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Alliancebernstein Income Fund Message Board

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  • axzl axzl Dec 6, 1999 1:17 PM Flag

    Lost 5% Today, Pays 12.7% per Year

    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.

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    • 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?

 
ACG
7.50-0.01(-0.07%)Jul 9 4:02 PMEDT

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