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Alliancebernstein Income Fund Message Board

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  • billowes billowes Dec 6, 1999 12:22 PM Flag

    Lost 5% Today, Pays 12.7% per Year

    As a long suffering holder of this dog, I think
    there must be something very wrong with the people who
    are alleggedly running this fund. It is time they
    spoke up told us what is going on. How can a bond fund
    fall like this in a rising market. How caan they be so
    consistently wrong. I have done much better than them with
    bonds and I'm an amateur.

    So FUND MANAGERS get
    on this board and tell us what's up

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • feel alone let me share my feelings as well. As
      you know these funds are managed by Alliance Capital
      and their Wayne Lyski. If you look at gsf which is
      almost identical to acg you will see that it is in even
      worse shape. All or at least most of the closed end
      funds managed by Alliance have performed extremely
      poorly, even when interest rates were falling. You can
      also look at si, awf, awg, etc.

      Like you I am
      suspicious as well. Let me share what I think is possible
      but of course I have no way of proving. Alliance
      manages both open end and closed end funds. Alliance
      sales people hate the closed end funds because they
      make commissions only by selling open funds since
      closed end funds trade like stocks. So the only reason
      Alliance manages closed funds is for the management fees
      that Alliance receives. But here is why I am
      suspicious. Lyski turns these closed end portfolios over 200%
      a year. Who is to say that the profitable bond
      trades are not shuffled from the closed end funds to the
      open end fund portfolios?

      I think an SEC audit
      of these funds would be in order. I agree with you.
      No professional bond fund manager could do this bad
      and still hold his job if there wasn't a good reason,
      and that reason could be that Alliance open end funds
      are benefiting at the expense of the closed end fund
      shareholders.

      Not in defense of them, but many and I mean many
      closed end funds are in terrible shape and sell at steep
      discounts to NAV. Another theory is that so much money is
      being poored into the high flying e-commerce and tech
      stocks that these fixed rate funds are just out of favor
      which will quickly change when the stock bubble bursts.
      People are getting used to earning 20, 30, 40, 50
      percent returns on their investments. These bond funds
      and even the equity funds are dull and as it turns
      out seem to be riskier than the e-commerce stocks
      that are actually losing money and sell at high
      multiples to sales, not earnings.

      Maybe sanity will
      return to the markets soon. Only time will tell. If it
      doesn't happen by second quarter of year 2000 I will have
      missed my guess.

      • 3 Replies to axzl
      • down before before. Dec 95 to Jan 96 the div.
        went from .08 to .04 then back to .08 Feb. 96.
        It
        staid that way for quite while. You can call up
        the
        complete history under the charts. Look at charts max,
        very interesting.

        wmk

      • newly invested in ACG and already neverous. Yield
        looks terrific, so can't understand last two days which
        showed panic selling as price turned down 3/4. Gov't
        bonds seems like a stable investment opportunity with
        the yield safe, at least consistant with the long
        bond which has been around 6.25 for a the past week.
        Where does ACG look to bottom? Guess there are no safe
        havens other than techs.

      • My broker called me and wants me to reinvest my
        monthly dividend in the ACM Income fund because he says
        it is a good buy at this price. When I asked him
        about any possible dividend reduction, he said
        "probably not in the near future but didn't know beyond".
        No details were provided beyond his
        statement.

        Anybody have any info or thoughts on this?

    • This most recent drop in price has to signal a reduction in the dividend. No way it could drop this far if the dividend was secure.

 
ACG
7.41-0.06(-0.80%)3:09 PMEST

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