mrf_53109nq.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number (811-05642)

American Income Fund, Inc.

(Exact name of registrant as specified in charter)

800 Nicollet Mall

Minneapolis, MN 55402

(Address of principal executive offices) (Zip code)

Charles D. Gariboldi, Jr.

800 Nicollet Mall Minneapolis, MN 55402

(Name and address of agent for service)

800-677-3863

Registrant's telephone number, including area code

Date of fiscal year end: 08/31/09

Date of reporting period: 05/31/09

Item 1. Schedule of Investments.

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

DESCRIPTION					PAR		VALUE ☆

(Percentages of each investment category relate to total net assets)
High Yield Corporate Bonds — 30.3%
	Basic Industry — 5.3%
		AK Steel, 7.75%, 6/15/12		$	200,000	$	188,000
		Domtar,
			5.38%, 12/1/13		100,000		82,500
			7.13%, 8/15/15		225,000		186,750
		Evraz Group SA, 8.25%, 11/10/15 n			150,000		108,375
		FMG Finance Property Ltd., 10.00%, 9/1/13 n			250,000		222,500
		Griffin Coal Mining Property Ltd., 9.50%, 12/1/16 n			150,000		63,375
		Hexion, 9.75%, 11/15/14			250,000		107,500
		Ineos Group Holdings PLC, 8.50%, 2/15/16 n			50,000		15,500
		International Paper, 9.38%, 5/15/19			500,000		503,297
		Intertape Polymer US, 8.50%, 8/1/14 ∞			150,000		66,750
		INVISTA, 9.25%, 5/1/12 n			200,000		187,000
		Massey Energy, 6.88%, 12/15/13			250,000		221,250
		Newark Group, 9.75%, 3/15/14 ∞ u			200,000		2,000
		Noble Group Ltd., 6.63%, 3/17/15 n			250,000		212,500
		Nova Chemicals, 6.50%, 1/15/12			250,000		227,500
		Owens Corning, 6.50%, 12/1/16			270,000		234,916
		Ply Gem Industries, 11.75%, 6/15/13			125,000		80,000
		Steel Dynamics, 6.75%, 4/1/15			184,000		156,860
		Teck Resources Ltd., 9.75%, 5/15/14 n			500,000		497,500
		Vedanta Resources PLC, 9.50%, 7/18/18 n			100,000		87,000
		Verso Paper Holdings LLC, Series B, 11.38%, 8/1/16			115,000		47,150
							3,498,223

	Capital Goods — 1.2%
		BE Aerospace, 8.50%, 7/1/18			250,000		236,250
		Case New Holland, 7.13%, 3/1/14			200,000		185,500
		Hawker Beechcraft Acquisition LLC, 9.75%, 4/1/17			150,000		46,500
		Masco, 5.88%, 7/15/12			110,000		97,957
		Owens-Brockway Glass Container, 7.38%, 5/15/16 n			250,000		241,875
							808,082

	Communications — 4.6%
		CCO Holdings LLC, 8.75%, 11/15/13 u			250,000		228,750
		Central European Media Enterprises Ltd., 3.50%, 3/15/13 n			100,000		63,125
		CSC Holdings, 8.50%, 4/15/14 n			250,000		248,750
		Frontier Communications, 9.00%, 8/15/31			330,000		278,437
		Inmarsat Finance II PLC, 10.38%, 11/15/12			150,000		154,875
		Intelsat Intermediate Holding Ltd., 0.00% through 2/1/10, 9.50% thereafter, 2/1/15 n ©			100,000		90,250
		Intelsat Jackson Holdings Ltd., 11.25%, 6/15/16			150,000		153,750
		Level 3 Financing, 12.25%, 3/15/13			250,000		228,750
		MetroPCS Wireless, 9.25%, 11/1/14			150,000		150,563
		Nextel Communications, Series F, 5.95%, 3/15/14			250,000		197,500
		Nielsen Finance LLC, 11.50%, 5/1/16 n			150,000		142,500
		Nielsen Finance LLC, 0.00% through 8/1/11, 12.50% thereafter, 8/1/16 ©			240,000		153,600
		Qwest, 8.88%, 3/15/12			175,000		176,313
		Qwest Capital Funding, 7.25%, 2/15/11			300,000		291,000
		Sprint Capital, 8.75%, 3/15/32			150,000		118,500
		UBS Luxembourg SA, 8.25%, 5/23/16 n			150,000		124,500
		Windstream, 8.13%, 8/1/13			250,000		245,937
							3,047,100

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

DESCRIPTION					PAR		VALUE ☆

	Consumer Cyclical — 5.2%
		AutoNation, 3.13%, 4/15/13 r		$	50,000	$	43,500
		Denny's Holdings, 10.00%, 10/1/12			100,000		96,500
		Ford Motor, 7.45%, 7/16/31			100,000		58,000
		Ford Motor Credit LLC, 7.00%, 10/1/13			560,000		451,897
		Galaxy Entertainment Finance Ltd., 9.88%, 12/15/12 n			250,000		207,500
		General Motors, 8.25%, 7/15/23 u			150,000		13,500
		Hanesbrands, Series B, 5.70%, 12/15/14 r			250,000		201,250
		Harrah's Operating,
			10.75%, 2/1/16		113,000		61,020
			10.00%, 12/15/18 n		126,000		84,105
		Lear, Series B, 8.50%, 12/1/13 u			150,000		39,000
		Meritage Homes, 6.25%, 3/15/15			140,000		105,350
		MGM Mirage, 13.00%, 11/15/13 n			200,000		218,500
		Mohegan Tribal Gaming Authority, 7.13%, 8/15/14			150,000		103,500
		Neiman Marcus Group, 10.38%, 10/15/15			190,000		100,700
		PEP Boys-Manny, Moe & Jack, 7.50%, 12/15/14			195,000		147,225
		Rite Aid,
			10.38%, 7/15/16		250,000		223,125
			7.50%, 3/1/17		100,000		78,500
		Royal Caribbean Cruises Ltd., 7.00%, 6/15/13			100,000		83,250
		Sally Holdings LLC, 10.50%, 11/15/16			200,000		200,500
		Susser Holdings LLC, 10.63%, 12/15/13			200,000		201,000
		Tenneco, 8.13%, 11/15/15			350,000		257,250
		Ticketmaster Entertainment, 10.75%, 7/28/16 n			150,000		120,000
		UAL, 4.50%, 6/30/21			150,000		59,250
		Wyndham Worldwide, 6.00%, 12/1/16			172,000		128,903
		Wynn Las Vegas LLC, 6.63%, 12/1/14			205,000		175,531
							3,458,856

	Consumer Non Cyclical — 4.0%
		Catalent Pharma Solutions, 9.50%, 4/15/15			250,000		96,250
		Chiquita Brands International, 7.50%, 11/1/14			100,000		83,000
		Community Health Systems, 8.88%, 7/15/15			215,000		212,581
		Constellation Brands, 7.25%, 5/15/17			200,000		186,500
		Del Monte, 8.63%, 12/15/12			200,000		201,000
		Fisher Scientific International, 6.75%, 8/15/14			220,000		225,989
		HCA, 6.75%, 7/15/13			250,000		210,625
		Health Management Associates, 6.13%, 4/15/16			200,000		170,000
		Ingles Markets, 8.88%, 5/15/17 n			250,000		246,563
		JBS USA LLC, 11.63%, 5/1/14 n			150,000		144,000
		Select Medical, 7.63%, 2/1/15			135,000		106,650
		Smithfield Foods, Series B, 7.75%, 5/15/13			250,000		188,750
		Stater Brothers Holdings, 8.13%, 6/15/12			195,000		193,050
		SUPERVALU, 8.00%, 5/1/16			250,000		245,000
		Surgical Care Affiliates, 10.00%, 7/15/17 n			135,000		108,000
							2,617,958

	Electric — 2.7%
		Dynegy Holdings, 7.75%, 6/1/19			250,000		181,875
		Edison Mission Energy, 7.75%, 6/15/16			245,000		189,875
		ISA Capital do Brasil SA, 8.80%, 1/30/17 n			400,000		407,000
		Mirant Americas Generation LLC, 8.50%, 10/1/21			200,000		166,000
		NRG Energy, 7.38%, 2/1/16			150,000		141,187
		RRI Energy, 7.63%, 6/15/14			250,000		216,875
		Teco Finance, 6.57%, 11/1/17			250,000		225,351
		Texas Competitive Electric Holdings LLC, Series A, 10.25%, 11/1/15			450,000		266,625
							1,794,788

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

DESCRIPTION					PAR		VALUE ☆

	Energy — 1.9%
		Chesapeake Energy,
			7.00%, 8/15/14	$	250,000	$	226,875
			9.50%, 2/15/15		150,000		148,125
		Forest Oil, 7.25%, 6/15/19			115,000		98,900
		PetroHawk Energy, 7.88%, 6/1/15			215,000		199,413
		Plains Exploration & Production, 7.75%, 6/15/15			150,000		139,875
		Sabine Pass LNG LP, 7.50%, 11/30/16			200,000		162,000
		Stone Energy, 6.75%, 12/15/14			100,000		58,250
		Tesoro, 6.63%, 11/1/15			250,000		212,812
							1,246,250

	Finance — 0.6%
		American General Finance, Series MTN, 5.85%, 6/1/13			195,000		93,489
		CIT Group Funding of Canada, 5.20%, 6/1/15			300,000		199,224
		Nuveen Investments, 5.50%, 9/15/15			200,000		72,000
							364,713

	Industrials Other — 0.7%
		Briggs & Stratton, 8.88%, 3/15/11			282,000		284,115
		Terex Corp, 7.38%, 1/15/14			200,000		183,500
							467,615

	Natural Gas — 1.0%
		Copano Energy LLC, 7.75%, 6/1/18			250,000		221,250
		El Paso Energy, Series MTN, 7.80%, 8/1/31			100,000		79,538
		Southern Union, 7.20%, 11/1/66 r			200,000		121,000
		Targa Resources, 8.50%, 11/1/13			315,000		225,225
							647,013

	Real Estate — 1.0%
		Agile Property Holdings Ltd., 9.00%, 9/22/13 n			125,000		111,875
		Duke Realty LP, 5.50%, 3/1/16			200,000		149,084
		Shimao Property Holdings Ltd., 8.00%, 12/1/16 n			150,000		109,500
		Simon Property Group LP, 10.35%, 4/1/19			250,000		281,576
							652,035

	Sovereigns — 0.4%
		Republic of Uruguay, 8.00%, 11/18/22			250,000		261,250

	Technology — 0.4%
		Advanced Micro Devices, 6.00%, 5/1/15			100,000		48,000
		Alcatel-Lucent USA, 6.45%, 3/15/29			250,000		142,500
		Freescale Semiconductor, 9.13%, 12/15/14 (PK)			150,000		41,250
		NXP BV/NXP Funding LLC, 10.00%, 7/15/13 n			76,500		54,315
							286,065

	Transportation — 1.3%
		Continental Airlines, 7.46%, 10/1/16			83,153		62,365
		Delta Air Lines, Series 2001-1, Class B, 7.71%, 9/18/11			310,000		235,600
		Hertz, 10.50%, 1/1/16			250,000		217,500
		Navios Maritime Holdings, 9.50%, 12/15/14			400,000		306,000
							821,465

			Total High Yield Corporate Bonds (Cost: $21,467,195)				19,971,413

U.S. Government Agency Mortgage-Backed Securities — 55.5%
	Adjustable Rate r — 0.8%
		Federal Home Loan Mortgage Corporation, 4.39%, 9/1/18, #605911			131		132
		Federal National Mortgage Association,
			3.77%, 7/1/27, #070179		1,395		1,402
			4.72%, 10/1/32, #725110 α		282,855		288,254

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

DESCRIPTION					PAR		VALUE ☆

		Government National Mortgage Association, 4.13%, 12/20/22, #008096		$	219,755	$	222,668

							512,456
	Fixed Rate — 54.7%
		Federal Home Loan Mortgage Corporation Gold,
			6.50%, 11/1/28, #C00676 α		213,808		230,848
			5.50%, 10/1/33, #A15120 α		908,656		942,958
		Federal National Mortgage Association,
			6.00%, 12/1/13, #190179 α		203,407		209,406
			7.00%, 7/1/17, #254414 α		213,807		227,770
			5.00%, 11/1/18, #750989 α		369,575		385,330
			5.00%, 2/1/19, #767182 α		610,785		636,822
			5.00%, 2/1/21, #745279 α		609,742		633,257
			5.50%, 4/1/21, #840466 α		756,244		790,479
			6.00%, 5/1/29, #323702 α		377,143		399,026
			7.00%, 9/1/31, #596680 α		298,110		323,639
			6.50%, 6/1/32, #596712 α		352,564		375,797
			5.50%, 6/1/33, #709700 α		581,270		603,552
			5.50%, 11/1/33, #555967 α		1,396,943		1,450,492
			6.00%, 11/1/33, #743642 α		411,851		434,717
			5.50%, 12/1/33, #756202 α		839,488		871,668
			6.00%, 1/1/34, #763687 α		750,294		790,544
			5.50%, 2/1/34, #766070 α		671,925		697,262
			6.00%, 3/1/34, #745324 α		711,889		753,194
			6.50%, 6/1/34, #735273 α		758,825		817,492
			6.00%, 1/1/35, #810225 α		632,940		666,895
			5.50%, 3/1/35, #815979 α		1,290,526		1,337,980
			5.00%, 7/1/35, #828346 α		1,622,148		1,664,746
			5.50%, 3/1/36, #878059 α		1,094,024		1,132,713
			6.00%, 6/1/36, #882685 α		2,757,093		2,892,075
			5.00%, 6/1/37, #944244 α		1,409,429		1,444,900
			4.50%, 6/1/39 ê		575,000		579,312
			5.00%, 6/1/39 ê		5,005,000		5,123,869
			5.50%, 6/1/39 ê		7,850,000		8,114,937
		Government National Mortgage Association,
			5.50%, 8/15/33, #604567 α		954,244		995,038
			6.00%, 7/15/34, #631574 α		502,396		528,175
							36,054,893

			Total U.S. Government Agency Mortgage-Backed Securities (Cost: $35,578,040)				36,567,349

Collateralized Mortgage Obligation - Private Mortgage-Backed Securities — 37.5%
	Adjustable Rate r — 10.5%
		Banc of America Alternative Loan Trust, Series 2007-1, Class 2A2, 6.48%, 4/25/37			824,607		466,161
		California Federal Bank Los Angeles, Series 1991-CI2, Class A, 6.15%, 7/15/21 ∞			11,209		11,121
		Countrywide Alternative Loan Trust, Series 2006-OA17, Class 1A1A, 0.51%, 12/20/46			1,347,370		449,931
		Goldman Sachs Mortgage Loan Trust,
			4.71%, 10/25/33, Series 2003-10, Class 1A1		992,562		906,733
			5.09%, 1/25/35, Series 2005-AR1, Class B1 ∞		1,346,014		277,841
			6.91%, 3/25/43, Series 2003-1, Class B2 ∞		1,720,663		1,561,817
		Harborview Mortgage Loan Trust, Series 2006-1, Class 2A1A, 0.55%, 3/19/36			1,366,522		521,386
		IndyMac Index Mortgage Loan Trust, Series 2006-AR13, Class A3, 5.96%, 7/25/36			1,500,000		778,496
		JP Morgan Mortgage Trust, Series 2006-A7, Class 3A4, 5.94%, 1/25/37			678,157		176,546
		Washington Mutual Mortgage Pass-Through Certificates, Series 2007-HY2, Class 3A2, 5.86%, 9/25/36			773,461		170,967
		Washington Mutual MSC Mortgage Pass-Through Certificates, Series 2003-AR3, Class B1, 4.18%, 6/25/33			422,693		327,994

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

DESCRIPTION					PAR		VALUE ☆

		Wells Fargo Mortgage-Backed Securities Trust,
			4.40%, 2/25/33, Series 2003-D, Class A1	$	57,195	$	51,681
			5.31%, 5/25/35, Series 2005-AR13, Class A1		1,145,000		806,811
			6.08%, 10/25/36, Series 2006-AR14, Class 2A3		550,321		392,444
							6,899,929

	Fixed Rate — 27.0%
		Banc of America Funding, Series 2007-4, Class 1A2, 5.50%, 6/25/37			877,091		468,010
		Citicorp Mortgage Securities, Series 2004-5, Class B3, 5.30%, 8/25/34 ∞			3,058,914		1,485,219
		Countrywide Alternative Loan Trust,
			5.00%, 1/25/35, Series 2004-28CB, Class 2A1		228,281		227,304
			5.50%, 4/25/35, Series 2005-7CB, Class 2A4		750,000		566,959
		Credit Suisse First Boston Mortgage Securities Corporation,
			6.24%, 4/25/33, Series 2003-8, Class DB1		1,293,876		878,079
			6.00%, 12/25/35, Series 2005-11, Class 6A7		1,000,000		480,363
			5.76%, 1/25/36, Series 2005-12, Class DB4		813,315		813
		First Horizon Alternative Mortgage Securities, Series 2005-FA5, Class 3A2, 5.50%, 8/25/35			1,020,187		697,393
		GMAC Mortgage Corporation Loan Trust, Series 2003-J9, Class A15, 5.00%, 1/25/34			1,211,876		1,201,881
		Goldman Sachs Mortgage Loan Trust,
			7.50%, 6/19/32, Series 2001-2, Class A n		248,305		204,522
			5.73%, 5/25/35, Series 2005-4F, Class B1 ∞		2,537,978		1,501,997
		Impac Secured Assets Corporation, Series 2000-3, Class M1, 8.00%, 10/25/30 ∞			635,644		600,867
		JP Morgan Alternative Loan Trust, Series 2006-S1, Class 1A19, 6.50%, 3/25/36			906,003		512,175
		Lehman Mortgage Trust, Series 2008-6, Class 1A1, 6.55%, 7/25/47			403,918		320,165
		MASTR Alternative Loans Trust, Series 2004-1, Class 3A1, 7.00%, 1/25/34			428,905		374,287
		Morgan Stanley Mortgage Loan Trust, Series 2004-9, Class 1A, 6.12%, 11/25/34			953,243		853,450
		Nomura Asset Acceptance Corporation, Series 2004-R2, Class B1, 6.74%, 10/25/34 n ∞			1,037,659		98,502
		Prime Mortgage Trust, Series 2004-2, ∞
			5.04%, 11/25/19, Class B2		327,526		166,461
			5.04%, 11/25/19, Class B3		245,454		83,189
		Residential Accredit Loans,
			5.00%, 6/25/18, Series 2003-QS12, Class M1 ∞		765,074		566,417
			5.00%, 9/25/19, Series 2004 QS13, Class M3 ∞		295,417		81,178
			6.00%, 4/25/36, Series 2006-QS4, Class A9		580,539		329,093
		Residential Asset Mortgage Products,
			7.33%, 4/25/31, Series 2003-SL1, Class M2 ∞		922,214		611,938
			6.50%, 7/25/32, Series 2004-SL4, Class A3		583,964		534,509
		Washington Mutual Mortgage Pass-Through Certificates, Series 2007-2, Class 3A1, 5.50%, 4/25/22			824,905		736,872
		Washington Mutual MSC Mortgage Mortgage Pass-Through Certificates,
			7.46%, 4/25/33, Series 2003-MS9, Class CB2 ∞		346,818		72,202
			6.34%, 8/25/38, Series 2004-RA3, Class 2A		333,540		328,641
		Wells Fargo Mortgage-Backed Securities Trust,
			4.50%, 8/25/18, Series 2003-7, Class A3		345,190		327,876
			4.72%, 7/25/19, Series 2004-7, Class B2 ∞		548,018		416,364
			4.72%, 7/25/19, Series 2004-7, Class B3 ∞		411,198		292,098
			5.50%, 5/25/35, Series 2005-3, Class A9		1,835,765		1,283,082
			5.50%, 12/25/35, Series 2005-14, Class 2A1		703,561		586,484
			5.75%, 3/25/37, Series 2007-2, Class 1A8		231,610		185,545
			5.50%, 7/25/37, Series 2007-9, Class 1A4		1,240,000		725,651
							17,799,586

			Total Collateralized Mortgage Obligation - Private Mortgage-Backed Securities (Cost: $35,409,263)				24,699,515

Collateralized Mortgage Obligation - U.S. Agency Mortgage-Backed Securities — 0.5%
	Fixed Rate — 0.5%
		Federal National Mortgage Association, Series 2002-W1, Class 2A, 7.50%, 2/25/42 (Cost: $323,671)			309,754		339,277

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

DESCRIPTION					PAR		VALUE ☆

Asset-Backed Securities — 15.4%
	Automotive — 0.2%
		Daimler Chrysler Auto Trust, Series 2006-D, Class A3, 4.98%, 2/8/11		$	49,590	$	50,165
		Hertz Vehicle Financing LLC, Series 2005-2A, Class A6, 5.08%, 11/25/11 n			65,000		59,796
							109,961

	Credit Cards r — 2.4%
		American Express Issuance Trust, Series 2005-1, Class C, 0.67%, 8/15/11			435,000		377,772
		Discover Card Master Trust, Series 2007-C1, Class C1, 0.66%, 1/15/13			370,000		309,302
		Washington Mutual Master Note Trust, Series 2007-C1, Class C1, 0.72%, 5/15/14 n ∞			1,000,000		933,535
							1,620,609

	Home Equity — 1.9%
		Home Equity Mortgage Trust, Series 2004-6, Class M2, 5.82%, 4/25/35 ©			631,199		364,885
		Residential Funding Mortgage Securities II, Series 2003-HI4, Class M1, 5.53%, 2/25/29 ©			1,275,324		865,329
							1,230,214

	Manufactured Housing — 1.7%
		Green Tree, Series 2008-MH1, Class A1, 7.00%, 4/25/38 n ∞			281,998		249,524
		Green Tree Financial, Series 1994-2, Class A5, 8.30%, 5/15/19			153,851		144,604
		Origen Manufactured Housing,
			5.73%, 11/15/35, Series 2004-B, Class M1		442,727		283,686
			5.99%, 1/15/37, Series 2005-B, Class M1		750,000		457,860
							1,135,674

	Other — 9.2%
		Banc of America Commercial Mortgage, Series 2005-5, Class AM, 5.18%, 10/10/45			340,000		215,201
		Bear Stearns Commercial Mortgage Securities,
			5.90%, 9/11/38, Series 2006-PW12, Class A4		1,000,000		866,903
			6.18%, 9/11/42, Series 2007-T28, Class D n ∞		475,000		95,797
			6.41%, 6/11/50, Series 2007-PW18, Class AJ		390,000		135,858
		Citigroup Commercial Mortgage Trust, Series 2008-C7, Class AJ, 6.10%, 12/10/49			210,000		65,234
		Greenwich Capital Commercial Funding Corporation, Series 2007-GG9, Class A4, 5.44%, 3/10/39			890,000		700,111
		GS Mortgage Securities Corporation II, Series 2007-GG10, Class A4, 5.99%, 8/10/45			1,000,000		764,738
		JP Morgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class B, 5.50%, 12/15/44 ∞			425,000		201,051
		LB-UBS Commercial Mortgage Trust, Series 2008-C1
			6.32%, 4/15/41, Class A2		752,000		627,285
			6.32%, 4/15/41, Class AM		210,000		101,749
		Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C, 5.30%, 7/12/38 ∞			500,000		219,510
		Morgan Stanley Capital I,
			5.15%, 8/13/42, Series 2005-HQ6, Class B ∞		445,000		214,762
			6.46%, 1/11/43, Series 2008-T29, Class A4 r		1,125,000		969,938
		Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A3, 5.25%, 12/15/43			1,000,000		865,354
							6,043,491

			Total Asset-Backed Securities (Cost: $11,647,231)				10,139,949

Investment Grade Corporate Bonds — 2.7%
	Basic Industry — 1.1%
		International Paper, 7.40%, 6/15/14			170,000		167,447
		Southern Copper, 7.50%, 7/27/35			400,000		332,307
		Vale Overseas, 6.25%, 1/11/16			250,000		253,824
							753,578

	Consumer Cyclical — 0.5%
		Macys Retail Holdings, 7.45%, 7/15/17			349,000		299,045

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

DESCRIPTION					PAR/ SHARES		VALUE ☆

	Consumer Non Cyclical — 0.6%
		Bunge Ltd. Finance, 7.80%, 10/15/12		$	250,000	$	248,946
		CVS Caremark, 6.30%, 6/1/37 r			200,000		136,000

							384,946

	Finance — 0.3%
		SLM, Series MTN, 1.25%, 7/26/10 r			250,000		220,013

	Industrials Other — 0.2%
		Con-way, 7.25%, 1/15/18			200,000		150,499

			Total Investment Grade Corporate Bonds (Cost: $1,764,784)				1,808,081

Preferred Stocks — 1.4%
	Banking — 0.1%
		Bank of America, Series 5			5,000		74,750

	Finance — 0.7%
		Citigroup, Series AA			5,000		109,650
		Citigroup, Series F			4,000		88,800
		MetLife, Series B			7,600		154,432
		Regions Financing Trust III			5,600		112,000

							464,882

	Real Estate Investment Trusts — 0.4%
		Duke Realty, Series O			2,500		42,150
		Freddie Mac, Series Z			5,000		2,600
		iStar Financial, Series G			1,000		7,250
		National Retail Properties, Series C			7,000		138,320
		Northstar Realty Finance, Series A			4,000		45,000
		Northstar Realty Finance, Series B			4,000		41,720

							277,040

	Wireless Communication — 0.2%
		United States Cellular			6,000		118,620

			Total Preferred Stocks (Cost: $1,170,507)				935,292

Municipal Bond — 0.9%
	Healthcare Revenue — 0.9%
		Sullivan County, Tennessee, Health, Educational & Housing Facilities Board, Hospital Revenue, Welmont Health System, Series 2001-8, 6.95%, 9/1/16 ∞ (Cost: $635,000)			635,000		592,779

Short-Term Investments — 5.8%
	Money Market Fund Ø — 5.3%
		First American Prime Obligations Fund, Class Z			3,521,724		3,521,724

	U.S. Treasury Obligation o — 0.5%
		United States Treasury Bill, 0.15%, 6/24/09		$	320,000		319,969

	Total Short-Term Investments (Cost: $3,841,693)						3,841,693

	Total Investments p — 150.0% (Cost: $111,837,384)						98,895,348

	Other Assets and Liabilities, Net — (50.0)%						(32,952,132)

	Total Net Assets — 100.0%					$	65,943,216

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

☆	Security valuations for the fund’s investments are furnished by an independent pricing service that has been approved by the fund’s board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the fund utilizes the Nasdaq Official Closing Price which compares the last trade to the bid/ask price of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask price will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. 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 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, Inc. (“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 on 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 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. 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 securities are 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, 2009, the fund held no fair valued securities.

r	Variable Rate Security - The rate shown is the rate in effect as of May 31, 2009.

n	Securities purchased 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, 2009, the value of these investments was $5,757,784 or 8.7% of total net assets.

∞	Illiquid Security - A security may be considered illiquid if it lacks a readily available market. As of May 31, 2009, the value of these investments was $10,402,919 or 15.8% of total net assets.

u	Loan is currently in default with regards to scheduled interest and/or principal payments.

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

(PK)	Payment-in-kind security for which part of the income earned may be paid as additional principal.

α	Securities pledged as collateral for outstanding reverse repurchase agreements. On May 31, 2009, securities valued at $22,502,536 were pledged as collateral for the following outstanding reverse repurchase agreements:

					Name of Broker
	Acquisition			Accrued	and Description
Amount	Date	Rate*	Due	Interest	of Collateral
$ 14,073,000	05/06/09	0.50%	06/05/09	$ 5,082	(1)
7,125,000	05/20/09	0.50%	06/19/09	1,187	(1)
$ 21,198,000				$ 6,269

		* Interest rate as of May 31, 2009. Rate is based on the London Interbank Offered Rate (“LIBOR”) plus a spread and reset monthly.

		Name of broker and description of collateral:
		(1)	Goldman Sachs:
			Federal National Mortgage Association, 4.72%, 10/1/32, $282,855 par
			Federal Home Loan Mortgage Corporation Gold, 6.50%, 11/1/28, $213,808 par
			Federal Home Loan Mortgage Corporation Gold, 5.50%, 10/1/33, $908,656 par

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

					Federal National Mortgage Association, 6.00%, 12/1/13, $203,407 par
					Federal National Mortgage Association, 7.00%, 7/1/17, $213,807 par
					Federal National Mortgage Association, 5.00%, 11/1/18, $369,575 par
					Federal National Mortgage Association, 5.00%, 2/1/19, $610,785 par
					Federal National Mortgage Association, 5.00%, 2/1/21, $609,742 par
					Federal National Mortgage Association, 5.50%, 4/1/21, $756,244 par
					Federal National Mortgage Association, 6.00%, 5/1/29, $377,143 par
					Federal National Mortgage Association, 7.00%, 9/1/31, $298,110 par
					Federal National Mortgage Association, 6.50%, 6/1/32, $352,564 par
					Federal National Mortgage Association, 5.50%, 6/1/33, $581,270 par
					Federal National Mortgage Association, 5.50%, 11/1/33, $1,396,943 par
					Federal National Mortgage Association, 6.00%, 11/1/33, $411,851 par
					Federal National Mortgage Association, 5.50%, 12/1/33, $839,488 par
					Federal National Mortgage Association, 6.00%, 1/1/34, $750,294 par
					Federal National Mortgage Association, 5.50%, 2/1/34, $650,250 par
					Federal National Mortgage Association, 6.00%, 3/1/34, $711,889 par
					Federal National Mortgage Association, 6.50%, 6/1/34, $758,825 par
					Federal National Mortgage Association, 6.00%, 1/1/35, $632,940 par
					Federal National Mortgage Association, 5.50%, 3/1/35, $1,290,526 par
					Federal National Mortgage Association, 5.00%, 7/1/35, $1,622,148 par
					Federal National Mortgage Association, 5.50%, 3/1/36, $1,094,024 par
					Federal National Mortgage Association, 6.00%, 6/1/36, $2,757,093 par
					Federal National Mortgage Association, 5.00%, 6/1/37, $1,409,429 par
					Government National Mortgage Association, 5.50%, 8/15/33, $954,244 par
					Government National Mortgage Association, 6.00%, 7/15/34, $502,396 par

ê	Security purchased on a when-issued basis. On May 31, 2009, the total cost of investments purchased on a when-issued basis was $13,821,803 or 21.0% of total net assets.
Ø	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for the fund.
o	Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of May 31, 2009.
p	On May 31, 2009, the cost of investments for federal income tax purposes was approximately $111,837,384. The approximate aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows:
	Gross unrealized appreciation	$	3,802,286
	Gross unrealized depreciation		(16,744,322	)
	Net unrealized depreciation	$	(12,942,036	)

Schedule of Open Futures Contracts
Description	Settlement Month	Number of Contracts Sold	Notional Contract Value	Unrealized Appreciation (Depreciation)
U.S. Treasury 2 Year Note Futures	September 2009	3	$ (650,438)	$	(760)
U.S. Treasury 5 Year Note Futures	September 2009	73	(8,429,219)		29,419
U.S. Treasury 10 Year Note Futures	September 2009	18	(2,106,000)		(3,569)
U.S. Treasury Long Bond Futures	September 2009	20	(2,353,125)		(4,202)
				$	20,888

Credit Default Swaps on Credit Indices – Sell Protection 1
Counterparty	Reference Index	Receive Fixed Rate	Expiration Date	Notional Amount2	Value		Unrealized Appreciation (Depreciation)
Deutsche Bank	Markit CDX HVOL11 Index	3.85%	12/20/2013	$ 1,350,000	$	(22,796)	$	19,703
JPMorgan	Markit iTRAXX Asia ex-Japan Index	6.50%	6/20/2013	500,000		(30,056)		(32,439)

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

Counterparty	Reference Index	Receive Fixed Rate	Expiration Date	Notional Amount2	Value		Unrealized Appreciation (Depreciation)
JPMorgan	Markit iTRAXX Asia ex-Japan Index	5.00%	12/20/2013	400,000	$	(38,151)	$	55,604
							$	42,868
1 If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference entity or underlying securities comprising the reference index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference entity. 2 The maximum potential amount the fund could be required to pay as a seller of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

Summary of Fair Value Exposure

The fund adopted Statement of Financial Accounting Standard No. 157, Fair Value Measurements ("FAS 157"), on September 1, 2008. FAS 157 requires the fund to classify its securities based on valuation method, using the following three levels:

Level 1 - Quoted prices in active markets for identical securities. Generally, the types of securities included within Level 1 of the fund are investments in preferred stocks, open-end funds, and futures with quoted prices.

Level 2 - Other significant observable inputs (including quoted prices for similar securities, with similar interest rates, prepayment speeds, credit risk, etc.). Generally, the types of securities included in Level 2 of the fund are corporate and municipal bonds, asset-backed securities, mortgage-backed securities, U.S. government and agency securities, collateralized mortgage obligations, U.S. Treasury bills and swaps.

Level 3 - Significant unobservable inputs (including the fund's own assumptions in determining the fair value of investments). Generally, the types of securities included in Level 3 of the fund are securities for which there are limited or no observable fair value inputs available, and as such the fair value is determined through independent broker quotations or management's fair value procedures established 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/or an evaluation of the forces that influence the market in which the securities are purchased and sold.

The valuation levels are not necessarily an indication of the risk associated with investing in these investments. Industry implementation has just begun and it may be some period of time before industry practices become more uniform. For this reason, care should be exercised in interpreting this information and/or using it for comparison with other mutual funds.

As of May 31, 2009, the fund's investments were classified as follows:

	Investments in		Other Financial
	Securities		Instruments*
Level 1 - Quoted prices in active markets for identical assets	$	4,457,016	$	20,888
Level 2 - Other significant observable inputs		93,820,202		42,868
Level 3 - Significant unobservable inputs		618,130		—
Total	$	98,895,348	$	63,756
*Other financial instruments are derivative instruments such as futures and swaps, which are valued at the unrealized appreciation (depreciation) on the instrument.

American Income Fund 2009 Quarterly Report

Schedule of INVESTMENTS (unaudited)

American Income Fund (MRF)

May 31, 2009

	Investments in
	Securities
Balance as of August 31, 2008	$	1,445,993
Accrued discounts (premiums)		20,373
Realized gain (loss)		(124,161	)
Net change in unrealized appreciation (depreciation)		60,461
Net purchases (sales)		(1,161,302	)
Net transfers in and/or (out) of Level 3		376,766
Balance as of May 31, 2009	$	618,130

Asset Derivatives	Value
Equity Contracts	$	—
Interest Rate Contracts		29,419
Credit Contracts		75,307
Foreign Exchange Contracts		—
Other Contracts		—
Balance as of May 31, 2009	$	104,726

Liability Derivatives
Equity Contracts	$	—
Interest Rate Contracts		8,531
Credit Contracts		32,439
Foreign Exchange Contracts		—
Other Contracts		—
Balance as of May 31, 2009	$	40,970