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Alliancebernstein Income Fund Message Board

  • Corporate_Barbarian Corporate_Barbarian Jul 23, 2000 7:57 PM Flag

    Anyone reading this?

    Love to hear some reaction to the combinations announcement....

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    • you are referring to the consolidation of ACG,
      GSF, SI, and AOF, these are my thoughts.

      Some
      months ago Alliance Capital announced that there would
      be a share buyback in all of these except AOL to
      enhance shareholder value. I said at the time that I
      doubted that it would ever happen since it takes capital
      to do that which just isn't available or lying
      around idle. Also, to buy back shares in these funds
      tends to have the effect of reducing the amount of
      assets under management which is the base for the
      management fees that are charged by Alliance
      Capital.

      IMHO that announcement was an attempt to placate the
      very angry shareholders of these Closed End Funds
      because of the poor management of the funds and the
      tremendous erosion of their principal and lowering of
      dividends.

      IMHO this latest consolidation announcement is another
      well timed attempt to take the pressure off the
      managing entity and to cover their very poor management
      trail of these funds. The consolidation leaves what
      assets remain totally in tact along with their
      management fee base and the shareholders outside looking in
      and totally disarmed.

      IMHO there will be one
      small impact on these funds from the consolidation. It
      will cost money to do this; And if one owned equal
      shares of all four of these funds I project that when
      the dust all settles shareholders will receive
      slightly less in dividend income than they received prior
      to the consolidation due to the consolidation costs
      and increased management fees which will no doubt
      result.

      As a long time investor in these funds, those are my
      observations and predictions. Perhaps you would care to share
      yours.

 
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