Report 
 
      
Registrant:   American Income Fund, Inc. — List all N-SARs

Annual Report for the 2nd-half period ended at fiscal year end:  8/31/11

Were there any Answer File errors in the Filing?  None FoundNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant?  Yes

Is this an Amendment to a previous Report?  Yes
Is this a change to a previous Report?      No
 
Registrant 
 
 1.
SEC CIK:      838131
SEC File #:   811-05642

Telephone #:  612-303-3185
 
 2.
Address:      800 Nicollet Mall
              Minneapolis, MN  55402
 
 3.
Is this the first Form N-SAR filed by the Registrant?  No
 
 4.
Is this the final Form N-SAR filed by the Registrant?  No
 
 
Funds/Series 
↑Top of Form N-SAR 
     
                                                                               
 7.
Is the Registrant a Funds/Series (multiple portfolios) company?  No
 
Investment Adviser 
 
 8.1
Name:         U.S. Bancorp Asset Management, Inc.
Role:         Adviser
SEC File #:   801-60125
Location:     Minneapolis, MN
 
 8.2
Name:         Nuveen Asset Management, LLC
Role:         Sub-Adviser
SEC File #:   801-71957
Location:     Chicago, IL
 
 8.3
Name:         Nuveen Fund Advisors, Inc.
Role:         Sub-Adviser
SEC File #:   801-14147
Location:     Chicago, IL
 
Administrator 
 
10.1
Name:         U.S Bancorp Asset Management, Inc.
SEC File #:   801-60125
Location:     Minneapolis, MN
 
10.2
Name:         Nuveen Fund Advisors, Inc.
SEC File #:   801-14147
Location:     Chicago, IL
 
Shareholder Servicing/Transfer Agent 
 
12.1
Name:         Computershare Shareholder Services Inc.
SEC File #:   084-05925
Location:     Canton, MA
 
Independent Public Accountant 
 
13.1
Name:         Ernst & Young LLP
Location:     Minneapolis, MN
 
Affiliated Broker/Dealer 
 
14.1
Name:         U.S. Bancorp Investments, Inc.
SEC File #:   008-35359
 
14.2
Name:         Quasar Distributors, LLC
SEC File #:   008-52323
 
Custodian 
 
15.1
Name:         U.S. Bank N.A.
Role:         Custodian
Location:     St. Paul, MN

Type of custody:  Rule 17f-2 — Self
 
18.
Does the Registrant’s/Series’ Custodian(s) maintain some or all of the
Registrant’s/Series’ securities in a central depository or book-entry
system pursuant to Rule 17f-4?  Yes
 
Family of Investment Companies 
 
19.
Is the Registrant/Series part of a “family” of investment companies?  Yes

Total number of registered management investment companies, Series
and portfolios (excluding any Unit Investment Trusts) in the family:  54

The Identification Code of the family for Form N-SAR Filings:  FIRSTAMERI
 
Brokerage Commissions Paid on Portfolio Transactions 
 
20.
The brokers who received the largest amount of gross brokerage
commissions during the period:
 
20.1
Broker:       Citigroup Global Markets
IRS #:        11-2418191
Commissions paid ($000s):  3
 
20.2
Broker:       Cantor Fitzgerald & Co.
IRS #:        13-3680184
Commissions paid ($000s):  1
 
21.
Total brokerage commissions paid by the Registrant during the period:
  Aggregate paid ($000s):  4
 
Portfolio Transactions with Entities Acting as Principals 
 
22.
The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
 
22.1
Entity:       Deutsche Bank
IRS #:        13-2730828
Registrant’s purchases ($000s):  126,929
Registrant’s sales ($000s):  127,605
 
22.2
Entity:       Citigroup Global Markets
IRS #:        11-2418191
Registrant’s purchases ($000s):  73,175
Registrant’s sales ($000s):  81,644
 
22.3
Entity:       Credit Suisse
Registrant’s purchases ($000s):  78,568
Registrant’s sales ($000s):  64,064
 
22.4
Entity:       First American Prime Obligations Fund
IRS #:        41-1681537
Registrant’s purchases ($000s):  48,546
Registrant’s sales ($000s):  48,719
 
22.5
Entity:       Goldman, Sachs & Co.
IRS #:        13-5108880
Registrant’s purchases ($000s):  46,553
Registrant’s sales ($000s):  44,347
 
22.6
Entity:       Morgan Stanley Co. Inc.
IRS #:        13-2655998
Registrant’s purchases ($000s):  8,268
Registrant’s sales ($000s):  17,001
 
22.7
Entity:       Wells Fargo Brokerage Services, LLC
IRS #:        41-1508325
Registrant’s purchases ($000s):  3,313
Registrant’s sales ($000s):  1,955
 
22.8
Entity:       JP Morgan Securities
IRS #:        13-3379014
Registrant’s purchases ($000s):  3,673
Registrant’s sales ($000s):  1,482
 
22.9
Entity:       Cantor Fitzgerald & Co.
IRS #:        13-3680184
Registrant’s purchases ($000s):  1,847
Registrant’s sales ($000s):  2,741
 
22.10
Entity:       RBS Securities, Inc.
Registrant’s purchases ($000s):  3,742
Registrant’s sales ($000s):  398
 
23.
Total purchase/sale transactions by the Registrant during the period:
   Aggregate purchases ($000s):  416,258
   Aggregate sales ($000s):  417,450
 
Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers 
 
24.
At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities?  No
 
Considerations which Affected the Participation of Brokers or Dealers 
 
26.
Considerations which affected the participation of brokers or dealers or
other entities in commissions or other compensation paid on portfolio
transactions of the Registrant:

Consideration?
Sales of the Registrant’s/Series’ shares ...............................  No
Receipt of investment research and statistical info ....................  Yes
Receipt of quotations for portfolio valuations .........................  No
Ability to execute portfolio transactions to obtain the best price
  and execution ........................................................  Yes
Receipt of telephone line and wire services ............................  No
Broker or Dealer which is an affiliated person .........................  Yes
An arrangement to return or credit part or all of commissions or
  profits thereon...
    To an Investment Adviser or Principal Underwriter, or to an
      affiliated person of either ......................................  No
    To the Registrant ..................................................  No
Other ..................................................................  No
 
Investment Company Type 
 
27.
Is the Registrant an “open-end” investment company?  No, Closed-End
 
Advisory Fee 
 
45.
Did the Registrant/Series have an advisory contract during the period?  Yes
 
46.
Did the Registrant/Series pay more than one Investment Adviser directly
for investment advice during the period?  No
 
47.
Was the Registrant’s/Series’ advisory fee based solely on a percentage
of its assets?  Yes
 
48.
Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
    Single-fee rate:  0.65%
    Step-fee rates:
      For 1st $000s:  0
        Annual rate:  0.0%
 
49.
Was the Registrant’s/Series’ advisory fee during the period based solely
on a percentage of its income?  No
 
50.
Was the Registrant’s/Series’ advisory fee during the period based on
some combined percentage of its income and assets?  No
 
51.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on its investment performance?  No
 
52.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on the assets, income or performance of other
Registrants?  No
 
53.
Were the expenses of the Registrant/Series limited or reduced at any
time during the period by some agreement or understanding other than by
Blue Sky Laws?  No
 
54.
Indicated below are whether services were supplied or paid for wholly or
in substantial part by Investment Adviser(s) or Administrator(s) in
connection with the advisory or administrative contract(s) but for which
the Adviser(s) or Administrator(s) are not reimbursed by the Registrant:

Provided to the Registrant?
Occupancy and office rental ............................................  Yes
Clerical and bookkeeping services ......................................  Yes
Accounting services ....................................................  Yes
Services of independent auditors .......................................  No
Services of outside counsel ............................................  No
Registration and filing fees ...........................................  No
Stationery, supplies and printing ......................................  Yes
Salaries & compensation of Registrant’s interested Directors ...........  No
Salaries & compensation of Registrant’s disinterested Directors ........  No
Salaries & compensation of Registrant’s Officers who aren’t Directors ..  Yes
Reports to current shareholders ........................................  No
Determination of offering and redemption prices ........................  No
Trading department .....................................................  Yes
Prospectus preparation and printing for current shareholders ...........  No
Other ..................................................................  No
 
Miscellaneous Info 
 
55.
Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
    Overdrafts?  No
    Bank loans?  No
 
56.
During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies?  Yes
 
57.
Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend?  No
 
Classification and Asset Allocation 
 
58.
Is the Registrant/Series a Separate Account of an insurance company?  No
 
59.
Is the Registrant/Series a management investment company?  Yes
 
60.
Was the Registrant/Series a diversified investment company at any time
during the period?  Yes

Was the Registrant/Series a diversified investment company at the end of
the period?  Yes
 
61.
The lowest minimum initial investment required by the Registrant/Series
from an investor that is not an employee or otherwise affiliated with
the Registrant/Series, its Investment Adviser, Principal Underwriter or
other affiliated entity:  $1
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  Yes

The percentage of net assets in each type at period end:

Debt — Short-Term Maturities
U.S. Treasury ...............................      0.3%
U.S. Government Agency ......................      0.0
Repurchase agreements .......................      0.0
State and Municipal – tax-free ..............      0.0
Bank certificates of deposit – domestic .....      0.0
Bank certificates of deposit – foreign ......      0.0
Bankers acceptances .........................      0.0
Commercial paper – taxable ..................      0.0
Time deposits ...............................      0.0
Options .....................................      0.0
All other ...................................      0.0

Debt — Intermediate & Long-Term Maturities
U.S. Treasury ...............................      0.0%
U.S. Government Agency ......................    42.3
State and Municipal – tax-free ..............      0.0
Corporate ...................................    32.0
All other ...................................    63.0

Non-Debt
Investments other than debt securities ......      2.4%
 
63.
The dollar-weighted average portfolio maturity at period end in days or,
if longer than one year, in years (to one decimal place):
    Days:     0
    Years:    23.0
 
64.
Is the timely payment of principal and interest on any of the
instruments listed in Item 62 insured or guaranteed by an entity other
than the issuer?  No

Is the issuer of any instrument covered in Item 62 delinquent or in
default as to payment of principal or interest at period end?  Yes
 
65.
In computations of Net Asset Value (NAV) per share, is any part of the
value attributed to instruments identified in Item 64.B (second
question) derived from insurance or guarantees?  No
 
66.
Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities?  No
 
67.
Is the Registrant/Series a “balanced” Fund?  No
 
68.
Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
    Engaged primarily in production or distribution of precious metals?  No
    Located primarily in countries other than the United States?  No
 
69.
Is the Registrant/Series an index Fund?  No
 
Investment Practices 
 
70.
Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity                                            Permitted Engaged In
Writing or investing in repurchase agreements?           Yes to both
Writing or investing in options on equities?             No        –
Writing or investing in options on debt securities?      No        –
Writing or investing in options on stock indices?        No        –
Writing or investing in interest rate futures?           Yes to both
Writing or investing in stock index futures?             No        –
Writing or investing in options on futures?              Yes      No
Writing or investing in options on stock index futures?  No        –
Writing or investing in other commodity futures?         No        –
Investments in restricted securities?                    Yes to both
Investments in shares of other investment companies?     Yes to both
Investments in securities of foreign issuers?            Yes to both
Currency exchange transactions?                          No        –
Loaning portfolio securities?                            No        –
Borrowing of money?                                      Yes      No
Purchases/sales by certain exempted affiliated persons?  No        –
Margin purchases?                                        No        –
Short selling?                                           No        –
 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  296,471
Sales ($000s):      301,811

Monthly average Value of portfolio ($000s):  112,049

Percent turnover (lesser of Purchases or Sales, divided by Value):  265%
 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  12

Income  ($000s)
Net interest income ..............................................
 6,832
Net dividend income ..............................................
 76
Account maintenance fees .........................................
 –
Net other income .................................................
 –

Expenses  ($000s)
Advisory fees ....................................................
 526
Administrator fees ...............................................
 81
Salaries and other compensation ..................................
 –
Shareholder Servicing Agent fees .................................
 18
Custodian fees ...................................................
 4
Postage ..........................................................
 –
Printing expenses ................................................
 31
Directors’ fees ..................................................
 81
Registration fees ................................................
 24
Taxes ............................................................
 –
Interest .........................................................
 51
Bookkeeping fees paid to anyone performing this service ..........
 –
Auditing fees ....................................................
 46
Legal fees .......................................................
 33
Marketing/distribution payments, incl. Rule 12b-1 plan payments ..
 –
Amortization of organization expenses ............................
 –
Shareholder meeting expenses .....................................
 –
Other expenses ...................................................
 55
Total expenses ...................................................
 950

Expense reimbursements ($000s):   2

Net investment income ($000s):    5,960

Realized capital gains ($000s):   2,340
Realized capital losses ($000s):  1,566

Net unrealized appreciation during the period ($000s):  21
Net unrealized depreciation during the period ($000s):  0

Total income dividends for which the record date passed during the
period ($000s):  6,292

Total capital gains distributions for which the record date passed
during the period ($000s):  0
 
73.
Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income:    $0.6650

Distribution of capital gains:  $0.0000
Other distributions:            $0.0000
 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Cash .............................................................
 –
Repurchase agreements ............................................
 –
Short-term debt securities, other than repurchase agreements .....
 235
Long-term debt securities, including convertible debt ............
 109,430
Preferred, conv. preferred and adjustable-rate preferred stock ...
 1,101
Common stock .....................................................
 –
Options on equities ..............................................
 –
Options on all futures ...........................................
 –
Other investments ................................................
 557
Receivables from portfolio instruments sold ......................
 251
Receivables from affiliated persons ..............................
 –
Other receivables ................................................
 935
All other assets .................................................
 35
Total assets .....................................................
 112,544

Liabilities  ($000s)
Payables for portfolio instruments purchased .....................
 18,497
Amounts owed to affiliated persons ...............................
 51
Senior long-term debt ............................................
 –
Other liabilities:
  Reverse repurchase agreements ..................................
 14,260
  Short sales ....................................................
 –
  Written options ................................................
 –
  All other liabilities ..........................................
 65

Equity  ($000s)
Senior equity ....................................................
 –
Net assets of common shareholders ................................
 79,671

Number of shares outstanding (000s):   9,464

Net Asset Value (NAV) per share (to nearest cent):  $8.42

Total number of shareholder accounts:  897

Total value of assets in segregated accounts ($000s):  14,922
 
75.
Monthly average net assets during the period ($000s):  80,975
 
76.
Market price per share at period end:  $7.72
 
Additional Disclosures 
 
77.
Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)?  Yes

EX-99.77B:  Accountant’s Report re: Internal Controls?  Yes

EX-99.77O:  Transaction Effected — Rule 10f-3 – ICA’40?  Yes
 
Subsidiaries 
 
78.
Does the Registrant have any wholly-owned investment company
subsidiaries whose operating and financial data are consolidated with
that of the Registrant in this Report?  No
 
Fidelity Bond in Effect at Fiscal Year End 
 
80.
Insurer:      Chubb Group of Insurance Companies

Aggregate face amount of coverage for the Registrant/Series on all bonds
on which it is named as an insured ($000s):  10,850
 
81.
Is the bond part of a joint fidelity bond(s) shared with other
investment companies or other entities?  Yes

How many other investment companies or other entities are covered by the
bond (counting each Fund/Series as a separate investment company):  13
 
82.
Does the mandatory coverage of the fidelity bond have a deductible?  No
 
83.
Were any claims with respect to this Registrant/Series filed under the
bond during the period?  No
 
84.
Were any losses incurred with respect to this Registrant/Series that
could have been filed as a claim under the fidelity bond but were not?  No
 
85.
Are the Registrant’s/Series’ Officers and Directors covered as Officers
and Directors of the Registrant/Series under any errors and omissions
insurance policy owned by the Registrant/Series or anyone else?  Yes

Were any claims filed under such policy during the period with respect
to the Registrant/Series?  No
 
Sales, Repurchases and Redemptions 
 
86.
Sales, repurchases and redemptions of the Registrant’s securities:
 
Common Stock
Sales:
    Number of shares (000s):   10
    Net consideration received ($000s):  85
Repurchases:
    Number of shares (000s):   0
    Net consideration paid ($000s):      0

Preferred Stock
Sales:
    Number of shares (000s):   0
    Net consideration received ($000s):  0
Repurchases and redemptions:
    Number of shares (000s):   0
    Net consideration paid ($000s):      0

Debt Securities
Sales:
    Principal amount ($000s):  0
    Net consideration received ($000s):  0
Repurchases and redemptions:
    Principal amount ($000s):  0
    Net consideration paid ($000s):      0
 
Securities Outstanding 
 
87.
Securities of the Registrant that are registered on a national
securities exchange or listed on Nasdaq:
 
Title of class:  American Income Fund, Inc.
    CUSIP/CINS:  02672T·10·9
        Symbol:  MRF
 
88.
Did the Registrant have any of the following outstanding which exceeded
1% of aggregate net assets at any time during the period:

Notes or bonds?     No
Uncovered options?  No
Margin loans?       No
Preferred stock?    No
 
 Signature 
 
↑Top of Form N-SAR 
     
                                                                               
/s/      Jason Moore      
Name:   Jason Moore
Title:  Accountant