBANON--1.6%
Republic of Lebanon
10.25%, 10/06/09 (a) ...................... 3,000 3,003,750
-----------
MEXICO--9.9%
United Mexican States
Series XW
10.375%, 2/17/09 ........................ 18,000 18,265,500
-----------
RUSSIA--7.8%
Ministry Finance of Russia
Series VI
3.00%, 5/14/06 .......................... 26,750 5,451,650
Russian Principal Loans FRN
6.0625%, 12/15/20 (b) ................... 7,250 634,375
Russian Federation
8.75%, 7/24/05 .......................... 20,000 8,250,000
-----------
14,336,025
-----------
TURKEY--5.4%
Republic of Turkey
12.375%, 6/15/09 ........................ 10,000 9,925,000
-----------
VENEZUELA--3.9%
Republic of Venezuela
9.25%, 9/15/27 .......................... 11,000 7,260,000
-----------
Total Other Sovereign Debt
Obligations
(cost $76,231,630) ...................... 74,597,775
-----------
NON-COLLATERALIZED
BRADY BONDS--16.0%
BRAZIL--7.2%
Republic of Brazil--C Bonds
8.00%, 4/15/14 (c) ...................... 13,148 8,366,178
Republic of Brazil
NMB L FRN
5.9375%, 4/15/09 ........................ 7,000 4,926,600
-----------
13,292,778
-----------
BULGARIA--3.8%
Republic of Bulgaria IAB
FRN
6.50%, 7/28/11 ............................ 10,000 7,088,000
-----------
PERU--2.1%
Republic of Peru FLIRB
3.75%, 3/07/17 (d) ........................ 7,000 3,771,600
-----------
VENEZUELA--2.9%
Republic of Venezuela
FLIRB
Series A
6.875%, 3/31/07 (d) ....................... 7,143 5,392,814
-----------
Total Non-Collateralized
Brady Bonds
(cost $29,651,053) ........................ 29,545,192
-----------
LOAN PARTICIPATION--4.1%
MOROCCO--4.1%
Kingdom of Morocco
Loan Participation FRN
Series A
5.906%, 1/01/09
(cost $7,873,314) ......................... 9,048 7,645,238
-----------
Total Sovereign Debt Obligations
(cost $113,755,997) ....................... 111,788,205
-----------
3
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS(continued) ACM Managed Dollar Income Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. CORPORATE DEBT
OBLIGATIONS--48.4%
AGRICULTURE--1.8%
Trans-Resources, Inc.
Series B
10.75%, 3/15/08 ........................... $ 3,750 $ 3,393,750
------------
BROADCASTING &
CABLE--0.5%
Classic Cable, Inc.
9.375%, 8/01/09 (a) ....................... 1,000 970,000
------------
BROADCASTING &
MEDIA--1.5%
Marvel Enterprises, Inc.
12.00%, 6/15/09 ........................... 3,000 2,745,000
------------
CHEMICALS--1.0%
Royster-Clark, Inc.
10.25%, 4/01/09 (a) ....................... 2,000 1,800,000
------------
COMMUNICATIONS--12.3%
Econophone, Inc.
13.50%, 7/15/07 ........................... 4,000 4,295,000
Logix Communications
Enterprises, Inc.
12.25%, 6/15/08 ........................... 5,000 4,325,000
Viatel, Inc.
11.50%, 3/15/09 ........................... 6,000 5,790,000
Williams Communications
Group, Inc.
10.875%, 10/01/09 ......................... 4,000 3,969,960
Winstar Communications, Inc.
11.00%, 3/15/08 ........................... 5,000 4,343,750
-----------
22,723,710
-----------
CONSUMER
MANUFACTURING--3.4%
Generac Portable Products, LLC
11.25%, 7/01/06 ........................... 4,000 4,120,000
International Knife and Saw, Inc.
11.375%, 11/15/06 ......................... 2,740 2,130,350
-----------
6,250,350
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
<S> <C> <C>
ENERGY--4.5%
Continental Resources, Inc.
10.25%, 8/01/08 ........................... $ 5,000 $ 4,150,000
Eott Energy Partners LP
11.00%, 10/01/09 .......................... 4,000 4,060,000
-----------
8,210,000
-----------
GROCERY--1.4%
DiGiorgio Corp. Series B
10.00%, 6/15/07 ........................... 2,750 2,557,500
-----------
LEISURE &
ENTERTAINMENT--1.1%
TVN Entertainment Corp.
14.00%, 8/01/08 (a) ....................... 5,000 2,000,000
warrants, expiring
8/01/08 (e)(f) ............................ 5,000 12,500
-----------
2,012,500
-----------
METAL/MINERALS--7.0%
ACME Metals, Inc.
10.875%, 12/15/07 (b) ..................... 6,000 1,110,000
Commonwealth Aluminum Corp.
10.75%, 10/01/06 .......................... 3,000 3,003,750
Doe Run Resources Corp.
Series B
11.25%, 3/15/05 ........................... 6,000 4,950,000
Republic Technology, Inc.
13.75%, 7/15/09 (a) ....................... 4,000 3,820,000
-----------
12,883,750
-----------
PAPER PACKAGING--4.9%
Riverwood International
10.25%, 4/01/06 ........................... 4,000 3,950,000
Russell-Stanley Holdings, Inc.
10.875%, 2/15/09 .......................... 5,000 5,075,000
-----------
9,025,000
-----------
PETROLEUM PRODUCTS--1.6%
Chesapeake Energy Corp. ....................
Series B
9.625%, 5/01/05 ........................... 3,000 2,887,500
-----------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
ACM Managed Dollar Income Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
<S> <C> <C>
PLASTICS--2.6%
Foamex LP
13.50%, 8/15/05 ............................. $ 5,000 $ 4,868,750
-----------
TECHNOLOGY--1.6%
PSINet, Inc.
11.00%, 8/01/09 (a) ......................... 3,000 2,977,500
-----------
TELECOMMUNICATIONS--3.2%
GST Equipment Funding, Inc.
13.25%, 5/01/07 ............................. 5,000 5,250,000
Iridium LLC Capital Corp.
Series B
14.00%, 7/15/05 (b) ......................... 5,000 575,000
-----------
5,825,000
-----------
Total U.S. Corporate Debt Obligations
(cost $105,696,839) ......................... 89,130,310
-----------
NON-U.S. CORPORATE DEBT
OBLIGATIONS--16.9%
ARGENTINA--5.5%
Compania Alimentos Fargo
13.25%, 8/01/08 ............................. 4,500 3,498,750
IMPSA Metalurgicas Pescarm
9.50%, 5/31/02 (a) .......................... 5,000 3,162,500
Supercanal Holdings, SA
12.00%, 11/07/02 ............................ 3,478 3,477,625
-----------
10,138,875
-----------
CANADA--1.6%
Repap New Brunswick
11.50%, 6/01/04 (a) ......................... 3,000 3,030,000
-----------
HONG KONG--1.3%
Guangdong Enterprises
8.875%, 5/22/07 (a) ......................... 10,400 2,392,000
-----------
MEXICO--2.2%
Innova, S. de R.L
12.875%, 4/01/07 ............................ 5,000 4,037,500
-----------
NETHERLANDS--1.8%
DGS International
Finance Co. BV
10.00%, 6/01/07 (a) ....................... 5,000 3,312,500
----------
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES--2.6%
Bayan Telecommunications
13.50%, 7/15/06 (a) ....................... $ 5,000 $4,750,000
-------------
UNITED KINGDOM--1.9%
ZSC Specialty Chemicals Plc
11.00%, 7/01/09 (a) ....................... 3,500 3,530,625
-------------
Total Non-U.S. Corporate
Debt Obligations
(cost $32,507,847) ........................ 31,191,500
-------------
NON-CONVERTIBLE
PREFERRED STOCK--3.0%
Nextel Communications, Inc.
Series E
11.125% (g)
(cost $5,824,890) ......................... 5,669 5,569,792
-------------
COMMON STOCKS &
WARRANTS--0.5%
OpTel, Inc.
Common Stock (e)(h) ....................... 8,500 85
Uniroyal
Technology Corp. (e)(i) ................... 30,000 225,000
Viatel, Inc.
Common Stock (e)(h) ....................... 24,191 713,635
-------------
Total Common Stock & Warrants
(cost $56,890) ........................... 938,720
-------------
TIME DEPOSIT--6.3%
State Street Bank & Trust Co.
4.875%, 10/01/99
(cost $11,673,000) ....................... 11,673 11,673,000
-------------
TOTAL INVESTMENTS--135.6%
(cost $269,515,463) ...................... 250,291,527
Other assets less liabilities--(35.6%) (65,673,607)
-------------
NET ASSETS--100% .......................... $ 184,617,920
=============
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS (continued) ACM Managed Dollar Income Fund
================================================================================
(a) 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 September 30,
1999, these securities amounted to $39,723,875 or 21.5% of net assets.
(b) Security is in default and is non-income producing.
(c) Coupon consists of 5.00% cash payment and 3.00% paid-in-kind.
(d) Coupon changes periodically upon a predetermined schedule. Stated interest
rate in effect at September 30, 1999.
(e) Non-income producing security.
(f) Each warrant entitles the holder to purchase 10.777 shares at an exercise
price of $0.01 per share. Expires 8/01/08.
(g) Paid-in-kind preferred, quarterly stock payments.
(h) Common stock, par value is $0.01 per share.
(i) Each warrant entitles the holder to purchase one share at an exercise price
of $4.375 per share. Expires 6/01/03.
Glossary of Terms:
FLIRB Front Loaded Interest Reduction Bond.
FRN Floating Rate Note.
IAB Interest Arrears Bond.
NMB New Money Bonds.
PDI Past Due Interest.
See notes to financial statements.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999 ACM Managed Dollar Income Fund
================================================================================
ASSETS
Investments in securities, at value (cost $269,515,463) ...... $ 250,291,527
Cash ......................................................... 504
Interest receivable .......................................... 7,375,389
Receivable for investment securities sold .................... 3,357,024
Prepaid expenses and other assets ............................ 64,862
-------------
Total assets ................................................. 261,089,306
-------------
LIABILITIES
Loan payable ................................................ 57,500,000
Payable for investment securities purchased ................. 15,921,193
Dividend payable ............................................ 2,475,365
Interest payable ............................................ 173,580
Advisory fee payable ........................................ 169,894
Administrative fee payable .................................. 33,976
Accrued expenses and other liabilities ...................... 197,378
-------------
Total liabilities ........................................... 76,471,386
-------------
NET ASSETS ................................................... $ 184,617,920
=============
COMPOSITION OF NET ASSETS
Common stock, at par ........................................ $ 220,032
Additional paid-in capital .................................. 297,657,051
Distributions in excess of net investment income ............ (2,018,086)
Accumulated net realized loss on investment transactions .... (92,017,141)
Net unrealized depreciation of investments .................. (19,223,936)
-------------
$ 184,617,920
=============
NET ASSET VALUE PER SHARE(based on 22,003,240
shares outstanding) ........................................ $ 8.39
======
- --------------------------------------------------------------------------------
See notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year Ended September 30, 1999 ACM Managed Dollar Income Fund
=================================================================================================================================
<S> <C> <C>
INVESTMENT INCOME
Interest................................................................. $32,719,443
Dividends................................................................ 452,075
---------
$33,171,518
EXPENSES
Advisory fee............................................................. 1,815,161
Administrative fee....................................................... 363,027
Loan fees................................................................ 102,614
Audit and legal.......................................................... 101,863
Reports and notices to shareholders...................................... 92,517
Custodian................................................................ 69,446
Transfer agency.......................................................... 37,069
Directors' fees.......................................................... 35,940
Registration fees........................................................ 33,205
Amortization of organization expenses.................................... 474
Miscellaneous............................................................ 28,365
---------
Total expenses before interest expense................................... 2,679,681
Interest expense......................................................... 3,262,948
Total expenses........................................................... 5,942,629
------------
Net investment income.................................................... 27,228,889
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investment transactions............................. (56,696,741)
Net change in unrealized depreciation of investments and other assets.... 63,688,493
------------
Net gain on investments.................................................. 6,991,752
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS................................. $34,220,641
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
=================================================================================================================================
Year Ended Year Ended
September 30, 1999 September 30, 1998
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income................................................... $ 27,228,889 $ 30,275,798
Net realized loss on investment transactions............................ (56,696,741) (31,929,017)
Net change in unrealized appreciation/depreciation
of investments and other assets....................................... 63,688,493 (103,671,471)
------------ --------------
Net increase (decrease) in net assets from operations................... 34,220,641 (105,324,690)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income................................................... (27,228,889) (33,486,944)
Distributions in excess of net investment income........................ (2,893,503) -0-
Net realized gain on investments........................................ -0- (25,704,945)
------------ --------------
Net decrease in net assets resulting from dividends & distributions to
shareholders.......................................................... (30,122,392) (59,191,889)
COMMON STOCK TRANSACTIONS
Reinvestment of dividends resulting in the issuance of Common Stock..... 3,599,304 4,922,505
------------ --------------
Total increase (decrease)............................................... 7,697,553 (159,594,074)
NET ASSETS
Beginning of year....................................................... 176,920,367 336,514,441
------------ --------------
End of year (including undistributed net investment income
of $1,169,785 at September 30, 1998).................................. $184,617,920 $ 176,920,367
============ ==============
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS
For the Year Ended September 30, 1999 ACM Managed Dollar Income Fund
==============================================================================================
<S> <C> <C>
INCREASE (DECREASE) IN CASH FROM OPERATING ACTIVITIES
Interest and dividends received..................... $ 31,790,926
Interest expense paid............................... (3,199,423)
Operating expenses paid............................. (2,626,398)
-------------
Net increase in cash from operating activities....... $25,965,105
INVESTING ACTIVITIES
Purchases of long-term investments.................. (520,266,790)
Proceeds from disposition of long-term investments.. 517,888,800
Purchases of short-term investments, net............ (4,726,625)
-------------
Net decrease in cash from investing activities....... (7,104,615)
FINANCING ACTIVITIES(a)
Cash dividends and distributions paid............... (26,480,238)
Proceeds from borrowings............................ 7,000,000
--------------
Net decrease in cash from financing activities....... (19,480,238)
-----------
Net decrease in cash................................. (619,748)
Cash at beginning of year............................ 620,252
-----------
Cash at end of year.................................. $ 504
===========
- ----------------------------------------------------------------------------------------------
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM
OPERATIONS TO NET INCREASE IN CASH FROM OPERATING
ACTIVITIES
Net increase in net assets from operations........... $34,220,641
ADJUSTMENTS
Decrease in interest receivable..................... $ 1,878,884
Accretion of bond discount.......................... (3,259,476)
Decrease in accrued expenses and other assets....... 53,283
Increase in interest payable........................ 63,525
Net gain on investments............................. (6,991,752)
-------------
Total adjustments.................................... (8,255,536)
-----------
NET INCREASE IN CASH FROM OPERATING ACTIVITIES....... $25,965,105
===========
- ----------------------------------------------------------------------------------------------
</TABLE>
(a) Non-cash financing activities not included herein consist of reinvestment of
dividends and distributions. See notes to financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1999 ACM Managed Dollar Income Fund
================================================================================
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 generally accepted accounting principles which require 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 traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are generally
valued at the last reported sale price or, if there was no sale on such day, the
last bid price quoted on such day. If no bid prices are quoted, then the
security is valued at the mean of the bid and asked prices as obtained on that
day from one or more dealers regularly making a market in that security.
Securities traded on the over-the-counter market, and securities listed on a
foreign securities exchange whose operations are similar to the United States
over-the-counter market and securities listed on a national securities exchange
whose primary market is believed to be over-the-counter are valued at the mean
of the closing bid and asked price provided by two or more dealers regularly
making a market in such securities. U.S. government securities and other debt
securities which mature in 60 days or less are valued at amortized cost unless
this method does not represent fair value. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith by, or in accordance with procedures approved by, the Board of
Directors. Fixed income securities may be valued on the basis of prices provided
by a pricing service when such prices are believed to reflect the fair market
value of such securities. Listed put and call options purchased by the Fund 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.
2.Organization Expenses
Organization expenses of approximately $40,000 were deferred and were amortized
on a straight-line basis through October 1998.
3.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.
4.Investment Income and Investment
Transactions
Interest income is accrued daily. Dividend income is recorded on the ex-dividend
date. Investment transactions are accounted for on the date the investments are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts as adjustments to interest income.
5.Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gain distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
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.
10
<PAGE>
ACM Managed Dollar Income Fund
================================================================================
During the current fiscal year, permanent differences, primarily due to book to
tax differences on accrual of income, resulted in a net decrease in accumulated
net realized loss on investment transactions, a net decrease in distributions in
excess of net investment income and a corresponding increase in additional paid-
in capital. This reclassification had no effect on net assets.
- --------------------------------------------------------------------------------
NOTE B: Advisory, Administrative Fees, and
Other Transactions with Affiliates
Under the terms of the Investment Advisory Agreement, the Fund pays Alliance
Capital Management, L.P. (the "Adviser") an advisory fee equal to an annualized
rate of .75 of 1% of the average adjusted weekly net assets of the Fund during
the month.
Under the terms of a Shareholder Inquiry Agency Agreement with Alliance Fund
Services, Inc. ("AFS"), an affiliate of the Adviser, the Fund reimburses AFS for
costs relating to servicing phone inquiries for the Fund. The Fund reimbursed
AFS $1,935 during the year ended September 30, 1999.
Under the terms of an Administration Agreement, the Fund pays Princeton
Administrators, L.P (the "Administrator") a monthly fee equal to the annualized
rate of .15 of 1% of the Fund's average adjusted weekly net assets. 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,
options and U.S. government securities) aggregated $535,556,084 and
$521,783,261, respectively, for the year ended September 30, 1999. There were no
purchases or sales of U.S. government or government agency obligations for the
year ended September 30, 1999.
At September 30, 1999, the cost of investments, including options purchased, for
federal income tax purposes was $270,391,981. Accordingly, gross unrealized
appreciation of investments was $4,868,094 and gross unrealized depreciation of
investments was $24,968,548, resulting in net unrealized depreciation of
$20,100,454.
At September 30, 1999, the Fund had a capital loss carryforward of $57,455,739
which expires in the year 2007.
Capital losses incurred after October 31 ("post-October" losses) within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net capital losses of
$33,684,884 during the fiscal year. To the extent that the carryover losses are
used to offset future capital gains, it is probable that gain offset will not be
distributed to shareholders.
1.Options Transactions
For hedging and investment purposes, the Fund purchases and writes (sells) put
and call options on U.S. and foreign government securities 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 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 writing options which expire unexercised
are recorded by the
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS(continued) ACM Managed Dollar Income Fund
================================================================================
Fund on the expiration date as realized gains from options written. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or if the premium 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 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
purchased by the Fund. In writing an option, the Fund bears the market risk of
an unfavorable change in the price of the security underlying the written
option. Exercise of an option written by the Fund could result in the Fund
selling or buying a security at a price different from the current market value.
There were no transactions in options written for the year ended September 30,
1999.
2. Interest Rate Swap Agreements
The Fund may enter into interest rate swaps on sovereign debt obligations to
protect itself from interest rate fluctuations on the underlying debt
instruments and 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 another party 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 records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as interest
income (or as an offset to interest income). Fluctuations in the value of swap
contracts are recorded for financial statement purposes as net unrealized
appreciation or depreciation on interest rate swap contracts.
At September 30, 1999, the Fund had no outstanding interest rate swap contracts.
- --------------------------------------------------------------------------------
NOTE D: Capital Stock
There are 300,000,000 shares of $.01 par value capital stock authorized. Of the
22,003,240 shares of Common Stock outstanding at September 30, 1999, the Adviser
owned 7,100 shares.
During the years ended September 30, 1999 and September 30, 1998, the Fund
issued 380,881 and 378,603 shares, respectively, in connection with the dividend
reinvestment plan.
- --------------------------------------------------------------------------------
NOTE E: Bank Borrowing
The Fund entered into a Revolving Credit Agreement with Citibank, N.A. which was
renewed on March 23, 1998. The maximum credit available is $95,000,000 and the
amount outstanding as of September 30, 1999 was $57,500,000 with an average
interest rate of 6.07%. Interest payments on current borrowings are based on the
London Interbank Offered Rate plus a premium. The average daily amount of the
loan outstanding during the year ended September 30, 1999 was approximately
$54,984,932 with a related weighted average annualized interest rate of 5.93%.
The Fund is also obligated to pay Citibank, N.A. a facility fee computed at the
rate of .125 of 1% per annum on the average daily unused portion of the
revolving credit.
12
<PAGE>
ACM Managed Dollar Income Fund
================================================================================
NOTE F: 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 United States 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.
13
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS ACM Managed Dollar Income Fund
===========================================================================================================================
Selected Data For A Share Of Common Stock Outstanding Throughout Each Year
Year Ended September 30,
----------------------------------------------------------------------
1999 1998 1997 1996 1995
----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.............. $8.18 $15.84 $13.08 $10.42 $11.29
----- ------ ------ ------ ------
Income From Investment Operations
Net investment income........................... 1.25(a) 1.41(a) 1.45(a) 1.27 1.32
Net realized and unrealized gain (loss) on
investment and option transactions............ .34 (6.30) 2.62 2.65 (.85)
----- ------ ------ ------ ------
Net increase (decrease) in net asset
value from operations......................... 1.59 (4.89) 4.07 3.92 .47
----- ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income............ (1.25) (1.56) (1.31) (1.26) (1.32)
Distributions in excess of net
investment income............................. (.13) -0- -0- -0- -0-
Distributions from net realized
gains on investments.......................... -0- (1.21) -0- -0- -0-
Tax return of capital distribution.............. -0- -0- -0- -0- (.02)
----- ------ ------ ------ ------
Total dividends and distributions............... (1.38) (2.77) (1.31) (1.26) (1.34)
----- ------ ------ ------ ------
Net asset value, end of year.................... $ 8.39 $ 8.18 $15.84 $13.08 $10.42
====== ======= ====== ====== ======
Market value, end of year....................... $10.25 $9.3125 $15.00 $11.75 $9.875
====== ======= ====== ====== ======
Total Return(b)
Total investment return based on:
Market value.................................. 27.06% (23.44)% 40.87% 33.53% .92%
Net asset value............................... 18.69% (36.22)% 33.64% 40.86% 6.11%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)......... $184,618 $176,920 $336,514 $370,546 $295,013
Ratio of expenses to average net assets......... 2.46% 2.56% 2.36% 2.59% 2.83%
Ratio of expenses to average net assets.........
excluding interest expense (c)................ 1.11% 1.03% 1.01% 1.07% 1.17%
Ratio of net investment income to
average net assets............................ 11.27% 8.19% 8.00% 8.79% 10.56%
Portfolio turnover rate......................... 223% 208% 274% 443% 344%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Based on average shares outstanding.
(b) 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
the 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 the 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.
(c) Net interest expense of 1.35%, 1.53%, 1.35%, 1.52% and 1.66% respectively,
on loan agreements (See Note E).
14
<PAGE>
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS ACM Managed Dollar Income Fund
================================================================================
To the Shareholders and Board of Directors
ACM Managed Dollar Income Fund, Inc.
We have audited the accompanying statement of assets and liabilities of ACM
Managed Dollar Income Fund, Inc. (the "Fund"), including the portfolio of
investments, as of September 30, 1999, and the related statements of operations
and cash flows for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of September 30, 1999, by correspondence with the custodian
and others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of ACM
Managed Dollar Income Fund, Inc. at September 30, 1999, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated periods, in conformity with generally
accepted accounting principles.
/s/ Ernst & Young LLP
New York, New York
November 12, 1999
15
<PAGE>
ADDITIONAL INFORMATION ACM Managed Dollar Income Fund
================================================================================
Shareholders whose shares are registered in their own names may elect to be
participants in the Dividend Reinvestment and Cash Purchase Plan (the "Plan"),
pursuant to which dividends and capital gain distributions to shareholders will
be paid in or reinvested in additional shares of the Fund. State Street Bank and
Trust Company (the "Agent") will act as agent for participants under the Plan.
Shareholders whose shares are held in the name of a broker or nominee should
contact such broker or nominee to determine whether or how they may participate
in the Plan.
If the Board declares an income distribution or determines to make a capital
gain distribution payable either in shares or in cash, as holders of the Common
Stock may have elected, non-participants in the Plan will receive cash and
participants in the Plan will receive the equivalent in shares of Common Stock
of the Fund valued as follows:
(i) If the shares of Common Stock are trading at net asset value or at a
premiumabove net asset value at the time of valuation, the Fund will issue
new shares at the greater of net asset value or 95% of the then current
market price.
(ii) If the shares of Common Stock are trading at a discount from net asset
value at the time of valuation, the Plan Agent will receive the dividend or
distribution in cash and apply it to the purchase of the Fund's shares of
Common Stock in the open market on the New York Stock Exchange or elsewhere,
for the participants' accounts. Such purchases will be made on or shortly
after the payment date for such dividend or distribution and in no event
more than 30 days after such date except where temporary curtailment or
suspension of purchase is necessary to comply with Federal securities laws.
If, before the Plan agent has completed its purchases, the market price
exceeds the net asset value of a share of Common Stock, the average purchase
price per share paid by the Plan agent may exceed the net asset value of the
Fund's shares of Common Stock, resulting in the acquisition of fewer shares
than if the dividend or distribution had been paid in shares issued by the
Fund.
The Agent will maintain all shareholders' accounts in the Plan and furnish
written confirmation of all transactions in the account, including information
needed by shareholders for tax records. Shares in the account of each Plan
participant will be held by the Agent in non-certificated form in the name of
the participant, and each shareholder's proxy will include those shares
purchased or received pursuant to the Plan.
There will be no charges with respect to shares issued directly by the Fund to
satisfy the dividend reinvestment requirements. However, each participant will
pay a pro rata share of brokerage commissions incurred with respect to the
Agent's open market purchases of shares. In each case, the cost per share of
shares purchased for each shareholder's account will be the average cost,
including brokerage commissions, of any shares purchased in the open market plus
the cost of any shares issued by the Fund.
The automatic reinvestment of dividends and distributions will not relieve
participants of any income taxes that may be payable (or required to be
withheld) on dividends and distributions.
Experience under the Plan may indicate that changes are desirable. Accordingly,
the Fund reserves the right to amend or terminate the Plan as applied to any
voluntary cash payments made and any dividend or distribution paid subsequent to
written notice of the change sent to participants in the Plan at least 90 days
before the record date for such dividend or distribution. The Plan may also be
amended or terminated by the Agent on at least 90 days' written notice to
participants in the Plan. All correspondence concerning the Plan should be
directed to the Agent at State Street Bank and Trust Company, P.O. Box 366,
Boston, Massachusetts 02101.
Since the filing of the most recent amendment to the Fund's registration
statement with the Securities and Exchange Commission, there have been (i) no
material changes in the Fund's investment objectives or policies, (ii) no
changes to the Fund's charter or by-laws that would delay or prevent a change of
control of the Fund, (iii) no material changes in the principal risk factors
associated with investment in the Fund, and (iv) no change in the person
primarily responsible for the day-to-day management of the Fund's portfolio, who
is Wayne D. Lyski, the President of the Fund.
16
<PAGE>
ADDITIONAL INFORMATION(continued) ACM Managed Dollar Income Fund
================================================================================
Year 2000 (Unaudited)
Many computer systems and applications that process transactions use two-digit
date fields for the year of a transaction, rather than the full four digits. If
these systems are not modified or replaced, transactions occurring after 1999
could be processed as year "19XX," which could result in processing inaccuracies
and inoperability at or after the year 2000. The Funds and their major service
providers, including Alliance, utilize a number of computer systems and
applications that have been either developed internally or licensed from third-
party suppliers. In addition, the Funds and their major service providers,
including Alliance, are dependent on third-party suppliers for certain systems
applications and for electronic receipt of information critical to their
business. Should any of the computer systems employed by the Funds or their
major service providers, including Alliance, fail to process Year 2000 related
information properly, that could have a significant negative impact on the
Funds' operations and the services that are provided to the Funds' shareholders.
To the extent that the operations of issuers of securities held by the Funds are
impaired by the Year 2000 problem, the value of the Funds' shares may be
materially affected. In addition, for the Funds' investments in foreign markets,
it is possible that foreign companies and markets will not be as prepared for
Year 2000 as domestic companies and markets.
The Year 2000 issue is a high priority for the Funds and Alliance. During 1997,
Alliance began a formal Year 2000 initiative which established a structured and
coordinated process to deal with the Year 2000 issue. As part of its initiative,
Alliance established a Year 2000 project office to manage the Year 2000
initiative, focusing on both information technology and non-information
technology systems. The Year 2000 project office meets periodically with the
audit committee of the board of directors of Alliance Capital Management
Corporation, Alliance's general partner, and with Alliance's executive
management to review the status of the Year 2000 efforts.
Alliance has also retained the services of a number of consulting firms which
have expertise in advising and assisting with regard to Year 2000 issues.
Alliance reports that by June 30, 1998 it had completed its inventory and
assessment of its domestic and international computer systems and applications,
identified mission critical systems (those systems where loss of their function
would result in immediate stoppage or significant impairment to core business
units) and nonmission critical systems and determined which of these systems
were not Year 2000 compliant. All third-party suppliers of mission critical
computer systems and applications and nonmission critical systems have been
contacted to verify whether their systems and applications will be Year 2000
compliant and their responses are being evaluated. Substantially all of those
contacted have responded and approximately 90% have informed Alliance that their
systems and applications are or will be Year 2000 compliant. All mission and
nonmission critical systems supplied by third parties have been tested with the
exception of those third parties not able to comply with Alliance's testing
schedule. Alliance reports that it expects that all testing will be completed
before the end of 1999.
Alliance has remediated, replaced or retired all of its non-compliant mission
critical systems and applications that can affect the Funds. All nonmission
critical systems have been remediated. After each system has been remediated, it
is tested with 19XX dates to determine if it still performs its intended
business function correctly. Next, each system undergoes a simulation test using
dates occurring after December 31, 1999. Inclusive of the replacement and
retirement of some of its systems, Alliance has completed these testing phases
for approximately 98% of mission critical systems and 100% of nonmission
critical systems. Integrated systems tests were conducted to verify that the
systems would continue to work together. Full integration testing of all mission
critical and nonmission critical systems is complete. Testing of
17
<PAGE>
ADDITIONAL INFORMATION(continued) ACM Managed Dollar Income Fund
================================================================================
interfaces with third-party suppliers has begun and will continue throughout
1999. Alliance reports that it has completed an inventory of its facilities and
related technology applications and has begun to evaluate and test these
systems. Alliance reports that it anticipates that these systems will be fully
operable in the year 2000. Alliance has deferred certain other planned
information technology projects until after the Year 2000 initiative is
completed. Such delay is not expected to have a material adverse effect on
Alliance's financial condition or results of operations. Alliance, with the
assistance of a consulting firm, is developing Year 2000 specific contingency
plans with emphasis on mission critical functions. These plans seek to provide
alternative methods of processing in the event of a failure that is outside
Alliance's control.
The estimated current cost to alliance of the Year 2000 initiative ranges from
approximately $40 million to $45 million. These costs consist principally of
modification and testing and costs to develop formal Year 2000 specific
contingency plans. These costs, which will generally be expensed as incurred,
will be funded from Alliance's operations and the issuance of debt. Through June
30, 1999, Alliance had incurred approximately $36.0 million of costs related to
the Year 2000 initiative. At this time, management of Alliance believes that the
costs associated with resolving the Year 2000 issue will not have a material
adverse effect on Alliance's results of operations, liquidity or capital
resources.
There are many risks associated with Year 2000 issues, including the risks that
the computer systems and applications used by the Funds and its major service
providers will not operate as intended and that the systems and applications of
third-party suppliers to the Funds and their service providers will not be Year
2000 compliant. Likewise there can be no assurance the compliance schedules
outlined above will be met or that the actual cost incurred will not exceed
current cost estimates. Should the significant computer systems and applications
used by the Funds or their major service providers, or the systems of their
important third-party suppliers, be unable to process date-sensitive information
accurately after 1999, the Funds and their service providers may be unable to
conduct their normal business operations and to provide shareholders with
required services. In addition, the Funds and their service providers may incur
unanticipated expenses, regulatory actions and legal liabilities. The Funds and
Alliance cannot determine which risks, if any, are most reasonably likely to
occur or the effects of any particular failure to be Year 2000 compliant.
Certain statements provided by Alliance in this section entitled "Year 2000", as
such statements relate to Alliance, are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. To the fullest
extent permitted by law, the foregoing Year 2000 discussion is a "Year 2000
Readiness Disclosure" within the meaning of the Year 2000 information and
Readiness Disclosure Act, 15 U.S.C. Sec. 1 (1998).
18
<PAGE>
<TABLE>
<CAPTION>
ACM Managed Dollar Income Fund
- ------------------------------------------------------------------------------------------------------------
<S> <C>
BOARD OF DIRECTORS William H. Foulk, Jr.(1)
John D. Carifa, Chairman Dr. James M. Hester(1)
Ruth Block(1) Clifford L. Michel(1)
David H. Dievler(1) Donald J. Robinson(1)
John H. Dobkin(1) Robert C. White(1)
OFFICERS
Wayne D. Lyski, President Edmund P. Bergan, Jr., Secretary
Kathleen A. Corbet, Senior Vice President Mark D. Gersten, Treasurer & Chief Financial Officer
Paul J. DeNoon, Vice President Juan J. Rodriguez, Controller
Vicki L. Fuller, Vice President
Wayne C. Tappe, Vice President
ADMINISTRATOR INDEPENDENT AUDITORS
Princeton Administrators, L.P. Ernst & Young LLP
P.O. Box 9095 787 Seventh Avenue
Princeton, NJ 08543-9095 New York, NY 10019
CUSTODIAN, DIVIDEND PAYING AGENT, LEGAL COUNSEL
TRANSFER AGENT AND REGISTRAR Seward & Kissel
State Street Bank & TrustCompany One Battery Park Plaza
225 Franklin Street New York, NY 10004
Boston, MA 02110
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Member of the Audit Committee
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 Dollar Income Fund 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.
19
<PAGE>
ACM
---------------------
MANAGED
---------------------
DOLLAR
---------------------
INCOME FUND
---------------------
Annual Report
September 30, 1999
Alliance
ACM Managed Dollar Income Fund
Summary of General Information
The Fund
ACM Managed Dollar Income Fund is a closed-end management investment company
investing substantially all of its assets in U.S. and non-U.S. fixed income
securities denominated in U.S. dollars. The Fund is designed for investors who
seek high current income and capital appreciation over a period of years from
investing in a portfolio of high yield, high risk U.S. and non-U.S. fixed income
securities which the Fund's investment adviser expects to benefit from improving
economic and credit fundamentals.
Shareholder Information
The daily net asset value of the Fund's shares is available from the Fund's
Transfer Agent by calling 1-800-426-5523. The Fund also distributes its daily
net asset value to various financial publications or independent organizations
such as Lipper Analytical Services, 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 NYSEtrading
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 State Street Bank & Trust
Company, 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 State
Street Bank & Trust Company. For questions concerning Shareholder account
information, or if you would like a brochure describing the Dividend
Reinvestment Plan, please call State Street Bank and Trust Company at 1-800-219-
4218.
ACM Managed Dollar Income Fund
1345 Avenue of the Americas
New York, New York 10105
(R)These registered service marks used under license from the owner, Alliance
Capital Management L.P.
MDIAR 999
