06 February 2004 21:41
ACM Government Opportunity Fund Releases Monthly Portfolio Update
NEW YORK, Feb. 6 /PRNewswire-FirstCall/ -- ACM Government Opportunity Fund, Inc. (the "Fund") today
released its monthly portfolio update as of December 31, 2003. ACM Government Opportunity Fund, Inc. Top 10 Fixed-Income
Holdings Portfolio% 1) US Treasury Bonds 14.00% (11/15/11) 12.83% 2) Treasury Inflation Index 4.25% (01/15/10) 7.47% 3)
US Treasury Bonds 13.25% (05/15/14) 5.22% 4) US Treasury Bonds 13.75% (08/15/04) 4.78% 5) US Treasury Bonds 6.25%
(05/15/30) 4.64% 6) US Treasury Bonds 10.75% (08/15/05) 4.60% 7) Brazil (Republic) C Bonds 8.00% (04/15/14) 4.54% 8) US
Treasury Bonds 5.38% (02/15/31) 3.49% 9) US Treasury Notes 4.25% (11/15/13) 3.16% 10) Russia (Ministry of Finance) 3.00%
(05/14/06) 2.87% Security Type Portfolio% Treasury 64.39% Sovereign 25.20% Brady Bonds 4.74% FNMA 3.06% GNMA 0.51%
Corporate: Supranationals 1.87% Short-term: Time Deposit 0.23% Total 100.00% Holdings by Issuer Country Portfolio%
United States 68.20% Brazil 8.33% Russia 4.17% South Africa 4.12% Mexico 3.15% Venezuela 2.35% Ukraine 2.16% Bulgaria
1.78% Poland 1.49% Ecuador 1.38% Colombia 0.76% Panama 0.76% Uruguay 0.73% Argentina 0.62% Total 100.00% Percentage of
Leverage: 23.80%* Avg. Maturity: 15.14 Years Duration: 6.81 Years Total Net Assets: $112.8 Million Net Asset Value:
$8.78 Number of Holdings: 44 * "Percentage of Leverage" as of December 31, 2003 represents the use of certain
portfolio management techniques which may include credit default swaps, dollar rolls, negative cash, reverse repurchase
agreements and when-issued securities.
The foregoing portfolio characteristics are as of the date indicated and can be expected to change. The Fund is a
closed-end U.S.-registered management investment company advised by Alliance Capital Management L. P.
As has been previously reported in the press, the Staff of the U.S. Securities and Exchange Commission
("SEC") and the Office of the New York Attorney General ("NYAG") have been investigating practices
in the mutual fund industry identified as "market timing" and "late trading" of mutual fund shares.
Certain other regulatory authorities have also been conducting investigations into these practices within the industry
and have requested that Alliance Capital Management L.P. ("Alliance Capital"), the Fund's Adviser,
provide information to them. Alliance Capital has been cooperating and will continue to cooperate with all of these
authorities. The shares of the Fund are not redeemable by the Fund, but are traded on an exchange at prices established
by the market. Accordingly, the Fund and its shareholders are not subject to the market timing and late trading
practices that are the subject of the investigations mentioned above or the lawsuits described below. Please see below
for a description of the agreements reached by Alliance Capital and the SEC and NYAG in connection with the
investigations mentioned above.
In addition, approximately forty lawsuits have been filed against Alliance Capital and certain other defendants in
which plaintiffs make claims purportedly based on or related to the same practices that are the subject of the SEC and
NYAG investigations referred to above. Some of these lawsuits name the Fund as a party. Management of the Fund's
Adviser believes that these private lawsuits are not likely to have a material adverse effect on the results of
operations or financial condition of the Fund.
On December 18, 2003, Alliance Capital, confirmed that it had reached terms with the SEC and the NYAG for the
resolution of regulatory claims relating to the practice of "market timing" mutual fund shares in some of the
AllianceBernstein Mutual Funds. The agreement with the SEC is reflected in an Order of the Commission ("SEC
Order"). The agreement with the NYAG is subject to final, definitive documentation. Among the key provisions of
these agreements are the following:
(i) Alliance Capital agreed to establish a $250 million fund (the "Reimbursement Fund") to compensate
mutual fund shareholders for the adverse effects of market timing attributable to market timing relationships described
in the SEC Order. According to the SEC Order, the Reimbursement Fund is to be paid, in order of priority, to fund
investors based on (i) their aliquot share of losses suffered by the fund due to market timing, and (ii) a proportionate
share of advisory fees paid by such fund during the period of such market timing;
(ii) Alliance Capital agreed to reduce the advisory fees it receives from some of the AllianceBernstein long-term,
open-end retail funds, commencing January 1, 2004, for a period of at least five years; and
(iii) Alliance Capital agreed to implement changes to its governance and compliance procedures. Additionally, the SEC
Order contemplates that Alliance Capital's registered investment company clients, including the Fund, will
introduce governance and compliance changes.
The shares of the Fund are not redeemable by the Fund, but are traded on an exchange at prices established by the
market. Accordingly, the Fund and its shareholders are not subject to the market timing practices described in the SEC
Order and are not expected to participate in the Reimbursement Fund. Since the Fund is a closed-end fund, it will not
have its advisory fee reduced pursuant to the terms of the agreements mentioned above. ACM Government Opportunity Fund,
Inc.
CONTACT: Shareholder Contact, ACM Government Opportunity Fund, Inc., 1-800-221-5672
Web site: http://www.alliancecapital.com/
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