NOTES TO FINANCIAL STATEMENTS
ACM Government Securities Fund and ACM Government Spectrum Fund, may apply.
Capital and foreign currency losses incurred after October 31 ("post October" losses) within the taxable year are
deemed to arise on the first business day of the Fund's next taxable year. The Fund incurred and will elect to
defer net foreign currency losses of $1,277,197 and net capital losses of $1,133,585 during fiscal year 2000.
These carryover losses may be used to offset future capital gains. To the extent they are so used, future capital
gains will not be distributed to shareholders until they exceed available capital loss carryovers.
1. Forward Exchange Currency Contracts
The Fund enters into forward exchange currency contracts to hedge its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments
denominated in foreign currencies and for investment purposes. A forward exchange currency contract is a
commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss
arising from the difference between the original contract and the closing of such contract is included in net realized
gain or loss on foreign currency transactions.
Fluctuations in the value of open forward exchange currency contracts are reflected for financial reporting
purposes as a component of net unrealized appreciation (depreciation) of investments and foreign currency
The Fund's custodian places and maintains liquid assets in a separate account of the Fund having a value at least
equal to the aggregate amount of the Fund's commitments under forward exchange currency contracts entered
into with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At December 31, 2000,
the Fund had outstanding forw