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.
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.
It seems like the selling the last two days may be due to an impending default by one of the emerging countries in the portfolio. It seems strange to me that this fund would be falling this far for any other reason. The closing NAV is 7.67 today but this may be suspect.
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.
ACG here at 6.50 with a dividend of .75 to .80 cents it is OK because that is what the fund is earning. The NAV has dropped so much and the fund portfolio is turned over so often that the fund's stability has to be in question. But this is only my opinion.