mrf_nq.htm

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2008

DESCRIPTION					PAR	VALUE (a)

(Percentages of each investment category relate to net assets)

High Yield Corporate Bonds — 23.9%
	Banking — 0.2%
		Washington Mutual Preferred Funding LLC, 9.75%, 10/29/49 (b)		$	200,000	$	178,000

	Basic Industry — 3.5%
		Evraz Group, 8.25%, 11/10/15 (b)			250,000		246,550
		FMG Finance Property, 10.00%, 9/1/13 (b)			250,000		276,250
		Georgia Pacific, 7.13%, 1/15/17 (b)			250,000		246,875
		Griffin Coal Mining, 9.50%, 12/1/16 (b)			200,000		158,000
		Hexion, 9.75%, 11/15/14			250,000		275,000
		Ineos Group Holdings, 8.50%, 2/15/16 (b)			150,000		116,625
		Intertape Polymer US, 8.50%, 8/1/14			150,000		133,500
		Massey Energy, 6.88%, 12/15/13			250,000		246,250
		Momentive Performance Materials, 9.75%, 12/1/14			250,000		231,875
		Newark Group, 9.75%, 3/15/14			200,000		142,000
		Noble Group, 6.63%, 3/17/15 (b)			250,000		222,528
		Nova Chemicals, 6.50%, 1/15/12			250,000		232,500
		Stone Container, 8.38%, 7/1/12			200,000		186,000
							2,713,953
	Capital Goods — 0.9%
		Allied Waste North America, 6.13%, 2/15/14			300,000		292,125
		Case New Holland, 7.13%, 3/1/14			200,000		202,000
		Hawker Beechcraft Acquisition Company, 9.75%, 4/1/17			150,000		153,750
		Ply Gem Industries, 9.00%, 2/15/12			100,000		68,750
							716,625
	Communications — 2.5%
		CCH I, 11.00%, 10/1/15			150,000		127,500
		CCO Holding LLC, 8.75%, 11/15/13			500,000		475,000
		CSC Holdings, Series B, 7.63%, 4/1/11			250,000		250,000
		Dex Media, 8.00%, 11/15/13			200,000		159,000
		Idearc, 8.00%, 11/15/16			250,000		178,750
		Level 3 Financing, 12.25%, 3/15/13			250,000		260,000
		MetroPCS Wireless, 9.25%, 11/1/14			250,000		240,312
		Vimpelcom, 8.25%, 5/23/16 (b)			250,000		249,375
							1,939,937
	Consumer Cyclical — 4.9%
		Buffalo Thunder Development Authority, 9.38%, 12/15/14 (b)			250,000		173,750
		Denny's Holdings, 10.00%, 10/1/12			100,000		98,000
		Dollar General, 10.63%, 7/15/15			200,000		196,000
		Ford Motor Credit, 7.00%, 10/1/13			500,000		420,476
		Galaxy Entertainment, 9.88%, 12/15/12 (b)			250,000		252,500
		General Motors, 8.25%, 7/15/23			250,000		171,250
		General Motors Acceptance Corporation,
			5.63%, 5/15/09		300,000		289,593
			6.88%, 9/15/11		200,000		168,618
		Goodyear Tire & Rubber, 7.86%, 8/15/11			200,000		205,000
		Hanesbrands, 8.78%, 12/15/14 (c)			250,000		232,500
		Lear Corp., 8.50%, 12/1/13			200,000		186,000
		Mohegan Tribal Gaming, 6.38%, 7/15/09			250,000		250,000
		Neiman-Marcus Group, 10.38%, 10/15/15			190,000		196,412
		PEP Boys-Manny Moe and Jack, 7.50%, 12/15/14			195,000		168,675
		Rite Aid, 7.50%, 3/1/17			200,000		182,250
		Sally Holdings LLC, 10.50%, 11/15/16			200,000		195,000
		Shimao Property Holdings Limited, 8.00%, 12/1/16 (b)			250,000		197,500
		Susser Holdings LLC, 10.63%, 12/15/13 (b)			200,000		206,000
							3,789,524
	Consumer Non Cyclical — 3.1%
		Catalent Pharma Solutions, 9.50%, 4/15/15			250,000		226,875
		Community Health Systems, 8.88%, 7/15/15			215,000		221,719
		Constellation Brands, 7.25%, 5/15/17			200,000		197,500
		Delhaize America, 9.00%, 4/15/31			231,000		277,254

2008 Quarterly Report 1 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (continued)

DESCRIPTION					PAR		VALUE (a)

		HCA, 6.75%, 7/15/13		$	350,000		$	316,750
		LVB Acquisition Merger, 11.63%, 10/15/17 (b)			150,000			159,000
		Smithfield Foods, 7.75%, 5/15/13			250,000			246,875
		Stater Brothers Holdings, 7.75%, 4/15/15			250,000			251,250
		Supervalu, 7.50%, 5/15/12			250,000			257,668
		Vitro SAB, 9.13%, 2/1/17			250,000			211,250
								2,366,141
	Electric — 2.7%
		Aquila, 14.88%, 7/1/12			285,000			339,150
		Ava Capital Trust III, 6.50%, 4/1/34 (c)			300,000			278,226
		Dynegy Holdings, 7.75%, 6/1/19			500,000			473,750
		ISA Capital do Brasil, 8.80%, 1/30/17 (b)			250,000			267,500
		Reliant Energy, 7.63%, 6/15/14			250,000			250,625
		Texas Competitive Electric Holdings, 10.25%, 11/1/15 (b)			450,000			459,562
								2,068,813
	Energy — 0.9%
		Chesapeake Energy, 7.00%, 8/15/14			250,000			249,063
		SandRidge Energy, 8.00%, 6/1/18 (b)			200,000			202,500
		Tesoro, 6.63%, 11/1/15			250,000			229,688
								681,251
	Financial — 0.8%
		Axcan Intermediate Holdings, 9.25%, 3/1/15 (b)			200,000			201,000
		Nuveen Investments, 5.50%, 9/15/15			200,000			142,000
		Teco Finance, 6.57%, 11/1/17			250,000			246,116
								589,116
	Industrials Other — 1.0%
		Aramark, 8.50%, 2/1/15			200,000			204,750
		Briggs & Stratton, 8.88%, 3/15/11			282,000			290,460
		Chart Industries, 9.13%, 10/15/15			300,000			307,875
								803,085
	Natural Gas — 1.3%
		Copano Energy Finance, 7.75%, 6/1/18 (b)			250,000			248,437
		El Paso Energy, Series MTN, 7.80%, 8/1/31			100,000			100,658
		SemGroup, 8.75%, 11/15/15 (b)			250,000			243,750
		Southern Union, 7.20%, 11/1/66 (c)			200,000			165,701
		Targa Resources, 8.50%, 11/1/13			250,000			240,625
								999,171
	Real Estate — 0.2%
		Greentown China Holdings, 9.00%, 11/8/13 (b)			200,000			151,000
	Sovereign — 0.4%
		Republic of Uruguay, 8.00%, 11/18/22			250,000			273,750
	Technology — 1.2%
		Advanced Medical Optics, 7.50%, 5/1/17			200,000			187,000
		Amkor Technology, 9.25%, 6/1/16			50,000			49,625
		First Data, 9.88%, 9/24/15 (b)			150,000			135,750
		Freescale Semiconductor, 8.88%, 12/15/14			150,000			132,750
		Lucent Technologies, 6.45%, 3/15/29			250,000			191,563
		NXP BV/NXP Funding, 9.50%, 10/15/15			250,000			235,937
								932,625
	Transportation — 0.3%
		Hertz, 10.50%, 1/1/16			250,000			249,375

			Total High Yield Corporate Bonds (cost: $19,185,917)			18,452,366

U.S. Government Agency Mortgage-Backed Securities — 36.8%
	Adjustable Rate (c) — 0.8%
		Federal Home Loan Mortgage Corporation, 6.91%, 9/1/18, #605911			147			149

2008 Quarterly Report 2 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (continued)

DESCRIPTION					PAR		VALUE (a)

		Federal National Mortgage Association,
			6.80%, 7/1/27, #070179	$	1,577		$	1,577
			6.55%, 10/1/32, #725110 (d)		327,225			331,779
		Government National Mortgage Association, 6.13%, 12/20/22, #008096			265,849			267,230
								600,735
	Fixed Rate — 36.0%
		Federal Home Loan Mortgage Corporation, 6.50%, 8/1/30, #C43641			90,207			94,077
		Federal Home Loan Mortgage Corporation Gold,
			6.50%, 11/1/28, #C00676 (d)		256,328			267,326
			5.50%, 10/1/33, #A15120 (d)		1,024,025			1,020,921
		Federal National Mortgage Association,
			6.50%, 10/1/08, #735273 (d)		849,868			883,412
			6.00%, 12/1/13, #190179 (d)		266,956			273,574
			7.50%, 5/1/15, #537440		27,132			28,289
			7.00%, 6/1/17, #254384		183,678			192,438
			7.00%, 7/1/17, #254414 (d)		268,116			280,902
			6.00%, 9/1/17, #653368		196,061			201,840
			5.00%, 11/1/18, #750989 (d)		450,077			450,479
			5.00%, 2/1/19, #767182 (d)		729,078			729,730
			5.00%, 2/1/21, #745279 (d)		729,199			727,572
			5.50%, 4/1/21, #840466 (d)		975,838			987,689
			6.00%, 5/1/29, #323702 (d)		450,097			460,407
			6.50%, 5/1/31, #540814		97,263			101,193
			7.00%, 9/1/31, #596680 (d)		331,958			348,964
			7.00%, 3/1/32, #635970		149,358			158,303
			6.50%, 6/1/32, #596712 (d)		440,775			453,852
			5.50%, 6/1/33, #709700 (d)		692,631			690,315
			5.50%, 11/1/33, #555967 (d)		1,642,599			1,637,106
			5.50%, 12/1/33, #756202 (d)		1,016,656			1,013,256
			5.50%, 2/1/34, #766070 (d)		773,806			770,493
			6.00%, 1/1/34, #763687 (d)		764,004			777,684
			6.00%, 3/1/34, #745324 (d)		852,110			871,096
			6.00%, 11/1/34, #743642 (d)		457,425			466,330
			6.00%, 1/1/35, #810225 (d)		671,305			683,325
			5.50%, 3/1/35, #815979 (d)		1,441,063			1,433,542
			5.00%, 7/1/35, #828346 (d)		1,901,720			1,841,281
			5.50%, 3/1/36, #878059 (d)		1,270,885			1,263,458
			6.00%, 6/1/36, #882685 (d)		3,271,967			3,323,398
			5.00%, 6/1/37, #944244 (d)		1,478,375			1,429,690
			6.00%, 12/1/99 (e)		2,000,000			2,028,750
		Government National Mortgage Association,
			6.50%, 4/15/33, #602233		311,203			322,698
			5.50%, 8/15/33, #604567 (d)		1,079,911			1,083,420
			6.00%, 7/15/34, #631574 (d)		551,825			563,171
								27,859,981
			Total U.S. Government Agency Mortgage-Backed Securities (cost: $28,307,958)			28,460,716

Collateralized Mortgage Obligation - Private Mortgage-Backed Securities — 42.1%
	Adjustable Rate (c) — 12.9%
		Banc of America Alternative Loan Trust, Series 2007-1, Class 2A2, 6.49%, 4/25/37			860,254			826,919
		California Federal Bank Los Angeles, Series 1991-C12, Class A, 6.15%, 7/15/21 (f)			11,832			11,291
		Countrywide Alternative Loan Trust, Series 2006-OA17, Class 1A1A, 2.67%, 10/25/36			1,421,387			1,107,970
		Goldman Sachs Mortgage Securities,
			Series 2005-AR1, Class B1, 5.44%, 1/25/35		1,419,095			1,160,710
			Series 2003-1, Class B2, 6.97%, 3/25/43		1,780,174			1,790,531
			Series 2003-10, Class 1A1, 4.72%, 10/25/33		1,215,957			1,142,499
		Harborview Mortgage Loan Trust, Series 2006-1, Class 2A1A, 2.74%, 3/19/37			1,465,942			1,151,640
		IndyMac Index Mortgage Loan Trust, Series 2006-AR13, Class A3, 6.07%, 7/25/36			1,500,000			819,723
		JP Morgan Mortgage Trust, Series 2006-A7, Class 3A4, 5.94%, 1/25/37			813,919			614,045
		Washington Mutual Mortgage Pass-Through Certificates, Series 2007-HY2, Class 3A2, 5.94%, 9/25/36			856,049			767,377

2008 Quarterly Report 3 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (continued)

May 31, 2008

DESCRIPTION						PAR			VALUE (a)

		Washington Mutual MCS Mortgage, Series 2003-AR3, Class B1, 5.19%, 6/25/33		$	509,999			$		500,155
		Wells Fargo Mortgage-Backed Securities Trust, Series 2003-D, Class A1, 6.40%, 2/25/33			76,684					76,496
										9,969,356
	Fixed Rate — 29.2%
		Banc of America Funding, Series 2007-4, Class 1A2, 5.50%, 6/25/37			974,322					933,955
		Citicorp Mortgage Securities, Series 2004-5, Class B3, 5.29%, 8/25/34			1,146,885					700,430
		Credit Suisse First Boston Mortgage Securities Corporation,
			Series 2003-8, Class DB1, 6.25%, 4/25/33		1,408,454					1,218,716
			Series 2005-11, Class 6A7, 6.00%, 12/25/35		1,000,000					923,474
			Series 2005-12, Class DB4, 5.84%, 1/25/36		819,026					71,056
		Countrywide Alternative Loan Trust,
			Series 2004-28CB, Class 2A1, 5.00%, 1/25/35		396,557					389,728
			Series 2005-7CB, Class 2A4, 5.50%, 4/25/35		750,000					730,242
		First Horizon Alternative Mortgage Securities, Series 2005-FA5, 5.50%, Class 3A2, 8/25/35			1,179,751					1,073,248
		GMAC Mortgage Corporation Loan Trust,
			Series 2003-J9, Class A15, 5.00%, 1/25/34		1,325,000					1,257,323
			Series 2004-J5, Class A7, 6.50%, 1/25/35		807,789					792,643
		Goldman Sachs Mortgage Securities,
			Series 2001-2, Class A, 7.50%, 6/19/32 (b)		273,012					291,473
			Series 2005-4F, Class B1, 5.73%, 5/25/35		1,229,864					919,372
		Impac Secured Assets CMN Owner Trust, Series 2000-3, Class M1, 8.00%, 10/25/30			705,142					703,677
		JP Morgan Alternative Loan Trust, Series 2006-SI, Class 1A19, 6.50%, 3/25/36			1,016,609					895,886
		Morgan Stanley Mortgage Loan Trust, Series 2004-9, Class 1A, 6.15%, 10/25/34			1,083,356					987,208
		Nomura Asset Acceptance Corporation, Series 2004-R2, Class B1, 6.74%, 10/25/34 (b)			1,065,473					1,109,873
		Prime Mortgage Trust,
			Series 2004-2, Class B2, 5.04%, 11/25/19		352,910					320,366
			Series 2004-2, Class B3, 5.04%, 11/25/19		264,478					230,285
		Residential Accredit Loans, Series 2003-QS12, Class M1, 5.00%, 6/25/18			855,083					771,986
		Residential Accredit Loans, Series 2006-QS4, Class A9, 6.00%, 4/25/36			684,667					608,478
		Residential Asset Mortgage Products,
			Series 2003-SL1, Class M2, 7.32%, 4/25/31		980,793					892,618
			Series 2004-SL4, Class A3, 6.50%, 7/25/32		763,085					725,885
		Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2007-2, Class 3A1, 5.50%, 4/25/22			981,320					952,187
		Washington Mutual MSC Mortgage, Series 2003-MS9, Class CB2, 7.46%, 4/25/33			370,225					290,477
		Washington Mutual Mortgage, Series 2004-RA3, Class 2A, 6.38%, 8/25/38			411,087					409,546
		Wells Fargo Mortgage-Backed Securities Trust,
			Series 2003-7, Class A3, 4.50%, 8/25/18		545,133					537,626
			Series 2004-7, Class 2A2, 5.00%, 7/25/19		638,563					622,200
			Series 2004-7, Class B2, 4.72%, 7/25/19		591,972					532,158
			Series 2004-7, Class B3, 4.72%, 7/25/19		444,179					383,518
			Series 2005-3, Class A9, 5.50%, 5/25/35		1,737,755					1,329,900
			Series 2007-9, Class 1A4, 5.50%, 7/25/37		1,240,000					1,017,866
										22,623,400
			Total Collateralized Mortgage Obligation - Private Mortgage-Backed Securities (cost: $36,724,957)				32,592,756
Collateralized Mortgage Obligation - U.S. Agency Mortgage-Backed Securities — 12.8%
	Fixed Rate — 8.5%
		Federal Home Loan Mortgage Corporation,
			Series 2690, Class OE, 5.00%, 11/15/28		1,274,000					1,286,698
			Series 2972, Class KA, 4.50%, 6/15/18		669,030					670,088
			Series 3294, Class DB, 4.50%, 3/15/22		1,000,000					940,287
		Federal National Mortgage Association,
			Series 2004-27, Class HB, 4.00%, 5/25/19		1,923,137					1,758,123
			Series 2004-29, Class WG, 4.50%, 5/25/19		942,115					902,854
			Series 2004-90, Class GA, 4.35%, 3/25/34		623,648					617,156
			Series 2002-WI, Class 2A, 7.50%, 2/25/42		346,182					363,939
										6,539,145

2008 Quarterly Report 4 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (continued)

DESCRIPTION						PAR			VALUE (a)

	Z-Bonds (g) — 4.3%
		Federal Home Loan Mortgage Corporation, Series 2676, Class GZ, 4.50%, 9/15/33		$	1,848,895			$		1,446,728
		Government National Mortgage Association, Series 2001-8, Class Z, 6.50%, 3/20/31			1,825,897					1,904,427
										3,351,155
			Total Collateralized Mortgage Obligation - U.S. Agency Mortgage-Backed Securities (cost: $9,646,657)				9,890,300
Asset-Backed Securities — 9.8%
	Commercial — 2.6%
		Banc of America Commercial Mortgage, Series 2005-S, Class AM, 5.18%, 10/10/45			340,000					321,069
		Bear Stearns Commercial Mortgage Securities,
			Series 2007-T28, Class D, 6.18%, 9/11/42 (b) (c)		475,000					323,932
			Series 2007-PW18, Class AJ, 6.21%, 11/11/17		180,000					158,461
		JP Morgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class B, 5.50%, 12/15/44 (c)			425,000					388,004
		Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C, 5.13%, 7/12/38			500,000					434,083
		Morgan Stanley Capital I, Series 2005-HQ6, Class B, 5.15%, 8/13/42			445,000					402,007
										2,027,556
	Credit Cards — 2.1%
		American Express Issuance Trust, Series 2005-1, Class C, 3.45%, 8/15/11 (c)			435,000					406,731
		Discover Card Master Trust, Series 2007-C1, Class C1, 2.83%, 1/15/13 (c)			370,000					332,583
		Washington Mutual Master Note Trust, Series 2007-C1, Class C1, 6.01%, 5/15/14 (b) (c)			1,000,000					869,416
										1,608,730
	Home Equity — 2.8%
		Residential Funding Mortgage Securities II,
			Series 2004-HI2, Class A4, 5.24%, 9/25/18		366,045					355,033
			Series 2003-HI4, Class M1, 5.53%, 2/25/29 (h)		2,014,299					1,786,239
										2,141,272
	Manufactured Housing — 1.1%
		Green Tree Financial, Series 1994-2, Class A5, 8.30%, 5/15/19			208,170					215,406
		Origen Manufactured Housing, Series 2005-B, Class M1, 5.99%, 1/15/37			750,000					643,217
										858,623
	Other — 1.2%
		Crown Castle Towers LLC, Series 2005-1A, Class D, 5.61%, 6/15/35 (b)			1,000,000					953,730

			Total Asset-Backed Securities (cost: $8,292,064)				7,589,911

Investment Grade Corporate Bonds — 3.0%
	Basic Industry — 0.8%
		Southern Copper, 7.50%, 7/27/35			400,000					394,605
		Vale Overseas, 6.25%, 1/11/16			250,000					252,129

										646,734

2008 Quarterly Report 5 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (continued)

DESCRIPTION							PAR/ SHARES			VALUE (a)

	Communications — 0.2%
		Qwest, 8.88%, 3/15/12		$		175,000			$		183,313
	Consumer Cyclical — 0.2%
		CVS/Caremark, 6.30%, 6/1/37 (c)				200,000					174,000
	Consumer Non Cyclical — 0.7%
		Fisher Scientific International, 6.75%, 8/15/14				500,000					506,620
	Energy — 0.2%
		TNK BP Finance, 6.63%, 3/20/17 (b)				200,000					181,760
	Finance — 0.3%
		Capital One Financial, 6.75%, 9/15/17				200,000					200,438
	Transportation — 0.6%
		American Airlines, Series 99-1, 7.02%, 10/15/09				500,000					493,750
			Total Investment Grade Corporate Bonds (cost: $2,398,585)								2,386,615

Municipal Bond — 0.9%
		Sullivan County, Tennessee, Health, Educational and Housing Facilities board, Hospital Revenue, Welmont Health System, 6.95%, 9/1/16 (cost $695,000)				695,000					695,327

Preferred Stocks — 1.1%
	Real Estate Investment Trusts — 0.9%
		Ashford Hospitality Trust, Series D				5,000					94,950
		Citigroup, Series AA				5,000					122,100
		Citigroup, Series F				4,000					99,960
		Freddie Mac, Series Z				5,000					125,500
		iStar Financial, Series G				1,000					18,240
		National Retail Properties, Series C				4,000					93,280
		Northstar Realty Finance,
			Series A			4,000					65,600
			Series B			4,000					62,600
											682,230
	Wireless Communication — 0.2%
		United States Cellular				6,000					140,700
			Total Preferred Stocks (cost: $952,300)					822,930

Short-Term Investments — 2.4%
	Money Market Fund— 2.2%
		First American Prime Obligations Fund, Class Z (i)				1,695,854					1,695,854

U.S. Treasury Obligation (j) — 0.2%
		U.S. Treasury Bill , 2.27%, 7/24/08				200,000					199,709
			Total Short-Term Investments (cost: $1,895,563)		1,895,854						1,895,563
		Total Investments (k) — 132.8% (cost: $108,099,001)							$		102,786,484
		Other Assets and Liabilities — (32.8)%									(25,406,483)
		Total Net Assets — 100.0%							$		77,380,001

2008 Quarterly Report 6 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (continued)

Notes to Schedule of Investments:
(a)		Debt obligations exceeding 60 days to maturity are valued by an independent pricing service that has been approved by the fund’s board of directors. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date. The following investment vehicles, when held by the fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than foreign currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available. Foreign currency forward contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s exchange rate, and the 30-, 60-, 90-, 180-, and 360-day forward rates provided by an independent pricing service. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the fund’s board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the security is purchased or sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. As of May 31, 2008, the fund held a fair valued security with a value of $11,291, or 0.01% of total net assets.
(b)		Securities sold within terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, which may be sold only to dealers in that program or other "qualified institutional buyers". On May 31, 2008, the value of these investments was $8,322,636 or 10.8% of total net assets.

(c)		Variable Rate Security - The rate shown is the net coupon rate in effect as of May 31, 2008.

(d)		Securities pledged as collateral for outstanding reverse repurchase agreements. On May 31, 2008, securities valued at $25,064,172 were pledged as collateral for the following outstanding reverse repurchase agreements.

Amount	Acquisition Date	Rate*	Due	Accrued Interest	Name of Broker and Description of Collateral
$ 8,295,454	5/16/08	2.85%	6/16/08	$ 10,507	(1)
15,770,000	5/23/08	2.75%	6/6/08	10,842	(1)
$ 24,065,454				$ 21,349

* Interest rate as of May 31, 2008. Rates are based on the London InterBank Offered Rate (LIBOR) and reset monthly.

2008 Quarterly Report 7 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (continued)

Name of broker and description of collateral:
(1)		Goldman Sachs:
		Federal Home Loan Mortgage Corporation Gold, 6.50%, 11/1/28, $256,328 par
		Federal Home Loan Mortgage Corporation Gold, 5.50%, 10/1/33, $1,024,025 par
		Federal National Mortgage Association, 6.50%, 10/1/08, $849,868 par
		Federal National Mortgage Association, 6.00%, 12/1/13, $266,956 par
		Federal National Mortgage Association, 7.00%, 7/1/17, $268,116 par
		Federal National Mortgage Association, 5.00%, 11/1/18, $450,077 par
		Federal National Mortgage Association, 5.00%, 2/1/19, $729,078 par
		Federal National Mortgage Association, 5.00%, 2/1/21, $729,199 par
		Federal National Mortgage Association, 5.50%, 4/1/21, $975,838 par
		Federal National Mortgage Association, 6.00%, 5/1/29, $450,097 par
		Federal National Mortgage Association, 7.00%, 9/1/31, $331,958 par
		Federal National Mortgage Association, 6.50%, 6/1/32, $440,775 par
		Federal National Mortgage Association, 6.55%, 10/1/32, $327,225 par
		Federal National Mortgage Association, 5.50%, 6/1/33, $692,631 par
		Federal National Mortgage Association, 5.50%, 11/1/33, $1,642,599 par
		Federal National Mortgage Association, 5.50%, 12/1/33, $1,016,656 par
		Federal National Mortgage Association, 5.50%, 1/1/34, $773,806 par
		Federal National Mortgage Association, 6.00%, 1/1/34, $764,004 par
		Federal National Mortgage Association, 6.00%, 3/1/34, $852,110 par
		Federal National Mortgage Association, 6.00%, 11/1/34, $457,425 par
		Federal National Mortgage Association, 6.00%, 1/1/35, $671,305 par
		Federal National Mortgage Association, 5.50%, 3/1/35, $1,441,063 par
		Federal National Mortgage Association, 5.00%, 7/1/35, $1,901,720 par
		Federal National Mortgage Association, 5.50%, 3/1/36, $1,270,885 par
		Federal National Mortgage Association, 6.00%, 6/1/36, $3,271,967 par
		Federal National Mortgage Association, 5.00%, 6/1/37, $1,478,375 par
		Government National Mortgage Association, 5.50%, 8/15/33, $1,079,911 par
		Government National Mortgage Association, 6.00%, 7/15/34, $551,825 par

(e)		Security purchased on a when-issued basis. On May 31, 2008, the total cost of investments on a when-issued basis was $2,045,000 or 2.6% of total net assets.

(f)		Security is fair valued and illiquid. As of May 31, 2008, the value of this investment was $11,291 or 0.01% of total net assets.

(g)		Z-Bond – Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate shown represents the current yield based upon the current cost basis and estimated future cash flows.

(h)		Delayed interest (Step Bonds) – Securities for which the coupon rate of interest will adjust on specified future date(s).

(i)		Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for the fund.

(j)		Security has been deposited as initial margin on open futures contracts and swap agreements. Yield shown is effective yield as of May 31, 2008.

(k)		On May 31, 2008, the cost of investments in securities was $108,099,001. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows:

Gross unrealized appreciation	$	1,137,203
Gross unrealized depreciation		(6,449,720	)
Net unrealized depreciation	$	(5,312,517	)

Schedule of Open Futures Contracts
Description	Number of Contracts Sold	Notional Contract Value	Settlement Month	Unrealized Appreciation
U.S. Treasury 5 Year Note Futures	76	$(8,355,250)	September 2008	$ 52,887
U.S. Treasury 10 Year Note Futures	33	(3,709,408)	September 2008	39,449
U.S. Treasury Long Bond Futures	20	(2,270,000)	September 2008	14,094
				$ 106,430

2008 Quarterly Report 8 American Income Fund, Inc.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF) (concluded)

Credit Default Swap Agreements
Counterparty	Reference Entity	Buy/Sell Protection	Pay/Receive Fixed Rate	Expiration Date	Notional Amount	Unrealized Appreciation/ (Depreciation)
Deutsche Bank	Dow Jones CDX HVOL10 Index	Sell	3.50%	6/20/2013	$500,000	$6,229
Deutsche Bank	Dow Jones CDX HY9 Index	Sell	1.40%	12/20/2012	500,000	3,391
JP Morgan	ABX HE AAA 07-1	Sell	0.09%	8/25/2037	250,000	(3,350)
JP Morgan	Dow Jones CDX HY9 Index	Sell	3.75%	12/20/2012	2,178,000	50,394
JP Morgan	ITRAXX ASIA EX Japan HY	Sell	6.50%	6/20/2013	1,800,000	117,078
UBS	Dow Jones CDX HY10 Index	Sell	5.00%	6/20/2013	800,000	21,083
UBS	Turkey Government International Bond	Buy	1.48%	7/20/2012	300,000	7,651
						$202,476